European Transport Commission Wants “all-inclusive” Airline Tickets

June 1, 2011 | Filed under : Airline Industry

The European Commissioner for Transport, Siim Kallas, wants once in for all that all low cost airlines be required to show all-inclusive prices instead of tender prices which exclude additional fees and taxes.

The warning from the European Commission is unofficially aimed at the Irish airline, Ryanair, which advertises all of its flight with attractive prices. These prices though do not include administrative fees, £2 fee added in April to off-set the ash-cloud cancellations of 2010, other taxes and fees depending on the destination, the cost of paying by credit card and a mandatory £6 fee for checking-in online.

Nothing is ever as it appears with Ryanair. A one-way flight from London-Stockholm is advertised for £12 on their homepage but by the time you reach check-out, even if you opt out of all the extras like travel insurance, priority boarding, etc. the total is more than £20, almost double.

Siim Kallas is advocating for full price transparency so that consumers don’t feel cheated. Although this mainly concerns Ryanair, all airlines will have to follow suit. Apart from price transparency, airlines could also be banned from charging passengers extra to check-in online, carry luggage and even pay by credit card.

Until then, know that when you compare flight prices on liligo.com, the prices shown include all applicable taxes and fees for low cost airlines so there aren’t any surprises when you reach check-out. What you see is what you pay.

Passenger Airplane Industry : Boeing Sells 60 Next-Generation 737-800s

October 19, 2010 | Filed under : Airline Industry, Aviation, Boeing

The next-generation Boeing 737-800 appears to be world’s best-selling passenger airplane.

Boeing and the new leasing company Air Lease Corporation (ALC) have finalized an order for up to 60 Next-Generation 737-800s.

This order, first announced at the Farnborough Airshow in July, is for deliveries through 2017. In addition to 54 firm orders the deal includes six additional airplanes to be reconfirmed.

“Our management team has been working closely with Boeing for more than 30 years,” said Steven F. Udvar-Hazy, chairman and CEO of Air Lease Corporation.

“This order for Next-Generation 737-800s continues that great tradition. With this large and long-term commitment we’ll be able to offer our clients a most economical, fuel-efficient and versatile airplane, suitable for a variety of profitable missions.”

“The Next-Generation 737 is one of the world’s best-selling airplanes for a number of very good reasons,” claims Jim Albaugh, president and CEO, Boeing Commercial Airplanes.

“Airlines and lessors remain confident in the airplane’s ability to deliver outstanding, dependable operational and financial performance across the widest range of missions. We look forward to providing that continued value to Air Lease Corporation and its clients and to a long and successful continued partnership with Steven Udvar-Hazy and his new leasing company.”

United Airlines Seeks To Join American on LA-Shanghai Route

October 19, 2010 | Filed under : Airline Flight, Airline Industry, United Airlines

United Airlines announced plans Tuesday to launch a new service to China, just days after American Airlines received regulatory approval to start flights on the same Los Angeles-Shanghai route.

The prospect of American and United on the route also sets up a three-way battle between the global airline alliances that dominate the industry on the busiest route between the U.S. and Shanghai.

China Eastern Airlines Corp. Ltd. is the only airline flying non-stop between the cities, and is due to join the SkyTeam alliance headed by Delta Air Lines Inc. and Air France-KLM.

American, a member of the Oneworld grouping, has identified Los Angeles as one of five U.S. “cornerstone” cities that will be a strategic focus. Tom Horton, president of parent AMR Corp. (AMR), said in a recent interview to “stay tuned” for further expansion from Los Angeles. Its daily Shanghai service is due to start on April 5.

United, a unit of United Continental Holdings Inc. (UAL) and a member of the Star alliance, has applied to the Department of Transportation for permission to start daily service six weeks later.

The twin United and American applications appear to vindicate DOT’s recent granting of antitrust immunity to pacts involving all three alliances, despite concerns from some lawmakers and consumer groups about the impact on competition.

Regulators are increasingly using competition between alliances in their analysis, as well as that between individual airlines.

The recent award of Los Angeles-Shanghai to American still leaves room for U.S. carriers to launch another 21 weekly flights to China under 2004 aviation treaty between the countries that triggered a scramble for route rights. The global travel slowdown delayed the launch of many services and saw some rights handed back.

The U.S. and China are negotiating a new treaty to liberalize access.

American Airlines To Launch Direct Los Angeles-Shanghai Route

October 19, 2010 | Filed under : Airline Flight, Airline Industry, Aviation

American Airlines has said that it has obtained approval to operate a non-stop route between Los Angeles and Shanghai.

The carrier said that it will start offering the new service in April 2011 on a daily basis by using 247-seat Boeing 777 aircraft, configured with 16 first-class seats, 37 economic-class seats and 194 tourist-class seats.

With the new service, the carrier will be able to offer more aviation services in both cities. In addition passengers will have more opportunities to transfer flights to other destinations in Los Angeles and Shanghai: according to the carrier.

Los Angeles and Shanghai are the two biggest aviation markets for the U.S. and China.

American, British and Iberia Promise Better Deals on Trans-Atlantic Flights

October 19, 2010 | Filed under : Airline Flight, Airline Industry, American Airline, British Airways

A new airline alliance announced better deals on flights between the US and Europe.

Reportedly, more access to cheaper fares, bigger choice of flight times and easier connecting journeys shall become reality for transatlantic fliers with the launch of the new joint business between American Airlines, British Airways and Iberia.

According to media reports, the CEOs of the three oneworld® airlines met in London for the official start of the new trilateral relationship, which enables oneworld to compete far more effectively with other global alliances on routes between Europe and North America.

The new routes: American Airlines, British Airways and Iberia announced four new routes that will start from next April as an early benefit of the new joint business. They are: New York JFK-Budapest and Chicago-Helsinki (operated by American), London Heathrow-San Diego (operated by British Airways) and Madrid-Los Angeles (operated by Iberia).

The participating airlines have also placed code shares on a significant number of additional routes, greatly increasing the number of destination choices available to customers. American will add its code to 322 British Airways and Iberia flights serving 101 destinations, British Airways will add its code to 2063 American and Iberia flights serving 181 destinations and Iberia will add its code to 354 American and British Airways flights serving 96 destinations.

There will be further opportunities to increase code shares in the future. In total, customers will be able to travel more easily on the airlines’ combined route network, which will serve more than 400 destinations in 105 countries with around 5,200 daily departures.

Additional customer benefits include:
- Greater access to a wider choice of fares
- Coordinated schedules on joint routes to provide customers with better flight choice and timings
- Dedicated support teams for customers transferring at five of the airlines’ hubs: New York JFK, London Heathrow, Madrid, Chicago and Miami.
- Online check in and boarding pass printing with either the airline operating the flight, or the one the ticket was booked through
- Integrated online flight information on all three airlines’ websites
- Increased opportunity to earn and redeem frequent flyer benefits on transatlantic flights
- More integrated account management for corporate customers

Gerard Arpey, chairman and chief executive of AMR Corp, the parent company of American Airlines, emphasized: “We’ve been waiting for 14 years to be able to bring these benefits to our customers and it’s great news that we can now put our plans into action. Our revenue-sharing partnership will further boost one world, in what has been a momentous year for the alliance, and enable us to reduce costs and attract new business. It will provide additional stability for the airlines and our customers, employees and shareholders and allow us to invest in new products and services”.

Southwest Airlines Agree $1.4 billion to Buys AirTran Airways

October 3, 2010 | Filed under : Airline Industry, Southwest Airlines, United Airlines

Southwest Airlines, the nation’s largest low-fare carrier, said on Monday that it had agreed to buy its smaller rival AirTran Airways in a transaction valued at $1.4 billion, expanding its foothold in New York and Boston and allowing it to move into Atlanta, the nation’s largest airport.

The deal is valued at $3.4 billion when AirTran’s debt and aircraft leases are included. Southwest said the purchase had been approved by the boards of both companies, although it still needs regulatory and shareholder approval.

The move comes as the domestic airline industry is consolidating and reducing the number of seats offered as it attempts to return to profitability. United Airlines is taking over Continental Airlines on Oct. 1, after shareholders of both companies recently approved the tie-up and the government gave the green light. Delta Air Lines led the way in 2008 when it acquired Northwest.

The transaction is a sharp departure for Southwest, one of the nation’s few consistently profitable airlines. The company’s success had been built on a simple business model, operating the same type of Boeing 737 planes at a higher frequency between smaller airports.

But Southwest has been looking for ways to expand as its network grew. For instance, it had sought ways into the nation’s larger markets, like New York, Boston and Washington.

So far, Southwest’s presence in New York has been very limited. It has a few landing and take-off rights, called slots, at La Guardia Airport. As part of the United-Continental merger, Southwest had recently obtained some slots at Newark Liberty International Airport.

Southwest said the acquisition would increase its presence in New York and open the door to Atlanta, which is the nation’s largest airport and the hub of Delta Air Lines.

Analysts at Deutsche Bank said they expect the deal to gain swift regulatory approval given the speed with which the federal government approved the United-Continental tie-up and the fact that the networks of Southwest and AirTran do not overlap much.

Southwest said the transaction would save $400 million a year by 2013. It said the one-time costs related to integrating AirTran would be $300 million to $500 million.

The offer represents a premium of 69 percent over AirTran’s closing stock price on Friday. AirTran shareholders would receive a combination of Southwest shares and cash. That includes at least $3.75 in cash and 0.321 shares of Southwest common stock for each share of AirTran common stock.

Emirates Airlines to Order More Airbus A380 Aircrafts

September 21, 2010 | Filed under : Airline Flight, Airline Industry, Aviation

The head of Emirates Airlines has said orders for the A380 jet from Airbus might not be enough, considering improving passenger demand in the region.

Emirates president Tim Clark has said the airline’s record A380 jet order of 90 aircraft should have been a lot bigger.

Emirates Airlines is the world’s biggest airline by international traffic and is already the number one customer for Airbus’s 517 seat plane.

Emirates Airlines has 12 Airbus A380’s in its fleet, with another three to be delivered by November.

Deliveries will then restart in September of next year.

Global Air Cargo Traffic Growth Turned Positive

September 21, 2010 | Filed under : Airline Industry, Aviation, Cargo Flight

Air cargo traffic is also recovering after two years of contraction. Led by strong recovery in Asian exports, monthly world air cargo traffic growth turned positive in November 2009 after 18 straight months of decline. Air cargo traffic is now forecast to return to its 2007 peak by the end of 2011.

Growing world trade, stringent inventory control standards, increasing demand for transport of perishable and time-sensitive commodities, and the need to replace aging airplanes will create a requirement for 2,490 freighter deliveries over the next 20 years. About 1,750 of these will be conversions from passenger airplanes.

In the large freighter segment, more than half of the deliveries will be for new airplanes. Although the purchase price of converted large freighters is very attractive and conversions will continue to play an important supporting role, the performance and reliability advantages of new, purpose-built freighters are significant for intercontinental cargo operations, where larger, heavier payloads and range are crucial. Of the 770 large freighter deliveries, 520 will be new airplanes.

Most economies in the Asia Pacific region weathered the recent economic downturn well and are growing rapidly again. With China and India leading the growth among emerging markets, the region’s economy will grow at a rate of 4.6 percent per year for the next 20 years, significantly outpacing the world’s average growth rate. The region will see its share of the world GDP expand from 26 percent today to 34 percent by 2029.

Half of the world’s new traffic added during the next 20 years will be to, from, or within the Asia Pacific region. Total traffic for the region will grow 6.8 percent per year during the period. Driven by economic development and the increasing accessibility of air transport services, traffic within the region will grow faster than traffic to and from other regions. Shorter-haul flying, including domestic travel and international travel within the region, will grow 7.1 percent per year.

The region depends heavily on air cargo to transport goods over difficult terrain and vast stretches of ocean. Some of the world’s largest and most efficient cargo operators compete to transport high-value and time-sensitive exports to markets outside the region. Air cargo growth will total 6.8 percent per year during the next 20 years.

Rising passenger and cargo traffic is creating pressure for fleet growth. To modernize their fleets and meet the growing demand for air travel, Asia Pacific airlines will need 10,320 new airplanes, valued at more than $1.3 trillion, over the next 20 years. The number of airplanes in the Asia Pacific fleet will nearly triple, from 4,110 airplanes in 2009 to 12,200 airplanes in 2029. New airplane manufacturers have seized on the opportunity presented by this huge requirement to develop new competitors for the region’s aviation market.

Forecast deliveries to North America continue to decline as the region’s mature domestic market grows at a modest rate of 2.8 percent over the next 20 years. The majority (78 percent) of new regional-jet and single-aisle deliveries will be for replacement. Growth will be stronger on international services, which will grow 4.9 percent per year, driving demand for 1,180 new efficient twin-aisle airplanes such as the Boeing 787.

After several years of massive losses, the North American industry, led by low-cost carriers, is showing signs of improvement with a small operating profit for 2009. Despite modest profit, traditional network airlines are holding back on large-scale fleet renewals. North America accounts for only 14 percent of the world’s backlog. Airplane age will become an issue as fuel-thirsty, older airplanes weigh increasingly on earnings. Increased attention on aviation’s impact on global climate change will also be a factor in selecting airplanes that produce less carbon emissions.

The commercial aviation market in Europe remains resilient, despite the economic challenges in the region. European airlines took delivery of 340 jet airplanes in 2009. During the next 20 years, the region’s GDP is expected to grow 1.9 percent annually. Europe is forecast to take delivery of 7,190 new airplanes, valued at $800 billion over the same period. Single-aisle airplanes will account for 75 percent of the new deliveries, making Europe one of the top regions for single-aisle operations.

European airlines take environmental responsibility seriously. They are replacing older airplanes with new, more efficient airplanes. By 2029, only 4 percent of the airplanes currently in service will still be flying. The region’s airlines are also investing in biofuel research and working to improve air and ground operations to reduce fuel use and greenhouse gas emissions.

The Middle East continues to outperform the world in air travel growth. The only region in the world where international traffic increased during 2009, the region achieved a robust growth of 11.2 percent. Traffic remains strong as of the first quarter of 2010, with passenger traffic growing 25 percent and air freight 34 percent. Although the region’s oil wealth is certainly a driving force, the remarkable growth of air travel and growing prominence of Middle East carriers also owes to geography, demographics, improved airplane capabilities, and the airlines’ well-coordinated growth and investment plans.

Middle East demographics also favor continued air travel growth. Over half the population is under the age of 25 – the population segment that will account for much of the future market. By comparison, the average age in the United States, Europe, and China ranges from 35 to 45. Governments across the region are supporting more open access for aviation and investing in aviation infrastructure. Over the next three decades, $48 billion is committed to airport projects to significantly increase the number of passengers able to visit Dubai, Doha, Jeddah, Abu Dhabi, Cairo, Bahrain, Kuwait, and Muscat.

New-generation long-range airplanes can reach any point in the world from the Middle East, making the region an ideal connecting point between Europe, Africa, India, and Asia. Gulf airlines using “sixth freedom” agreements, which allow carriage of revenue passengers between two foreign countries with a stop at an airport in the home country, are an attractive, low-cost alternative to nonstop flights offered by European and Asian carriers. Middle East carriers have gained significant market share, with a 64 percent capacity share between the Middle East and South Asia, a 68 percent share to Europe, a 77 percent share to Southeast Asia, and an 80 percent share to Africa.

The major Arabian Gulf carriers have amassed a prodigious backlog of orders for the long-range airplanes necessary to compete in these markets. Emirates currently has 175 airplanes on order, all of them wide- bodied. Qatar has 143 airplanes on order, 123 of which are wide-bodied. And Etihad has a total of 106 on order, including 86 wide- bodied.

Six new low-cost carriers have emerged in the Middle East since 2003, largely targeting the youthful population and the large migrant worker population from India, Pakistan, Bangladesh, and the Philippines. Flying single-aisle airplanes on short- and medium-haul routes, these carriers have ambitious growth plans. Flydubai has 8 airplanes in service and 44 more on order. Air Arabia has 18 airplanes in service and 44 more on order.

Total air travel for Latin America will grow faster than the world average rate during the next 20 years. South American routes will lead the region’s growth, reflecting strong economic growth, continued investment in aviation infrastructure, and liberalization of airline ownership and traffic rights. In fact, the South American air travel market will climb to the seventh largest on our table of world regional flows by 2029.

The ability to offer attractive long-range services is helping the region’s airlines gain market share from global competitors. By 2029, airlines based in Latin America will provide 57 percent of the capacity to, from, and within the region, compared to 46 percent today.

The economies of the Commonwealth of Independent States (CIS) were recovering from a deep recession during 2009, the effects of the global contraction having been more severe in the region than in other emerging markets. The Russian economy shrank a dramatic 7.9 percent and the Ukrainian economy declined 15.1 percent. As of June 2010, the economic rebound has provided moderate relief.

Air traffic, however, has risen strongly. After a 9.4 percent drop in Russian domestic air traffic during 2009, the first quarter of 2010 showed a 33.5 percent increase, according to the Russian Federal Aviation Agency.

The CIS is the only region where there are fewer aircraft in operation today than there were 15 years ago. This reflects more on the changing composition of the airplane fleet than on the market for air travel. In the mid-1990s, less than 2 percent of the CIS fleet was Western-built aircraft – with only a few dozen Boeing and Airbus airplanes in operation. Today, nearly half of the fleet consists of more efficient Western-built airplanes.

The total economy of the continent of Africa is expected to grow 4.8 percent in 2010, following 2.9 percent growth in 2009. The worldwide recovery has stimulated demand, both for African export commodities and for imports to Africa of telecommunication equipment, machinery, pharmaceuticals, and manufactured goods. African airlines are projected to return to profitability for the first time since 2002 in response to the renewed economic activity and bolstered by what IATA Director-General Giovanni Bisignani describes as “a decade of cost-cutting, restructuring, and re-engineering.” Reflecting these developments, projections for African airline profits have been revised from the US$100-million loss anticipated three months ago to a Several trends suggest continued growth in African aviation. The continent’s jet fleet now averages 19.8 years of age in an era when increasing fuel costs require newer, more efficient aircraft. Most of the African fleet is single-aisle airplanes supporting flights within the continent and between North Africa and Europe, traditionally Africa’s principal trading partner. As the demand for African commodities grows and foreign development and tourism increase, African carriers will require a modernized fleet in order to compete on routes historically dominated by foreign carriers.

Global Aviation Industry Future : Airline Industry Expects Economic Recovery

September 21, 2010 | Filed under : Airline Industry, Aviation, Boeing

The global airline industry is making a robust economic recovery and will need $3.6 trillion in new aircraft over the next 20 years, Boeing Co. said Thursday, July 15 in its annual long-range forecast.

In all, airlines will need 30,900 new jets between now and 2029, with more than two-thirds of the demand for smaller single-aisle jets such as Boeing’s 737 and Airbus’ A320, Boeing said in its 2010 Current Market Outlook.

Airlines have seen a rebound in passenger and freight traffic this year and should return to profitability in 2011, company officials say.

“For passenger traffic in 2010 we’re expecting to see a 5 to 6 percent improvement over where we were last year; in terms of cargo, somewhere around 14 percent or more,” Randy Tinseth, Boeing Commercial Airplanes vice president for marketing, said in a recent briefing in advance of Farnborough International Air show in Britain.

Airlines have been able to manage their way through the economic downturn fairly well by keeping costs down, Tinseth said. “We’re starting to see more airlines returning to profitability – returning to profitability really before we expected it,” he added Boeing’s 20-year forecast is slightly brighter than last year’s, when it predicted demand for 29,000 aircraft worth $3.2 trillion for 2009-2028. This year’s report says 21,160 single-aisle jets worth $1.7 trillion will be needed, along with 7,100 twin-aisle planes such as the 777, 787 and Airbus’ A330-340 family, worth $1.6 trillion.

The world will need 720 large aircraft such as Boeing’s 747 and Airbus’ superjumbo A380, worth $220 billion, and just 1,1920 regional jets – those under 90 seats – worth $60 billion.

The report, now in its 46th year of public release, is widely regarded as the most comprehensive and respected analysis of the commercial aviation market, and reflects the improving, yet still unstable conditions facing the industry.

It noted that commercial aviation has weathered many downturns in the past. Yet recovery has followed quickly as the industry reliably returned to its long-term growth rate of approximately 5 percent per year. Boeing expects the same resilience in the first half of 2010 as the industry rebounds from the recent severe downturn. Passenger traffic is projected to rise 6 percent for the year, with similar annual growth rates for 2011 through 2014.

Responding to improving demand, global airline financial performance is forecast to improve to the break-even point in 2010, following a $10 billion net loss in 2009. Asia-Pacific airlines, reflecting the region’s strong economic growth, are forecast to lead the world in profits during 2010, followed closely by North American airlines, which are exercising capacity discipline. Emerging markets are expected to be profitable, led by Latin American airlines. Europe is the only region forecast to lose money in 2010, owing to the lagging economic outlook and airspace disruptions from volcanic ash.

Worldwide economic activity, reflected in the global gross domestic product (GDP), is the most powerful driver of growth in commercial air services and the resultant demand for airplanes. The global GDP is projected to grow at an average of 3.2 percent per year for the next 20 years. Reflecting the economic growth, worldwide passenger traffic will average 5.3 percent growth and cargo traffic will average 5.9 percent growth over the forecast period. To meet the demand for commercial aviation services, the number of airplanes in the worldwide fleet will grow at an annual rate of 3.2 percent.

Air transport throughout the world continues to change in response to market opportunities and challenges. New airline business models and the dynamic growth of air travel in the emerging economies throughout the world are diversifying the demand for airplanes. As global air travel declined in 2009, there were still many markets and business models that experienced growth. Over the next 20 years, 77 percent of demand for new airplanes will come from outside North America, with about 34 percent of deliveries going to the Asia Pacific region.

The Boeing forecast continues to predict that the greatest demand for new aircraft, by market value, will come from the United States, followed by China. Remarkably, the United Arab Emirates-with a population of less than 5 million, yet home to several highly competitive airlines-will be the third largest market by value.

The need to replace older, less efficient airplanes accounts for 44 percent of the projected market for new airplanes. The 2010 forecast anticipates 13,490 airplanes will be replaced over the next 20 years. This reflects rising fuel prices and the increasing economic burden of using older, less capable, and less efficient airplanes. At this replacement rate, 84 percent of the fleet operating in 2029 will have been delivered after 2010.

Today, there are 11,580 single-aisle aircraft in operation around the world, representing 61 percent of the total jet fleet. The single-aisle fleet is forecast to more than double, reaching 25,000 airplanes or 69 percent of the total fleet by 2029, largely reflecting the rapid expansion of air services in Asia, the rise of intraregional air travel in emerging economies, and the growth and geographic expansion of the low-cost-carrier model.

Among the 30,900 aircraft to be delivered over the next 20 years, 21,160 (69 percent of the units and 47 percent of the value) will be single-aisle airplanes. Demand for single aisles comes not only from growth markets, but also for replacing older aircraft such as the 737 Classics, A320s, and McDonnell Douglas MD-80/90s. It is forecast that there will be a wave of single-aisle aircraft retirements in the 2015 to 2017 timeframe as many of these older aircraft reach 25 years of age – a typical retirement age for jet aircraft.

The fastest growing market will be for twin-aisle airplanes. This segment is expected to grow at an average annual rate of 4.4 percent. The twin-aisle fleet will grow from 3,500 airplanes in operation today to 8,260 airplanes in 2029. In 20 years, much of the in-service fleet will be newer aircraft, such as the Boeing 787 and 777, which offer more passenger comfort, improved efficiency, and better environmental performance than the airplanes they replace.

The next 20 years will see 7,100 new twin-aisle deliveries, which is about 23 percent of the total number of airplane deliveries for the period and 45 percent of the total market value. About 40 percent of the demand for twin aisles will come from the Asia Pacific region. The imminent introduction of the Boeing 787 Dreamliner and, later of the Airbus A350, is also driving demand, as these new aircraft offer significant efficiency improvements over the aircraft they are replacing.

There is expected to be little change to the size of the large aircraft fleet over the long term. The number of large airplanes in the fleet will grow from about 800 today to 960 in 2029. Nearly all the gain in large aircraft is coming from the freighter market. The number of large passenger airplanes in operation today is around 500. The large airplane passenger fleet will remain at approximately that level over the long term.

The 720 new large airplanes forecast to be delivered represent only 2 percent of the total aircraft deliveries. Yet with a value of $220 billion, large airplanes account for 6 percent of the total market value. About 43 percent of the deliveries will go to Asia, with China and Southeast Asia accounting for most of the delivery demand. The Middle East, with its already substantial backlog of aircraft in this category, accounts for another 23 percent of the large airplane market. More than half of those airplanes are already on order.

China Southern Airlines is Set to Receive the Airbus A380 Superjumbo

September 21, 2010 | Filed under : Airline Industry, Airlines Companies, Aviation

Delivery of the China Southern Airlines A380 had been due to arrive just before the 2008 Beijing Olympics but was deferred- now it looks like the first of its five A380s will be delivered next year.

Airbus mounted the vertical tail on China Airlines’ first A380 superjumbo on Tuesday at the A380 assembly line in Toulouse. It takes about eight hours to install the tail, which is almost equivalent to the size of an A320 wing and when joined to the fuselage its tip stands 24 metres from the ground.

China Southern is the only mainland carrier to order the A380, with rival Air China insisting it has no plans to acquire the aircraft because it prefers the rival Boeing B747. It expects to receive its first A380 plane in 2011.

Asia-Pacific carriers who have ordered the A380 superjumbo include Singapore Airlines, Malaysia Airlines, Qantas, Korean Airlines, Kingfisher Airlines, and THAI Airways.

Business class travellers will be intereted to know that the carrier has announced a new premium economy class on flights to Australia. It has started rolling out Premium Economy Class service on its service between Guangzhou and Sydney using the all-new Airbus A330-300 aircraft.

China Southern Premium Economy travellers enjoy superior seating and cabin service from standard economy with special advance round trip fares.

From October 31st the carrier will offer the Premium Economy service on services from Guangzhou to Brisbane and Melbourne. The re-designed A3380-300 cabin offers 47 Premium Economy seats separated by curtains, and portable doors to guarantee travellers a discreet private space.

International Premium Economy Class on China Southern Airlines offers a premium travel experience and includes 40% additional space. The seat pitch has been extended from Economy pitch of 32 to 37 inches for expanded legroom. Special personal touches include newspapers, double-thick wool blanket and pillows; fresh seasonal fruits, noise-reduction headphones, private washing kit and savoury red and white Australian wines. At the airport there is an exclusive Premium Economy check-in counter where travellers can enjoy the special privilege of a private Premium Economy check-in counter and an extra luggage allowance of 15kg. They also benefit from priority baggage delivery upon arrival, boarding at passengers’ convenience and priority class upgrade (if Premium Economy cabin is overbooked). Sky Pearl Club members travelling in Premium Economy Class will earn 110% FFP mileage and through to December 30th, will receive an additional 3,000 bonus FFP miles.

China Southern has also 13 Boeing B787s on order.

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