Dubai International Airport

Royal Brunei plans long-haul product upgrades while refocusing short-haul to compete against LCCs

Royal Brunei Airlines (RBA) aims to significantly improve its long-haul product next year following the introduction of its Boeing 787 fleet as part of a new strategy to focus on brand in the long-haul market and price in the short-haul market, where it faces increasing competition from LCCs. The long-haul product enhancements will include 18 lie-flat business class seats on the 787s, which will be placed by early 2014 on the carrier’s London, Dubai and Melbourne routes as well as potentially to Hong Kong and Shanghai.

RBA is now slated to receive its first of five 787s in Aug-2013, as CAPA first reported in Nov-2011. The carrier will be the first in Southeast Asia to receive the 787. RBA deputy chairman Dermot Mannion said on the sidelines of the CAPA Airlines in Transition CEO Summit last week that the carrier plans to place into service three 787s by the end of 2013 with the final two being delivered in 1Q2014.

flydubai edging towards profitability, making it the fourth profitable carrier in the UAE

flydubai looks like it is set to join sister carrier Emirates in the black this year, according to CEO Ghaith al Ghaith. While it is too early for the carrier to provide an estimated figure, Mr Al Ghaith, talking to Gulf News, said flydubai expects to make a profit in what is just its third full year of operations. However, the CEO expects a "difficult year with the increase in oil prices".

Asia Pacific airports move up the ranks in 2011, with Beijing this year to overtake Atlanta

The rankings of the world’s busiest airports for 2011 show key developments and lasting changes in global aviation, although the world’s busiest airport by total passenger movements, Atlanta Hartsfield-Jackson International Airport, continued to hold off Beijing, the world’s second busiest airport, in 2011, according to Airports Council International (ACI). It is, however, expected that Beijing, driven by exponential GDP growth, will overtake Atlanta in 2012, ending the airport's 14-year reign in the top spot.

While Beijing Capital is the dominant airport in China, it is on track to become be the world’s busiest hub by the end of this decade, leaving London and even ambitious Dubai in its wake. And new developments will ensure the city of Beijing has an airport in the top spot: its new airport at Daxing, south of Beijing, could have up to nine runways and ultimate capacity to handle around 370,000 passengers per day, or a staggering 135 million passengers p/a. This would increase capacity at Beijing area airports to around 220 million p/a – almost a quarter of a billion passengers.

Emirates responds to airberlin-Etihad alliance with capacity and equipment upgrades to Germany

A significant initial outcome of last year's airberlin-Etihad alliance is the capacity increase airberlin and Etihad have implemented over the past week between Germany and Abu Dhabi. Emirates has responded with its own capacity increases, the fact of which is unsurprising. What is interesting is how Emirates had operated to the restrictive and limited German market with A340-300s, which it is in the process of disposing. Emirates in recent times had largely confined the A340-300, with older and less premium interiors, to secondary markets, but the rapid increase in competition in the form of airberlin-Etihad is seeing Emirates deploy its more competitive Boeing 777-300s.

Royal Brunei settles in for medium term with expanded Australian services

Royal Brunei Airlines (RBA) this month is increasing capacity to Melbourne and adjusting the schedule there in a bid to generate scale and improved financial performance. The government-owned carrier is settling into its restructured route network that in mid-2011 saw many loss-making long-haul routes eliminated, which RBA deputy chairman Dermot Mannion says is helping create financial stability as costs decrease and cash flow improves. The carrier will continue to monitor its regional network but is unlikely to open new destinations, preferring instead to add capacity when opportunities arise.

The restructure left RBA with significant excess capacity on its widebody Boeing 777 fleet but RBA later this year will return two of its six leased 777s and retain the rest until 787s arrive in late 2013. RBA expects the aircraft, combined with a new interior and redevelopments at Bandar Seri Begawan Brunei International Airport, will give the carrier a boost after high fuel prices and increased competition made it undertake the restructure and staff retrenchment.

airberlin prepares to drop Bangkok in order to boost Middle East, Africa and US services

airberlin plans to cancel service to Bangkok from both Dusseldorf and Berlin Tegel in late Mar-2012 as part of a network re-alignment with new shareholder Eithad Airways. The capacity changes will allow airberlin to upgrade its Mombasa service to year-round and allow for the introduction or increase of previously announced Abu Dhabi, Las Vegas, Los Angeles and New York services. airberlin will also shift its Germany-Phuket flights to originate in Abu Dhabi, the hub of Etihad.

The moves culminate airberlin’s recent hybridisation push in an effort to be Germany’s second business airline. The market has not yet responded as the carrier’s costs are high but revenue low, reflective of an under-performing short-haul business. The Etihad agreement, and recent capacity changes to increase profitable long-haul services, will better position airberlin to move upmarket.