Lufthansa to re-launch new Germanwings budget airline with a la carte service-fare concept

German major, Lufthansa will re-launch its budget airline Germanwings on July 1, 2013, with a new brand and product concept allowing all passengers to enjoy “à la carte flying”.

Passengers will then be able to create their own package and adapt it in detail to their individual needs, from low-cost flying without add-ons to a high-quality passenger experience with lots of amenities and extras.

Keeping to its motto “Reasonably priced but not cheap”, passengers will be able to choose from three basic Economy Class fare-service offerings – Best, Smart and Basic.

The Best fare, similar to GoBusiness offered by Indian low fare carrier GoAir, offers the highest product currently available on inter-European low-cost routes. Passengers will be seated in the first three rows of the cabin with a seat pitch of 32 inches (36 inches in GoAir), and with the middle seat empty. The fare includes access to Lufthansa lounges, priority check-in and the use of the fast lane at security checks, more miles in the Miles & More programme, HON Circle miles, double the baggage allowance (two items weighing 23 kilograms each), à la carte catering on board, flexible rebooking and ticket cancellation.

The Smart fare will correspond to a conventional Economy product, seating towards the front of the aircraft with the same 32-inch seat pitch as those on the Best fare. Smart includes catering in the form of a snack and non-alcoholic drinks as well as a 23-kilogram baggage allowance. Ticket changes will be allowed for a fee.

The Basic fare, is the lowest and will compete with conventional low-cost products. No food or drink, and no baggage allowance. Seating with 29 inch seat pitch, will be from row eleven back.

Basic fares start at €33 one-way, Smart fares from €53, and Best will be in the €199-€399 range.

Germanwings will also offer passengers the ability to add extras to the Smart and Basic fares to simply and flexibly build a product they desire. For example Smart fare passengers can add on lounge access for €25.

Along with the new product concept, the Germanwings logo will also change. The core element will be a stylised “W” in blackberry and yellow colours, a succinct symbol chosen to convey the wings from the Germanwings brand. All of the airline’s aircraft will gradually be painted in the new livery following the launch of the new brand concept on 1 July 2013.

The airline will increase direct interaction with customers by further developing mobile booking and information systems. All prices will be communicated fairly and without hidden costs, while a cheaper 0180 telephone number will replace the previous 0900 number.

AviationWeek reports Germanwings will operate 32 Airbus A319s and A320s that have formed the fleet of the current low-fare airline. Lufthansa is shifting over 29 A319/320s for a fleet of 61 narrowbodies. The unit also is wet-leasing 23 Bombardier CRJ-900s from Eurowings, one of the group’s regional subsidiaries. The new Germanwings is to reach €1.8 billion in annual sales and 16 million passengers with a combined fleet of 84 aircraft, slightly fewer than the 90 originally envisaged. Lufthansa has decided not to transfer all of the existing non-hub fleet to the new unit. Some aircraft are shifted to hub flying, and the company has decided to accelerate the retirement of its Boeing 737-300 and -500 fleet.

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Emerging economies, China, and India, lead IATA's airline traffic growth forecast

An industry traffic forecast by the International Air Transport Association (IATA), which represents 240 airlines comprising 84% of global air traffic, shows India, China and the Commonwealth of Independent States (CIS), leading air passengers and freight growth over the next four years.

The IATA Airline Industry Forecast 2012~2016 sees passenger numbers expanding by an average of 5.3% per annum, between 2012 and 2016, to reach 3.6 billion passengers, up 800 million from the 2.8 billion in 2011. The 28.5% increase in passenger numbers, over the forecast period, will see almost 500 million new passengers travelling on domestic routes and 331 million on international services.

Despite the current economic slowdown, which has seen depressed air cargo freight volumes, international air cargo is expected to grow at 3% per annum to total 34.5 million tons in 2016, up 4.8 million tons from 29.6 million tonnes carried in 2011.

The emerging economies of Asia-Pacific, Latin America and the Middle East will see the strongest passenger growth. Passenger growth within the Asia-Pacific region, domestic and international, is expected to add around 380 million passengers over the forecast period.

China is the global growth leader, with routes within or connected to China, forecasted to account for 193 million of the 831 million new passengers, 159 million on domestic routes and 34 million travelling internationally.

India will have the second highest domestic passenger growth rate, globally, at 13.1% CAGR, adding 49.3 million new passengers to become the fourth largest domestic market in the world, by 2016, at 107.2 million.

The United States will continue to be the largest single market, with 710.2 million domestic and 223 million international passengers. However the maturity of the US market will ensure its growth rates at 2.6% domestic, and 4.3% international, will be below the global average of 5.2% domestic and 5.3% international.

Forecast Highlights:

International Passenger Development

• International passenger numbers are expected to grow from 1.11 billion in 2011 to 1.45 billion passengers in 2016, bringing 331 million passengers for a compound annual growth rate (CAGR) of 5.3%.
• Five of the ten fastest growing markets for international passenger traffic are among the Commonwealth of Independent States (CIS) or were part of the former Soviet Union, with the others in Latin America, Africa and the Asia-Pacific region. Kazakhstan leads at 20.3% CAGR, followed by Uzbekistan (11.1%), Sudan (9.2%), Uruguay (9%), Azerbaijan (8.9%), Ukraine (8.8%), Cambodia (8.7%), Chile (8.5%), Panama (8.5%) and the Russian Federation (8.4%).
• By 2016, the top five countries for international travel measured by number of passengers will be the United States (223.1 million, an increase of 42.1 million new passengers), the United Kingdom (200.8 million, +32.8 million), Germany (at 172.9 million, +28.2 million), Spain (134.6 million, +21.6 million), and France (123.1 million, +23.4 million). [Editor's note: The large numbers in Europe appear to be reflective of the high number of transit passengers carried by each nations carriers].

Domestic Passenger Development

• Domestic passenger numbers are expected to rise from 1.72 billion in 2011, to 2.21 billion in 2016, a 494 million increase reflecting a CAGR of 5.2% over the period.
• Kazakhstan will experience the fastest growth rate at 22.5% CAGR, adding 3.9 million passengers to the 2.2 million in 2011. India will have the second highest growth rate at 13.1% CAGR, adding 49.3 million new passengers. China at 10.1% will add 158.9 million new domestic passengers. No other country is expected to experience double-digit growth rates over the forecast period. Brazil, which has the industry’s third largest domestic market after the United States and China, will experience an 8% CAGR, adding 38 million new passengers.
• By 2016 the five largest markets for domestic passengers will be the United States (710.2 million), China (415 million), Brazil (118.9 million), India (107.2 million), and Japan (93.2 million). [Editor's note: Japan's domestic airline industry has to compete with the excellent high speed rail network].

International Freight Developments

• International freight volumes are expected to grow at a five-year CAGR of 3.0%, which is the result of an upward growth trend over the forecast period -- starting at 1.4% growth in 2012 and reaching 3.7% in 2016.
• The five fastest growing international freight markets over the 2011-2016 period will be Sir Lanka (8.7% CAGR), Vietnam (7.4%), Brazil (6.3%), India (6.0%) and Egypt (5.9%). Five of the 10 fastest growing countries are in the Middle East North Africa (MENA) region, reflecting MENA’s growing importance in international air freight.
• By 2016, the largest international freight markets will be the United States (7.7 million tonnes), Germany (4.2 million tonnes), China (3.5 million tonnes), Hong Kong (3.2 million tonnes), Japan (2.9 million tonnes), the United Arab Emirates (2.5 million tonnes), the Republic of Korea (1.9 million tonnes), the United Kingdom (1.8 million tonnes), India (1.6 million tonnes) and the Netherlands (1.6 million tonnes).
• Freight carriage within the Asia-Pacific region will account for around 30% of the expected total increase in freight tonnage over the period.

Regional Outlook over the 2012-2016 forecast period

• Asia-Pacific passenger traffic is forecast to grow at 6.7% CAGR. Traffic within the Asia-Pacific region will represent 33% of global passengers in 2016, up from 29% in 2011. This makes the region the largest regional market for air transport (ahead of North America and Europe which each represent 21%). International freight demand will rise 3% CAGR, in line with global growth over the period. Routes within and connected to the Asia-Pacific region will comprise some 57% of cargo shipments.
• Africa will report the strongest passenger growth with 6.8% CAGR. International cargo demand will rise 4%.
• The Middle East is expected to have the third fastest growth rate at 6.6%. International freight demand will grow at 4.9%, the strongest growth among the regions.
• Europe will see international passenger demand growth of 4.4% CAGR. International freight demand for the region will grow 2.2% CAGR, the slowest for any region.
• North America will record the slowest international passenger demand growth--4.3% CAGR. International freight demand will rise 2.4%.
• Latin America will see international passenger demand grow 5.8% CAGR. International freight demand will increase 4.4% per annum.

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IndiGo expands domestic frequencies as 61st Airbus A320 joins the fleet

As domestic leader, IndiGo, adds its 61st Airbus A320 in to its fleet, it is expanding its domestic route network and will operate 373 daily flights to 33 destinations.

Effective December 10, the carrier,

• will operate its 14th daily non-stop flight on the Mumbai-Delhi-Mumbai route.
• Will operate 6th daily non-stop flight on Mumbai-Bangalore
• Will operate and second daily non-stop flight on Mumbai-Kochi-Mumbai route.

The new schedules are:

Flight	Origin	Destination	Departure	Arrival	Frequency
6E 452	Bengaluru	Mumbai	10:15 AM	11:55 AM	Daily
6E 451	Mumbai	Bengaluru	6:40 PM	8:15 PM	Daily
6E 139	Mumbai	Kochi	1:40 PM	3:35 PM	Daily
6E 138	Kochi	Mumbai	4:05 PM	5:55 PM	Daily
6E 139	Delhi	Mumbai	10:25 AM	12:35 PM	Daily
6E 169	Delhi	Mumbai	3:55 PM	5:55 PM	Daily
6E 168	Mumbai	Delhi	12:35 PM	2:40 PM	Daily
6E 138	Mumbai	Delhi	6:45 PM	8:50 PM	Daily
6E 139	Delhi	Kochi (via Mumbai)	10:25 AM	3:35 PM	Daily
6E 138	Kochi	Delhi (via Mumbai)	4:05 PM	8:50  PM	Daily

Admittedly Mumbai Delhi is the largest domestic route, and Bangalore Mumbai is second, but one has to really pause to consider, is there such a large market to sustain so many frequencies on some of the routes?

What are your thoughts? Share a comment.

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Jet Airways to induct new generation ATR 72-600 turbo-prop aircraft

Mumbai-based Jet Airways will the first Indian carrier to induct the new ATR 72-600 series turbo-prop aircraft into their fleet, with five aircraft, starting this month and completing in March 2013.

The Franco-Italian ATR (Avions de Transport Régional) 72-600 is an upgrade from the existing ATR72-500 aircraft in the airline's fleet, and will be used for connectivity to smaller Tier II and III cities like Bhuj, Porbandar, and Udaipur, from Mumbai. It will seat 68 passengers, (up from 62 in the ATR72-500), in an all economy layout.

Compared to the ATR 72-500, which uses 50 per cent analog and 50 per cent digital instruments, the ATR 72-600 has an enhanced full-glass cockpit equipped with the latest navigation aid tools.

The new aircraft also features electronic check lists which eliminates paper in cockpit, replacing the current paper-based documents and maps. Pilots will have at their fingertips moving maps, graphical weather forecasts, terrain mapping and a variety of aviation data and function avionics display units are similar to those features in the Airbus 380 aircraft.

The new PW127M engines provide better performances in "hot and/or high" environments typical of most Indian airports, and the aircraft has also a boost function for short runways.

From a passenger viewpoint, the new ATR 72-600 is equipped with a new cabin, named Armonia and designed by the famous Italian designer Giorgetto Giugiaro, who was named car designer of the century in 1999. It has LED lightening, larger and thinner seats for more legroom and larger overhead bins.

Jet Airways has a total of 107 commanders and 114 first officers for the ATR fleet out of which 55 pilots, at present, are undergoing training on this new aircraft.

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SpiceJet to launch Udaipur

Photo copyright Vedant Agarwal. Used with permission.

Low cost carrier (LCC) SpiceJet will be launching service to Udaipur from December 15th, utilizing its fleet of 78 seat Bombardier Q400 turboprops. SpiceJet continues to pursue a strategy of serving Tier II and Tier III cities with the Q400s.

SG 2435 DEL 1610 - 1730 UDR DH8 D
SG 2436 UDR 1750 - 1910 DEL DH8 D

Stay tuned for our analysis of the Q400 operation at SpiceJet coming soon. 

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First Airbus A350XWB 'MSN1' enters functional testing

European air-framer Airbus S.A.S. has completed the main structural assembly and system connection of the first A350 XWB aircraft ‘MSN1’, which is also the first flight-test aircraft of this new series.

The aircraft pictured moved out of the main assembly hall (Station 40) at A350 XWB Final Assembly Line in Toulouse, France. It then entered the adjacent indoor ground test area (Station 30).

At Station 30, the programme will start by testing the aircraft's hydraulic system, followed by the full electric and hydraulic power-on of the aircraft which is expected to the completed by the end of this year, after which the airframe will start several weeks of comprehensive functional system testing.

After the A350 XWB MSN1 exits station 30, the aircraft will go through a series of extensive production and certification and development tests, be painted, and then have its massive Rolls Royce Trent XWB engines installed.

It is expected to be delivered to the flight-line and be readied for its first flight in mid-2013.

In related news, Qatar Airways, the launch customer of the A350XWB, has endorsed the larger versions of the aircraft and amended its the make-up of its existing firm order for 80 A350s, 20 A350-800s, 40 A350-900s and 20 A350-1000s, to 43 A350-900s and thirty seven 37 A350-1000s.

As per Wikipedia, the A350-900 is the first A350 model and seats 314 passengers in a 3-class cabin 9-abreast layout. It has a standard design range target of 15,000 km (8,100 nm). The A350-800 will seat 270 passengers in a 3-class with a 9-abreast layout. It is designed to compete with the Boeing 787-9 and to directly replace the Airbus A330-200. The A350-1000 is expected to enter service after the -800. It will seat 350 passengers in a 3-class cabin 9-abreast layout, and is designed to compete with the Boeing 777-300ER and replace the Airbus A340-600.

The A350-1000 will feature a slightly larger wing than the -800/900 models; a trailing-edge extension increasing its area by 4%. This will extend the high-lift devices and the ailerons, making the chord bigger by around 400 mm, optimising flap lift performance as well as cruise performance.

What are your thoughts on the new A350XWB. We definitely like the new sharper nose, which is a sharp departure from the bulbous noses of the A320 and the A380.

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GMR Maldives CEO refutes claims of Maldives government on handover of Male airport

The CEO of GMR Male International Airport Pvt. Ltd. (GMIAL), Andrew Harrison has put out a statement refuting claims of the Maldavian government of a smooth and orderly take over of Male airport operations by the government.

I categorically refute the version of events being portrayed to the media in relation to the meeting this morning with GoM officials and outline the true meeting content as follows:

1.
I received a telephone call from a Colonel of Maldives National Defence Force (MNDF) at 1103 to advise me that the Acting Transport Minister who is also the Defence Minister is meeting with MACL at the airport and would like to call upon me personally. The meeting took place at 1145 in our Boardroom at Male' airport. The meeting was attended by the Acting Transport Minister, the Chairman of Maldives Civil Aviation Authority, our Lawyer in Maldives and 3 members of MNDF.

2.
The meeting was cordial and the Acting Transport Minister outlined the following:

• MACL would be operating the airport from Saturday morning in line with the Government of Maldives communication to GMR-MAHB.
• The Minister would like a smooth transition as the airport operations should not be affected and suffer in any way. Passengers should not be inconvenienced and therefore all activities including Duty Free would be allowed to continue as is.
• According to their legal advisors he injunction issued by Singapore High Court does not prevent them from taking over the airport and the injunction cannot be applied to a sovereign state.
• They propose offering 100% employment in MACL to all staff currently working for GMIAL and an announcement to that effect would be made tomorrow by the MACL Board. The offer includes both local and foreign staff at their existing terms and conditions including salary.

Our position, which I communicated to them, remains crystal clear. The Singapore High Court has issued an injunction which clearly prevents MACL or the Government of Maldives or any of its agents from taking any action that interferes with GMIAL operating the airport. The injunction clearly prevents them from taking the action outlined in their notice issued to us stating that the airport would be taken over at the end of the 7 day period. We remain resolute in our position and there is no question of an offer being made and certainly no question of any alleged offer being accepted as we will simply not agree to our rights nor the injunction being undermined in any way.

Our Lawyer further clarified that the injunction was to be honoured as their representatives and Attorney General were party to those proceedings and were present during the proceedings in the Singapore High Court. Further to this we have issued a communication to their lawyers to confirm that their client (MACL/GoM) will not ignore the injunction and outlining the consequences as well as the disturbing media reports that they will ignore the injunction and take over the airport as planned.

The Acting Transport Minister explained that he was not a legal person and he would therefore arrange for his legal team to meet our Lawyer tomorrow to go discuss the legal matters and in the meantime he stated that we should maintain dialogue. We will always maintain dialogue but our legal position is very clear and we will not compromise on our legal position which is clearly supported by the injunction.

Any version of the meeting being described any differently to my response is categorically untrue and we maintain that we have been granted the right to continue operating the airport in line with the injunction. There is and has never been any change in our position.

Regards,

Andrew Harrison
Chief Executive Officer
GMR Male' International Airport Pvt. Ltd.

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OPINION: Aviation at a Crossroads

The past couple of years have not been kind to the global aviation industry. Whether it’s the European union implementing a misguided carbon taxation scheme, the Indian government crushing its nascent airline industry under the weight of oppressive regulations and heavy fuel taxation, increased “NIMBY” (not-in-my-backyard : a term used to describe local residents who oppose aviation development near their residences)” activity in the west holding back growth in the airline sector, or a global airline industry plagued by rising fixed costs and softened demand in the face of the Global financial crisis, there is little doubt that the headwinds faced by the global airline industry are amongst the worst in its history.

Yet despite the apparent irrelevance of the airline industry to our daily lives, its potential decline has profound implications for my entire generation. To start with, it is important to define the essential role that aviation plays in local communities and in the economy as a whole. According to the Federal Aviation Administration (FAA), in 2011 civil aviation alone contributed to and supported more than $1.3 trillion in economic activity as well as 10 million jobs. These estimates ignore the thousands of jobs and billions of dollars in economic activity created and supported by military aviation; both directly in the air force, as well as in the thousands of companies involved in the supply chains of building and maintaining military aircraft for use both at home and with our allies abroad. In several communities, airlines, airports, and aircraft manufacturers are an important source of jobs- especially because positions in the former two sectors can’t realistically be outsourced.

On a more visceral level, the airline industry has contributed heavily to global and US economic growth. The most important aspect is that it makes sharing ideas, knowledge, and skills much easier. In the past, if you wanted to collaborate on a project with a group of engineers from Tokyo, it would take them days, even weeks to cross the Pacific by boat. But thanks to the miracle of modern aviation, you can now have them by your side in less than 24 hours, and at a reasonable fare to boot. This enhanced dissemination of knowledge and know-how has helped drive economic growth around the world, increasing the standard of life for everyone. On a more basic level, air cargo allows precious, time-sensitive, and/or valuable goods to be shipped around the world almost instantly – carving out new markets for exotic fruits and goods, as well as American exports. In today’s America, when unemployment amongst my peers is close to 15%, we can ill afford to lose the jobs provided by directly by aviation, let alone the many more indirectly made possible by air travel and air freight.

On a societal level, we all benefit when different cultures and viewpoints are brought together at common locations to discuss, integrate, and assimilate. Some of the best things about life in America (“Gangnam Style,” basketball, even apple pie) are foreign inventions brought here by immigrants. It is absolutely critical that we continue to make the world more interconnected, so that we can maximize the quality of life of all of the world’s citizens. It is no accident that as the aviation world has developed over the last few years; the degree of global integration has grown exponentially alongside. And in an increasingly uncertain environment which has led many economists to question whether the economy will even grow at all moving forward (or if we have settled into a “Great Stagnation”), cutting off a source and facilitator of economic activity makes little sense.

On a personal level, it kills me to see an industry that I love so much slowly be slowly squeezed to death (though there are bright spots like the United Arab Emirates and Singapore) by incompetent governance and an oblivious populace.

 And the threats to global aviation are numerous and diverse in nature. Part of the trouble is the incessant obsession with carbon dioxide emissions, and the general effect of environmentalism. According to the International Energy Agency (IEA), global aviation accounts for just under 3% of global greenhouse gas emissions (GHG). Yet the European Union proposed an invasive and expensive carbon tax, guaranteed to reduce airline activity and harm not only its own aviation industry, but those around the world. Environmentalists, because of their insistence on protecting each and every animal regardless of the cost, have effectively prevented the expansion of John F. Kennedy International Airport in New York, because the only viable option is to expand onto protected wetlands on Jamaica Bay. This lack of suitable airport expansion in the NYC area has in turn held back aviation development, as the number of flights at each New York City airport has been capped.

But because the runway capacity in the area is insufficient, there is now a huge backup of flights (planes lining up to land on runways) and an extraordinary amount of delays in the NYC airspace. The greatest irony of the situation is that now, tons upon tons of extra carbon dioxide emissions are being spewed into the air because the flights are forced to wait in line with their engines on at the airport or in the air. Many climate scientists would argue that this actually has a greater environmental cost than the loss of a few square miles worth of wetlands which could alleviate, if not solve outright, the problem. But the threats to aviation extend beyond inconsistent and incoherent environmental opposition. In recent years, the political power of so called NIMBYs has expanded. Around the world, especially in the great European cities like Frankfurt (where local residents passed a poorly thought out curfew for flights that decimated Frankfurt’s air cargo industry – likely creating more jobs for the superhubs in the Middle East) and London (where a combination of environmental, governmental, and local opposition to building a third runway at already slot restricted London Heathrow Airport threatens the place of London as a hub in the future aviation hegemony), but also in places like Philadelphia (where local residents are desperately trying to expand the constricted Philadelphia International Airport’s capacity). Admittedly, these residents are affected by airports in the region, but I have problems with using this as an argument to halt development.

The first is that in most, if not all cases, the local residents moved to the region after the airport was built there – they should have been aware of the risk that airports can expand and grow in importance. But more importantly, the needs of the few (local residents around airports opposing development typically number less than 1% of the population of the metro area that it serves) should not outweigh the needs of many. In times of crisis, like our economy today, it makes little sense to sacrifice new jobs and economic activity that would benefit the general region for such limited benefit.

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Video: Emirates aims to improve in-flight customer service using Windows 8 HP ElitePad 900 tablets

Dubai based Emirates airline, is deploying a line-of-business application for improving in-flight communication and customer relationship management. Called Knowledge-driven Inflight Service (KIS), the airline is equipping its in-flight Pursers with over 1,000 HP ElitePad 900 tablets running the KIS application on Windows 8.

As the video below shows, the KIS application will download passenger data at the start of each flight, which the Pursers, who are the cabin-crew lead on flights, will use, to brief the cabin crew and help them devise service delivery that best meets the personal preferences and needs of the passengers. The crew can also use KIS to easily conduct in-flight upgrades to business class or first class for Emirates Skywards members, as well as record critical customer feedback that is immediately routed to Emirates headquarters on landing.



Emirates is the first global customer of the HP ElitePad 900. The device, announced by HP in October and will be available to customers in January 2013, is built on a Windows 8 operating system with a touch-optimized user interface, with its unique Live Tiles information clustering.

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The Kingfisher Airline's Airbus storage at Mumbai airport, ATR72 graveyard at Bangalore airport

In the Google Maps photograph below, you can see the storage yard, some may say, graveyard, of the Airbus fleet of Kingfisher Airlines at Mumbai airport.


View Larger Map

This parking area is at the 14 end of runway 32-14 next to the Kalina hangars of Air India.

From the top you can see an Airbus A330-200 parked in an East-West alignment next to the private jet. In the lower part of the image, from left to right, a representative of each of the Airbus jets in the Kingfisher fleet. 2 x A321's, 1 x A320, 1 x A319.

From a ground view the planes look somewhat like this.

Mean while, Bangalore airport is host to the ATR graveyard of the airline. This photo taken by me on October 24, shows the ATR 72-500 aircraft parked. The aircraft on the left of the picture have their engines stripped. The ones on the right are more recent additions, two of them without any logos on their tails, which typically means the airline does not own/lease them any more.

In related news, The Economic Times reports the Mumbai airport operator, MIAL, may ask Kingfisher to vacate the terminal, due to non-payment of dues.

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