TOMORROWS TRANSPORTATION NEWS TODAY!
Bombardier has received a letter of intent from Air Canada for 45 new jets. Deliveries of the planes would begin in 2019, with an order value of $3.8 billion based on list price. The Air Canada order for 45 aircraft is for the larger CS300 version passenger jet. The order includes an option for an additional 30 CS300 jets, and order conversion rights for the smaller CS100 model.
Airbus gets a $1.8 Billion Commitment From Philippine Airlines for the purchase of 6 A350-900’s, with an option for 6 more. The aircraft deliveries will begin in 2018. The airplanes will be used to replace older, less fuel efficient Airbus A340 models. The order value is based on list price, but airlines usually negotiate substantial discounts on orders.
Okay Airways of China signs commitment for $1.3 billion worth of Boeing 737 jets at list price. The deal for 12 aircraft will include 11 of the newer Max models, and was signed at the Singapore Airshow. Okay Airways is the first privately owned air carrier in China, and currently has a fleet of 18 aircraft. The airline is planning to grow its fleet to expand its ability to tap the growth in the mainland China travel market. The airline is also planning to purchase wide body aircraft to launch international routes.
Boeing South Carolina plant has delivered its 100th 787 airplane. The 100th delivery aircraft was a 787-8 model. It was delivered to American Airlines, which still has another 28 Dreamliner aircraft on order. The Boeing South Carolina plant will also be the exclusive assembly line for the upcoming 787-10, the biggest version of the Dreamliner. Assembly of the 787-10 is scheduled to begin this year, with the first delivery planned for United Airlines in 2018. Singapore Airlines and Etihad Airways both have 30 of the 787-10 on order, the largest customers for the model.
The Government Accountability Office auditors have rejected the bomber protest filed by Boeing and Lockheed Martin. The protest disputed the GAO’s award of the bomber contract to defense contractor Northrop Grumman. The Office stated that it has reviewed the original bomber bids, and did not see any reason to overturn the contract. The contracts value is classified, but is estimated to be worth $21.4 billion for the first 21 bombers. The new long range strike bomber is targeted to replace the aging fleet of US B-2 and B-52 bombers.
The San Francisco International Airports new $102 million control tower was honored as the top engineering project in the state of California for 2015. The construction project won the Golden State Award, issued by the American Council of Engineering Companies. The council stated that the award recognizes the towers innovative and collaborative design and construction. The new tower is the tallest structure in the US employing a vertical post tension system, allowing the tower to remain standing and operational in the event of a major earthquake. The towers conception and design was created by the architecture firm of HNTB. The 221 foot tall tower creates a distinctive form that sets new design standards and seismically sound requirements. The facility includes office space and passenger walkways connecting Terminals 1 and 2.
Rendering from www.archinect.com
Malaysia Airlines has announced that it will delay its plan to sell off its Airbus A380 super jumbo jets. The airline has stated that it will now keep the 6 A380’s in its fleet until at least 2018. This follows the air carriers retirement its Boeing 777 fleet. The airline has been unable to sell the giant Airbus airplanes over the last year, as it moves to cut costs and restructure. Malaysia Airlines has been trying to climb its way out of a giant hole after the disappearance of flight 370 and the shooting down of flight 17 over the Ukraine in 2014. The goal is to return to profitability by 2018, the airline has stated. It’s facing some trouble with that plan, due to both a softening China market, and the depreciation of the local currency against the US dollar.
Canadian aircraft manufacturer Bombardier has been dealt another blow in the company’s search for orders of its new C Series aircraft family. Canada’s WestJet has stated that it does not see a fit for the airplane in its current fleet plans. The new C Series airplane has a seating capacity range of between 100 and 150 seats. WestJet reports that this size aircraft is too small for its main route services going forward, and too big for its regional routes. WestJet is currently focusing on utilizing 168 seat Boeing 737-800 aircraft for its main service routes, and has 25 of the new Boeing 737 Max 7, and 40 of the 737 Max 8 airplanes currently on order. For its regional feeder network, WestJet does operate Bombardier’s Q400 turboprop aircraft. The airline does operate some smaller jet aircraft, but it’s looking to offload these airplanes going forward. The airline recently announced that it sold 10 of its smaller Boeing 737 series 700 airplanes to Southwest Airlines, as part of its strategy to move away from the smaller 130 seat models.
In other WestJet news, the airline has also stated that it’s seeking to slow down the scheduled deliveries of its Bombardier Q400 turboprops it has on order. The giant drop in oil prices has had a devastating effect on the economy of the Canadian province of Alberta, and has resulted in dropping passenger traffic numbers in the effected areas. WestJet also stated it’s in discussions with the Boeing Company to possibly defer delivery of 3 new 737 airplanes, and has plans to return 9 leased aircraft to their owners in the next 2 years.
Bombardier currently has 243 firm orders for the C Series aircraft, with the programs cost $2 billion over its original budget of $3.4-billion. The Quebec government recently stepped in to help shore up Bombardier’s balance sheet, with a $1 billion US financial contribution to the program.
American Airlines and ride share service Uber have formed a partnership to help provide better and faster service for its passengers. The deal includes 11 airports in the US, and the airline will offer bonus frequent flyer points to help promote the service. Once a customer books a flight online, American Airlines will then send an e-ticket confirmation by email, allowing the customer to click on an “Uber” reminder link to setup their ride share. The American Airlines app will then guide customers to the closest Uber pickup location at the 11 airports included in the deal. The airports include Charlotte, NC; Chicago, IL (O’Hare), Dallas, TX (DFW); Los Angeles, CA (LAX); New York, NY (LaGuardia and JFK); Philadelphia, PA; Phoenix, AZ; San Francisco, CA; San Jose, CA; and Washington, DC (Reagan). We’ll have to stay tuned to see if this results in more protests from taxi drivers in the effected airport locations.
In a move sure to annoy jetBlue, Southwest Airlines has confirmed it has applied to add new service to Long Beach Airport in California. The airline carrier this week formally applied for slot authority to offer new service to the City of Long Beach, subject to government approval. Long Beach would be the 5th airport in the Los Angeles basin to be served by the air carrier. The others served are the Bob Hope Airport in Burbank, John Wayne Airport in Orange County, Los Angeles international Airport, and the Ontario Airport. Airline officials stated that they plan to operate 9 flights a day, but did not disclose what cities they plan to serve. Southwest has stated it’s planning for growth of between 5 and 6 percent in 2016.
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