Fleet Developments

This new section of your weekly update will keep you up to date on all the key aircraft orders and deliveries and what they could mean for the route development community.

From fleet expansion and the potential for network growth, including delivery dates where known; to the arrival of new aircraft types and how they will change airline operations, this is the area to keep track of airline fleet developments.


LOT RECEIVES FIRST EMBRAER 195

LOT Polish Airlines took delivery of its first Embraer 195 last week and plans to introduce the type into service on a number of its European routes this summer. The carrier, already an operator of the smaller E170 and E175 variants, has four 112-seat E195s on order all of which are due for delivery before the end of this year. The first scheduled passenger flight using the type is due to take place on April 15 between Warsaw and Brussels and later the same month will be used on links to Rome. As more aircraft are delivered, the E195 will be introduced on schedules to Frankfurt, Kiev, Larnaca, London Heathrow, Minsk, Prague, Rzeszow and Wroclaw from July and to Athens, Bucharest, Gdansk, Krakow, Poznan and Vienna from September. LOT converted four options for the E175 to the larger E195 in May last year and will use them to replace older Boeing 737-500 models, enabling it streamline its short-haul flying programme around the E-Jet family. "The E-Jets family is a pivotal element in our business plan to rationalise fleet development and to support our network expansion from our Warsaw hub," said Sebastian Mikosz, Chief Executive Officer, LOT Polish Airlines. "The E195, with the right seat capacity, will be used on our European network, enabling us to benefit from the E-Jets commonality to improve profits."


KENYA AIRWAYS REACHES DREAMLINER ARRANGEMENT WITH BOEING

Kenya Airways has confirmed that it will take delivery of the nine Boeing 787-8 Dreamliners that it has on order after reaching a settlement agreement with the manufacturer for the delays which have forced it to delay the aircraft entry into service. The African flag carrier was due to place the type into passenger service in October 2010 but will not now receive its first aircraft until the fourth quarter of 2013. Although naturally disappointed at the delivery delays, Dr Titus Naikuni, Managing Director and Chief Executive Officer, Kenya Airways said the type will play an important role in its network expansion. Today marks a major milestone for us in our fleet modernisation program,” he said. “We can only achieve our expansion strategy with the right equipment and we are particularly pleased with Boeing that despite the delay experienced in the 787 program, they have committed to the timelines that we have now signed on.” The Dreamliners will come in at a time that the airline predicts a momentous growth in passenger and cargo demand and a rapidly expanding route network. “The 787 Dreamliner fits well with our expansion strategy, giving us an opportunity to expand our markets beyond the current offering while cementing our mandate of connecting Africa to the World and World to Africa through our hub at JKIA; by increasing our network and frequency increment across Africa,” he said. The airline plans to offer flights to every African Capital by 2013. They will directly replace Kenya Airways’ 767-300ERs as well as providing capacity for network growth. The airline has also re-affirmed its intention to exercise the option of purchasing four more 787-8 after the initial delivery of the nine aircraft.


YANGTZE RIVER EXPRESS SIGNS A330-200F LEASE

HNA Group subsidiary Yangtze River Express will receive five Airbus A330-200Fs from BOC Aviation, a wholly-owned division of Bank of China, one of the world’s largest financial institutions. Yangtze River Express currently operates an all-Boeing fleet, comprising a mix of 737s and 747s and this first ever Airbus deal will enable it to expand into medium-haul markets and boost capacity within the region. “These aircraft will meet our capacity demands which have been increasing on the back of the global economic recovery,” said Mr Chen Feng, Chairman, HNA Group. The aircraft are due for delivery in 2012 and 2013.


AIR PACIFIC CANCELS DREAMLINER ORDER

Air Pacific and Boeing released a joint statement this week confirming that the airline has cancelled its order for the Boeing 787 Dreamliner. There had been rumours about the identity of the carrier since Boeing revealed in March that it had received a cancellation for the type, but up until recently the airline and Boeing had been tight-lipped on the subject. However, in the past week the carrier’s commitment has disappeared from the manufacturer’s Orders & Delivery data and then a government official confirmed the news during an interview with a Fijian television station. “Air Pacific and Boeing confirmed that the airline has cancelled its order for eight 787-9 Dreamliner aircraft which had been scheduled for delivery in 2015,” said the joint statement. Both companies noted that they were “continuing to work with each other on solutions for replacing the airline’s current widebody fleet of B747 and B767 aircraft.” Air Pacific first ordered five 787-9s in April 2006, firming purchase rights on three more aircraft in December 2007. These were all due for delivery this year. The arrival of the Dreamliners would have allowed Air Pacific to upgrade its network and alongside operating key flights from Nadi, Fiji, to Australia, New Zealand, North America and Japan, they would have enabled entry into new markets.


MORE E-JETS FOR CHINA

Brazilian manufacturer Embraer has announced new firm and tentative orders for up to 35 E190 regional jets from customers in China. The details of the new orders were revealed as the manufacturer confirmed that it will suspend production of the Embraer ERJ 145 at its Harbin facility, a joint venture with Aviation Industry Corporation of China, and instead assemble Legacy 600/650s. The deals comprise the conversion of options for ten E190s by CDB Leasing and a Letter of Intent for ten more. The company has already placed orders for ten aircraft at the start of this year and confirms that all 30 aircraft will be delivered to China Southern Airlines. The second contract is from Hebei Airlines which has agreed ten acquire ten aircraft, with purchase rights for five more. First deliveries are scheduled take place in September 2012. “This deal enables us to leap forward for future development, which we believe will play an active role in economic, political and culture development for Hebei province,” said Wang Sheping, Chairman of the Board of Directors, Hebei Airlines.


SAS SIGNS BOEING 737 LEASE AGREEMENT

Mooted as a potential customer for the Bombardier CSeries, SAS Scandinavian Airlines has seemingly turned its back on the Canadian manufacturer by signing a lease deal with GE Commercial Aviation Services (GECAS) to acquire up to 17 Next-Generation Boeing 737s. The aircraft, a mix of -700 and -800 variants, will replace nine McDonnell Douglas MD-80s and eleven Classic 737 versions at its Oslo and Stockholm bases. The carrier is in the process of rationalising its fleet and hopes to retire its last remaining MD-80s and older 737s by 2016. It still has 17 MD-80s based at Copenhagen, alongside 12 Airbus A320s and the airline suggests that it will replace the last of the MDs with a similar number of A320 Family models, but has not yet defined if these will be the standard or new upgraded neo variants.


QATAR AIRWAYS CONFIRMS 777 DEAL

Doha-based Qatar Airways has confirmed that it has placed a firm order for three additional Boeing 777 Freighters and two Boeing 777-300ERs, in an order valued at US$1.4 billion at list prices. The announcement was made on the sidelines of the Business & Investment in Qatar Forum held in New York promoting Qatar's emerging role as a political, economic and cultural hub in the Middle East. The airline currently operates eight long-range 777-200LRs, 15 777-300ERs and two 777 freighters, taking delivery of its latest aircraft last week. “The capacity of the Boeing 777 freighter is unrivalled and its economics make it an attractive addition to our fleet,” said Akbar Al Baker, Chief Executive Officer, Qatar Airways. “It’s an opportune time to be introducing more cargo capacity to our fleet. As the State of Qatar and other parts of the region are growing at a phenomenal pace, we are well positioned to take advantage of this growth.” This latest order will support the airline’s rapid network expansion in the passenger and freight markets and will enable new long-haul links to be established and frequencies boosted to existing destinations.


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Richard Maslen

Richard Maslen has travelled across the globe to report on developments in the aviation sector as airlines and airports have continued to evolve and…