Corporate Travel News For The Americas

Delta Air Lines CEO Ed Bastian emphasised (14-Dec-2017) the carrier's plan to curb unit cost growth, excluding profit sharing, to between 0% and 2% in 2018 through a variety of productivity and efficiency initiatives. Mr Bastian also commented on Delta's order of A321neos, stating: "We think it's the best narrowbody aircraft product in the sky, not only for our customers, but for our people to work with". CMO Tim Mapes added that growing loyalty to Delta's brand creates a durable revenue stream. "We listen with a bias toward action... We listen with a bias toward doing something more because we genuinely are concerned with your experience and getting you to where you need to go with a great experience," he said. President Glen Hauenstein noted Delta's revenue momentum is the "best in years", adding the airline expects to generate positive PRASM in every quarter of 2018. Growth will be driven by Delta's network, revenue premium and increasing globalisation, with new and expanded joint ventures and investments expected to yield hundreds of millions of dollars in financial benefits. [more - original PR]

United Airlines filed additional changes to its planned summer 2018 Asia Pacific schedule, effective 24-Mar-2018 (Routes Online, 16-Dec-2017). Changes include adjustment of first class booking availability on three class Boeing 777-200ER aircraft. Previously, the majority of routes operated with the aircraft displayed first class as unavailable for booking from 01-May-2018. Details are as follows:

• Chicago O'Hare-Beijing: First class on 777 available to book until 31-Aug-2018;
• Chicago O'Hare-Hong Kong: First class on 777 available to book until 31-Aug-2018;
• Chicago O'Hare-Shanghai Pudong: First class on 777 available to book until 31-Aug-2018;
• Chicago O'Hare-Tokyo Narita: First class on 777 available to book until 31-Aug-2018;
• Newark-Tokyo Narita: 777-300ER continues operating daily, replacing previously filed 777-200ER, effective 01-Aug-2018;
• San Francisco-Chengdu: Timing changes from San Francisco, moving to midnight hours. Seasonal fourth weekly frequency, previously scheduled from 23-May-2018 to 03-Sep-2018, is cancelled. To operate with 787-8 equipment for the entire summer season, instead of between 26-Mar-2018 and 02-May-2018 only;
• San Francisco-Taipei Taoyuan: 777-300ER continues operating daily, instead of previously scheduled 777-200ER and 787-9, effective 25-Mar-2018;
• Washington Dulles-Tokyo Narita: First class remains available to book until 30-Apr-2018;
• San Francisco-Xian: Seasonal service cancelled.

United Airlines operates to 29 Asia Pacific destinations, with Northeast Asia and Southwest Pacific among the carrier's top five largest international markets by seats, according to OAG.

Melbourne Tullamarine Airport chief of aviation Simon Gandy, commenting on Qantas' plans to launch Melbourne-San Francisco service with Boeing 787-9 equipment, said (15-Dec-2017) the "new economics of long-haul services that the Dreamliner delivers mean non-stop services between Melbourne and San Francisco now stack-up commercially for airlines". Mr Gandy added the route is "the perfect example of just how these aircraft will change the face of global aviation in the coming years" and noted Qantas is Melbourne Airport's 10th airline to offer nonstop travel on a 787. Melbourne-San Francisco service will commence in late 2018. [more - original PR]

Meridiana announced (14-Dec-2017) its summer 2018 network from Olbia Costa Smeralda Airport. Meridiana will continue year round service to Milan Linate, Rome Fiumicino and Bologna and will also launch services to London Gatwick, Moscow Domodedovo, Venice, Turin, Bergamo, Milan Malpensa, Naples, Verona and Milan Bergamo from 25-Mar-2018. [more - original PR]

Norwegian Air Shuttle announced (14-Dec-2017) plans to launch the following Europe-US services with Boeing 787-9 aircraft in summer 2018:

• New York JFK-Madrid Barajas: Three times weekly, effective 18-Jul-2018;
• New York JFK-Amsterdam Schiphol: Four times weekly, effective 07-May-2018;
• Los Angeles-Madrid: Four times weekly, effective 16-Jul-2018;
• Los Angeles-Milan Malpensa: Four times weekly, 18-Jun-2018.

Norwegian offers 61 nonstop trans Atlantic services to 16 destinations in Europe and will be the sole carrier operating nonstop year round services from Los Angeles to Madrid and Milan. [more - original PR]

Qantas confirmed (15-Dec-2017) delivery its second Boeing 787-9, named 'Waltzing Matilda'. The second aircraft allows the carrier to commence international services with its 787-9s, initially operating Melbourne-Los Angeles service. The arrival of the third and fourth 787-9 aircraft in early 2018 will enable the carrier to commence Perth-London service, originating in Melbourne. All eight 787-9 aircraft will be delivered by the end of 2018, with four based in Melbourne and four based in Brisbane. [more - original PR]

Airlines Reporting Corporation (ARC) and Expedia, via their joint '2018 Air Travel Outlook Report' released (12-Dec-2017), the following insights into international economy and premium passenger flows to top airport destinations:

• Asia: ARC's data revealed intra-Asia traveller volumes are driving international arrivals to airports across Asia and much of this is concentrated within North Asia;
  
  • Bangkok, Hong Kong, Seoul and Taiwan are the key economy travel hubs;
  • Hong Kong, Singapore, Bangkok, Shanghai and Tokyo are the key premium travel hubs;
• North America: US inbound international traffic flows vary widely by destination, driven by a variety of flight origins within Europe, Asia and Latin America as top feeder markets to the busiest US airports;
  
  • New York is the top inbound economy travel hub for the US;
  • New York and Los Angeles are the key premium travel hubs in North America;
• Europe: London is the key feeder of passenger volumes to the busiest destinations;
• Asia-origin flights (Flights with segments originating in North Asia):
  
  • Shanghai, Taipei and Seoul are fueling inbound travel to key European airports/cities;
  • Dubai is the hub of Middle East travel into London and Paris/Europe for economy cabin travelers;
• Latin America: Cancun dominates the region. Cancun's popularity is predominantly driven by international economy travel from the US. [more - original PR]

United Airlines announced (13-Dec-2017) plans to launch three times weekly San Francisco-Papeete service on 30-Oct-2018 with Boeing 787 aircraft, subject to government approval. The carrier will operate the route until 28-Mar-2019. The new service represents United's 13th new international route in 2017. According to OAG, Air France, Air Tahiti Nui and Hawaiian Airlines also operate Papeete-US services. [more - original PR]

Moody's maintained (11-Dec-2017) its stable outlooks for global airlines and aircraft leasing, as well as the global shipping and North American railroads, under its 2018 outlook for the global transportation sector. Key highlights include:

• Global airline industry's stable outlook is driven by projections for 8.5% to 10% operating margins for Moody's-rated airlines through 2019, with US carriers remaining the most profitable. Moody's projects industry revenue will grow by about 4%, offsetting higher labor and fuel costs. Moody's VP - senior credit officer Jonathan Root said: "Steady global economic growth will support rising demand for air travel over the next 12 to 18 months. Developing countries will continue to lead capacity growth, followed by Europe and the US";
• Aircraft leasing industry will see stable net interest margins of 8% to 9% over 2018, though competition from new entrants will limit the upside. Global air travel growth is currently tracking about two ppts above its long-term trend of around 4.5%, with capacity expansion remaining in line with growth in demand. [more - original PR]

Eurowings announced (12-Dec-2017) plans to introduce a business class offering on selected long haul services by the end of Apr-2018. Branded as 'BIZclass', the carrier will offer larger seats with more legroom and the capability to convert into a fully flat bed. Eurowings' existing booking classes - Basic, Smart and Best - will remain unchanged. Eurowings CEO and COO Oliver Wagner said the carrier is "fine-tuning the product and have some great surprises in store", while confirming plans to present the concept in Mar-2018. "We see strong demand for another top product from our company on routes with a higher proportion of business travel, for example on US flights from Düsseldorf to New York, Miami or Fort Myers", said Mr Wagner. [more - original PR]