Finnair first to commit to A321s with Sharklets
June 10, 2010
Fleet harmonisation aims at lower fuel consumption and eco-efficiency
Finnair has signed a Letter of Intent (LOI) for five Airbus A321s equipped with the new fuel-saving Sharklet wing tip devices, becoming the world’s first airline to commit to the A321 with Sharklets. The increased eco-efficiency of the A321 with Sharklets will offer Finnair a four per cent fuel saving on specific Finnair routes compared to today’s aircraft.
This commitment is part of an extensive harmonisation study by Finnair to bring new cost efficiencies to its fleet. This renewal allows Finnair to benefit from economies of scale, with cross crew qualification and mixed fleet flying that are unique attributes of the Airbus family.
Deliveries of A321s with Sharklets are scheduled to begin in 2013.
“Finnair sees the new “Sharklets” option as a significant jump ahead in terms of fuel-burn savings, reduced maintenance costs and payload-range performance improvement”, says Mika Vehviläinen, President and CEO, Finnair. This option enables us to harmonise all our medium haul operations. We would also benefit further from the unique commonality aspects of the Airbus family cockpit, such as lower pilot and maintenance training costs.”
“We are pleased that despite the difficult economic environment and the challenges faced by European airlines, Finnair had the courage to look ahead and take a definitive step towards greener aviation,” says John Leahy, Airbus Chief Operating Officer, Customers. “We have been working in close cooperation with Finnair since 1998, and this is not the first time Finnair has shared a first with us. Our Finnish partners were the first to make a firm order for 11 A350 XWB aircraft in 2007.”
Finnair currently operates an Airbus fleet of 41 aircraft: 29 A320 Family aircraft and 12 A330s/A340s.
Airbus’ Sharklet wingtip devices are designed to enhance the eco-efficiency and payload-range performance of the A320 Family. They are expected to result in at least 3.5 percent reduced fuel burn over longer sectors, corresponding to an annual CO2 reduction of around 700 tonnes per aircraft.
TAM Airlines orders 20 A320 Family and five A350-900 aircraft
June 8, 2010
Repeat order solidifies Brazilian carrier’s confidence in Airbus
TAM Airlines, Airbus’ biggest customer in the southern hemisphere and Brazil’s largest airline company, announced today an order for 20 new Airbus A320 Family and five A350-900 aircraft, bringing the Brazilian airline’s total Airbus orders to 176 aircraft, including 134 A320 Family, 15 A330-200s and 27 A350 XWB aircraft. The Memorandum of Understanding outlining the order was signed during the ILA Air Show in Berlin.
The new A350-900 aircraft will be powered by Rolls Royce engines. TAM is yet to select engines for the new 20 A320 Family aircraft. The airline currently operates its existing fleet of A320 Family with both CFM and IAE engines.
TAM’s incremental A320 Family aircraft order will, in accordance with the airline’s fleet plan, replace existing A320 Family aircraft as part of their commitment to keep an average fleet age of six years. Both the A320 Family and A350 XWBs fleet will serve the carrier’s existing routes.
”With this new order, we can offer our customers one of the youngest fleets in the world of aviation,” said Líbano Barroso, CEO of the TAM Airlines. “Additionally, these new aircraft will allow us to continue our strategy of operating a common fleet throughout our domestic market.”
“TAM’s latest order demonstrates a strong vote of confidence in Airbus. We are very proud to contribute to TAM’s business success by providing the airline with the world’s reference single aisle aircraft family, the A320, as well as with our all new, extra efficient A350 XWB”, said Tom Enders, President and CEO of Airbus.
In addition to this order, TAM also has 44 single-aisle Airbus A320 Family aircraft on firm order for future delivery, as well as three A330-200s and 22 A350 XWBs, for a total backlog of 69 aircraft.
According to the 2010 Airbus Global Market Forecast, Brazil’s overall air traffic rates have soared to 36 percent above 2000 levels, with domestic traffic nearly doubling during that time. In advance of the 2014 Soccer World Cup and 2016 Olympic Games, Brazil stands to experience even higher air traffic.
With TAM being the biggest customer, Airbus has seen its most successful period in Latin America in the last five years, with 325 aircraft sold and a record backlog of more than 230 aircraft orders to be delivered to its Latin American customers. Today, more than 370 Airbus aircraft are flying with 23 Latin American airlines, this representing more than 40 percent of the fleet in service.
Emirates orders a further 32 Airbus A380s
June 8, 2010
World class endorsement for the 21st century jetliner
Dubai based Emirates Airline has ordered a further 32 A380s from Airbus, taking their total firm orders for the iconic flagship of the 21st century to 90 aircraft. The order has a list price of US$ 11.5 billion. The agreement was signed in a ceremony today at the Berlin Air Show witnessed by German Chancellor Angela Merkel, by Emirates Airline Group Chairman and CEO His Highness Sheikh Ahmed Bin Saeed Al-Maktoum, and Airbus President and CEO Tom Enders
“This latest order, adding to 58 A380s previously ordered, affirms Emirates’ strategy to become a world leading carrier and to further establish Dubai as a central gateway to worldwide air travel. The A380 is our flagship in terms of passenger comfort, innovation, operating and environmental efficiency and revenue generation. Our latest commitment signals Emirates’ confidence in the growth to come in a thriving aviation sector,” said H.H.Sheikh Ahmed Bin Saeed Al- Maktoum.
“Emirates has supported the development of the A380 from the earliest days, and today’s order – the single largest A380 order ever – is the best endorsement I can imagine. On behalf of all of us at Airbus, we thank Emirates for their confidence and support. The A380 is indeed a remarkable eco-efficient aircraft, a profit generator for airlines and a great flying experience for passengers,” said Tom Enders.
Following delivery of their first A380 in July 2008, Emirates now operates ten aircraft serving eight international destinations including London Heathrow, Toronto, Paris, Jeddah, Bangkok, Seoul, Sydney and Auckland. The airline expects the list of destinations to increase as more and more airports around the world are A380 ready. Emirates’ tenth A380, received on 7 June 2010, is on static display at the ILA Berlin Air Show. All Emirates’ A380 are powered by Engine Alliance GP7200 engines and delivered from Hamburg. In Germany more than 30 major suppliers are directly feeding into the A380 programme. The A380 programme alone adds an estimated 40,000 direct, indirect and induced German jobs.
Delta: Latin American traffic grows 16.8 % in May
June 7, 2010
As the airline reported, its May system traffic grew 2.7% y/y on 0.6% increase in capacity and moves its system load factor up 1.6 points to 83.9%, Latin America traffic grew at 16.8% on 8.3% capacity increase, moving its load factor in the region up 5.6 points to 75.8%. Latin America growth was second to Pacific which grew 27.9% on 11.7% growth in capacity, moving the load factor up 10.7 points to 84.8%. Domestic traffic was flat with 0.3% growth while the Atlantic dropped 2.7% in the month. Passenger Cargo Ton Miles grew 43.6% with no freighter cargo reported.
Cape Air signs an agreement with Sagem Avionics for Flight Data Analysis Services for its ATR Fleet
June 1, 2010
Grand Prairie, TX – May 28, 2010:
Sagem Avionics (Safran group) of Grand Prairie, Texas and Cape Air of Hyannis, Massachusetts, announced today that they have signed an agreement for FDA services. Beginning with the ATR fleet of aircraft, Sagem will support Cape Air’s FOQA program by processing flight data recorded onboard the aircraft. Sagem will use the same software program that is used in the most successful FDM programs, the Analysis Ground Station (AGS), which includes “lessons learned” from FOQA pioneers. Such unprecedented level of service and expertise will ensure that Cape Air receives true, accurate and detailed information on potential risks that may be occurring in their fleet.
Cape Air will receive clear indications regarding flight safety issues, allowing for enhanced flight safety and efficiency. The Sagem Auxiliary Flight Data Acquisition Unit (AFDAU) will be utilized to collect data on standard PC cards. The data will be analyzed to detect unsafe and abnormal operations in order to achieve industry leading airline operations. The information provided will also be used to prove the effectiveness of pilot training programs.
“Sagem’s experience and reputation on ATR aircraft combined with FOQA know-how made selecting the AGS an easy choice for us” said Tammie Irwin Cape Air Director, Safety & Compliance. “Sagem’s commitment to the success of our program and ability to make the leap into FOQA as easy as possible, are key factors in our decision.”
Sagem AGS is been the preeminent Flight Data Analysis Software package worldwide with over 300 users.
Sky Airline Becomes Newest Airbus Operator in Latin America
May 31, 2010
Chilean Airline adds two A320-200s to its fleet
Sky Airline, Chile’s second largest carrier providing passenger, postal and cargo air transport services since 2002, began flying an Airbus A320-200 May 31 to cover domestic and international routes. Sky Airline received two A320-200s earlier this month, and is expected to start operating the second Airbus A320-200 by end of June.
Based in Santiago, Chile, Sky Airline flies to many of the country’s top destinations, including Arica, Iquique, Calama, Antofagasta, El Salvador, Copiapó, Concepción, Temuco, Puerto Montt, Balmaceda and Punta Arenas. Sky Airline also has international flights to Arequipa, Peru and La Paz, Bolivia. With the addition of two Airbus A320-200s, Sky Airline will increase international routes throughout Latin America and continue charter flights.
“We are confident we selected the right aircraft for our future development and are impressed with the support from Airbus”, said Holger Paulmann, Director of Sky Airline.
“Airbus is proud to be part of Sky Airline’s growth strategy,” said Rafael Alonso, Senior Vice President, Airbus Latin America and the Caribbean, “The A320-200 is the perfect addition to Sky’s fleet with the widest coverage of seating capacity, preferred cabin space and incredible dispatch reliability.”
With well over 6,000 aircraft ordered and more than 4,000 delivered to more than 200 operators, the Airbus A318, A319, A320 and A321 make up the world’s best-selling single-aisle aircraft family and are the preferred choice with traditional airlines and passengers, as well as with the fast-growing low-cost carrier market for which it is now the reference.
Airbus has trained 18 of Sky Airline’s pilots to operate the Airbus A320-200s at its state-of-the-art training center in Miami, which recently welcomed a new Airbus A320 Family Thales Reality7 Level D full flight simulator and has another on the way, as part of its ongoing commitment to provide a complete range of integrated training solutions.
Sky Airline’s latest Airbus additions come during an important growth period for Chile. According to the 2010 Airbus Global Market Forecast, Chile’s traffic growth is 47 percent above 2000 levels, almost twice the traffic growth rate of all of Latin America.
The addition of modern fleets is a growing trend led by Chile in Latin America. The average age of Chilean passenger fleets is 8.9 years, compared to an average age of 10.6 throughout Latin America.
Airbus has seen its most successful period in Latin America in the last five years, with 300 aircraft sold and a record backlog of over 200 aircraft orders to be delivered to its Latin American customers. Today, almost 370 Airbus aircraft are flying with 22 Latin American airlines, this representing around 42 percent of the fleet in service.
A leading aircraft manufacturer with the most modern and comprehensive product line on the market, Airbus is a global company with design and manufacturing facilities in France, Germany, the UK and Spain, as well as subsidiaries in the U.S., China, Japan and Middle East.
Volcanic ash disruption to air travel costs US$5bn in global GDP
May 27, 2010
Report shows far-reaching economic impacts of volcanic ash crisis
Nearly US$5 billion in global GDP has been lost to air travel disruption caused by the Icelandic volcano eruption, according to a report launched today at the World Travel and Tourism Council’s 10th Global Travel & Tourism Summit in Beijing, China.
The study by leading economic forecasting consultancy Oxford Economics finds that passengers, airlines and the destinations themselves were not the only losers in the recent airspace shutdown. In the first week after Eyjafjallajokull spewed a giant ash plume into the sky, the temporary closure of large portions of European airspace resulted in US$4.7 billion of lost global GDP. The roughly 5,000 further flights cancelled through to 24 May added a further five percent to that figure, which represents the damage done to economies around the globe.
Speaking at the event Adrian Cooper, CEO at Oxford Economics, said: “The far reaching impacts of the recent disruption to air transport have of course been felt acutely by travellers, airlines and destinations. But the impact has also been felt by those who rely on goods that are imported and exported by airfreight, and on general production and productivity. This report shows the integral role aviation plays in the basic and every day functions of society and commerce.”
‘The Economic Impacts of Air Travel Restrictions Due to Volcanic Ash’ reports that for the seven-day period from 15-21 April, more than 100,000 fewer flights crossed European airspace than in the previous week, representing a 53 percent fall. Net aviation sector losses amounted to US$2.2 billion after accounting for deferred travel; net visitor expenditure losses tallied US$1.6 billion after accounting for monies spent by stranded passengers is taken into account. With more than seven million passengers and nearly all international regional travel involving Europe affected, the wider economic impacts have been felt across the globe.
Summary of regional economic impacts of one-week aviation shutdown:
• Americas: US$957 million in GDP
• Asia: US$517 million in GDP
• Europe: US$2,632 million in GDP
• MEAF: US$591 million in GDP
Cooper explained: “Beyond the direct effects on airlines and destinations, economies worldwide have been damaged indirectly as suppliers to the sector realise indirect losses. Further, economic output is reduced as lost employee income translates into lower downstream consumer and business spending. In addition, there’s lost output from staff stranded and unable to work – some US$490 million – and international trade has suffered severely, particularly for ‘just-in-time’ production and perishable goods such as exotic fruit and fresh-cut flowers.”
Two such examples are the US$112 million estimated to have been lost by Korean component suppliers and the US$65 million estimated to have been lost by African countries because of the loss of airfreight on perishable good exports. Behind the numbers, there is also the impact on the communities who depend on such activity for their livelihood.
Rainer Ohler, SVP Public Affairs & Communications, at leading aircraft manufacturer Airbus commented: “Today, many of the benefits of air transport are so integrated into the social and economic fabric of our society that they are taken for granted. The Oxford Economics study shows the catalytic impact of air travel – to trade, investment, tourism and productivity – and the need to ensure its sustainable future. A cloud from Eyjafjallajokull has made this clear at least.”
These findings echo a more detailed study published last year by Oxford Economics, which highlighted that aviation supports US$1.5 trillion in global GDP; 33 million jobs worldwide and 35 percent of world trade.
Copa Airlines adds two new Boeing 737-800s
May 20, 2010
Panama’s “model airline” has taken delivery of two B737-800s as part of its plan to expand service in the region. With these two, the airline has received five B737-800s and will receive three additional units this year. Copa Holdings operates one of the youngest fleets in the region, with a total of 60 aircraft, including 20 B737-700s, 14 B737-800s and 26 Embraer 190s.
The “Model Airlines” continue to report profit in Q1
May 20, 2010
According to an article in the May 17 issue of Airline Weekly – one of our favorite sources for up to the minute news – Latin America’s “model airlines” report Q1 financial results which continue to lead not just the region, but the world, in terms of profitability. The four “model airlines” Q1 results are as follows:
Airline Revenue Op Profit Net margin Net profit* Net margin
TAM $1,447 mil $53 mil 3.7% $ 15 mil 2.0%
GOL $ 961 $107 11.1% $ 46 4.8%
LAN $1,035 $143 13.8% $ 88 8.5%
Copa $ 335 $ 71 21.2% $ 57 17.0%
* excluding special items
The four are also recording significant growth in their shares on the New York Stock Exchange. The fact is these are really the “model airlines”, not just in the region but in the world. Copa has the highest net operating margin in the business, with a 21.2% margin in the quarter – as well as in 2009.
Chile: Latin American FDI champion
May 20, 2010
Is the headline in the May 18 issue of a Latin Business Chronicle article which leads with the statement: “Chile, Dominican Republic and Peru advance, while Ecuador and Venezuela fall on the FDI-GDP ranking”. Chile has replaced Panama as the Latin American country with the highest foreign direct investment rate as a percentage of its economy.
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