Boeing at Farnborough, Airbus forecasts, richest routes and more

Boeing to show future at Farnborough
Boeing plans a major presence at this year’s Farnborough International Airshow to highlight how it sees the future of flying and space travel. The show runs from July 16-22 and Boeing will feature its plans for hypersonic aircraft, autonomous flight and manned space travel.

Chairman, president and chief executive Dennis Muilenburg says Boeing is coming to Farnborough after an exceptionally consistent and strong year. “We are excited to highlight these future technologies as well as our core product offerings with a unique new exhibit that will be open throughout the show," he says.

On the airfield, Boeing’s 737 MAX 7, which is scheduled to enter service in 2019, will make its air show debut with flying displays. A Biman Bangladesh 787-8 with new features will demonstrate why Dreamliners are so popular with airlines. Other Boeing commercial aircraft on display include an Air Italy 737 MAX 8, a Qatar Airways 777-300ER, two 747-8 freighters and a 767 converted freighter.

London Heathrow dominates top revenue routes
The world’s most lucrative routes in terms of airline revenue are New York-London, Melbourne-Sydney and London-Dubai. OAG analysis shows British Airways’ New York JFK-London Heathrow route is the world’s only billion-dollar route, raking in $US1.04 billion for the UK carrier between April 2017 and March 2018. That accounts for about 6% of BA’s total revenue and equated to $US24,639 an hour.

Qantas’ high-frequency Melbourne-Sydney operation was also one of four domestic routes in the top 10. This earned Qantas $US854.7m, or $US24,237 an hour. Not far behind was Emirates with $US819.4m on London Heathrow-Dubai, which produced the highest hourly revenue of any airline in the top 10 at $US25,308.

“Incredibly, five of the top 10 revenue earners are either to or from London Heathrow, which may explain the debate about the third runway, with the increased competition damaging those lucrative earners,’’ OAG’s John Grant says.

Airbus lifts market forecast
Airbus says airlines are expected to order 37,389 new aircraft between 2018 and 2037. This is up 7.1% from the 34,900 in last year’s Global Market Forecast report. The forecast replaces categories such as single-aisle, twin-aisle and very large aircraft with four market segments – small, medium, large and extra large. Airbus says airlines in the Asia Pacific region, including Air New Zealand, Fiji Airways, Qantas and Virgin Australia, will have the largest number of aircraft deliveries over the next two decades at 15,895. This comprises 12,494 in the small category, 2306 in medium, 617 in large and 478 in extra large.

Giants squeeze Mitsubishi ambitions
Boeing and Airbus have cast a shadow on Mitsubishi Regional Jet’s next phase of development. The Japanese company plans to debut with 70- to 90-seaters in 2020. But both Boeing and Airbus have gained control respectively of Brazil's Embraer, which offers 70- to 130-seaters, and Canada’s Bombardier, which specialises in 120- to 140-seaters.

Industry forecasts show smaller jets could be the fastest-growing segment. The big two will use this connection to airlines buying small planes first by then encouraging them to upgrade to larger planes. This could make it difficult for Mitsubishi, which has a parts distribution and maintenance partnership contract with Boeing, to develop its own larger models in the future.

Airbus renames Bombardier’s CSeries
Meanwhile, Airbus will launch a major marketing push at the Farnborough Air Show in mid-July.to push Bombardier’s CSeries aircraft, now renamed as the A220 family (picture shows an A220-300 in Jet Blue livery). “Our top priority is selling the aircraft like crazy,” Airbus chief executive Tom Enders says. To overcome production delays, Airbus is building a new assembly line at its Mobile, Alabama, facilities to augment Bombardier’s line at Mirabel, Quebec, and intends to be producing aircraft there in 2019.

Air India kowtows over Taiwan
Air India is the latest to bow to China’s demands that Taiwan be labelled Chinese Taipei on its website. The airline reportedly received the demand on April 25, two days before Prime Minister Narendra Modi held an informal summit with Chinese President Xi Jinping in Wuhan. Singapore Airlines, Japan Airlines and Air Canada are among major international airlines that no longer refer to Taiwan as a separate country on their websites.

India gets Singapore’s B787-10
Singapore Airlines will introduce Boeing 787-10 services to India from October 28 on the Singapore-New Delhi route. The largest Dreamliner variant will replace a B777 and has seating for 337 passengers in two classes. Singapore Airlines has 49 on order and is the largest customer. India surpassed the UK in visitor numbers to New Zealand in May with most travelling through Singapore while 75,000 New Zealanders went to India in the 12 months to May.

More connections to Tasmania
Virgin Australia will begin new direct Hobart-Perth service from September 17, the only airline to do so. It will operate three times a week using B737 aircraft. Virgin Australia has increased capacity on several Tasmania routes by up to 24%, including two services a week on both the Brisbane-Hobart and Sydney-Hobart, as well a seasonal once-weekly on Brisbane-Launceston.

Qantas restores A380s to Hong Kong
Qantas has put its flagship Airbus A380 back on to the Sydney-Hong Kong route, with the superjumbo replacing the Boeing 747-400s on most days through to August 16. Bookings aren’t available for the first class suites on Qantas’ Hong Kong flights. Instead, Chairman's Lounge members, Platinum One and Platinum frequent flyers booked into business class will be able to apply for upgrades.

KLM to end flights to Iran
Dutch airline KLM will halt flights to Tehran "as a result of the negative results and financial outlook." This follows the US withdrawal from the Iranian nuclear accord and the re-imposition of economic sanctions. The last KLM flight will leave Amsterdam on September 22 and return the next day.

KLM ceased flights to Tehran in 2013, resuming them in 2016 after the nuclear deal was signed. KLM’s associated airline, Air France, resumed flights to Tehran in 2016 after an eight-year absence and is continuing them. Last week, Lufthansa Group’s Austrian Airlines said it would cease its Vienna-Shiraz-Esfahan-Vienna route on September 15.

Route news of the week
China Southern Airlines will upgrade its Guangzhou-Christchurch route to a Boeing 787-9 from a 787-8 on October 29. The new aircraft will not offer a first class service. Emirates will cut its Dubai-Auckland service by one flight a week from April 16 (ex Dubai) to May 30 in 2019 due to planned runway upgrades at Dubai International Airport. Flights schedules will also be reduced on dozens of other services on its network. Austrian Airlines will withdraw its seasonal once-a-week Vienna-Havana and Vienna-Colombo services from October 30 and October 29, respectively. Qatar Airways will increase its Doha-Manchester service from 16 to 18 weekly from September 18. An Airbus A350-900XWB is scheduled to operate this route from October 28 on most flights, replacing a Boeing 787-8.

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