Air India

According to Newkerala.com, Air India will be launching daily nonstop service between Delhi and New York JFK effective February 2008. This flight will be flown using a Boeing 777-300ER. It will be the airline's second ultra long haul route flown nonstop from India in addition to its heavily loss making BOM-JFK flight operated by the Boeing 777-200LR.

Analysis :

One fails to understand the fixation that not only Air India has but also other North American carriers too have with the NYC-India market. There is no need what so ever for AI to fly DEL-JFK nonstop as it will lose a lot of money on this route which is evident with its new BOM-JFK flights which are losing heaps load of $$$ every time they are flown. Currently, AI fly triple daily to NYC i.e. daily to EWR from BOM + daily to JFK from DEL via LHR + daily nonstop BOM-JFK. Hence, by adding a 4th daily flight, it serves no purpose as there is enough capacity serving this market segment which also includes CO's and DL's daily EWR/JFK-India bound flights.

An idea for Air India :

By joining Star Alliance, the logical step would be to fly nonstop from DEL to a Star Alliance hub airport in USA which is ORD or IAD. Since ORD already sees a daily flight from India flown by AA & AI each respectively, why not use the B 773ER to launch new flights to IAD from DEL and code share with United Airlines. It will give AI a monopoly position on this "niche market" route as no other airline flies it nonstop plus from IAD, its Star Alliance partner; United Airlines would provide value able feeder traffic obtained from Florida, ATL, BOS, PHL, CLT, PHX and Texas which are densely populated with immigrant Indians.

As far as AI's choice of an EU hub goes, it currently has flights from FRA to ORD & LAX and according to people who work in their BOM HQ, future flights to SFO & IAH are planned to be routed via FRA. However, AI should look into making Manchester, UK (MAN) its hub for onward flights to USA as it will get good O&D loads on its MAN-India-MAN bound flights + have a monopoly position on many MAN-USA nonstop routes if launched such as MAN -SFO, MAN- LAX, MAN-IAH etc. Take into account that Manchester and its surrounding areas have a huge Indian/Sikh population and currently lacks nonstop flights to India. If AI want to take the initiative here, the MAN market is ready for them to exploit.

Kuwait Airways

Kuwait Airways has officially confirmed that it will be launching 3 weekly nonstop flights on Tues/Thu/Sat from KWI to Hyderabad (HYD), India using an Airbus A 300-600R (AB6). KU's AB6's seat 235 pax in a 2 class configuration (J + Y). The new HYD flight timings are as follows :

KU 371 Dep KWI 2235 Arr HYD 0605+1
KU 372 Dep HYD 0715 Arr KWI 0940

In addition, KU has announced other major capacity upgrades across its network for Winter 2007-08 :

CDG - capacity increased to 2 weekly A 343s + 2 weekly AB6s

AMD - increased from 3 to 5 weekly A 320s.

BOM - capacity increased to 2 weekly B 772s + 5 weekly A 343s.

TRV & COK - both cities to receive 4 weekly AB6s.

Analysis :

This a good move by KU to launch HYD as that market has good potential to offer. It's pleasing to see that KU are using the AB6 for this new route as the extra revenue generated from the cargo side (8 tons) per flight will come in handy big time. However, if one carefully analyzes their return flight timings from HYD to KWI, it doesn't connect with any of its JFK bound flights which is sad as from NYC, KU can get decent feeder traffic bound for HYD. Its also unfortunate that KU no longer flies to ORD as from there lies probably the biggest HYD bound market from North America.

To enable JFK to be connected conveniently in both directions with HYD, KU must re-time their KWI-HYD-KWI flights in the following manner :

KU 371 Dep KWI 2105 Arr HYD 0435+1
KU 372 Dep HYD 0545 Arr KWI 0810

This will enable a 3-5 hour connection on the outbound sector in KWI and a 90 minute connection inbound from HYD via KWI. Lastly, its nice to see AMD get upgraded to 5 weekly flights as that route desperately needed it. One reckons that the next 12 months for KU in AMD will be crucial as its flights now compete against EK's 6 weekly B 777s/A 332s + QRs daily A 320s.

Out of the 3, EK offers the superior in-flight product on this route as well the ability to carry on cargo. In order to maintain a hold on its market share in AMD, KU needs to seriously consider upgrading these flights to A 310s (if spare aircraft are available).

Jet Airways

Jet Airways of India has confirmed that it will be launching new flights to San Francisco, USA from Mumbai via Shanghai from February 2008 onwards. The flight will be flown daily using a Boeing 777-300ER and will be allowed to carry lucurative 5th freedom traffic on the PVG-SFO-PVG trans-pacific sector.

In addition to this, 9W is expected to launch daily AMD-BRU-ORD flights from April 2008 as well as daily BLR-BRU-LAX flights in 2008. ORD flights are confirmed to be operated with the A 330-200 where as LAX is still undecided on whether a B 773ER will be used or an A 332.

Cathay Pacific

Cathay Pacific has announced that it will be increasing capacity to JFK this December onwards by putting the Boeing 777-300ER on 3 out of 7 flights operated currently by the A 340-600. This refers to CX 830/831.

Thus the airline's 21 weekly JFK flights will be flown using a B 744 seven times a week (via YVR with full 5th freedom rights) + 10 times a week B 773ERs + 4 times a week an A 346.

As far as Canada is concerned, a local travel magazine i.e. Travel Courier has mentioned that CX will be using the B 773ER on YYZ & YVR flights from mid 2008 onwards.

UAE -Spain open skies

UAE and Spain have signed an open skies agreement over the weekend which includes 5th freedom rights beyond Spain to the Americas for UAE based airlines. The designated airlines of both countries will be able to operate unlimited weekly passenger frequencies and capacity in each direction with any type of aircraft, as well as operate all cargo services.

Analysis :

For many months prior to this agreement being signed, EK was conducting a feasibility study on launching new DXB-BCN nonstop flights as well as future flights to Mexico City which would be routed via Spain as UAE too has an open skies agreement in place with Mexico. This became more serious in the summer when EK was conducting negotiations with few upscale Barcelona hotels for its cabin crew to stay in as well as for the EK Holidays division. With the open skies treaty being signed between UAE & Spain now, all options are available on the table for EK to pursue.

Currently QR only fly to Spain (Madrid) nonstop from the GCC and according to many, their flights are doing pretty ok. In Spain, MAD is the higher yielding market than BCN as its the political and financial capital of Spain hence there exists a bigger J & F class sized market segment here than in BCN. In Barcelona, the cargo potential for EK is huge as the city has a huge manufacturing and services industry which are booming.

In both Spanish cities, the main target market for EK would be transit traffic bound for the Far East (BKK/KUL/SIN), China, Japan, Australia and India. In the summer months, it shall definitely see high volume & high yielding traffic consisting of rich Arab families visiting their mansions on the Spanish peninsula.

Transaero Russia

Transaero Airlines of Russia has officially released details of its Winter 2007-08 timetable for its medium/long haul routes. The main highlights are as follows :

BKK - daily B 742 from DME + 2 weekly B 762ERs from St Petersburg.

HKT - 3 weekly B 742s from DME

ATQ - 3 weekly TU 204s from DME

GOI - 3 weekly B 742s from DME

SIN/DPS - capacity increased from 2 weekly B 762ERs to 2 weekly B 742s from January 08.

MLE - new twice weekly flights to start with B 767s.

The airline's management board has also revealed its wish list for routes to start in Summer 2008. They include DME-HKG-SYD with a B 742 + DME-LAX nonstop + DME-MIA nonstop and DME-JNB-MRU.

Malev Hungarian

Malev Hungarian Airlines is to suspend all of its trans-atlantic flights for the upcoming winter season as part of a large cost cutting initiative currently being undertaken by the airline. Malev's trans-atlantic operations consist of flights to Toronto and New York only. Both cities are flown by Boeing 767s.

As a result, one B 767 will be wet leased out and another will be used to upgrade Bangkok from a B 762ER to a B 763ER.

Source: http://www.malev.hu/BP/ENG/I_NEWS_ENG/2007-1029-1551-07PGDK.asp

Qatar Airways

Qatar Airways has confirmed that it has asked Airbus to delay delivery of its Airbus A 380s by two years from 2010 to 2012. The reason provided by QR's CEO is that it needs more time to move into Doha's new international airport as well build up its passenger numbers to allow it to properly fill up its A 380 operated flights.

Lufthansa

Lufthansa will launch 6 times a week service from Dusseldorf to Miami effective October 26th 2008 using an Airbus A 340-300.

This move is seen by many as a direct challenge to its main rival i.e. Air Berlin/LTU who has many trans-atlantic flights from its DUS hub.

KLM

KLM revealed that it will be increasing flights to Toronto for Summer 2008. Frequencies are being raised to double daily operations from its AMS hub.

All flights will be flown using the Boeing 777-200ER. Previously, in Summer 07, KLM flew 12 weekly flights to YYZ i.e. daily B 744s + 5 weekly B 772ERs.

Lufthansa

Lufthansa will be launching 2 new long haul destinations from the on set of the Summer 2008 timetable. The 2 new cities are Calgary and Seattle both flown nonstop from its FRA hub.

In addition, LH has also revealed few capacity changes for its Summer 2008 schedule; the highlights of which are as follows :

YYC - new daily flights to start April 18th 2008 using an A 333 nonstop from FRA. Flight timings are expected to be as follows :

Dep FRA 1215 Arr YYC 1400
Dep YYC 1530 Arr FRA 0915+1

SEA - new daily flights to start from March 30th 2008 using an A 333 nonstop from FRA.

YYZ - will be served daily with an A 340-300 till April 30th; thereafter with an A 340-600.

MAA - capacity will be reduced from daily B 744s in the winter to daily A 346s in the summer effective March 30th 08.

IAH - in summer 07, flights were flown using an A 346 however in Summer 2008, a B 744 will be used.

Singapore Airlines

Singapore Airlines has further revealed what routes its 10 Airbus A 380s will fly on in 2008-09.

The main highlights are as follows :

1st A 380 to fly daily SIN-SYD-SIN

2nd & 3rd A 380 to fly daily SIN-LHR-SIN

4th A 380 to fly daily SIN-NRT-SIN

5th & 6th A 380 to fly SIN-HKG-SFO

7th & 8th A 380 to fly daily SIN-LHR-SIN

9th A 380 to fly daily SIN-SYD-SIN

10th A 380 to fly daily SIN-Australia-SIN...most likely MEL.

Analysis :

Whats interesting to note is that SFO will be the first U.S. destination getting the A 380 ahead of LAX which has shocked many people.

Royal Air Maroc

Royal Air Maroc (RAM) officially announced that it will be increasing its flights to Montreal, Canada by adding an additional 2 weekly flights to its Winter 2007 schedule.

Thus RAM will fly 6 weekly B 763ERs nonstop from its CMN hub to YUL effective December 2007.

Their flight timings are as follows :

Daily except WED

AT 206 CMN 1450 - 1745 YUL

AT 207 YUL 1915 - 0705+1 CMN

Cathay Pacific

Cathay Pacific is rumored to announce shortly its plan to increase its Toronto bound flights from daily to 10 times a week, all flown nonstop from HKG to YYZ. No set date has been leaked by the airline. Insiders at CX HKG HQ also reveal that capacity to YYZ is also likely to be increased by the A 343 being replaced by the larger A 346 and then eventually the B 773ER in late 2008.

American Airlines

American Airlines has officially confirmed that it will be launching new nonstop flights to Moscow (DME), Russia from its Chicago (ORD) hub from 2nd June 2008. Flights will be flown on a daily basis using a Boeing 767-300ER. The flight timings are as follows :

AA158 ORD 1655 - 1215+1 DME

AA159 DME 1650 - 1440 ORD

Finnair

Finnair has revealed further details of its long haul Winter 2007-08 timetable. The main highlights are as follows :

BOM - increased to 5 weekly A 343s

BKK - increased to double daily services from Dec 1st...all using MD 11s.

HKG - will maintain 4 weekly nonstop flights using the MD 11.

PVG - product upgrade to be witnessed by having the A 343 deployed on this route from Dec 2nd onwards. Currently a MD 11 flies this route for AY.

PEK - remains at nonstop daily MD 11 services.

CAN - will see 4 weekly MD 11 flights.

NRT & NGO - both cities to be maintained at 4 weekly A 343 nonstop services from HEL.

JFK & KIX - both cities will maintain 5 weekly flights each respectively using the MD 11.

DEL - will see daily MD 11 flights.

Virgin Atlantic

Virgin Atlantic has informed the media that is seeking to place a large order worth nearly US$ 3 billion with Boeing or Airbus for 10 ultra large aircraft for which the airline has shortlisted the B 747-800 and the A 380. VS mentions that these new aircraft will be used as a direct replacement for its eight B 747-400s (leisure configuration) which are based at LGW -London Gatwick Airport. The order is expected to be announced by May 2008.

Virgin's order for six A380s in 2000 was stalled last October after construction delays at Airbus. The company remains committed to the purchase and the aircraft will be delivered after 2013.

Analysis :

FYI...VS's LGW based B 744s accomodate between 386 and 451 passengers and currently fly to vacation destinations including Las Vegas, Orlando, Barbados, Cuba, Antigua and Jamaica.

This order will witness an interesting battle between Boeing and Airbus as the former needs more "blue chip" airlines (besides LH) to order the B 748 in order to gain confidence in the commercial market. Airbus too needs the VS order to add up to its earlier commitment for 6 A 380s because it needs more than 300 ordered to cover the development costs to break even on the project.

It is also interesting to note that VS has now become an "environmentally friendly" airline which it attributed to its large order for Boeing 787s few months ago. Flying 2 engine airplanes harms the environment less than 4 engine ones and with Virgin Blue of Australia ordering 6 Boeing 777-300ERs, its parent company should also look at this aircraft type to replace the LGW based B 744 fleet. The B 773ER can easily seat between 380-430 pax in VS's 3 class layout (J + P + Y), can fly to all of its leisure market routes nonstop from LGW by having up to 25% less operating costs + can carry the same amount of cargo in the belly. Lastly, the B 773ER is cheaper to purchase than the B 748 / A 380 and can also be used in the future as a direct replacement for VS's A 340-600 fleet as the latter's operating costs on long haul flights is higher than the B 773ER!

Martinair Holland

Martinair of Holland has announced that it will be doubling its flights to Toronto for Summer 2008. Frequencies are to be increased from 2 to 4 times a week with all flights being operated by a Boeing 767-300ER. Flight timings are as follows :

TUES/THU/FRI/SAT

MP 811 AMS 1355 - 1605 YYZ

MP 812 YYZ 1750 - 0700+1 AMS

Northwest Airlines

Northwest Airlines confirmed earlier on last week that it will be launching another new trans-atlantic route from one of its main U.S. hubs to Europe. This has now been revealed to be Minneapolis-Paris (MSP-CDG) nonstop using an Airbus A 330-300 on a daily basis. Flights are confirmed to start from April 8th 2008.

Delta Airlines

Delta Airlines has announced that it will be reducing capacity on key trans-atlantic routes from its JFK hub for Summer 2008. The main highlights are as follows :

JFK-AMS/FRA/BRU...all 3 cities see reduced capacity by having a daily Boeing 757-200 being used instead of a daily Boeing 767-300ER.

Analysis :

One can conclude that DL makes a loss flying to AMS/BRU/FRA from JFK. Since it already has flights to AMS & FRA from ATL & CVG, it should stick to those than just un-necessarily adding flights from JFK to play ball with other airlines. Its just not worth it sending B 752s from JFK to AMS/BRU/FRA when its competing EU & U.S. carriers fly the same route with larger and more comfortable wide bodied aircraft. DL should suspend flights from JFK to these 3 EU airports and allocate their B 752ERs to more profitable and less competitive routes.

An idea for DL :

Why not use the B 752ERs on some medium density JFK-Latin America/Central America routes. AA uses their AB6s on some JFK-Central America routes and does well on them especially in the cargo belly.