Ethiopian Airlines authorised as service facility for Q400 turboprops

By BA Staff

Bombardier Aerospace celebrated its growing support network in Africa by agreeing with Ethiopian Airlines of Addis Ababa, as yet another Authorised Service Facility (ASF) for commercial aircraft on the continent.

The airline can now perform line and heavy maintenance on Q400 and Q400 NextGen turboprop aircraft under the Bombardier ASF banner.

Ethiopian Airlines operates a fleet of modern aircraft, and performs complete aircraft, as well as engine and component overhaul and repair services from facilities at Bole International Airport in Addis Ababa. The facility employs an all-Ethiopian workforce of over 750 licensed technicians and support staff.

Éric Martel, President, Customer Services and Specialized and Amphibious Aircraft, Bombardier Aerospace said:

“Ethiopian Airlines is one of Africa’s most respected airlines and a valued Bombardier customer. Their commitment to excellence both in operations and maintenance services will benefit our operator base in the region and beyond, as a part of our network. Through sustained investment and focus, we continue to expand our support services in Africa and are looking forward to this new chapter of our relationship with Ethiopian.”

Tewolde Gebremariam, Chief Executive Officer, Ethiopian Airlines said:

“Ethiopian Airlines’ NextGen turboprops are proving their high value by delivering excellent passenger experience, operational flexibility and economics – confirming that they are excellent aircraft for operations in Africa. As a newly appointed Authorized Service Facility for Q400 and Q400 NextGen aircraft, we welcome the opportunity to expand our relationship with Bombardier, and to provide maintenance services to other carriers as an increasing number of these modern turboprops take to the skies in our geographically diverse continent.” 

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Bombardier and Air Côte d’Ivoire sign agreement for up to four Q400 NextGen aircraft

By BA Staff

Bombardier Aerospace announced that Abidjan-based Air Côte d’Ivoire, the national airline of the Invory Coast, has signed a conditional purchase agreement for two Q400 NextGen aircraft with options for an additional two Q400 NextGen aircraft.

Based on list price, the contract value for two firm-ordered Q400 NextGen aircraft would be approximately $69 million US. Should the two options be converted to firm orders, the contract value would increase to $141 million US.

René Decurey, Chief Executive Officer, Air Côte d’Ivoire said:

“The dual-class-configured Q400 NextGen aircraft is ideally suited for our market; it will support passengers’ requirements and integrate well into our fleet. We will capitalize on the Q400 NextGen aircraft’s outstanding performance -- including its high speed and long-range cruise capability – as we look to modernize our fleet and expand our domestic and regional route network. Additionally, in West Africa, where average fuel prices are among the highest in the world and the highest on the continent, the fast, fuel-efficient Q400 NextGen turboprop airliner is the most cost effective and flexible regional aircraft solution for our operations.”

Mike Arcamone, President, Bombardier Commercial Aircraft said:

“We are proud that Bombardier is contributing to the growth strategy of Air Côte d’Ivoire, and that the carrier could potentially double the size of its current fleet with Q400 NextGen aircraft as it further develops its network of short- and medium-haul destinations. The Q400 NextGen aircraft is performing superbly in diverse environments around the world with some 50 customers and operators, and we are delighted to welcome Air Côte d’Ivoire to our family. Bombardier Commercial Aircraft continues to perform well in Africa, where we have captured 100 per cent market share over more than two years in the large turboprop segment."

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Palma Holdings signs LOI for up to eight new Bombardier Q400 NextGen turboprops

By BA Staff

Bombardier Aerospace announced that Palma Holding Limited (Palma) has signed a letter of intent to acquire up to eight dual-class Q400 NextGen aircraft. The agreement would cover four firm-ordered aircraft and four options. Palma intends to lease four aircraft to Ethiopian Airlines.

Based on the list price, the potential contract value for Palma's transaction covering four Q400 NextGen aircraft and four options would be approximately $282 million US.

Moulay Omar Alaoui, President, Palma Holding Ltd said:

"We are very pleased to become the first Middle Eastern lessor for Bombardier's Q400 NextGen aircraft, and the first lessor worldwide for the aircraft's dual-class configuration. We are working to conclude lease structures with interested airlines including existing Q400 NextGen aircraft operator Ethiopian Airlines. We have already concluded commitments with Ethiopian Airlines that will provide the carrier with additional development opportunities."

Mike Arcamone, President, Bombardier Commercial Aircraft said:

"Our customers' success with their Q400 NextGen aircraft in the Middle East and Africa is testament to the aircraft's unique ability to serve the diverse and challenging environment in the region. In addition, the Q400 NextGen aircraft's comfortable, quiet cabin provides an excellent experience for passengers; and the dual-class option allows flexible integration into carrier's network operations by providing seamless business class service to passengers,"

Ethiopian Airlines currently operates a fleet that includes 13 Q400s.

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John Dabkowski to join Amadeus

By BA Staff

Amadeus, a technology provider for the global travel industry, announced that John Dabkowski is to join the company’s Airline IT business unit, effective October 14 as Vice President Airline Commercial and will assume responsibility for commercial activities in Europe, the Middle East and Africa and the Americas.

Dabkowski joins Amadeus from Navitaire, the wholly-owned subsidiary of Accenture. Navitaire provides technology and business solutions to the airline industry on an outsourced basis. Dabkowski was managing director at Navitaire.

Julia Sattel, Senior Vice President of Airline IT at Amadeus said:

 “We are delighted to welcome an executive of John’s calibre to Amadeus. His track record is second to none in the industry and he brings with him a wealth of experience and insight that will be invaluable as we seek to extend our leadership in IT solutions. His arrival is great news for Amadeus and great news for our customers, as we are confident that he will play a significant role in the development and execution of our strategy.”

Dabowski had this to say about the partnership:

“Amadeus has a unique role in aviation, being at the heart of both IT and distribution for airlines. And with so much change in the industry right now there are many opportunities and challenges for the company and I’m very excited to be joining at this time and I’m looking forward to getting involved and making a contribution."

Dabkowski’s career in the technology industry stretches back more than 30 years to when he joined GEC Avionics direct from university. His career since then has taken him from London, where he worked with the IT group Logica, to Dallas where his roles with Sabre included Senior Vice President of the airline solutions division.

Dabkowski will report to Julia Sattel and be based in Amadeus’ headquarters in Madrid.

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Ethiopian Airlines reports record profits, stands behind Dreamliner despite fire

Image Credit: Konstantin von Wedelstaedt

by Vinay Bhaskara

African carrier Ethiopian Airlines has announced a record net profit of 2.03 billion birr (US $107.6 million) for the period from July 2012 - June 2013, up 178% from 734 million birr (US $39.2 million)year-over-year (YOY). Operating profitability also rose a healthy 170% YOY to 2.7 billion birr (US $143.1 billion), from 1 billion birr (US $53.0 million). While the carrier has not yet formally released its financial results, CEO Tewolde Gebremariam presented these figures as coming from Ethiopian's un-audited results for the period. The formal announcement of results should come soon.

Interestingly, Gebremariam attributed Ethiopian's profitability in part to the troubled Boeing 787-8 Dreamliners, citing the fuel savings driven by the aircraft's increased fuel efficiency. His comments come just a month and a half after an Ethiopian Dreamliner memorably caught fire at London's Heathrow Airport in early July (an incident later attributed to a Honeywell Emergency Locator Transmitter), and a three month long grounding of the aircraft due to battery issues earlier this year. Gebremariam admitted that the Dreamliners had caused some issues for Ethiopian this past financial year:

Definitely the incidents and grounding have some impact. We were very fortunate that coincidentally the grounding of the planes were in what we call slack season. It's a slow demand season. So were able to minimize the level of the impact.

However, he also said that the carrier has seen a demand boost from the Dreamliners:

Whenever we introduce the aircraft in any route, the load factor immediately increases, which means our customers love the plane, they are enjoying its features

Ethiopian says that it will take delivery of its remaining 8 Dreamliners on order (5 direct orders and 3 leases), bringing the carrier's active fleet of 787-8 Dreamliners to 12 (13 frames on the books but one is currently indisposed at Heathrow Airport). Ethiopian currently operates a fleet of 54 passenger aircraft (with 31 more on order - 14 Airbus A350-900s, 8 Boeing 787-8 Dreamliners, 4 Boeing 777-300ERs, and 5 Boeing 737-800s) serving 80 passenger destinations around the globe. Based in Addis Ababa, Ethiopian is a member of the Star Alliance partnership of global airlines, and is one of the world's fastest growing airlines.

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Etihad Airways signs code share agreement with Kenya Airways; strengthened ties with SkyTeam?

by Vinay Bhaskara

Abu Dhabi based Etihad Airways has inked a code share with Nairobi based Kenya Airways, expanding access to second and third tier African destinations for its consumers. Etihad Airways will place its code on flights by Kenya Airways to 27 destinations across Kenya Airways' African network. Meanwhile, Kenya Airways will place its code onto 32 onward destinations from Etihad's global hub. The Kenya Airways code will also be placed onto Etihad's daily Abu Dhabi-Nairobi service with 136 seat (16J/120Y) Airbus A320 aircraft, while Kenya Airways will launch a thrice-weekly service Nairobi-Abu Dhabi from mid 2013 onwards.

James Hogan, Etihad Airways President and Chief Executive Officer, said: “The partnership agreement with Kenya Airways is in line with our strategy of forming alliances with airlines around the world to enhance our network and marketing reach. This agreement will also allow both airlines to benefit from cost savings achieved through synergies and economies of scale.

Dr. Titus Naikuni, Managing Director and Chief Executive Officer, Kenya Airways, said: “The new codeshare partnership with Etihad Airways is a significant strengthening of the global network of both airlines, which provides more choice to all our passengers. As part of the agreement we are looking for greater collaboration and coordination on cargo operations, training and procurement opportunities which will make us more cost efficient and customer responsive.”

Code share agreements in and of themselves aren't huge news, but this agreement is notable because it marks increased ties for Etihad with the SkyTeam alliance. After fellow Gulf rival Qatar Airways broke tradition and joined the oneworld alliance, it has become increasingly speculated that Etihad will follow suit and join SkyTeam (Star Alliance is seen as too crowded for another middle-eastern carrier with Turkish Airlines already in the fold).

Etihad now has code share partnerships with nine SkyTeam carriers, including its founder member, Air France. While Etihad touts the benefits of its so-called "equity alliances" composed of its investments and reciprocal codeshares in European LCC airberlin, African regional carrier Air Seychelles, Australian carrier Virgin Australia, and Irish national carrier Aer Lingus, it would undoubtedly benefit from the increased feed provided by membership in a global alliance. While this particular agreement does not mean that a deal is imminent, it does add incrementally to the likelihood of Etihad joining SkyTeam.

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