Farewell Silverjet

There is enough coverage of this already, but essentially Silverjet has been crippled by the rising cost of fuel, and the unwillingness of investors to throw money into the airline industry at a time of recession. The supply of cheap(in price and quality) business class seats to New York also increased from 1 April when the limits on the numbers of US airlines that could fly Heathrow to the USA were lifted, and Delta and Continental stepped in. They benefit from large domestic feeder networks in the USA (and linkages with Skyteam airlines Air France, KLM and Alitalia). Silverjet had no feeders.

Maxjet, EOS and Silverjet were all three all business class airlines flying from London (Stansted the first two and Luton for Silverjet) to New York (Dubai also for Silverjet). L'Avion remains flying from Paris to NY, and both Lufthansa and Singapore Airlines operate all business class flights of their own (and BA will be doing so from next year). The business model isn't wrong, it's just the airline business is difficult, requires network economics, and access to the most lucrative airports - in that respect, all three startups lacked the capital to fight it out in difficult times.

Meanwhile, it's cheap to fly Trans Atlantic in economy, premium economy and business class - still!

Farewell EOS

Undoubtedly the best of the business class only airlines has folded, with the bankruptcy of EOS reported in ABTN.

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EOS flew 7 Boeing 757s in a 48 seat only configuration between London Stansted and New York JFK. It was losing money, but at relatively modest levels. It appears that it has failed to raise adequate capital to keep operating, and given the financial credit crunch, reductions in staff and bonuses in the City of London, it was going to be difficult. Virgin Atlantic's recently upgraded fast checkin and Clubhouse lounge at Heathrow Terminal 3 have also made a big difference to that airline's product, and BA's services to NYC have not (yet?) been seriously hit by Terminal 5's problems, as they remain at Terminal 4 (with recently upgraded Club World seating).

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It would be nice if BA's Open Skies bought up EOS's rather nicely appointed 757s. However, it is a shame to lose the only one of the all business class carriers that actually had seats that rivalled BA and Virgin Atlantic's business class products. Silverjet's sloping lie flat seats are closer to what American Airlines offers, albeit with a far better soft product and on the ground product.

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Maxjet was squeezed at the budget end, as it essentially competed with premium economy. EOS was squeezed at the premium end, not having connections and without the frequent flyer benefits that BA and Virgin Atlantic can offer. It appears that an era of all premium travel is changing from being led by independent operators to being led by the likes of Lufthansa and BA.

BA launches "Open Skies" website

In response to the opportunities presented by the opening up of international airline flights between the EU and the USA, British Airways is launching a wholly owned subsidiary - Open Skies - to fly between continental Europe (Paris at least, but also possibly Amsterdam and Frankfurt) and the USA (New York JFK is the priority). Open Skies will not be an all business class airline like EOS, Silverjet and L'Avion. All the details are on its website which shows it will have business, premium economy and economy class, all on Boeing 757s.

Its economy class looks nothing special (right). However it will only have 5 rows at the back, so it wont be a plane dominated by the back seats. It will be a standard 3-3 configuration.

Premium economy with a 2-2 configuration and a 52" seat pitch (far superior to premium economy on current BA or Virgin Atlantic flights, but akin to BMI's) will be filling a niche, since premium economy is virtually unknown on most airlines in continental Europe (and from the USA). 28 seats in premium economy means seven rows, and frankly with seats like these, BA's premium economy is better than what some airlines offer across the Atlantic - certainly with few exceptions, these are at least as good as the seats in business class for most US airlines.

However, the primary point of this airline is to offer BA's fully flat bed business class. With the exception of United on one route, no airlines offer this between continental Europe and the USA. BA can beat Air France, Lufthansa, KLM and others. The business class offering is to use the old BA Club World seats that are being replaced by the redesigned New Club World seats on all of the 747s and 777. The seats are being refurbished and reused, but are still very good.

So here is hoping BA can make this fly. It should be able to offer a compelling product - fully lie flat seats, a premium economy that is like 1990s business class and a small economy class cabin.

Singapore Airlines starts A380 services to London Heathrow

Today the first commercial Airbus A380 flight arrived at London Heathrow with Singapore Airlines starting a daily service between Heathrow and Singapore with the A380.
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Meanwhile Reuters reports the next route to get the A380 is Singapore to Tokyo.
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This brings the A380 destinations to three, with Sydney of course being the original. While in theory one could fly all the way from Sydney to London and back by A380, the truth is that the best connections with Singapore Airlines don't allow that. Singapore Airlines has three flights a day between Heathrow and Singapore, and the same between Singapore and Sydney, but only one flight on each route is by A380 (Singapore Airlines only has 3 of the planes at the moment).

Singapore Airline's schedule for the A380 to and from London Heathrow will settle down as follows:

From 30 March:

SIN-LHR Depart 11.30pm- arrive 5.55am

LHR-SIN Depart 11.55am- arrive 7.45am
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The Sydney route schedule from 30 March (until summer time ends in April) is:

SIN-SYD Depart 8.35pm- arrive 6.55am

SYD-SIN Depart 9.05am- arrive 2.20pm

but check Singapore Airlines website for details

Qantas upgrades New Zealand domestic services too

In response to Air NZ, Qantas has also decided to target the premium market on domestic services. In October 2007 it announced it would introduce its "Cityflyer" brand, which it uses in Australia, to revitalise its profile in the NZ domestic market, a market that some thought it might vacate given the arrival of Pacific Blue, and insider knowledge that indicates it has always lost money on NZ domestic routes.

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Qantas has launched its upgraded service. It is catching up with Air NZ introducing self service checkin, online checkin, as well as enhancing on board service with complimentary morning papers and the reintroduction of on board food and drinks services, with a complimentary bar after 4pm.

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Qantas is offering:

- Complimentary hot breakfast snack or fresh fruit;

- Complimentary cocktail snacks from 4pm to 7.30pm with free wine, beer and soft drinks;

- Inflight entertainment (audio over headsets and a video programme);

- Minimum 1000 frequent flyer points for every flight, regardless of fare paid.

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In addition, Qantas is refurbishing the interior of its Boeing 737s and the domestic Qantas Club lounges at Auckland, Wellington and Christchurch, two of which haven't had serious investment since the Ansett days. The Wellington-Christchurch route is also seeing the return of Qantas.

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Perhaps the two premiums Qantas offers over Air NZ are frequent flyer points on every flight, and inflight entertainment. The race is on to see how customers react to what is the SECOND generation of quality domestic airline service in New Zealand, and which airlines will be the winners.

Air NZ upgraded domestic service

The introduction of Koru Hour by Air NZ on its domestic Boeing 737 services heralds the end of the fully low cost model for its domestic market. It launched Express Class back in 2001 partly to arrest costs, but also to be pro-active competitively against what was seen as the imminent arrival of Pacific Blue.

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Express Class saw the airline do away with inflight meals (which were served on all routes with aircraft that had cabin crew) and business class. The public indicated that it preferred paying lower fares than getting food on a short flight, and with the exception of MPs and the occasional super wealthy individuals, business class on domestic flights largely comprised of free upgrades and connections by those to and from long haul international business class flights. I once experienced the absurdity of it all consuming, just, a 3 course hot breakfast from Wellington to Christchurch in domestic business class. Express Class meant that only tea/coffee and mineral water would be offered with a cookie. This looked remarkably like what Air NZ once offered before the arrival of Ansett NZ in the mid 1980s.

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Express Class was a stunning success, largely by shifting the entire sales model from travel agents and call centres to the internet. The public could compare fares online and book at minimal cost, and with the added bonus of self service checkin at the airport, it significantly reduced costs for the airline, and improved service. Meanwhile, the cuts in fares dramatically increased demand for domestic air travel. The effect was significant enough that it effectively killed off competition in the form of the Northerner between Wellington and Auckland, and forced bus companies to cut their fares.

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However, the premium end of the market has felt somewhat neglected. One of the positive changes was that food in Koru Club lounges was significantly improved, to offset the end of catering on board, but the airline felt the backlash from an announcement late last year that it would be adding a row of seats to its 737 fleet and reducing the leg room in almost all rows to a standard level. With the planned Qantas alliance dead and buried by competition authorities, Air NZ feared that it could face being cherry picked on both sides by Qantas and Pacific Blue.

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Pacific Blue's entrance could rival Air NZ for low cost traffic, whereas Qantas was quite capable of appealing to the premium end of the market with upgraded product. Air NZ's decision to adopt Koru Hour is its first step to secure the business market which it largely has to itself. It is an enlightened move.

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Koru Hour is described on the website as follows:

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All weekday 737 and A320* flights between Auckland, Wellington, Christchurch Dunedin and Queenstown in the mornings before 9am, and evenings between 5pm and 8pm are KoruHour flights. Start the day with great tasting Gravity plunger coffee, OJ, muesli or a muffin and a complimentary newspaper. For evening flights wine, beer and L&P are added to the beverage service and are served with a selection of Kapiti cheese, crackers and grapes.

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So in effect, a light breakfast on morning business period flights, and drinks and snacks during the evening. A light snack service is also offered during the day and late.

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"During the day, after 8pm, and all weekend, a selection of great tasting snacks are being introduced - healthy dried fruit, savoury Cassava chips and sweet NZ lollies as well as tea, coffee and water."

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So what? Well for business travellers, the convenience of a light breakfast on board means a lot, especially those without Koru Club access, and adding some drinks in the evening will add to the product seeming to be better than Pacific Blue's low cost approach. Smart travellers will compare one way fares of all airlines and choose whether to sacrifice service for price, or whether they can get a better deal on Air NZ with better service.

Virgin Blue introduces premium economy

After having been launched and touted as a wholly low cost carrier, ABTN reports that Virgin Blue has finally conceded that there is money to be made at the premium end of the market. It has now launched premium economy on Australian domestic services flown by its Boeing 737 fleet. Apparently it will also be extended to its new Embraer 170 and 190 fleet as well.

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Premium economy involves priority checkin, lounge access, 32kg baggage allowance and fully flexible and refundable fares - in other words much like business class.

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On board the front three rows will have the middle seats blocked out so that the 3-3 configuration will be 2-2 with the middle seats able to be folded down to be used as an extra table. Seat pitch is to be increased to 34", similar to the best long haul economy class on airlines like Air NZ, Thai and Malaysian.

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It is notable that premium economy is NOT available on Virgin Blue's international counterpart - Pacific Blue as explained on the website description of the 737 seating.

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Good for Virgin Blue, and this clearly is some competition for Qantas for the high end corporate market. Virgin Blue can provide fully flexible fares cheaper than Qantas on domestic business class, but still offer more legroom and width than standard economy.

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Meanwhile, it is worth noting Qantas has upped its games on domestic Australian services, with new separate Business lounges adjacent to Qantas Club exclusively for business class travellers and top tier frequent flyers (Qantas Platinum, One World Emerald), with enhanced facilities. With short haul international style seats and full hot meal service, Qantas has the premium edge, but Virgin Blue may have a value advantage.

BA business class from City Airport?

BA has proposed flying Airbus A318 aircraft (which it doesn't yet have) from London CITY Airport to New York (probably JFK) in an all club class configuration. These flights are widely expected to stop at Shannon airport westbound (as the A318 couldn't have enough range with the weight restrictions applying at LCY to make the trip) to refuel, but fly non stop on the return leg.

Now this does have three possible appealing qualities:

1. Avoiding Heathrow. Despite the purported improvements to be brought in weeks by Terminal 5, it is still easily a 45 minute-1 hour trip from the City to Heathrow, with a minimum 1 hour checkin at best. City airport is less time to reach with shorter check in thresholds (BA proposes 15 minutes!). Essentially an easier airport all round.
2. More pleasant flight. A small all business class plane will quickly fill, disembark and luggage will come off it quicker too. With all business class there should be less bewildered tourists to have to worry about holding the flight up.
3. Westbound avoiding US immigration/customs. Now this is a trickier one. Shannon airport has full US immigration/customs facilities, so offers travellers the prospect of clearing US entry requirements at a relatively quiet airport before reaching NYC (where arrival could be treated as a domestic entry). How this works in practice is another thing, but it could prove to be worth the hassle of early disembarkation.

Mark Frary at the Times thinks it could be a great idea.

Delta airlines to offer yet ANOTHER new business class?

Some time ago I posted about Delta improving its international business class product, although still with cradle seats.

More recently Delta was the very first US airline to announce it was introducing fully lie flat seats in business class. These seats will be familiar to those who know the herringbone configuration that Air Canada and Cathay Pacific have introduced (which is a cheaper version of the seats seen on Virgin Atlantic and Air New Zealand). These seats are being fitted to Delta's new Boeing 777-200LR (long range) aircraft and were to be retrofitted onto its entire international 777 fleet.

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Now Delta has announced yet another design according to Business Traveller as seen in the image above. This version will be retrofitted to the long haul Boeing 767-400 fleet, in a 1-2-1 configuration (which is clearly superior in width to all other airline 767 configurations in business class which are typically 2-2-2 or at best 2-2-1). It looks like a direct rival to United Airlines, nd BMI, all of which have introduced forward facing fully flat bed business class seats (but none come close to outclassing Singapore Airlines new product).

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On top of that the cradle seats are being upgraded for the long haul Boeing 757 fleet!

Delta's press release on the latest Business Elite product (for 767s) is here.

Delta's press release on last Business Elite product announcement (for 777s) is here.

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It looks like finally some US airlines are catching up and surpassing the business class products of airlines elsewhere. No continental European airlines have fully lie flat business class seats. Maybe Delta CAN win premium traffic on the trans Atlantic route off of BA and Virgin Atlantic after all?

Air France and KLM to cram them in the back

Most airlines flying Boeing 777s equip them in economy class in a 9 abreast configuration, either 3-3-3 or 2-5-2. A handful put in 3-4-3 10 abreast configurations, obviously compromising aisle width and seat width to cram in some more seats.



Business Traveller reports that Air France/KLM has announced its configuration for its new fleet of Boeing 777-300ERs (a common type for replacing older Boeing 747s) and it includes a 10 abreast configuration, not something likely to please economy class travellers. However, airlines well know that most economy class travellers are driven by price - very few know about the aircraft they will fly on and the seating arrangements. Sadly this means that airlines that sacrifice space for seats will still win by selling more seats at lower prices. As Business Traveller reports:

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"This new configuration for the B777 is controversial, because although the B747 and the Airbus A380 also feature ten-across seating, they have wider cabins. A B777 has a width of 5.86 metres, whereas the B747 is 6.10 metres wide. On that basis, the A380’s cabin is positively luxurious, with a width of 6.58 metres."

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Nevertheless, I believe that airline passengers should inform themselves about what is on offer, so I have done a survey, simply using the Seatguru website, as to the width and pitch of airlines with Boeing 777s. Some are willing to reduce width and increase pitch, such as Emirates, although this seems to defeat the purpose somewhat.



9 abreast

BA, Continental, Delta, United - 31" pitch, Thai - 31-33", Air Canada, Air France (except 300ER series), Air New Zealand, Alitalia, American, Cathay Pacific, KLM (200 series only) - 32" pitch, Singapore Airlines - 32", 34" (200ER only), EVA - 33" pitch, Korean - 33-35" pitch, ANA, 34" (200 series) 31" (300 series)
Asiana, Malaysian 34"

10 abreast

BA (some 777s) 31", Austrian 32", Emirates 33-34"

EOS to Dubai

The demise of business class only airline MaxJet has seen attention shift to the remaining all business class airlines operating to and from London: Silverjet and EOS.
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Now following Silverjet, EOS the best of the two, is expanding to Dubai. EOS flies from Stansted, whilst Silverjet flies from Luton. However, both now offer compelling alternatives to BA, Virgin Atlantic and Emirates, and both are battling for a market that may only sustain one. Silverjet has 100 seats on a 767, all of an angled lie flat design (similar to what Lufthansa, Air France and Qantas currently use) in a 2-2-2 configuration (like most airlines in business class on a 767). BA’s 767s typically have 180 seats.

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EOS has only 48 seats on a 757, in a 2-2 configuration. Continental Airlines long haul 757s typically have 175 seats. EOS has fully lie flat seats, closer in design to the BA, and new generation United Airlines business class lie flat beds.

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Hopefully both will survive, as both offer something easier and faster than what the big carriers offer from Heathrow

Heathrow Terminal 5 and the subsequent changes

The big forthcoming airline news in London is the imminent opening of Terminal 5. Terminal 5 promises to be a revolutionary experience for airline travellers going to and from London Heathrow airport. BAA's website has a lot of detail about the terminal, which is supposed to allow for quick checkin, security and a more comfortable, spacious experience for travellers. If it proves to be true, then it will be a boon for Terminal 5's only airline - British Airways. However, following the hype of Terminal 5, there are a whole gamut of changes at Heathrow guaranteed to keep any flyers on their toes.

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I have attempted to compile a list of as much as I know that is accurate to date. Happy to have any comments to correct any errors from those who know better about dates and changes. I have listed changes according to airlines below. The changes are primarily by alliance, as the theory is that Terminal 1 becomes the Star Alliance terminal, Terminal 3 the OneWorld terminal, Terminal 4 the Skyteam and all others terminal and Terminal 2 is wound down and demolished to make way for the new Heathrow East Terminal.

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British Airways, Iberia and Qantas

On 27 March BA flights that currently operate to and from Terminal 1 will shift to Terminal 5, except flights to and from Spain, and those operated using Boeing 757 aircraft. Terminal 1 currently mainly services BA domestic and European flights, with selected long haul routes.

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On 30 April BA flights that currently operate to and from Terminal 4, except flights to and from Australia via Bangkok and Singapore will shift to to Terminal 5, this encompasses almost all BA long haul routes.

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On 21 June BA flights to and from Spain, and remaining Boeing 757 operated routes will transfer to Terminal 3. This is because all other OneWorld airlines are progressively consolidating into Terminal 3, and BA codeshares routes to Spain with Iberia. Iberia is shifting from Terminal 2 to Terminal 3 on that date as well.

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On 11 October BA flights to and from Australia via Bangkok and Singapore will shift to Terminal 3 as well, for the same reason. Qantas is also shifting from Terminal 4 on the same date.

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Remaining OneWorld airlines

All other OneWorld airlines are to consolidate at Terminal 3, which is to get a progressive upgrade after the completion of Terminal 5. American Airlines, Cathay Pacific, JAL and Royal Jordanian are already located there. On 21 June, Finnair will relocate from Terminal 1 to Terminal 3. From 11 October, all OneWorld airlines will be operating from Terminal 3.

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Star Alliance

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With BA vacating Terminal 1, Star Alliance airlines are intended to move progressively to that terminal, with a major upgrade of the terminal planned over the next 12-18 months. BMI, South African Airways, Asiana and LOT all currently fly to and from Terminal 1. On 29 March US Airways will commence flights to and from Terminal 1.

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On 5 May, Air New Zealand and United are both expected to shift from Terminal 3 to Terminal 1.

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On 25 October, Lufthansa, Austrian Airlines, Swiss, TAP Portugal and Croatia Airlines are all expected to shift from Terminal 2 to Terminal 1.

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There is no timetable for Air Canada, SAS, Air China, ANA, Thai or Singapore Airlines to vacate Terminal 3 at present. The current understanding is that Singapore Airlines does not plan to shift to Terminal 1, as there are no airbridges at Terminal 1 capable of handling the Airbus A380.

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Skyteam airlines

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With BA vacating Terminal 4, it too will also get refurbished for a new life being the home of the Skyteam alliance of airlines, plus almost all other airlines unaffiliated with other alliances. Continental Airlines, China Southern Airlines and Northwest Airlines will commence flights from Terminal 4 on 29, 29 and 30 March respectively, with Delta on 26 October, but none of them currently fly to Heathrow. KLM is the only Skyteam airline currently flying to and from Terminal 4.

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On 11 October, Korean Air will shift from Terminal 3 to Terminal 4.

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On 18 October, Aeroflot, Air France, Alitalia and Czech Airlines will shift from Terminal 2 to Terminal 4.

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All other airlines

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Well there is a enormous range of changes, but here are some general rules:

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On 18 October, all remaining airlines in Terminal 2 that are not OneWorld or Star Alliance will shift to Terminal 4. Terminal 2 will then be closed.

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With the exception of Brussels Airlines, all airlines in Terminal 4 not mentioned above remain there. Brussels Airlines shifts to Terminal 3 in October apparently.

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Only BA and Finnair are leaving Terminal 1, no other airlines are moving from Terminal 1.

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Around half of the non-aligned airlines at Terminal 3 are remaining the rest are going to Terminal 4.

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So there you have it. This is subject to change, and with more airlines joining alliances it may mean even more realignments at Heathrow. However, it does mean that there will be new experiences for probably the majority of travellers through the airport, and hopefully for the better. Terminal changes at Heathrow will undoubtedly cause enormous confusion in the next year!

United slowly rolls out new business and first class

United Airlines pleasantly surprised its top end paying passengers late last year announcing a new first and business class which includes fully lie flat bed seats in business in a configuration not completely dissimilar to BA. Besides Delta with its diagonal lie flat bed design, no other US based carrier has introduced fully lie flat beds in business class. Details of the upgraded first and business classes are here. This should mean that at least one US carrier has a product that can start to be competitive with European and Asian airlines, as long as its soft product and lounges can also be brought up to scratch.

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However the rollout has not been fast. So far only one Boeing 767 and one Boeing 747 have been refurbished, with a second 767 about to be rolled out, and they appear to be concentrated on the Dulles to Frankfurt (IAD-FRA) route, and the occasional domestic US route. However, United will spend the next 18 or so months rolling out the new seats on its long haul 747s, 777s and 767s, with priority on routes to Europe, Asia and Australia (where it has the most serious competition). United says that it plans having 12 767s upgraded by September 2008 and 15 747s upgraded by December. Boeing 777s clearly come last with 50% upgraded by March 2009!

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The current United long haul first class seat is reasonable, but the business class is an old fashioned cradle seat, akin to the seats Air NZ now only has on its 767s, and Lufthansa used to have. As I fly United maybe once every couple of years, I look forward to reconsidering it as an airline worth trying on long haul international routes once more, but clearly I'll be looking for 767 flights first.

All BA 747s now equipped with Next Generation New Club World

Just to report that according to Flyertalk, all of BA's long haul Boeing 747 fleet is now equipped with the upgraded Club World seating, which is a generation ahead of its then leading edge fully lie flat long haul Club World seats.

What this means is that if you check in advance, you can be sure that flying on a 747 service you will have next generation New Club World.

The Boeing 777s are next to be upgraded, although at present none have been.

New Zealand's first A380 services

Business Traveller reports that Emirates will start flying Airbus A380 whalejets to Auckland from February 2009. Apparently flights EK412/EK413 (using Airbus A340s) which currently fly Dubai-Sydney-Christchurch will be redirected through to Auckland, but using new A380s.

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It is highly likely these A380s will be in the long haul lower density configuration (Emirates is planning three different A380 layouts, one will be in a high density two class "cram them in" option, probably for shorter flights to South Asia from Dubai). Emirates promises to rival Singapore Airlines in all classes, but we will have to wait and see. One of the biggest problems of Emirates is that it has different products depending on the aircraft. On its Boeing 777s it crams 10 seats to a row, whereas Air NZ, BA and Singapore Airlines fit 9, although it offers greater seat pitch than any of the others in 777s. On its A340s its seat pitch is tight, but it is the standard 8 in a row.

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A bigger question is whether Emirates is adding a flight to Auckland, replacing one, or is terminating flights to Christchurch as a result, as it is not clear.

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Other airlines flying to NZ that have ordered the A380 are far less likely to fly them to NZ:

- Singapore Airlines flies 777s to Christchurch and Auckland, with a 747 service daily to Auckland. However its latest timetable drops the 747 flight from the middle of the year replacing it with a 777-300ER. It is unlikely SQ will put the A380 on services to NZ;

- Qantas has ordered A380s, but its only large aircraft route nowadays is Melbourne-Auckland-Los Angeles with 747s, partly because most fully laden 747s can't fly non stop Melbourne-LAX.

- Thai, Malaysian, Korean are all highly unlikely to fly A380s to NZ, as none fly their largest aircraft to NZ (747s) now.

Rebirth of airline service blog

Finally I have some time to do something about THIS little blog.

I am refreshing it, with the primary intention of reporting on major changes in international airline product standards. This will have a particular bent towards services to and from the UK and to and from Australia and New Zealand, being the countries I am most closely associated with.

The intention is to report on three types of changes:

1. New hard products: Airline seats, new classes (disappearance of classes) and new/upgraded lounges.
2. Major soft product upgrades: Catering, on board service, landside and airside services at airports, inflight entertainment.
3. Updates on rollout, new airlines or closure of airlines, joining of alliances, new aircraft.


So I hope this blog becomes informative and I fully intend to update it as regular as need be.