Chinese Airline Shuns Comac C919 for Boeing, Wealthy Ditching Private Jets for Commercial, and More
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Here are the exciting aviation industry updates for today. Let’s get started.
Chinese low-cost carrier shuns domestic Comac C919 for Boeing planes
Greater Bay Airlines (GBA), a new Chinese-funded low-cost carrier, has chosen to purchase Boeing planes over China's Comac C919 passenger jet.
Although the C919 is China's first domestically produced passenger jet, the jet has yet to enter service for commercial airlines.
China Eastern Airlines suffered an engine malfunction in February, leading to delays in the C919's debut. GBA will purchase 15 Boeing 737-9s and has a commitment for five 787 Dreamliners.
The order is estimated to be worth between US$780 million and US$800 million. The chairman of GBA stated that the airline has no plans to acquire aircraft from Comac at present. Read more
Slow recovery for Asia-Europe air cargo market
The Asia-Europe air cargo market remains in recovery. The capacity on the Asia-Europe route increased marginally in the fourth quarter of 2022 but is still about 18% below pre-pandemic levels, according to rate benchmarking platform Xeneta.
Air cargo prices on Europe to the north-east Asia route went up quickly due to Russia's invasion of Ukraine, although rates are now declining.
The market has become more short-term driven from a price point of view as there has been so much uncertainty in the market. However, China is reopening to the world, and there are significant opportunities in Southeast Asia and India. Read more
The cost of 'options' on Hawaii flights: seat selection up to $304
Airlines offer various seat selections and early boarding options, causing further differentiation between fares. Hawaiian Airlines charges up to $272 for advance seat assignments, which can lead to an unexpected increase in airfare prices.
Southwest Airlines charges up to $50 for early boarding, while United Airlines offers "Economy Plus" with extra legroom at an additional cost of up to $304.
This means that fares for flights to Hawaii can unexpectedly double in price due to the added cost of seating options.
However, from an airline's point of view, airlines may use these fees to offset the cost of other services or amenities, such as in-flight meals or entertainment, which may be offered for free on some flights.
Airlines can generate additional revenue streams by charging for seat selection or early boarding to cover these costs and improve their profitability.
Overall, the strategy behind offering various seat selection options is to cater to different customer preferences, maximize revenue, and improve profitability for the airline. Read more
USAF taps Boeing to create next-gen E-7A Wedgetail early warning aircraft
Boeing has been awarded a contract by the United States Air Force (USAF) to develop two prototypes of the new E-7A Wedgetail early warning and air traffic control aircraft.
The new aircraft will replace the veteran AWACS (Airborne Warning and Control System) Boeing E-3 Sentry, which will be phased out gradually.
The E-7A Wedgetail will provide improved air-moving target identification and combat control, command, and control capabilities.
It also provides an advanced electronic scanning radar to increase air combat control and enable long-range kill chains with potential adversaries. The E-7A is scheduled for serial production for the USAF in 2025. Read more
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Wealthy ditching private jets in favor of commercial
According to data from the Airports Authority of India, the movement of private jets and helicopters in India fell by 17.1% during the last ten months.
Industry analysts say the decline is due to the shift to commercial jet use. Some people who bought private jets during the pandemic have since returned to commercial flights.
At the same time, other industry insiders predict demand for private jets will remain and grow in the long term, although not like during the pandemic. Read more
Emirates and Philippine Airlines sign interline partnership for seamless connectivity
Emirates and Philippine Airlines have signed an interline agreement to expand connectivity for passengers of both airlines through Manila and Dubai.
The reciprocal partnership provides Emirates’ passengers access to 19 Philippine domestic destinations operated by Philippine Airlines and two Asian regional points via Manila.
Meanwhile, Philippine Airlines’ passengers can connect to Emirates’ global network and seamlessly travel to 21 cities operated by Emirates beyond Dubai.
The partnership is expected to open new links for trade and tourism, and expand Emirates’ footprint in East Asia, according to Emirates’ Chief Commercial Officer, Adnan Kazim. Read more
Brazil's Embraer and Russia's Sukhoi in talks for small aircraft production in India
Brazilian aircraft manufacturer Embraer and Russian company Sukhoi have held preliminary talks with the Indian government to produce small aircraft in the country under the Make in India initiative.
The government of India will have a 51% stake in the partnership, and the foreign company will transfer the technology.
The 100-seater aircraft would enable better air connectivity to remote areas, boosting tourism and benefiting the economy.
India aims to increase its fleet of small aircraft to operate from airports with limited capacity and short runways. According to Airbus, India will need 2,210 aircraft by 2040, with 80% being small aircraft. Read more
airBaltic wet-leases four Airbus A320 aircraft for summer 2023
Latvian airline airBaltic has announced plans to wet-lease four Airbus A320 aircraft from Avion Express during the summer season of 2023, to meet increasing passenger demand and avoid flight cancellations.
Two of the aircraft will operate out of Riga, while one each will be based in Vilnius and Tallinn. The planes will be available in two configurations, and the crew of Avion Express has been trained to ensure the same level of service as airBaltic. Read more
Can aviation meet its net-zero emissions target? $1 trillion in carbon offsets needed, study finds
The aviation industry needs at least $1tn worth of carbon offsetting to become carbon neutral, according to a study by researchers at the University of California, Irvine.
If the industry continues with "business as usual," emissions are predicted to triple by 2050. The industry would have to spend $1tn on carbon offsets to achieve net-zero targets by that date.
Sustainable aviation fuels (SAFs) are one possible solution. Still, the study argues that covering aviation's energy needs would require doubling the world’s current production of biofuels and directing all of it toward aircraft fuel. Read more
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