New long-haul destinations in the winter schedule promises Lufthansa....

The German national carrier Lufthansa is launching new Airbus A380 destinations from Munich in the coming winter. From 5th October the airline will be flying again an A380 daily to the Californian metropolis of Los Angeles. Shortly before the start of the winter flight schedule on October 28, there will be a special premiere: For the first time, a Lufthansa Airbus A380 will take off from Munich to the Thai capital Bangkok, increasing the seat capacity by almost 75 percent compared to the A350. Lufthansa offers a greater premium product on this connection than ever before: the A380 offers 8 seats in First Class, 78 seats in Business Class and 52 seats in Premium Economy.

Airbus A380 from Munich to Bangkok and Los Angeles, with Airbus A350 to Bangalore

New connections to India

Lufthansa is expanding its service to India. The new destination from Munich is Bangalore, which, in addition to Delhi and Bombay, will be served by an Airbus A350. LH764 departs Sundays, Wednesdays and Fridays at 12:10 p.m. to the southern Indian metropolis. Lufthansa guests will be able to enjoy one of the Lufthansa Group's most modern and economical long-haul aircraft, the Airbus A350-900. After a longer break, Lufthansa will also include again Hyderabad in its flight schedule from Frankfurt. This will once again provide a direct connection from Germany to India's pharmaceutical and high-tech industries. Lufthansa will announce further details in midMay.

Lufthansa will offer a total of five destinations to the Indian subcontinent from its two hubs in Frankfurt and Munich in the coming winter.

MA Hong appointed as chairperson and non-executive director of CDB Aviation

CDB Aviation, a wholly owned Irish subsidiary of China Development Bank Financial Leasing Co., Ltd. announced that MA Hong was appointed as Chairperson and Non-Executive Director of CDB Aviation, effective April 18, 2023.

“I feel privileged to take on this role at such an exciting time for CDB Aviation, one of the premier global leasing companies that has leveraged its increasingly prominent role in the aircraft financing ecosystem to advance its commercial growth journey,” noted Madam MA Hong, newly appointed Chairperson and Non-Executive Director of CDB Aviation. “Together with our board members and the management team, we will continue to ensure CDB Aviation’s growth strategy makes a positive impact for all stakeholders in the broader aircraft leasing community, including our customers, the OEMs and suppliers, our financial partners, and, of course, our shareholders.”

Ms. MA Hong is currently Chairwoman and Executive Director of CDB Leasing, the lessor’s parent company and the leasing business platform under China Development Bank (“CDB”). Ms. MA Hong, who joined CDB Leasing in May 2021, has served in her current chairmanship role since November 2021. She became part of CDB in March 1994, where she held various positions, including Deputy Head of CDB Planning Department, Vice President of CDB Beijing Branch as well as President of CDB Shanxi Branch and President of CDB Beijing Branch.

“The unique capabilities and resources of and continued support from our parent, CDB Leasing, have helped tremendously to propel our platform to where we are today. Ms. MA Hong’s long history of leadership and her extensive experience within CDBL and CDB, which recognize that CDB Aviation is a business in growth mode, will be critical to the next phase of our development,” concluded Jie Chen, CDB Aviation Chief Executive Officer.

Leasing giant Avolon to order 40 Boeing 737 MAX jets

The international aircraft leasing company giant Avolon has announced a commitment to order 40 Boeing 737 MAX aircraft with delivery scheduled to be between 2027 and 2030, despite more production line issues and problems. 

Avolon delivered the first 737 MAX in 2017, along with the one thousandth 737 MAX earlier this year and this will increase the overall size of Avolon’s owned, managed and committed fleet to 870 aircraft.

Andy Cronin, CEO of Avolon, commented: "This commitment with Boeing underlines our confidence in the positive momentum in the aviation market, and increases our portfolio of young, modern, fuel-efficient aircraft. With strong demand for our new technology order book, and delivery slots at a premium, it strengthens and extends our delivery profile with Boeing. This commitment will also support our airline customers who are looking to plan beyond the robust post-Covid traffic recovery and prepare for future growth, while also reducing their carbon emissions."

The transaction is subject only to approval by shareholders of Bohai Leasing Co., Ltd., Avolon’s 70% shareholder, which is anticipated before the end of May. The actual cost of the deal has not been disclosed, however, as usual, with large multi-aircraft orders to existing customers, discounts of 20-30% on list prices are not unusual.  

Boeing recently announced that a supplier had revealed that the installation of fittings at the rear of 737 MAX jets did not follow the standard and warned there could be delays.  Whilst Boeing assured the issue was not an "immediate safety of flight issue" many have doubted the sincerity of the words, recalling previous Boeing statements about the risks of other issues encompassing the safety of the 737 MAX. 

The jets have been beset with problems and issues since the two crashes that led to a year-long grounding of the type. In-flight issues surrounding the horizontal stabiliser, autopilot, and engines have all caused concern. Some airlines indicate privately that the savings promised by the manufacturer have not yet been seen in 'real-world' operational use and are clouding the future.  

Finnair's cost cutting measures seem to be making a difference......

The Helsinki-based Finnair's continuing cost-cutting and streamlining appear to be making a difference to the firm's performance, especially over the last quarter was proved to be more positive than many had forecast. Indeed, during what is the seasonally weakest quarter of the year for the carrier, it managed to reach the break-even point. 

There are many reasons for the airline's more positive position, not least the commitment and dedication of the staff,  which saw its Finland-based cabin crew sign a new agreement that actually means lower wages and increased work as productivity is enhanced which allows more savings. The airline is also subcontracting cabin service on long-haul operations, which the management sees as a key way to transform the carrier. Following the new agreement with cabin crew,  the leaders are not bringing in the same subcontracting model of cabin service on domestic and European routes for the next five years. 

Key figures released in the most recent publication show Finnair's revenue increased by 73.8% to 694.7 million euros in the first quarter. Net cash flow from operating activities was 206.8 million euros (35.4), and net cash flow from investing activities was -143.7 million euros (-23.7).

The higher fuel prices continued to have an adverse impact on the airline, which expects to cost an extra 40 million euros year-on-year, including the impact of currencies and hedging

Finnair estimates that in 2023, it will operate an average capacity of 80–85 per cent, as measured in ASKs, compared to 2019. The capacity is impacted by the development of demand, e.g., increase in travel on Chinese routes, and potential leases of aircraft with crew to other airlines.

CE­O Topi Manner issued the following statement:  "The year started on a positive note, as Finnair achieved a marginally positive comparable operating result in the seasonally weakest first quarter. This was the third consecutive profitable quarter after ten loss-making quarters caused by the pandemic and the closure of Russian airspace. Typically, the first quarter of the year is loss-making and, thus, the result speaks of both good progress in strategy implementation, and of a strong demand environment. Strong demand, combined with capacity and resource constraints in the aviation sector caused by the pandemic, contributed to the positive development of our unit revenues."

Alaska Airlines launches partnership with STARLUX Airlines

Alaska Airlines has signed a new deal with STARLUX Airlines which now flies between Los Angeles and Taipei with connections to 16 destinations across Asia. Alaska's Mileage Plan members can earn miles on all STARLUX flights and soon they’ll be able to redeem miles on STARLUX as well.  When redemptions become available this summer on STARLUX flights between Los Angeles and Taipei, they will start at 20,000 miles for economy, 40,000 for premium economy and 60,000 for business class for a limited time.

STARLUX is a premier global airline offering world-class service and amenities. We’re proud to be their first airline partner,” said Nat Pieper, senior vice president of fleet, finance and alliances at Alaska Airlines. “Our guests will love flying on STARLUX, connecting the West Coast, Taipei and many more incredible places in Asia. We’re thrilled to offer our loyal Mileage Plan members another exciting way to see the world.”

“STARLUX Airlines has marked a successful three-year operation of our Asian routes, revolutionizing the aviation industry with our exceptional service and innovative cabin design that have been highly commended by passengers. In a new milestone, we launched our inaugural flight to Los Angeles today, offering convenient and comfortable long-haul premier services to passengers travelling to the city of angels,” said Glenn Chai, CEO of STARLUX Airlines. 

STARLUX operates the transpacific route with its new-generation Airbus A350-900 aircraft configured in a four-class layout: First, business, premium economy and economy.

Inflight service on STARLUX includes Taiwanese signature dishes and amenities prepared for passengers in all classes. STARLUX will be offering first and business guests a selection of the best top chef’s creations and local Taiwanese delicacies. The popular STARLUX signature dish yakiniku donburi is served on board. And to bring greater individuality to their air travel experience, all passengers can pre-order meals online so they can enjoy the meal they want.

Titan Airways says goodbye to its final Boeing 737 Classic aircraft

The UK speciality ACMI airline Titan Airways has paid tribute to the classic Boeing 737 jet that is leaving the carrier's fleet.

Titan Airways has operated its last Boeing 737 Classic flight, with its last remaining Boeing 737 Classic, a B737-400F aircraft registered G-POWS, retiring from active revenue service on 8th April.

G-POWS joined the highly respected airline in early 2018 after the successful introduction of an initial Boeing 737-400 the previous year. G-POWS began life at Titan as a passenger aircraft before undergoing a freight conversion in the autumn of 2018. Since then, it has mainly flown UK domestic mail routes on behalf of the Royal Mail.

Before the 400’s, and dating back to the early 90’s, Titan operated the Boeing 737-300QC. These aircraft could be quickly converted from passenger to freight and flew passengers during the day and cargo at night. At the peak of our 737-300 flying, Titan operated three QC’s and one dedicated freighter.

The 737 Classic has played a key role in the 35-year history of Titan Airways and the last one had a special water canon salute as a final farewell at the plane's London Stansted base.  

Titan will now operate a more modern and more sustainable fuel-efficient aircraft, such as the Airbus A321P2F and the Airbus A330-300P2F on the freight side, and the state-of-the-art A321neoLR on the passenger side.

London Gatwick Airport gets a brand new look.......sort of.

London Gatwick Airport gets a brand new look from today,  well sort of, they've not added a third terminal or a second runway yet,  but the VINCI Airport on the Surrey / Sussex border has got a brand new corporate identity.  

The airport says it has released a new identity to go along with a refreshed vision which is designed to reflect the airport's ongoing recovery from the pandemic, as well as provide a platform for the airport’s next phase of growth.   

 

In the marketing blurb,  the new logo and design acknowledge the airport’s proud history, the new, modernised brand is designed to reaffirm and showcase London Gatwick’s position as a major international gateway and apparently also recognises the airport as part the greater VINCI Airports network.

I'm not sure I see all that, maybe the pointy arrow bit of the giant G is a bit like the G of the GH logo for Gatwick Handling, which was never owned by the airport operator. At first glance, it just appears to be what many companies do in difficult times, spend a fortune on branding, rather than spending money on wages or better services, or physical improvements to the customer experience. 

 

However, VINCI tells us that along with the new brand and vision is an exciting multi-million-pound development programme. This significant programme of investment includes the expansion and refurbishment of departure lounges to create more modern, appealing spaces for passengers, while at the same time considering the airport’s sustainability goals. So maybe they are going to improve the passenger experience of the airport, which can be either good or bad, with little in-between. The airport is also moving in more automation in improvements across check-in and boarding, as well as enhanced airfield technology. 

Jonathan Pollard, Chief Commercial Officer, London Gatwick said: “This is a perfect time for us to launch our new brand and refreshed vision, as we head into our second year of recovery from the global pandemic and look to embark on a very promising chapter of growth.

 We are taking a multi-dimensional approach, combining investment in airport development, along with a new visual identity, to rejuvenate the image of London Gatwick. We expect this will translate to more people choosing to fly from the airport, with even more exciting destinations for passengers.

 Our previous brand served us well for over 10 years, but it’s now the right time to modernise and update our airport. As we look ahead to future growth, our refreshed brand celebrates the past and brings us into the future.” 

The new branding can already be seen across many of Gatwick’s digital and social channels, as well as key focal points within the airport. Over the coming months passengers, airport partners and colleagues will see it come to life across the airport.  However,   like the last brand change,  old signage and logos will still be seen about the airport terminals for quite some time,  maybe even years, after all, there is still at least one of the old yellow and black BAA style signs up! 

 

SWISS pledge to increase long-haul services during its winter schedule

Swiss International Air Lines - SWISS promises to expand its range of long-haul flights in the coming winter schedules to offer its customers even more attractive travel options. The destinations which will receive more SWISS services this winter include Miami (USA), Shanghai (China), Singapore (Singapore) and Cairo (Egypt). SWISS will also continue to make every possible effort to maintain maximum stability throughout its flight schedules.

Swiss International Air Lines (SWISS) is to expand its range of long-haul services in the coming winter schedules in response to continuing growing demand.

Frequencies to Miami in Southern Florida will be doubled from their summer 2023 levels to up to 14 weekly flights. Shanghai in China will return to receiving six-times-weekly service this winter, three frequencies more than have been offered during the present summer season. Singapore will revert to daily SWISS service through the addition of one further weekly flight. Egypt’s capital Cairo will also be served daily in the coming winter timetable period.

“SWISS is currently experiencing a lot of demand and a still strong desire to travel, despite all the economic and political uncertainties,” explains SWISS Chief Commercial Officer Tamur Goudarzi Pour. “We’re very pleased to be further expanding our range of long-haul services this coming winter, within the overall framework of our long-term network planning, to offer our customers an even more attractive choice of flights. But while doing so, it remains our paramount objective to provide our passengers with stable and reliable flight operations.”

SWISS travellers will be offered a total of 21 long-haul destinations in the coming winter schedules (see table below). The winter timetable period runs from 29 October 2023 to 30 March 2024.

Boeing's net loss for the first quarter of 2023 was $425 million....

The Boeing Company has recorded first-quarter revenue of $17.9 billion,  primarily reflecting 130 commercial deliveries.  The aerospace firm says its total backlog amounts to  $411 billion which includes over 4,500 commercial aircraft, yet the net loss was $424 million. 

"We delivered a solid first quarter and are focused on driving stability for our customers," said Dave Calhoun, Boeing president and chief executive officer. "We are progressing through recent supply chain disruptions but remain confident in the goals we set for this year, as well as for the longer term. Demand is strong across our key markets and we are growing investments to advance our development programs and innovate strategic capabilities for our customers and for our future."

Commercial Aeroplanes' first-quarter revenue increased to $6.7 billion driven by higher 737 and 787 deliveries, partially offset by 787 customer considerations (Table 4). An operating margin of (9.2) percent also reflects abnormal costs and period expenses, including research and development.

On the 737 programmes, earlier this month the program's fuselage supplier notified Boeing that a non-standard manufacturing process was used on two fittings in the aft fuselage section of certain 737 aeroplanes. This is not an immediate safety of flight issue and the in-service fleet can continue operating safely. While near-term deliveries and production will be impacted as the program performs necessary inspections and rework, the program still expects to deliver 400-450 aeroplanes this year. On production, the supplier master schedule remains unchanged including anticipated production rate increases, which will result in higher inventory levels. The company expects final assembly production to recover in the coming months with plans to increase to 38 per month later this year and 50 per month in the 2025/2026 timeframe.

The 787 program is producing at three per month with plans to ramp production to five per month in late 2023 and to 10 per month in the 2025/2026 timeframe.

During the quarter, Commercial Airplanes secured net orders of 107. Also during the quarter, the company secured commitments from Air India for 190 737 MAX, 20 787, and 10 777X airplanes and from Riyadh Air and Saudi Arabian Airlines for up to 121 787 airplanes. Commercial Airplanes delivered 130 aeroplanes during the quarter and the backlog included over 4,500 aeroplanes valued at $334 billion.

Defense, Space & Security first-quarter revenue was $6.5 billion. First-quarter operating margin of (3.2) percent primarily reflects a $245 million pre-tax charge on the KC-46A Tanker program largely driven by the previously shared supplier quality issue resulting in factory disruption and rework. Results also include the continued operational impact of labor instability and supply chain disruption on other programs.

During the quarter, Defense, Space & Security captured awards from the U.S. Army for 184 Apaches and from the U.S. Air Force for 15 KC-46A Tankers and the initial E-7 development contract. Backlog at Defense, Space & Security was $58 billion, of which 30 percent represents orders from customers outside the U.S.

Global Services first-quarter revenue of $4.7 billion and operating margin of 17.9 percent reflect higher commercial volume and favorable mix.

During the quarter, Global Services committed to set up the first Boeing Converted Freighter line in India in collaboration with GMR Aero Technic, delivered AerCap's 50th 737-800 Boeing Converted Freighter and broke ground on a new component operations facility in Jacksonville, Florida.

Table 1. Summary Financial Results						First Quarter
(Dollars in Millions, except per share data)						2023						2022						Change
Revenues						$17,921						$13,991						28 %
GAAP
Loss From Operations						($149)						($1,162)						NM
Operating Margin						(0.8)		%				(8.3)		%				NM
Net Loss						($425)						($1,242)						NM
Loss Per Share						($0.69)						($2.06)						NM
Operating Cash Flow						($318)						($3,216)						NM
Non-GAAP*
Core Operating Loss						($440)						($1,445)						NM
Core Operating Margin						(2.5)		%				(10.3)		%				NM
Core Loss Per Share						($1.27)						($2.75)						NM

*Non-GAAP measure; complete definitions of Boeing's non-GAAP measures are on page 5, "Non-GAAP Measures Disclosures."