Airlines: October 2008 Archives

This piece is cross-posted at the Adventure Quest travel blog

The question was raised on a travel blog earlier this week about the necessity for small countries to operate airlines of their own. The question of justification came to the fore when looking at Surinam Airways, an unlikely country to have an airline, and whether or not a country with a gross domestic product of $2.4b should have (or needs) an airline of its own.

For nations large and small, rich and poor, civil aviation has been a vital tool to connect citizens with the world on its own terms.

"International aviation is thus not just another problem in a changing economic system, though it is that; international civil aviation is a serious problem in international relations, affecting the way governments view one another, the way individual citizens view their own foreign countries, and in a variety of direct and indirect connections and the security arrangements by which we live." - Andreas Lowenfeld

That quote, from a 1975 article in Foreign Affairs Magazine, inspired my senior thesis in College. The title was Aviation as Ambassador, not coincidentally the same name of the first post on FlightBlogger in 2007.

The historical Western global leadership in civil aviation in the first half of the last century has served as an example to all nations as a symbol of modernization and progress.

Civil aircraft (in both their development and operation) are symbols of power and prestige for nations. We need only look to the Boeing 747 and Airbus A380 to see the impact these aircraft have had on the identity of the nations that operate them.

For the United States, the same year Charles Lindbergh flew non-stop from New York to Paris in 1927 (contrary to popular belief he was not the first to cross the Atlantic) Pan American Airways came into being as an airmail service between the Florida Keys and Havana, Cuba. With the relative protection of the US Government, which saw Pan Am as the "chosen instrument" for US travel abroad, the airline quickly became America's flag carrier. Later on in the century, Pan Am would become Boeing's launch customer for the 747.

The idea of a flag carrier in the US is somewhat outmoded though. Pan Am folded in 1991 and TWA in 2001 (merging with American Airlines). Today, we have Delta/Northwest, United, Continental, American and US Airways - so the idea of one airline representing the US abroad is foreign to Americans.

In the case of the US today, international air travel is a representation of the free market forces that enable such competition, multiple airlines competing with one another vying for the attention of the consumer. In the absence of one flag carrier, we find the identity of the United States. Though protectionist tendencies still abound with restrictions on foreign ownership and cabotage.

These same political motivations created (and protected) the airlines of the world's largest economies; Pan Am (defunct), Lufthansa, British Airways, Air France and others are also found in smaller countries like Surinam.

For airlines like Surinam Airways, which operates a fleet of two aircraft, connecting its citizens to the world is an important representation of self-determination and modernization; profitability and operational effectiveness often falls by the wayside.

There are two sides to this coin. A national airline can carry both a positive and negative message about a country. As an extension of national identity, airlines can become a liability  in the event of an accident. Accident prone airlines like Garuda and other Indonesian carriers have found themselves blacklisted by the EU, unable to serve Europe causing  significant damage to the economic health of the nation.

Surinam Airways was founded in 1955 and became the national carrier when Surinam gained independence from the Netherlands in 1975. Today, the airline operates one Boeing 747-300 and McDonnell Douglas MD-82, both built in 1986 for long haul and regional routes respectively serving seven destinations in Europe, North America, the Carribean and South America.

The airline is as much a tool of economic development and tourism as much as it is a diplomatic symbol of Surinam touching down in countries around the world.

For the nations that don't hold significant economic sway, aviation is ambassador.

Photo credit: Pascalg_1991/Creative Commons License

American Airlines has signed a purchase agreement with Boeing for up to 100 787-9 Dreamliners. The initial order is for 42 aircraft with rights for an additional 58.

American Airlines Takes Major Fleet Renewal Step by Announcing Plans to Acquire Boeing 787-9 Dreamliners
FORT WORTH, Texas, Oct. 15 /PRNewswire-FirstCall/ -- American Airlines, Inc., a wholly-owned subsidiary of AMR Corporation (NYSE: AMR), announced today that it has entered into a purchase agreement with Boeing (NYSE: BA) under which American intends to acquire an initial 42 Boeing 787-9 Dreamliners scheduled for delivery beginning in 2012 and ending in 2018, with the right to purchase up to 58 additional 787s that may be scheduled for delivery beginning in 2015 and ending in 2020. The purchase of the initial 42 787-9 aircraft is subject to certain contingency provisions, as more fully described below.

Key provision:

The 787 purchase agreement contains provisions that would allow American to choose not to acquire some or all of the 42 initial 787s if it has not reached a satisfactory agreement with its pilots union to operate the aircraft. American must notify Boeing of its intent to purchase a 787 at least 18 months prior to its scheduled delivery date, with the first scheduled delivery date occurring in September 2012.

UPDATE 12:22 PM: If all 42 787-9s taken up by American Airlines, it would make the order the largest for a North American airline. ILFC currently holds a firm order for 74 787s.

Sixteen months ago, I prematurely reported on an American Airlines order for 100 787s that was supposed to happen at the Paris Air Show. I was slightly off, but better early than never?

A September 2012 delivery would make American a very early recipient for the -9 variant of the 787. As of April, launch customer Air New Zealand was expecting its first -9 in early 2012 when Boeing last revised its delivery schedule. With the ongoing strike and potential slip of first delivery to 2010 for ANA, it remains an open question whether or not American has received a delivery timeline based on a revised schedule or the existing one which targets 25 deliveries in 2009.

This is a breaking story and will be updated.
Image courtesy American Airlines

Every once in a while I come across an item that just needs some attention. Take, for example, this nice report about Hungarian low cost carrier Wizz Air starting flights between London and cities in Ukraine.

Wizz Air is launching new services from London Luton Airport to two popular destinations in Ukraine. The low-cost carrier has confirmed that it will open up a new link between the UK base and western city of Lviv, operating the service four times a week from January 15.

Both connections will be served by the carrier's new fleet of energy-efficient Airbus A380 aircraft. One-way fares start from just £29, excluding air passenger duty charges.

Good luck getting an A380 off the ground at Luton. Man, people are going to be peeved when they see an A320 pull up.