Tag Archives: 787-9

Etihad Airways fires back, claims U.S. carriers got $71.48 billion in U.S. government aid

Keep The Skies Open

Etihad Airways (Abu Dhabi), like Qatar Airways and Emirates, has rejected the argument of the “Big Three” U.S. airlines that they have an unfair advantage over the U.S. carriers due to alleged government subsidies. The airline has now issued this statement which strikes back at the argument with their own study alleging the U.S. airlines receive benefits from the U.S. government including the Chapter 11 process which allow them to shed large amounts of debt. Here is the report:

Etihad logo

Research commissioned by Etihad Airways, the national airline of the United Arab Emirates, has quantified a range of government and court-sanctioned benefits and concessions received by the three biggest US carriers, Delta Air Lines, United Airlines and American Airlines Group, and other airlines with which they have merged.

These US airlines have received benefits valued at US$71.48 billion, more than US$70 billion of which has been since 2000, enabling the nation’s three largest carriers to transition from the verge of bankruptcy to today’s industry leaders, each achieving multi-billion dollar profits.

Last year, the three big US carriers generated collective net profits of US$8.97 billion, equivalent to 45 per cent of the total US$19.9 billion profits achieved in 2014 by the global airline industry. The trend has continued into 2015, with all three major US airlines announcing strong net profits for the first quarter.

The international consultancy The Risk Advisory Group, which conducted the research for Etihad Airways, identified that the majority of benefits which accrued to Delta, United and American came from restructuring under Chapter 11 of the US Federal Bankruptcy Code, yielding them at least US$35.46 billion, and additional pension fund bailouts totalling US$29.4 billion from the US Government’s Pension Benefit Guaranty Corporation.

Etihad Airways has consistently denied claims by Delta Air Lines, United Airlines and American Airlines that it received subsidies, and has stated publicly that it has received equity and shareholder loans from its sole shareholder, the Government of Abu Dhabi, the largest emirate and capital of the UAE.

Releasing the findings by The Risk Advisory Group, the General Counsel and Company Secretary of Etihad Airways, Jim Callaghan, said today: “We do not question the legitimacy of benefits provided to US carriers by the US government and the bankruptcy courts.

“We simply wish to highlight the fact that US carriers have been benefitting and continue to benefit from a highly favorable legal regime, such as bankruptcy protection and pension guarantees, exemptions from certain taxes, and various other benefits. These benefits, which are generally only available to US carriers, have created a highly distorted market in which carriers such as Etihad Airways have to compete.”

Mr Callaghan said the figures produced by The Risk Advisory Group were conservative, quantifiable and credible, and obtained from public records and statements.

Mr Callaghan referred to a 2011 interview, published by America’s National Public Radio, in which a former Vice President of Continental Airlines, Pete Garcia, was quoted as saying: “Bankruptcy, for the airline industry in particular, is just a way to refinance the business. It is a financial move to keep you in business and give you time to renegotiate with your lenders.”

The Risk Advisory Group identified the largest beneficiaries of Chapter 11 restructuring and bailouts from the Pension Benefit Guaranty Corporation as:

United Airlines, with combined benefits estimated at US$44.4 billion;
Delta Air Lines with combined benefits estimated at US$15.02 billion; and
American Airlines with combined benefits estimated at US$12.05 billion.

Of these figures:

United achieved one-time bankruptcy debt relief totalling US$26 billion, and pension termination benefits totalling US$16.8 billion;
Delta Air Lines achieved bankruptcy debt relief totalling US$7.9 billion, and pension termination benefits totalling US$4.55 billion; and
American Airlines achieved bankruptcy debt relief totalling US$1.56 billion, and pension termination benefits of US$8.08 billion.

These figures include restructuring and bailout benefits achieved by other US airlines, since absorbed by Delta Air Lines, United Airlines and American Airlines.

Mr Callaghan said the current claims by United Airlines, Delta Air Lines and American Airlines that they were being harmed by Etihad Airways were baseless, and an attempt to obstruct higher-quality competition.

“There is no evidence whatsoever of any harm caused by Etihad Airways to any of the three big US airlines,” Mr Callaghan said.

“The US Open Skies policy has delivered more choice and better service for millions of consumers, more airline access to and from America, and record profits for the biggest airlines in the US. It is time to refocus on the real issue here – that the Open Skies policy is delivering the benefits it was designed to deliver, and that everyone is a winner.”

Read the analysis by Reuters: CLICK HERE

Copyright Photo: Andi Hiltl/AirlinersGallery.com. Etihad Airways, along with Qatar Airways and Emirates, are buying the latest and newest aircraft from both Airbus and Boeing. Etihad Airways’ Boeing 787-9 Dreamliner A6-BLA (msn 39646) departs from Zurich.

Etihad Airways aircraft slide:

TUI Group finalizes its order for one Boeing 787-9, converts two 787-8 orders to the larger 787-9

Boeing logo (medium)

Boeing (Chicago, Seattle and Charleston) and TUI Group, one of the world’s largest integrated leisure travel companies, have finalized an order for one 787-9 Dreamliner with an option for one further 787-9. The order is valued at $257 million at current list prices. TUI Group also announced that it will substitute two unfilled orders for 787-8s for two 787-9s.

TUI Group logo-1

The European leisure group will operate a fleet of 13 787-8s from this summer and with today’s announcement will add three 787-9s to its fleet within the next three years.

The 787-9 complements and extends the 787 family. With the fuselage stretched by 6 meters (20 feet) over the 787-8, the 787-9 will fly up to 40 more passengers an additional 830 kilometers (450 nautical miles) with the same exceptional environmental performance – 20 percent less fuel use and 20 percent fewer emissions than the airplanes they replace.

There are six airlines in the TUI Group operating 144 medium and long-haul aircraft, including the 787. The airlines are TUIfly, Thomson Airways, TUIfly Nordic, Jetairfly, Corsair International and ArkeFly (Arke), serving more than 180 destinations around the world. Throughout its history, Boeing has delivered more than 165 airplanes to TUI Group airlines. As well as the orders for 787s, TUI Group also has ordered 60 737 MAXs.

In addition to TUI Group’s selection of the efficient 787 Dreamliner and 737 MAX, TUI Group is a partner on the Boeing ecoDemonstrator 757, which is currently testing new technologies to reduce airplane carbon emissions and noise.

Videos: The Thomson Boeing 787-8.

Video: Flight review: Thomson Boeing 787-8 to Puerto Plata: This is a flight review of our Thomson Airways Boeing 787-8 Dreamliner flight to Puetro Plata (Gregorio Luperón International Airport) in the Dominican Republic in the Caribbean. We flew in economy class called “Dreamliner Class” on the Dreamliner. All footage of the journey is filmed from the economy class cabin. Our flight crew was mainly British with a Scandinavian stewardess on board too. Our Thomson Airways Dreamliner (Boeing 787-8) had registration number G-TUIA and was named “Living the Dream”. Our flight started at Copenhagen Airport in Denmark and the aircraft passengers where mainly Scandinavians (Swedish and Danish nationality). Our charter holiday trips where booked via Star Tour (name for TUI in Denmark) (Fritidsresor as TUI are called in Swedish) which is the same as TUI travel in the UK and Germany.

Copyright Photo below: Evert Keijzer Ironbird Photography/AirlinersGallery.com. Jetairfly (TUI Airlines Belgium) Boeing 787-8 Dreamliner OO-JDL (msn 34425) beautifully flies over the English Channel in the 2012 TUI livery.

Jetairfly aircraft slide show: AG Airline Slide Show

 

 

 

United Airlines and Houston Airport System break ground on new Terminal C North, announces new Boeing 787-9 routes

United logo-1

United Airlines (Chicago), in partnership with Houston Mayor Annise Parker and the Houston Airport System, will break ground today (May 11) on the airline’s new Terminal C North concourse at George Bush Intercontinental Airport (IAH) (see below).

United Airlines is building an all-new Terminal C North concourse at its Houston hub that will feature floor-to-ceiling windows offering soaring tarmac views, expansive gate-lounge areas and 20 new dining and retail options near boarding gates.

Floor-to-ceiling windows in the new concourse will offer soaring tarmac views, expansive gate-lounge areas will provide higher levels of comfort and 20 new dining and retail options near boarding gates will give Houstonians and travelers connecting through the airport more of the varied options they enjoy.

The $244 million project will create a 265,000-square-foot facility, more than 100,000 square feet larger than the existing Terminal C North, with 11 passenger boarding gates to accommodate a mix of United’s narrow-, mid- and wide-body aircraft.

When construction on the new concourse is completed, the Houston Airport System will demolish the existing Terminal C North facility at Bush Intercontinental to enable the reconstruction of the Mickey Leland International Terminal D. The international terminal is critical to Bush Intercontinental’s extensive connecting air traffic, particularly for those customers connecting between United flights and flights operated by United’s international airline partners.

United expects to complete the new Terminal C North concourse in early 2017.

From Houston, United and United Express offer nearly 560 daily flights to more than 180 destinations around the world, including to Latin America, serving 51 nonstop destinations across Latin America and the Caribbean.

In related news, United Airlines has outlined its planned Boeing 787-9 Dreamliner introductions at Houston. According to Airline Route, United will introduce the new type from IAH to Rio de Janeiro on August 18 followed by Frankfurt on September 24. Buenos Aires will follow on October 25 and Amsterdam on December 17.

Copyright Photo above: Michael B. Ing/AirlinersGallery.com. Boeing 787-9 Dreamliner N19951 (msn 36402) arrives at Los Angeles International Airport.

Image below: United Airlines.

United Airlines aircraft slide show (current livery): AG Airline Slide Show

IAH Terminal C

Hainan Airlines to lease two Boeing 787-9 Dreamliners from ALC

ALC logo

Air Lease Corporation-ALC (Los Angeles) announced long term lease agreements with Hainan Airlines (Haikou and Beijing) for two new Boeing 787-9 aircraft, both from ALC’s order book with Boeing. ALC has ordered 46 new Boeing 787-9 and 787-10 aircraft in total for deliveries beginning in spring 2016.

Hainan logo

“We are pleased to announce that the first of these two new Boeing 787-9s leased to Hainan Airlines will be ALC’s very first Boeing 787-9 delivery. As the longest-range wide-body aircraft in Hainan’s fleet, these 787-9s will offer additional range and capacity capabilities beyond the airline’s Boeing 787-8 aircraft already in operation. This placement marks our third and fourth aircraft placed on long term lease with Hainan, following two 737-800s in 2010. We look forward to the continued growth of our relationship with this world-class airline,” said Jie Chen, ALC’s Executive Vice President and Managing Director, Asia.

Copyright Photo below: TMK Photography/AirlinersGallery.com. The new and larger Boeing 787-9 Dreamliners will compliment the existing smaller 787-8 Dreamliners. Boeing 787-8 B-2750 (msn 34942) departs from Toronto (Pearson).

Hainan Airlines aircraft slide show: AG Airline Slide Show

Bloomberg: Air India wants to order 14 Airbus A320neo aircraft

Air India logo

Air India (Mumbai) according to Bloomberg, quoting unnamed sources, is in negotiation with Airbus in order to acquire 14 new A320neo aircraft.

The flag carrier is also considering converting some Boeing 787-8 Dreamliners orders (seven remain on order) to the larger 787-9.

Read the full report: CLICK HERE

Copyright Photo below: Ole Simon/AirlinersGallery.com. The newer Airbus A320s would replace the older models. Airbus A320-214 VT-EDF (msn 4237) arrives in Dubai.

Air India aircraft slide show: AG Airline Slide Show

 

United to drop service to Stockholm and Oslo this winter from Newark

United logo-1

United Airlines (Chicago) plans to suspend winter service to Stockholm (Arlanda) and Oslo from its Newark hub between September 5, 2015 and May 4, 2016 according to a report by Reuters quoting a statement by the carrier.

United also expects to suspend one of its two daily flights between Newark and Paris from October 25 through March 26, 2016.

The carrier is reacting to weaker demand this coming winter season due to the strong U.S. dollar.

In other news, with additional Boeing 787-9 Dreamliner (below) deliveries, United will start to assign the new type to the Houston (Bush Intercontinental) hub on its routes to Latin America and Europe, replacing older Boeing 767-300 ERs.

Copyright Photo below: Michael B. Ing/AirlinersGallery.com. Boeing 787-9 Dreamliner N38950 (msn 36401) climbs away from Los Angeles International Airport.

United Airlines aircraft slide show: AG Airline Slide Show

AG Watch us grow

 

ANA introduces the Boeing 787-9 on its first international route

ANA Inspiration of Japan logo

ANA (All Nippon Airways) (Tokyo) on May 5 inaugurated its first long-haul configured Boeing 787-9 on the Tokyo (Haneda) – Munich route. Flight NH 217 was operated by JA836A, ANA’s third delivery of the stretched Dreamliner according to our partner ZipanguFlyer. Jakarta will be added in May.

Read the full report from ZipanguFlyer: CLICK HERE

Copyright Photo below: Steve Bailey/AirlinersGallery.com. Boeing 787-9 Dreamliner JA833A (msn 34524) lands at Paine Field.

ANA aircraft slide show: AG Airline Slide Show