American Airlines Announced an Order for 42 Boeing 787-9

Even though most global carriers tighten their belts for the bumpy economic times ahead, at least one US carrier is planning for the next upturn. American Airlines announced an order for 42 787-9s on 15 October, with an option on 58 more. Delivery is due from 2012 onwards.

The deal was hailed by the carrier’s president cargo, Dave Brooks, as “great news” for cargo. “These aircraft are the long-range, intercontinental 787s, and since they are extremely fuel-efficient, we will be able to carry a lot of cargo on them,” he says.

Indeed, Brooks says the new aircraft will be even better cargo performers than the 777, which currently form the backbone of American’s fleet. It has 47 of the aircraft, and they are often regarded as mini-freighters because of their enormous belly capacity. But Brooks says the 787-9 will have four more LD-3 positions than the 777s, and the fuel efficiency to allow them to be filled.

Boeing says that with 20 per cent more fuel efficiency, the aircraft could provide up to 45 per cent more cargo revenue capacity than comparable aircraft today. The 787-9’s range of 8,500 miles also comfortably tops the 777’s 5,500-6,000nm maximum.

Where the 787-9s will be deployed has not yet been decided – 2012 is after all a long time in the future and the economic outlook uncertain – but replacement of the carrier’s 72 767s is likely to be a priority.

However, AMR chairman and chief executive officer, Gerard Arpey, also hopes that the 787-9s will be used to expand into new international markets, particularly if American, Iberia and British Airways succeed in their current application to the US DOT for antitrust immunity.

American will be getting the aircraft at a rate of six a year. The fact that it has got such early slots on the much-delayed 787 programme has raised eyebrows – even Air New Zealand, launch customer for the 787-9, is not getting its first aircraft until around the same time.

The maiden flight of the 787 is supposed to take place in the fourth quarter of this year, though the current machinists strike, which started in early September, must cast some doubt on that, as well as on the timing of the first delivery to All Nippon Airways, due for next August.

At the same time as American unveiled its new order, it announced a US$360m net loss for the third quarter, following a $284m fall in the second quarter ($1.4bn including exceptional items) and $328m in the first. Brooks says the results were “in line with expectations”, however, and the airline ended the quarter with $5.1bn in cash.

Cargo traffic, measured in ton miles, fell one per cent in the quarter to 509 million, while revenues rose 17.3 per cent to $230m. Altogether, cargo traffic is down 1.7 per cent for the year-to-date, while revenue is up 13.6 per cent.

Airlines in India Cancelling Their Orders with Airbus and Boeing

Air India, Jet, Kingfisher Airlines and other carriers from the country have placed orders with Airbus and Boeing totaling more than $30 billion in the past three years as economic growth spurred optimism about travel demand.

Carriers are now struggling to raise funds because overcapacity, higher fuel prices and slowing demand will likely cause the industry to post $2 billion of losses this year, CAPA said. Local banks have cut lending to airlines, Civil Aviation Minister Praful Patel said yesterday.

Lenders worldwide have also curbed loans across all industries on concerns about getting their money back amid bank failures and an economic slowdown.

Boeing is confident it will keep its orders in India, even though carriers are struggling to find funds.

``It's a little bit harder for Indian aviation because of the overcapacity,'' said Boeing's Senior Vice President Dinesh Keskar. ``Who will give you money if they know that you will finish it in a certain amount of time?''

Toulouse, France-based Airbus in May said India was the weakest airliner market and predicted that carriers may delay or cancel plane orders in the next 12 months.

India's government will ask local banks not to put ``undue pressure'' on airlines, minister Patel said: ``We are finding airlines complaining that banks and institutions are not very happy to lend to them,'' Patel said. ``Airlines should be given breathing space to tide over this bad patch.''

Indian airline losses, which the International Air Transport Association says will be the biggest in the world this year after the U.S., are also spurring consolidation. Jet Airways and Kingfisher each bought a discount airline last year and this week they said they will cooperate on routes and share facilities.

The two airlines aim to save as much as 15 billion rupees ($307 million) with their alliance.

Kingfisher has also scaled backed growth plans. Airbus said in September it won an order from Arik Air of Nigeria for three A340-500 aircraft that were originally built for Kingfisher. The planemaker has also agreed to postpone deliveries of 32 single- aisle planes, the Financial Times reported Aug. 25, citing an interview with Kingfisher Chief Executive Officer Vijay Mallya.

Jet is considering delaying the delivery of two Boeing 777 aircraft by a year, Saroj K. Datta, executive director, said in July. The airline said that, it cut 800 jobs and may increase this to as many as 1,900 positions.

China Airlines Boeing 747-400 hit severe turbulence en route from Hong Kong to Bangkok

China Airlines Boeing 747-400 flight hit turbulence 20 minutes before landing, injuring 21 passengers and 11 crew members, before landing safely at Bangkok's Suvarnabhumi Airport.

Fourteen of the injured were from Thailand, the US and Israel, the airline said. It was the second incident of severe turbulence for the carrier in less than two weeks.

More than 30 people were injured, including one man who suffered a fractured spine, on September 20 when another China Airlines jet hit severe turbulence en route from Taiwan to Indonesia's Bali island