Monthly Archive for November, 2010

Hawaiian Loves the A330

Published
by
Dan Webb
on November 30, 2010
in Hawaiian
. 1 Comment

Well, I’m just assuming they do, since the carrier announced yesterday that it would be ordering six additional A330-200s that will begin arriving in 2012. I found it really interesting how Hawaiian’s A330 plans have evolved over the past three years, so lets’ review:

Just about three years ago, Hawaiian signed a memorandum of understanding with Airbus for six A330-200s, with deliveries beginning in 2012. Six A350-800s are also part of the order in addition to six purchase rights for each of the aircraft. The MoU is then converted to a purchase agreement a couple of months later in February 2008. The airline says at the time that it will “will move to secure additional aircraft in the leasing market for entry into service between 2009 and 2012.”

In October 2008, Hawaiian announces that it has entered into an agreement with AWAS to lease two A330-200s that will be delivered in the first and second quarters of 2011. (Also worthy of note – this press release says the A332 will seat 298 passengers, seven less than previously announced.) The A330 will now arrive a year earlier than originally announced.

Then, two weeks later, Hawaiian says it has formed a lease agreement with CIT for an additional A330-200 that will be delivered in 2010. The press release also notes that one of the AWAS aircraft will be delivered in 2010, while it was originally announced that both would come in 2011.

Hawaiian then announces further adjustments to its delivery schedule in March of this year, when the carrier says it has exercised one of its six purchase options to acquire another aircraft in the second quarter of 2011. Also interesting is that the three leased aircraft are now all scheduled for 2010 delivery.

In August, Hawaiian makes yet another change, and moves one of its orders from the second quarter of 2013 to the fourth quarter of 2011. The carrier will now receive two A330s in 2011 in the second and fourth quarters. Meanwhile, the carrier will now take one aircraft each in the first and second quarters of 2013.

And that brings us to yesterday’s announcement, which I think makes a whole lot of sense, especially when looked at in the context of 767 retirements. Fortunately, this recent Hawaiian investor presentation has that information (slide 23 in the PDF). So I took the 767 and A330 schedules from that presentation and then compared it to the schedule announced yesterday:

So before the announcement – over the next six years Hawaiian’s fleet would actually shrink as 767 retirements outpaced A330 deliveries. Now the fleet will only grow by one aircraft. And if we break down the numbers by year – this move makes even more sense to me. For example, previously Hawaiian would be shrinking its fleet by two in 2015, but it’s now it will be flat. And in 2013 the fleet was originally supposed to shrink by three aircraft, but now it will only be a net loss of two airplanes. I’d also guess this move makes sense as earlier this year Hawaiian lost one 2013 delivery when it moved to 2011.

The A330 could be able to open up some opportunities for new destinations as well. Take this slide from that same Hawaiian presentation, which has a range chart produced by Airbus that compares the A330 to the 767. Hawaiian CFO Peter Ingram did warn that “anyone who has been around the indsutry knows that all the airplane manufacturers are notorious for expanding the ranges that aircraft can serve by making certain asumptiosn of what it can and can’t do,” but did note that in general the A330 does create a “considerable expansion of our opportunities.”

Anyway, Hawaiian really seems to like this aircraft, which allows it to carry higher payloads at greater ranges. Management has said that passengers enjoy flying on the A330, and that the aircraft is also good for cargo.

We’ll see if any more changes will be made. Hawaiian can tinker with its existing 767s, something it has done before. Hawaiian also says that it has four purchase rights for more A330s, and the leasing market is also available. Meanwhile, Hawaiian is still scheduled to begin receiving A350s in 2017, so we’ll see how that all pans out.

Random Question of the Day – Metal Neutrality

Published
by
Dan Webb
on November 29, 2010
in Uncategorized
. 6 Comments

So here’s a random thought I’ve been having lately about alliances, and more specifically, metal neutrality, where the airlines don’t care what airlines you fly with, as long as its within a joint venture, which all three alliances now have across the Atlantic. Why does this matter?

Basically, airlines say that this is needed for alliances to really work. For example, before they had immunity, American and British Airways were both members of oneworld, but were still competing with each other on routes like JFK-Heathrow. Now, with a joint venture that has the two airlines sharing revneues, that competition is eliminated.

Anyway – onto my question. When airlines enter into a joint venture, how much pressure and/or need is there for the airlines to achieve harmony among their product offerings? For example, Delta is making a big push to install full-flat beds on many of its international aircraft with BusinessElite cabins, while Air France’s new business class seat is not fully flat. Meanwhile, Air France offers premium economy while Delta doesn’t.

Just my random thought/question of the day.

Delta to Add GoGo to Larger RJs

Published
by
Dan Webb
on November 29, 2010
in Delta
. 0 Comments

Some exciting news from Fort Widget this morning – Delta will be installing GoGo inflight Wi-Fi service on its larger regional jets! The airline currently has 549 mainline domestic aircraft equipped with the service – and will be adding it to 223 CRJ-700s/900s and Embraer 175s. Installations will start in January and be completed by the end of 2011.

Delta’s commitment to Wi-Fi as a whole is interesting, considering that its network peers have only installed GoGo on a limited basis. While articles have been coming out for awhile about how usage rates are a bit low for Wi-Fi – clearly the airline sees potential in inflight Wi-Fi.

I can’t say Delta’s move here is all that shocking since it equipped its mainline fleet so quickly, and it has made other moves to enhance its service on the larger RJs, such as rolling out first class across the fleet and upgrading in-flight service. Meanwhile the airline has also committed to having a premium cabin on all flights over 750 miles.

Basically – it would appear that Delta wants to eliminate as many differences as possible between a large regional jet and a mainline aircraft. I would have to assume that such a move gives Delta more flexibility with its scheduling, as it can adjust capacity to demand, and worry less about passengers consciously avoiding the larger regional jets. Of course, that requires customers to become aware of Delta’s efforts in this area for it to affect their booking decision.

Anyway, smart move, I think, and it is significant to see a legacy carrier install a form of entertainment/connectivity onboard its regional aircraft.

One Six Right is Now on Hulu!

Published
by
Dan Webb
on November 24, 2010
in Uncategorized
. 3 Comments

I’ll have an airline-related post later today, but I wanted to share that one of my favorite movies of all time – One Six Right – is now on Hulu (thanks to my friend Jon Heckman for noticing it). While I usually write about the airlines, I also have an interest in general aviation and this movie helped develop that interest in the first place. The film focuses on Van Nuys Airport and uses that as a backdrop for some great aviation history and also a discussion on the importance of GA in our country. And, if you don’t care about any of that stuff, the footage is just breathtaking.

Annoyware, I think purchasing a copy is worthwhile, but now you can watch it for free on Hulu. There are a couple of commercials but nothing too intrusive.

DOT Not Ready to Make a Decision on Delta-V

Published
by
Dan Webb
on November 23, 2010
in Delta, V Australia and Virgin Blue
. 1 Comment

It’s been a few months since I’ve written about the proposed joint venture between Delta and Virgin Blue (or Delta-V for short). In September, the DOT tentatively denied the application for immunity, something the Aussies weren’t too happy about. Delta and Virgin, did, however, have the chance to reply to the order.

After reviewing the information supplied by the carriers, the DOT still isn’t ready to approve the deal, saying that Delta and Virgin need to give them more information (quoted from the DOT order):

  1. Updated and finalized written alliance agreements incorporating the proposed commercial changes and capacity commitments;
  2. A report on the Navitaire programming and testing process and the date on which the upgrade was completed;
  3. A detailed status report on any third-country regulatory or other approvals required to implement the revised alliance agreements or an explanation of why approvals are not required; and
  4. At such time as the Applicants submit the above information, they should also provide the latest available passenger and fare data, with additional explanation, to substantiate their assessment that market conditions have stabilized.

Just to provide some background on that third request – further work is needed for Delta and Virgin’s systems to be completely compatible. According to the airlines, “the only compatibility issue is with Virgin Blue’s short haul network reservation system, which is hosted by Navitaire.” They are working on this issue and plan to have a solution implemented in February.

Anyway – I do hope this gets approved eventually. While the number of players in the transpacific market would be reduced from four to three – it’s hard to judge if the current situation is sustainable. Allowing these two new entrants into this sector would create a stronger competitor against United and Qantas

Southwest Makes More Progress on the -800

Published
by
Dan Webb
on November 22, 2010
in Southwest
. 3 Comments

I’m playing a bit of catch-up today since a few exams last week forced me to focus a bit less on the airline stuff.

Anyway – Southwest made more progress on adding the Boeing 737-800 to its fleet last week, with its flight attendants, represented by the Transport Workers Union 556, ratified a tentative agreement that the union reached with the company earlier this year that adds the -800 to their collective bargaining agreement.

All of Southwest’s flights are currently staffed with three flight attendants, while the -800 would require a fourth due to its larger size.

The agreement was overwhelmingly approved – with 84.6% of those flight attendants cast ballots approving the agreement. Turnout seemed a little bit low, with only 38.7% of eligible voters casting a ballot, according to the TWU 556′s homepage.

But more needs to be done for Southwest to add the additional type to its fleet. First, Southwest says that it is still waiting for a vote on a TA with the company’s pilots, represented by SWAPA. The airline also says it has yet to complete evaluating the type.

Southwest hasn’t revealed much in terms of details about any potential -800 order, but in August Mike Van de Ven, Southwest’s COO, wrote in a blog post that the airline “would need to make a final decision by December 1 to begin accepting deliveries by early 2012.”

United to Return to FLL and PBI

Published
by
Dan Webb
on November 18, 2010
in Continental and United
. 2 Comments

United announced new service to Fort Lauderdale and Palm Beach yesterday, which would mark the airline’s return to the two cities – sort of.

United ended Ted flights to both of these cities in September 2008, so this is more of a restoration than anything. Then again, since this was announced post-merger, United’s already there with Continental’s service.

Anyway, Fort Lauderdale will receive double-daily flights to O’Hare with Continental 737-800s,  and one flight to Denver with 737-900ERs. Meanwehile, Palm Beach will see a single 737-900ER flight to Chicago.

Both stations used to have Dulles service as well (though Palm Beach’s IAD flight was cut before the station was closed).

Anyway, this makes sense. Back in 2008 it probably didn’t make sense for United to keep these stations open, but now the environment is a bit better, and plus the existing Continental operations are utilized.

Meanwhile, I guess this makes some more attractive connections for those Gulfstream flights Continental operates out of PBI and FLL.

Thoughts on Delta’s BOS-CDG Flight

Published
by
Dan Webb
on November 17, 2010
in Air France and Delta
. 6 Comments

Delta announced some adjustments for summer 2011 flying yesterday, and I wanted to focus on one interesting addition – Boston to Paris with a 757-200. With this change there will be three Skyteam carrier flights between the cities during the peak season, as Air France is currently scheduled to operate two flights this summer (747-400 and A340-300).

I’m completely speculating here, but I think a move like this one shows the benefits of joint ventures that are made possible with anti-trust immunity, where airline partners can coordinate their schedules.

Here’s my guess – Air France was looking to add a bit more capacity, but the smallest aircraft they can use is an A330-200, which is probably a bit too big. Delta, however, can provide a smaller 757-200 that can operate on the route more economically.

I find it interesting how the BOS-CDG capacity will ramp up this year. In the winter, there’s one Air France flight, operated with an A340-300. In February, a 747-400 gets mixed in a  few times per week, and it eventually becomes daily at the end of March. Delta’s flight begins right around the same time. Then, in June, the second Air France flight is added. So I would guess that Delta’s flight allows SkyTeam to better adjust capacity to demand.

Finally, let’s look at the summer schedule:

So, Delta adds another flight a bit later on the outbound, arriving almost two hours later the next day than the first Air France flight. Some passengers flying to Paris could possibly prefer this, and I’d guess it might make some more convenient layovers in Paris. Meanwhile, on the return, Delta now adds a flight a couple of hours earlier than Air France’s.

Anyway – Boston will have some nice international flying from SkyTeam this year, with service to London on Delta, Paris on Delta and Air France, Amsterdam on Delta, and Rome on Alitalia.

This is me wondering aloud here – will American keep its seasonal BOS-CDG service now with this extra capacity?

I hope to write about some of the other Delta moves later, but for now it’s back to studying for exams…

EDIT: Changed post at 3:22 on 11/17 to fix an arrival time in the schedule.

Airk Air Looks to Expand American Flying

Published
by
Dan Webb
on November 16, 2010
in Arik Air
. 0 Comments

Arik Air of Nigeria looks to expand its current flights to the United States, according to a filing with the Department of Transportation. The airline is looking to launch service from Lagos to Houston and New York by mid-2011. Both routes are slated to be operated three times a week with A330-200 or A340-500 aircraft.

Now you might be wondering about this one, since Arik Air A340-500s can already be seen at JFK a few times per week. Airk Air doesn’t have authority yet to fly to the US on their own, so they have leased these A345s to Hi Fly of Portugal (formerly Air Luxor). Arik then operates the aircraft under a wet lease agreement with Arik,.

The one that I find really interesting, however, is the proposed service between Houston and Lagos, because in June Continental announced that it would launch daily service on the route in November 2011 using the 787s it would be receiving that year. But Boeing has had some additional issues with the 787 since then, and Continental/United didn’t provide much in terms of detail during their earnings call a couple of weeks ago.

I’ve asked Continental if there were any updates on the Houston-Lagos route, but I haven’t heard anything. But it would be fun to watch the two airlines compete on this one.

Delta Starts New Florida Routes from Raleigh This Saturday

Published
by
Dan Webb
on November 15, 2010
in Uncategorized
. 2 Comments

I’ve written about Delta’s interesting moves in Raleigh before. The carrier started regional flights to Orlando, Tampa, Columbus, St. Louis, and Hartford earlier this month. (Delta flew to Orlando and Tampa in the past but eliminated service in 2008.) Existing service to Minneapolis, New York (JFK) and Boston was also boosted.

But it also appears that after the new routes were announced in August that Delta later slipped in a couple of new routes. Saturday-only service to Ft. Myers and Miami will begin later this week. Both flights will be operated with Pinnacle CRJ-200s. It appears that the service is seasonal and run through April 30th, though that’s still a little far out.

No one is currently flying to Ft. Myers from Raleigh, while American has a few flights a day to Miami.

Now, I realize that 50-seaters once a week does not represent a huge expansion of capacity, but I’m really interested in what Delta is doing in Raleigh – having the normal service to hubs, while carefully selecting a few O&D markets to serve with RJs. I wonder if Raleigh is a unique case, of Delta is considering doing something similar out of other medium-sized cities. (Indianapolis is sort of similar, though that operation was acquired from Northwest.)

And for the dorks out there who are like me and care about this thing – the Raleigh flights are currently the only Delta Connection service at Miami and Ft Myers.

American Unveils a New Special Livery, Hawaiian Gets its Latest A330

Published
by
Dan Webb
on November 12, 2010
in American and Hawaiian
. 3 Comments

Apologies for a lack of blogging over the past few days. School has been picking up of late, and then yesterday one of my e-mail accounts was hacked from China and then began sending out spam to my contacts list. Awesome.

Fortunately, in the past 24 hours I got some sweet photos from a couple of airlines that I thought were worth sharing.

First off, American unveiled a special livery at JFK dedicated to the troops. The 767-200 is entitled Flagship Independence, and joins American’s other yellow-ribbon aircraft: Flagship Liberty (737-800), Flagship Freedom (757-200), and “and three American Eagle planes that are often utilized for special charter flights for veterans, wounded military and first responders,” says American.

Meanwhile, Hawaiian Airlines received its third A330-200 aircraft yesterday, it’s 81st birthday after  16.5 hour flight from Toulouse to Honolulu. The A330, named ‘Iwakeli‘i, will enter service on December 9. ‘Iwakeli‘i is the Hawaiian name for Cassiopeia. “All of
Hawaiian’s new A330s are being named for a star or constellation used by Polynesian voyagers for celestial navigation,” says the airline in a press release.