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.

All Nippon Airways Adds New Flight Route to European

With the airline set to receive the first Boeing 787 in September, All Nippon Airways may augment its operations by adding as many as three European routes. In an interview conducted in Tokyo on August 1st, President and CEO of ANA, Shinichiro Ito remarked, “The 787 presents us with a big opportunity.” He hinted at the possibility of the carrier starting Boeing 787 Dreamliner flights to Europe from Tokyo’s Haneda Airport in February. However, Mr. Shinichiro Ito refused to elaborate on the likely destinations.

Boeing 787 indeed offers ANA an opportunity to expand its operations in Europe and North America as 787 Dreamliners are approximately 20 percent more fuel efficient than planes of a similar size and can cover a longer journey. International travellers who look for cheap flight tickets will surely have better alternatives if and when ANA begins its new European services.

Tokyo-based All Nippon Airways started its operations to Munich last year, which was its fourth destination in Europe after London, Paris and Frankfurt. The carrier is also due to initiate a venture on the European routes with Deutsche Lufthansa AG in October.

All Nippon Airways First Airline to Use Boeing 787 Dreamliner

All Nippon Airways is all set to become the first airline with Boeing 787 Dreamliner in its fleet. After developmental delays of almost three years, the first 787 is due for delivery to the Japanese flag carrier next month.

On Monday, the first Boeing 787 Dreamliner for All Nippon Airways rolled out of the paint hangar at Boeing’s facility in Everett, close to Seattle in the United States.

To celebrate the event, the aircraft was painted in bespoke white and blue colours, signifying Boeing’s 787 Dreamliner brand and ANA’s service goals. UK carriers, Thomson Airways and British Airways are among other international airlines that have placed orders for the 787 Dreamliner.

Boeing 787 Dreamliner will be configured by All Nippon Airways for use on short-haul international flights. However, to smooth the progress of staff training the aircraft will be deployed on domestic routes in the beginning.

On domestic routes, the aircraft will feature 12 Premium Class seats and 252 standard class seats. On long-haul international flights, Boeing 787 Dreamliner will have a total of 158 seats, including 46 Business Class seats and 112 Economy Class seats. On short-haul international flights, the Dreamliner will have 222 seats that will include 42 Business Class seats and 180 Economy Class seats. Travellers who seek cheap air tickets on flights will have more options once the Boeing 787 spreads its wings.

All Nippon Airways will fly the commemorative first commercial flight as a charter service from the Narita International Airport, Tokyo to Hong Kong. The 787 Dreamliner will then operate scheduled air travel services on the Haneda-Okayama and Haneda-Hiroshima routes.

Mitsuo Morimoto, Senior Executive Vice President of ANA was present at the aircraft roll out in Seattle. Mitsuo Morimoto is also handling the airline’s Operations & Airport Services, Corporate Safety and Audit.

Mr. Morimoto was quoted in the company’s press release as stating: “We intend to use the Dreamliner to expand our business, particularly our international routes. We are aiming to increase our revenues from international operations significantly and the 787 will play an instrumental role in this.” Mr. Morimoto also emphasised on the airline’s focus on customer satisfaction. He remarked, “We want to be number one in Asia, not just in passengers and revenues, but also in terms of quality, customer satisfaction and value creation. Becoming the 787’s launch customer was a strategic management decision designed to help us reach that goal.”

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