Enerjet to be renamed and transformed into an ULCC by Indigo Partners

An investor group led by Tim Morgan, has announced that it will launch a Canadian ultra-low-cost-carrier (ULCC) service in 2019, bringing affordable, low-cost air travel to millions of Canadians by this time next year.

Backed by significant financial commitments from a consortium of Canadian investors and Indigo Partners, LLC, a leading private equity firm specializing in the aviation industry, Enerjet, a licensed Canadian carrier, will be rebranded, expanded and transformed into an affordable air-travel choice for Canadian travelers. This Canadian ULCC will offer a simple, ultra-low-cost fare structure and an extensive network of destinations across Canada and into the US. Terms of the transaction, which closed today, were not disclosed.

As a co-founder, former director and former chief operating officer at WestJet, Canada’s second-largest airline, Mr. Morgan has deep expertise and experience in the Canadian aviation market and is well-respected by aviation professionals, industry partners, and regulators.

About Enerjet
Enerjet is a licensed Canadian charter airline based in Calgary that commenced operations with Boeing 737 Next Generation aircraft in November of 2008.

About the Investor Group
The investor group is led by a consortium of established Canadian investors. In addition to Tim Morgan, the consortium includes TorQuest Partners, one of Canada’s leading mid-market private equity firms, Claridge Inc. and Stephenson Management Inc.

About Indigo
Indigo is the world’s leading investor in ULCC’s with a successful track record as the lead investor in Tiger Airways, based in Singapore, and Spirit Airlines, based in Ft. Lauderdale, Florida. Indigo also maintains lead investments in Wizz Air Holdings, Plc, a ULCC with multiple bases in Central and Eastern Europe; Frontier Airlines, a ULCC based in Denver; Volaris Airlines, a ULCC based in Mexico City; and JetSMART, a ULCC based in Chile. Indigo is headquartered in Phoenix, Arizona.

Top Copyright Photo (all others by the airline): Enerjet Boeing 737-7BD WL C-GBEJ (msn 34480) YYZ (TMK Photography). Image: 905048.

Enerjet aircraft slide show:

Embraer and Republic Airways firm up an order for 100 E175s

Embraer and Republic Airways, the world’s largest E-Jet operator, have signed a contract for a firm order of 100 E175 jets.

This agreement was announced as a Letter of Intent (LOI) at the Farnborough Airshow, in July.

The firm order has a value of $4.69 billion, based on current list prices, and will be included in Embraer’s 2018 fourth-quarter backlog. Deliveries will start in 2020. The contract also includes purchase rights for an additional 100 E175s, with conversion rights to the E175-E2, bringing the total potential order up to 200 E-Jets.

Republic Airways and Embraer established their partnership in 1999 when one of its former subsidiaries, Chautauqua Airlines, took delivery of its first ERJ 145 in the livery of US Airways Express. Today, Republic Airline operates a fleet of nearly 190 Embraer 170/175 aircraft and provides fixed-fee flights operated under its major airline partner brands of American Eagle, Delta Connection and United Express. Including this new contract, Embraer has sold more than 535 E175s to airlines in North America since January 2013, earning more than 80% of all orders in this 76-seat jet segment.

Image: Embraer

United Airlines adds 11 new routes from Chicago, Houston, Los Angeles and Washington, D.C.

United Airlines has announced the addition of 11 new routes from its hubs in Chicago, Houston, Los Angeles and Washington, D.C. United’s new summer service, beginning in June 2019, will connect customers to popular summer vacation destinations in California, Colorado, Florida, Oregon, Michigan and Nova Scotia. Tickets are now available for purchase.

In 2018, United introduced 93 new routes across the United States, including 15 international routes – adding more flights than any U.S. airline. Today’s additions are part of United’s 78 domestic routes announced this year and build on the airline’s record network expansion.

Chicago to Colorado, Florida, Oregon and Nova Scotia

From United’s hometown hub, the airline will offer seven new routes connecting customers to Florida beaches, Oregon’s Willamette Valley and Cascade Mountains and the Colorado Rocky Mountains. Additionally, beginning June 6, United will offer daily service to the stunning coastline and scenery of Halifax on the Nova Scotia peninsula in Canada.

City	Depart	Arrive	Frequency	Aircraft
Chicago-Destin	9:15 a.m.	11:41 a.m.	Saturday, Sunday	CRJ-200
Destin-Chicago	12:15 p.m.	2:55 p.m.	Saturday, Sunday	CRJ-200
Chicago-Durango	10:00 am	12:12 pm	Saturday	CRJ-700
Durango-Chicago	12:50 p.m.	4:40 p.m.	Saturday	CRJ-700
Chicago-Panama City Beach	9:15 a.m.	11:41 a.m.	Saturday, Sunday	CRJ-200
Panama City Beach-Chicago	12:15 p.m.	2:55 p.m.	Saturday, Sunday	CRJ-200
Chicago-Grand Junction	10:00 a.m.	12:12 p.m.	Saturday	CRJ-700
Grand Junction-Chicago	12:50 p.m.	4:40 p.m.	Saturday	CRJ-700
Chicago-Eugene	7:30 p.m.	9:50 p.m.	Daily, year-round	EMB-175
Eugene-Chicago	11:40 p.m.	5:15 a.m.^{+ 1 day}	Daily, year-round	EMB-175
Chicago-Halifax, Nova Scotia	5:50 p.m.	10:52 p.m.	Daily, Summer	EMB-175
Halifax, Nova Scotia-Chicago	7:14 a.m.	8:40 a.m.	Daily, Summer	EMB-175
Chicago-Redmond	7:30 p.m.	9:45 p.m.	Daily, Summer	EMB-175
Redmond-Chicago	11:45 p.m.	5:15 a.m.^{+ 1 day}	Daily, Summer	EMB-175

Houston to Durango, Colorado, and Ontario, California

United’s new service between its Houston hub at George Bush Intercontinental Airport offers customers nonstop access for the summer season to outdoor summer fun in Durango and southwestern Colorado’s San Juan mountain range. United will also begin daily, year-round service between Houston and Ontario in southern California. From Ontario, customers can easily access four major interstates, including easy access to Los Angeles and Long Beach.

City	Depart	Arrive	Frequency	Aircraft
Houston-Durango	9:35 a.m.	10:55 a.m.	Saturday	EMB-175
Durango-Houston	12:20 p.m.	3:35 p.m.	Saturday	EMB-175
Houston-Ontario	9:30 p.m.	11:15 p.m.	Daily, year-round	EMB-175
Ontario-Houston	11:59 p.m.	5:10 a.m.^{+ 1 day}	Daily, year-round	EMB-175

Los Angles to Stockton, California

Beginning Aug. 20, 2019, United’s new, twice-daily service between Los Angeles and Stockton will provide Stockton travelers seamless access to United’s global network at its Los Angeles hub.

City

Depart

Arrive

Frequency

Aircraft

Los Angeles-Stockton

1:00 p.m.

5:10 p.m.

2:22 p.m.

6:32 p.m.

Daily, year-round

CRJ-200

Stockton-Los Angeles

7:41 a.m.

3:00 p.m.

9:10 a.m.

4:29 p.m.

Daily, year-round

CRJ-200

Washington Dulles to Traverse City, Michigan

Located on the eastern shores of Lake Michigan, picturesque Traverse City is an ideal destination for a summer vacation. In fact, fans of the National Cherry Blossom Festival in Washington can follow up with a trip to Traverse City, home of the annual week-long National Cherry Festival in July. United customers traveling between Washington, D.C. and Traverse City will enjoy the area’s freshwater beaches, vineyards and nearby national forest and state park.

City	Depart	Arrive	Frequency	Aircraft
Washington Dulles-Traverse City	9:00 a.m.	11:00 a.m.	Saturday	EMB-145
Traverse City-Washington Dulles	1:45 pm	3:45 pm	Saturday	EMB-145

Boeing delivers the first 737 MAX for Eastar Jet

Boeing has delivered the first 737 MAX (HL8340) for Eastar Jet, making it the first airline in Korea to operate the more fuel-efficient and longer-range version of the popular 737 jet.

Eastar Jet 737 MAX 8 Flyaway – December 19, 2018

Above Photo: Boeing.

Eastar Jet will take delivery of another 737 MAX 8 airplane later this month, which will join the airline’s existing fleet of Next-Generation 737s.

The MAX incorporates the latest technology CFM International LEAP-1B engines, Advanced Technology winglets, and other airframe enhancements to improve performance and reduce operating costs. In Eastar Jet configuration, the MAX 8 will be able to fly more that 3,100 nautical miles (5,740 kilometers) – 500 nautical miles farther than the previous 737 models – while providing 14 percent better fuel efficiency.

In addition to modernizing its fleet, Eastar Jet will use Boeing Global Services to enhance its operations. These services include Maintenance Performance Toolbox, which delivers real-time access to information technicians need to quickly resolve emergent airplane maintenance issues and keep airlines on schedule.

Based at Gimpo/Incheon International Airport in Seoul, Korea, Eastar Jet launched operations in 2007 with Next-Generation 737s. Since then, Korea’s low-cost carrier (LCC) market has grown significantly and has become the largest LCC market in Northeast Asia. Over the past five years, the market segment has grown more than 30 percent annually. Based on this growth and the introduction of the 737 MAX 8 to its fleet, Eastar Jet will be able to expand into new markets such as Singapore and Kuala Lumpur among other future destinations.

Route Map:

Malaysia Airlines sees a stable situation despite a challenging environment

Malaysia Airlines issued this statement for the third quarter:

Malaysia Airlines experienced a challenging third quarter with stiff competition, rising fuel prices and adverse foreign exchange movements, further exacerbated by crew shortages, especially in July and August.

Yield came under pressure in quarter three. This was in part due to the inability to deploy planned peak up-grading of aircraft to a widebody during the period, as a result of crew shortages which impacted revenue. The airline has since activated an extensive recruitment exercise, supported by an aggressive cadet enlistment and training programme to build a strong pipeline of crew and is confident that the situation will be stabilised by early 2019.

Notwithstanding the challenging operating environment, total Revenue Average Seat per Kilometer (RASK) remained resilient with an increase of 1.4% year-on-year (YoY). This was mainly driven by higher cargo revenue, up 29% YoY. On-time performance (OTP) also increased during the quarter, up by 8% YoY, as a result of improved operational efficiencies in engineering and ground handling.

Continued focus on improving customer experience and enhancing the product offering has seen an overall improvement in Customer Satisfaction Index (CSI), which was up 7% YoY, with the airline’s Net Promoter Score (NPS) increasing by a significant 21 points in the period. This was, in part, driven by improvements to the airline’s call centre which introduced an ‘After-Call Survey’ to obtain immediate customer feedback. Call centre satisfaction ratings are up 7% to 74%.

Malaysia Airlines became the first airline in Malaysia, and amongst only a small number globally, to launch on WhatsApp. Customers can now receive their booking confirmation and flight status via the messaging app, with a view to expand the range of notifications delivered in 2019. The airline also launched MHchat, a new feature designed to help travellers book flights, retrieve bookings and ask questions round the clock via Facebook Messenger.

Passenger load factors also increased in the quarter up by 3% with Malaysia Airlines. Recovery in international business continued in the quarter with a load factor of 81.7% in 2018 versus 78.4% in 2017.

Fleet developments during the period include the addition of the airline’s sixth A330-200 to its fleet of 21 A330s deployed on higher density regional routes across Asia Pacific. The B737-800s continue to provide domestic and regional connectivity while the airline prepares for delivery of 10 B737 MAX8 in 2020.

Malaysia Airlines’ A380-800s continue to service Project Amal, a division within Malaysia Airlines dedicated to Hajj and Umrah traffic. The division successfully transported more than 15,000 pilgrims during Hajj on over 80 flights between Kuala Lumpur, Jeddah and Madinah throughout July and September 2018. The airline’s A380s are also deployed to key markets, such as Sydney and Seoul, during peak times.

Group CEO Izham Ismail said: “The third quarter continued to be challenging with volatile fuel prices, unfavourable foreign exchange movements, as well as overcapacity in key markets compounded by the pilot shortage. Nevertheless, in line with our emphasis on customer experience, I believe our efforts in that area continue to show positive traction as evidenced by the improvements in our CSI and NPS ratings.

We are maintaining a strong focus on cost management and will continue to invest in aspects of the customer experience that deliver a competitive edge. Our pioneering digital initiatives, including the recently launched WhatsApp Business solution, exemplify this.

We have seen good quarterly traction in the year and we are expecting to finish 2018 by reducing the losses of the previous year. Moving forward, 2019 looks similarly challenging but we remain committed to improving performance and reducing costs whilst managing external factors beyond our control.”

Q3 performance

	Actual Q3 2018	Actual Q3 2017
Passengers (m)	3.47	3.40
Passenger Load Factor (%)	80.5%	77.5%
Passenger Yield (sen)	21.5	22.6
On-Time Performance (%)	74.9%	69.5%
Total RASK (sen)	21.2	20.9

Malaysia Airlines launches a Business Suite

Malaysia Airlines has announced the rebrand of its First Class cabin to Business Suite offering passengers new levels of luxury with ample cabin space and privacy. Starting 12 December 2018, the Business Suite will be available on all of the airline’s A350-900 and A380-800s.

The Business Suite is in response to the high traffic of business travelers on Malaysia Airlines, a product that offers an enhanced Business Class service at an attractive price point for passengers. The suite comes with a dedicated check-in counter, access to Malaysia Airlines premium First Class Lounge, 50kg baggage allowance as well as fine-dining experience onboard.

Malaysia Airlines Group Chief Executive Officer, Captain Izham Ismail said, “The new Business Suite was introduced in response to the growing demand of our guests. Our target is to enable the frequent flyer, looking for enhanced comfort, to now be able to enjoy a premium experience at competitive prices. We are confident that our new Business Suite will change the way people travel in business class.”

The Business Suite cabin will be available on the London, Tokyo, Osaka route and on the Sydney and Seoul route during the winter season.

Product details: Business Suite on A380-800

Located on the main deck with 1-2-1 seat formation
Total of 8 seats with enclosed monument (4 individual seats and 2 double seats)
Seat pitch of 89 inches and bed width of 40 inches
Full flat-bed length of 87 inches • Individual 23-inch IFE screen with widescreen aspect ratio of 16:9
Each seat comes with its personal closet and stowage for coat, luggage, laptop and personal belongings A350-900

Business Suite on A350-900

1-2-1 seat formation with direct aisle access
Total of 4 seats with enclosed monument and retractable privacy door (2 individual seats and 2 double seats)
Seat pitch of 83 inches and width of 23 inches
Full-flat bed length of 83 inches
Capacitive seat control offering personalised lounge position, independent adjustable leg rest, and massage and lumbar system
Individual 24-inch IFE with capacitive touchscreen and multi-touch gesture, video handset, widescreen, High-Definition clarity (1080p) with LED backlighting
Each seat comes with meal and cocktail table, feature light, vanity mirror, console stowage and magazine rack

Air Kiribati to add two Embraer E190-E2 E-Jets

Embraer has announced the signing of a contract with the Government of Kiribati, in partnership with their national airline, Air Kiribati, for two firm orders for the E190-E2 E-Jets and two purchase rights for the same model.

With all purchase rights being exercised, the contract has a value of $243 million, based on current list prices. The order will be included in Embraer’s 2018 fourth-quarter backlog.

Scheduled for a 2019 delivery, the E190-E2 will enable the flag carrier for the Republic of Kiribati, located in the central Pacific, to fly longer domestic and international routes than it currently does with its turboprop fleet.

Air Kiribati will be the launch operator for the E190-E2 in the Asia Pacific region (excluding China). This order comes after a three-week Asia Pacific tour of the ‘Shark’ livery E190-E2 in October, which included a stop in Tarawa, the capital of Kiribati.

Spanning four time zones and comprised of more than 30 islands, Kiribati is the only country in the world to be in all four hemispheres.

With a maximum range of up to 2,850 nautical miles, the E190-E2 can operate over the vast expanse of Kiribati, including from Tarawa directly to Kiritimati (Christmas) Island, one of the most challenging routes in the Pacific. The current domestic connection from Tarawa to Kiritimati includes an international stopover in Fiji.

The E190-E2 is part of Embraer’s new generation E-Jets E2 family of aircraft, which can seat between 70 to 150 passengers. The E190-E2 specifically, can seat up to 114 passengers, and is the first member of the E-Jets E2 family of aircraft to enter into service in April 2018.

Embraer has been present in the region since the first Bandeirante was delivered in 1978 in Australia and has been providing comprehensive support and services through the years to aircraft based in Australia and in the Pacific region.

Image: Embraer.

KLM to add Naples, Italy as a new destination

KLM has made this announcement:

In the spring of 2019, KLM will expand its network with service to the Italian port of Naples.

KLM’s 10th destination in Italy will only be served in the summer months.

The first flight to Naples will depart on April 21, 2019. KLM will operate Boeing 737-700/800 aircraft on the route.

In July and August, KLM will operate daily service to Naples, restricting service to weekends only during the rest of the season.

Photo: KLM.

Boeing forecasts demand for 2,300 new airplanes in India

Boeing raised its long-term forecast for commercial airplanes in India as unprecedented domestic passenger traffic and rapidly expanding low-cost carriers (LCCs) drive the need for 2,300 new jets – valued at $320 billion – over the next 20 years.

This year alone, more than 10 million passengers, on average, traveled within India each month.

“To meet this increased domestic air traffic growth, we see the vast majority of available airplane seats coming from LCCs,” said Keskar. “The success of this market segment will mean more than 80 percent of all new airplane deliveries in India will be single-aisles. And the superior economics and fuel efficiency of the new 737 MAX airplane will be the perfect choice for Indian carriers.”

According to Boeing’s Commercial Market Outlook (CMO), India’s commercial aviation industry has achieved 51 consecutive months of double-digit growth. This growth is matched in other sectors of the country’s economy.

“The Indian economy is projected to grow by nearly 350 percent over the next two decades to become the third largest economy in the world,” said Dinesh Keskar, senior vice president of Sales for Asia Pacific and India, Boeing Commercial Airplanes. “This will continue to drive the growth of India’s middle class and its propensity to travel both domestically and internationally, resulting in the need for more new fuel-efficient short- and long-haul airplanes.”

New Airplane Deliveries to India through 2037 by size

Airplane type	Seats	Total deliveries	Market value
Regional jets	90 and below	10	<$1 billion
Single-aisle	90 and above	1,940	$220 billion
Widebody	200 and above	350	$100 billion
Total		2,300	$320 billion

With more than five percent of the world’s fleet expected to operate in India by 2037, services will continue to be a major driver of growth in the region’s commercial aviation industry. Commercial services such as flight training, engineering and maintenance, digital analytics among others will provide airlines with optimal operational efficiencies as they continue to expand to meet growth in the marketplace. In the South Asian market, including India, Boeing forecasts a commercial services market valued at $430 billion over the next 20 years.

Formerly known as Boeing’s Current Market Outlook, the CMO is the longest running jet forecast and regarded as the most comprehensive analysis of the commercial aviation industry. The full report can be found at www.boeing.com/cmo.

MedAire publishes its Travel Risk Map for 2019

The 2019 Travel Risk Map is now available. The map shows the latest medical and security risk ratings around the world. The 2019 Travel Risk Map helps organizations and their flight departments in mitigating travel risks. See full press release below:

Volatility in the world demands vigilance and awareness to rapidly evolving circumstances. The 2019 Travel Risk Map provides a comprehensive overview of risks by destination to help organisations and their flight departments in mitigating travel risks.

The Travel Risk Map is produced annually by MedAire’s parent company, International SOS, and Control Risks.

“The Travel Risk Map captures risk from a global perspective, allowing businesses, managers, and the individual traveller to visualize potential trouble spots associated with upcoming travel destinations,” said John Cauthen, Director of Security, MedAire and Control Risks.

MedAire and Control Risks provide aviation security services to mitigate risks to crew, passengers, and aircraft.

“In an increasingly volatile but interconnected world, aviation operators need to ensure they have access to the most pertinent security information and services for their operations,” continued Cauthen. “Referencing the Travel Risk Map is the first step, beginning at the macro-level, to proactively build proper situational awareness.”

Medical Risk Ratings are determined by assessing a range of health risks and mitigating factors, including: infectious diseases, environmental factors, medical evacuation data, the standard of local medical care, availability of quality pharmaceutical supplies.

Travel Security Risk Ratings are based on the current threat posed to travellers by political violence (including terrorism, insurgency, politically motivated unrest and war), social unrest (including sectarian, communal and ethnic violence) as well as violent and petty crime. Infrastructure and environment are also considered where they are of sufficient magnitude to impact risks to travellers.

View the 2019 Travel Risk Map here.

MedAire and Control Risks provide a suite of aviation security services. Our goal is to ensure that flight departments have the right information at the right time to identify, assess and understand the risks to any flight at all stages of the operation, both in the air and on the ground.

Our approach is to cut through any implicit bias and exaggeration, avoiding unsubstantiated assertions and speculation in order to provide the most relevant and valuable information available. No other company can match the expertise and assistance provided by MedAire and Control Risks.

Learn more at www.medaire.com.