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Boeing Lands Large Chinese 787 Order January 31, 2005

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(Photo Credit: John Farrington)
On Friday, January 28, Boeing signed an order with a consortium of six Chinese airlines for sixty 787’s. In honor of the biggest 7E7 order to date, the aircraft manufacturer announced that the 7E7 would be renamed the 787. The number eight is considered extremely lucky in several Asian countries, including China. The sixty 787 jets on order will cost close to $7.2 billion, and the first aircraft will be delivered in early 2008. The six airlines that signed the highly anticipated rumor are China Eastern, Air China, Shanghai Airlines, Hainan Airlines and Xiamen Airlines. This recent 787 deal was a huge boost for Boeing, which has received little attention in lieu of the recent Airbus A380 unveiling.

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Editorial: Trans-Atlantic Low-Cost Carrier January 27, 2005

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Although airlines continue to post staggering losses, a Washington D.C based company is crafting an airline that may be the first of a new generation of low-cost carriers. The United States domestic market is already saturated with low-fare airlines such as Jetblue, Southwest, or Airtran, but SkyLink seeks to compete with the bread and butter international routes of major legacy airlines. SkyLink, which plans to rename itself before initial launch, will be a cheaper alternative to major carriers that fly across the Atlantic Ocean. SkyLink is trying to exploit a niche in the international market; essentially it will be an “international LCC.” No airline has attempted to launch a low-fare airline on international routes because they would encroach upon the most profitable routes for well-established airlines such as United Airlines or British Airways. These airlines, wary of the necessity to protect their bread and butter routes, must likely would match the prices of an upstart and adopt any tactic necessary to protect their domain. Additionally, passengers that have a long-relationship with a full-fare airline will be unlikely to defect because of accrued frequent flier miles. A low-fare international airline is a flawed idea for two reasons. First, international flights are inherently longer than domestic flights; therefore passengers require greater amentities than can be provided on extremely-densely populated aircraft that low-fare airlines tend to operate. Secondly, legacy airlines are likely to form an alliance and adopt extremely aggressive techniques to eliminate any upstart early on. Skylink plans to fly Boeing 767’s and offer two classes of seating on their aircraft. Nontheless, based on the initial details SkyLink has released, the airline’s business plan is not innovative enough to allow the carrier to survive the tumultuous atmosphere of the airline industry.

Airtran Rises Above Legacy Carriers January 25, 2005

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Posted by Hello

(Photo: Andrew Martin)

Airtran Airways today joined an elite group of US airlines that posted recent profits. Airtran posted a miniscule profit of $1.1 million for the fourth quarter, but managed to earn $12.3 million in 2004. While the profit may be more symbolic than anything else, Airtran’s CEO was satisfied with the fourth quarter results: “We feel really proud about we accomplished in the fourth quarter,” Fornaro said in an interview. “We were able to overcome big revenue issues.” Airtran managed to overcome hurricanes, high jet fuel prices, and other factors that plagued the entire industry, situations that only the most versatile airlines can survive. Perhaps, the recent success of Atlanta-based Airtran is the sign of a sunnier future for other airlines as well.

Source: Marketwatch

Airlines Waive Travel Fees in Midwest & Eastern States January 23, 2005

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Jetblue, Independence Air, American Trans Air, and a host of other carriers have announced in seperate press releases that fees relating to rebooking and reticketing have been waived. The airlines have adopted this tactic to make travel less stressful in areas where a fierce storm is blanketing regions with up to three feet of snow. Airports in New York City, Chicago, and Boston are reporting a huge number of cancellations and delays that will likely continue through tommorrow.

Southwest Posts Lower than Expected Profit January 19, 2005

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Recently Retired Southwest 737-200 (Bearfan)

Southwest announced today that they earned a profit of $56 million dollars in the fourth quarter. Although Southwest is one of the few airlines to post a profit, its shares dropped as it did not meet shareholders’ expectations. The airline blamed the smaller profit on high fuel prices and intense low-fare competition. This latest report proves that even airlines that hedged most of their fuel are not immune from the turbulence this industry is experiencing.

Source: Yahoo Finance

Airbus Officially reveals A380 January 18, 2005

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Airbus held today the official unveiling of its newest aircraft, the monstrous A380. The A380 now replaces the Boeing 747 as the largest commercial airliner currently operating. The festive, extravagantly decorated party featured heads of state from four European countries. It was rumored that Boeing might announce the 747 Advanced to disrupt the media attention Airbus is garnering right now; however Boeing made no such announcement. Estimates of passenger capacity range from four hundred to eight-hundred seats. Airbus released pictures of a mock cabin that looks extremely luxurious, but airlines will most likely try to squeeze in as many passengers as possible. So far, UPS and Fedex are the only US companies to order the A380.

Rumor: Boeing 747 Advanced on the Horizon? January 16, 2005

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A few of Aeroposte’s sources are discussing the possible launch of a Boeing 747 Advanced in the near future. Rumors are circulating that the airplane would fit in a niche between the A380 and the Boeing 777. This rumors sounds wild- but with the A380 official unveiling only a day and a half away, might Boeing try to muddy the waters by unveiling a competing aircraft? Only time will tell.

Aeroposte 3.0 January 14, 2005

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As our loyal readers have probably noticed, the look of the website has changed once again. Simply, it was not possible to add the features neccessary to allow this website to grow under the old look. The success of this blog hinges on the creation of a dynamic, knowledgable community. Aeroposte seeks to empower its readers to gain knowledge about the constantly changing commercial aviation industry.

110574597035967360 January 14, 2005

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Haloscan commenting and trackback have been added to this blog.

Boeing Announces Plans to Shut Down 717 Assembly Line January 14, 2005

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Boeing revealed today its plans to shut down the 717 assembly line in Long Beach, California in late 2006. Citing weak demand for the 717, at least 750 jobs will be cut. Boeing inherited the 717 when it purchased McDonnell Douglas in the late 90’s. Although a few operators have ordered large numbers of the aircraft, it never reached the sales expectations that its designers originally envisioned. The aircraft directly competed with Boeing’s smaller 737’s, Airbus’s A318, and Embraer’s new, widely popular EMB 170/190 series aircraft.

Source: CBS Marketplace