What's Ten Years After All? Airbus A350 Slots Available in 2017

The Airbus PR machine has been rather busy, announcing that Taiwan’s China Airlines (CAL) has received board approval to order up to 20 Rolls-Royce Trent XWB-powered A350-900s; Afriqiyah Airways has signed a firm contract for the purchase of six A350-800s; and Libyan Airlines has inked a firm contract for the purchase of 15 Airbus aircraft, including four A350-800s.

With the exception of CAL – which picked the A350 over the Boeing 787 – there is nothing unexpected in Airbus’ announcements. Afriqiyah and Libyan made initial commitments for A350s at the Paris Air Show in June.

What does bear note, however, is the delivery dates for these aircraft. Of the three carriers, CAL holds the earliest slots, with delivery between 2015 and 2020.

The two Libyan operators won’t start receiving their A350s until 2017! How either airline knows what its lift requirements will be in ten years is beyond me. It seems akin to selecting your child's first car - a decade before he or she turns 16. But such is the predicament that future A350 customers must consider.

Airbus chief salesman John Leahy recently said Airbus’ production lines are now sold out for several years, with the next A350 slots available in 2017.

Bring it On: American Airlines Pilots' Union Seeks to Conduct All Flying at the US Major

American Airlines pilots' union, the Allied Pilots Association (APA), doesn’t tend to mince words.

It was pretty clear, therefore, what was being demanded when the APA last week issued a scope proposal to management, which states the union expects “all flying performed by or on behalf of the company shall be performed by pilots on the American Airlines seniority list – with no exceptions".

Be it flying mainline or regional service, the APA wants its members in the cockpit. Yep, that means feeder service too! The timing is clutch. American parent AMR Corp recently announced plans to divest regional feeder American Eagle Airlines next year.

The APA's proposal is part of a larger offer tabled by the union under collective bargaining negotiations with management.

This summer the union called for American to provide pilots a 30.5% pay increase, annual pay raises of 15% and signing bonuses to pilots. That was rejected, as was a proposal submitted in October that called for “adjusting current pay rates to account for post-1992 annual inflation, as reflected by the consumer price index”.

See for yourself if American’s pilots deserve a raise. This handy calculator, based on figures derived from the APA’s 2003 contract, tells you just how much the pilots are making now. (Photo above from APA web site)

JetBlue Airways and LiveTV Agree to Talk Connectivity

JetBlue and subsidiary LiveTV have agreed to talk about the carrier's WiFi connectivity services (dubbed BetaBlue) in advance of a December 11 statement. Thanks guys. Here are notes from my conversations this morning.

LiveTV vice-president of sales and marketing Mike Moeller says:
1) "When we stated this process, we sat back and ... David Neeleman, our chairman, held up his Blackberry and said 'if you make that work on the aircraft, you have solved the problem'."

2) "This is the start. That’s why we call it beta. We want to make it better. We will continue to make software upgrades. [We'll] see what passengers like and dislike, find the kinks in the system and continue to make it better."

3) "When you advertise broadband, people want to use YouTube, streaming video. Even if someone had all 4MHz (of ATG spectrum) it’s difficult to solve that." [LiveTV has 1MHz, AirCell 3MHz]

4) "We started discussion with them [RIM] earlier this year. This has all been kept very, very secret."

5) "The ultimate experience[for passengers is to have] a TV in front of them with 36 channels, watching the game, Blackberry is working, and look at flight attendant and have your beverage. We think that is the ultimate 'died and gone to airplane heavy'."


A JetBlue spokeswoman says:
1) JetBlue feels it has the capacity available to support the service because “at any given one time, there is going to be customers who are watching their television or listening to their radio …how many would press send at the same time versus composing or reading an e-mail?”

2) “We will continue to listen to what our customers want as we test current offerings available on BetaBlue and … based on that will develop a plan and time frame to roll out fleet wide.”

3) We’ve optimized the network for e-mail without attachments and for instant messaging [as well as] instant text messaging through Yahoo Messenger”.

4) “We’re looking at the next logical step in the evolution of our products, what connectivity we can offer. Shopping would be one of the next services we could provide. But right now we’re focused on perfecting what we’re offering – allowing customers to keep in touch with folks on the ground when in flight.”

5) "Yahoo as well as RIM have been a huge part of the development process with us. Yahoo is the number one e-mail provider in the US with 262 million e-mail accounts and they are a popular service. Blackberry is also an extremely popular service. We thought it was important to focus on brands that customers know and love on the ground and bring it to them in the air as well. "

6) Forging partnerships with the likes of MSN and Google to offer passengers access to other free e-mail accounts “is something we’re going to pursue in the future”.

7) With respect to satellite-based broadband service: “We could do it potentially, and we could do it with LiveTV but the business model for that is cost prohibitive. If you look at Connexion by Boeing, they had to charge customers $20 to $30 dollars and [customers] weren’t willing to pay $20 or $30 for that service. We think that is a business model that would be cost prohibitive to provide it for free to all customers and that is something we want to focus on to be able to offer it free for everyone.”

8) JetBlue does not have a time frame for the length of the trial. It will last “several months at least”.

9) Devices used by JetBlue passengers will need to “have an independent on and off switch for WiFi and cellular” as in-flight cellular services remain banned by the FCC and FAA.

10) JetBlue is not interested in eventually allowing passengers to use their mobile phones for voice calls during flight, even if regulations are relaxed. “We believe that our customers really would value a silent connectivity experience ... We would support silent options like text messaging, but we’ve heard loud and clear from our passengers, and we will not be pursuing any cell phone usage calls.”

Sifting Through the Hype: Just What Can JetBlue's Connectivity Solution Offer?

JetBlue Airways today confirmed it will start testing wireless connectivity services onboard an Airbus A320 beginning Dec 11.

Kudos to JetBlue for this well-timed marketing move – the carrier will technically be the first in the US to offer connectivity over WiFi-enabled devices. But let’s put their announcement in perspective, shall we?

First of all, JetBlue’s offering will be limited at best. The carrier says passengers who have WiFi-enabled laptops – AND Yahoo Mail or Messenger accounts – will be able to send and receive messages during flight. Passengers who have RIM’s new WiFi-enabled Blackberries – the 8320 and 8820 models – will have access to emails and messaging.

JetBlue’s LiveTV subsidiary last year won a 1MHz narrowband license during the FCC’s auction of 4MHz of spectrum in the 800MHz band allocated to air-to-ground services.

AirCell, you’ll recall, won the exclusive 3MHz broadband license at the FCC auction, and is preparing to offer service onboard American Airlines' transcontinental Boeing 767s (the test begins as early as March). Passengers will have access to e-mail, Internet and VPN accounts via virtually all WiFi-enabled devices.

I’d love to know more details about JetBlue’s offering (just how many passengers will be able to send/receive Yahoo email at one time, at what speed, etc, etc), but JetBlue has told me they don’t intend to discuss the issue until next week. Spoil Sports.

AirCell to Launch on American Airlines Boeing 767 as Early as March

American Airlines could launch AirCell’s wireless broadband connectivity service on its transcontinental Boeing 767-200ERs by the end of March, says AirCell senior vice-president airline solutions Fran Phillips.

This is a few months earlier than the mid-2008 launch previously predicted, and could indicate just how eager is American to offer connectivity to passengers.

Installation on the first 767 is slated to begin on or around December 18 in Kansas, says Phillips. Once completed, supplemental type certification (STC) on the type will be sought. If the trial is successful, equipage of the domestic fleet is anticipated.

So, just what types of WiFi-enabled handheld devices will the AirCell service support?

Here is the list: Alltel PPC 6800, Apple iPod Touch, AT&T 8525, AT&T Tilt, Blackberry 8320, Blackberry 8820, Cingular 8125, HTC PPC6700, Mogul by HTC, Nokia N95, Qwest 6700Q, Samsung SCH–i760, Sprint PPC-6700, T-Mobile Dash, T-Mobile MDA, T-Mobile Wing, Verizon Wireless XV6700 and Verizon Wireless XV6800.

American Airlines and British Airways May Try Again to Seek Antitrust Immunity

Consolidation and capacity reductions were among the hot topics addressed by airline executives today at the Calyon Securities Annual Airline Conference.

But AMR executive VP of finance and CFO Thomas Horton had some interesting thoughts about American Airlines' alliance with Oneworld partner British Airways (BA), and how that might be expanded in the future.

American is one of four carriers, including BA, United Airlines and Virgin Atlantic, with rights to serve Heathrow from the USA. An open skies accord brokered between the USA and the EU, which goes into effect in March, will overturn these restrictions and open up access to the UK airport.

Even though this will add competitive pressure for American at Heathrow, the carrier believes some good will come of it.

"The good news is that we think it will remove one of the regulatory entitlements to us being able to expand our relationship with BA to include antitrust immunity," says Horton, noting that most other US majors have been able to achieve immunity with their transatlantic partners.

American has previously tried and failed to gain clearance to expand its relationship with BA.

"We haven’t reached any conclusions on that, but it would seem that the marketplace would make that more likely as we move forward," says Horton.

Panasonic Claims Global Connectivity Solution After Solving "Network and Coverage Issues"

At the risk of turning this blog into in-flight connectivity central (would that be so bad?), I have another little nugget to share.

In recent months, Panasonic has been rather quiet about its Ku band-based connectivity solution. Today, it became a little bit more verbal.

“We now have solved the network and coverage issues so as to provide a global solution. We have also solved the size and weight issues so as to provide a solution for all commercial aircraft including regional jets,” says Panasonic director of strategic product marketing David Bruner.

“Finally the cost of the system is now relatively small making this service feasible to even the most thrifty of the low cost carriers.”

Rival Thales recently confirmed it will focus on offering airborne broadband connectivity solutions using Inmarsat’s new aeronautical service SwiftBroadband, after determining there are “significant economic challenges” with Ku band outside of the continental United States.

Specifically, Thales VP and general manager for IFE Alan Pellegrini said: “Ku-band may take hold, primarily in the USA, but frankly given Connexion by Boeing’s demise, the significant investment they made, the lack of business model they’ve proven, I think it is prudent to move at a modest pace with that particular technology.”

Panasonic clearly disputes this assessment of the market. The devil is in the details of its offering, of course. And a customer announcement would be nice. But I’m keen to explore…