Emirate Airlines Expected to Grow Capacity up to 12 percent Each Year

Dubai based Emirates Airlines is expected to grow in terms of capacity by up to 12 percent each year to the middle of the decade according to a new report compiled by analysts. The airline is currently the largest in the world when it comes to international traffic, and by 2015 is also expected to have the largest fleet of wide-body planes.

The study of Middle Eastern Megacarriers has been put together by Boston Consulting Group. In just five years, the airline has managed to introduce 32 new destinations to its itinerary, triple revenues and capacity and improve operations in terms of load factors, utilisation of aircraft and yields.

Among the 157 aircraft it has in its fleet is the largest number of Airbus A380s of any carrier and presently Emirates boasts 114 destinations around the world in some 67 countries. Boston Consulting said that other Middle Eastern airlines were likely to put in a similarly strong performance by the middle of the decade with passenger capacity predicted to triple over the coming two decades.

Middle East Partner and Managing Director for the Group, Rend Stephan, explained that the region was important for carriers travelling on long-haul journeys and that the carriers’ based there were able to tap into cost advantages which enabled them to compete aggressively with other international rivals.

According to the International Air Transport Association, Middle Eastern airlines increased capacity by 8.9 per cent in July, which was still not enough to keep up with a growth of 9.7 per cent in demand.

Qantas and British Airways Increase Flight Services on Joint Services Agreement

Australia’s Qantas announced on Tuesday plans of enhancing Joint Services Agreement (JSA) with British Airways. Enhancements will strengthen their Singapore hub and offer better services on flights between London Heathrow and Australia.

Qantas and British Airways are set to develop their long-running Joint Services Agreement (JSA). The two airlines aim to strengthen their Singapore hub and offer better products and services to passengers booking flights between London Heathrow and Australia. The move is seen as a part of the Qantas Group’s plan to create a competitive global airline business.

Qantas will maintain its Airbus A380 operations from Melbourne and Sydney to London via Singapore. The carrier also proposes to construct a new premium lounge at Singapore’s Changi International Airport. On the other hand, UK’s flag carrier, British Airways will upgrade its London to Sydney (via Singapore) operations from a Boeing 777 to Boeing 747.

These developments will consolidate Singapore’s standing as the principal hub in the relationship, reinforcing the two airlines’ competitive position in the Asia-Pacific region. Both airlines are known to be premier carriers. Cheap flight tickets may not be their forte, but the carriers still enjoy popularity among travellers for offering quality on-board services.

Under the updated Joint Services Agreement, Qantas will offer flights on Australia – Bangkok and Australia – Hong Kong routes, while British Airways will provide services on Bangkok – London and Hong Kong – London routes. This move is aimed at maximising the carrier’s respective operational strengths and will come into effect from 2012 beginning. BA also plans to augment the frequency of London – Hong Kong flights from 14 per week to 17 per week.

Australia’s Qantas will discontinue its Bangkok – London and Hong Kong – London routes and BA will terminate Bangkok-Sydney operations in favour of Qantas operating flights on the route. This will ease early retirement of Qantas’ four Boeing 747 aircrafts.

Qantas CEO Alan Joyce remarked that the time was right to restructure the JSA between British and Qantas Airways.

“Strengthening our relationship with British Airways is an important element of our new strategy for Qantas International,” Mr Joyce said in the company’s press release that was posted on the website on Tuesday.

“Singapore will become the focal point of the JSA relationship, with daily Qantas A380 services from Melbourne and Sydney and onward to London, increased British Airways capacity and a new premium lounge.

“The new approach is a smarter use of both airlines’ resources that will enhance our competitive position in Asia and in the Australia – Europe market.

“Regardless of which airline is operating flights between Australia and the United Kingdom, we are focused on delivering a smooth and enjoyable flying experience for passengers. Restructuring the JSA will put us on the front foot in the fiercely competitive Australia – UK air travel market,” Mr Joyce further elaborated.

Qantas Announces New Lounges and Fleet Upgrades

Qantas also announced that it is going to invest almost $400 million in new international lounges, in-flight entertainment and aircraft refurbishment to enhance travellers’ experience.

“Qantas will construct a new First Lounge and Business Lounge in Los Angeles, three times the size of the current space, as well as new First Lounges in Singapore and Hong Kong,” Mr Alan Joyce was quoted in the company’s press release.

Mr Joyce stated that the introduction of the A380 in 2008 brought new levels of customer satisfaction and now the airline aims to make sure that consistent superiority is maintained across the fleet and lounge network.

“In February last year, Qantas announced a $250 million upgrade for nine Boeing 747-400s to meet the changing demands of the airline’s international customers. The first reconfigured B747 will commence services between Brisbane and Los Angeles in October, operating three return services per week,” he said.

The Qantas Group additionally launched a new low-cost airline, Jetstar Japan, in partnership with Japan Airlines and Mitsubishi. The airline is aimed at Japanese market and will serve travellers who seek cheap flight tickets.

Qantas Airline Reported International Flight Numbers up 7 per cent in April

Qantas carried 7 per cent more passengers in April compared with the prior corresponding month. But the airline group, comprising the mainline Qantas operations and low-cost offshoot Jetstar, cautioned that comparisons with the prior year were affected by one-off events.

Qantas’s international operations in April 2010 were affected by flight cancellations from the Icelandic volcano eruptions that closed European airspace.

Qantas international flights carried 509,000 passengers in April 2011, up 7.4 per cent from the prior corresponding period, the figures show.

With Jetstar, Qantas said the figures were affected by the Japanese earthquake and tsunami.

Jetstar’s international operations carried 9.9 per cent more passengers in April 2011 compared with April 2010.

Emirates Airlines Reported Full Year Profit Increase 51.2 percent as Premium Travelers Traffic Growth

The parent of Emirates Airline on Tuesday reported a 51.2% rise in full-year profit as the world’s largest international carrier by traffic saw business from premium travellers return to pre-crisis levels.

The Dubai-based airline shrugged off the impact of turmoil in the Middle East and North Africa as traffic through its hometown hub surged, with double-digit gains in both passenger and cargo volume.

Emirates’ rapid expansion and huge order book–at $66 billion it accounts for 10% of outstanding commercial business at Airbus and Boeing Co. (BA)–makes it a key barometer of the global airline industry.

The airline’s operating margin of 9.9% in its fiscal year to Mar. 31 topped almost every other large international airline, and the record earnings saw a four-fold rise in the bonus paid to staff to an equivalent of 12 weeks pay, pushing labor expenses up 20%

“We are fortunate to be based in the Middle East where regional passenger seats grew by 17.8% compared to a global 8.2% growth,” said Sheik Ahmed Bin Saeed Al Maktoum, chairman of the state-controlled group.

Sheik Ahmed said profit would have been AED1 billion ($272 million) higher had it not been for the increase in oil prices, with fuel expenses last week accounting for a record 43% of operating costs.

Transfer traffic through Dubai accounts for around 60% of the airline’s total business, with passenger numbers up 15% to 31.4 million over the past year, and cargo rising almost 12%.

Emirates and rivals such as Abu Dhabi-based Etihad Airways and Qatar Airways have capitalized on their geographical location to use new long-range aircraft to funnel business through their hubs.

Nigel Page, Emirates head of the Americas, said the airline has leveraged changing trade patterns to capture business, with flows to and from Africa now going through the Gulf rather than via European airports.

The Americas was Emirates’ fastest-growing region last year with revenue up 37.9% while sales in its largest geographical area of operations–east Asia and Australiasia–rose by 30.9%.

Business in the Gulf and the Middle East was still up 14.2% despite regional turmoil which saw flights to Tunisia temporarily halted, while Libyan services remain shuttered. Flights to the Ivory Coast resume on May 12.

Page said the regional problems had actually helped Dubai’s financial recovery after its own debt crisis as companies relocated staff to the emirate.

Emirates Group reported net profits of AED5.46 billion in 2010/11 compared with AED3.62 billion a year earlier, with revenue–which includes its airport and travel arms–up 29 at 53.1 billion.

The airline unit’s passenger seat factor, a key measure of capacity utilisation, rose to a record 80%, from 78.1% in the year before, with profit rising to $1.5 billion from $964 million on a 25% rise in revenue. Capacity rose 15.8%.

Emirates expect delivery of six Airbus A380s and 13 Boeing 777 planes this year, while four new routes will be added: Geneva, Copenhagen, Buenos Aires and Rio de Janeiro. It is the largest operator of both aircraft types.

Last week, Sheik Ahmed said the government-owned airline is in no hurry to sell shares to the public. He said the decision on whether to launch an initial public offering rests with the government, but ruled out any IPO in either 2011 or 2012.

Qatar Airways Plans Order 60 Airbus Superjumbo Jets

Les Echos newspaper reported, Qatar Airways is in advanced negotiations to place a giant order for 60 airliners built by the European firm Airbus.

The order, which would be announced at the Le Bourget air show in June, would be for 50 A320 NEO aircraft, the re-engined version of the medium-range A320, and for 10 to 20 A380 superjumbo jets.

The airline would also place an additional 50 options to buy A320 NEO aircraft and options to buy an additional 10-20 A380 planes, the report said.

Until now, Qatar Airlines has ordered five of the superjumbo aircraft but has signalled that it intends to buy more.

Singapore Airlines Plans Global Expansion Strategy as Rising Competition in Asia Aviation Industry

Goh Choon Phong, who takes over as chief executive today, may get offers for the last major remains of Singapore Airlines’ global expansion strategy as he confronts rising competition in Asia. Virgin said in December it had received tie-up inquiries, and Singapore Airlines’ outgoing CEO, Chew Choon Seng, called the investment ”underperforming” two years ago and has said the airline would consider a sale.

In Asia, Mr Goh faces low-fare competition on long-haul routes from Jetstar and AirAsia X, as well as renewed efforts by Cathay Pacific and Korean Air Lines to lure away lucrative business-class travellers. And Middle Eastern carriers Emirates, Qatar Airways and Etihad Airways have ordered close to 300 planes since 2007 as they build hubs linking Europe and the Asia-Pacific region.
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Delta Air Lines and Middle Eastern airlines are among the carriers exploring a Virgin tie-up, Sky News reported in December, without saying where it got the information. Singapore Airlines’ stake complicates a deal as local ownership rules limit non-European investors to minority stakes.

”Either Singapore Air sells or Branson loses effective control by selling part of his stake,” said Andrew Miller, chief executive of CAPA Consulting, which advises airlines.

Singapore Airlines was ”very supportive of our business strategy, including the review by Deutsche Bank”, Greg Dawson, a Virgin spokesman, said.

Mr Chew, who spent almost four decades at Singapore Airlines, sold a leasing arm and spun off a ground-handling unit while CEO to focus on the carrier’s flying business. He will take over as chairman of Singapore Exchange Ltd today.

Mr Chew’s predecessor, Cheong Choong Kong, bought stakes in Virgin and Air New Zealand to expand overseas. The value of the Air NZ investment was written down in 2001, and the remaining holding sold three years later.

Competition is intensifying in the premium market, which accounts for 40 per cent of Singapore Airlines’ sales. Hong Kong-based Cathay Pacific is working on a $HK1 billion ($A126 million) business-class upgrade to lure executive travellers.

Korean Air, which aims to get 50 per cent of passenger sales from premium classes by 2019, will receive its first five Airbus SAS A380s next year. And Emirates is building a fleet of 90 A380s.

source : Bloomberg

Result of Investigation Cause of Explosion on Qantas Airlines flights from Singapore to Sydney

Qantas Airlines has decided to keep its fleet of large A380 aircraft on the ground after investigations by engineers found that three engines on those airplanes are not working properly. The engines are made by Rolls-Royce, and are relatively new.

The company began checking the engines on its A380s after an engine failed and blew apart minutes into a flight from Singapore to Sydney last week. Debris from the engine was scattered over the Indonesian island of Batam, but the plane was able to return to Singapore for a safe emergency landing.

The recently-released A380 is the largest airliner in the world. The Singapore-Sydney flight had 466 people aboard.

One of the problems the engineers identified was that oil was found where it is not supposed to be. They are investigating whether this is because of problems with the materials used or with the design of the parts. The company predicts that it will take a few more days of tests before the aircraft are certified as safe to fly again.

Singapore Airlines and Lufthansa also use A380s with the same type of Rolls-Royce engines, but they chose to keep flying their planes after conducting checks.

The company is currently searching Batam Island for a part of a turbine disc that was expelled from the engine. The disc could hold valuable clues as to what happened to the engine.

Qantas Airlines Grounds Fleet of Airbus A380 Emergency Landing at Singapore Airport

Australian airline Qantas has grounded its fleet of Airbus A380s after an engine failure forced a passenger plane to make an emergency landing in Singapore airport.

A double-decker jumbo trailing smoke as parts of the plane’s body fell from mid-air. This is the sight that locals of Batam in Indonesia woke up to. On Thursday this Sydney bound double-decker developed a technical snag and made a dramatic emergency landing at Singapore’s Changi Airport. Locals say they heard a mid-air explosion, but thankfully all 433 passengers aboard were evacuated safely. But passengers say that the experience was one they’ll never forget.

Qantas has never had a fatal crash in its 90-year history and says this doesn’t classify as an air crash.

“Qantas takes safety so seriously that it is ready to put safety before any commercial requirements of the airline and that means grounding the Qantas fleet until we are absolutely comfortable and that’s the right thing to do,” said Alan Joyce, spokesperson, Qantas Airlines.

Quantas has now suspended all A380 airbus aircrafts. Interestingly, aviation authorities in India have been, for some time now, mulling over the possibility of A380s landing and taking off from the Delhi airport because this is the only runway capable of handling A380s.

Emirates Airlines Considers Ordering 120 Airbus A380 Aircraft

Emirates Airlines is considering ordering 120 Airbus A380 aircraft when it has sufficient space at its home base in Dubai.

Emirates president Tim Clark said the airline, passenger rates of which are growing 20% annually, expects to maintain this level for the next five years and to fulfil all its 90 orders for the A380 super jumbo.

Under the plan, Emirates will order 30 Airbus A380, worth $10bn, according to Reuters.

If the airline goes ahead with its current growth plan it will have an A380 fleet worth over $40bn.

Emirates ordered 32 superjumbos worth $11bn at the Berlin Air Show in June and 30 Boeing 777-300ER wide-body planes, worth $9bn, at Farnborough Air Show in July.

China Southern Airlines is Set to Receive the Airbus A380 Superjumbo

Delivery of the China Southern Airlines A380 had been due to arrive just before the 2008 Beijing Olympics but was deferred- now it looks like the first of its five A380s will be delivered next year.

Airbus mounted the vertical tail on China Airlines’ first A380 superjumbo on Tuesday at the A380 assembly line in Toulouse. It takes about eight hours to install the tail, which is almost equivalent to the size of an A320 wing and when joined to the fuselage its tip stands 24 metres from the ground.

China Southern is the only mainland carrier to order the A380, with rival Air China insisting it has no plans to acquire the aircraft because it prefers the rival Boeing B747. It expects to receive its first A380 plane in 2011.

Asia-Pacific carriers who have ordered the A380 superjumbo include Singapore Airlines, Malaysia Airlines, Qantas, Korean Airlines, Kingfisher Airlines, and THAI Airways.

Business class travellers will be intereted to know that the carrier has announced a new premium economy class on flights to Australia. It has started rolling out Premium Economy Class service on its service between Guangzhou and Sydney using the all-new Airbus A330-300 aircraft.

China Southern Premium Economy travellers enjoy superior seating and cabin service from standard economy with special advance round trip fares.

From October 31st the carrier will offer the Premium Economy service on services from Guangzhou to Brisbane and Melbourne. The re-designed A3380-300 cabin offers 47 Premium Economy seats separated by curtains, and portable doors to guarantee travellers a discreet private space.

International Premium Economy Class on China Southern Airlines offers a premium travel experience and includes 40% additional space. The seat pitch has been extended from Economy pitch of 32 to 37 inches for expanded legroom. Special personal touches include newspapers, double-thick wool blanket and pillows; fresh seasonal fruits, noise-reduction headphones, private washing kit and savoury red and white Australian wines. At the airport there is an exclusive Premium Economy check-in counter where travellers can enjoy the special privilege of a private Premium Economy check-in counter and an extra luggage allowance of 15kg. They also benefit from priority baggage delivery upon arrival, boarding at passengers’ convenience and priority class upgrade (if Premium Economy cabin is overbooked). Sky Pearl Club members travelling in Premium Economy Class will earn 110% FFP mileage and through to December 30th, will receive an additional 3,000 bonus FFP miles.

China Southern has also 13 Boeing B787s on order.