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Is there life left in the triangle?

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Triangular routes were a popular medium for many airlines some time back. It allowed them to serve two airports, most often in two different conutries - but are only a few hundred miles apart - by a single flight.
It was perceived that this will help the airline cut down on the expenses, for you will serve two points with just a little bit of extra fuel. But as the industry evolved, and the fuel price rose, this perception proved wrong.
The double landing charges, handling costs and the other expenditure outdid the saving in terms of fuel cost. And the capacity allocation for the two destinations and hence the yield management turned out to be a nightmare for some airlines.
Now we are seeing most airlines delinking their triangular flights, and instead using terminator flights with smaller capacity for both stations. Surely, this will aid during a high fuel environment. However, you also run with the risk of a higher unit cost, if fuel prices, ever, come down sunstantially.
How long will we see the triangles? Only the fuel price will tell.


Air Seychelles' new managing owner, Etihad Airways, has opted to provide the island nation airline with additional aircraft capacity as the cooperation between the two evolves further.
Under the new arrangement, some routes presently operated by Air Seychelles will see Etihad aircraft being operated with the former's callsign, effective 1st May. While this could also hint at a possible maintenance related need at Air Seychelles, it could well also be the gradual beginning of a refleeting programme at the airline.
The routes presently planned to be operated by Etihad, under the Air Seychelles code, are as follows
- Seychelles - Abu Dhabi, thrice weekly, to be operated by Airbus A330-200
- Seychelles - Johannesburg, twice weekly, to be operated by Airbus A330-200
- Seychelles - Mauritius, twice weekly, to be operated by Airbus A320
The GDSs are presently showing some contradicting data on the continuation of this service after May, and we will have to wait for a few more days to find this out accurately. With a more modern fleet, and with the aim of achieving cost synergies through fleet commonality, it is quite possible that Etihad may look into replacing Air Seychelles fleet with the same aircraft types that it uses. Is this the beginning of a such move? Let us know in the comments.

In an interesting turn of events, American Airlines has revealed on the GDS that it will be deploying Boeing 777 aircraft twice daily, on the Miami - Los Angeles service, from April onwards.
The new schedule is as follows..
AA299 MIA0810 - 1025LAX 772 D
AA271 MIA1115 - 1330LAX 772 D

AA1520 LAX1155 - 2020MIA 772 D
AA252 LAX1415 - 2210MIA 772 D
While it could simply be due to utilization concerns - June is usually not a month where AA deploys a 777 on the MIA-LAX route. Also interesting to note is that American will be introducing a Miami - Seattle flight from the same date, while it will also upgrade one of its Miami - London Heathrow flights to a 777.
In the event that the 777 becomes a regular stay (either seasonally or year round) on the MIA-LAX route, it could signal a step change in American's strategy. The deployment of a widebody, earlier than usual, on a trunk domestic route out of its key hubs - at the same time making a number of capacity improvements from the same hub - could indicate both a revitalised focus on Miami as a major AA hub as well as an attempt to increase its yield in a now very disciplined (capacity-wise) market.
This, together with US Airways' purchase of multiple web domains containing 'American Airlines' could tell a very interesting tale. But only the time can tell us for sure. Let us all wait and see...

Southend's Global Ambitions

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 No matter whether you consider Southend (IATA: SEN) as a 'London airport' or not - the reborn airport has made some significant progress recently. Once the third busiest airport in London with frequent large aircraft, the airport in Essex, had long remained without much activity. However, following the Stobart Air Group's purchase of the airport in 2008 - the airport appears to have received a fresh lease of life. With easyJet planning to begin a base at the airport in April - the latest airline to start operations from the airport is AerLingus Regional.


 Operated by AerArann (which in turn is soon set to become exclusively AerLingus Regional), the service will connect Dublin with Southend three times a day. The service operated with ATR 42 aircraft appears to effectively have one aircraft based at Southend for operating the route.
 The schedule for the service is listed below.
EI3301 SEN 0700 - 0845 DUB AT4 D
EI3302 DUB 0915 - 1050 SEN AT4 D

EI3305 SEN 1255 - 1440 DUB AT4 D
EI3306 DUB 1510 - 1645 SEN AT4 D

EI3307 SEN 1710 - 1855 DUB AT4 D
EI3308 DUB 1920 - 2055 SEN AT4 D

 The new service is well marketed by the airport as a link that provides easy connections to the USA. The Customs pre-clearance facilities in Ireland seems to have come handy! The services are also well timed for business passengers - providing them with an alternate option to the congested main airports of London.
 It is also worth noting that AerArann, is partially owned by Stobart Group, the parent company of the same group which owns the airport. This seems to have helped the airport to also secure a service to Waterford operated by AerArann.
 The airport is next target is to achieve a two million passenger throughput by the year 2020. The ambitions of Southend are also helped by some quick transit options for visiting the London city - which includes a train station providing quick connections to the London city. The airport's tagline of 'simply easier' too seems to be promoting the less congested nature of the airport.
 Nevertheless, becoming a 'preferred' airport for London may well take a long time for the airport as it faces much established and more financially powerful competitors on its way. And it is quite likely that it will be at least a decade away before the airport can secure its first scheduled inter-continental flight - although that probably is not in the airport's plans either.
 Southend certainly has a long way to go - but taking one step at a time - it seems to be preparing to regain its past glory.

Admittedly or not, it is clear that most of the big name LCCs today have adopted some level of connection potential to their networks. It is too significant a revenue stream to be ignored, and implementing a such system - specially internationally - is quite easy. Just schedule the majority of your westbound flights to operate during one half of the day and the eastbound flights during the other half. And you've easily got a basic connectivity potential.
This emerging trend is rapidly closing the ever minimizing gap between full service and low cost carriers.
The connectivity certainly increases the revenue potential for any LCC - and not going to a large scale connectivity oriented hub structure means that they could still keep the costs low. Technological improvements have added the ability of booking connectivity pairs to most reservation systems. The end result is that not only has the connectivy business become more lucrative, but quite easy to implement too.
The lower prices of a LCC connection makes it a better option to the price-conscious traveler; even if there is an extra step of booking two city pairs seperately.
This has opened more chances for those LCCs wishing to move upmarket, and the higher yields will only make that choice more attractive to many. The hybrid-ization of the LCC is not going to stop anytime soon. And the gap between the LCC and the FSC is fast closing.

Thai Smile to commence services on July

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 Thai Smile plans to conduct its first flight on 1st July, said Thai Airways in its annual report. Thai Smile is a new fully owned Low Cost Carrier subsidiary of Thai Airways.

Thai-Smile-A320.png
 The new LCC is expected to utilize the TG code, but will have a lower cost base than its parent. The new airline will likely be based at the Bangkok Suvarnabhumi airport, and not at the Bangkok Don Mueang Airport as previously stated.

What happens to Nok Air?

 Nok Air is a domestic only low cost airline in Thailand, of which a 49% stake (increased from the original 39%) is held by Thai Airways. Thai Smile will sit between the mission profiles of both Nok Air and Thai Airways.
 While Nok Air is a complete no frills carrier, Thai Smile will offer a two class service with some frills - essentially making it a hybrid carrier - while Thai Airways will offer a premium full suite of service. When it comes to the route network, Nok Air will be limited to Don Mueang airport and domestic services only, and Thai Smile will serve trunk domestic routes, as well as regional international routes.

Fleet
 Thai Smile will be operating a fleet of brand new Airbus A320 aircraft, while expanding into wide body aircraft too is not ruled out. The airline will acquire four aircraft within 2012, growing it to 6 in 2013, 8 in 2014, and stabilizing at 11 from 2015 - per the present plan.

Route Network
 According to the presently available information, the airline will begin with domestic services, but has earmarked a number of destinations to be launched internationally. These include Da Nang in Vietnam, Shenzen in China, Amedabad, Hyderabad and Kochi in India, Seoul in South Korea, Macau, Hong Kong, Singapore and Kuala Lumpur and Penang in Malaysia. Expansion of Thai Smile into a base in Phuket cannot be ruled out either.

 The trigger to change Thai's strategy has without a doubt been caused by the invasion of LCCs into Thai's market strongholds and in large part by Thai AirAsia. These latest changes see Thai Smile being positioned as a hybrid value carrier, rather than a pure LCC, and might even go head-to-head with Malaysia Airlines' new Sapphire operation at some point in the future.

Where else in Europe could Emirates fly to in 2012?

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 Emirates Airline today, is the largest Middle Eastern carrier flying into Europe. Even amidst rapid expansion by Qatar Airways and neighbouring Etihad Airways, Emirates' growth has been phenomenal. And it is this growth that has sparked furious reactions about the Dubai based airline from its European peers. Emirates already boasts an extensive route network into Europe. Where else could it expand in Europe?

Datei:Emirates b777-300er a6-ebm arp.jpg

 At present, Emirates operates to 26 destinations in Europe, which accounts for almost all of major European cities. The following map depicts the present European destination range of Emirates.

EK-EUR-W11-12.gif

 Emirates has already announced its plans to launch flights to Dublin, Ireland, this year while extra flights too have been announced to Paris and Venice. The airline will be upgrading capacity to Athens, Copenhagen, Dublin (yes, not a typo), Dusseldorf, Frankfurt, Larnaca, London, Malta, Manchester, Munich and Nice. Emirates is also due to take delivery of about 7 Airbus A380s and over 10 Boeing 777-300ERs this year.

 Where else in Europe could Emirates expand to?

Looking at the above map shows us some key European destinations that are still missing from the Emirates' map. These include

  • Barcelona
  • Berlin
  • Brussels
  • Edinburgh
  • Helsinki
  • Lisbon
  • Oslo
  • Stockholm
  • Warsaw
 While some secondary cities such as Belgrade and Budapest are missing from this list - Emirates can never realistically expect to serve these smaller cities with its all wide-body fleet. This gives Qatar Airways and Gulf Air an edge, which the Dubai Inc. appears to be trying tackle with flydubai.

Barcelona
 -When it comes to Europe, Barcelona must now be in the top of Emirates' list as a new destination to be added in 2012. The Spanish city is closely following on Madrid, and has proven to be a vibrant destination for many airlines. Qatar Airways is likely to increase its Barcelona flights very soon, and Emirates will be inclined to react. With its Madrid flight now well developed, it is only natural that Emirates takes its next attempt at conquering Barcelona.

Berlin
 -Berlin is another destination that Emirates has long wanted to serve - its first attempt being in 2000 with its then subsidiary SriLankan Airlines, on a Colombo - Dubai - Berlin flight which was code-shared by EK. However, unfortunately Emirates has become a victim of bilaterals in this case, and is unlikely to be able to serve Berlin anytime soon. The reason - it has already exceeded the number of allowed German destinations per the bilateral air service agreement between the Germany and the UAE  which means that it should give up one of its present German destinations in order to open a new one, which is something very unlikely to expect from Emirates. On a side note, Etihad made creative use of this opportunity to get AirBerlin, in which now it owns a 29% stake, to operate on the Berln - Abu Dhabi route.

Brussels
 -While one of the most politically important European cities, and is already served by Etihad, it is doubtful that Emirates will venture into Brussels very soon. A key factor for this is that there is little connectivity potential from South Asia - one of Emirates' strongest markets - to Brussels, while Africa - Brussels traffic flow is already well taken care of by Brussels Airlines. This is not to say that Brussels is nowhere in Emirates' wishlist - but rather that it has more important destinations to tap into before Brussels. Nevertheless, Emirates is known to make surprising moves and an announcement could come sooner than we expect - specially taking into account the weak coverage of both Brussels Airlines and Etihad in the Far East region and the fact that Emirates can leverage its already strong position in this region to develop the market. It could be high yielding too, with sustainable Business traffic flowing out of the Far East.

Edinburgh (UPDATE: Within hours of publishing this article, Emirates announced its second daily flight to Glasgow - which means that an Edinburgh launch is unlikely in the near horizon)
 -The only major UK city presently not served by Emirates, Edinburgh is definitely in EK's wish list. But when Emirates will decide to launch a flight to Edinburgh is a matter only the time will tell. This decision could be influenced by a number of reasons. Edinburgh has a rather short runway, and it could prove a challenge for a fully loaded Airbus A330 - the smallest in EK's fleet and the only suitable aircraft - on some days. And that very reason means that EK will not be able to upgrade the capacity for this route on its usual path of A330-200 >> 777-300ER >> A380. And in fact, will leave the route obsolete once Emirates phases out the A330s. Apart from that, if Emirates decides to add an extra daily flight to Glasgow - this could kill the route's potential too. Yet, Turkish Airlines has already announced that it intends to serve Edinburgh - and we could see a protective response from Emirates by launching flights before Turkish moves in. Adding capacity to Glasgow will be a lower cost option, while a competitor capturing a new market could prove a threat. Whether Emirates adds a second daily flight to Glasgow or launches flights to Edinburgh, should be clear within this year.

Helsinki
 -Although Emirates is keen to expand in Scandinavia, Helsinki is likely to be one of the places that will feature the last in Emirates' Scandinavian expansion. Finnair already has a stronghold in Asia markets while there is virtually no traffic between Finland and Africa. This makes Helsinki a rather unattractive choice for Emirates, at least for the moment.

Lisbon
 -Yet to receive any service from any Gulf carrier, Lisbon is unlikely to receive an Emirates service soon. With only a very little demand into Asia, and not high in yield - Lisbon must be at the very end of Emirates' wish list. However, there is a significant possibility that Qatar Airways might set its foot on the Portugese city. Also a possibility is a South American flight operating via Lisbon, with 5th freedom rights, by any of the three leading Mid East carriers.

Oslo
 -The Norwegian capital is certainly a point of interest for EK - and could likely come online in either 2012 or 2013. However, Oslo is likely to become Emirates' third Scandinavian destination rather than the second. Let's move on to the next.

Stockholm
 -The Swedish capital is certain to receive an Emirates service this year - and will likely become EK's second Scandinavian destination over Oslo. There is strong potential for Emirates at Stockholm and will be a real challenge to Qatar Airways.

Warsaw
 -The growing Polish capital is an omission from the Emirates network for the moment. However, things are likely to be different, soon. The success of Emirates' Prague route will determine the timing for a Warsaw route's launch. Warsaw is a route with too high a yield for flydubai and Emirates will likely not let Qatar to become the first mover into Warsaw. However, Warsaw does not appear to be an immediate priority for EK.


 Going by the above analysis, we can safely assume Emirates to launch flights to the following European cities in 2012 - ranked by priority.

  1. Barcelona - Daily flights with any aircraft from Airbus A330-200 to Airbus A340-500 to Boeing 777-200LR in size.
  2. Stockholm - Daily flights with very likely an Airbus A330-200.
  3. Brussels - If Brussels, is an article for 2012, it will obviously be a daily Airbus A330-200.
  4. Edinburgh - IF Emirates goes ahead. A daily Airbus A330-200.

Apart from these, I expect the following European cities to receive their second daily Emirates flight - Amsterdam, Madrid and also Glasgow if the Edinburgh launch does not take place. The following three cities will likely receive their third daily Emirates flight too -  Birmingham, Milan and Zurich. Moscow (Domodedovo) is set to be an exciting route this year, too - with the high probability of Emirates either upgrading one of the existing flights to an Airbus A380-800 or adds a third daily flight.

 Do you agree with these 'predictions' or think that I have missed something? Please leave a comment.
 Emirates has just added another flight to its growing third departure bank of Europe bound flights - albeit not daily. The new four weekly flight to Paris, adds to the carrier's already twice daily services to Charles De Gaulle. Operating with a Boeing 777-300ER, it will increase to five times weekly from 28th Oct onwards.

Datei:Emirates b777-300er a6-ebm arp.jpg

The schedule is below
EK071 DXB 0355 - 0905 CDG 77W 1357 (NEW)
EK073 DXB 0820 - 1330 CDG 388 D
EK075 DXB 1500 - 2010 CDG 77W D

EK072 CDG 1110 - 1910 DXB 77W 1357
EK074 CDG 1535 - 0015+1 DXB 388 D
EK076 CDG 2150 - 0620+1 DXB 77W D

 Emirates' emerging third daily European bank already features four flights to key European cities. These are
EK007 to London Heathrow, departing DXB at 0230
EK011 to London Gatwick, departing DXB at 0250
EK021 to Manchester, departing DXB at 0300
EK043 to Frankfurt, departing DXB at 0320

 It is only a matter of time when Emirates will add new flights to this bank, operating to possibly Birmingham, Milan, Rome, Zurich and more cities. These flights will be well fed from the traffic arriving from the rest of Emirates network, mainly originating out of South Asia.
 Connections for the return flights, which form the third daily European arrivals bank for the airline - between 1900 and 2000 local time in Dubai, are also taken care of with plenty of departures in the following departure bank.
 
Emirates now operates almost 50 daily flights to Europe, with the largest share still belonging to the 0700-0900 departure bank out of Dubai.

 Nevertheless, Emirates growth story is unlikely to take a rest any time soon and it is believed that Barcelona and Stockholm might be among the airline's next new stops in Europe. And with the addition of Qatar Airways' fifth daily flight to London Heathrow, it would not be surprising to see Emirates upgrade another of its daily Heathrow flights to an Airbus A380.

Scoot to Sydney and its impact on others

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SIA's new low cost unit Scoot today announced Sydney as its first destination. The airline will launch daily services to Sydney in mid 2012, and obviously with Boeing 777-200 aircraft. It could work well for Scoot if they build up the right network, and Scoot already has begun a promotion to give away two tickets on Premium Class of its first flight to Sydney.
What implications could this have on others ?

 By the first week of May 2012, scheduled capacity on the Singapore - Sydney route will be as below.

Airline Daily Flights A/C Mix
British Airways 1 (from/to LHR) 1x747-400
Qantas Airways 3 1x747-400, 1xA330-300, 1xA380-800
Singapore Airlines 4 1x777-200, 1x777-300, 2xA380-800

 With this set of traffic, Qantas Airways seems to be the airline that is set to lose the most. However, Scoot's own parent Singapore Airlines will clearly get hurt in their yields if they continue the same aircraft mix after Scoot's entry.
 While Scoot might have chosen Sydney as their first destination owing to the fact that AirAsia X does not fly there, this move is very unlikely to have a significant impact on AirAsia X for the foreseeable future. AirAsia X's (and AirAsia's) larger network gives it the edge to profitably face this challenge by focusing on the areas where it already has a strong foothold. Sydney is still very much a premium market compared to elsewhere in Australia and the low fares catchment could be smaller.
 Even if SIA might have hoped for it, the effect on Emirates from this move would be close to zero, unless Scoot launches flights to UK, Italy or Lebanon any time soon.
 One has to wonder whether this means SIA has shoot on its own foot. But it really is not, as Scoot will achieve SIA's target on scaring away the competitors. On a strategical level, it's a mixed move. But they could have done a lot better.

SpiceJet Adds Another Q400, Operation Analysed

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 SpiceJet is planning to bring another Dash 8 Q400 aircraft to its fleet operation by 6th October, and will be launching a range of new flights using the aircraft. Having placed an order with Bombardier for 15 Dash 8 - Q400s in November 2010, the airline has already taken delivery of five of the type. This particular aircraft is likely to be VT-SUF, cn 4381, and will be the sixth of the type to join the fleet.

Photo by Malcom Bezzina

 The planned weekly rotation plan for this aircraft, per The Networker's estimate is as following.

1: SG1011 HYD 0635 - 0905 TRV D
2: SG1261 TRV 0925 - 1100 MAA D
3. SG3221 MAA 1120 - 1245 COK x26
3.b. SG1261 MAA 1120 - 1245 HYD 26
4. SG3222 COK 1310 - 1440 MAA x26
5. SG1261 MAA 1500 - 1625 HYD x26
6. SG1262 HYD 1655 - 1820 MAA D
7. SG1262 MAA 1845 - 2020 TRV D
8. SG1012 TRV 2045 - 2315 HYD D

(Please note that aircraft interchanges are possible)

 On an average day, the aircraft will be operating up to eight sectors, while on Tuesdays and Saturdays it will be operating six sectors per day.
 The new routes to be launched, effective 6th Oct, is as follow.

Hyderabad - Thiruvananthapuram - Hyderabad : Daily
Chennai - Hyderabad: Five times per week
Thiruvananthapuram - Chennai - Hyderabad : Twice per week
Hyderabad - Chennai - Thiruvananthapuram : Daily
Chennai - Kochi - Chennai : Five times per week

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