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How will United use its 787-10s?

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I've said it once and I'll say it again, United Airlines has options with its Boeing 787 orders.

The Chicago-based carrier's latest order for 20 roughly 320-seat -10 variants only reconfirms this fact. The aircraft are slated to replace "older, less efficient aircraft", according to a release, but - considering that their deliveries are five years out - could really be used for anything.

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United Airlines

If United maintains the replacement line, its Boeing 777-200s are the likeliest candidate. Its oldest 777s, which seat between 253 to 348 passengers, will be 24 years old when the -10s start arriving. This is just about the 25 year useful life that airlines generally use for aircraft, though many can and are flown longer.

Economic conditions could also easily change in five years - any one remember the generally optimistic outlooks that were maintained almost up to Lehman Brothers collapse and the ensuing credit crunch in 2008? United has time to change track and opt to either grow or shrink its fleet.

The airline declines to elaborate on its plans for the 787-10s beyond that they will be used as replacement aircraft.

United's order for 787s is now split between 39 -8s and -9s - it has not specified the breakdown - and 20 -10s. It has six -8s in its fleet.

Delta's Memphis in maps

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Delta Air Lines will cut 12 destinations and about 30 flights from Memphis International this September, as it de-hubs the former Northwest Airlines stronghold.

Gone are flights to Baton Rouge, Fayetteville/Northwest Arkansas, Fort Lauderdale, Jackson, Knoxville, Little Rock, Oklahoma City, Omaha, Phoenix, St. Louis, Shreveport and Tulsa by 3 September. Remaining are 27 cities and 64 flights on peak days that include hubs, focus cities and some large business and leisure destinations around the country.

But this is a story best told in maps.

Delta routes from Memphis after 3 September.

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Delta and Innovata FlightMaps Analytics

Delta's Memphis routes this August.

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Innovata FlightMaps Analytics

Finally, Delta and Northwest Airlines in Memphis during the latter's last full month of operations (excluding Northwest's nonstop to Amsterdam), January 2010.

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Flightglobal/Innovata

What a difference three years makes.

More sharklets debut at JFK

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This entry was written by Flightglobal reporter Jon Hemmerdinger, who we hope to have posting regularly to the Airline Business Blog in short order.

New York planespotters take note: more shark fins may cut the skies above John F. Kennedy (JFK) airport this summer.

JetBlue Airways announced in an 8 June blog post that it is fitting drag-reducing sharklets on the wings of another Airbus A320 aircraft at its Hangar 81 facility at JFK.

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JetBlue Airways

The blog did not say when the aircraft will begin plying skies above New York, and the airline did not immediately respond to a request for information.

JetBlue was the first US carrier to install sharklets on an A320 when it outfitted aircraft N821JB with the new wingtips in February.

The latest aircraft is tail number N809JB, according to photographs published on the blog.

Both aircraft were manufactured in 2012, according to Flightglobal's Ascend Online database.

JetBlue says sharklets give the A320s an additional 100nm (185km) in range and allow them to carry up to 1,000 pounds (454kg) of additional payload.

The airline initially ordered five sets of sharklets for A320s, but placed another order for 110 sets earlier this year.

JetBlue's fleet includes 127 A320s, Ascend shows.

How are network carriers facing up to the LCC threat

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Are network carriers faring any better this time round in their attempts to restructure their operations to counter the budget sector threat on short-haul traffic? As part of this year's Airline Business interactive low-cost carrier special, published in association with CFM International, we chart the distinctly mixed track record of network airlines' own attempts to launch budget operations and look at the different approach across the regions.

 

LCC interactive 13You can also check out the leading low-cost carriers by revenues and traffic across the regions, watch expert video comment on some of the key challenges facing the sector, see our interview with the head of China's first budget operator, Spring Airlines, and there's a chance for you to test your own low-cost carrier potential with our special quiz.

Its available to download for free here or on a tablet via the Airline Business app.

 

 

United and Houston, one year later

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United Airlines is making good on its threat to cut capacity at Houston Intercontinental, one of its largest hubs, finds a new Flightglobal Pro analysis.

Capacity is down 11.4% this month compared to June 2012, Flightglobal/Innovata data shows. The Chicago-based carrier says that capacity is down 6% based on its internal data.

The cuts come a little more than a year after United said that it would cut current and planned capacity at the airport 10% by 2015 in response to the city's decision to approve an international arrivals facility at Hobby airport in May 2012. The Hobby expansion is backed by competitor Southwest Airlines.

"This will harm us and IAH [Intercontinental], but IAH will continue to be a strong hub for United," said Jeff Smisek, chief executive of United, at the time. "Unfortunately, the city of Houston will suffer the consequences of this decision for decades to come."

Flights to Aruba, Asheville, Cedar Rapids, Del Rio, Greensboro, Mazatlan and Paris Charles de Gaulle have been cut, according to Innovata FlightMaps Analytics. Planned service to Auckland was also cancelled.

Houston routes ended by United between June 2012 and June 2013

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Innovata Flightglobal Analytics

Houston remains a large hub for United, despite the cutbacks. It was the airline's third largest behind Newark and San Francisco in terms of available seat kilometres (ASKs) in June, according to Flightglobal/Innovata. It was the second largest a year ago.

United says that it remains committed to Houston, citing Intercontinental's importance as its primary gateway to Latin America.

In the meantime, Southwest plans to break ground on the $156 million, five-gate international concourse at Hobby in September with opening slated for 2015.

United says goodbye to the 737-500 (and the 767-200ER)

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United Airlines retired its last Boeing 737-500 on 30 May, with a final flight from Cleveland to Houston Intercontinental.

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United Airlines

The aircraft operated United 1705, which landed at Intercontinental at 19:44 local time, according to FlightAware. It was the Chicago-based mainline carrier's last 737 classic.

The 737-500 (N62631) was delivered to Continental Airlines in June 1995 and ordered in May 1993, according to Flightglobal's Ascend Online database. Continental merged with United in 2010.

With the last 114-seat 737-500 gone, United has a gap in its fleet between the 76-seat Embraer 175s (deliveries begin next year) and the 120-seat Airbus A319 - soon to have 126 seats once the 55 aircraft fleet is updated with slimline Recaro seats. Could a new 100-seat mainline aircraft be in the airline's future?

Ron Baur, vice-president of fleet at United, declined to comment on a possible order in May, though he confirmed that one would be allowed under the contract its pilots ratified in December 2012.

UPDATE: Twitter user Will let us know that United also retired its last Boeing 767-200ER on 28 May. The aircraft (N68159) operated its last flight from Munich to Newark on 27 May, FlightAware shows. Continental took delivery of the aircraft in 2001 after ordering it in 1998, Ascend shows.

What a week for United - two fleet types gone! Baur definitely deserves kudos for staying busy, what with orders for the E-175, its Boeing 787s returning to service and taking delivery of new 737-900ERs all in the course of just over a month.

What's trending in airline IT?

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Two weeks from now the glitterati of the airline technology world will congregate in the countryside outside Brussels for the industry's IT event of the year, the SITA Air Transport IT Summit.

The assembly takes place on 18-20 June, and one of its regular highlights is the revealing of the top line results of the Airline IT Trends Survey.

sita-summit.jpgThe findings of this annual analysis, carried out by Airline Business in partnership with SITA, will be explained and discussed during the session "Celebrating 15 years of market insight for the Air Transport Industry" on 19 June. And I will be on the panel to give my observations on the technology trends captured this year along with several peers from across the industry.

I'm sure that, as usual, this will be a well attended session, particularly as our surveys have become the industry's benchmark and a bellwether for airline CIOs, providing trusted insights into the trends and technologies they must keep high on their agendas.

Mobile a go-go
Over the last 15 years our IT surveys have tracked all the trends that have changed, or are set to change, air transport industry operations. These range from self-service initiatives and emerging approaches to travel distribution, through to cloud computing, business intelligence and many more.

mobile.jpgBut the one technology that is constantly changing, and the one most likely to make the biggest mark on our industry, is mobile. And I'm looking forward to that early glimpse of the results. Our surveys have charted the transformation as airlines and airports take on board new and emerging mobile technologies.

We hear more and more about advances that should harness mobile to deliver better services, efficiencies and revenues - in fact, we'll there will be much more about this at the IT Summit as "mobile explosion" is another of the Industry Insight Sessions.

The industry has been busy trialling and piloting an array of mobile projects over the last year, not least of which is this one from SITA Lab.

So I look forward to seeing many of you at the summit to hear the survey results first hand, and if you can't be there in person stay tuned to Airline Business for our analysis of the findings. I wonder what surprises it will have in store for us this year.

PICTURE: Alaska's colourful Hawaii

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This entry was written by Flightglobal reporter Jon Hemmerdinger, who we hope to have posting regularly to the Airline Business Blog in short order.

Alaska Airlines is showing off its dedication to Hawaii - literally. 

The Seattle-based carrier unveiled a Boeing 737-800 painted in its new "Spirit of the Islands" livery in Honolulu on 3 June, its first themed livery related to the state.

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Alaska Airlines

The livery on N460AS demonstrates Alaska's dramatic growth in Hawaii, which represents about 20% of revenues after only three years of service.

It designed by 17-year old local high school student Aaron Nee, who was joined by classmates, teachers and state officials at the unveiling ceremony. His design was selected from among 2,700 entries that Alaska received from school children across Hawaii in its "Paint-the-Plane" contest.

The design shows a canoe sailing in blue waters off a lush, green, mountainous coast, colourful hibiscus flowers - Hawaii's state flower - and an aerial rendering of the Hawaiian islands.

Nee will receive a $5,000 scholarship and tickets for four passengers to any of Alaska's destinations, says the airline.

Alaska says a crew of 18 completed the paint job in 24 days, using 26 colours, 140 gallons of paint and 28,800 yards (26,335m) of masking tape.

Lufthansa's New York switcheroo

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Lufthansa has two big partners in New York - the city's hometown airline JetBlue Airways and its long-standing partner United Airlines.

JetBlue became a partner in 2008 after the German carrier invested $300 million in the airline in order to fill the gap in United's network, while the latter became a big player in the New York area only after its merger with Continental Airlines in 2010.

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Edward Russell

"That big gap we always suffered from in the United-Lufthansa relationship was suddenly filled with the Continental operation at Newark," says Carsten Spohr, chief executive of Lufthansa German Airlines, in an interview with Airline Business in Frankfurt on 31 May. "That downplayed somewhat the need to rely on JetBlue on our side."

As a result, Lufthansa never pushed to expand its relationship with JetBlue beyond a seat on its board and a one-way codeshare that allows its passengers to connect to select JetBlue flights over New York. In addition, JetBlue never pushed to expand the relationship either, instead using its position as the largest domestic airline at New York's John F. Kennedy (JFK) airport to expand its list of partners.

The German carrier is now in the process of divesting its JetBlue shares through a €234.4 million ($306.7 million) five-year convertible bond that allows investors to convert their notes to JetBlue shares.

Spohr does not comment on the future of Lufthansa's codeshare with JetBlue, though he says that everything was "fine as ever" in recent discussions with JetBlue chief executive Dave Barger.

Considering the carriers' existing relationship and JetBlue's desire for multiple partner airlines, it is entirely feasible that the codeshare will remain in place even after the stake sale.

Lufthansa remains larger at JFK than Newark, despite its alliance shifts. It operates twice daily between Frankfurt and JFK compared to once daily to Newark, however, the latter also has two daily United flights that operate under the two carriers' metal neutral joint venture, Innovata schedules show.

Sadly, neither New York airport has regularly scheduled service on the carrier's new Airbus A380s or Boeing 747-8s. Lufthansa says that it moves the aircraft around based on seasonal demand so the widebody flagships could come back to New York anytime.

We can only hope that they come sooner rather than later.

Note: An earlier version of this post attributed the quotes to Christoph Franz, chief executive of Lufthansa Group.

PICTURE: American's first A319 comes together

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American Airlines' first Airbus A319 is prepping for its debut in September, as it proceeds through final assembly at one of the airframer's factories.

The Fort Worth-based carrier unveiled a picture of its first A319 on its Facebook page today. The aircraft's tail is adorned with the stylised waving flag of American's new soaring spirit livery. It is slated for delivery in July.

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American Airlines

The aircraft marks the first Airbus narrowbody for American, having long eschewed the European airframer since it famously signed an exclusivity agreement with Boeing in the 1990s.

American also confirmed the first destinations for its A319s today. From a base at Dallas-Fort Worth, it will fly to Charlotte, Cleveland, Memphis and Wichita with about six aircraft from 16 September.

Dayton and Lubbock flights will be added on 1 October; El Paso, Huntsville, McAllen and Toronto on 14 October; San Salvador on 1 November; and, Gunnison/Crested Butte, Jackson Hole and Vail on 19 December, says American.

Interestingly, only the later destinations could be described as the "high altitude" airports that American said it planned to use the A319s to last year.

The carrier plans to have 15 A319s and five Airbus A321s - which will be used on transcontinental flights between New York John F. Kennedy (JFK) and both Los Angeles and San Francisco - in service by the end of the year.

American has 130 A319s and A321s on order but says that it has yet to decide how many of each variant to take - despite comments from engine manufacturer International Aero Engines that it will take 65 of each.

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