Hainan Airlines commences Beijing Chicago non-stop flights

by BA Staff

China's Hainan Airlines commenced non-stop service from Chicago to Beijing, opening the airline's newest American gateway. Currently the flight operates twice a week using an Airbus A340-600 seating 288 passengers in a three class configuration. The airline is hoping to obtain government approval to change equipment to a two class Boeing 787 Dreamliner in November, and to increase frequency to four times a week in December, and to a daily by June 2014.

Hainan's Dreamliner will feature 36 fully flat-bed business seats configured 2-2-2, as well as 177 economy seats configured in the bone crunching 3-3-3 nine abreast configuration. Each seat has a 15-inch touch screen panel and a power outlet. Each business seat also has a USB port.

The current schedule is:
HU498 departs Chicago O'Hare International Airport (ORD) at 3:25 pm and arrives in Beijing Capital International Airport at 7:05 pm the following day.
HU497 departs Beijing at 12:35 pm and arrive in Chicago at 1:25 pm the same day.

On the A340-600, Business class passengers are pampered with priority check-in and access to the lounge. On board, they can relax in luxurious seats that convert into comfortable (160 degree reclining) seats and feature turn-down service complete with fluffy pillows, fine cotton sheets and a duvet, pajamas and slippers. First class passengers enjoy a fully flat bed with the same amenities, gourmet Chinese or western cuisine and wines are served on fine china, glassware and linens; customers may choose when they wish to dine. Freshly brewed coffee and a selection of teas are available. Amenity kits feature famous Bulgari® cosmetics. Individually controlled entertainment system offers over 100 movies, audio selections and games on demand.

In Beijing, with advance reservations, premium passengers are treated to complimentary private Mercedes-Benz® limousine service both on arrival and departure. Those making connections to other Chinese destinations may take advantage of the new business class lounge in Terminal 1 offering a wide range of luxurious amenities.

Economy class passengers can also enjoy complimentary beverages, meals, snacks as well as the same on-demand entertainment system on individual seat-back screens. If connecting in Beijing, an exclusive transit lounge is open to economy class passengers as well.

Visit Hainan Airlines.

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MAP: All of the announced routes by airlines for the Boeing 787 Dreamliner

To date, the only carrier to enter the new super-efficient Boeing 787 Dreamliner into service is Japan-based All Nippon Airways (ANA). However, numerous airlines have announced their planned operations for the Boeing 787 as follow:

1. ANA (already in service)
2. Japan Airlines (already delivered; will enter service in March)
3. Air India (already delivered; entry into service [EIS] TBD)
4. Ethiopian Airlines (planned operations begin in June)
5. Jetstar
6. Qatar Airways
7. Hainan Airlines
8. United Airlines

This map summarizes all of the international 787 routes announced by these operators. See more 787 articles.



The launch operator of the Boeing 787 is All Nippon Airways (ANA), who operates the aircraft on a host of domestic services within Japan (centered on their Haneda hub), as well as on a select few global routes from their dual Tokyo hubs at Haneda and Narita (Beijing and Frankfurt from Haneda). ANA has 55 787s remaining on order, with 5 already delivered.





Africa's fourth largest airline Ethiopian Airlines will be using the Dreamliner on services within Africa/Middle East, as well as to the Far East and Guangzhou. Ethiopian has ordered 10 Dreamliners.



The world's largest airline, United Airlines, had previously announced Houston-Lagos on the 787, but due to delays, it has already commenced that route on Boeing 787 equipment. The only currently planned route for the 787 is Houston-Auckland. United has an even 50 Boeing 787s ordered.



Japan's second largest airline, Japan Airlines has announced a host of international routes from both Narita and Haneda; the route to San Diego is notable as San Diego's first ever nonstop Asian flight (Philippines Airlines has served it in the past with a one-stop flight). JAL has 45 787s on order, and will become either the first or second carrier to induct 787 operations to India(Delhi)depending on the new timeline for Air India's 787 integration.



India's beleaguered national carrier Air India is currently "planning" to induct its 787s first on the long rumored Delhi-Melbourne route. However, it is still uncertain whether the airline will take full delivery of its order for 27 787s. We have pictures of the planned Air India 787 interior here.



Middle East heavyweight Qatar Airways has 30 787s on order, but has only announced service on Doha-London Heathrow thus far.



China's fourth airline, Hainan Airlines has applied for long haul services to the US from Shanghai for their first batch of 787 routes (out of an eventual order of 10), a curious choice given that their primary hubs are located in Haikou and Beijing.



Finally, the low cost wing of Australia's Qantas, Jetstar, has announced a series of 787 routes from its Asian hub in Singapore. It is eventually planned that all Singapore widebody operations by Jetstar will become 787s, with the currently used A330-200s being transferred back to parent carrier Qantas. Qantas Group as a whole has ordered 55 Boeing 787s.



In addition to these announced routes, LAN, the third largest South American airline, will announce its initial planned 787 routes at the International Air and Space Fair, FIDAE, in Chile this month on March 27th. Meanwhile, fellow OneWorld member British Airways has said that it will use the Dreamliner on services to Asia without denoting specific destinations.

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Can Hong Kong Airlines make long haul premium-class only service work

Picture by Alex Chau. Used under GNU License.

On November 7th, 2011, Hong Kong based Hong Kong Airlines, a subsidiary of Hainan Airlines Group, announced that it would be launching an all-premium nonstop service between Hong Kong and London, beginning in March of 2012. The service will be offered on Airbus A330-200 aircraft configured in two classes; Club Premier and Club Classic. Club Premier will feature 34 full lie-flat seats in a 1-2-1 configuration. Club Classic will feature 82 angled-lie flat seats in a 2-2-2 configuration (akin to most short haul regional business classes). The carrier plans to offer full lounge access on both ends of the route (a given), in-seat entertainment, WiFi, and the usual catering and amenities for a business class cabin.

Long-haul premium-only travel has a history of not working out well

Setting aside the vagaries of actually making such an operation work, it's important to note that business-class only travel has not worked out very well over the past 10 years. Take the examples of MAXjet Airways and Eos Airlines, to name just two.

MAXjet and Eos were both upstart carriers (which this new carrier will be in terms of long-haul premium traffic)who operated long-distance flights between London's Stansted Airport, and the United States. Both of these operations failed within a few years of operation, mainly because they forgot a very key fact about premium travel; it's hard to capture a large share of profitable traffic without brand recognition, especially when an airline's operations are based out of a city's secondary airport.

This story has been paralleled around the world (with carriers such as SilverJet and OpenSkies), and over time, the only carrier to sustain long-haul business class-only flights on widebody equipment is Singapore Airlines.

Hong Kong Airlines suffers from a lack of brand recognition

As with Maxjet and Eos before them, Hong Kong Airlines lacks significant brand identification amongst premium Hong Kong based travelers. When taken together with sister carrier Hong Kong Express Airways, Hong Kong Airlines is seen as decidedly a leisure player within the Hong Kong business travel market. Corporate contracts reside almost entirely with Cathay Pacific, and the fare premium for Cathay in business and first class routinely tops 100%.

Given these institutional disadvantage, it will be imperative for Hong Kong Airlines to streamline their operation to maximize value for the high-paying customers. If they have to resort to selling discounted tickets on par with one-stop flights Hong Kong-London. As of right now, they would likely be the fourth choice for business class travel between London and Hong Kong (behind Cathay, Air New Zealand, and British Airways); they must become at least on par with the other three for the service to work.

Serving London-Heathrow is key to the success of the new flight

While Hong Kong Airlines will obviously be based at Chep Lap Kok (HKIA) on one end, will they be able to get slots at London-Heathrow (the preferred airport for London business travelers)? Moreover, will the slots they acquire be optimized for business traffic? As we pointed out above, Hong Kong Airlines suffers from a lack of brand recognition in Hong Kong. If the service is to work, they must utilize optimal flight times for business travelers; generally late evening departures and early morning arrivals.

But Hainan Airlines currently posesses no slots at London-Heathrow, and even if it were to procure slots; it is likely that they would not be at optimal times; these slots are by the most coveted. Thus, if Hong Kong Airlines wanted to time their flights optimally, they'd have to serve London Gatwick or Stansted; neither of which is a preferred option for business travelers.

Hong Kong Airlines must create a strong hard and soft product for these flights

Taking the example of Singapore Airlines again, one must consider what exactly it is that allows them to succesfully operate premium-only service. By far the biggest differentiator is their superior service reputation; Singapore Airlines is widely lauded as the world's best carrier. This repuation is driven as much by the culture of service at Singapore Airlines, and the employees (especially the world famous Singapore Girl) as by the actual product itself (seats, IFEC, etc.). Realistically, there is not much difference between the hard business class products of various airlines, there are only so many amenities, so much seat pitch, and so many IFEC capabilities that can be added onto a flight, where the truly great carriers (and we'd put Cathay in this group service-wise), differentiate themselves is in their "soft product," the little things like using china instead of plastic for plates, and by far the most important, a superior atmosphere created by the flight attendants, gate attendants, and the like.

There will likely be very little difference between Cathay's hard product and Hong Kong Airlines'; and Cathay Pacific offers a first class cabin on the route. Thus Hong Kong Airlines must at the very least match Cathay Pacific's superb service experience; and that starts with their service employees.

Ultimately, Hong Kong Airlines will face a stiff challenge in making these new premium flights viable. Hong Kong based O&D passengers are most likely going to choose Cathay over them, forcing them to rely on lower-yielding connecting traffic. Perhaps they will re-time some of their Chinese flights to arrive before this new London departure. But even if they are able to fill these aircraft with connecting passengers, the service might not be fully profitable unless they are able to serve London-Heathrow.

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