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In March, United Airlines announced it had done a deal with Boeing for 25 more 737-700s after its January deal for 40.  This deal was hotly contested by Bombardier for its CSeries.  The Boeing selection was a blow to Bombardier, but also seen as Boeing playing a weak hand .  United had both OEMs on the run.

Now United has decided to defer 61 737s, and it is going to save $1.6Bn in capex. United further noted it will convert these 737-700s into four -800s and MAX9s.  The 61 deferrals at $1.6Bn equates to $26m per aircraft.  This was the general understanding of the price level Bombardier was facing off against when trying to sell United the CS300.  We understand the airline operations people preferred the CS300 to the 737-700, but the financial people were looking at the killer Boeing offering.  Finance won.

Now here we are.  United has played… Continue reading

Airlines have embraced ancillary fees as a way to make up for low fares. One of those fees was the “Reservation Cancellation/Change Fee”.  Air travel is an activity that comes with many disruptive factors, as anyone can testify.  The US airlines embraced a series of fees. Take a look at how popular this fee has become. Continue reading

Embraer recently announced another E2 program milestone with their third E2 prototype making its first flight.  The company is generally out of the public eye, being based in a quiet city in Brazil.  But the firm develops world-class products.  Its current E-jets are popular worldwide, serving both regional and mainline airlines.

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Delta Air Lines seems to be ending three routes to Tokyo’s Narita. Since Tokyo is a major market, the changes must be really noteworthy.  Delta’s Japanese hub was created by Northwest Airlines.  Recent changes to the US-Japan bilateral herald important developments.

The US and Japan agreed earlier this year to open Tokyo’s second airport, Haneda, to more US service.  Since Haneda is closer to the city, it is popular with people who want to visit Tokyo, rather than transition to another Asian city.   Delta has already presaged its Asia network changes by building Seattle as a hub.  Delta has said it will stop JFK-Narita this fall and it also plans to stop service between Narita-Osaka and Narita-Bangkok.  Delta is waiting for the DoT ‘s approval for two new routes: MSP and LAX to Haneda.

What do all these network changes mean for Delta?  Apparently, quite a lot.  “Without a significant… Continue reading

American Airlines selected ViaSat for connectivity on its Boeing 737 MAX fleet. ViaSat’s in-flight internet service has been recognized with multiple industry awards for delivering the best performing, highest-quality and fastest in-flight internet experience. The service encourages higher passenger engagement per plane by offering an ‘at home’ internet experience when in-flight – with the ability to stream movies, videos, television and music, as well as surf the web, upload pictures to social media, email large files and more.

The new American MAX fleet will tap into the power of ViaSat’s high capacity Ka-band satellite system, which includes ViaSat-1, ViaSat-2 and ViaSat-3 satellites, and has more capacity in orbit than any other in-flight Wi-Fi provider. American will leverage ViaSat’s first two generation satellite platforms, which together provide more capacity than all of the commercial satellites over North America combined. When the first ViaSat-3 class satellite platform launches in 2019, it will… Continue reading

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