South African Announces Washington – Accra Service

by: Siva Vayali - May 28th, 2015   Filed under: Airlines Add Comment

South African Airways (SAA) today announced a new routing for its daily flights between Washington (IAD) and Johannesburg (JNB): Accra’s Kotoka International Airport (ACC) will be the stopover for four times a week. South African will reduce Washington to Dakar, (DKR) flights to three times a week. Currently SAA serves the IAD-JNB route with a stopover at Dakar for all seven days. The new schedule takes effect starting August 3, 2015. South African also flies a daily nonstop service between New York JFK and Johannesburg.

It should be noted that Accra was the original stopover when South African started its service to Washington. But it could not secure the fifth freedom rights to pick up passengers between Washington and Accra and hence shifted its operational base to Dakar, Senegal. The router is now being reinstated with rights to carry passengers between Washington and Accra. Washington, DC area is home to the second largest expatriate African population in the United States. Ethiopian Airlines (ET) serves a daily nonstop between Washington and Addis Ababa (ADD).

Both South African and Ethiopian flights arrive early in the morning at Dulles to take advantage of the connections offered by fellow Star Alliance member United Airlines (UA).

 

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Washington Dulles finally gets a break – Frontier Airlines announces new services

by: Siva Vayali - May 14th, 2014   Filed under: Airlines, Airports Add Comment

Frontier Airlines (F9) has announced plans to start new services from Washington Dulles International (IAD) airport. The ultra low fare carrier will start nonstop flights to fourteen destinations, with the first being planned on August 19, 2014. All destinations, except Orlando (MCO) will be served anywhere between four times a week to six times a week. Orlando will be served daily.

While international passenger traffic has consistently increased every year with the arrival of new carriers, Dulles has been steadily loosing domestic passenger traffic to the close-in Ronald Reagan National Airport (DCA). Airlines have been shifting services from Dulles to Reagan National because of the availability of new slots as well as the sale of existing slots by US Airways (US) and American Airlines (AA) to get their merger approved. United Airlines (UA), which operates a hub at Dulles has trimmed its domestic services as well. The airport authority, which manages both Dulles and Reagan National, has been trying hard to bring in new domestic carrier at the airport. With a mega construction project to bring Metro rail to the airport underway, it is imperative to bring in new carriers to improve traffic volume at the airport.

Frontier sees an opportunity at Dulles as the airport has ranked as one of the most expensive airports in the country every year. Its low fares should bring in enough passengers to sustain the services.

It will be interesting to see how United would respond to this new development. Anyone remember Independence Air (DH)? United’s own contract carrier Atlantic Coast Airlines turned against it by taking a new avatar as Independence Air (DH) with a hub at Dulles. Oh, I remember that period. It was fun times for the travelers and the airport (Dulles became one of the top ten busiest airports in the country and home to the largest low cost operation in 2005). United matched Independence Air’s ultra low fares and made the later to bleed cash and eventually shut down. But, I don’t think, Frontier’s operations at Dulles is a threat to United. United operates a medium sized hub at Dulles with multiple daily flights to most East Coast destinations. Also, Dulles is United’s second biggest transatlantic hub (after Newark Liberty). With lots of corporate contracts and frequent flyers, United would easily hold its court.

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Air China Expands its U.S. Network – Services to Washington Starts in June; Houston becomes daily

by: Siva Vayali - March 26th, 2014   Filed under: Airlines, Airports 2 Comments

Air China (CA) has announced firm dates for its Beijing (PEK) – Washington Dulles (IAD) service. The airlines application has been approved by the U.S. Department of Transportation recently. The four-times weekly service will start on June 10, 2014 with Boeing 777-300 ER. In addition to the large O&D market offered by the Washington-Baltimore area, Air China would get ample connection opportunities using the route operated by its Star Alliance partner United Airlines (UA). A mid afternoon arrival at Washington is timed to connect passengers to destinations throughout the East Coast on United’s extensive route network from Dulles. United Airlines already operates a daily IAD-PEK service.

Houston service goes daily

Staring March 30, 2014, Air China will also increase its frequency on the Beijing – Houston (IAH) route from four times a week to daily. The expansion comes within eight months of launching the service to Houston, indicating strong demand.

Covering all bases

With these new and additional flights to Beijing, Air China will serve all Star Alliance hubs in North America, except Denver, either using its own metal or through an alliance partner.

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Together, Air China, United Airlines and Air Canada will command a 75% share in the important North America to Beijing market. With extensive route network from their hubs, the alliance can connect any two destinations between China and North America.

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Ethiopian Airlines Takes Its First 787 Delivery – Washington Dulles To Be the First Destination

by: Siva Vayali - August 15th, 2012   Filed under: Airlines, Airports 2 Comments

Ethiopian Airlines (ET) became the third airline in the world after ANA and JAL to take delivery of the new Boeing 787 Dreamliner. The gleaming new airplane landed at Washington Dulles (IAD) today on its way to Addis Ababa.

The airline announced Washington Dulles (IAD) as its first destination for the B787. Starting October 20, 2012, the airline will start regularly scheduled flights to Dulles. ET currently operates its daily ADD-IAD service with a B777 – 200. Ethiopian will alternate between B787 and B777 on the route.

Ethiopian attaches great importance to its Washington Dulles flights as it provides important link to one of the largest Ethiopian community outside Ethiopia. The route also provides important opportunity for cargo revenue. Ethiopian, being one of the newest member of Star Alliance, leverages United Airlines’ hub at Dulles for connections.

With 10 B787s in order, Ethiopian announced Guangzhou (CAN), its second destination for the Dreamliner.

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United Airlines Orders 150 Boeing 737s including 100 of 737 Max

by: Siva Vayali - July 12th, 2012   Filed under: Airlines Add Comment

United Airlines today announced an order for 150 Boeing 737 planes to upgrade its narrowbody fleet. The order includes 100 of Boeing’s new 737 Max planes. According to the press release, United will be the North American launch customer for Boeing 737 Max 9 aircraft. The deliveries will start in 2018.

Boeing 737 Max is the tweaked variant of the companies best selling 737 narrowbody jetliner, offering better fuel economy. Boeing originally planned to replace the aging 737 workhorse with a new design from the ground up (like it did for the 787 dreamliner). Instead, Boeing decided to modify the existing platform to bring an upgraded product to the market sooner, because of the success of a similar strategy employed by its competitor Airbus with its A320 neo.

Going by the orders it is getting for the new 737s, it looks like Boeing made the right call.

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Turkish Airlines Announces flights to Houston

by: Siva Vayali - June 19th, 2012   Filed under: Airlines, Airports Add Comment

Turkish Airlines (THY), one of the fastest growing airlines in the world, yesterday announced flights to Houston George Bush Intercontinental Airport (IAH) from its hub in Istanbul’s Atatürk International Airport (IST). Starting in April 2013, the airline will operate four services per week using Boeing 777 – 300 ER aircraft.

Houston is a logical expansion point for Turkish Airlines. The airlines is a member of Star Alliance and Houston is a major Star hub. Houston, being the energy capital of the United States, has strong business traffic and Turkish can tap that using its excellent connections to oil producing regions of Asia and the Gulf. It will compete head-to-head with other airlines operating in the region: Emirates and Qatar Airways (Turkish bills itself as more of an European carrier than a Middle Eastern one as its main base Istanbul is in Europe though the rest of the country lies in Asia).

Turkish Airlines already operates daily services to New York JFK (JFK), Washington Dulles (IAD), Chicago O’Hare (ORD), Los Angeles International (LAX) and Toronto Pearson International Airport (YYZ), the last four being major star hubs. By operating flights to all major Star hubs, Turkish can provide onward connections to almost all points in North America. By the way, United Airlines (UA) starts its Istanbul flight from Newark (EWR) hub on July 1, 2012. United will use a B767 – 300 on this route.

One thing is clear: US Flyers will have more options to travel to one of the fast growing economies in the world and beyond.

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Win for Southwest and a setback for United Airlines – Houston Approves International Flights from Hobby

by: Siva Vayali - May 30th, 2012   Filed under: Airlines Add Comment

In a major win for Southwest Airlines (WN) and a setback for United Airlines (UA), Houston City Council today overwhelmingly approved to start international flights from Hobby Airport (HOU). Beginning 2015, Southwest plans to start flights to Mexico, the Caribbean and  South American destinations, pending regulatory approvals.

Southwest welcomed the decision saying that it would bring in additional jobs and millions of dollars in economic impact to the city. United Continental Holdings, the parent of United Airlines said that it is disappointed in the decision.

United contends that allowing international flights from a secondary airport like Hobby would drain passengers from the city’s main international gateway, George Bush Intercontinental Airport (IAH), which is also the biggest hub for the combined entity of United Airlines and Continental Airlines. United already indicated that if international flights are allowed out of Hobby,  it has to retrench 10 percent of the workforce in Houston, drop the proposed Houston – Auckland flight and put the $700 million improvement at IAH on hold.

As always, both airlines brought out studies to bolster their arguments. The Houston Airport System, part of City of Houston, manages both airports and already approved the decision.

There are supporting facts to both United and Southwest. United has invested heavily in IAH over the years, building a respectable route system to Caribbean, Mexico and South America. Southwest would bring down the pricing power in the market, there by reducing United’s operating margins. United maintains its Latin American hub in IAH and does not want to jeopardize its growth (even though much smaller scale than the massive American Airlines (AA) hub in Miami (MIA)).

Southwest argument of additional revenue and passengers to the city also makes sense.

Eventually, United has to bring down its operating costs in line with that of Southwest to make money on those routes. Otherwise, United would end up losing the battle to Southwest as most travelers on these route are price conscious.

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It is now Emirates’ turn to announce flights to Washington

by: Siva Vayali - March 15th, 2012   Filed under: Airlines, Airports 4 Comments

Emirates (EK) today announced the starting of daily flights between Dubai (DXB) and Washington’s Dulles International Airport (IAD). The new service to be operated using Boeing 777-300 ER will start on September 12, 2012, just in time for the busy travel season. The flight will feature eight private suites in First Class, 42 lie-flat beds in Business Class and 304 seats in Coach class, according to the press release from Emirates.

It is interesting to note that just in February, Etihad (EY) announced the starting of service between Abu Dhabi (AUH) and Washington Dulles from March 13, 2013.

Greater Washington DC area is the second largest market for travel from the United States to Middle Eastern countries, just behind New York. So, it is not a surprise to see the three major Gulf Carriers (Emirates, Qatar Airways and Etihad) try to get a piece of the market share. Qatar has been flying this route for more than five years.

The announcement of flights to Washington from Emirates was expected for a while. United (UA) already flies the Washington-Dubai route. This would make Washington Dulles the only North American airport to have flights to Dubai operated by two airlines. It would be interesting to see how United would respond to this announcement. I think, there is enough market share for both players to maintain their services. Each would play to its respective strengths. Emirates, known for its legendary service and huge hub in Dubai, can connect passengers from Asia,Indian Subcontinent,  Middle East and Africa to Washington. Emirates will focus on passengers ending travel in Washington as it has minimal onward connections from Dulles (through JetBlue, Virgin America and American). United, with its hub in Washington Dulles, can connect passengers from throughout North America to Dubai. So, United will have better onward connections from Washington to throughout North America.

Passengers traveling to Indian subcontinent will have more options now, as Emirates connects to 17 destinations from its Dubai hub, with multiple daily flights to big markets like Mumbai (BOM), Delhi (DEL), Chennai (MAA), Kolkatta (CCU), Bengaluru (BLR) and Hyderabad (HYD).

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US Airways announces flights to Jackson, MS from Reagan but no details yet on the route for its long distance slot

by: Siva Vayali - March 5th, 2012   Filed under: Airlines, Airports Add Comment

I received few emails from our readers about announcement from US Airways about nonstop flights from Washington Ronald Reagan National Airport to Jackson, MS (JAN). I think they are under the impression that US Airways is utilizing the long distance slot to start service to Jackson. This is not correct. US Airways has not yet announced its plan for the usage of one slot pair permitted by DOT under the FAA Reauthorization Bill to start service to a destination exempted by the perimeter rule. The Jackson flight will be operated using the slots it gained by the slot-swap deal with Delta. I confirmed this with the US Airways Corporate Communications department.

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Under the FAA Reauthorization Bill, the four network careers (United, Delta, American and US) got exemptions to operate one round trip service to a destination beyond the 1250 statute miles limited by the perimeter rule. The careers did not get new slot pairs, but have to use one of their existing slot pairs to start this service. United, American and Delta already announced their routes for these exemptions.

Considering the fact that US Airways is the dominant career at Reagan National, it would take time to carefully evaluate its route options for the long distance slot. From Reagan National, it already operates three daily flights to Phoenix(PHX) and a one daily to Las Vegas (LAS). It would be very interesting to see how it would use the slot.

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United Flies Into A Smooth Switchover

by: Siva Vayali - March 4th, 2012   Filed under: Airlines 1 Comment

United Continental Holdings’ transition from two computer systems into one appears to be running without major glitches. The cutover occurred on Saturday early morning. Barring some minor incidents, the transition seems to be smooth. Some flights were delayed at United’s hubs in Chicago O’Hare and Washington Dulles.

Under the transition plan, United moved the reservation, frequent flyer and passenger information from United Airlines’ Apollo system to Continental Airlines’ Share system. This is a massive transition because the combined career has about 90 million frequent flyer members.

The combined website seems to function well too. Kudos to United for a job well done.

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More long distance flights to Washington Reagan National – American to LAX and Delta to SLC

by: Siva Vayali - February 29th, 2012   Filed under: Airlines, Airports 5 Comments

The effects of the recently passed Federal Aviation Administration Reauthorization bill are already showing some positive signs for Washington’s Ronald Reagan National Airport (DCA). American and Delta announced new flights to the airport.

American Airlines yesterday announced a daily flight between Reagan National and Los Angeles International Airport (LAX) staring June 14, 2012. The flights will be operated by a 757 configured in two classes with 22 seats in First and 166 seats in Main Cabin. The route is already served by another daily non-stop from Alaska Airlines. The Los Angeles to Washington region flights are dominated by United Airlines with up to eight daily frequencies to between its hubs in LAX and Dulles and a daily flight between LAX and BWI. It has no flights between LAX and Reagan National. American operates up to three daily flights between LAX and Dulles. It would be interesting to see how United would respond to American’s new flight between LAX and Reagan National.

Starting June 7, 2012, Delta will be adding a second daily frequency between Reagan National and Salt Lake City (SLC). Though I haven’t seen a press release yet from Delta on this, I confirmed the news from its corporate communications office. This shows strong demand for the DCA-SLC route and Delta’s desire to lock in its status as the preferred airline between Salt Lake City and the National Capital Region. Delta already operates services from its Salt Lake City hub to all three airports in the Washington Baltimore Metro area: once daily to both Dulles and Reagan National and twice daily BWI. United operates a single daily frequency between Dulles and Salt Lake City. So does Southwest between BWI and Salt Lake City. With the addition of the second flight to SLC from Reagan National, Delta will reinforce its share between these sectors.

Reagan National Airport’s traffic is mostly O&D. The slots to the close-in, capacity constrained airport are strictly controlled by FAA and command a premium. The airport has set a passenger record for 2011 and this year will be another breakout year for many reasons: the recent slot-swap deal between Delta and US Airways would allow the latter to increase the service at the airport starting March 25; JetBlue announced additional frequencies to Boston Logan (BOS), Fort Lauderdale (FLL), Orlando (MCO) and new service to Tampa (TPA); the FAA reauthorization bill would eight new long distance flights.

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Etihad Announces Daily Service to Washington Dulles

by: Siva Vayali - February 23rd, 2012   Filed under: Airlines, Airports 4 Comments

Etihad Airways (EY) today announced its plans to launch services to Washington Dulles from its hub in Abu Dhabi (AUH), its fourth North American destination. The service will start from March 31, 2013 using Airbus A340-500, subject to regulatory approval. Etihad will join a growing number of airlines that offer flights to Middle Eastern region from Washington Dulles (IAD).

Etihad’s announcement shows that there is a strong demand from the Washington metropolitan area for services to Middle East. Etihad expects strong O&D traffic between Washington and Abu Dhabi, with less reliance on any connections, because its code share partner American Airlines has minimal carriage from Dulles (mostly to American’s hubs). Washington metropolitan region (which also includes Baltimore metro) has strong political, military and institutional ties with the Middle East and hence the demand for first and business class cabins should be high. The region also has large populations from Indian subcontinent and Middle Eastern countries, which should take care of filling the economy class.

In recent years, United Airlines and its Star Alliance partners have steadily added services to Middle Eastern and African destinations from Washington Dulles, making the airport a primary transit point to these regions. Qatar Airways has been flying the Doha-Washington route since 2007. It is a very popular route with travelers to Middle Eastern countries and the Indian subcontinent. United Airlines already operates daily flights from Dulles to Dubai, Kuwait and Bahrain (extension of Kuwait flight) and Accra. Recently United Airlines announced extension of its Dubai service to Doha. Qatar Airways already has code sharing agreement with United Airlines, with most of its connections to US cities routed through United’s Dulles hub. Ethiopian Airlines has been serving the Washington-Addis Ababa route for a while.Turkish Airlines is flying to Istanbul. And South African Airways is flying to Johannesburg. The only missing link is the Emirates’ service to Dubai. One reason could be to avoid competition with United Airlines which already operates in that route. But it is only a question of time before Emirates announces the Washington service. May be 2013?

An Offbeat Note: James Bennett is the CEO of Abu Dhabi Airport Company (ADAC). Before taking over that position, he was the President and Chairman of Metropolitan Washington Airports Authority (MWAA), which manages both Washington Dulles and Washington Reagan National Airports. May be it is a coincidence that Etihad has announced the AUH-IAD route?

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Lufthansa bringing in its subsidiaries BMI, Austrian and Swiss into Transatlantic Joint Venture

by: Siva Vayali - April 15th, 2011   Filed under: Airlines 1 Comment

Lufthansa is quietly bringing its European subsidiaries into the Transatlantic Joint Venture (formally called the A++ Joint Venture) it formed with United Airlines and Air Canada. The UK based subsidiary British Midland International (BMI) has joined the JV on April 1, 2011. Two other Lufthansa owned airlines Swiss International Air Lines (Swiss) and Austrian Airlines are set to join on July 1, 2011. Lufthansa is working to bring in Brussels Airlines also, but the date is not finalized because the airline is not yet completely owned by the German carrier.

Lufthansa Passenger Airline Group - Courtesy: Lufthansa

Lufthansa Passenger Airline Group - Courtesy: Lufthansa

Lufthansa wants to consolidate its position as a major force in the transatlantic market because competition is heating up. In addition to competing with other major European airlines, Lufthansa wants to prepare itself for the onslaught from the Middle East carriers, especially from Emirates Airlines, Qatar Airways and Etihad. Even though these airlines cannot directly serve the Europe – North America market, Lufthansa feels it is very important to offer the widest network choices so that it can maximize its revenue potential. According to one of its investor presentations, Lufthansa feels greatest threat from ever expanding Emirates Airlines. Bringing its subsidiaries into the Joint Venture will allow it offer wider choices for the corporate travel market.

US Airways Still not in the JV

Even though a part of the Star Alliance, US Airways is still a member of the Joint Venture. Its president Scott Kirby has indicated many times the willingness to join, but, I guess, United (still integrating the merger with Continental) is still not ready. The sooner US Airways joins the venture, the better for it. The reason is that all other major network carriers in the United States already have JVs – Delta Air Lines with Air France/KLM; American Airlines with British Airways and Iberia. US Airways will lose the revenue sharing opportunity if it takes more time to join the venture.

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