Alaska Airline’s First Flight Using Biofuel to Boeing 737 and Bombardier Q400

Alaska Airlines will operate 75 scheduled domestic flights partially powered by biofuel derived from used cooking oil. The first of the these flights, to be operated with Boeing 737s and Bombardier Q400s, will occur Wednesday when two aircraft fly from Seattle-Tacoma to Portland, Ore., and Washington National, respectively.

The fuel, a blend comprising 20% biofuel, is being supplied by broker SkyNRG and made by Dynamic Fuels, which is a joint venture between Tyson Foods Inc. and Syntroleum Corp. AS emphasized the fuel “meets aviation and military safety, sustainability and performance standards.”

The carrier said that it and regional affiliate Horizon Air “will continue to operate select flights between Seattle and the two cities over the next few weeks.” AS and Horizon parent Alaska Air Group chairman and CEO Bill Ayer said, “Commercial airplanes are equipped and ready for biofuels. They will enable us to fly cleaner, foster job growth in a new industry, and can insulate airlines from the volatile price swings of conventional fuel to help make air travel more economical. What we need is an adequate, affordable and sustainable supply. To the biofuels industry, we say: If you build it, we will buy it.”

AAG said it estimated that the 75 flights would emit 10% fewer carbon dioxide emissions compared to its traditionally powered flights. AAG and Boeing were among the group that last year formed Sustainable Aviation Fuels Northwest.

Delta Airlines to Continue Flight Service Pierre-Minneapolis Route

Delta Airlines had planned to cut its Pierre-Minneapolis route Nov. 20 because of a drop in passengers, but the Department of Transportation issued an order requiring the airline to continue the route through Jan. 15 of next year, that Delta Airlines to continue flight services Pierre-Minneapolis Route.

U.S. Sen. Tim Johnson says Delta Airlines will continue its Pierre-Minneapolis route into the new year.

The South Dakota Democrat said Wednesday that the Department of Transportation issued an order requiring the airline to continue the route through Jan. 15 of next year. DOT approved the move, but the city of Pierre appealed the decision, saying the airlines flight is important to businesses and residents, as well as state government.

Johnson says the 60-day extension will give air travelers a flight option while DOT reviews the appeal and allows the city time to line up a new carrier.

Aer Lingus Adds Extra Flights between Dublin and London Gatwick Airport

Aer Lingus will now run extra flights to and from Dublin to London Gatwick Airport. This means that Aer Lingus has more flights on this particular route than any other airline, as a result of increasing its capacity for passengers on this service by 56 percent. The new winter schedule for Aer Lingus will now include 6 flights per day between Dublin and London Gatwick, an increase from the 4 flights per day last year. The first flight will leave Dublin at 6:40 a.m., two hours earlier than last year, and it will be the first departure to London Gatwick by any airline. The first flight to leave London Gatwick for Dublin will be at 6:50 a.m.

There will also be a new 5:50 p.m. departure from London Gatwick, complementing the 6:50 p.m. departure, which will provide travelers an alternative option when flying at peak times. The new 7:50 p.m. departure from Dublin will go along with the 8:50 p.m. departure and also provide an alternative for those searching for UK flight deals. In addition, there will be a 12:55 p.m. departure from London Gatwick that fills in the gap between the existing 10:50 a.m. and 2:50 p.m. flights. Aer Lingus has a grand total of 27 flights in each direction from the Republic of Ireland to London, which means it has the highest frequency of flights between Ireland and London, more so than any other airline.

The Irish Government founded Aer Lingus in April 1936. Its low-cost, low fares mode is centered on maintaining effective fleet utilization and developing the Aer Lingus brand. The airline also provides a cargo transportation service, including services to the United States and Europe, as well as mail transportation services between Ireland and the United Kingdom.

American Airlines Provides Curbside Check-in Service at 28 International Airports

American Airlines said recently customers traveling internationally can now take advantage of curbside check-in at 28 airports that currently offer the service for domestic travelers.

Among the top markets offering the expanded curbside check-in service are Miami, Los Angeles, Dallas/Fort Worth, Chicago O’Hare and New York’s John F. Kennedy Airport, American said in a release.

The service is also available to travelers departing Fort Lauderdale, according to the airline’s website.

With curbside check-in customers can check-in for their flights at home online and then drop their bags curbside with a skycap before moving on to the security check-point to their gate in a seamless manner.

“Offering Curbside Check-in for travel to international destinations is another way American is expanding its products and services to better meet the needs and desires of customers traveling abroad,” said Tom Del Valle, American’s Senior Vice President – Airport Services, in a statement.

Another 31 U.S. markets are slated to offer the international curbside check-in service starting in November.

An American Airlines spokesperson said given the fairly extensive nature of the curbside check-in program, it took longer to expand the offering to international travelers.

The airline also had to balance offering this program with other priority services it has implemented to enhance the customer experience from curbside to baggage claim.

U.S. Airlines Plans to Increase Flights to Cuba

More airlines are preparing to fly to Cuba, according to the Wall Street Journal.

With restrictions on travel to the Communist-ruled island loosened earlier this year, four large U.S. airlines – American Airlines, JetBlue, United Continental and Delta Air Lines – will operate about 25 weekly flights to Cuba for charter companies by the end of the year, the report says.

Charter companies estimate about 400,000 Americans will fly to Cuba this year vs. 250,000 last year, the report says. In January, President Obama liberalized travel rules to Cuba for students and religious and cultural groups.

American has been flying to Cuba for two decades. JetBlue arrived last month. United Continental and Delta are resuming weekly service to Cuba after a seven-year hiatus, the report says.

Thai Airways Operates Special Flights Between Bangkok and Phitsanulok

Thai Airways International is operating special flights between Bangkok and Phitsanulok to assist government officials and people who need to travel to the lower northern and upper central regions of Thailand that are no longer accessible by vehicles through local roads.

Thai’s special flight to and from Phitsanulok will also help transport donated food and medical supplies from the Government’s Flood Relief Operation Centre (FROC) to flood victims.

Several provinces in the lower northern and upper central regions of Thailand are severely flooded and some areas are not accessible by vehicles.

The special flights will operate until 23 October 2011 using Boeing 737-400 aircraft with 149 seats, at 1,250 baht per trip (one-way fare).

Thai will operate two flights per day. On 18-23 October 2011, flight TG8706 departs from Bangkok at Suvarnabhumi Airport at 11:20 and arrives in Phitsanulok at 12:10. Flight TG8707 departs from Phitsanulok at 12:50 and arrives at Suvarnabhumi at 13:40 on the same day.

Thai is also providing free cargo shipments for food donated to the Government’s Flood Relief Operations Centre (FROC), as well as blood donations and medical supplies made through the Thai Red Cross Society that will be transported to Phitsanulok and sent to Nakhonsawan. Nakhonsawan has also been affected by flooding and is in need of immediate assistance.

Private Carrier Kingfisher Airlines Full-Services Flight with Low Fares Ticket

After exiting the low-cost segment, private carrier Kingfisher Airlines has now unveiled new ‘low’ fares on its full-service flights, which is expected to trigger off a price war among full-service carriers.

For instance, a Bangalore-Delhi economy seat on the airline can now be bought for Rs 5,191, normally sold at Rs 6,900.

Although these fares are available for a limited period, this could trigger a price war in the sector, where most full-service airlines are already making losses. “In the current scenario, most of these airlines are making losses and will continue to do so with such pricing strategies,” an aviation analyst told Business Line. It’s important for airlines to sell the first 70 per cent of their seats, and earn money, he said.

Most airlines sell a bulk of their seats in advance to big agents and consolidators, especially during the travel season (usually the third quarter of the fiscal), and a miniscule 20 per cent is what they sell at a premium. Margins take a hit with these strategies.

However, with Kingfisher Airlines deciding to exit the low-cost segment and the Government of India asking national carrier Air India to increase their fares, “a structural change is starting to happen in the industry”, he said. And if airlines discontinue such (low) pricing strategies, “they could even break even or make profits in the fourth quarter of this fiscal and the first quarter of the next fiscal”, he added.

However, Mr Mohan Kumar, another analyst and a former chief financial officer of a low-cost carrier, pointed out that if costs are low, airlines can leverage it to attract customers. But when costs are not low, whatever strategy, including low fares, might not give the desired results. With air travel growing about 15 per cent every year, the industry could witness better times ahead, but keeping costs under control is essential, he added.

Yields, which were around Rs 2,600-2,800 for a low-cost airline, have now gone up to about Rs 4,000. “In the long run, it is these low-cost carriers that can sustain in the short-haul domestic routes. Full-service carriers will play a key role in a hub-and-spoke model offering international connectivity in India as in the West,” he added.

Southwest Airlines, AirTran Airways Announce 72-hr Low Fare Sale

Southwest Airlines Co. and its subsidiary AirTran Airways Tuesday reported parallely launching low-fares in the range of $35 to $125 for a period of 72 hours. The deals are valid on travel between November 30, 2011 to December 14, 2011 and January 4, 2012 to February15, 2012.

The price of the ticket varies with the length of the journey, the company elaborated, with travel between 451 miles and 1 thousand miles costing $65 one-way. Kevin Krone, Southwest Airlines’ Vice President of Marketing, Sales, and Distribution commented “Southwest Airlines is kicking off the winter travel season by offering even lower fares. We love the excitement our Customers have for our sales, and we are proud that Southwest remains committed to providing low fares to Customers across the nation.”

Air France-KLM Plans Increase Promotion Flight to Darwin as Supporting Darwin International Gateway

Tourism Minister Malarndirri McCarthy met with executives from Air France-KLM in Darwin this week to increase the promotion of the Northern Territory in key European markets.

Air France-KLM’s Australia country manager Tom Reeves and NT account manager Steve Jacobsen were provided a detailed briefing on the investment activity and major projects powering the Territory economy.

Minister McCarthy said the majority of the Territory’s international visitors come from Europe.

“Air France-KLM is one of the largest global airline groups in the world, offering full service connections from their super-hubs in Paris and Amsterdam to Darwin via Singapore, Bali, Ho Chi Minh City and Manila with Jetstar,” Minister McCarthy said.

“Air France has now enabled our European visitors to book their flights from Europe to Darwin on the Air France website. Through their interline arrangements with Jetstar, customers enjoy the convenience of seamless baggage transfers, where their baggage is booked through to Darwin on check in.

“The Territory Government is also exploring more ways to promote the NT as the gateway to Australia to Air France and KLM’s significant customer base.”

Minsiter McCarthy said that improving air access and growing Darwin as an international aviation hub is part of the Government’s Territory 2030 strategy.

The meeting with Air France-KLM follows the Minister’s recent discussions with China Southern Airlines in Guangzhou regarding future direct flights from China to Darwin.

“Our strategy is to position Darwin as a significant hub for airline activity in the region. Forging strong relationships with airlines like Air France and KLM is really important for providing connecting traffic onto our direct flights into the Territory,” she said.

“Air France-KLM also has arrangements with China Southern Airlines and we are interested in how we could work with both these airlines to secure those new flights and even more options for travellers to and from the Territory.”

Air France-KLM extended an invitation to Minister McCarthy to visit their European headquarters to continue discussions.

All Nippon Airways Immediately Operate Boeing 787 Dreamliner Aircraft

Plane-maker to celebrate in Everett, Wash., but experts note plenty of challenges ahead for Chicago-based Boeing.

Boeing marks a milestone in its long history Sunday when the aircraft-maker officially delivers the first Dreamliner, a twin-aisle plane that offers the best fuel economy and range for a craft its size and promises passengers far greater comfort while flying.

“It’s a very big deal, not just for Boeing but for the airline community,” said Aaron Gellman, professor of transportation at the Kellogg School of Management at Northwestern University.

The journey to delivering the 787 aircraft, which sells for about $185 million, has been long and problem-plagued for Boeing, which this month marks the 10-year anniversary of moving its world headquarters to Chicago.

Sunday’s contractual delivery of the plane to All Nippon Airways and a celebration on Monday in Everett, Wash., come about three years late because of design and construction problems. Those troubles earned the 787 jet the unflattering nickname “7-late-7.” ANA originally ordered the plane in 2004 for delivery in 2008.

Delays haven’t hurt sales, however. Boeing said it has more than 800 orders from 56 customers around the world.

While the 787 aircraft itself is a big deal, the celebration around finally delivering the first one is more fanfare than progress, said Richard Aboulafia, aircraft and aviation analyst with Virginia aerospace market analysis company Teal Group. More work lies ahead for Boeing, which will be pressed to deliver on its promises for the much-ballyhooed plane, he said.

“They have so many more challenges ahead of them,” he said. Chief among those are figuring out how to build the plane at a profit — Boeing will likely lose money for years on the ones it builds initially — and ramping up production to the rate of 10 planes per month by 2013.

The Dreamliner is the most technically advanced commercial aircraft ever built, and its information technology systems have been a selling point for Boeing, along with the jet’s lighter, largely composite structure, which promises greater fuel efficiency and creature comforts. The first version will hold 210 to 250 passengers; a typical 737-size plane holds about 150. A subsequent version will carry nearly 300 passengers.

For passengers, there’s the industry’s largest windows and overhead bins. The smoother-riding and quieter plane will have wider aisles and seats, lower cabin pressure and cleaner air using a filtration system that will remove offensive odors. The windows will even be dimmable, via electrochromatic window shades rather than physical pull-down shades. Boeing says these features combine to allow passengers to arrive at their destinations more refreshed.

For airlines, the midsize 787 offers fuel economy and the ability to fly long range.

If it lives up to expectations, the Dreamliner would burn 20 percent less fuel than other midsize jets but boast the range of far larger aircraft: 7,650 to 8,200 nautical miles. That would enable carriers to bypass airport hubs and directly connect city pairs, like Auckland, New Zealand, and Houston, that otherwise wouldn’t generate enough passenger traffic to fill jumbo jets.

“It is going to enable airlines to fly between points that they never served directly before,” Gellman said.

Air India Plans Purchase 27 Dreamliner Aircraft from Boeing

Air India has decided to go ahead and purchase the 27 Dreamliner aircraft from Boeing despite poor financials and doubts about its ability to repay the 17,000-crore loans needed for the planes.

The Air India board, which met in New Delhi on Thursday, agreed that the 27 aircraft are essential to expand operations and swing the airline back into profitability. Rohit Nandan, the chairman and managing director, said that the board has recommended purchase but declined to elaborate. The recommendation will now be discussed by the group of ministers (GoM) who will take the final call when they meet some time next month.

The national carrier’s fortunes have plummeted in recent years, thanks to rising fuel prices, the global slowdown and a hastily-arranged, ill-advised merger with Indian Airlines. Its monthly loss ( 600 crore) is equivalent to the market cap of a small-cap company and its brand image has been badly dented by a series of mishaps both in the air and on the ground. It has accumulated losses of 13,000 crore.

A number of people, including the civil aviation minister, Vyalar Ravi, have raised doubts about the airline’s ability to pay for the purchase. Talking to ET a few days ago, Ravi had said that Air India does not have the money. “Well, everybody knows about the financial health of Air India. That is precisely the reason I say AI simply does not have the funds to pay for the Dreamliner Boeing 787 aircraftâ that is the fact,” he told ET two days ago.

Though Boeing has offered help in the form of loans at low rates from US Exim Bank, Air India’s current financial predicament could impair its ability to service the loan. Its debt burden of 43,000 crore is likely to swell to an unmanageable 60,000 crore after the Dreamliner buy.

But the other big problem is that orders have already been placed and the aircraft is likely to be delivered in the next few months. Cancelling or restructuring the order now will be an extremely time-consuming and controversial exercise apart from leading to a diplomatic row between India and the US.

One AI member said that the board discussed the cost and the need for more aircraft. “Air India wants the Dreamliners but there are issues about repayment. Who’ll pay for the loans remains the bone of contention,” he said on condition of anonymity.

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