Saturday, July 22, 2017

Thai Airways announces Vienna nonstop

Thai Airways has officially announced that it will be launching new nonstop services to VIE-Vienna, Austria effective 16NOV17. Flights shall be operated 4 times per week using a 292 seater B777-200ER. 

The schedule is as follows:

Days: 1/4/6/7

TG 936 Dep BKK 0130 Arr VIE 0700
TG 937 Dep VIE 1330 Arr BKK 0520+1

In 2016, the P2P demand between BKK and VIE was 114,000 pax and 3 airlines operate this sector nonstop i.e. Austrian, Eva Air and now Thai Airways. 

Friday, July 21, 2017

Sydney increased by Qatar Airways to double daily nonstop

Qatar Airways has officially published on the GDS system that it shall be increasing its presence in Australia with the addition of a new second daily nonstop service to Sydney airport from Doha. This new flight will extend onwards to the capital city i.e. CBR-Canberra using a Boeing 777-300ER. 

The new flight will be operated effective 12FEB18 and the schedule is as follows:

Days: Daily
Aircraft: B777-300ER

QR 906 Dep DOH 0810 Arr SYD 0615+1
QR 906 Dep SYD 0725 Arr CBR 0825

QR 907 Dep CBR 1345 Arr SYD 1445
QR 907 Dep SYD 1555 Arr DOH 2230

The above schedule offers good two way connections via DOH to Europe, GCC, UK and selected African points which will further spread out QR's pax demographic profile on board its SYD bound services.

Thursday, July 6, 2017

Emirates makes Brussels double daily nonstop

Emirates has officially announced that due to high demand especially for its premium cabins and cargo on its Brussels bound services, it shall be boosting its presence on this route from the on set of the IATA W17 season.

Currently, EK operates a daily nonstop flight between DXB and BRU using a B77W however from 29OCT17, these shall be boosted to double daily using the same aircraft type with the new flight scheduled as follows:

EK 181 Dep DXB 1420 Arr BRU 1845
EK 182 Dep BRU 2015 Arr DXB 0555+1

Wednesday, July 5, 2017

Air Canada increases Delhi-Vancouver frequencies

Air Canada has officially confirmed that due to popular demand, it shall be taking an aggressive approach during the upcoming IATA Winter season by boosting frequencies to Delhi from Vancouver.

Currently, AC operates 3 weekly nonstop flights YVR-DEL-YVR on a winter seasonal basis using a B789. However effective 04DEC17, these shall be increased to 5 weekly nonstop using the same aircraft type.

AC's move is a proactive one designed to consolidate its market share on this important high volume market segment and regain lost market share from Pacific carriers such as CA, CX, CZ, CI, KE, OZ and JL.

In 2016, 160,000 passengers flew P2P YVR-DEL-YVR !

Wataniya Airways officially relaunches with 3 new destinations

Wataniya Airways of Kuwait has officially announced plans of its re-launch by announcing 3 new niche destinations that are to be operated from mid July 2017 onwards. The carrier will be using 2 A320s initially in the start up phase with a gradual build up to 5 by the IATA W17 season.

The 3 launch destinations are as follows:

TBS - 3 weekly nonstop flights eff 11JUL 


GYD - 2 weekly nonstop flights eff 12JUL


SJJ - 2 weekly nonstop flights eff 13JUL

This is a smart move targeting destinations such as TBS and SJJ which do not currently see nonstop service from KWI thus enabling the carrier to have a monopoly hold that in turn allows them to increase yields. GYD on the other hand currently sees Jazeera operating 2 weekly nonstop flights out of KWI on a summer seasonal basis.
 

Monday, July 3, 2017

PIA reduces Kuala Lumpur operations

PIA has officially announced that it shall be reducing its presence in Kuala Lumpur effective 10JUL17 as the carrier looks to consolidate its presence out of one Pakistani city only.

All flights from Peshawar, Islamabad and Lahore which totaled 5 per week are suspended and instead the airline will operate Karachi-Kuala Lumpur-Karachi nonstop in both directions using a Boeing 777-200.

The schedule is as follows:

Days - 1/2/5/6

PK 896 Dep KHI 0200 Arr KUL 1100
PK 897 Dep KUL 1230 Arr KHI 1530

Friday, June 9, 2017

Alitalia announces Rome-Delhi nonstop

Alitalia has officially announced that it will be launching new nonstop flights between its primary Rome (FCO) hub and Delhi from the on set of the IATA W17 season i.e. 29OCT.

Services will be operated on a daily basis using an Airbus A330-200 with the below mentioned schedule:

AZ 768 Dep FCO 1440 Arr DEL 0240+1
AZ 769 Dep DEL 0440 Arr FCO 0900

Flights are largely timed to connect to North America via FCO as well as selected EU destinations.

In 2016, the P2P round trip demand between Italy and Delhi was as follows:

FCO/DEL - 71,000 pax 
MXP/DEL - 102,000 pax

Thursday, June 1, 2017

United announces LAX-Singapore nonstop

United Airlines has officially announced that it will be launching a new ultra long haul route from the on set of the IATA Winter 2017 season as it seeks to aggressively expand its trans-pacific presence at Los Angeles.

UA will be operating a new daily nonstop service to Singapore from Los Angeles using a Boeing 787-9 effective 29OCT17. This will be the airline's second ultra long haul route as it currently operates a daily nonstop SFO-SIN service using the same aircraft type. 

The schedule for LAX-SIN-LAX is as follows:

Days - Daily

UA 037 Dep LAX 2055 Arr SIN 0650+2
UA 038 Dep SIN 1100 Arr LAX 1015

In 2016, the total P2P demand between SIN and LAX was 97,000 passengers approximately versus 149,000 for SFO-SIN v.v.

Air India announces Copenhagen-Delhi nonstop

Air India has officially opened for sale its new European destination i.e. Copenhagen, Denmark which it shall launch effective 16SEP17 onwards.

AI will fly 3 times per week nonstop from its primary Delhi hub to CPH using a B788 with the below mentioned schedule:

Days: TUE THU SAT

AI 157 Dep DEL 1410 Arr CPH 1850
AI 158 Dep CPH 2035 Arr DEL 0745+1

In 2016, the P2P demand between DEL and CPH was 34,000 passengers and AI's new service is designed to also feed its BKK/KTM/domestic India and CMB flights via DEL.

Monday, May 29, 2017

Sri Lankan Airlines announces Melbourne-Colombo nonstop

Sri Lankan Airlines has officially announced that it will be launching new nonstop flights to Melbourne, Australia effective 29OCT17 from its Colombo hub in order to tap into the large Tamil/Sinhalese diaspora residing over there which is the largest in the Oceania region.

Services will be operated on a daily basis using an A330-200 scheduled as follows:

UL 604 Dep CMB 2350 Arr MEL 1525+1
UL 605 Dep MEL 1655 Arr CMB 2215

Comments:

In 2016, the P2P demand between CMB and MEL was 117,300 passengers which is high however a carrier which is largely dependent on VFR/leisure traffic should not launch a new long haul service as daily from the get go. In addition, connections via CMB to LHR are not available in both directions as only GCC/India connect conveniently.

This is a very high risk move being undertaken by UL as maximum 4 weekly nonstop services are required to begin with to build up the market. Also just because it offers a niche nonstop product, if carriers such as EK/SQ/MH/TG start dumping fares to lure passengers away (since its a price sensitive market segment), it will hurt UL more as they will be wholly dependent on P2P demand on this route whilst the others have diverse demand for various cities via their respective hubs.

In 2015, UL underwent a major cost cutting exercise in eliminating high loss making long haul routes in Europe such as FCO MXP FRA and CDG which was a sound business decision as the airline could not sustain it. Instead it chose to code share with QR via DOH to Europe/MENA which was the right commercial move.

Now with a similar new long haul route to be launched like MEL-CMB it is unfortunately very similar but much higher risk as FRA/CDG were not operated on a daily basis nonstop in the past + they had better two way connections via CMB to Asia for feeder purposes which MEL does not via CMB to Europe.

Wednesday, May 24, 2017

Cebu Pacific suspends Kuwait, Riyadh and Doha flights

Cebu Pacific, the low cost carrier based out of the Philippines has officially announced that due to high losses and the ill conceived ultra low fares that they were charging passengers to fly them from the GCC to MNL v.v., they shall be suspending flights to 3 huge Middle Eastern markets effective June 2017.

Kuwait which is currently operated 4 times per week will be cut off from 14JUN. Over the past year, 244,000 passengers flew between KWI and MNL.

Doha which is currently operated 3 times per week will be suspended effective 02JUL and it had a P2P demand of 230,000 pax over the past year.

Riyadh which is currently operated 3 times per week will be suspended effective 03JUL and it had a P2P demand of 440,000 pax over the past year.

Link:

http://gulfbusiness.com/cebu-pacific-suspends-flights-manila-doha-riyadh-kuwait/

Comments:

This is what happens when airlines such as 5J think that they can sustain selling US$ 200-250 round trip fares all taxes inclusive between KWI and MNL for a flight that takes almost 10 hours to operate !


Thursday, May 18, 2017

Emirates increases Shanghai capacity

Emirates has officially announced that it shall be increasing its capacity on the popular Shanghai route effective 01JUL17 as demand from Europe and GCC has grown for its flights.

Currently, EK operates a daily B77W + daily A380 however from 01JUL17 all flights shall be exclusively flown by the A380.

In 2016, the P2P market demand between PVG and DXB was 189,000 passengers and now Chinese citizens get visa on arrival in UAE for tourist and business purposes which in turn shall stimulate demand even further.

EK 304/305 which departs DXB at 0940am is the flight getting upgraded from B77W to A380.

The top 10 markets feeding EK's PVG flights are DXB, GRU, BCN, MXP, CDG, LIS, FCO, MRU, CAI and IKA.


Tuesday, May 16, 2017

KLM announces Mumbai

After a gap of 16 years, KLM has finally announced that it shall be returning to India's financial center with new nonstop flights to Mumbai from Amsterdam effective 29OCT17.

KL will operate this service 3 times per week nonstop using a B789 as part of a JV with 9W-Jet Airways who also currently operate a daily BOM-AMS flight using a B77W.

P2P demand between AMS and India in 2016 was as follows:

DEL - 91,000
BOM - 76,000
BLR - 33,000
MAA - 18,000
HYD - 10,000

Saturday, May 13, 2017

Singapore Airlines unveils A359LR configuration

Singapore Airlines has had its Airbus A350 ULR configuration disclosed to the media. SQ has on order 7 variants of this type on order which shall be used to operate nonstop from SIN to Newark (EWR) and LAX (Los Angeles) on a daily basis each respectively.

In total these 7 planes will have 162 seats only with 68 flat bed business class seats + 94 premium economy (2-4-2). 

Round trip business class fares for this new service is expected to be priced at US$8000 + taxes. 

Source: https://twitter.com/A350_Production/status/863016113877155840

Friday, May 12, 2017

Emirates increases Brisbane to triple daily

Emirates has officially announced that it will be boosting its presence in the Brisbane market place by adding a second daily nonstop service from its Dubai hub effective 01DEC17.

Currently, EK operates a daily A380 as DXB-BNE-AKL v.v. + a daily B77W as DXB SIN BNE 

The new second daily nonstop flight will be flown using a B772LR using the below schedule:

EK 430 Dep DXB 2200 Arr BNE 1815+1
EK 431 Dep BNE 2225 Arr DXB 0700+1

P2P Market demand in 2016 between EU/GCC to/from BNE was as follows:

LON (LGW + LHR combined) - 185,000
DXB - 67,000
MAN - 42,000
BHX - 11,000
DUB - 29,000
GLA - 11,000
EDI - 6,000
CDG - 38,000
BRU - 4,000
MAD - 9,000
BCN - 11,000
FRA - 22,000
MUC - 12,000
DUS - 8,000
AMS - 27,000
CPH - 12,000
ZRH - 17,000
MXP - 12,000
ATH - 10,000
FCO - 26,000
DME - 3,000
WAW - 4,000
IKA - 4,000
AUH - 16,000
SIN - 195,000
BKK - 88,000

Delta orders 30 more A321s

Delta Airlines has officially announced that it has placed another incremental order worth over US$3 billion with Airbus for 30 Airbus A321-200s. This makes DL one of the largest A321 customers with a total of 112 aircraft on order.

In addition to the above, DL also revealed that it will be taking delivery on schedule its first 5 A359s however the remaining initial batch of 10 aircraft are being deferred for 3 years. 

The configuration disclosed for DL's A359s are as follows:

306 seats in total i.e. 32J + 48W + 226Y

Thursday, May 11, 2017

Emirates announces $340 million net profit

The Emirates Group has announced its 2016-2017 Full Year financial results today of which the main highlights are as follows:

1. EK made a net profit of $340M

2. DNATA made a net profit of $330M

3. Total Emirates Group net profit was $670M i.e. -70% versus previous year

The full detailed financial report and press release can be read via these 2 links

https://www.emirates.com/media-centre/ek-newsroom-emirates-group-announces-2016-17-results#

https://cdn.ek.aero/downloads/ek/pdfs/report/annual_report_2017.pdf



Tuesday, May 9, 2017

Air India announces Dallas, Stockholm and Los Angeles


Air India's CEO today officially announced major plans concerning its long haul expansion strategy for 2017 of which the main highlights are as follows:
  • ​DEL-LAX 3 weekly nonstop flights to be launched effective 01SEP17 using a B77L
  • DEL-ARN 3 weekly nonstop flights to be launched effective 15AUG using a B788
  • Dallas will be launched in Q4 2017 along with Tel Aviv and Nairobi
  • DEL-IAD confirmed to start as 3 weekly nonstop effective 07JUL17 using a B77W

PAL suspends Abu Dhabi-Manila services


Philippine Airlines has officially confirmed that as part of a broader code share arrangement with Etihad Airways, it shall be suspending its own MNL-AUH services effective 07JUL17.



Currently, PAL operates 3 times per week on the MNL-AUH-MNL sector using an A333. Over the past 12 months, over 200,000 pax flew P2P between AUH and MNL.


Etihad will continue to operate its own 17 weekly flights between AUH and MNL using a 412 seater B77W for all the services. 

Monday, May 8, 2017

What markets are viable if Alitalia fails?

Over the past week, there have been numerous media reports of Alitalia entering into "administration" or "bankruptcy protection" in Italy whilst the local Government looks to supply it with a $600 million loan to keep it afloat until November 2016 only. The Italian Government has categorically stated that it has already invested nearly $8 billion into the ailing carrier since the past decade and the public appetite for another bailout is totally non-favorable.

Mentioned below are the top medium/long haul markets to/from Rome + Milan in 2016 that AZ's competitors can take advantage of (by operating higher or year round frequencies) if the carrier goes bust. The route segments highlighted in green especially are the ones to be considered.

ITALY-NORTH AMERICA 2016 DEMAND
Route
FCO
MXP/LIN
Difference
BOS
94,000
40,000
54,000
DFW
38,000
17,000
21,000
EWR
93,000
90,000
3,000
IAD
81,000
20,000
61,000
JFK
274,000
550,000
(276,000)
LAS
20,000
23,000
(3,000)
LAX
150,000
91,000
59,000
MCO
29,000
15,000
14,000
MIA
100,000
118,000
(18,000)
ORD
124,000
52,000
72,000
PHL
70,000
11,000
59,000
SEA
27,000
12,000
15,000
SFO
101,000
72,000
29,000
YUL
108,000
22,000
86,000
YYZ
155,000
40,000
115,000
TOTAL
1,464,000
1,173,000
291,000


ITALY-MAIN WORLD CITIES 2016 DEMAND
Route
FCO
MXP/LIN
Difference
BKK
126,000
160,000
(34,000)
IKA
55,000
83,000
(28,000)
CMB
69,000
75,000
(6,000)
DEL
84,000
146,000
(62,000)
DXB
239,000
210,000
29,000
EZE
175,000
60,000
115,000
GIG
55,000
35,000
20,000
GRU
110,000
105,000
5,000
HKG
93,000
120,000
(27,000)
ICN
316,000
101,000
215,000
MNL
77,000
85,000
(8,000)
NRT/HND
195,000
208,000
(13,000)
PEK
99,000
115,000
(16,000)
PVG
91,000
160,000
(69,000)
TLV
311,000
275,000
36,000
TOTAL
2,095,000
1,938,000
157,000

With regards to the USA-Italy market segment:

1. American Airlines or United should consider making ORD-FCO a year round service with at least a 4 weekly B763ER operated service during the winter season

2. LAX-Italy I have not highlighted as its a ultra long haul service totaling 13 hours each way hence extremely high risk since the yields are not that great. It could however sustain a summer seasonal service only.

3. MIA-Italy should be operated year round by AA with a B787. Currently AA only flies a daily year round B763ER between MIA and MXP but with such a large MIA hub operation already in place, it can be able to sustain along side with MIA-MXP a 4 weekly year round MIA-FCO service.

As far as the other worldwide markets are concerned:

1. It is really surprising to note that ICN-FCO demand is higher than FCO-JFK considering the huge Italian emigrant community residing in NYC

2. TG can increase BKK-MXP from the current 3 to 5 weekly using an A359 along with BKK-FCO too from 4 to 5 weekly

3. AI can sustain a 5th weekly DEL-MXP nonstop service using a B788

4. With AZ out their daily nonstop MXP-NRT + FCO-NRT service would leave a huge void which JAL or ANA can fulfil by operating a 4 weekly service of their own using a B787.