Etihad to suspend Dallas flights

Etihad Airways has officially announced that due to the commercial reasons it shall be suspending all its daily flights to Dallas, USA effective 25MAR18. EY blames the suspension of its code share relationship with American Airlines for this pullout as it has been badly impacted with the loss of this vital feed.

EY operates currently to DFW nonstop from AUH on a daily basis using a B777-200LR.

Hawaiian confirms A330NEOs will not be taken

Hawaiian Airlines CEO has officially confirmed that the airline will no longer be taking delivery of its 6 Airbus A330-800NEOs and is seeking alternate aircraft for its long haul expansion program. 

HA wants aircraft that can operate with a full payload on 15-16 hour flights to London and mainland Europe on a year round basis from HNL airport.

Source: https://www.flightglobal.com/news/articles/hawaiian-seeking-a330-800neo-alternatives-ceo-442337/

Comments:

Its best if HA exchange it for Airbus A350-900s and transfer over the deposits to that. 

China Southern orders 38 additional Boeing planes

China Southern Airlines has officially announced that it has placed a multi-billion dollar order with Boeing for the purchase of 38 narrow body and wide body jets. The breakdown is 8 Boeing 777-300ERs plus 30 Boeing 737 MAX8s. 

CZ currently has 10 B77Ws operating in its fleet configured with 309 passengers in a 4 class cabin layout. It is expected to base these incremental ordered aircraft at its upcoming new Beijing Daxing airport base. 

Source: https://www.ch-aviation.com/portal/news/60650-china-southern-places-order-for-b777-300er-max-8s

Austrian studying wide body replacement

The CEO of Austrian Airlines has officially announced that the carrier has begun studying placing a large order for wide body aircraft to fully replace its aging fleet of 6 B767-300ERs + Boeing 777-200ERs from 2019 onwards. The carrier needs newer, more efficient aircraft to offer a more competitive product offering as well as operational cost savings in the long run.

Link: http://atwonline.com/airframes/ceo-austrian-airlines-must-begin-replacing-long-haul-fleet-2019-20

Comments:

By the end of Q1 2018, OS shall have 12 wide body aircraft in its fleet i.e. 6 B772ERs + 6 B763ERs. Their B777s have 48J + 264Y seating 312 pax in total whilst the B763s have 225 (26J + 199Y). It is too small of a fleet to have 2 different variant types and from a commercial standpoint, the B787 family is the ideal logical replacement.

Please note that even though new aircraft are expensive, this is a long term (20 year) investment that OS shall be doing with these aircraft hence buying 7-10 year old A330s and B777s isn't the right thing to do. To cater for future growth, OS needs to order 15 WB aircraft i.e. B787s as follows:

5 B788s + 7 B789s + 3 options

If demand for certain routes sees a big upswing in the mid 2020s, then the 3 options should be converted to the larger B787-10. If not then the options should be for the B789 variant. The B788 would seat 30J + 198Y comfortably so 228 seats in total whilst the B789 would seat 291 i.e. 30J + 261Y. Do note that EL AL went for the exact same above fleet plan strategy for the 2020-2030 period i.e. replacing their B767s/B777s and B744s with all 3 B787 variant types. 

One also does not see the need for 17 E95s in their fleet. These planes should be gotten rid off by 2021 along with their 7 A319s. In turn 25 Bombardier C300s should be ordered to replace both types as the long term savings incurred by operating the CS3 versus these 2 types with 25 aircraft is massive. The NB fleet part i.e. 23 A320s + 6 A321s should all be replaced with 30 A321NEOs.

Therefore, the future fleet in an ideal commercial scenario for the 2020-2030 period for OS should look like this:

i. 15 B787s for WB seating between 220-290 pax
ii. 30 A321NEO for high density intra-EU flying seating 200 pax
iii. 25 C300 for medium demand destinations seating 135 pax and operating within a 5.5 hour flying time radius
iv. 18 Q400s (they already operate 18 of the type) seating 76 pax and operating with 1-2 hours flying time radius 

Total fleet size 88 aircraft

Ethiopian increases Toronto flights

Ethiopian Airlines has officially announced that it has been awarded additional bilateral access to Canada and as a result of which will boost its services to YYZ-Toronto effective 02DEC17.

From 02DEC17 onwards, ET will increase its ADD-YYZ flights from the current 3 to 5 weekly using a B787 for all services.

PIA suspends New York JFK flights

PIA has officially announced via filing across major GDS systems, that will be sending all of its New York JFK bound flights effective 01NOV17 due to continued high losses amidst lower yields and increasing competition from the Middle East carriers. 

Currently, in S17 season, PIA flew 3 weekly KHI-LHE-MAN-JFK flights using a B777-200ER and demand from JFK to PAK in 2016 was as follows:

*Round trip pax*

LHE 101,000
KHI 62,000
ISB 43,000

Emirates increases Stockholm services

Emirates has officially announced that due to increasing demand for both passenger and cargo, it shall be boosting its services to ARN-Stockholm effective 08DEC17.

Current daily nonstop flights will be increased to 10 weekly using a B777-300ER with the 3 new services departing DXB at 1500 on Fri/Sat/Sun. 

Air Arabia reduces Bangladesh flights

Air Arabia has officially announced that it will be reducing its presence in Bangladesh from the on set of the IATA W17 season as follows:

DAC - frequencies reduced from 25 weekly to triple daily nonstop using an A320

CGP - frequencies reduced from 13 to 10 weekly nonstop flights using an A320

Oman Air suspends Chittagong flights

Oman Air has officially announced via publishing on major GDS systems that it shall be exiting the Bangladeshi market totally effective 31OCT17.

This is as a result of their lone surviving Bangladeshi route i.e. Chittagong (CGP) being suspended from the above mentioned date. Currently, WY operates 5 weekly B738s nonstop from MCT to CGP. WY had already suspended DAC-MCT flights since May 2017.

The GCC carriers now remaining in CGP are Fly Dubai who fly a daily DXB-CGP service + 10 weekly Air Arabia who operate from SHJ. G9 actually is reducing CGP from 13 weekly to 10 weekly effective 01NOV. 

China Airlines announces Ontario-Taipei nonstop

Taiwan's national carrier i.e. China Airlines based out of Taipei airport officially announced that will be officially launching new nonstop flights to Ontario, California (ONT) which is a suburb of Los Angeles effective April 2018. 

CI will be operating the new nonstop TPE-ONT flights 4 times per week using a B777-300ER after an intensive lobbying campaign by local Ontario officials desperate for a trans-pacific long haul link to cater for the huge Asian community residing in this part of the greater Los Angeles area. 

News link: http://www.dailybulletin.com/2017/09/29/china-airlines-announces-nonstop-weekly-flights-to-ontario-airport-in-spring-2018/

Turkish Airlines orders 40 Boeing 787-9s

Turkish Airlines has officially announced that it has placed a US$ 11 billion order with Boeing for 40 B787-9s after a long process studying the Airbus A350-900, Boeing 747-8 and Airbus A380 aircraft.
These B789s will be initially used to replace TK's aging A330-200 fleet from 2023 onwards as the oldest A332s were delivered between 2005-06. 
Though no configuration layout has been revealed, it is expected that TK's B789s would seat 291 passengers in a 2 class layout i.e. 30J + 261Y. With this cabin configuration, it is also the ideal replacement aircraft (size and range wise) for its A333 fleet between 2025-28. 
The B789 can fly all of TK's current routes nonstop with a full payload of pax + cargo but for it to launch nonstop services to SYD/MEL, it will need to either order the Boeing 777-8X or have a less dense B789 cabin configuration (with more J class seats similar to what QF is going to use on PER-LHR effective March 2018).
Source: https://www.bloomberg.com/news/articles/2017-09-21/boeing-lands-11-billion-787-deal-from-resurgent-turkish-air

Comments:

This is a very smart decision made by TK as:

1. The B789 would likely seat 291 pax in a dual class layout i.e. 30J + 261Y thus enabling it to be used to replace both its 250 seater A332s and 289 seater A333s between 2023-2030. 

2. The B789 can operate all of TK's current long haul routes nonstop without any payload issues

3. It is cheaper to purchase versus the A359

4. By placing an initial order for 40 units, it has smartly locked in favorable pricing conditions as this aircraft will appreciate in value over time hence once it gets delivered, TK can engage in a sale-leaseback transaction which would have a decent cash profit margin for the carrier. 

5. Hopefully this would mean that their future WB fleet would revolve around 2 types only i.e. B777 and B787 rather than 3 i.e. with the A359 included as there is now no real need to order the A359 for them. Fleet standardization is a must which will enable them to save big time in cost savings over the long run. 

6. I am quite sure TK would have options for the larger B781 incorporated into this order in case they feel the need to upgrade for some high demand medium range flights. The B781 would likely seat 329 pax i.e. 30J + 299Y in a 2 class layout for TK (if ordered) so about 38 more seats than the B789 overall approximately.

For sure this has gained the Turkish Govt major brownie points with the Trump Administration for which they will be suitably rewarded through other means!

American Airlines A350-900 order problem?

American Airlines CEO has officially stated that the airline is closely examining the need to have an order of 22 Airbus A350-900s incorporated into its fleet which it inherited after merging with US Airways whom had a fleet of 24 A330s which the A359s were destined to directly replace.

With a large fleet of Boeing 777s and B787s already in service, AA feels having a small sub fleet of A350s puts extra pressure on the entire system especially rotating them across its different hubs in USA. 

Comments:

In my view, there are two options here for AA to choose from:

1. Exchange 22 A359s for 44 A321NEOs 

2. Exchange 22 A359s for 25 A330-900NEOs

Both options mentioned above are good and have their own respective pros and cons. The safe bet would probably be option 1 as it can also opt for many A321neoLRs and base them out of MIA for medium demand LATAM routes where using a 763 isn't viable plus to fly PHL/BOS to U.K./Ireland year round and in the premium config boosting frequencies to LAX/SFO from these two markets along with MIA.

Option 1 allows mega cost savings over the long run as its wide body fleet would exclusively revolve around the B777 and B787 families. 

If Option 2 gets implemented, then AA should just base the aircraft out of MIA airport and use them on high demand flights year round to Europe and Latin America. 

United Airlines orders 45 Airbus A350-900s

United Airlines has officially announced that it has re-negotiated its wide body order book with Airbus which originally stood at 35 Airbus A350-1000s. These aircraft were originally expected to replace their aging B747-400 fleet as well as compliment its Boeing 777-300ER on high demand long haul routes.

However, it has now decided to opt to exchange all 35 A351s for 45 Airbus A350-900s which in turn will be a direct replacement for a majority of its aging Boeing 777-200 fleet. Currently, UA operates 55 B772ERs + 19 B772As (used on high demand regional/domestic services only).  

Source: https://www.reuters.com/article/us-airbus-united/united-orders-more-airbus-a350s-but-drops-largest-model-idUSKCN1BH1P8

Gulf Air increases Istanbul and Moscow

Gulf Air has officially announced that it will be increasing its services to Moscow and Istanbul from the on set of the IATA W17 season due to increased demand being witnessed on both routes.

IST - frequencies increased from 6 weekly to daily nonstop flights using an A320

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

Philippine Airlines announces USA 2018 expansion plan

Philippine Airlines CEO has officially announced plans for the carrier's North American expansion in 2018. The main highlights are as follows:

YYZ - 4 weekly nonstop flights shall be launched from Dec 2016 using a B77W

JFK - daily nonstop flights to be operated from June 2018 using an A359

SEA - new 4 weekly nonstop flights to be launched from Nov 2018

ORD - new 4 weekly flights via YVR to be operated from Summer 2018 using a B77W

IAH - new 3 weekly flights via YVR to be operated from Summer 2018 using a B77W

In addition to the above, PAL announced that some of its newly Airbus A321NEOLRs will be used to launch new nonstop flights from MNL to Mumbai, Delhi and Sapporo as they get delivered to the airline in due course.

Malaysia Airlines orders 8 Boeing 787-9s

Malaysia Airlines has officially announced that it has placed a landmark order with Boeing for the purchase of eight Boeing 787-9s to revitalize its aging long haul fleet. MH cited the excellent flexibility of this aircraft type which can fly to Western Europe nonstop from KUL airport without suffering any payload restriction. It even acknowledged its capability of operating nonstop LAX/SFO like UA/SQ do out of SIN if the need arose. 

MH placed this order by converting purchase rights for 16 B738MAXs into 8 B789s.

Link: http://boeing.mediaroom.com/2017-09-12-Boeing-Malaysia-Airlines-Sign-Memorandum-of-Understanding-for-16-Airplanes?sf113471564=1

Lufthansa suspends Doha services

Lufthansa has officially disclosed via filing on major GDS systems that it shall be suspending its daily Doha bound services effective 29OCT17.

Currently, LH operates a daily FRA-DOH-FRA service using an A330-300 via KWI in both directions thus making it effectively a non competitive one stop service versus QR's double daily FRA-DOH on an A359. 

P2P demand in 2016 on DOH-FRA-DOH was 34,000 passengers.

Air Canada announces Vancouver expansion plan

Air Canada has officially unveiled major long haul expansion plans for its route network from the on set of the IATA Summer 2018 season. The main highlights are as follows:

CDG - new 4 weekly flights using a B787

ZRH - new 3 weekly flights using a B787

DEL - frequencies increased from 3 to 5 weekly using a B789

MEL - becomes a year round service operated 3 times per week 

LHR - frequencies increased from daily to double daily using a B787

Comments:

YVR-CDG/ZRH are well thought out new additions as in the summer season, the yields are high along with demand. In 2016, 85,000 P2P pax flew YVR-CDG v.v. and 44,000 flew YVR-ZRH v.v. 

Cathay Pacific announces 3 new European routes

Cathay Pacific has officially announced that it will be embarking on a major European expansion from Summer 2018 onwards as the carrier looks to fly to niche markets where there is good P2P demand as well as feed to its Asian + Aussie network. It aims also to poach away market share from the Middle East and other Asian competitors especially for its HKG home market. 

The main highlights are as follows:

*All below flights to be exclusively operated by the A350-900 only

DUB - new 4 weekly flights from 27MAR

CPH - new 3 weekly flights from 02MAY

BRU - new 4 weekly flights from 02JUN

Qantas to suspend Dubai flights

Qantas has officially announced that it will be adjusting its long haul route network from the on set of the IATA S18 season as the carrier looks to streamline better its partnership with Emirates. The main highlights are as follows:

DXB - all flights to be suspended effective 28MAR

LHR - flights in S18 will be operated as daily B789 MEL-PER-LHR + daily SYD-SIN-LHR using an A380

SYD/SIN - frequencies increased to daily A380 + daily A330

MEL/SIN - frequencies increased from 10 weekly to daily A380 + daily A330