Passenger Airplane Industry : Boeing Sells 60 Next-Generation 737-800s
The next-generation Boeing 737-800 appears to be world’s best-selling passenger airplane.
Boeing and the new leasing company Air Lease Corporation (ALC) have finalized an order for up to 60 Next-Generation 737-800s.
This order, first announced at the Farnborough Airshow in July, is for deliveries through 2017. In addition to 54 firm orders the deal includes six additional airplanes to be reconfirmed.
“Our management team has been working closely with Boeing for more than 30 years,” said Steven F. Udvar-Hazy, chairman and CEO of Air Lease Corporation.
“This order for Next-Generation 737-800s continues that great tradition. With this large and long-term commitment we’ll be able to offer our clients a most economical, fuel-efficient and versatile airplane, suitable for a variety of profitable missions.”
“The Next-Generation 737 is one of the world’s best-selling airplanes for a number of very good reasons,” claims Jim Albaugh, president and CEO, Boeing Commercial Airplanes.
“Airlines and lessors remain confident in the airplane’s ability to deliver outstanding, dependable operational and financial performance across the widest range of missions. We look forward to providing that continued value to Air Lease Corporation and its clients and to a long and successful continued partnership with Steven Udvar-Hazy and his new leasing company.”
Airlines Hope to Decrease The Use of Air Travel Services in 2009
The airlines expect to have fewer customers in 2009, and they seem well-positioned to deal with that.
Hammered first this year by staggering fuel costs and now experiencing a reduction in passenger demand, the major carriers are preparing to downsize even more next year to regain profitability.
A formula of dramatically lower fuel prices and capacity adjusted downward because fewer people are traveling in a brutal economy should result in a better bottom line in 2009.
Thus, industry executives are almost upbeat about the coming year, making them rare creatures in the world of commerce these days.
Airlines had their own tsunami – staggering fuel prices – earlier in the summer. They reacted aggressively, by slashing flying capacity – seats and flights – by 10 percent industrywide. Those actions serve now to mitigate the effect of a decline in passenger travel because of a different crisis: a recession.
With oil now below $50 a barrel, U.S. carriers say they believe they can counter a significant drop-off in demand and still come out better than when crude peaked at $147 in July.
Airlines say they stand ready to shed more flights and seats, either by curtailing schedules or flying smaller planes, if passenger demand weakens further.
“We remain optimistic on 2009 for the airline industry as a whole,” analyst Bob McAdoo at Avondale Partners L.L.C. said in a research note two days ago. “If a weaker economy continues to reduce both oil prices and passenger revenues, the benefits of lower oil prices should more than offset reduced revenues,” he said.
Twelve airline executives, speaking at a Credit Suisse investors conference in New York this week, said the earlier cuts in flying and fuel-inefficient airplanes helped blunt the effect of Wall Street’s meltdown and a tumbling economy that is discouraging travel.
In contrast to other industries, such as housing and autos, airlines are expecting a better year ahead, said US Airways Group Inc. chief executive officer Doug Parker. “For airlines at least, 2009 looks better than 2008,” he said.
Airlines not only cut flying, but also changed their pricing models to include ancillary fees and charges for everything from checked bags to soft drinks that “will have material impact on airlines’ ability to generate higher profitability,” Parker said. “Most analysts are now projecting you’re going to see profitability for the industry next year.”
Parker said bookings for January look better than in November, which “was very soft. December looks better than November, and January looks better than December.”
US Airways reported a nearly 7 percent decrease in passenger traffic for November. Southwest Airlines Co. said traffic was down 8 percent. American Airlines said its traffic fell 14.5 percent in November compared with November 2007.
“We have seen business travel softening in certain markets,” Parker told the investors conference, “presumably because of what is going on here in New York with the financial industry. Leisure bookings are staying almost surprisingly robust.”
Southwest’s CEO Gary Kelly said the Dallas low-fare carrier planned “significant” changes in its flight schedule in January.
“We are going into our daily flight schedule and pulling out trips that are not popular and not profitable,” Kelly said. “Obviously we are concerned about the economy. We need to get our flight schedule adjusted to lower demand. Our plan is to not grow the fleet in 2009.”
Delta Air Lines Inc., which merged recently with Northwest Airlines Corp., said it would trim domestic flying 8 percent to 10 percent in 2009, and cut international capacity 3 percent to 5 percent.
US Airways expects to shrink flights and seats 6 percent to 8 percent next year, but does not anticipate reducing capacity more than that.
United Airlines said it would lay off nearly 1,200 workers in January as part of a previously announced plan to eliminate 7,000 jobs.
United is also closing repair stations at Philadelphia International Airport, LaGuardia Airport and Newark International Airport on Jan. 11.
“We announced those maintenance facility closings on Oct. 21,” said United spokeswoman Megan McCarthy. About 30 mechanics work at United’s repair station at Philadelphia International.
“Most of the work that is performed at Philadelphia will move to other airports throughout United’s system,” she said.
United announced in October that it expected to shrink capacity 8 percent to 9 percent in 2009. “These difficult but necessary decisions are all part of United’s work to remain competitive in this extremely difficult economic environment,” McCarthy said.
Allegiant Air Low Price Airline Ticket from Lansing to Grand Rapids airport
With the season’s first snow covering the ground, the timing could not have been better: Gerald R. Ford International Airport officials announced today that it had landed a low-cost airline to fly to vacation destinations in Florida.
Allegiant Air will move from Lansing’s airport to Grand Rapids in early February, offering discount, non-stop flights to Orlando and Tampa/St. Petersburg.
The airline will offer introductory airfares of $89 each way and later will raise them to $109.
An airline spokesman said Allegiant moved because Ford airport officials convinced it this is a more central location and because the runways are longer than those in Lansing.
The airport also waived landing fees and other fees for a year, which could save Allegiant up to $1 million, said airport executive director James Koslosky. Ford also agreed to spend up to $250,000 to market Allegiant.
“It was mostly the hard work of the airport, convincing us that the demand is here,” said Allegiant spokesman John Fenyes.
Allegiant Air flies from small and medium-sized cities to vacation destinations — Las Vegas, Phoenix and the Florida cities of Fort Lauderdale, Orlando and Tampa/St. Petersburg.
Airport officials urged the public to support Allegiant. “If they don’t use it, if they don’t fly, it ain’t going to work,” said airport board member Richard VanderMolen. “If they don’t use it, we’re going to lose it.”
Airport officials have worked with local business leaders for several years to lure a low-cost airline to Grand Rapids. They say the $130 million parking ramp, with 4,900 parking spaces on four levels and a wavy, glass-and-steel canopy, has been a big part of their sales pitch. It is to open in the fall of 2009.
It’s been a difficult sale, though, blamed in part on Northwest Airlines, the Minneapolis-based airline which is the local airport’s biggest carrier. The airline has a history of matching routes and prices of new low-cost airlines just long enough to drive them away. Airport officials call it the “red-tail effect,” referring to Northwest’s red-tailed jets.
As with many airports, business has suffered at the Ford. Since passenger counts peaked over 2 million in 2004, they have dropped by 7.4 percent. In the first half of this year, they continued to fall — down 4.5 percent compared to the first half of last year.
Ford airport officials say its bigger airlines aren’t providing enough flights or seats to meet
demand. Ticket prices are higher at Grand Rapids than many other markets.
Airlines are flying smaller jets from Grand Rapids, using the bigger aircraft for the more lucrative trans-Atlantic flights.
Airport officials have said they hoped a low-cost carrier would lead to lower ticket prices from other airlines serving Grand Rapids.
The Ford’s average domestic fare of $435 is fifth-highest among the top 100 airports and $105 more than the national average, according to the U.S. Department of Transportation. While average U.S. fares dropped by nearly 5 percent since 2001, they have soared here, climbing by 8.5 percent.
A $27,000 study released in February found that a growing number of West Michigan travelers — about 25 percent — were driving to airports in Detroit, Chicago and elsewhere to catch flights. A similar study a decade ago showed a “leakage” rate of 12 percent.
Airlines Tickets, AirAsia flight tickets for lucky Starwalk participants
Lucky participants of Penang Starwalk 2008 stand a chance to fly to four exotic destinations — thanks to AirAsia Sdn Bhd.
The airline is sponsoring return air tickets (excluding taxes) from Kuala Lumpur to Manado, Vientiane, Guilin and Hanoi worth a total of more than RM5,000 for the Dec 14 walk.
AirAsia Penang station head Kenneth Tan said it was the first time the airline was contributing to the event.
He said Starwalk promoted healthy living and was an event for the family.
“To me personally, Starwalk is nostalgic because it was there five years ago where I met a person from AirAsia who offered me a job in the airline,” said Tan who was then a salesman.
He said he and his daughter would participate in the walk this year.
Tan handed over the sponsorship to The Star assistant advertisement manager Lim Cheng Im at the Star Northern Hub yesterday.
AirAsia was recognised as one of the Top 50 Most Innovative Companies by Fast Company Magazine. It was the winner of the prestigious Airline Strategy Award 2008 in the Finance Category and voted as the Best Budget Airline in Asia by SmartTravelAsia.com for three consecutive years since 2006.
Registration for Penang Starwalk 2008 is open from 9.15am to 5pm on weekdays, except public holidays, at the Star Northern Hub in Bayan Lepas or the newspaper’s town office at 15, Jalan Mesjid Kapitan Keling.
The 10km walk, with competition and non-competition categories, is jointly organised by Star Publications (M) Bhd and the Penang Amateur Athletic Associa-tion. Red FM is the official radio station.
It will be flagged off at 7am from the Penang International Sports Arena (Pisa) by Yang di-Pertua Negri Tun Abdul Rahman Abbas. The entry form is available at the registration counters or downloaded from thestar.com.my/starwalk/starwalk08.pdf.
The registration fee is RM8 for non-competition walkers and RM12 for competition walkers. All participants will each get a T-shirt and a goodie bag.
Participants who complete the walk within two hours will be eligible for a lucky contest that offers attractive prizes, including five motorcycles.
The closing date for entries is Nov 21.
Cargo Airplane Crash in Philippines
A Bulgarian national has died in an airplane crash in the Philippines on April 22 2010, caused by an electrical fire, international media reported.
The cargo plane’s pilots subsequently tried to land the aircraft in a rice field as the plane was engulfed by flames, but the emergency landing proved to be fatal for three out of the six crew, Philippine authorities said.
Among the three dead were two Russians and one Bulgarian ground engineer.
The Russian-made Antonov-12 was conducting a flight from Mactan in the central Philippines and crashed late on April 22, local time, in the field about 35 kilometres south of Clark airport, which served in the past as a U.S air base near Manila, said Alfonso Cusi, director-general of the Civil Aviation Authority of the Philippines, cited by Philippine media.
Immediately after the crash, local villagers rushed to the scene and managed to rescue three crew members – two Russians and an Uzbek, who suffered bruises and were brought to a hospital.
Firefighters struggled to extinguish the flames that engulfed the aircraft which had exploded on impact, said police chief inspector Carlito Fabro.
According to Bulgarian media, the Bulgarian who died in the accident was identified as Tsvitoslav Guechevski. The other two fatalities were Russians Vadim Yakimov and Mikolay Bannon.
The three men who survived the crash were Russian pilot Yuri Tuchony, the second pilot, also a Russian, was Dmitriy Struminski and Uzbek Bokhadir Ruziev.
“They had a technical problem, and a fire broke out inside the plane,” Cusi told the Associated Press. “Their communication signal suddenly got garbled, then the plane disappeared in the radar.”
Police quoted the Russian pilot as saying that the plane encountered electric circuit trouble about an hour into the flight, and a fire that broke out forced him to make an emergency landing on the open field.
According to international media reports, the plane was chartered by shipping company UPS Inc. from its owner, Interisland Airlines of the Philippines, police said.
