Aeroflot orders Boeing 787

Russian carrier Aeroflot announced today that it will be ordering 22 Boeing 787 aircraft - an order valued at about 3 billion dollars. Aeroflot is the second Russian airline to order the 787 - S7 was first. The airplanes, which are scheduled to be delivered between 2014 and 2016, will complement the 22 Airbus A350 aircraft that Aeroflot bought in March. There have been reports that Aeroflot preferred the 787 over the A350 but ended up getting both because state-owned Vneshtorgbank bought 5% of Airbus parent EADS last year.

Boeing emphasized the benefits to Russia that the deal would provide: key components for the 787 were designed at Boeing's Moscow office, where the company employs about 300 engineers, and that Russian titanium would be used in the building of the airplane. Boeing also agreed to help Russian manufacturer Sukhoi in the latter's production of the Sukhoi Superjet-100 (SSJ), also called the Russian Regional Jet (RRJ).

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Korean Air to start low-cost carrier

South Korean carrier Korean Air has announced that it will start a budget subsidiary that will allow the airline to compete with other low-cost carriers, which have made significant inroads into Korean's market. According to a statement from the airline, the subsidiary will start service within three years and will probably be run by Korea Airport Service, which provides ground handling services and is an affiliate of Korean Air.

The airline is planned to start service with a few Korean Air Boeing 737s and operate domestic and short and medium range international routes. Eventually, Korean's routes will be split, with the low-cost carrier operating the shorter range routes while Korean Air 'proper' flies long-haul, international routes. Fares at the low-cost subsidiary will probably be about 30% less than Korean Air fares.
One of the reasons that spurred Korean to make this move is the planned completion of high-speed rail service throughout South Korea; the airline is, according to the statement, planning to "develop new markets and business models to effectively use the fleet [of Boeing 737s] that will be freed from domestic operations". Additionally, South Korea signed an open-skies agreement with neighboring China, Vietnam, Thailand and Cambodia, meaning that airlines from those nations and Korea can operate virtually unlimited flights between them. Korean Air also wants to get a larger share of the tourist market, and starting a low-cost branch will probably help them do this.

Korean isn't alone, however - it must not only compete with established low-cost carriers Jeju Air and Hansung Airlines. Rival Asiana Airlines has said that it would not be launching a low-cost subsidiary - for the time being. The executives at Asiana will no doubt be watching Korean Air carefully to see how the 'low-cost experiment' goes.

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Aer Lingus chooses the A350

In the latest installment of the 787-A350 battle, Irish carrier Aer Lingus has chosen the Airbus A350 XWB (Extra Wide Body) to supplement its fleet of A330s (and to replace some of the older ones). The order for six A350s plus six options is, according to Airbus, the airline's "biggest ever commitment for long-haul aircraft".

Aer Lingus CEO Dermot Mannion said, "The A350 XWB fits in with our ambitious plans to expand existing routes and to open up new ones from our hub in Dublin. We already have an all Airbus fleet and the new aircraft will fit in seamlessly."

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China Eastern can still join oneworld

China Eastern Airlines still has the green light to enter the oneworld alliance despite the fact that Singapore Airlines, a prominent member of rival alliance Star, recently bought a stake in the Shanghai-based carrier. oneworld's managing partner, John McCulloch, said, "China is an unusual market for this sort of activity. We are proceeding as before... I don't think it is going to complicate things." However, it's important to note that oneworld is making an exception to the rule here - usually, this sort of thing wouldn't be permitted. "But in China," said McCulloch, "we don't see it as a complication." The Chinese market is a crucial one, so oneworld is understandably willing to make an exception.

McCulloch also mentioned the example of Cathay Pacific, a oneworld member that has a share of Air China, which will be a Star Alliance partner. Cathay subsidiary Dragonair is expected to join oneworld as an affiliate member, and Hainan Airlines is also in talks with the alliance about joining.

Air China, China Eastern, and China Southern are the 'big three' Chinese carriers, and each of them are now (or will be) part of an alliance: Star, oneworld, and SkyTeam, respectively.

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Silverjet looks to expand

London-based business-class carrier Silverjet will receive two more Boeing 767-200ER airplanes that will allow it to possibly extend service to longer-range routes. The planes, which are due for delivery in March 2008, are from British charter airline Thomsonfly. While the airline hasn't yet announced any new routes, the extended range 767s allow it to fly to destinations in Asia, Africa, and the US West Coast. "We are delighted to have secured a letter of intent for two further long range aircraft for delivery in March 2008," said Lawrence Hunt, Silverjet CEO. "With these five aircraft we are on track to operate ten aircraft within three years as set out at the time of our IPO."

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Virgin eyes premium market

Speaking on the day of his airline's inaugural flight between London-Heathrow and Nairobi, Kenya, Virgin Atlantic chief Sir Richard Branson recently announced the launch of a business-only airline that would connect London and various European destinations with the US. Branson said that the airline "would provide choice and quality for the customer" and would hopefully be up and running in nine to 18 months.
The airline wouldn't be a fully separate entity; it would probably be an airline within an airline (Branson did say that the airline would be under the Virgin Atlantic name). The London airport was not yet mentioned - Heathrow, Gatwick, Luton, or Stanstead are all possibilities. Like arch-rival British Airways' newly announced service, Virgin's will connect London, Paris, Milan, Frankfurt and Zurich with the US (probably New York). "We've got to compete in this area," said Branson. "The service will be of the highest quality and will be competitive in terms of price." Virgin will also have to go up against airlines like Silverjet, Maxjet, Eos, and L'avion, all of which offer premium trans-Atlantic service.

Virgin is also reportedly in talks with aircraft manufacturers Boeing, Airbus, Bombardier and Embraer over a new aircraft order for up to 15 airplanes.

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A380 arrives at Paris

The Airbus A380 made its first arrival today at Paris' Charles de Gaulle Airport, which has had to undergo several modifications, such as lengthening runways and strengthening taxiways, to ensure that it can handle the aircraft. Airbus Chief Executive Louis Gallois said, "This airplane has created a lot of debate. Now we know it is here, it is beautiful, it is excellent." The plane will stay at CDG for two days in order to undergo testing before flying to Asia.

Some photos of the event, courtesy of Airbus:

The A380 arrives at CDG.


The aircraft gets a welcome from the CDG fire department.

French Transport Minister Dominique Bussereau tries out one of the A380's seats.

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