Analysis: Delta-Virgin Atlantic tie up does little to enhance Indian connectivity for either carrier

by Vinay Bhaskara

Image by, and copyright Devesh Agarwal. Used with permission.

Earlier this week, Atltanta-based full service carrier Delta Air Lines and London based Virgin Atlantic Airways announced that their application for a code share and joint venture partnership on trans-Atlantic flights had been approved by antitrust authorities in both the United States and European Union.

The deal, in which SkyTeam member Delta will purchase a 49% stake in Virgin Atlantic previously owned by Singapore Airlines, covers 108 routes, 91 by Delta, and 17 by Virgin Atlantic. According to the press release put out by Virgin Atlantic, the deal offers the following benefits for customers.

The agreement includes the following customer benefits:

• Virgin Atlantic customers will now enjoy a vast network of connecting North American destinations while Delta customers will gain an additional six daily frequencies between London to New York

• SkyMiles and Flying Club loyalty programs that will offer up to 125% tier bonus miles* to frequent fliers on all Delta and Virgin Atlantic flights - not just those within the codeshare agreement

• Reciprocal Delta Sky Club and Virgin Atlantic Clubhouse access at applicable airports for Upper Class and BusinessElite passengers and Flying Club Gold members and SkyMiles Platinum and Diamond members

• Priority check-in, boarding, baggage handling and additional baggage allowance on all Virgin Atlantic and Delta operated flights worldwide - not just those within the codeshare agreement - for Virgin Atlantic Upper Class and Flying Club Gold members as well as Delta BusinessElite and SkyMiles Gold, Platinum and Diamond members

This is all pretty standard fare for these types of joint venture agreements, though the reciprocal frequent flyer benefits are better than those for most of Delta's partners in the SkyTeam alliance. The benefits will kick in on July 3rd, and will hopefully mark better times for Virgin Atlantic after two straight years of massive losses and increased pressure from rival British Airways at their core hub at London Heathrow.

However, looking at the deal from an Indian consumer's perspective, it adds very little to the existing offerings for both carriers in the India-USA market. Delta Air Lines currently operates a daily flight between Amsterdam and Mumbai, which is fed by its myriad services between the US and Amsterdam. The deal with Virgin Atlantic does nothing to affect the existing Delta service one way or the other.

However, the deal does open up the potential for Delta to add London as an European connecting point for flights to India along with the existing Amsterdam and Paris Charles de Gaulle points, as well as for Virgin Atlantic to enhance its US-India connectivity on existing flights to and from India. However, the schedules just don't bear this out. First of all, the Delhi flights are poorly timed to connect with the additional Delta flights in either direction. The 5:55 pm arrival into Heathrow means that there are no connections possible onto Delta flights; the last Delta departure from Heathrow is 5:10 pm. In the other direction, every Delta arrival into Heathrow is before 12:15 pm, yet the Delhi flight does not depart till 10:00 pm. That 10 hour (minimum) layover simply is not competitive with the quick connections offered by the Middle East Big 3 competition.

In terms of Mumbai, the arrival into Heathrow at 7:55 am allows for relatively effective connections to New York JFK, Minneapolis, and Atlanta, but not Boston or Detroit (the switch from Terminal 4 to Terminal 3 requires passengers to clear security again at Heathrow, adding time to connections). The departure from Heathrow to Mumbai at 10:35 am allows for connections from Boston, New York JFK, and Atlanta, but not from Detroit or Minneapolis. Furthermore, these destinations already have easy access to Mumbai services via Amsterdam.

So in the short term, the Delta-Virgin Atlantic tie up has limited effect on the Indian market. However, it could push Virgin Atlantic to re-time its Delhi and Mumbai operations (creating a red-eye at Delhi?), which would only make Virgin Atlantic's Indian presence more competitive.

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British Airways' first 787 Dreamliner arrives in London

by Devesh Agarwal

US Airframer Boeing delivered to flag carrier, British Airways, its first two Boeing 787 Dreamliners from an existing order of 24.

See video below the fold

The first of the aircraft G-ZBJB flew as flight BA787 from Paine Field in the city of Everett near Seattle, and arrived at London's Heathrow Airport about two hours ago at 12:10 local time (11:10Z). The airplane was welcomed by Mr. Willie Walsh, chief executive officer of International Airlines Group (IAG), the company that owns British Airways.

British Airways has announced that the airline will operate the 787 on flights from Heathrow to Toronto starting September 1 and to Newark from October 1.

The British Airways 787 Dreamliner carries 214 passengers and is configured with 35 seats in Club World, 25 in World Traveller Plus (economy plus) and 154 seats in the World Traveller (economy) cabin. Unfortunately the airline has chosen the dense nine-abreast 3-3-3 bone-crunching configuration in its economy class.

British Airways operates more than 140 Boeing airplanes within its fleet including 52 777s, as well as the world's largest fleet of 747s with 52.

IAG recently announced that it will convert 18 787 options to firm orders for British Airways, subject to shareholder agreement. Twelve of these will be 787-10s, meaning British Airways will operate the entire 787 family – the 787-8, 787-9 and 787-10.

See a picture of the Dreamliner arriving at Heathrow here.

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GoAir replaces Kingfisher Airlines at Terminal 1A at Mumbai

by Devesh Agarwal

From July 1, 2013, Wadia group promoted GoAir will be moving its operations at Mumbai's Chhatrapati Shivaji International Airport, from Terminal 1B (the private airlines' terminal) to Terminal 1A (Air India / Indian Airlines terminal). GoAir will occupy some of the space that has been vacated by the cessation of operations of Vijay Mallya promoted Kingfisher Airlines.

GoAir currently operates 360 movements per week from Mumbai. A dedicated aisle of check-in counters at terminal 1A shall now be available for GoAir passengers. The airline will be also moving its ticketing office to the new premise.

The traffic at Terminal 1B has congested for some time thanks to the diversion of passengers from the implosion of Kingfisher, and the growth of domestic passenger traffic at the commercial capital of India. It would have been better if one of the larger incumbents like IndiGo or SpiceJet would have shifted, when compared to a smaller operator like GoAir which operates about 360 weekly movements i.e. about 26 departures per day.

When queried, persons with knowledge of developments but who preferred to remain anonymous, told Bangalore Aviation that this move has been planned for a long time, and all airlines were given the offer to shift operations. Only GoAir opted for the shift. We can surmize, that GoAir faced the least disruption to their operations since they are a purely domestic airline at present, and the others would find it more convenient to remain in Terminal 1B which is closer to the international terminal T2.

What are your thoughts on this shift? Post a comment.

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Delta CEO Anderson gives up seat for mother of diabetic daughter

by Devesh Agarwal

A truly inspiring action by Delta Air Lines CEO Richard Anderson, who gave up his seat on a full flight to a mother so that she could return home in time to pick up her 12 year old diabetic daughter from a summer camp.

Ms. Jessie Frank who was to fly home to Atlanta from Washington DC on June 13 morning. After a series of delays and cancellations, Frank was anxiously hoping against hope to get on one of the last flights of the day, since she was number eight on the waiting list and zero seats were available.

Her prayers were answered and the agents called her name and asked to board the aircraft.

In her thank you letter posted on Facebook, Frank says

A vaguely familiar face met me at the doorway, not in uniform so probably an off-duty pilot I had seen before. He quickly grabbed my roll-aboard, helped clear a space in the overhead, and showed me to my seat.

As the flight was descending in to Atlanta, the cabin crew announced a special guest was riding in the jump seat of the cockpit, because he had given up his place to allow one more person on the flight, Richard Anderson, Delta's CEO.

Frank then recognised the "vaguely familiar" face since Anderson is in the flight safety video played at the start of every Delta flight.

On a shameful day when politicians in India were publicly bickering on who will take credit for rescue operations in Uttarakhand, may be they need to see across the oceans to see how true leaders help their supporters.

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Air India resuming service to Birmingham

National carrier Air India Ltd has announced it is set to launch four weekly direct flights between Birmingham and New Delhi from August 1.

The route will be operated the new Boeing 787-8 Dreamliner, with a configuration of 18 business class and 238 economy class seats.

The flight will operate on Mondays, Tuesdays, Thursdays and Saturdays.

It will depart from Delhi at 13:30 and arrive in Birmingham at 18:00 hours. The flight will leave Birmingham at 21:30 hours and arrive in Delhi at 10:05 the next morning.

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Plane spotting picture: Jet Airways Boeing 737-800 in Disney channel special livery

Taken by our photographer at Bangalore airport on Sunday, VT-JGV a Boeing 737-800 of Jet Airways sporting the new Disney channel livery with our childhood cartoon favourites Donald Duck, Pluto, Mickey Mouse, Minnie Mouse, and Goofy.

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AirAsia Announces Termination of AirAsia Japan Joint Venture with All Nippon Airways

In a long expected move, Malaysian low cost carrier, AirAsia today announced its decision to terminate its participation in the joint venture with ANA Holdings Inc. under the AirAsia Japan brand with the signing of a termination agreement.

The joint venture, created two years ago under the name AirAsia Japan faced many challenges since its launch. Issues stemmed from a fundamental difference of opinion between its shareholders on how the business should be managed from cost management to where the domestic business operations should be based.

AirAsia Berhad through AirAsia Investment Ltd. had subscribed 25,120 voting shares and 23,880 non-voting shares at JPY 50,000 per share, which represented forty-nine percent (49%) of the paid-up share capital in AirAsia Japan.

The termination comprises an acquisition of AirAsia’s entire shareholding in AirAsia Japan by ANA Holdings Inc. for JPY 2,450,000,000 (approximately US$ 25.17 million). The termination also involves the return of all AirAsia aircraft leased to AirAsia Japan by November 1, 2013 and the payment of all monies accrued from the leasing of the aircraft.

Under the termination, AirAsia Japan will also settle all outstanding invoices due to AirAsia accrued from the commencement of operations. AirAsia Japan will unwind the use of the AirAsia brand in its operations, including the name of AirAsia Japan itself by November 1st 2013. Operations of AirAsia Japan flights up to October 31st 2013 will continue as planned.

Following the transfer of shares and payment of the purchase price, the Shareholders Agreement, the Brand License Agreement and other commercial contracts between the parties will be terminated immediately.

On the termination, AirAsia Group CEO Tony Fernandes said,

“I have great respect for ANA as the leading legacy airline in Japan but it is time for us to part ways and focus our attention on what we do best, which is running a true LCC. Despite the cost issues, the AirAsia brand has resonated with Japanese customers and the trend we see for July and August is very strong for all of Japan. I remain positive on the Japanese market and believe there is tremendous opportunity for a LCC to succeed, as proven by the tremendous success AirAsia X has seen. We have not given up on the dream of changing air travel in Japan and look forward to returning to the market.”

Operations of AirAsia X, the long haul low fare affiliate of AirAsia Group will not be interrupted as a part of this termination. AirAsia X will continue its operations into Japan including Kuala Lumpur to both Tokyo (Haneda) and Osaka (Kansai).

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Airport lounge report: Iberia Dali business class lounge at Madrid Barajas Terminal 4

Guest post by Vishal Mehra
@vishal1mehra

During my trip from Barcelona to Lisbon via Madrid (read trip report here), I had intentionally chosen a long layover at Barajas airport as I wanted to both see the famous wavy ceilings which created quite a ripple (yes, the pun is intentional) when the airport opened in 2006, and I also wanted to explore the Iberia lounge at its home base.

As I got done with my little terminal tour and purchasing the customary refrigerator magnet from the duty free store, I proceeded to Iberia’s business class Dali lounge in Terminal 4.

Considering Madrid is the home base for Iberia, my expectations of the lounges in Madrid being superior and larger that those in Barcelona were fulfilled. The lounge was huge, as well as very impressive to say the least.

Divided into 2 areas, it had large areas of comfortable seating which was soothing for the eyes to see and invited me to sink my tired muscles into and relax. The central area shown above had a spacecraft design to it, with little chairs, and fountains inside it along with a wide selection of reading material, though again it was dominated by Spanish selections.

After relaxing for few minutes, I grabbed myself a beer and started exploring the lounge. There were reasonable options for food, including salads, pasta, sandwiches, wraps and sushi rolls. I would have ideally liked to see more hot food options as well but as this lounge serves the Schengen area flights with usually small layovers, it appears Iberia decided to serve more "to-go" options. There is a large choice area of alcoholic, non-alcoholic drinks and a café.

Besides your typical coffee machine, the lounge served various pastries, croissants, cornflakes, milk and tea options. The lounge also had a fancier coffee machine, though I must admit I did not try it all.

Something rather unique in this lounge was this dedicated wine bar which serves a wide variety of wines. This bar, I was informed, also hosts regular tasting sessions, but to my loss, there was no such session during my transit. I was still able to lay my hands on couple of reds.

The Dali lounge also features a dedicated quiet area in the back that had little beds for passengers opting to take a quick nap between their flights. Given the long days and hectic schedules of business passengers, who comprise the largest share of premium passengers, it would behove other airlines to incorporate a similar feature in their lounge offerings.

The business area had the obligatory few computers, internet access, a printer and a fax machine. Iberia though has to remove one very irritating feature. The wireless internet was accessible only through 30 minute cards which, though the front desk gave with a smile, is disruptive to a business passenger. By the time I went for my third card, the staff on duty graciously offered to give me an extra one to save me the trouble of coming back. I had to decline her offer as my flight to Lisbon was due to depart soon.

Though the TV lounge was largely unoccupied, barring one keen viewer. Again considering this lounge mostly serves intra-European flights, the lounge shows the extent to which Iberia has gone to make this lounge a pleasant experience for the many needs and interests of the passengers it would carry.

Overall, It was a very enjoyable experience at the lounge, and clearly one of the best that Iberia has to offer to its passengers. Iberia may be in deep financial mess it appears they have not spared any expense in making this lounge a comfortable experience for the premium traveller.

I must admit thoroughly relishing myself during these six odd total hours with Iberia minus few niggles. These six hours compromised of two lounge visits, in Madrid and Barcelona each (read Barcelona lounge report here), as well as two flights on Iberia’s A320, from Barcelona to Madrid and then from Madrid to Lisbon. All of this cost me 9000 avios and Rs. 5771. It's a price I would pay happily for so many firsts every single time.

- Vishal Mehra is a digital marketer at a global agency, smitten by travelling and commercial aviation. He tweets a lot and off late has taken to blogging as well. Visit his blog.

All images in this article are the copyright of Vishal Mehra and used with his permission. Unauthorised use and/or reproduction is prohibited.

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Malaysia Airlines warns of possible flight disruptions due to haze

by Devesh Agarwal

Malaysia Airlines is advising its passengers on the possible closure of airports, and disruptions of flights with little advance notice, due to the current haze situation which has deteriorated in parts of Malaysia over the last few days.

Specific stations under close watch for possible closure or interruptions are airline's main hubs in west and east Malaysia i.e. Kuala Lumpur International Airport and Kota Kinabalu International Airport, Kuantan’s Sultan Ahmad Shah Airport, Kota Baru’s Sultan Ismail Petra Airport, Kuala Terengganu’s Sultan Mahmud Airport, Kuala Lumpur International Airport and Kota Kinabalu International Airport.

Malaysia Airlines has formed a haze secretariat to monitor the situation on an hourly basis and provide updates three times daily.

Passengers are encouraged to check the status of their flights with Malaysia Airlines at www.malaysiaairlines.com or within Malaysia call toll free 1 300 88 3000 prior to leaving for the airport and for updates.

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Jet Airways request slots at Amsterdam for Winter 2013 season; no flights to Newark

by Vinay Bhaskara

As Bangalore Aviation reported last month, Indian full service carrier Jet Airways is likely to move its long standing trans-Atlantic scissors hub to Amsterdam in conjunction with its new part-owner Etihad Airways. Late last week, Jet applied for the following slots at Amsterdam for the IATA Winter 2013/14 season.

9W 224 - DEL - AMS --> arr: 09.40 333 daily

9W 224 - AMS - YYZ --> dep: 12.10 333 daily

9W 223 - YYZ - AMS --> arr: 09.40 333 daily 

9W 223 -  AMS - DEL --> dep: 12.10 333 daily

9W 231 - BOM - AMS --> arr: 09.40 333 daily

9W 232 - AMS - BOM --> dep: 12.10 333 daily

Interestingly, Jet Airways has not requested slots between Amsterdam and Newark. Currently, Mumbai-Brussels-Newark is the best performing of Jet Airways' North American routes, and it is surprising that Jet Airways has not requested slots for Amsterdam-Newark, though the route is already served by both United Airlines and Delta Air Lines.

Of course, Jet Airways could be moving towards participation in the trans-Atlantic joint venture partnership with Delta, KLM, Air France, and Alitalia. This partnership allows member airlines to proportionally share costs and revenues, jointly discuss strategy, and generally act as one airline across the Atlantic.

Delta's existing flight 35 between Amsterdam and Newark departs at 12:50 pm daily (the return arrives into Amsterdam at 7:35 am) and is locked into that time by slot constraints at Newark Airport. However, this timing fits perfectly with the slots Jet has requested at Amsterdam and would allow for an effective scissors hub while only allocating three aircraft (one each for DEL-AMS-YYZ, YYZ-AMS-DEL, BOM-AMS-BOM) as opposed to the current four, freeing up one aircraft for use by Etihad. On Delta's end, their existing Amsterdam-Mumbai service could be passed off 

However, it also brings up the question of what will happen to Jet Airway's current slots in Newark. They can be potentially used by Etihad to launch Newark services; in fact a Mumbai-Abu Dhabi-Newark routing utilizing a Jet 777-300ER would be highly effective and help boost Etihad's connectivity whilst also ensuring Newark access on Jet Airways metal. 

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Video: Behind the scenes at Boeing chalet at the Paris air show

by Devesh Agarwal

A quick 2m30s video showing the Boeing chalet and the highlights of the Paris air show from Boeing's perspective

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Analysis: Will Jetihad lop-sided deal favouring Etihad be corrected or be an eye-wash?

by Devesh Agarwal

Last week's deferral by the Foreign Investment Promotion Board (FIPB) of the proposal of Abu Dhabi based Etihad Airways to buy a 24% stake in Jet Airways has brought to light how the middle-eastern carrier will have an equal or higher say in the functioning of Jet despite owning just 24%.

The deferral has also shed light on the lack of clarity in the government's rules with regards to permitting foreign direct investment (FDI) by airlines in Indian carriers.

The Economic Times reports, the existing shareholders' agreement between the two airlines is structured in a manner to give Etihad the upper hand in the decision making at Jet. Without giving Etihad any specific rights or veto power, by requiring approval of two-thirds majority of the board for even routine decisions, the agreement equates the 24% owning airline to the 51% owning promoter, Naresh Goyal.

In normal circumstances, under the Companies Act, 1956, two-third majority is only required in matters such as capitalisation and dividend declaration issues. Any joint management of an Indian company automatically invites additional regulatory scrutiny, like from the Securities and Exchange Board of India (SEBI).

Some of the aspects of the agreement that were questioned by the FIPB include

• Re-location to Abu Dhabi and co-location of the network and revenue management functions of Jet
• The vice chairman will be nominated by Etihad but no mention on nomination of chairman's post
• If Goyal ceases to be chairman, new chairman to be nominated by the board, not selected by shareholders
• Chairman will not have a casting vote
• Two-thirds majority approval required for appointment and removal of CEO, independent directors, and senior management, and to pass any resolution in the board meeting i.e. for routine issues, contrary to existing law

Operational control too

Operationally too, the agreement shows how Etihad is dominating its Indian 'partner' right from the word go. The agreement stipulates that Jet will, at its expense, re-locate and co-locate its network and revenue management operations to Abu Dhabi. In the first phase functions that will shift include, international and domestic network planning, international pricing for non-India points-of-sale, and management of joint fare filing, and inventory control of the Abu Dhabi hub routes. In the second phase, all functions will shift to Abu Dhabi, including, international revenue management, domestic scheduling and pricing, international pricing for Indian points-of-sale, and inter-line pricing.

Many legal analysts feel the Jetihad deal has been constructed in this manner to afford Etihad almost complete management and operational control of Jet, while helping the middle east carrier to avoid triggering the 'takeover code'. The code is activated either when the investment crosses 25% of a company's shareholding or when the investing company gains ‘control’ of the target company. It is the definition of ‘control’ as per the Companies Act which is now becoming the bone of contention in approving the deal.

All of this is hardly surprising. Jet was in dire straits when it went around looking for whoever was willing to invest, and has acceded to virtually every condition demanded of it.

Policy confusions

Another legal issue muddling the deal is the word "effective control". The new FDI guidelines allowing for investment by foreign airlines say that 'substantial ownership' and 'effective control' should be vested with Indian nationals. There is confusion since the term 'effective control' has never been officially defined. The Companies Act, SEBI's takeover code, and the overall FDI policy, have defined the word 'control, but are silent on 'effective control'.

To prod the Jetihad deal along, the civil aviation ministry has reportedly submitted a long list of comments to the FIPB clarifying what it means by 'effective control'. A copy of this has been marked to the ministry of corporate affairs (MCA), the final arbiter of all matters related to company affairs.

For the Indian government, plagued by reforms policy paralysis, this is fast becoming a desperate situation. On one hand, to prove the progress of the few new policy reforms it has announced, it is bending almost every rule in the book, even going so far as to plan allowing foreigners to bypass FIPB approval for investment in the country. On the other hand the Jetihad deal is so lop-sided favouring Etihad, approving will set a bad precedent in law, allowing foreign companies to completely disregard the rights of Indian shareholders.

Jet is in a hard place. Its need for funds is desperate and no one can fault Etihad for trying the most bang for its buck. Even with the most intense lobbying, Jet and Etihad will need to re-work parts of the agreement to make it more palatable, but will this be a real change protecting all shareholders or just an eyewash to get this lop-sided agreement through the scrutiny of an equally desperate government?

Please share your thoughts on this subject via a comment.

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Boeing launches 787-10 Dreamliner. An Airbus A330-300 replacement?

by Devesh Agarwal and Vinay Bhaskara

At the Paris Air Show, as expected, US airframer Boeing has launched the 787-10 Dreamliner, the third member of the 787 family. The second member of the family, the 787-9, is in final assembly in Everett, Washington, USA, and is set to make its first flight later this year.

Video and analysis at the end of the article.

Final assembly and flight testing of the 787-10 are expected to begin in 2017 with the first delivery targeted for 2018.

The 787-9 will seat between 250~290 passengers depending on the airline's configuration choices, with a range of 8,500 nautical miles (15,750 km), and a MTOW (Maximum Take Off Weight) of 250,830 kgs (553,000 lbs). The 787-10 has the same MTOW as its shorter variant the 787-9, and will trade range for increased passenger capacity. The 787-10 has a range up to 7,000 nm (12,964 km), with seating for 300~330 which puts it head-on against the Airbus A350-900 XWB which underwent its first flight just last week.

Boeing is banking on the lighter weight of the 787-10 off-setting the range limitations in winning orders. The 787-10 would be used on high demand routes of up to 10 hours making it ideal for trans-Atlantic flights and long regional flights. India to Europe, Middle-East to Europe, Far East, and South-East Asia to Australasia, Northern Asia, etc.

This performance envelope gives good insight to the launch customers for the aircraft and the 102 airplane commitments received by Boeing. Air Lease Corporation (ALC), with 30 airplanes; GE Capital Aviation Services (GECAS), with 10; International Airlines Group / British Airways, with 12 subject to shareholder approval; Singapore Airlines, with 30 and United Airlines, with 20 airplanes.

Boeing 787-10 launch video

Boeing 787-10 will compete with the Airbus A330-300

We expect the Boeing 787-10 to serve as Boeing's answer to the wildly successful Airbus A330-300.

The A330-300 initially competed with the Boeing 777-200A (the non-ER variant), but over the past decade, beat the first 777 variant outright.

Cathay Pacific group is the largest operator of the A330-300

For almost every mission under 5,000 nautical miles, the A330-300 carries more payload at a lower seat-mile cost than any other airframe of its size on the market. Thus, for any airline who didn't need the range of the 777-200ER, the A330-300 became the aircraft of choice, and at 613 orders and 424 deliveries for this variant alone, one can see it is a huge market. The delays with the 787 program only benefitted the A333 program more, and Airbus won hundreds of orders in the last three years and still possesses a backlog of 187 frames.

The A333 has been especially popular with Asian carriers looking to use it for regional routes within Asia, like Singapore Airlines retiring its fleet of 777-200s in favour of A330-300s, and for carriers with large trans-Atlantic operations. The world's largest A333 operator is the Cathay Pacific / DragonAir group, which also uses the large belly space of the aircraft for cargo.

The 787-10 will give Boeing the upper hand in this market segment, and we estimate with potential sales of 700 aircraft long term.

The 787-10 can lift a higher payload than the Airbus A330-300, and has a maximum take-off weight of 250,830 kg versus 240,000 for the A330-300. The 787-10 will also have 600 more nautical miles of range than the A330-300, and 1,047 cubic feet of additional cargo space (18.9%), making it especially attractive to Asian carriers for whom strong cargo demand on regional routes is a big driver behind using wide-body aircraft for such flights.

From an operating cost perspective, the 787-10 is a new generation aircraft with updated technology. High composite light weight body, new wing shape, and bleedless and high bypass enginers. It could offer up to 20% savings on operating costs compared to the A330-300, and for an industry that loves even a 2% reduction, this would be huge.

We can also expect most operators to further reduce seat-mile costs by opting for the bone crunching nine-abreast narrow (17.2") seating, which can be justified on the shorter flights that will be operated by the 78J (time-table designation for the 787-10), in comparison, the eight abreast seating on the A330-300 offers 18" seat widths. (AirAsia X uses a nine abreast 16.5" seating on its Airbus A330s and A340s).

Airbus will naturally try to narrow this gap by offering better discounts on the A330, but the largest A330-300 operators like Cathay Pacific/DragonAir, China Airlines, Thai Airways, Delta, and Lufthansa can expect strong sales pitches from Boeing very soon.

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Trip report: Iberia domestic business class Barcelona Madrid Lisbon

by Vishal Mehra

Last week, I reviewed Iberia’s domestic Business Lounge in Barcelona.

Today, I focus on my first flight with Iberia from Barcelona to Lisbon, via Madrid. This was also my first flight in business class.

Barcelona El Prat - Madrid Barajas
Flight IB2713. Airbus A320. Seat 5F. Business Class
Departure - 18:50, on-time

For intra-Europe and many north African flight, most European airlines don't have a separate cabin for business class passengers. Instead, they use a mobile curtain that is moved after each flight in order to separate both according to the number of passengers flying business class in each flight. This allows airlines to be more flexible, since an Economy class seat can be converted into a business class seat just by moving the curtain.

My Iberia business class seat was essentially an upgraded economy seat with increased seat pitch (34 inches, instead of 31 in economy) and an empty middle seat for increased comfort.

As I settled into my seat I was offered water and something to munch on, while the cabin was getting ready for departure to Madrid. Our departure was smooth, and looking down at Barcelona I saw the beauty of the city once more albeit with an aerial view, bathed in sunshine.

Soon after reaching cruising height, a purser came over and asked for my choice of drink. As this was a short one hour flight, and it was early evening, there was no specific meal service. I must have waited for fifteen minutes for my apple juice to arrive before drifting off for a short nap.

I woke up while we were on our landing approach to Madrid Barajas and I never got my drink, and considering we were on approach, I did not bother reminding the crew of their slip-up. Humans tend to forget things and considering it was my first ever outing in semi business class, I was in good enough humour to forgive as well, but Iberia should take note of such slip-ups, which while minor, have large impact on passenger impression when they occur in the premium cabin.

Looking through the magazine I chanced upon Iberia giving out Pizza at 36000 feet to its passengers, which I thought was pretty unique.

We landed in Madrid on time, disembarkation was quick and I went to explore the airport's famous wavy-roof terminal and the flagship Iberia lounge.

Madrid Barajas – Lisbon Portela International
Flight IB3118. Airbus A320. Seat 1A. Business Class
Departure 2245, on-time
Seat 1A

I was excited about sitting in seat 1A, that magical number in airline seating wanted by enthusiasts, which was automatically allotted to me by Iberia. Business class was the same upgraded economy class with increased leg room, but this time there was just two rows of business class seats, and two out of the eight available seats remained unoccupied, including the aisle seat in my row i.e. 1C, giving me a full three-seater to myself.

Flipping through Iberia’s magazine, I came across this print ad featuring the Taj Mahal and promoting Incredible India. Bought a big smile to my face.

The pre-departure service consisted of a drink and nuts. I chose to go for a tried and tested cerveza, or beer (in English). Service on this flight was better, may be because it was a Schengen flight and I was surprised to find a full-blown dinner served during this short one hour hop to Lisbon. The fish and salad did not appeal to my taste buds, and I moved quickly to dessert.

As soon as I finished dinner we were descending to Lisbon and the beautiful city came in the view with bright lights and hills around it. The landing again was a smooth affair and within five minutes we were at the disembarkation point.

The only negative aspect of this flight was the exit through stairs and buses ferrying passengers to the main terminal. May be it was a short-coming of the airport, considering it was past 11pm at night, but then a full service airline like Iberia should work closely with airport authorities to ensure no dilution in their service offerings.

- Vishal Mehra is a digital marketer at a global agency, smitten by travelling and commercial aviation. He tweets a lot and off late has taken to blogging as well. Follow him on Twitter and visit his blog.

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Air France and KLM partner with Jet Airways to expand India connectivity

Air France and KLM Royal Dutch Airlines, have entered in to a unilateral code-share agreement with India's Jet Airways which will allow them to extend their connectivity to Indian cities which are currently not served by them.

At present Air France and KLM operate 27 flights a week to India. Air France has flights from Paris Charles De Gaulle (CDG) to Bangalore, Mumbai and New Delhi, while KLM operates from Amsterdam Schipol to New Delhi. From June 19, 2013, Air France will place its marketing code (AF) on Jet Airways’ domestic flights to Chennai from Bangalore, New Delhi or Mumbai and Kolkata and Hyderabad via Bangalore and Mumbai. Likewise, KLM will place its marketing code (KL) on Jet Airways’ domestic flights to Bangalore, Chennai, Hyderabad and Mumbai via New Delhi.

The three airlines already have a full fledged network-wide accrual and redemption partnership for their frequent flyer programs, Jet Airways’ JetPrivilege and Air France-KLM’s Flying Blue, for many years.

The announcement did not indicate if there will be a reciprocal code-share arrangement where Jet Airways would put its flight numbers on Air France and KLM operated flights between India and Europe. A spokesperson for Air France indicated the agreement was unilateral. Jet Airways did not respond.

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What are "Hot and High" operations? Why airlines prefer four engined jets.

by Vinay Bhaskara

Image Credit - International Airlines Group (IAG)

One of the most interesting challenges in aviation arises from operations in severe conditions, extreme cold, short runways, and more commonly, operations from so-called “hot and high” airports; airfields with high temperatures that are situated at a high altitude.

This curious phenomenon is actually the impetus behind several seemingly incongruous strategic decisions by airlines. It is the reason that Iberia has not yet abandoned its gas-guzzling fleet of Airbus A340s, and the reason that Aeromexico’s Asian flights originate in Mexico City but make a technical stop along the way in Tijuana.

The problem occurs primarily due to constraints on take-offs and landings, which harken back to the basic physics of aerodynamics. Aircraft generate lift by using power from the engine to flow air over the wings. More specifically on takeoff, the engine burns fuel to heat up the air and flow a large mass of air through the engines; generating thrust, which allows the aircraft to speed up down the runway and climb away from the airfield.

However, hot and high operating conditions change this simple calculus in several ways. Firstly, if the airport is located in a region of high altitude, the air pressure is lower and the air is less dense. This means that, at any given speed (all else being equal), a smaller mass of air is flowing through the engines; so a higher airspeed is required to develop enough thrust to take off with a given payload versus at a sea-level airport. The easiest way for an aircraft to make up for this deficit is to roll further down the runway before taking off; thus high-altitude airports tend to have some of the longest runways in the world (e.g. Denver International Airport, with an altitude of more than 1,655 meters, has a 16,000 foot runway designed to handle larger aircraft with high payloads). Even after taking off, aircraft will struggle to climb away from the airfield due to the lower density of the air (again relating to a dearth of thrust).

A similar problem plagues airports with high temperatures. Once again heating air decreases its density, which causes the same mass of air limitations driven by high altitudes. However, high temperatures present an additional challenge in that jet engines have a maximum temperature that they can heat gas up until (The exhaust gas temperature or EGT). On hotter days, there is less difference between the air temperature and the EGTs, meaning the engine adds less heat through the air than in cooler conditions, once again affecting thrust. Thus, airports in high temperature regions also tend to require longer runways (examples include airports in the Southwestern United States, the middle east, North Africa, and the Indian sub-continent). The current standard estimates that the adverse effects of high temperatures kick in en-mass when temperatures rise above 30 degrees Celsius.

It is when these two conditions are combined, that a particularly dangerous cocktail arises; the hot and high airport. When temperatures are high at high altitudes, engine thrust performance deteriorates heavily because the air density is even lower. It is little wonder that such conditions are amongst the most challenging in the world for airlines to operate to and from, even more so when their central hub is located at such an airport. Perhaps the most famous hot and high airports in the world are Mexico City and Johannesburg, home to Aeromexico and South African Airways respectively, as well as several airports in Africa and South America (the core markets for Iberia’s long haul operations).

Bangalore, the home to this site, is another challenging airport for hot and high operations. Located at an altitude of 3,000 ft and thanks to indiscriminate development which has denuded the green cover, the former temperate paradise, frequently tops 35 degrees Celsius or 95 degrees Fahrenheit. It is not uncommon to see smaller Code-C aircraft (Boeing 737s and Airbus A320s) have take-off runs exceeding 3,000 meters (approx. 10,000 ft) during the peak hot hours from around noon to 4pm.

This explains why Iberia and South African Airways have held onto their fleets of 4-engined Airbus A340 aircraft longer than other airlines; quad-jets perform better in hot and high conditions. The reason is mainly due to a worst case scenario; loss of power in one engine.

It really comes down to the fact that if a quad-jet loses one engine, it still has 75% of its maximum thrust, while twin-jets like the Boeing 777s and A330s in the same situation will have only 50% of their engine power available in a failure scenario. Thus the quad-jets can carry more payload given runway length constraints at many of these airports (this used to be a major problem at Mariscal Sucre Airport in Quito).

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Video highlights of Airbus A350 AWB maiden flight vs. Boeing 787 first flight

In case you missed the first flight of Airbus' newest aircraft the A350 XWB on June 14th, below are the video highlights.



Compare with the first flight video highlights of the Boeing 787 3.5 years earlier, on December 15, 2009. Both flights picture perfect. The US airframer was gallant in congratulating its main competitor for its achievement.

We congratulate @Airbus on today’s first flight achievement.

— Boeing Airplanes (@BoeingAirplanes) June 14, 2013

Have a great week ahead.

Videos courtesy Airbus S.A.S. and Boeing

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She Flies!!!!! Airbus A350 XWB first flight in pictures

Congratulations to the Airbus team. The A350XWB has taken-off on its maiden flight from Toulouse Blagnac airport in France. Till the official pictures come, a few screen shots from the streaming video from Airbus.

Awaiting behind the delivery flight of the Cebu Pacific A330

The Airbus wide-body flight line. Dominated by A330s and an A380. Compare the larger A350 with the smaller A330.

Getting ready to taxi to holding point on the runway. The chase plane, a SN-600 Corvette is on the adjacent exit.

The A350 with the Airbus flight line behind.

The chase plane readies for take-off.

At runway holding point.

All lined up.

Start the take-off roll

Lift-off!!!!!!

In the air. The flaps and landing gear are kept lowered till the basic flight manoeuvres are completed and the crew finds the aircraft configuration "clean".

In the air

Approaching runway 32L to land

Touchdown!!!!

Exiting the runway

Flight test engineer Pascal Verneau waves an Airbus flag to celebrate the completion of a successful first flight. 

Video feed courtesy Airbus

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Watch the Airbus A350 XWB first flight live

The Airbus A350 XWB is performing its first flight today, June 14, 2013. You can watch the video feed live.

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Official photo: Airbus A350 XWB takes-off on its first flight

The first official photo from Airbus S.A.S. showing A350 XWB MSN001 F-WXWB taking-off on her maiden flight.

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The Airbus A350 XWB journey - behind the scenes videos

by Devesh Agarwal

Ahead of the first flight of the Airbus A350 XWB a set of videos from Airbus which gives us behind the scenes explanations on some aspects of the aircraft design, development, testing, manufacturing, and hand-over to the flight testing crew who will fly the aircraft today.

Like the Boeing 787, the A350 XWB heavily relies on composite materials to lighten the airplane. This video explains the use of composites in the A350. It is largely in French so you will have to follow the sub-titles.



The Final Assembly Line (FAL) is where all A350 airframes are built including the MSN (Manufacturer's Serial Number) 5000 series which were used for static testing on the ground, and MSN001 which will fly later today, god willing, weather permitting.



Prior to any form of flight, the airframe is tortured using special static testing rigs. Observe how the wing is flexed to a deflection of over 5.3 metres (17.38 ft), that is almost two floors of a building.



The first flyable prototype MSN001 is fitted with the Rolls Royce Trent XWB engines, the most powerful engine mounted on any Airbus airframe till date. Even more powerful than the Trent 900 engines on the A380; but then the A380 is powered by four engines, while the A350 is a twin jet.



The A350 XWB MSN001 is painted for flight.



After the first flyable prototype MSN001 is assembled, the manufacturing team turns the aircraft over to the flight test team, which accepts responsibility of the aircraft on behalf of the Engineering Division at Airbus. The flight test team then readies the aircraft and tests prior to the first flight.



MSN001 does not contain much of a passenger cabin. It is filled with mountains of test equipment.



The engines on MSN001 are powered up for the first time.



Fernando Alonso, who shares his name with the world champion Formula 1 Ferrari driver, joined Airbus in 1982 and is the head of Airbus Flight and Integration Test Centre. He will lead the flight test activities for Airbus.



Watch the A350 XWB first flight live.

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A new plane flies today - live coverage of Airbus A350 AWB first flight

The old adage is "God willing, weather permitting"........

If all goes well, we shall see the first flight of a brand new aircraft, the Airbus A350 XWB. Airbus indicates the A350 XWB first flight is planned for today, weather conditions permitting.

The A350 will be the first new commercial aircraft model, excluding variants of existing models, from the stables of the two behemoth airframers, Boeing and Airbus, in almost three and a half years.

The Boeing 787 made its first flight in December 2009. The last new aircraft from Airbus was the A380 double-decker super-jumbo which first flew in April 2005, over eight years ago.


The A350 XWB “MSN1” will take off from Toulouse-Blagnac airport at around 10:00 am local time (08:00Z, 13:30 IST). You can view live coverage on the special A350 first flight website starting from 07:00 UTC, 12:30 IST.

The A350 XWB is the all-new mid-size long range product line comprising three versions and seating between 270 and 350 passengers in typical three-class layouts.

In the mean time, three videos for your enjoyment. One an accelerated timeline of MSN1 being assembled, the second, the painting of MSN1, and the third explains the Rolls Royce Trent XWB, the most powerful engine on any Airbus aircraft till date, even more powerful than those on the A380.

You can also see the A350 performing its taxi testing earlier this week prior to the first flight.

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Gary Toomey new CEO of Jet Airways

Jet Airways (India) Limited, today announced the appointment of Mr. Gary Kenneth Toomey as its new Chief Executive Officer. The appointment follows the resignation of Mr. Nikos Kardassis who left the airline after serving two terms as Chief Executive Officer.

Mr. Toomey, 58, an Australian national, previously served as President and Chief Executive Officer of the Air New Zealand Group and as Chief Executive Officer of Airlines PNG in Papua New Guinea during their periods of major expansion. Prior to these roles, he was Deputy Chief Executive Officer, Chief Financial Officer and Executive Director of Qantas Airways Limited and before that Chief Financial Officer of the domestic carrier Australian Airlines.

Mr. Toomey served as a director of Qantas from 1993 to 2000, Fiji’s Air Pacific from 1998 to 2000 and ANZ Bank from 1998 to 2001, and was a member of the Chief Executives' Board of Star Alliance in 2001. In 1996, while with Qantas, Mr. Toomey was named by Global Finance Magazine as one of the world’s Top 25 Chief Financial Officers. Mr. Toomey's tenure at Air New Zealand group, was extremely stormy, and he left the group under tenuous circumstances, even receiving death threats from employees of Ansett Australia.

Mr. Toomey’s appointment is subject to necessary regulatory approvals including security clearance as may be required. Capt. Hameed Ali will continue as the Acting Chief Executive Officer of Jet Airways, pending regulatory approval of Mr. Toomey’s appointment.

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Indian Air Force's first C-17 en-route to India

by Devesh Agarwal

India's first Boeing C-17 Globemaster III transport airlift aircraft, CB-8001, is en-route to India after completing its almost six month long flight test program at Edwards Air Force Base in Palmdale, California, USA, which began following the aircraft's delivery to the Indian Air Force (IAF) on January 22. Boeing is expected to deliver four more C-17s to the IAF this year and the balance five in 2014.

Curiously, while the C-17 a global distance airlifter, the delivery flight which took off Tuesday night India time, will stop at many places along the way and arrive at its base, Air Force Station, Hindon, outside the capital New Delhi only on Monday June 17th.

The arrival of the first C-17 is almost two years to the date, after the original $4+ billion procurement deal for 10 aircraft was signed in June 2011. With the 10 aircraft, the Indian Air Force will be the largest operator in the world after the US Air Force. Boeing has delivered 254 C-17s, including 222 to the U.S. Air Force and a total of 32 C-17s to Australia, Canada, India, Qatar, the United Arab Emirates, the United Kingdom and the 12-member Strategic Airlift Capability initiative of NATO and Partnership for Peace nations.

India is expected to sign a follow-on order for more C-17's shortly.

Boeing will support the IAF C-17 fleet through the Globemaster III Integrated Sustainment Program (GISP) Performance-Based Logistics contract. The GISP "virtual fleet" arrangement ensures mission readiness by providing C-17 customers access to an extensive support network for worldwide parts availability and economies of scale.

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