29JAN13 edition

Emirates has officially announced that it shall be launching a new long haul route to Tokyo's Haneda (HND) airport operated nonstop from Dubai as the carrier aggressively targets expansion in high yielding SE Asian markets that have good premium class demand in particular. EK will be operating a daily nonstop service on the DXB-HND sector using a B777-200LR effective 03JUN13 with the below mentioned timings:

EK 312 Dep DXB 0940 Arr HND 0005+1
EK 313 Dep HND 0130 Arr DXB 0705
The above mentioned service compliments its currently exisiting daily A380 nonstop service to Tokyo's Narita airport.


Swiss Airline's CEO has officially revealed in an interview to Bloomberg that the airline is actively looking out for a plane that can offer larger capacity than its current Airbus A340-300s as it finds the latter a bit too small for many of its long haul routes that can fill the additional seats offered by a bigger aircraft. LX is evaluating the B747-800, B777-300ER and the A350 family for a potential future order but has ruled out the Boeing 787.

Source: http://www.bloomberg.com/news/2013-01-22/swiss-mulling-747-8-for-fleet-upgrade-following-parent-lufthansa.html

Analysis:
1. One does not believe that the B748i should even be looked by LX management nor even by LH for LX because of the following:

a) Currently, LX 's A343s seat 219 pax in a 3 class configuration i.e. 8F/47J/164Y where as LH 's B748s in 3 classes seat 358 i.e. 8F/92J/262Y. For any airline to have their largest plane capacity size increase from 219 to 362 aka by 65% and have a chance at selling it consistently year long is a tall task to undertake. You can increase by 30-40% maximum if you have all the right mechanisms in place which LX does, but not by 65% all of a sudden !

b) The B748 is way too big for any LX route to operate on a "year round basis" which is the main point here as its not a carrier that lives on seasonal demand. LX is a premium focused airline that relies more on offering frequencies versus excess capacity on any given route as that is the main demand of corporate high yielding passengers i.e. choice of schedule flexibility when making their travel plans.

Now as far as which plane is ideal for LX in the long run as the perfect A343 replacement, my thoughts are as follows:

a) To begin with, this order I reckon Boeing lost from the get go by still not being clear on their B787-1000X program. Due to this uncertainty on their part, this is another order which they could have gotten a new customer but instead are likely to lose it due to this aircraft type still not being offered for sale in the market place. Just like the A350 family has 3 different types catering to different market size segments, the B787 program too needs a 3rd larger unit complementing the B788 and B789 as neither one of these 2 models can adequately replace the A343 nor the B772ER in the long run.

b) However, since the A343 is more or less the same size as an A359 and with LX 's desire to have a bigger plane operate on some of its routes year round, the only plane in today's current environment meeting LX 's requirement is the A340-600 which in LH 's 3 class layout seats 306 pax i.e. 70 more than LX 's A333s aka 30% more. For the time being, this is ideal as it would allow LX the perfect schedule flexibility of having the A333 operate on the under 11 hours routes across its network with a 236 seater A333 and have the A346 operate on the ultra long haul nonstop flights to Latin America, U.S. West Coast and SE Asia where the revenue derived from selling the extra seats on board the A346 (especially the higher yielding F/J class ones) shall come in handy big time.

c) But in order to structure a deal that benefits LX the most in the long run, the order should go to Airbus with the following conditions attached:

i. As a "stop gap capacity measure" in exchange for a size able A350 order, Airbus must supply LX with at least 8-10 A346s until the A350s get delivered. Currently, there are 3 airlines in particular that are very keen on selling their A346 fleet and they are TG, QR and VS respectively.

ii. The A350 versions (if it lives up to its expectations) which are ideal for LX 's future are both the A359 and the largest member i.e. the A351. The A359 is the perfect replacement candidate aircraft for LX 's A333 fleet by 2020-21 as it offers about 10-15% more capacity which is perfect as the airline expects its passenger demand scale to grow by a similar margin if not more within a decade on currently operated A333 routes. A 3 class configured A359 would easily be able to accommodate approximately 260 passengers in a comfortable layout to replace the 236 seater A333s. In addition, due to its much longer range, the A359 can operate all of LX 's current long haul routes nonstop without any payload restrictions what so ever so an excellent value for money aircraft for the airline to consider purchasing. Currently, LX operates 14 A333s so if one factors in modest growth for the next 8 years, an order for 18 A359s seems adequate for the airline to order.

iii. In addition to the A359, the larger A351 is the perfect high density long haul premium aircraft for LX to revolve its fleet around during the 2020-30 decade. In a luxurious 3 class configuration, it would easily be able to accommodate 340 passengers and fly up to 13-14 hours nonstop without any payload restrictions. This means having approximately 12% more capacity than today's A346 in LH 's 3 class configuration and operated with an aircraft that is destined to have at least 15-20% better operating costs on long haul flights. Currently, LX has 15 A343s operating in its fleet, so once again if you factor in modest growth over the next decade, an order for easily 20 A351s should do justice.

iv. One last very interesting point in LX 's favor is that with all the bad publicity surrounding the A351 since Summer 2012, Airbus will bend backwards in offering ultra lucrative deals to blue chip airlines such as LX in order for a large reputable A350-1000X order being placed as they did with CX recently. This in turn can result in LX getting financially attractive large discounts on the purchase price as well as other forms of incentives from the airplane manufacturer in exchange for this order for 20 A351s + 18 A359s which at list prices would be worth over US$ 7 billion.

v. Since LH now tends to order airplanes in bulk for its group subsidiaries as well, it has a fleet of 24 A343s + 18 A333s + 24 A346s that need replacing within a decade as well. Hence for the LH /LX group to really arm twist Airbus into giving a deal that they cannot say no to (in terms of volumetric discounts for a large scale order being placed), the prospective potential order size could very well end up being for 65 A350-900s (for LH /LX combined) + 50 A350-1000X totaling over US$ 20 billion at list prices! And for the latter program, Airbus wins too by getting 2 world famous airline brands such as LH and LX ordering and endorsing the A351 program along side QR /CX which will end up getting more airlines to order this variant in the future.
Thai Airways has revealed that it will be considerably increasing its presence in the Dhaka market place by adding a second daily nonstop service from the on set of the IATA S13 season i.e. April. All double daily flights shall be operated by a 2 class configured Boeing 777-200A and the flight schedule of the two services will be as follows:

Dep BKK @ 1035 and 2330 Arr DAC 1210 and 0105
Dep DAC @ 0230 and 1335 Arr BKK 0555 and 1700

The new flight is the one that departs BKK at 2330 and arrives back by 0555. In addition to the above, TG has also revealed many other capacity changes to its medium and long haul route network for the upcoming IATA S13 season of which the main highlights are as follows:

LHE - frequencies increased from 5 weekly to daily nonstop flights using an A333

ARN - capacity reduced from daily B744 to daily B773ER

CGK - frequencies increased from daily to double daily

LHR - capacity increased from double daily A346 to double daily B744

CPH - capacity reduced from daily B744 to daily B773ER

DME - frequencies increased from 3 to 4 weekly nonstop flights using a B773A

BLR - capacity increased from daily A333 to daily B772A


Saudia Airlines has officially announced many changes to its overall route network for the upcoming IATA S13 season from both its Riyadh and Jeddah hubs respectively of which the main highlights are as follows:

JED / SAH - frequencies increased from 4 weekly to daily nonstop using an A320

JED / CDG - capacity increased from daily A320 to 3 weekly B772ERs + 4 weekly A320s

JED / CCJ - frequencies increased from 1 to 3 weekly nonstop using a B772A

JED / IAD - frequencies increased from 3 to 4 weekly nonstop using a B772ER

JED / IST - frequencies increased from 5 to 6 weekly nonstop using an A333

JED / ADD - frequencies increased from 6 weekly to daily nonstop using an A320

JED / GVA - frequencies increased from 2 to 4 weekly nonstop using an A320

JED / MXP - frequencies increased from 3 to 4 times per week nonstop using an A320

RUH / JFK - frequencies increased from 2 to 3 weekly nonstop using a B772ER

RUH / CDG - capacity increased from daily A320 to 4 weekly B772ERs + 3 weekly A320s

RUH / ADD - frequencies increased from 5 to 6 weekly nonstop using an A320

RUH / FCO - frequencies increased from 3 to 4 weekly nonstop using an A320

RUH / CMB - capacity reduced from 3 weekly B744s to 3 weekly B772As


Turkish Airlines has officially announced that it will be launching new services to KUL-Kuala Lumpur, Malaysia effective 25APR 2013 as the carrier looks to expand its long haul network aggressively particularly where high volume feeder traffic can be obtained to help adequately feed its ever expanding European network. TK will be flying nonstop from its IST base to KUL four times per week using an A340-300 with the below mentioned timings:

Days - 1/3/4/6

TK 60 Dep IST 0115 Arr KUL 1650
TK 61 Dep KUL 2315 Arr IST 0535+1

In addition, TK too confirmed that due to increasing demand for its DAC-Dhaka bound flights, it will be further increasing its presence on this sector by operating daily nonstop flights using an A330-200 versus its current 5 weekly service. This comes into effect from 05JUN13. TK's main DAC traffic originates from Italy, ATH, JFK, UK, Libya and Germany.


British Airways has revealed many changes to its long haul route network for the upcoming IATA S13 season of which the main highlights are as follows:

DAR - all 3 weekly flights suspended effective 31MAR (this is going to help KL/TK/QR a lot in particular)

JED - frequencies increased from 5 weekly to daily nonstop using a B763ER

EBB - frequencies reduced from 5 to 3 weekly nonstop flights using a B763ER

TBS - all 3 weekly flights using an A321 suspended

AMM - frequencies increased from daily to 11 weekly


Air Asia X of Malaysia has officially confirmed that it shall be launching a new long haul service to JED-Jeddah, Saudi Arabia effective 16FEB 2013 as the carrier wants to take part in the mass volumetric Umrah and Hajj religious demand on this route along with catering to Saudi holiday traffic bound to Malaysia year round. D7 will be operating the service nonstop 4 times per week using an A330-300.


Hainan Airlines based out of Beijing, China has officially announced that it will be launching new nonstop flights to ORD-Chicago, USA effective 03SEP 2013 as the carrier looks to further consolidate its position in the U.S. market place with its partner American Airlines. HU shall be operating 4 times per week nonstop service on this route using a Boeing 787. Currently, its scheduled as an A332 operated service but that is temporarily only due to the on going B787 technical grounding worldwide. The flight schedule is as follows:

Days: 2/4/6/7

HU 497 Dep PEK 1320 Arr ORD 1330
HU 498 Dep ORD 1530 Arr PEK 1840+1


Air China has officially announced that due to increasing demand for its Milan (MXP) bound services out of its secondary PVG-Shanghai hub, it will be up gauging the number of weekly frequencies it currently offers to meet the demand. Currently, CA operates 5 weekly nonstop flights between MXP and PVG using a 2 class configured A330-200. These will be increased to daily nonstop flights using the same aircraft type effective 01APR13.

In addition, CA too revealed that it will be launching new nonstop services to GVA-Geneva from its primary Beijing hub effective 07MAY 2013. It will be operate 4 times per week using an A330-200 and will be code sharing with its STAR partner SWISS on this new route that is expected to attract good loads upfront in business class especially along with cargo.

Jan 15th edition

American Airlines has officially announced that it has changed the structure of its highly publicized Boeing 787 order with Boeing which originally was exclusively for 42 Boeing 787-900s. The main highlights of the amended deal are as follows:

• 42 B789s exchanged for 20 B787-800s + 22 B787-900s
• Options on 58 additional aircraft remain unchanged
• Requested delivery from Boeing in 2014-15 in order to realize operational cost savings benefit with a modern aircraft operating long haul routes versus aging B767s

Comments:
This is a very smart move by AA to have divided their B787 order from the original one as it provides their route network with the fleet capacity flexibility catering to markets that do have demand for a B788 year round but not for a larger B789. In addition, the prime objective of ordering the B787s were to replace their aging B763ER fleet on medium and long haul routes; this could have only been done effectively if the B788s were ordered initially as this particular variant was designed and sold by Boeing to be the B763ER/A310 replacement aircraft and not the B789 as the latter (789) would seat approximately 80-90 more passengers i.e. 30-35% more on board capacity versus a B788 would seat approximately 10-15% more than a B763ER which is an ideal requirement for most airlines taking into account market size growth worldwide. Other airlines that too are gradually replacing their B763ER/A310 fleet with B788s include Kenya Airways, LAN Chile, Ethiopian Airlines, JAL, ANA, British Airways, Air India and Royal Jordanian.  

Air China has officially announced that it will be launching new nonstop flights to IAH-Houston, USA effective 11JUL 2013 onwards. CA will be operating the service 4 times per week initially using a Boeing 777-300ER before considering expanding it to a daily flight using its yet to be delivered Boeing 787-900s. As a member of Star Alliance, it will be code sharing with United Airlines on this sector, who in turn will hope to feed it with traffic originating from Central/Latin America and Southeast USA via its IAH hub. CA's B773ERs seat 313 pax in a 3 class configuration i.e. 8F/42J/263Y.

Etihad Airways has officially announced that it shall be launching a new nonstop services to Amsterdam, Holland effective 15MAY 2013. EY will be operating the service in code share with KLM on a daily basis using a 2 class configured A330-200 with the below mentioned timings:

EY 077 Dep AUH 0930 Arr AMS 1440
EY 078 Dep AMS 2200 Arr AUH 0635+1

As a result it will be indirectly offering a double daily service as it currently also code shares with Garuda's 6 weekly AUH-AMS + KLM 5 weekly AUH-AMS services respectively. The flights of KLM arrive into AUH at 1950 thus catering to EY's late night 2100-2230 departure hub wave bank.

Other changes announced by EY for the upcoming IATA S13 season are as follows:

JED - frequencies increased from double daily to 16 weekly with the additional 2 flights operated with an A320

DAC - capacity increased from daily A332 to daily B773ER

CMN - frequencies increased from 5 weekly to daily nonstop using an A332

DUB - capacity increased from 10 weekly A332s to 6 weekly B773ERs + 4 weekly A332s

NRT - frequencies increased from 5 weekly to daily nonstop using an A332

Hawaiian Airlines has officially announced that it has placed a significant order with Airbus for 16 brand new Airbus A321NEOs as the carrier looks to realign its future fleet meeting the mainland USA-Hawaii market dynamics. HA's A321s will seat 190 passengers in a 2 class configuration and can operate nonstop from HNL up to Las Vegas. It has said that the main routes to be served by its A321 fleet shall be nonstop HNL-U.S. West Coast services.

Comments:

This is a brilliantly thought out order by Hawaiian because it allows the airline to grow its flagship trans-pacific U.S. West Coast business at the lowest risk cost. Currently, HA's fleet comprises of B717s which can only operate domestic island routes and for its other longer range flights it has a 260 seater B763ER and a 290 seater A332. The latter two are wide bodies hence expensive aircraft to operate especially on routes that do not see year round 85% S/F. Between HAs B717 and B767/A330 fleet, there is no in between aircraft plane type that can offer a 170-210 seating capacity along with being able to fly 6 hours nonstop without a payload issue. The A321NEO perfectly fits in this gap by being the best middle sized aircraft type being able to handle the requirements of HA. For example, HA's current double daily A332 HNL-LAS service can be in the future grown to triple daily by using A321NEOs for the same cost of operating 2 daily A332s and in turn the same capacity as well i.e. 570 seats on 3 A321s versus 588 seats on double daily A332s! This allows HA to grow its market presence and share with the extra daily frequency in a risk free manner.

Other routes that A321NEO can be useful for is SFO where currently HA's daily A332 service can be expanded to a double daily A321NEO along with Seattle again a current daily B763ER service can be expanded to 11 weekly A321s. A new route that can be looked into is HNL-YVR (Vancouver) with an A321 year round as its a 6 hour flight only hence easily within flying range of an A321NEO.

Philippine Airlines has officially announced that it will be launching 2 new long haul routes during the IATA Summer 2013 season as the carrier looks to aggressively embark on a long haul expansion. PAL disclosed that it will be operating 3 new weekly nonstop flights to Istanbul, Turkey effective 05AUG 2013 using either an A340-300 or a Boeing 777-300ER in code share with Turkish Airlines. The second long haul route that it will be launching is a daily nonstop service to KWI-Kuwait effective 01JUN 2013 using either an A333 or B773ER. The KWI-MNL market size is approximately 130,000 passengers per year and does not see nonstop service on offer currently, as Kuwait Airways operates its services to MNL 6 times per week with an A343 routed via BKK.

Thai Airways has officially revealed major capacity and frequency changes to its medium and long haul route network for the upcoming IATA S13 season of which the main highlights are as follows:

FCO - frequencies increased from 4 to 5 weekly nonstop flights using an A346

JNB - frequencies increased from 3 to 4 weekly nonstop flights using a B772ER

MAD - frequencies increased from 3 to 4 weekly nonstop flights using a B772ER

MXP - frequencies increased from 3 to 4 weekly nonstop flights using an A346

MNL - frequencies increased from 10 to 11 weekly nonstop using an A333

NGO - frequencies increased from 11 to 12 weekly nonstop flights

KIX - frequencies increased from 17 to 18 weekly nonstop flights

KLM and Austrian Airlines have officially announced that due to the increasing volatile state of the Iranian economy as well as the difficulty in remitting foreign exchange out of the country, it has no choice but to suspend its services to Tehran respectively in Q1 2013. KLM will suspend its current 5 weekly MD11 service by end March 2013 where as Austrian will suspend its own effective 29JAN. This leaves Lufthansa and Turkish Airlines as the 2 only remaining EU carriers offering nonstop services out of IKA airport. Lufthansa though will take the lions share of the high yielding premium traffic due to its favored branding position amongst affluent Iranians in Iran and abroad. In other KLM related news, the airline too announced that due to on going cost cutting initiatives, it shall be also suspending its current services to both Addis Ababa and Khartoum effective 31MAR 2013. Currently, KL operates a 3 weekly service on the AMS-KRT-ADD route using an A332. 

Saudia Airlines and KSA Civil Aviation have officially announced that the Saudi flag carrier will be launching 2 new long haul routes from June 2013 onwards in North America along with increasing capacity to Europe. The main highlights are as follows:

LAX - new 3 weekly flights to be launched from June 2013 with a B777 operated from JED

YYZ - new 3 weekly flights to be launched from Sept 2013 with a B777 operated from JED

CDG - frequencies to be increased to 11 weekly nonstop flights from KSA using B772ERs in code share with Air France

IAD and JFK - to be each served daily from KSA (RUH/JED) effective April 2013 using B777s

Source: http://www.tradearabia.com/news/TTN_228214.html

Comments:

As far as YYZ (Toronto) is concerned, the option to operate from JED via RUH should not be considered as it will spoil the economics of the route as well as the passenger acceptance of it as the majority of passengers on board shall be 6th freedom transfer passengers rather than O&D. Though operating nonstop from JED to YYZ with a B773ER might sound the most attractive option from a saleability aspect, it is also fraught with high risk as the O&D market size between KSA and YYZ is not large enough to warrant a year round B773ER operated service and nor is SV a favored transit carrier like its neighbors EK/QR/EY/MS are with Arab/Indian Subcontinent passengers.

Therefore in order to lower its risk and at the same time being able to kill 2 birds with one stone, SV should seriously consider flying to Toronto via Manchester with 5th freedom traffic rights. The reason being that the MAN-JED market size is big year round i.e. approximately 50,000 passengers as it caters to not only MAN based passengers but also the surrounding areas of Leeds, Birmingham and Bradford. No airline currently serves JED nonstop from the UK North and there is demand for such a service using a medium sized aircraft. A lot of these passengers are religious pilgrims who after performing Umrah/Hajj in KSA want to extend their journey to their hometown in India/Pakistan/DAC/UAE/CAI/NBO etc which SV ideally caters for. By operating to YYZ via MAN, it lowers the risk for SV as if YYZ cant fill the flight it can fall back on MAN to do the needful instead which it can easily provide.

Turkish Airlines has officially announced that it will be launching new services to CMB-Colombo, Sri Lanka effective 01FEB 2013 by extending its current Male bound service to the Sri Lankan capital. TK will be operating 5 times per week to CMB via MLE using an A330-300 and in turn will be targeting primarily the large Tamil community residing in Italy, UK, France and Scandinavia for its new CMB flights as well as European holiday makers who have flocked in their 1000s to the tropical island since the end of the brutal 25 year old civil war. In addition, the airline has finalized a deal to dry lease an additional seven Boeing 777-300ERs as a capacity bridge solution until its own aircraft get delivered gradually from Boeing itself. The source of these additional B773ERs is believed to be India's Jet Airways.

Emirates has officially announced that it will be implementing many capacity and frequency increases across its route network for the upcoming IATA S13 season of which the main highlights are as follows:

DAC - frequencies increased from 17 weekly to triple daily

KUL - frequencies increased from 24 weekly to 4 times daily

BKK - frequencies increased from 4 to 5 times daily

CDG - frequencies increased from 19 weekly to triple daily

LED - capacity reduced from daily B773 to daily A332

PEW - frequencies increased from 3 to 5 times per week

Malaysia Airlines has revealed few changes to its route network for the upcoming IATA S13 season of which the main highlights are as follows:

JED - frequencies increased from 4 weekly to daily nonstop using a B772ER

CMB - frequencies increased from daily to 10 weekly using a B738

HKG - frequencies increased from double daily to triple daily

MNL - frequencies increased from 25 weekly to 4 times

Egypt Air has officially announced that it shall be launching 3 new destinations across its network effective June 2013 onwards of which the main highlights are as follows:

MAN - new 5 weekly nonstop flights using a B738

YYZ - new 4 weekly nonstop flights using a B773ER

HRE - new 4 weekly service using a B738 operated via DAR

IST - frequencies increased from double daily to 17 weekly using a B738

FCO - frequencies increased from 11 weekly to double daily

Qatar Airways has officially announced that it shall be significantly increasing capacity on three of its medium haul routes for the upcoming IATA S13 season of which the main highlights are as follows:

BKK - frequencies increased from triple daily to 4 times daily with all flights operated by a B773ER

WAW - frequencies increased from 4 weekly to daily nonstop using an A320

MUC - frequencies increased from 11 weekly to double daily using a B788 and an A332 each respectively

Oct 29th edition

Virgin Atlantic has disclosed that it is actively studying a replacement aircraft that can single handedly replace its large wide bodied fleet of Airbus A340-600s and Boeing 747-400s. This is due to the fact that the airline is now doing a U Turn on its famous marketing premise "4 engines 4 Long Haul" because of high fuel costs associated with operating such type aircraft. Their CEO has stated that "the airline is rapidly moving out of four-engined aircraft - we have to do that because of where we seeing fuel costs going". Currently pending on order, VS has 6 A380s (deferred till 2017 and ordered in 2001) + 15 B789s (plus another 8 options) + 1 A333 (7 already delivered). Its high density fleet today consists of 18 A346s (308 seat configuration) + 13 B744s (367-455 seat configuration depending on 2 or 3 class layout) respectively. One condition of VS is that the delivery time frame of the replacement aircraft that it is studying has to be within the next 3-5 years in order to save on fuel related operational costs.

Analysis:

There are many options here for VS to consider, so lets look at them on an aircraft by aircraft basis:

1. The A351 (A350-1000X) EIS is now delayed as everyone is aware of plus it has had many cancellations due to its original design and performance threshold not meeting customer's expectations. This aircraft variant is expected to arrive in 2017 i.e. 5 years from now and for a new customer, earliest delivery slot would be in 2019 which is too late for VS as they want 2 engined long haul aircraft faster due to the soaring fuel costs as clearly mentioned in their press release. In addition, amongst the A350 family currently, this aircraft type is the least popular as only 62 have been ordered!

2. The largest B787 variant i.e B787-1000 is not an A346/B744 sized aircraft to be an effective replacement. It is meant to replace B772ERs, A333s and A343s!

3. The A359 is too small to replace their B744 and A346 fleet however the B77W (B773ER) is the best bet as if ordered this winter, it can be delivered from 2015 onwards gradually. Its high density 2 class configuration for its leisure flights out of LGW and MAN are ideal as well as its 3 class capacity carrying capability out of LHR. VS's Aussie franchise VA already has experience with the B77W so they can be a lot of expertise and cross synergies gained/transferred over by ordering the B77W as a pure B744/A346 replacement.

4. In addition, Boeing can also help structure a deal where by VS becomes one of its launch customers for the newly proposed B777-900X which has an EIS of 2021. This can be done by Boeing placing with VS as a " stop gap bridging solution" 30+ new B77Ws (delivery from 2015 onwards) in exchange for a similar sized launch order for the B779X. Once the B779Xs get delivered frame by frame to VS, they will return back to Boeing the B77Ws which can be sold or leased to another carrier as in 2021-22 these aircraft would still have good resale value as they would be only 6-7 years old. The B779X aircraft type is expected to yield a 21% improvement in per-seat fuel burn and a 16% improvement a cash operating cost per-seat over today's B77W hence if proven true it is a a win-win deal for both parties. VS can too take advantage of many launch customer financial discounts that Boeing provides to airlines who are launch customers. 

5. As far as its A380 order (6 frames) is concerned, it was placed in 2001 and since 2004 been regularly deferred till 2017. One does feel that the A380 is now not a good fit for VS but all is not lost, as Airbus can easily offer them an exchange i.e. 1.5 or 2 A333s for each A380 ordered. In turn, this would result in VS gaining an additional 12-15 A333s in its fleet which is more suited for its worldwide network as the carrier relies more on frequency rather than capacity. With the A333IGW now available, this aircraft can easily fly nonstop from LHR to SFO/YVR/LAX/DEL so a benefit indeed for VS. The A333IGW is also capable enough and perfectly sized to launch planned new nonstop routes in 2013/14 which are BLR, IAH, GRU and GIG. FYI, VS's current A333s seat 266 passengers in a 3 class configuration.


Fly Dubai of the UAE has officially announced that it will be embarking on a major network expansion during the upcoming IATA W12 season across Europe, the GCC and MENA regions in the following manner:

JED - frequencies increased from 18 weekly to triple daily

SAH - frequencies increased from 4 to 6 weekly

EBL - frequencies increased from 4 weekly to daily

KBP - frequencies increased from 4 weekly to daily

BSR - frequencies increased from 3 to 4 weekly

TIF - frequencies increased from 5 weekly to daily

TUU (Tabuk, Saudi Arabia) - new twice weekly flights to be launched effective 07NOV

OTP - frequencies increased from 3 to 4 weekly

FRU - frequencies increased from 2 to 3 times per week


Singapore Airlines has officially announced that it has placed a multi billion dollar order with Airbus towards a purchase of 25 additional wide bodied aircraft designed for expansion and replacement of some of its current fleet. The total order worth is US$ 7.5 billion and consists of 5 Airbus A380s + 20 more A350-900s. In addition, SQ too confirmed that due to soaring fuel prices and changed market dynamics, it shall be suspending two of the world's longest nonstop flights from its SIN hub to EWR-Newark and LAX respectively which are currently operated on a daily basis using an Airbus A340-500. Both these routes will see their nonstop flights grounded effective 27OCT 2013 and in exchange for this mega order, Airbus has agreed to take back SQs entire fleet for A345s.

With regards to the 20 B787-900s that SQ has on order with Boeing, it has now revealed that all of these aircraft shall be transferred to its long haul low cost subsidiary i.e. Scoot and also it wont be for the -900 version. Instead, SQ is working with Boeing in having a mixed fleet of the smallest B787-800s and the largest B787-1000s in its fleet in order to adequately serve markets depending on their individual demand characteristics. 

Comments:

Interesting barter deal exchange done by Airbus with SQ with regards to taking back their A345s. This is similar to what Boeing did with SQ in the early part of the previous decade when it bought SQs A343s in exchange for a large B777 order from the airline. Other airlines plagued with operating A345s such as TG and EY must be surely licking their lips now knowing what can be possible in the future with their own small fleet of A345s when negotiating an Airbus order.    


Qatar Airways has officially revealed that it shall be launching new flights to Phnom Penh, Cambodia effective 20FEB 2013 as the carrier looks to take advantage of the rapidly growing tourism traffic originating from Europe into this country. QR shall operate a daily 259 seater A330-200 to PNH via SGN (Ho Chi Minh City) with three flights departing DOH at 0115 and the remaining 4 at 0730. The routing shall be DOH-SGN-PNH-SGN-DOH with 5th freedom traffic rights available on SGN-PNH-SGN. QR also announced that its current services to CGK-Jakarta, Indonesia shall be increased effective 09FEB 2013 as the carrier will be adding an additional 11th weekly nonstop flight on this route using an A332.

Lastly, QR's CEO has officially disclosed that in 2013, QR shall be launching 16 new destinations of which in USA there shall be 4 i.e. Chicago (already announced) along with Detroit, Boston and Atlanta. The latter 3 are expected to be operated with the B787-800s.

Comments:

Very surprising to see ATL on this list and not MIA/DFW especially since there is no hint of any relationship developing with Delta. Both MIA and DFW offer much larger O&D market sizes to GCC, Indian Subcontinent and Africa versus ATL + better connection possibilities with both airports being core AA hubs. BOS shall do well for QR as it has a code share deal with B6 that has a hub out of BOS + AA too maintains a decently sized hub base there.


Lufthansa has officially announced that it will be launching new services out of its Munich hub to YVR-Vancouver, Canada effective 16MAY 2013 as the carrier looks to seriously hamper Air Berlin's DUS-YVR summer seasonal service. LH shall be operating MUC-YVR nonstop on a daily basis using an Airbus A 330-300 with the below mentioned schedule:

LH 476 Dep MUC 1530 Arr YVR 1705
LH 477 Dep YVR 1845 Arr MUC 1400+1


Air Berlin of Germany has officially disclosed that it will be launching new services out of its BER hub to ORD-Chicago, USA effective 01MAY 2013 as the carrier looks to build on its strong partnership with One World partner carrier i.e. American Airlines. AB will be operating this route nonstop using an A330-200 on a 5 weekly basis with the below mentioned schedule:

Days of operations: MON/WED/THU/SAT/SUN

AB 7420 Dep TXL1000 Arr ORD 1210
AB 7421 Dep ORD 1525 Arr TXL 0700+1

AB will be code sharing with both AA and EY on this new service!


Air France has officially announced that it shall be launching new services to Kuala Lumpur, Malaysia effective 22APR 2013 after suspending the route 18 years earlier in 1995 ! AF will fly 3 times per week nonstop using a Boeing 777-200ER with the below mentioned schedule:

Days: MON/THU/SAT

AF 246 Dep CDG 1940 Arr KUL 1350+1
AF 241 Dep KUL 2315 Arr CDG 0600+1 

In addition, AF too disclosed many new changes to medium and long haul network for the IATA Summer 2013 season of which the main highlights are as follows:

MSP - new daily nonstop flights to be launched using an A343 effective 21MAY

BKK - frequencies increased from 3 to 4 weekly nonstop flights using a B77W

CAN - frequencies increased from 5 weekly to daily using a B772ER


Turkish Airlines has officially disclosed that it has placed a large follow up order for 20 Boeing 777-300ERs with Boeing earlier on this week as the carrier looks to rapidly expand its long haul network along with frequencies on certain key routes especially those that are STAR hub airports. The order consists of 15 firm + 5 options with deliveries starting from 2014 onwards. Last week, TK placed an order for 10 additional A333s and now with this new order, it would bring its total B77W fleet size to 27 aircraft. TK too announced that due to poor response from its customers, it shall be getting rid of its Premium Economy cabin product which is currently on board its B77W fleet only. Its B77W fleet new configuration once the Y+ cabin is taken out, is expected to be 28J + 354Y class seating a total of 392 passengers for the existing batch of B77Ws in its portfolio. The newly ordered B77Ws that will be delivered from 2014 onwards are expected to have a new business class product seating 36J + 300Y class passengers to be used on the premium heavy routes of JFK, China, NRT, HKG, LHR and


American Airlines has officially announced that it will be embarking on a major long haul expansion of its network from the on set of the IATA S13 timetable with the launch of 4 new routes from its primary hub airports of JFK, ORD and DFW. The main highlights are as follows:

DFW / ICN - new daily nonstop flights to be launched effective 09MAY using a B772ER

JFK / DUB - new daily nonstop flights to be launched effective 12JUN using a B757

ORD / DUS - new daily nonstop flights to be launched effective 11APR using a B763ER

DFW / LIM - new daily nonstop flights to be launched effective 02APR using a B757

Comments:

Good choice of launching ORD-DUS as AA is very weak in Germany and now with AB in One World, this new route should help elevate its market foot print in Germany and Eastern Europe. DFW-ICN is an interesting choice given that KE already operate this sector nonstop. If the B787-900 or B 777-300ER can operate DFW-PEK/PVG nonstop without any payload limitations in either directions, then either route should be seriously considered for the future as there is a lot of potential to be exploited here.


Ethiopian Airlines has disclosed that it will be initiating some capacity increases across its long haul route network effective NOV 2012 onwards as the carrier fully integrates the B787-800 into its core flying fleet. The main highlights are as follows:

YYZ - capacity reduced from 2 weekly B772LR (321 seats) to 2 weekly B787s (270 seats)

BOM - capacity increased from daily B763ER (235 seats) to daily B787

FRA - capacity increased from daily B763ER (235 seats) to daily B787

JNB - capacity increased from daily B738 to daily B787

20OCT edition

Korean Air has announced that it will be launching new nonstop flights to Saudi Arabia effective 09NOV 2012. Three weekly triangular routed flights shall be flown using an Airbus A330-200 as Seoul-Riyadh-Jeddah and is designed to link the two Sky Team hub airports with each other to enhance network connection options. In addition, due to the massive influx of Korean construction and engineering personnel flying back and forth between South Korea and Saudi Arabia. Over the past one year, passenger movement combined between RUH + JED to/from ICN was 37,000 passengers.


Turkish Airlines has officially revealed that it has signed a contract with Airbus to purchase 15 additional Airbus A330-300s that shall be delivered from 2014 onwards. These aircraft will be the A333IGW version which is capable of operating nonstop to Toronto, China, Hong Kong and Seoul from its Istanbul hub base. TK too is expected to announce another order for a dozen more Boeing 777-300ERs to further fuel its long haul expansion. With this additional order, TKs A330 fleet stands at 27 A 333s + 7 A332s.


Airblue of Pakistan has officially announced the launch date of the next phase of its growth strategy involving its newly acquired fleet of 2 A 340-300s obtained from Turkish Airlines. These aircraft have been reconfigured into an all economy class cabin seating about 330 passengers and its launch flight will be on 27NOV to Manchester operated nonstop from Islamabad. Airblue will be flying ISB-MAN four times per week effective 27NOV with the below mentioned schedule:

Days of Operations: TUE/WED/FRI/SUN

PA 220 Dep ISB 1400 Arr MAN 1900
PA 221 Dep MAN 2100 Arr ISB 1110+1


Emirates has officially disclosed that it will be significantly adding more capacity to its popular routes in Far East Asia from this winter onwards to cater for increasing demand arising from Europe and GCC region. The main highlights are as follows:

MNL - frequencies increased from double daily to triple daily nonstop with all flights being operated by a 2 class B773ER

CGK - frequencies increased from double daily to triple daily nonstop with all flights being operated by a 2 class B773ER

KUL - frequencies increased from triple daily to 26 weekly i.e. daily A380 + double daily B773ER + 5 weekly A332s


Aeromexico has officially announced that it will be launching new nonstop flights to London Heathrow airport effective 14DEC 2012 from its Mexico City hub airport. AM will be operating the route 3 times per week nonstop using its flag ship Boeing 767 aircraft. The flight schedule is as follows:

Days: WED/FRI/SUN

AM 007 Dep MEX 2225 Arr LHR 1500+1
AM 008 Dep LHR 1725 Arr MEX 0035+1


ONE WORLD has officially announced at its head quarters in New York City, that it has invited Qatar Airways to join the alliance which the mega Gulf carrier has willingly accepted. With this move, QR becomes the first amongst the Big 3 GCC carriers to join a major alliance. QR currently serves a majority of the key One World hub airports with a minimum daily frequency such as JFK (daily), LHR (5 daily), HKG (double daily), AMM (daily), CMB (triple daily), MEL (daily), NRT (daily) and soon ORD daily. 

Analysis:

One World needs a solid Africa presence as well and unfortunately for them all the viable carriers are part of an alliance now from that continent. India too is a market that needs to be looked at again with Air India as a partner as they will gain massive political leverage in India if this comes through positively. In addition, they shall benefit as AI flies into all the major OW hubs such as HKG, LHR, JFK, ORD, NRT, DOH, CMB and soon SYD so a no brainer there.

AI-AA can code share on DEL-ORD and JFK-DEL/BOM.

AI-QF can code share on AI's soon to be launched B787 nonstop service to SYD/MEL and in turn AI can code share on QF via Australia to AKL/CHC + domestic Australia services to PER/ADL/BNE etc.

CX-AI can code share on all HKG-India flights + AI can code share on CX's trans-pacific services to LAX/SFO/YVR + via HKG to TPE/MNL

BA-AI can code share on UK-India + domestically within each country + AI can code share on trans-atlantic services via LHR to USA operated by AA/BA.

JL-AI can code share on all Japan-India flights + domestically within their own respective countries + AI can code share on trans-pacific routes via NRT on JAL.

With regards to QR-AI, QR can code share on domestic India where as the main benefit for AI with QR is to code share on DOH-Africa and DOH-Levant/Iraq/Iran services.

Sri Lankan Airlines has revealed that it will be reducing its services to Bangkok, Shanghai and Beijing for the IATA W12 season as the carrier looks to re-engage its resources in a more profitable manner. The main highlights are as follows:

BKK - frequencies reduced from triple daily to 17 weekly

PVG - frequencies reduced from daily to 5 weekly

PEK - frequencies reduced from daily to 5 weekly


Alaskan Airlines has officially announced that it has placed its largest ever single aircraft order with Boeing earlier on this week for 50 Boeing 737s which shall in turn gradually replace its entire current fleet of B737-300/400 Classics as well its oldest B737NG models. The breakdown of the order was for 13 Boeing 737-900ERs + 20 Boeing 737-800Max's + 17 Boeing 737-900Max's.


Air India has officially announced that due to lack of bids from airlines desiring to dry and wet lease its fleet of 5 Boeing 777-200LRs, it will be putting up these aircraft for sale effective November 2012 as the carrier now has no use for them. Out of its fleet of 8 B77Ls, it will keep only 3 to be used exclusively on its popular BOM-EWR nonstop services. Airlines that currently operate the B77L today are EK, AC, DL, PK and QR only. 

Analysis:

With regards to which airlines would be interested, one has to first look into the configuration of these airlines operating a fleet of B77Ls versus AI. The latter operates a 3 class B77L which out of the current operators only EK does whilst QR/AC/DL all operate 2 class versions. Now in an ideal world, due to its rapid growth strategy, QR would be the hands on favorite to purchase these 5 birds however knowing what a tough bargainer Mr Baker is, he would only purchase it if AI pays for the cabin reconfiguration as well as per his current B77L 2 class product standards. It would be very difficult for AI to sell these birds as a 3 class aircraft unless it reduces the price further to take into account the other airline's re-configuration cost !

Two other airlines which could be a dark horse contender and that too would probably take it in the current AI configuration are Saudia Airlines and Kuwait Airways. With regards to SV, they have officially announced that they are in 2013/14 going to be embarking on a major long haul expansion program hence these 5 B77Ls would be ideal to launch 3 weekly Toronto + increase JFK to a daily service and IAD to at least 4 times per week from JED/RUH. 

As far as KU is concerned, one does not need to look any further to realize that this airline's fleet (except for the A320s) needs a total makeover due to the unfortunate mechanical aging state that it is in. KU can use the B77Ls to operate to JFK on a daily basis nonstop versus the current 3 weekly nonstop + 3 weekly via LHR combination which would take up 2.5 aircraft + use 1 dedicated for KWI-LHR daily + the other two on its FRA/CDG/FCO services replacing the AB6s! KU not only needs a fleet make over but also a major on board product face lift which as a stop gap measure these AI B77Ls will help provide. 


Lufthansa has disclosed few significant capacity changes for its long haul route network for the IATA S13 season of which the main highlights are as follows:

ORD - capacity increased from daily A343 + daily B744 to double daily B744

PVG - capacity increased from daily A343 + daily B744 to daily B744 + daily A346

JFK - capacity reduced with no A380 operating; instead double daily B744 exclusively

RUH - capacity reduced from daily A346 to daily A333

DTW - capacity increased from daily A333 to daily A346


Garuda Indonesia and Etihad Airways have officially announced a major code sharing joint venture that will see the airlines feeding each other's hubs with connecting traffic marketed by both carriers alike. It will be valid effective 02DEC when GA transfers its existing 4 weekly CGK-DXB-AMS service to operate via AUH using an A330-200. In turn, EY will code share on GA's AUH-AMS service + GA will code share via AUH to all of EY's European, GCC, North America and MENA destinations. GA is part of Sky Team and with the recent EY-AF-KL 3 way deal being announced plus last month AZ-EY plus EY wanting Air Berlin to be aligned with Air France, one can easily make out the new focus of EY's alliance strategy.


Etihad Airways has disclosed on the GDS system that it will be increasing capacity on its AUH-SYD services as the carrier shuffles around its newly delivered 3 class configured Boeing 777-300ERs between its two flagship routes of London and Sydney respectively. Effective 31JAN, out of its current 11 weekly flights to SYD all operated with an A346, a total of 7 shall be flown using a B773ER (seats 38 pax more versus A346) and in turn, LHR capacity gets reduced from triple daily B773ER to double daily B773ER + daily A346.

05OCT edition

The Kingdom of Saudi Arabia has officially announced that it has signed a new more liberalized bilateral accord with both Kuwait and Philippines allowing more flights to be operated between the two countries.

With regards to the Philippines, the main highlights of the new bilateral is as follows:

i. Flights between MNL and JED/RUH combined can be increased from the current 10 to 21 weekly
ii. Open skies between Dammam Airport and the entire Philippines valid only for Saudi and Philippine national carriers
iii. Open skies between Clarke Airport and Jeddah/Riyadh valid only for Saudi and Philippine national carriers

As far as Saudia and Kuwait are concerned, the main highlights of the new bilateral are as follows:

i. Flights increased from the current 29 times per week to 77 times per week
ii. 77 flights per week can be spread across with no limits across all 4 major KSA points i.e. DMM JED RUH MED as well as Tier II cities

Jet Airways of India has revealed a major Middle East expansion plan set to take place this upcoming IATA Winter season from its Mumbai and Delhi hubs as the carrier looks to take full advantage of the void created by Kingfisher and Air India in this all too important market segment during the peak season for travel to/from the country. The main highlights are as follows:

BOM / KWI - frequencies increased from 11 weekly to double daily

BOM / AUH - frequencies increased from daily to 11 weekly

BOM / DOH - frequencies increased from daily to 13 weekly

DEL / AUH - frequencies increased from 5 weekly to daily

DEL / DOH - frequencies increased from 5 weekly to daily

DEL / DMM - frequencies increased from 4 weekly to daily

COK / KWI - new 4 weekly nonstop flights to be launched

*All above mentioned flights to be operated with a mixture of B738s and B739s. As far as 9W's B777-300ERs are concerned, they have also been reconfigured to boost the capacity in the economy class cabin in particular with a 4th seat added in the middle row similar to EK/KL/EY. The new cabin layout thus will have 34 more seats in economy class (total 308) and the total on board capacity will as a result increase from 312 to 346 (8F/30J/308Y).

In addition, to the above mentioned expansion, 9W too has disclosed that due to heavy losses it shall be suspending its Chennai-Brussels nonstop daily service effective 15NOV 2012. This flight was operated with an Airbus A330-200 and its replacement which has been revealed on Munich's airport website portal is a new daily Bangalore-Munich operation flown daily using the same aircraft type with the below mentioned schedule from March 2013:

Days: Daily

9W 154 Dep BLR 0405 Arr MUC 0835
9W 153 Dep MUC 1200 Arr BLR 0240+1


Emirates has officially announced that it will be expanding both its Jakarta and Manila bound services during the IATA W12 season by adding a 3rd nonstop daily flight on both routes. The main highlights are as follows:

MNL - frequencies increased from 2 to 3 times daily effective 01JAN13 using a 2 class 430 seater B773ER for all flights

JKT - frequencies increased from 2 to 3 times daily effective 01MAR13 using a 2 class 430 seater B773ER for all flights

The new daily flights for both CGK and MNL will be departing DXB between 1830-1900 and arriving back by 1300 UAE time.


Etihad Airways has announced that due to increasing demand for its Istanbul bound services, it shall be increasing frequencies on the route effective 30DEC 2012 onwards. Currently, EY operates 5 times per week between AUH and IST using an A320, these shall be increased to a daily nonstop flight using a standardized schedule with the same aircraft type. 


SWISS has officially revealed that it shall be reinstating its services to Singapore after a 4 year long hiatus as the carrier looks to further tap into Austral-Asia markets via its STAR partner Singapore Airlines. New daily nonstop flights shall recommence effective 01MAY 2013 using an A340-300. The flight schedule is as follows:

LX 178 Dep ZRH 2245 Arr SIN 1710+1
LX 179 Dep SIN 2305 Arr ZRH 0610+1


SAS has disclosed that after an operating period of 63 long years, it has reached a critical stage where it sadly announces that it shall be suspending all of its flights to BKK-Bangkok, Thailand effective 07APR 2012. SAS currently operates a daily nonstop service from Copenhagen to Bangkok using an Airbus A 340-300. It has been effected with the growth of Gulf Air, Qatar Airways, Turkish and Emirates eating into its market share on the CPH-BKK sector. SK will however continue to code share on this sector with Thai Airways who are increasing its own CPH services from daily to 9 times per week effective 28OCT12.


Air India has revealed on the GDS that it will be reinstating its flights to YYZ-Toronto effective 10MAR 2013. These flights will return to its original schedule of operating a daily nonstop service using a Boeing 777-300ER. Flights are timed to arrive into YYZ at 0815 and depart at 1550 daily respectively.

Comments:

Air India should not return to YYZ with a daily nonstop service as its low season for travel to India between March and October and too risky from both a cost and profitability perspective. There are two other options for AI to seriously consider:

i. Return nonstop to YYZ but with a 4 weekly nonstop service only between 01MAR and 15OCT. Increase to daily from 15OCT 2013 onwards only when the peak season for travel to/from India begins on this route.

ii. If there is a need to return to YYZ on a daily basis using a B773ER, then it should be a one stop service operated via Manchester for the simple reason that DEL-MAN has a O&D market size of 52,000 pax per year with no nonstop service and the same applies to MAN-YYZ which has a O&D market size of 20,000 with no scheduled carrier operating it nonstop. The MAN-India market size is much larger than BHX-India and also higher yielding. The BHX-India market size in 2011 was 157,000 passengers versus MAN-India which was 226,000 i.e. 44% higher ! In addition, via DEL, AI can carry passengers to DAC, BKK, CMB, KTM, Australia and SE Asia which also MAN has a bigger market size demand versus BHX! Operating a DEL-MAN-YYZ is a safe year round option which is guaranteed to see 80-85% S/F along with high cargo loads.


ANA of Japan has made a major fleet order announcement for its long haul network by announcing a deal with Boeing for 11 additional Boeing 787-900s. These B789s are the long term replacement for its B772ER and B763ER fleet. One of its new routes i.e. Tokyo-San Jose nonstop shall be operated with the B787 from January 2013 onwards. In total, 30 B789s have now been ordered by ANA.


Air France has revealed some minor capacity changes for its long haul route network for the IATA Summer 2013 season of which the main highlights are as follows:

CAN - frequencies increased from 5 weekly to daily nonstop flights using a B772ER

BKK - frequencies increased from 3 to 4 weekly nonstop flights using a 2 class B773ER

SFO - capacity reduced from daily B744 to a daily B773ER


Philippine Airlines has announced that it has placed another major order with Airbus to further boost its long haul ambitions especially in light of the recently liberalized bilateral accord with UAE and Saudi Arabia. A total of 10 additional A330-300IGWs have been ordered by PAL in addition to the original 10 that it had placed two weeks ago. This brings a total of 20 A333IGWs ordered by PAL of which it has officially disclosed that a size able number shall be used to relaunch nonstop flights from its Manila hub to the Middle East region.


Qatar Airways has officially announced that it will be launching a new 4 weekly nonstop service to NJF-Najaf, Iraq effective 23JAN 2013. All flights shall be operated with an Airbus A320 departing DOH twice a week at 0915 and 1315 each respectively thus allowing all of its markets to be connected via DOH conveniently at least twice a week. QR's main target markets to NJF are DMM, BAH, BOM, KHI, MCT, KWI, LHE, DXB and DOH respectively.


Malaysia Airlines has disclosed on the GDS system that it will be massively increasing capacity on its European bound services to London and Paris respectively from 24NOV respectively. Flights to LHR shall receive a capacity boost with double daily A380s being deployed versus a daily B744 + daily A380. As far as CDG is concerned, capacity shall be increased from a daily B772ER to a daily A380 effective 02MAR 2013 respectively.


Air Arabia of Sharjah has officially announced that it will be launching new nonstop flights to EBL-Erbil, Iraq effective 14OCT 2012 onwards. G9 will fly to EBL four times per week from its SHJ hub using a 180 seater Airbus A320. G9's main target market for EBL is the GCC region and India. The flight schedule is as follows:

Days: MON/TUE/THU/SAT

G9 375 Dep SHJ 1310 Arr EBL 1500
G9 376 Dep EBL 1540 Arr SHJ 1915


Delta Airlines has announced that it will be boosting its operations at both Paris and Amsterdam in Europe from the on set of the IATA S13 season in the following manner:

EWR / CDG - daily nonstop flights to be re-launched

ATL / CDG - frequencies increased from daily to double daily

JFK / AMS - frequencies increased from daily to double daily

DTW / CDG - capacity increased from daily B763ER to daily A333

14SEP edition

A new landmark bilateral deal has been signed this week between the UAE and Philippines further opening up both markets to be exploited especially by the 2 dominant UAE carriers. The main highlights of this new agreement is as follows:

• Open skies accord signed between UAE and Philippines for all points except Manila.
• With regards to Manila, a total of 56 flights between the two countries can be operated per week.
• Both Emirates and Etihad Airways are allowed to increase their current double daily B777 operated services to MNL to 4 times daily each respectively maximum.

Both PAL and Cebu Pacific are the designated carriers from the Philippines and have already officially confirmed their intentions to launch nonstop MNL-UAE flights from W13 using their newly ordered A333IGWs.


Thai Airways has officially revealed many capacity changes for its medium and long haul route network for the upcoming IATA W12 season of which the main highlights are as follows:

ISB - frequencies increased from 3 to 4 weekly flights

KHI - frequencies increased from 4 to 5 weekly flights

BRU - frequencies increased from 3 to 4 weekly flights using a B773ER effective 13FEB

CDG - frequencies reduced from 10 weekly B773ERs to a daily A380

MUC - capacity reduced from daily B744 to daily B773ER

FRA - frequencies reduced from double daily to 12 weekly i.e. daily A380 + 5 weekly B773ER

MAD - capacity reduced from 3 weekly B744 to 3 weekly B772ER

MXP - capacity increased from 3 weekly A346 to 3 weekly B744

BNE - frequencies increased from 5 weekly to daily


Emirates has officially announced that it shall be launching new nonstop flights to ALG-Algiers, Algeria effective 01MAR 2013 as the carrier looks to further increase its presence in the high yielding African markets and connect Chinese, Japanese and Korean traders in particular with convenient one stop flight options via its Dubai hub to all corners of the largely un-tapped continent. EK will be operating a daily Airbus A 330-200 on the DXB-ALH sector departing DXB at 0845 and arriving back by 0055 the next day. The top markets on the ALG route relevant for EK are DOH, DXB, PEK, JED, MED, AMM, BEY, MCT, MNL and CGK respectively. In addition, EK also announced the following capacity increases for its IATA W12 schedule:

JED - frequencies increased from 18 weekly to triple daily effective 28OCT i.e. daily A332 + double daily A380

SEZ - frequencies increased from 11 to 13 weekly

AMM - frequencies increased to double daily flights using a B777

MRU - frequencies increased from 11 weekly to double daily


Qantas Airways has officially announced that it has signed a landmark 10 year commercial alliance agreement with its former arch-rival i.e. Emirates that will come into effect 31MAR 2013 i.e. on set of the IATA S13 season.

The main highlights of this alliance are as follows:

• Current QF-BA joint venture on the Kangaroo route i.e. LHR-Australia is terminated and the new route via DXB shall be called "The Falcon Route" (naming it after the UAE's national bird)
  
• QF will suspend its double daily SIN-LHR A380 service and re-route all of its LHR bound flights via DXB using an A380
• QF will operate new daily nonstop A380 service between SYD and MEL to DXB each respectively and onwards to LHR with 5th freedom traffic rights on the DXB-LHR sector
• The two QF DXB-LHR flights will depart DXB at 0110/0200 and arrive into LHR at 0540/0630 respectively where as the return flights will depart LHR at 2130/2230 arriving into DXB at 0730/0830 local time
• QF will suspend its current daily service to FRA and instead shall code share on all of EK's operated flights to Europe via DXB
  
• QF will suspend code sharing with AF out of SIN as well as with CX out of HKG to Europe respectively
• Both EK and QF to code share on all UAE-Australia-UAE flights + DXB-LHR-DXB

Philippine Airlines CEO officially announced last week plans for its Toronto bound flights as well as a reallocation of its Vancouver capacity from the upcoming IATA W12 season onwards. The main highlights were as follows:

MNL/YYZ - new 3 weekly nonstop flights to be launched effective 28NOV 2012 using a B77W

MNL/YVR - reduced to 4 weekly flights operated as nonstop terminator service with no extension to LAS

In addition, PAL placed its largest ever order on record for 54 Airbus aircraft that will be the cornerstone of its short and medium haul fleet for the next 15 years. The breakdown of this US$ 7 billion order was as follows:

10 A 330-300IGWs (capable of operating MNL-RUH-MNL nonstop in both directions) + 44 Airbus A 321NEOs


Cathay Pacific has officially announced that it shall be launching new nonstop flights to HYD-Hyderabad, India effective 01DEC 2012. CX will be operating 4 weekly flights using an Airbus A 330-300 and shall be targeting traffic bound to China, Japan, LAX, SYD, MEL, SFO, ICN and TPE primarily. The flight schedule is as follows:

Days of operations: WED FRI SAT SUN

CX 649 Dep HKG 2235 Arr HYD 0205
CX 648 Dep HYD 0335 Arr HKG 1100

 
Qatar Airways has officially announced that it will be launching new nonstop flights to ORD-Chicago effective 10APR 2012. Daily services will be launched from the get go using a Boeing 777-300ER. The flight schedule is as follows:

QR 991 Dep DOH 0915 Arr ORD 1550
QR 992 Dep ORD 2130 Arr DOH 1900+1

In addition, QR further revealed more changes to its IATA W12 schedule of which the main highlights are as follows:

ICN - capacity increased from daily B772LR to daily B773ER

WAW - new 4 weekly nonstop flights to be launched effective 05DEC using an A320

PER - capacity increased from 01DEC onwards from daily B772LR to daily B773ER


Egypt Air has officially announced that it shall be re-launching services to KIX-Osaka, Japan effective 01DEC 2012 as the carrier looks to regain its presence in markets it had suspended in 2011 due to the political unrest in the country. MS will operate twice weekly nonstop flights from its CAI hub using an Airbus A340-200. The flight schedule is as follows:

Days: THU/SAT

MS 962 Dep CAI 2330 Arr KIX 1745+1
MS 963 Dep KIX 2315 Arr CAI 0600+1


Qantas of Australia has officially announced that due to its heavy losses incurred in 2011 on its international routes solely totaling US$ 450 million it has canceled a previously confirmed order for 35 new Boeing 787-900s with the American manufacturer. Boeing and Qantas have a long business relationship and both sides agreed to help each other out during a time of crisis as Boeing too requires B789 slots being freed for current clients due to the aircraft sales popularity versus the -800 version.