Japan Airlines is bringing the dream to Sydney.

 

Pushing ahead with it’s 787 expansion, Japan Airlines will be the first international airline to introduce Boeing 787 services to Sydney. Operating the daily JL771/772 service from Tokyo Narita, the Boeing 787-8 will replace the Boeing 777 currently operated from December 1.

Three months after the Boeing 787 Dreamliner was grounded in late-January, the aircraft and programme are back in the air. With safety fixes for the aircraft’s battery system approved by the Federal Aviation Administration, airlines are bursting with renewed confidence in the besieged programme and planning the aircraft’s re-entry into service on routes around the globe.

Both Japan’s All Nippon Airlines (ANA) and JAL each suffered separate fire incidents in the 787′s lithium-ion battery, and are now working to restore the Japanese public’s confidence in the aircraft before they resume services on June 1. Over the next few weeks both carriers plan to undertake more than 200 test flights for pilot training and battery system verification demonstrating to the public the safety of the aircraft.

With the arrival of the 787 into the Australian market imminent, airlines will soon have a host of new operational opportunities into the country. Initially for JAL, the substantial product upgrade, but capacity downgrade of the 787 reduces available seat capacity on the Tokyo – Sydney route by 24%; instantly improving Qantas capacity share and competitiveness on a market that has struggled since its 1997 peak.  However, the economics of the 787-8 provides the potential to introduce new routes and improved schedules to destinations across Asia and beyond, encouraging growth and allowing markets to mature with the potential to increase capacity with the 787-9 from sometime after 2016. Up-gauging to an aircraft with a similar operating cost, but significantly increased capacity also delivers airlines greater pricing flexibility, to stimulate even more demand through lower fares or the ability to extract higher margins from operations.

The unprecedented level of regulatory and developmental scrutiny afforded the 787 will ultimately deliver an exceptionally safe next generation aircraft. There may be some initial tepidness from passengers in booking on the 787, but ultimately the romance of a revolutionary aircraft will draw them back. It’s been a long wait, but the 787 is almost here.

Carry-on is booked to travel on the inaugural Sydney service, and will be bringing you all the excitement of the day. Stay tuned.

Boeing’s full page すみません (apology). Image: Yoshiaki Miura, Japan Times.

Peeking into British Airways’ chic new A380

British Airways’ new video gives a sneak peek into the onboard refinement of their chic new A380. BA has twelve A380s on order to be delivered by 2016, and will receive with the first three aircraft to be delivered in July, September and November. Configured in a four class 469 seat layout with , BA’s A380 will be deployed between London – Los Angeles from 15 October and daily London – Hong Kong services from 15 November.

British Airways is likely to deploy its A380 to other destinations in Asia including Beijing, Shanghai and Singapore; in line with strategic moves to increase its presence throughout Asia, particularly mainland China. In support of this, BA has signed a codeshare agreement with Cathay Pacific to take affect from 31 March, the final day of the Qantas/BA Joint Service Agreement (JSA). BA will initially place it’s flight code on Cathay Pacific’s services from Hong Kong to Cairns, Sydney, Melbourne and Perth.

“The best refinements are those you hardly notice. Deceptive in their simplicity, you may not notice them at all. Truly great design steps aside, leaving you with a sensation, a feeling. This was our ambition when designing the interiors for our next generation aircraft. Soon, our A380s will fly between London Heathrow, Los Angeles and Hong Kong. We hope, when you step on board, you can’t put your finger on exactly what makes flying in them so pleasurable.

More than 90 years of experience has taught us how to get things right and our intention is to make sure – on every second of every flight – you realise how flying with us makes you feel.” – British Airways

Tally ho!

What’s next for the 787?

The media loves fire on an aircraft. Fire scares people. Scaring sells news. Unfortunately, this comes to the detriment of Boeing and the 787 programme, which have faced intense scrutiny by media over a range of minor to hazardous issues, that question the safety of the aircraft.

The Boeing 787-8 suffered a series of incidents over the period, several of these a cracked windshield, minor fuel leak and brake issue are common operational issues. The FAA’s Emergency Airworthiness Directive (EAD) issued today focuses on the electrical architecture of the aircraft, specifically the safety of the GS Yuasa lithium-ion polymer battery, which has led to several incidents consistently traced back to the same issue:

04DEC2012 – United Airlines UA1146 diverted enroute due to an electrical malfunction. Multiple error messages, with flight crew requesting firefighters be vigilant of fuselage aft of wing area upon touchdown.

13DEC2012 – Qatar Airways grounded one of its 787 fleet due to an electrical fault upon arrival in Doha. CEO Akbar Al Baker wasn’t happy, jumped up and down, and shook his fists at Boeing.

17DEC2012 – United Airlines identifies a second electrical issue in a separate 787 to 04DEC incident.

07JAN2013 – Japan Airlines 787 JA829J suffered an incident on the ground at Tokyo Narita, in which smoke filled the cabin, and aft cargo compartment as a result of the APU battery in the rear electrical bay catching fire.

16JAN2013 – All Nippon Airlines (ANA) 787  JA804A operated NH692 diverted to Takamatsu when the crew received battery problem indications, and detected an acrid, burning smell in the cockpit. The aircraft was evacuated on landing.

Aviation safety regulators in India, Japan, Poland, Qatar and Chile have suspended 787 operations for an indefinite period, with Ethiopia and Europe’s EASA likely to follow suit.

The location of the Lithium Ion batteries in the Boeing 787-8. Image: Boeing ARFF Data.

Following the commencement of the regulatory review earlier this week, the FAA has determined that “the battery failures resulted in release of flammable electrolytes, heat damage, and smoke” there is sufficient enough risk of onboard fire, or other electrical issues, to cease the programme. An investigation already initiated by the National Transportation Safety Bureau (NTSB), will now widened and led by the FAA, supported by Japan Transport Safety Board (JTSB) and Boeing.

Why in the first instance did the FAA allow the aircraft to continue to fly after announcing the safety review?  Why was the FAA Administrator Michael Huerta, so emphatic in saying the 787 was safe after he had announced a review, and before the NTSB had concluded an investigation?

NTSB photo of the aft Lithium Ion battery following the fire on the JAL 787 in Boston. Image: NTSB.

During its certification period and the aircraft’s first 15 months in service the 787 has suffered ongoing problems related to its electrical system. The first aircraft to support fully electric architecture, this replaces pneumatic bleed air systems used to drive cabin pressure and onboard systems, and operates at a significantly higher capacity 1.5MW than any other aircraft.

To support these systems the 787 requires a battery that can efficiently produce enough energy, and currently only less-stable Lithium Ion polymer batteries offer that capability. Overheating or overcharging the battery creates ignitable metallic lithium.

After years of testing the batteries were approved by the regulator with special conditions, and demonstrated assurances that the system would could isolate and shutdown the batteries in this instance, and inflight fire would be contained. Yet the system safeguards failed to prevent either incident incident in Japan.

Navigating in uncharted territory.

Is the 787 programme a disaster? Certainly not, the 787 like the A380 is technological leap in the way aircraft are designed, built and flown. And, every revolution has its problems, see Airbus A380, Boeing 747, Comet, Viscount.

These aircraft all suffered significant problems following their Entry Into Service (EIS). Who remembers the 747 having significant engine problems? All were eventually rectified. It is part of the natural development of aircraft that changes are made, and redesigns worked in, and changes made again. The number of Airworthiness Directives in worldwide circulation for all aircraft types demonstrates this.

With proven operational experience no customer is yet to cancel their orders over this incident, and none are likely too. Airlines awaiting imminent deliver of aircraft will be temporarily inconvenienced, Akbar Al Baker may jump up and down, and Boeing’s reputation will take another hit, but that doesn’t mean they lack faith in the aircraft’s future. The more resources pushed into engineering the 787 now, the better it will become.

As with the DC-10 and the A380 after QF32, it’s no surprise travellers will book away from the 787 for a period of time, concerned about reliability. But they will come back, they have loved the 787 to date. With this level of regulatory and developmental scrutiny we’re going to end up with an exceptionally safe next generation aircraft. It’s a matter of when, not if that happens.

The full statement from the FAA. Boeing’s full statement on 787 action.

This paper is excellent background reading on the FAA’s only other commercial grounding of the McDonnell Douglas DC-10.

 

 

Airline Statements on suspension of 787 ops

Qatar Airways has now issued the following statement on suspension of 787 services:

In compliance with the recommendation of the Federal Aviation Administration of the United States (FAA) and in coordination with the Chilean Aeronautical Authority (DGAC), LAN announces that it will temporarily suspend the operation of its three Boeing 787 aircraft.

Flights that were scheduled to be operated by the 787 will be temporarily replaced with other aircraft in our fleet to mitigate any potential impacts that this situation could cause to its passengers and cargo clients. The safety of the operation and its passengers is LAN’s top priority and the company regrets any inconvenience that this may cause.

Chile’s LAN Airlines part of the LATAM group, has also issued its own statement:

In compliance with the recommendation of the Federal Aviation Administration of the United States (FAA) and in coordination with the Chilean Aeronautical Authority (DGAC), LAN announces that it will temporarily suspend the operation of its three Boeing 787 aircraft.

Flights that were scheduled to be operated by the 787 will be temporarily replaced with other aircraft in our fleet to mitigate any potential impacts that this situation could cause to its passengers and cargo clients. The safety of the operation and its passengers is LAN’s top priority and the company regrets any inconvenience that this may cause.

Ethiopian Airlines issued in the following statement:

Ethiopian Dreamliners have not encountered the type of problems such as those experienced by the other operators. However, as an extra precautionary safety measure and in line with its commitment of putting safety above all else, Ethiopian has decided to pull out its four Dreamliners from operation and perform the special inspection requirements mandated by FAA.

Qantas previously expressed its continued support for the 787 programme on 16DEC:

“Boeing has kept the Qantas Group fully informed about the performance of the 787 since it entered commercial service in 2011. We are confident that the current issues will be resolved before Jetstar receives its first aircraft as scheduled in the second half of this year.”

Click here for more coverage on the 787 EAD action.

The full statement from the FAA.

British Airways: “Down under’s not over”

There’s a great modernity about British Airways’ simple but stylish Australian newspaper advertisement. Taking a subtle, cheeky swipe at Qantas following the ending of the Joint-Service Agreement in favour of Emirates, British Airways is keeping calm and carrying on.

BA will upgrade all its Australian services to new B777-300ER aircraft from March 30, 2012. Timed to match the commencement of the Qantas Emirates partnership, the introduction of the aircraft with upgraded long-haul product, and BA’s shift of Australian services from London Heathrow’s T3 to its T5 hub marks another competitive upgrade in the fierce Australian international market.

The move is part of BA’s renewed focus on the Asia-Pacific region. BA will commence five weekly services to Seoul from next month, and three weekly services to Chengdu from September 2013. In addition, BA is likely to recommence schedules to Kuala Lumpur and Taipei, markets the carrier exited in 2001, as well as new services to additional cities in mainland China.

British Airways served Taipei from London and Hong Kong as British Asia Airways (英亚航空) until 2001. British Asia Airways was incorporated to overcome a now overturned Chinese Central Government policy prohibiting national carriers serving mainland China from serving Taiwan. Image: Daryl Chapman.

There is also nothing delicate about British Airways’ new oneworld push. For many years oneworld has been quiescent, foundering without a meticulous leader as Star Alliance has in Lufthansa. But the signs are this has changed, limited by expansion options at London Heathrow, British Airways and its parent company International Airlines Group (IAG) are making an active effort to engage and mold oneworld into an entity that supports BA’s sustainable growth and underlying business goals.

British Airways has already formed a comprehensive JV partnership with oneworld member and long-time Qantas partner Japan Airlines, and invited Qatar Airways to join oneworld in 2013/14. Could BA’s Asian focus see the airline engage Malaysia Airlines in place of Qantas to expand in South-East Asia?

A British Airways led quadruple entente would secure a network between Australia and Asia to Europe covering all major traffic paths via Northern and South-East Asia and through the Middle East. Image: GCMapper and Carry-ON.

Malaysia Airlines has much to offer BA, with a South-East Asian network, services to every major Australian city, and code sharing agreements with Japan Airlines, as well as oneworld members-to-be Qatar Airways and SriLankan Airlines already in place. To leverage this through an alliance or a comprehensive JV between the three carriers opens up incredible network and traffic flow options as the map shows. The grouping would be well placed to gain a formidable position in the growing high yield markets driven by Asia’s growing middle class, and provide substantial traffic feed into BA’s long haul network in Asia, and connections to BA short haul services across Europe.

oneworld is on the brink of change, and British Airways is now firmly at the helm. Tally ho.

While distracted by partnerships, Qantas sneakily changes their traffic stat reports.

Turning away from the giddy heights of Qantas’ new global focus for just a few moments, and back home it seems Qantas’ is a bit sore.

Qantas has been publishing monthly yield and traffic statistics for all Group business since 2000. However, yesterday while everyone was distracted by Qantas-Emirates announcement speculation, the airline released its July traffic statistics, and for the first time published only qualitative, not quantitative yield data.

Why is this important? Yield is the amount of profit an airline makes per passenger after all costs have been attributed for.

Australian Domestic yields (comprising Qantas Domestic, QantasLink and Jetstar Domestic) were lower than the prior period (July ’11), and Qantas mainline Domestic passenger numbers were also down 2.6% with seat factor down 4.3% to 77.7%. A fare war looms large as all four domestic Australian carriers increase capacity in the market, and as competition between Qantas and a ‘game on’ Virgin Australia escalates both carriers profitability will suffer.

Qantas says “going forward, yield commentary in the monthly traffic statistics will be qualitative in line with international and domestic peers”, the airline is playing coy. Competition in the Australian domestic market has not been this intense since prior to the collapse of Ansett.

“A momentous day in aviation”

This is the label Tim Clark gave to today’s announcement of the partnership between Qantas and Emirates. For Emirates, it is merely an endorsement that its strategy and positioning has worked. For Qantas, the agreement represents a considerable strategic shift, forcing the airline to finally acknowledge many of the operational issues that should have been acknowledged up to a decade ago.

From 1 April 2013, Qantas’ services to London will operate ‘The Falcon Route’ via Dubai. Subject to regulatory approval, the centerpiece of this strategic is an 10 year operational partnership with Emirates Airlines which includes integrated network collaboration with coordinated pricing, sales and scheduling as well as a benefit-sharing model. Akin to having fully metal-neutral Anti-Trust Immunity, the agreement also provides scope for further expansion, Alan Joyce saying “the two airlines can do a lot more together into the future.”

The partnership “representing a step-change for the aviation industry” while true, is ironic. Qantas has essentially endorsed Emirates strategy and positioning, something it has vehemently fought against and accused of everything from receiving subsidies to capacity dumping for years. Even after the Qantas rhetoric, will passengers buy this sudden strategic shift? Perhaps.

Why? Sure, it doesn’t deliver Qantas operated services to passengers outside Melbourne or Sydney. What it does represents a fundamental change in airline thinking, that Qantas recognises the importance of the mature and continuously developing expectations passengers have of airline alliances. It recognises that passengers will fly if the alliance can take you where you want to go, with the benefits you deserve with full reciprocity. Something which has become murky in the wider world of airline alliances.

The alliance is risk averse, it allows Qantas to minimise its exposure to the European market and the trans-Tasman market, where Emirates with its much lower margins and cost structure is more competitive. The association with a brand considered to be one of the world’s best, will also dramatically enhance Qantas’ international exposure.

“It’s not you, it’s me”. On 31 March 2013 Qantas will end the 17-year Joint Services Agreement with British Airways, the breakup an indication that in today’s operational environment the alliance wasn’t delivering from an operational, passenger experience or yield perspective. Qantas will also cease to fly the Kangaroo Route to Europe, just over 65 years after the airline first started flying the route on 1 December 1947. Services to Frankfurt will also be suspended, a route that has long not been profitable because of high jetfuel prices, the Boeing 747-400s full burn and high-aircraft weight.

The following slide from the Qantas presentation gives an idea of the significant markets the Qantas-Emirates partnership will open up:

“Qantas alone can’t take pax everywhere – but together Qantas & Emirates can take Australians just about anywhere. With style.” Alan Joyce, Qantas Airways CEO

The partnership doesn’t extend across Asia, with QF/EK connections only available to Emirates services through Singapore and Bangkok. In addition, Qantas codeshare services with Cathay Pacific and Air France to Rome and Paris respectively will also be cancelled. Changes have also failed to address Qantas’ neglected international markets from Perth, Adelaide and Brisbane.

Perhaps more important than the partnership, is Qantas acknowledgement that its Asian services need to be transformed. For many years Qantas has neglected the region home to our biggest trading partners and inbound tourism markets. Services to the region will be enhanced, with new flights and changes to schedules in recognition of a need to be more business friendly. Will Qantas actually receive a portion of the 15 Boeing 787-8s it subsequently directed to Jetstar in support of this? Time will tell.

Back in 1996, Qantas entered into a partnership with an emerging carrier, Emirates. When it ended, no one noticed. How things change in 15 years. Now the world is watching, and it seems everyone else, especially John Borghetti, was right.

The Qantas-Emirates partnership website can be found here. And, Qantas’ full statement here.

Go back to top