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news: March 2011 Archives

Lufthansa to Use Airbus A380 to Miami

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 As per a trusted source, Lufthansa will be deploying Airbus A380 aircraft on its flights to Miami, from Frankfurt, effective 10 June.
 The flight is expected to be LH462, departing Frankfurt at 0945.
 Final flight details will be uploaded to the GDS today, accordingly to which this post will be updated.

Qantas Group to Reallocate Capacity and Retire Planes

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 In response to the rising fuel prices and drop of demand due to natural disasters, the Qantas group has decided to reallocate some of its capacity and retire some of its aircraft earlier than planned.

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 With the newly announced plan, the airline will be reducing Qantas and Jetstar's second half domestic capacity growth from 14% to 8% and international capacity growth from 10% to 7%.

 Jetstar will be suspending four weekly services between Japan and Australia, and will also be reducing services to Christchurch.

 Qantas will downgrade its Boeing 747 services to Tokyo to Airbus A330s. It is believed that the extra A330 is coming from the Brisbane - Singapore service which is being upgraded to a Boeing 747 service. Qantas will also be suspending service between Perth and Tokyo from 8 May, which presently operates thrice weekly and is code-shared with Japan Airlines.

 The airline will retire two Boeing 767 aircraft earlier than planned.

 The airline has estimated that the natural disasters which hit Australia, New Zealand and Japan will cost the airline AUD140 million in the year's second half. This includes the cost of Japan earthquake and tsunami at AUD 45 million.

 The airline has hedged 96% percent of its fuel for the rest of the financial year at a worst-case scenario crude oil price of USD99.48 per barrel.

 The airline also stated that it would be reducing "management headcount", but did not reveal an exact figure. The airline will act to reduce its employees' annual and long-leave balances.

 While it made sense in the '90s for some airlines to keep their older generation, lower finance cost aircraft, this is no longer the case in a situation where consumers are demanding lower prices and cost efficiency rather than finance costs are driving fleet planning decisions.

A Market of Growth : China - Sri Lanka - Analysis

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 While China and Sri Lanka, as nations, have had a long ranging relationship in many fronts from religion to trade - it is only in 2005, when air links between the two countries began. And it has grown exponentially since then, with a lot of potential for growth.

 The first air link between mainland China and Sri Lanka was initiated by SriLankan Airlines in 2005, when it was still under Emirates management. The carrier's first route into China, UL888, was a link between the two capitals - Colombo and Beijing. The flight operated three times a week on board Airbus A330-200 aircraft. What began there has grown remarkably in the recent years, specially after the end of Sri Lanka's war with terrorists.

 The present air services between China and Sri Lanka look as following, including new routes planned to begin.;


Airline Route Frequency* Equipment Weekly Oneway Seats Remarks
China Eastern Kunming - Colombo 3 weekly B.737 402
Hainan Airlines Beijing - Colombo 4 weekly A330 988 To begin 1 Aug 2011. Via BKK.
SriLankan Colombo - Beijing 3 weekly A330 861 Via BKK.
SriLankan Colombo - Guangzhou 3 weekly EQV 915 Via BKK.
SriLankan Colombo - Shanghai 4 weekly A330 1148 Via BKK.

 Remarkably, SriLankan - the largest carrier between the two markets -, makes the best use of its 5th freedom rights out of Bangkok and routes all of its flights to China via Bangkok. The carrier reportedly gets a high demand for its China flights and has also made sure to connect all of its Chinese flights with its Subcontinent flight banks, both ways.

 The launch of Hainan Airlines' services too is an indicator of the growth this market is set to receive. China Eastern too has been mulling additional flights into Sri Lanka with new flights from Shanghai.
 With a 46.2% increase in tourist arrivals to Sri Lanka in this January alone, things in this market are sure set to be interesting !

Emirates Receives Approval for Second Vienna Daily

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 Emirates Airline has received approval from Austria to operate its second daily flight into Vienna, which was previously blocked by the Austrian regulatory authorities.
 The flights were blocked following comments by Austrian Airlines Chairman Mr. Peter Malanik that EK is a state project with cheap labor competing against Austrian Airlines. The Chairman had stated that the airline had been forced to cancel flights to Mauritius and Australia because of competition from Emirates and accused Emirates of trying to "kill" Austrian's link to Bangkok.

"The situation is similar to the production of T-shirts using child labour. AUA would need to hire 1,000 staff from Bangladesh immediately to be able to compete. Do we want that? Certainly not," he stated.

 Emirates had planned to increase flights to Vienna from 7 to 13 from this 27th of March.

 As of today the airline has been able to regain permission to operate the flight. An Emirates spokesperson stated to this website that
"Emirates currently operates a daily flight to Vienna. We can confirm that our 6 additional weekly flights will operate as planned from this Sunday, 27th March, having received all the necessary permissions from Austrian authorities. We would like to thank the UAE government, the Austrian authorities and our other stakeholders who have helped to resolve this issue."

 In this author's personal opinion, the advent pf new airline strategies have changed the competitive landscape of our industry. The time for artificial rules and regulations have passed and airlines must learn to reshape themselves and compete effectively with the competition, rather than protecting themselves, as this would best benefit the industry.

Qatar Airways to Terminate London Gatwick Service

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 Qatar Airways, effective 1st June 2011, will terminate its flights to London Gatwick. The airline presently operates daily to the airport. The excess capacity will be utilized to increase flights to Manchester to twice daily.
 The airline will instead focus its London strategy around Heathrow airport, where it flies four times a day. This will leave Emirates as the sole Gulf carrier operating to London Gatwick, with its three daily flights.
 The Gatwick route is one of Qatar's worst performing, with average loads reportedly ranging between 50%-60% and with a lower yield.
 Gatwick is the fifth airport to which Qatar has terminated service since its second incarnation in 1997, with the rest being Nagpur, Newark, Sharjah and Yangon.

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