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Celebrating the Past The In-Flight Magazine of SimAirline.net November 2007 CelebratingCelebrating thethe Past Past ALSO INSIDE: Milk Runs People Express II? Favorite Airliners LATITUDE CCONTENTSONTENTS NOVEMBER 2007 9 COVER STORY Several of our airlines are celebrating major anniversaries this year. Cover Photo: Dave Kirkby One of Air Canada’’s first three aircraft, a Lockheed 10A Electra. 6 NETWORK PLANNING The history behind some airline network routing strategies. 8 BLUE SKIES AHEAD? JetBlue is showing some eerie similarities to New York City’s original low-fare airline. 12 NOT PLAIN PLANES Our management team shares their favorite airliners. 3 Viewpoint 4 News Briefs 7 VA Spotlight 11 Hub Focus 14 The Tail Section 2 VVIEWPOINTIEWPOINT You may have noticed that some of the schedules on our site have not yet been updated to reflect the (Northern Hemisphere) winter timetable. We expect to be updating these with the latest flight schedules over the next few weeks. The busiest time of the month for SimAirline.net is always the beginning and end of the month, when the roster needs to be overhauled and Latitude released; this is even worse at the end of March and October every year, when airlines switch to a new timetable. As always, your patience and understanding are greatly appreciated. Seven of our airlines are celebrating major anniversaries this year, and we would be remiss in our duty not to honor our great airlines in some way. In this month’s issue, we’ll look back at the start of Alaska (75th anniversary), Alitalia (60th), Copa (60th), Icelandair (70th), Korean Air (45th), Pan American (80th), and Varig (80th). Also in this issue of Latitude, some of our management team shares their favorite airliners with you (for those of you that frequent the Message Boards, the overall selections may be a bit surprising). Mark Jahnke explains the history and rationale for airline routing strategies, and we include a focus on a non- SimAirline.net airline, JetBlue, comparing its history to that of an airline from another time. Happy Flying! Aaron Robinson Alaska Airlines predecessor McGee [email protected] Airways’ first three aircraft. AOL Instant Messenger: SimAirlineNet Latitude welcomes the opinions of its readers to issues raised in the magazine. Letters should be directed to [email protected]. SimAirline.net will not print anonymous letters, but names will be withheld upon request. Latitude reserves the right to edit letters as it sees fit and does not guarantee publication. 3 NNEWSEWS BBRIEFSRIEFS EasyJet to Buy GB Airways EasyJet will purchase British Airways franchisee GB Airways for £103.5 million ($212.1 million), increasing the airline’s presence at London Gatwick.by nearly half. Flights will begin flying under the easyJet brand next spring. British Airways plans to begin its own service on some of the routes served by GB Airways, which focuses on flights to Mediterranean leisure destinations. British Airways sold go! To easyJet in 2002, and had the right to buy GB Airways, but CEO Willie Walsh justified the lack of a move by saying that “U.K. franchises have outlived their purpose. EasyJet has made an offer to buy GB Airways and this has enabled us to end the franchise agreement early.” British Airways also announced it will end its franchise agreement with Scotland’s Loganair and replace it with a codeshare agreement, leaving only Comair and Sun-Air of Scandinavia as franchise partners (see March 2007 Latitude, p. 9 for more on this subject). Air France, Delta Announce Joint Venture Following in the footsteps of their partners KLM and Northwest, Air France and Delta Air Lines announced a transatlantic joint venture to eventually cover all routes between Europe and North America. As part of the joint venture, Delta will begin service on three new routes to France and begin service to London Heathrow using Air France’s slots. In a surprise development, Air France will also begin London Heathrow-Los Angeles service. New Buyer List for Alitalia Alitalia’s board of directors released a new list of potential buyers for the struggling airline: Aeroflot, Air France-KLM, AP Holding (the owner of Air One), Cordata Baldassarre, Lufthansa, and Texas Pacific Group. 787 Delayed Six Months, Bair Out as Program Head After months of speculation about the 787’s aggressive schedule, Boeing acknowledged that initial deliveries will be delayed by six months due to supply-chain issues. The first delivery is now scheduled for November or December 2008, with flight testing to begin in the first quarter of next year. Several days later, 787 Vice- President and General Manager Mike Bair was replaced by Pat Shanahan. Airbus Executives Investigated for Insider Trading France’s parliament is holding hearings on allegations of insider trading at EADS and Airbus by as many as 21 executives accused of improperly selling EADS shares prior to Airbus’ June 2006 announcement of A380 delays. Executives named included Airbus CEO Tom Enders, COO Fabrice Bregier, CCO John Leahy, former EADS co-CEO Noel Forgeard, and former EADS co-Chairmen Arnaud Lagardere and Manfred Bischoff. ICAO Rejects EU’s Emissions Trading Plans ICAO delegates passed a resolution stating that “emissions trading schemes should not be applied [by states and governing bodies such as the European Union] to aircraft of foreign countries without mutual consent,” rejecting the right of the EU to impose emissions on foreign airlines. IATA’s Giovanni Bisignani called it “a clear breach of the Chicago Convention.” -continued on page 5- 4 NNEWSEWS BBRIEFSRIEFS -continued from page 4- Porter Sues Air Canada for Colluding with Regional Partner Regional airline Porter Airlines, which has close ties to the Toronto City Centre Airport, is suing Air Canada for C$850 million ($878.4 million) in damages, claiming that Air Canada’s regional service agreement with Air Canada Jazz allows the two to “effectively coordinate their activities to establish airfare prices, increase their market dominance, avoid competition between themselves, and impede new competitors.” Air Canada Jazz is currently suing Porter due to being forced out of the City Centre Airport when Porter began operations. AeroMexico Sold to Banamex Mexico’s largest airline was sold to Banamex for a price of MXN 2.7 billion ($249 million), beating out the Saba family’s 2.72 billion final bid that came two minutes after the deadline. The country’s Federal Competition Commission earlier rejected Mexicana’s $199 million bid, ruling that it would be unfair to competitors and harmful to consumers. Hawaiian Awarded $80 Million in Go! Lawsuit A bankruptcy court judge awarded Hawaiian Airlines $80 million in damages from Mesa Airlines, the owner of new interisland carrier go! Hawaiian alleged that Mesa violated a confidentiality agreement when considering investing in Hawaiian as part of the latter’s bankruptcy process, using the information to help launch go! Hawaiian CEO Mark Dunkerly called the ruling “a triumph for fair competition and ethics over dishonesty and illegal behavior.” Hawaiian had sued for $173 million in damages and to force go! out of the market for one year. Hours earlier, Hawaiian announced that third quarter profits rose from $7.7 million to $19.6 million. ATR Updates Product Line The world’s second largest turboprop manufacturer will update its ATR 42 and 72 product lines with more powerful engines, an upgraded cockpit, and a higher maximum takeoff weight. The new -600 series “will be the most modern, most up-to-date, with the latest generation technology,” said CEO Stephane Mayer. All-new models will be available in 2010, but some aircraft since will receive some new features. SAS Permanently Removes Dash 8-400s from Fleet Following last month’s incidents involving faulty landing gears in its fleet, SAS will remove the 27 Dash 8-400s from its fleet. “Confidence in the Q400 has diminished considerably and our customers are becoming increasingly doubtful about flying in this type of aircraft,” said President and CEO Mats Jansson. SAS is seeking SEK 500 million ($76.7 million) from Bombardier in compensation. US Airways Cuts Pittsburgh Further The airline’s traditional home and largest hub for decades, US Airways announced further cuts to its Pittsburgh hub, cutting the number of daily flights 108 to 68 next year. As late as 2000, the hub had over 500 daily flights. Star Expands Further with EgyptAir EgyptAir has reached an agreement with Star Alliance to become the alliance’s twenty-first member sometime in the next eighteen months. The airline is the third in Africa to join an alliance. 5 DeathDeath ofof thethe ““MilkMilk RunRun”” Mark Jahnke Martin Oertle We’ve all done a “milk run,” whether it was stopping at cases where a country has two major markets both requiring several grocery stores on the way home or deciding to visit international service. Some airlines, such as Alitalia, have five extra stores while at the mall to eliminate the need for opted to split frequencies on longhaul routes between the future trips. A similar concept was once common for most air cities, while others route the flights through both airports. For travel service in the world. A milk run flight is a routing with instance, Varig longhaul services originated in Rio de Janeiro, two or more stops between the origin and the final flew to Sao Paulo, and then flew onward. Swissair had a destination. It is important, however to distinguish between similar approach in the 1990s with Geneva and Zurich before pure tech stops (for instance Pan American at Midway Island) making the latter its primary hub. and those that are also destinations (such as Shannon, Ireland). As airlines continued growing most carriers found that The milk run finds its roots in early aviation, when many passengers preferred nonstop to same-flight number service.
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