Etihad expands code-share deal with Jet

Jet Airways and Etihad Airways have outlined plans to reinforce their long-term commitment to the growth of India’s economy and aviation industry, including a major new turnaround strategy for Jet Airways to return to profitability in three years. 

The two airlines have been codeshare partners since 2008 and their relationship was strengthened in November 2013, after Etihad Airways received approvals to acquire a 24 per cent stake in Jet Airways, marking it the first investment by a foreign carrier in India’s airline industry.

The wide-ranging partnership has numerous advantages for travellers, including enhanced connections across the world through an expanded codeshare agreement, and reciprocal ‘earn and burn’ rights and tier level recognition on the JetPrivilege and Etihad Guest frequent flyer programs.

Jet Airways and Etihad Airways also stand to benefit from cost savings and synergies in areas such as fleet acquisition, maintenance, product development and training, and continue to explore collaborative purchasing opportunities for fuel, spare parts, insurance and technology support.

Supporting the partnership, the Jet Airways Board recently approved a three-year business plan to reshape the airline and secure its long-term future. The plan incorporates a series of critical measures that lay the foundations for a return to profitability, such as long-term network, fleet and product developments to optimise the airline’s domestic and international operations.

Focus areas for international operations will include network developments, including new services to markets such as Europe, China, Australia and Southeast Asia, expanded frequencies to existing routes and additional codeshares. Jet Airways’ two and three class aircraft product will also be enhanced and the seat count optimised on wide-body Boeing 777 and Airbus A330 aircraft.

In addition, the domestic business model will improve connectivity across India and worldwide, while removing complexity in product and fleet, including the standardisation and reconfiguration of the Boeing 737 fleet.

To initiate the three-year turnaround plan, the Jet Airways Board and management team have already worked with auditors to clean up its balance sheet and write down overvalued non-cash assets.

Jet Airways has announced a new team at the helm with Cramer Ball as its new Chief Executive Officer and Subodh Karnik as the Chief Operating Officer pending regulatory approval.  Mr Ball 46, an Australian national, is a certified accountant and an accomplished airline executive with extensive experience in the aviation industry. Mr. Karnik brings with him rich experience in the aviation sector leading and assisting airlines in fleet and network planning, global alliances, joint ventures and improving overall efficiencies at international airlines.

Naresh Goyal, Chairman of Jet Airways, said: “The coming together of Jet Airways and Etihad Airways has already proved a success for the two airlines and, importantly, has been beneficial for travellers, and will also bring significant benefits to the Indian economy, both in terms of growth,  job creation, trade and tourism. However, the market has been challenged by factors such as a difficult economic climate, volatile fuel prices, and the rapid growth of low-cost carriers in India. Tough measures were needed to ensure Jet Airways’ long-term future, maximise its partnership with Etihad Airways, and enhance the benefits this partnership offers to passengers.

“Jet Airways is renowned for introducing quality to India’s airline industry and its time to re-energise and re-establish ourselves as the country’s leading full-service airline. Our international operations are already profitable and contribute 45 per cent to our total revenue. We will continue to build on this strong foundation as part of our three-year turnaround plan and increase the contribution to 63 per cent by 2015. At the same time, we will address challenges in the domestic market with a model that removes complexity in our fleet, product and brand. This is not a short-term strategy, but we are optimistic about the future and confident about achieving the intended results.”

James Hogan, President and Chief Executive Officer of Etihad Airways, said: “India represents a considerable opportunity for airlines worldwide, with more than 42 million international travellers reported last year and impressive future growth rates predicted by IATA. The challenge is ensuring that our industry is efficiently catering to rising demand, not only in India’s major destinations, but also smaller cities that remain largely unconnected and underserved.

“The Etihad Airways and Jet Airways partnership has significantly improved connectivity between India and the UAE, and through our combined network and codeshare partnerships with other airlines, the Indian public has convenient access to destinations across the Gulf region, Middle East, Africa, Europe and North America. We are also bringing more travellers from these destinations to India, supporting the country’s aviation industry and economy.”

Etihad Airways, which celebrates the 10th anniversary of its inaugural flight to India this September, currently operates 112 flights per week to 10 Indian destinations. During the first half of 2014, more than 621,000 people travelled on the airline’s India services, representing an impressive growth rate of 51 per cent in comparison to the same period last year.

Last month, the airlines announced a significant expansion of their codeshare agreement, after obtaining regulatory approval to codeshare on 43 additional routes, bringing the total number of services in their codeshare agreement to 71.

Under the development, Etihad Airways placed its ‘EY’ code on domestic services in India for the first time, with the codeshare agreement now including 31 Jet Airways routes from hubs in Mumbai, Delhi, Chennai and Bangalore to regional centres in Ahmedabad, Amritsar, Goa, Hyderabad, Jaipur, Kochi, Kolkata, Lucknow, Mangalore, Patna, Thiruvananthapuram and Vadodara.

Also included are Jet Airways flights between Abu Dhabi and Bangalore, Chennai, Cochin, Delhi, Mumbai and Hyderabad, and Etihad Airways flights between Abu Dhabi and Ahmedabad, Bangalore, Chennai, Hyderabad, Kochi, Kozhikode, Mumbai, New Delhi and Trivandrum.

The two airlines will commence a new marketing campaign tomorrow, with the tag line ‘Flying India Forward’, which highlights their collaborative offering for Indian travellers. Together, Jet Airways and Etihad Airways operate more international flights from India than any other airline, and provide unrestricted opportunities to earn and redeem miles on their integrated frequent flyer programs. The campaign will feature in newspapers, magazines, radio, online, and also airport displays in India.

Tags: etihad airways, jet airways

Air Canada adds non-stop service to Palm Springs

Air Canada is planning to introduce a new seasonal non-stop service operated by Air Canada rouge between Vancouver and Palm Springs, California this winter.

Flights to the ‘Golf Capital of the World’ will be operated with Air Canada rouge Airbus A319 aircraft featuring three customer comfort options: rouge, rouge Plus with preferred seating offering additional legroom, and Premium rouge with additional personal space and enhanced service.

“We are pleased to add Palm Springs to our route network of winter holiday choices,” said Benjamin Smith, Executive Vice President and Chief Commercial Officer at Air Canada.  “Offering world class golf, tennis, arts, culture, entertainment and shopping, Palm Springs joins Las Vegas and Phoenix as three of the top US leisure desert playgrounds served by Air Canada rouge this winter. Air Canada rouge is best suited to compete more cost effectively in these markets where there is both a high leisure travel demand and low-cost competition.”

Air Canada rouge flights between Vancouver and Palm Springs, CA will begin December 18, 2014 and will operate three times weekly until April 12, 2015. Flights have been timed to connect conveniently at Air Canada’s Vancouver hub to and from our extensive Western Canada network.

Air Canada will continue to evaluate future market opportunities as new aircraft are introduced into its mainline fleet and existing aircraft are released for operation by Air Canada rouge as market demand warrants.  Since the launch in July 2013 of Air Canada rouge, Air Canada has deployed its leisure carrier to a growing number of Caribbean, Mexico, Europe and select sun destinations in the United States.

Air Canada rouge offers a unique brand of customer service designed to make every flight a memorable start and end to a wonderful vacation.  Aircraft are equipped with player, a next generation in-flight entertainment system that wirelessly streams entertainment to customers’ personal electronic devices.  Air Canada rouge’s player system has proven popular as customers increasingly bring their own personal electronic devices onboard.

Air Canada rouge aircraft have modern cabin interiors, featuring new Slimline seats with a streamlined profile. Customers have the ability to earn and redeem Aeroplan miles on Air Canada rouge flights.

Air Canada rouge operates a fleet consisting of Boeing 767-300ER and Airbus A319 aircraft transferred from Air Canada.

Air Canada’s mainline fleet renewal is ongoing with the introduction of new aircraft.  In May, the airline took delivery of its first 787 Dreamliner and is scheduled to receive a total of six 787 aircraft in 2014 with the remaining 31 scheduled between 2015 and 2019. In February 2014, Air Canada took delivery of the last of five new Boeing 777-300ER aircraft to enter its mainline fleet.

Tags: air canada

ALL NIPPON AIRWAYS TO BE THE FIRST TO FLY 787-9

ANA will become the first carrier in the world to operate the Boeing 787-9 aircraft.

After taking delivery at Boeing’s Everett factory on 27 July, the aircraft will be flown to Tokyo, arriving in 29 July, says ANA in a statement.

Airbus

The aircraft will initially be deployed on domestic routes, although the carrier did not provide details of specific destinations.

In a domestic configuration, ANA’s -9s are equipped with 395 seats, of which 18 are in business class and 377 in economy. It's -8s have just 335 seats.

AirTeamImages

Prior to launching commercial services with the new airliner, ANA will operate a special commemorative flight with Japanese and American schoolchildren.

ANA adds that the 787-9’s fuel economy is superior to that of the -8, and 23% better than the 767-300ER. This, coupled with 20% more seating and better cargo capacity, will help cut operating costs.

AirTeamImages

ANA, which was the launch customer of the -8 in 2011, has orderered 80 787s. Of these 36 are -8s (with 28 already delivered) and 44 -9s.

The carrier’s 787 fleet is powered by Rolls-Royce Trent 1000 engines.

Air New Zealand, which recently received its first 787-9, will commence using the type in October.

FLIGHT AH517 LOST RADAR CONTACT

Search teams are continuing to look for the missing Boeing MD-83 operated by Spanish carrierSwiftair on behalf of Air Algerie.

Swiftair says search teams have so far not located the aircraft. The MD-83, with registration EC-LTV, lost radar contact after departing Ouagadougou in Burkina Faso for Algiers earlier today.

Operating flight AH5017, the MD-83 had departed at 01:17UTC and was due to arrive in Algiers at 05:10UTC.

Six crew members and 110 passengers were on board the aircraft, which was built in August 1996 and is powered by Pratt & Whitney JT8D engines.

Of the 110 passengers, 50 are French nationals, says Swiftair. The remaining passengers are from Burkina Faso (24 passengers), Lebanon (eight), Algeria (six), Canada (five), Germany (four),Luxembourg (two); and one passenger each from Mali, Belgium, Nigeria, Cameroon, Egypt, Ukraine, Romania and Switzerland. Three passengers are of unconfirmed nationality, says Swiftair. All six crew members - two pilots and four cabin crew - are of Spanish nationality.

• Ten people survived a crash landing Wednesday that killed 48 other passengers as their plane failed to reach the runway on a Taiwanese holiday island hit hard by a typhoon. The TransAsia Airways plane was trying to make an emergency landing in stormy weather.

• The FAA earlier this week barred U.S. flights into and out of Ben Gurion International in Tel Aviv, Israel. (The ban was lifted late Wednesday.) The agency stopped flights after a rocket was reported near the airport.

Reports today that an Air Algerie flight with 116 people aboard has gone missing comes amid a spate of bad aviation news. Although the crashes may have come a few days apart, industry experts say that's nothing more than a coincidence and thatair travel remains safe.

• Exactly one week ago, Malaysia Airlines Flight 17 was shot down in a rebel-held area of eastern Ukraine. Flight 17, carrying 283 passengers and 15 crew members, crashed after being hit by what U.S. officials suspect was a surface-to-air missile launched from an area controlled by Russian-backed separatists.

• The downing of the plane was the second tragedy to strike the airline in recent months. The disappearance of Flight 370 on March 8 remains a mystery. The plane was traveling from Kuala Lumpur to Beijing. It vanished with 239 passengers and crew aboard. Despite massive search efforts, the plane's whereabouts remain unknown.

International Passenger Traffic

· By February 2011, air travel volumes were 16% higher compared to the low point reached in early 2009 and some 5% above the pre-recession peak of early 2008.

· Africa saw traffic fall by 1.3% compared to February 2010. Against a capacity expansion of 6.9%, load factors fell to 60.4%. Egypt and Tunisia account for 18% of the African market and 0.6% of worldwide capacity. Libya is a further 3% of the African market and 0.1% of global capacity. The impact of political unrest has been severe with absolute traffic (measured by RPKs) falling by 13.1% compared to January levels.

· Middle East airlines saw demand growth fall from 12.0% in January to 8.4% in February. A capacity increase of 11.0% resulted in a load factor of 72.2%. Political unrest in Bahrain, Yemen and Syria is expected to have an impact on the region’s markets in March. These three countries represent about 6% of Middle Eastern traffic and 0.3% of global capacity.

· Europe’s carriers recorded 7.4% growth compared to February 2010 against a 9.8% increase in capacity. This was slower than the 7.9% demand growth reported for January showing the impact of fall off in trans-Mediterranean traffic to North Africa due to the unrest in the region.

· North American airlines reported 6.7% year-on-year growth for February and a capacity expansion of 11.9%. In recent months, the region’s airlines have seen dampened demand due to several factors starting with disruptive winter conditions in December and January, followed by political unrest last month in the Middle East and North Africa. As a result, there is a widening gap between supply and demand pushing the load factor down to 71.7%, significantly below the 82.2% recorded for the full year in 2010.

· Asia-Pacific airlines reported a major slowdown to 3.0% growth, half of the 6.3% recorded for January. A capacity increase of 6.6% pushed the load factor down to 75.4%. Chinese New Year fell at the beginning of February, pushing some of the holiday traffic into late January.

· Latin American airlines were least exposed to volatility in February. Passenger demand increased by 11.8%. This was virtually matched with a capacity expansion of 12.9% allowing the region’s carriers to maintain the strongest load factor among regions at 76.4%.

Freight Demand

· February air freight volumes stood at the same level as the pre-recession cycle peak in early 2008. But it was down almost 7% on the high reached in May 2010 at the peak of business re-stocking.

· The industry’s fundamentals are strong. Business confidence, as measured by the purchasing managers’ index, reached its second highest level ever in February.

· Air freight carried by Asia-Pacific carriers fell by 4.5% in February. This reflects plant closures associated with Chinese New Year as well as the impact of inflation-fighting measures in the Chinese economy. In terms of volumes, this had the largest impact in slowing global growth to 2.3%--the weakest growth since the beginning of the third quarter in 2009 when annual growth rates turned positive again out of the recession. Compared to January, freight carried by the region’s carriers fell by 6.6%.

· On the back of unrest in Egypt and Tunisia, cargo carried by African carriers fell by 5.7%. In absolute terms, the freight carried by the region’s carriers fell by 8.4% in February compared to January.

· North American carriers saw freight expand by 11.8%, second only to the robust 12.1% expansion by Latin American carriers. European carriers showed weak growth of 6.3%, reflecting the region’s proximity and trade connections with North Africa and the continuing weakness in the European economy.

“The industry situation is volatile and we are watching higher fuel prices carefully. Capacity increases ahead of demand are bringing down load factors for both passenger and cargo operations. Demand is still supported by strong economic fundamentals. But with looser supply and demand conditions, it will be a challenge for airlines to recover the added costs of fuel. Our pathetic 1.4% expected margin for 2011 is under considerable pressure,” said Bisignani.

Based on an average oil price of $96 per barrel, IATA is forecasting fuel to account for 29% of average operating costs with a total fuel bill of $166 billion. For every dollar increase in the price of a barrel of oil, the industry must recover an additional $1.6 billion in added costs.