Page 13 - AAA MAY - JUNE 2018 Online Magazine

ith fuel prices continu-
ing to rise quicker than
expected, persisting
Wwith ageing aircraft
and delaying the induction of newer
jets into the fleet has increasingly A NEW CHAPTER
begun to look like bad business
strategy.
Many major carriers, which had Rising fuel prices have accelerated the
deferred plans to introduce new induction of new, more fuel-efficient
aircraft to take advantage of the aircraft into airline fleets
historically low fuel prices that
existed for almost three years, have
already ditched the business model
and have started introducing more
fuel-efficient aircraft into their fleet. Arun Sivasankaran
In place of gas guzzlers are coming
in newer generation models like the taken delivery of five new A380s, airline, has signed a deal with
737 MAX and A320neo narrowbod- has decided to invest US$850 mil- Boeing for 50 new narrow-body
ies as well as the A330neo, A350, lion on a four-year upgrade of its aircraft; the deal is worth an esti-
and 787 widebodies. 20-strong fleet of the aircraft type. mated US$6.24 billion. During the
Randy Tinseth, Boeing vice All the aircraft will undergo a major last few years, the carrier has been
president for commercial airplane transformation with redesigned adding new aircraft to its fleet at a
marketing, isn’t surprised that with private cabins, new seats for all pace faster than any other airline
oil being above US$65 a barrel, cabin classes, as well as upgraded in the world. In May last year, it had
there is an increase in demand for in-flight entertainment and ameni- as many as 443 aircraft on order.
new airplanes. “When you take a ties.
look at where the price of fuel is Philippine Airlines (PAL), which Abuzz with Activity
today ... it means replacement operates four-times weekly ser- In the Middle East, Etihad Airways
economics make more sense for vice between Doha and Manila, is phasing out long range jets after
our customers,” he said in June, will add 15 new aircraft in 2018, being forced to reduce the number
at the International Air Transport including the Airbus A350-900, of flights to the United States. The
Association annual meeting in A321neo and Bombardier Q400 carrier, which sold seven A340
Sydney. turboprops. Meanwhile, Ethiopian jets in 2017, has decided to drop
Airlines announced in June that five Boeing 777-200LRs from its
Vibrant Asian Scene it was planning a US$332 million fleet. Facing financial troubles
Vistara, the Indian affiliate of purchase of new aircraft; the new due to investment choices that
Singapore Airlines Ltd. (SIL), is order will increase its Bombardier backfired, the airline is planning to
in the market for as many as 50 fleet to 39 jets. The carrier oper- downsize its fleet and tide over the
narrowbody jets and 10 widebod- ates 96 passenger aircraft and crisis. The 165 planes that it has on
ies. The airline is currently holding freighters currently and has more order, most of them placed in 2013
discussions with both Boeing and than 60 fleets on order. before the crisis, includes 26 Airbus
Airbus. With aviation booming in Malaysia Airlines, which took A321neos, 40 Airbus A350-900s, 8
the country, more carriers are delivery of its first A350-900 Boeing 777-8s, 17 Boeing 777-9s,
likely to place orders for new air- in November last year, is set to 22 Boeing 787-9s and 30 Boeing
craft, mostly narrowbody jets. While operate 29 A350 family aircraft, 787-10s. As per reports, some of the
Jet Airways India, which in June including six A350-900s, all leased planes or order may be cancelled.
this year became the first Indian from Air Lease Corporation. The Meanwhile, Emirates has reposed
carrier to fly the 737 MAX, has as airline also has a firm order for 25 its confidence in the Airbus A380,
many as 150 737 MAX airplanes on B737 Max 8 aircraft. The carrier signing a US$ 16 billion deal for 36
order, IndiGo and SpiceJet are in is also poised to take delivery of more of the aircraft, with 20 firm
the market, not just for single-aisle a number of widebody aircraft in orders and 16 options. The new air-
jets but also for widebody aircraft. 2018 and 2019. craft will be delivered from 2020,
Singapore Airlines, which has Lion Air, an Indonesian budget adding to the airline’s 101-strong

ASIAN AIRLINES & AEROSPACE May/June 2018 | 13