//
archives

Commercial Airliners

This category contains 76 posts

Transatlantic Fuel Efficiency in 2017 was won by Norwegian Air Shuttle at 33% above average, the worst was British Airways 22% below average, time for more fuel efficient aircraft at BA to get competitive? Meanwhile Norwegians huge new aircraft acquisition strategy is really paying off now.

      https://www.linkedin.com/in/tomas-chlumecky-aviation-doctor-3200a021/     Survey reveals disparity in transatlantic fuel efficiency   Sep 12, 2018  Alan Dron| ATW Plus     Norwegian Air Shuttle was the most fuel-efficient airline on North Atlantic routes in 2017, according to a new study. The LCC turned a 63% better fuel-burn figure than the worst operator, British Airways (BA). The survey, … Continue reading

Will domestic airlines benefit from Single African market? Well so far only 23 nations out of 55 have signed SAATM, and we have a rush by 10 new state-owned airlines coming to the market in the next 2 to 10 months, and that will hurt a domestic airlines in those countries. We also have non-signing SAATM state airlines abusing the liberalization by competing with 5th freedoms in foreign countries, which is not right. How do you get the other 33 states to sign SAATM when you allow them to compete directly with local private airlines? you don’t! You need to take a tough stand on bilateral air service agreements (BASA) between SAATM signing states and non-signing states, and limit their access to SAATM signing states markets, which do represent 75% of Africa’s air transport market.

  https://www.linkedin.com/in/tomas-chlumecky-aviation-doctor-3200a021/       Will domestic airlines benefit from Single African market?     MUYIWA LUCAS – The Nation – August 27, 2018       Tomas’s Comment:   When we have new state-owned airlines being formed right now in 10 African countries Senegal, Guinea, Ghana, Chad, Eritrea, Djibouti, Zambia, Uganda, Tanzania, Gabon, CAR?   On … Continue reading

Embattled Jet Airways is seeking financial help where it can, and Boeing is ready to help the airline to save its 225 x B737Max and 10 x B787-9 orders. OEM’s do help strategic airline customers every now and then, but it is a gamble and when you support one airline what do the airline competitors think of that? does it not distort competition? in this case say SpiceJet? What happens when some of the big order LCC’s in Asia get into trouble, and some surely will with their highly speculative orders that exceed their current fleets by 100% to +300%? will the OEM’s come to their rescue to? It is a slippery slope that OEM’s need to be careful going down.

  https://www.linkedin.com/in/tomas-chlumecky-aviation-doctor-3200a021/     Boeing gives Jet Airways a helping hand   August 21, 2018 Rediff.com     ‘Boeing has returned some cash to the airline which will help it improve the current liquidity crisis.’ Arindam Majumder and Aneesh Phadnis report.       Tomas’s Comment:   When commercial aircraft OEM’s help out a struggling … Continue reading

The “new” Guyana Airways Corporation (GAC) is in trouble, as the Government of Guyana removed the privately-owned Guyana Airways Corporation Inc. (GAC) from the Companies Register two years after the entity was duly registered because the name is identical to two previous companies. Now out of the blue just 2 months away from starting with 2 x B737’s there is a problem with the name? This is a classic political “shakedown” of a new company by someone high up in the Government looking for bribe, nothing else makes sense with this, the nation has waited 15 years to have its own airline, and the now that it almost has one, someone wants to pillage it before it gets off the ground. GAC (aka Guyana Airways II) is already facing challenges, as Guyana is a FAA Category 2 country, so no carrier from Guyana can fly directly to the US, where a large Guyanese diaspora lives, especially in New York. Guyana Airways now plans to just serve Port of Spain, Barbados and Havana, going up against Caribbean Airlines (CAL) will not be easy, but then a JKF service may have to face JetBlue soon and this October American will start Miami to Georgetown, as a start-up you do not want to face the BIG airlines head on right from the start, many that have, died quickly.

    https://www.linkedin.com/in/tomas-chlumecky-aviation-doctor-3200a021/   Starbroek – August 25, 2018   Boeing B707 of Guyana Airways after the 2001 bankruptcy, a sad cannibalized aircraft rotting in Georgetown       Start of new local airline delayed over name-company deregistered by commercial registry Millions in losses loom for a new local airline as the start of operations … Continue reading

SUMMARY: DAY #1 at Farnborough International Airshow – July 16, 2018

Read my regular Articles and Posts on LinkednIN:  https://www.linkedin.com/in/tomas-chlumecky-3200a021/         July 16, 2018,  Airfinance Journal:        Day One of Farnborough 2018 belonged firmly to Boeing in terms of firm orders, although the US manufacturer saved up many of its largest announcements from deals done earlier in the year.   Airbus, meanwhile, … Continue reading

There is good news and there is bad news out of Surinam Airways (SLM), first the good news, long time CEO Robbi Lachmising is gone and hopefully more executives will go at the top, as really little has been done to turnaround SLM, a drain on public funds, and not the driver of economic and tourist development a national airline should be. The new CEO is Greg Lau and the new CFO is Steve Silos, and they are not from the airline industry and what I know, they are not political appointees of President Desi Bouterse’s NDP (National Democratic Party), unlike the previous CEO. This is all good, a fresh set of eyes, ears and ideas is finally running the show at SLM, and hopefully ready and willing to look at new business models and strategies, beside the one that has changed very little since independence on November 25, 1975. The bad news, is really not that bad, it is just another loss for the last fiscal year 2017-2018 of $US 3.0 million, which seems better, but in light of a small fleet of 3 aircraft (1 x A340-300, 1 x B737-700 and 1 x B737-300) it is just another indication SLM needs a major overhaul of its business, fleet and staff, as +/-800 employees for 3 aircraft is at least 4 times what it should be, to be efficient and competitive with any airline in the Caribbean Basin.

Read my regular Articles and Posts on LinkednIN:  https://www.linkedin.com/in/tomas-chlumecky-3200a021/   SLM suffered losses of US $ 3 million JULY 9, 2018 – Armand Snijders       Tomas’s Comment:   I know SLM pretty well, I was first there in the early 1980’s and I love the place and its people, the last time I … Continue reading

Boeing and Embraer sign MOU for a new strategic partnership

Read my regular Articles and Posts on LinkednIN:  https://www.linkedin.com/in/tomas-chlumecky-3200a021/   Airline Economics Daily – July 5, 2018       Putting an end to speculation, Boeing and Embraer have signed a Memorandum of Understanding (MOU) to establish a strategic partnership that will focus on the development of a commercial airplane portfolio that ranges from 70 … Continue reading

Will Boeing’s new Mid-Market Aircraft (NMA) (aka Boeing B797) open up new markets and compete well with Airbus’s A321LR?

Read my regular Articles and Posts on LinkednIN:  https://www.linkedin.com/in/tomas-chlumecky-3200a021/     WILL BOEING’S MID-MARKET AIRCRAFT SPUR NEW BUSINESS MODELS? written by Jordan Chong June 27, 2018 – Australian Aviation     In 2017, Boeing formally established a program office for its new mid-market aircraft (NMA) that some have labeled the 797.   The study into … Continue reading

Fastjet hits back at media for being to harsh on it, yet while no one can be as bad as Fastjet was in 2016, with an operating loss of $US 63.9m (yes, -48% operating loss margin) operating 3 x A319’s, things have not changed much since August 1, 2017. The airline received $US 72.8m in new investment in 2017 and had an operating loss of $25.3 million and in that 18 months it has burned it all away with a smaller fleet (3 x ERJ-145, 2 x E190)? yes it reduced expenses, off course with smaller aircraft, but burning cash at $4.0m a month one has to really ask is this ‘new’ business model any better? as load factor is 71% and revenue per seat of just $60.90 means its yield is way too low, again another carrier offering LOW FARES, but NOT a LOW COST CARRIER! and PRASK is well below CASK, and they want more money? seriously?

Read my regular Articles and Posts on LinkednIN:  https://www.linkedin.com/in/tomas-chlumecky-3200a021/       Tomas’ Comment: They can paint a rosy picture, but it has been under a turnaround since August, 2016, so 22 months of restructuring they should be further along in their recovery, but they are not and yes they have down-gauged to much smaller … Continue reading

Start-up Vietnamese airline, Bamboo Airways, has committed to purchasing 20 787-9 Dreamliners and 24 x Airbus A321neo’s back in March. The airline will be up against state owned and soon to be 49% privatized Vietnam Airlines with 83 aircraft and 28 on order, LCC VietJet Air with 55 aircraft and 179 on order and lastly Jetstar Pacific with 19 aircraft, if all airlines take their orders, Vietnam should have 4 airlines operating a total of 408 commercial jet airliners by +/- 2024, that is going to be a highly competitive market for sure.

SEE:  https://www.linkedin.com/in/tomas-chlumecky-3200a021/   Airline Economics Online- June 27, 2018       Tomas’s Comment:   Bamboo Airways, is a startup airline by a Vietnamese construction company, FLC Group. It will start in late 2019? and will serve destinations where FLC Group has heavily invested in tourism infrastructure, as well as other secondary domestic routes.   … Continue reading

SUMMARY: The 2nd last multi-national owned airline left in the world, SAS Scandinavian Airlines, the state carrier of Sweden, Norway and Denmark since 1951, is about to lose Norway as its shareholder, as it is selling the last of its 9.88% of the airline (down from the original 14.3%). Multi government airlines don’t work, from Air Afrique, Gulf Air, MSA, East African Airways to LIAT, they served their purpose but now its time for owners to go their own way, state owned airlines are hard to run imagine 11? it is time for that business model to be put to rest.

SEE:  https://www.linkedin.com/in/tomas-chlumecky-3200a021/   June 26, 2018 – Airwise Norway has announced it will sell its remaining shares in flag carrier SAS Scandinavian Airlines.   The Norwegian Ministry of Trade and Industry on Tuesday launched the sale of its remaining 37.8 million shares, representing 9.88 percent of the airline.   Norway originally held a 14.3 percent … Continue reading

Warning: Airline Crew Appear To Get Cancer More Than The Normal Population

SEE:  https://www.linkedin.com/in/tomas-chlumecky-3200a021/   Aliyah Kovner-27 JUN 2018   Flight attendants have a tough job. On top of the psychological strain from having to deal with some truly ill-behaved customers, crew members face numerous physiological hazards in the form of frequent circadian rhythm disruptions, breathing poor-quality recycled air, and exposure to ionizing radiation from spending so … Continue reading

SUMMARY: The Etihad Airways “Equity Alliance Strategy” was a disaster just like the 1990’s Swissair “Hunter Strategy” which bankrupted Swissair in 2001, now Etihad has to dig itself out of a mess and right size its business, which means less aircraft, which is bad news for Boeing’s B777X order book, but with just 25 orders out of a total of 326 its a small hit, the big hit will be on Etihad which now has to be thinking of joining Emirates and flyDubai under one Group ownership, that will take some soul searching and loss of pride in Abu Dhabi, but it makes sense for the future of Etihad.

SEE:  https://www.linkedin.com/in/tomas-chlumecky-3200a021/   Etihad B777-300ER     $6 Billion Order Loss For Boeing? Jun.18.2018 – Seeking Alpha -Dhierin Bechai         Tomas’s Comment: Etihad Airways has 8 x $394.8 million B777-8’s on order and 17 x $425.8m B777-9’s on order since November, 2013 when life was good for Etihad Airways, and ordering 25 … Continue reading

Airbus threatens to leave UK in case of hard Brexit

You can read more of my Articles and Posts on LinkedIN at:   https://www.linkedin.com/in/tomas-chlumecky-3200a021/  Aerotime Hub News – June 22, 2018 – CLÉMENT CHARPENTREAU   Airbus threatens to leave UK in case of a hard Brexit, a clear warning for Conservative Prime Minister Theresa May and her government, whose negotiations with Brussels are stagnating nine months … Continue reading

Goshawk acquires SKY Leasing’s Irish subsidiary 

You can read more of my Articles and Posts on LinkedIN at:   https://www.linkedin.com/in/tomas-chlumecky-3200a021/      Airline Economics Daily – June 22, 2018   Goshawk acquires SKY Leasing’s Irish subsidiary  Goshawk Aviation has confirmed that it will acquire all of the outstanding shares of SKY Leasing’s (SKY) Irish subsidiary, Sky Aviation Leasing International (SALI), from the … Continue reading

UPDATE: OMG ! Bombardier Inc. released its 1st Half 2017 Results, not good as expected. Total revenue $7.668B (down 6.7% on 1H/2016). BCA (Bombardier Commercial Aircraft), just 35 deliveries down from 47 in 1H/2016 (down 25.5%) and revenue down 14.4% on 1H/2016 with average discounting of 31% off list prices. Meanwhile, Q400 down to 31 orders in backlog (14 months of production), production down 21% (just 2.16 per month) on 2016, 13 deliveries and 13 orders, book to bill 1.0. CRJ line down to 47 orders in backlog (14 questionable CRJ-1000’s with just 54 deliveries in 7 years), production down 35% (just 2.5 per month) on 2016, 15 deliveries and just 10 new orders, so book to bill just 0.67. CSeries, NO new order in 2017, only 2 x CS300’s ordered in the past 15 months, yes an absolute sales & marketing ‘disaster’ from the “dream team”, but 7 were delivered (1.16 per month) yay ! whopee ! Only 65 business jet deliveries (down from 73 in 1H/2016) while revenue down 13.8% on 1H/2016. Now, all eyes are on US Commerce Department decision September 25th in regard to imposing countervailing duties on the CSeries of up to 79% for basically ‘illegal state aid’ to Bombardier by Ottawa and Quebec, and another 79% duty for anti-dumping, basically selling the CSeries a whole lot cheaper in the USA, to Delta Air Lines, then back at home to say Porter Airlines. An unfavorable ruling will shut the struggling CSeries program (320 orders in 9+ years, with +20% ‘questionable’ still) out of the all important US market, as if the program needed more problems ? Light at the end of the tunnel for BCA ? China, either Comac acquisition or lots of CSeries orders from there, or both, as orders in China for CSeries, Q400 and maybe CRJ will come easier if under Comac, its the only possible ‘white knight’ for struggling BCA, like it or not.

READ: more on Bombardier or other topics by clicking categories on the right. Well today Bombardier Inc. released its 1st half 2017 results, and and its not good, as revenue is down 6.7% to $7.668B on 2016, this company is NOT going to be a $25.0B a year company in 2020 as planned in its … Continue reading

SUMMARY: While India’s aerospace industry is growing, most of it is on the military side while commercial aviation is far behind, yet HAL (Hindustan Aircraft Ltd) started with license production of the Hawker Siddley 748 turboprop airliner almost 40 years ago (89 built) and then in the mid-1980’s continued with the Dornier 228 (till now +125 built), and that is is ? Oh, lets not forget the never ending 29 year development of the NAL Saras, a 14 passenger pusher turboprop resurrected earlier this year again, for what ? its too small for India’s needs. The Indians know they need bigger aircraft, have the “plans” for the 80-90 seat Regional Transport Aircraft (RTA) turboprop and the 70-100 seat Indian Regional Jet (IRJ), but as of now its just talk and nice computer generated pictures. Of the top 7 major aerospace manufacturing nations, India is ranked 7th, yet was ahead of the Chinese 30 years ago, but it has not moved forward, while the Chinese now have the ARJ-21, C919 and soon MA-700 turboprop, all India has is the little 19 passenger Dornier 228, and that is it. What is India waiting for ? it has a huge market for aircraft between 19 to 100+ passenger turboprops and jets, it could have been a major competitor in that segment to Brazil, Canada and China, but its out of the game, too late now because too many new players in the market, Japan (MRJ-75/90), Turkey (TR/TRJ-628), Russians (SSJ100, MC-21) and Indonesia (N219), and other nations to come ?

 India’s commercial aircraft industry struggles to get “off the ground”, yet it has had years of experience and some success, but today it is sadly out of the game. Hindustan Aeronautics Ltd. (HAL) first licence production was in the early 1980’s to 1988 the 44 passenger British HS-748 turboprop, of which 380 were built, and … Continue reading

SUMMARY: Is it too Early to Bury the A380 ? Then a look at the costly $25.0B, A380-800 program in more detail which has just 317 orders and 210 deliveries for the $436.9M List Price airliner now operated by 13 airlines. As we approach 10 years in service with Singapore Airlines we will see the first used A380’s to come to the used market (for airline and possibly VVIP/Head of State use). Does the big 4 engine airliner have a future ? a niche ? as it is the lowest cost per unit (CASK) airliner in the world at Emirates, where some are configured with 615 seats, and its why Malaysian Airlines is putting in 700 seats on its A380’s for Hajj and other charters, wile ANA will have 600+ seats in its 3 x A380s for its high demand leisure flights from Japan to Hawaii, replacing 2 x B767-300’s flights with one A380 flight, a sign of some new potential for the “Queen” of the skies ? Lets hope so.

https://www.aerotime.aero/en/civil/18805-is-it-too-early-to-bury-the-a380 ————————————————————————————————————————————————————————————— With permission from Aerotime Is it too early to bury the A380? Published on: May, 19, 2017 Source and image:Oleg Volkov Airbus A380 is big, beautiful, and notoriously problematic when it comes to airport availability and – most importantly – profitability. For some, like Emirates, it is still a signature aircraft that is … Continue reading

UPDATE: Bombardier Inc. ex-President & CEO, and as of today also ex-Executive Chairman, Pierre Beaudoin is out at least ! and so are 1st Quarter, 2017 financials. In the first 3 months of 2017, Bombardier’s revenue is down to $3.6B (-7.7% on 1Q/2016) continues its revenue slide (down $3.77B or -18.7% since 2014). Aircraft deliveries for 1Q/17 are down to just 44 aircraft (15 Commercial and 29 Business) , Q400 deliveries were 6 with just 26 orders in backlog (13 months), CRJ deliveries were 8 with just 54 orders in backlog (20 months), and only 1 CS300 delivered. Bombardier delivered 29 business jets, more skewed to light jets as the top end market is struggling these days, not good news for the new Global G7000. Meanwhile, only 2 x CS300’s orders in the past 11 months ? the program has a serious problem selling the aircraft, and two, selling above cost at some point is important, no ? Now, Boeing wants US Commerce Dept. to place a $13.4M “price dumping” tariff on the CSeries deal with Delta Air Lines and ban the aircraft from further US sales, meanwhile ATR and Embraer are complaining to the WTO of Canadian “illegal state aid” to Bombardier, criminal bribery investigation under way in Sweden and yet the top 5 executives wanted a 50% increase for an “Exceptional 2016” seriously ? One wonders what “planet” these executives live on ? and where is this “magical” 7,000 deliveries in 20 years in the 100 to 150 passenger market ? This CSeries program is still with just 320 orders (no 40 for Republic, just PR deferral till the end of time) after 9 years ? maybe they got the market positioning all wrong ? What happened to the “game changer” ? and the “dream team” ? that was suppose to sell lots of CSeries ? Those Top 5 executives need to go, 1 down 4 to go ? Lastly, Porter Airlines (Canada) placed a conditional order for 12 x CS100’s and 18 options in April, 2013, show the price offered to Porter and we will all know if they are “price dumping” in the US market or not, easy no ? Behind all the denials they know they are “price dumping” its sadly the only way they know how to sell the CSeries, yup all 340 orders below cost !

READ more on Bombardier on this Blog, just click Bombardier under Categories on the right side of menu.   The 1st Quarter results are out for Bombardier, but the most important news is that Executive Chairman, Pierre Beaudoin is stepping down after numerous problems and Revenue declines. The man I refer to as the “Destroyer” … Continue reading

SUMMARY: A small airline in Thunder Bay, Ontario, North Star Air Ltd. has been bought for $C 31M ($US 23M) by Winnipeg based North West Company (NWC), a large Canadian grocery and retail company with +218 stores, many in remote and isolated communities across Canada’s North. The driver of this deal was to control its distribution by having its own cargo airline, and not being dependent on what is basically a air cargo monopoly by Calm Air in the Manitoba, Nunavut and Kivalliq regions, where NWC has many stores, and where the First Nations communities are totally dependent on aircraft for all their local needs for most of the year. The acquisition raises the problem of a lack of competition in many parts of the North, where communities and suppliers have all but one choice of airline in and out of many communities, which in many cases allows for high margin “monopoly” pricing. Canada has no Essential Air Service (EAS) like the USA, which subsidizes scheduled air services to 150 markets of which 44 are in remote parts of Alaska with single engine turboprops like the CE-208B to SF340’s and CRJ-200’s at a cost of $250M a year (President Trump looking to cut that). Canadian passengers and suppliers in the North have no choice but to pay the very high fares and freight rates demanded by air operators. Time for a new fresh look at affordable air access in the North ? if we are to develop the North as Ottawa says, then we cannot burden and punish the people there with high fares and freight rates, that make life their very expensive as everything in most communities goes by air, from groceries, lumber to even fuel for electric generators.

It has been pretty quite on the Canadian airline mergers and acquisition front since the late June, 2016 acquisition of Transwest Airlines (Prince Albert, Saskatchewan) by local rival West Wind Aviation (Saskatoon, Saskatchewan). That deal created another Provincial regional airline monopoly, just as EIC (Exchange Income Corporation) has in neighboring Manitoba, where it now owns … Continue reading