World airlines collected $27 billion in revenue from products and services other than ticket sales last year, according to the latest annual report by research company IdeaWorks. The total came from data from 53 airlines that disclose ancillary revenue activity.
The world’s three leading airline alliances have signaled their unwillingness to relocate from London Heathrow Airport in the event that a government-appointed commission proposes the development of a second hub airport for the UK capital.
International Airlines Group (IAG), the parent company of British Airways, has secured firm orders and options for up to 220 Airbus A320 family narrowbodies, of which it plans to assign 120 to its Barcelona-based low-fare subsidiary, Vueling. IAG said the new aircraft will allow Vueling to replace some of its existing A320s and expand its business.
The European Commission approved the proposed merger of US Airways Group and American Airlines parent company AMR Corporation on Tuesday, eliminating one hurdle to the companies’ plan to create the world’s largest airline.
Delta Air Lines and Virgin Atlantic Airways took the first step toward confronting the formidable threat of the recent British Airways-American Airlines pairing as regulators approved Delta’s acquisition of Singapore Airlines’ 49-percent stake in the UK carrier last week. The acquisition means that Virgin Atlantic and Delta have cleared a major hurdle in their effort toward forming a full joint venture, an antitrust review of which the U.S. Department of Transportation expects to complete during this year’s third quarter.
Energized by the explosive growth in the Middle East air transport market, Qatar Airways has turned its attention to Scandinavia as it extends Boeing 787 services to Stockholm on August 1, to be followed a month later to both Copenhagen and Oslo.
Industry wisdom that civil aerospace is continuing its super-boom while defense prospects waiver was clearly confirmed in the headlines from last month’s Paris Air Show (June 17 to 23). The 50th staging of the biennial event was dominated by yet more airliner orders, plus breakthroughs in new aircraft coming to market and significant deliveries.
Backed by five launch customers from across Europe, Asia and North America committing to 102 aircraft, Boeing pressed the “Go” button for its long-anticipated 787-10 development on June 17. United Airlines, British Airways, Singapore Airlines, GE Capital Aviation Services (Gecas) and Air Lease stepped up to support the stretched, longer-range Dreamliner, and they appear to have been influential in shaping the design and performance goals.
Qatar Airways placed a firm order for a pair of Boeing 777-300ERs and signed a commitment for another seven on the opening day of the Paris Air Show. Boeing places the value of the nine airplanes at $2.8 billion, based on list prices. Also holding an outstanding order for seven 777s, Qatar Airways plans to increase the size of its present fleet of 35 Boeing 777s to 51.
General Electric GE90-115Bs power the 777-300ER. GE places the value of the engine commitment at $600 million.
Qatar Airways CEO Akbar Al Baker is upbeat on the market, having ordered nine Boeing 777-300ERs, valued at $2.8 billion (at list prices), of which seven are options. “When we say options, we always make them firm orders,” he said. “Options [simply] give us the flexibility of moving up delivery dates.”
Al Baker said the new aircraft would allow the airline to open new long-haul routes to the U.S. Two of the new jets will be delivered in early 2014.