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Latin America’s New Giant: Which Alliance?

Published by Mark August 16th, 2010 in Airlines, Alliances, American Airlines, Aviation Policy, Brazil, Chile, Ecuador, Europe, LAN Airlines, Oneworld, SkyTeam, South America, Star Alliance, TAM and USA. 0 Comments

On Friday, Brazil’s largest airline TAM and neighboring rival, LAN, announced that they would merge their corporate entities in a KLM/Air France-type model. Each airline will maintain its existing brand, but its management and ownership will be one organization. This would create a South American giant, with LATAM Airlines being the name of the new entity.

Some stats of the combined airline:

Revenue 2009: USD 8.49 billion (USD 3.6 billion from LAN and 4.89 billion from TAM)
Pax per year: 45 million/year
Staff: 44,000 (17,700 from LAN and 26,300 from TAM)
Fleet: 241 aircraft (98 from LAN and 143 from TAM) plus outstanding orders of 110 by LAN and 90 by TAM
Destinations served: 115
Countries served: 23

Of course, profitability of the new airline is a goal here and, in general, any merger that eliminates competition is bad for the flying public. Will we witness a rigorous model of anti-trust regulations on international routes, as you would see in the US or in the EU? Probably not…

Which of the three major alliances LATAM will join remains a major outstanding question. TAM and LAN are in separate alliances, Star Alliance and One World, respectively. And unless it is already decided, I’m sure all three alliances (the third being SkyTeam,) are trying to woo the new carrier.

If they remain in separate alliances, would they enjoy the benefits of being in both alliances, as any flight on LAN could also be a flight on TAM? Or would other alliance members disallow this advantage? More than likely, LATAM will have to choose one alliance and to date, no mention of alliances was made by either carrier, which may suggest they’re at the dance waiting for the best offer to come their way. If it has any significance, TAM only recently joined Star and signed code-share agreements with other Star members, and must have done this while simultaneously working on the deal with LAN.

For TAM/LAN’s biggest cities in the US-JFK, MIA-OneWorld, via American Airlines, provides the greatest connectivity at these airports and AA carries more passengers to Sao Paulo, Rio de Janeiro, Santiago, Guayaquil, and Quito than any other US carrier. As well, Iberia is a member of OneWorld for connections throughout Europe. However, the seamlessness of OneWorld may be too much, as TAM/LAN and AA/Iberia are major competitors on one hand, and on the other, the dominance of one alliance on US-South America and Europe-South America may block it from ever obtaining regulatory approval.

If one alliance is to be selected, our money is on Star Alliance.

Aeroflot at Hanoi

Published by Mark July 30th, 2010 in Aeroflot, Hanoi and Vietnam. 0 Comments

Shot from the terminal, an Aeroflot 767-300ER (VP-BDI) parks at a gate at Hanoi’s Noi Bai International Airport. Flight 541 comes in from Moscow (SVO) at 805am and departs as SU542 at 1000am.

A Visit to Quy Nhon, Vietnam

Published by Mark July 26th, 2010 in Nha Trang, Qui Nhon, Vietnam and Vietnam Airlines. 0 Comments

Used by the US as a port during the Vietnam War, Quy Nhon (also spelled Qui Nhon) was a sleepy town then and remains so today. There isn’t much to the city, but the people are friendly and, unlike folks in some places, they want you to take their picture.

I had stayed at the Seagull Hotel-a very nice place and well-priced at around USD 35. Clean room, complete with a new TV and a balcony. But I waited over 50 minutes for my dinner in the restaurant, watching people who arrived after me begin their meals. I eventually walked out and head to the other high-rise hotel (there are only two) on this strip of the beach, and had some tasty grilled squid that arrived (relatively) promptly.

If you’re looking for a beach in Vietnam, skip Quy Nhon and head down to Nha Trang, about a four-hour drive to the south, and closer to Saigon. There, you’ll find nicer and more numerous hotels and a greater offering of food and drink. But expect to pay a little more, if not double, to stay in Nha Trang at a comparable hotel.

However, if you’re looking for a beach city that is off the beaten path, is generally inexpensive, and has A320 service, then Quy Nhon may be worth checking out. Vietnam Airlines operates daily A320 service between Quy Nhon (UIH) and Saigon (SGN), supplemented by ATR’s three times per week, and five A320 flights weekly to Hanoi (Tuesdays and Saturdays excepted). All Quy Nhon flights are out of Phu Cat airport, built by the USAF during the war, which is a painful 40 km (and $15 outside of the city) given the relative size of the city. Previous called Phu Cat Air Base, it was home to the 37th Tactical Fighter Wing, 12th Tactical Fighter Wing, and the 6259th Air Base Squadron, all part of the 7th Air Force, and is now used by both the Vietnamese Air Force and the national airline, Vietnam Airlines.

Walking around, you’re certain to be offered drinks in this friendly town.

Late evening on the beach.

US Plane at Hanoi Airport

Published by Mark July 22nd, 2010 in Hanoi, USA and Vietnam. 0 Comments

A US flag on a plane at Hanoi (HAN) is not a common sight, yet that’s exactly what I saw on the top of a tail earlier today. Getting closer revealed this plane, below. Turns out Secretary of State Hillary Clinton is in town, meeting today with local officials.

December Year-over-Year Passenger Numbers up in Cleveland

Published by Mark January 20th, 2010 in Cleveland, Detroit, Los Angeles, New York City and USA. 0 Comments

December was the first month in 2009, and the first time since August 2008, where passenger numbers at Cleveland Hopkins International Airport (CLE) exceeded passenger levels of the same month from the preceding year, another sign that the recession is easing as the Cleveland and national economies are recovering. The data include both domestic and international passengers. The increase was small— 0.05% —but it was positive, and the latest data point in a generally steady increase from a low of -20% in May 2009 (year over year). This is significant as Cleveland, a strong manufacturing center, was hit hard by the recession. However, its increasingly diversified economy has helped the city’s recovery. Cargo volumes, which first turned positive in September, was up 12.2% year over year in December.

In New York City, for November (the latest data available), there were 103,579 more revenue passengers (both domestic and international) in November 2009 than in November 2008—an increase of 1.3%—indicating improvements there as well. (Numbers were up for EWR and LGA, but down for JFK). NYC’s 2009 numbers also exceeded those of 2008 in September by 1.5%, though were down in October by 0.2%. NYC’s relative low point in 2009 was in March, where passenger levels were down 13% from March 2008, with the best faring airport that month being JFK at -10.2%.

In Los Angeles, the numbers are even stronger. LAX hit positive year-over-year numbers in September at 1.0% and remained in positive territory through October (at 1.7%) and November (the latest available data) at 3.4%.

Detroit, on the other hand, continues to suffer, with passenger numbers down 8.6% in October year over year (latest available data).

On the national level, looking at October 2009 data (the latest available) for revenue passenger miles for US carriers on domestic and international routes, the general curve is improving with one month, September, where 2009 levels exceeded those of 2008. September was up by 0.4%, a marked improvement from -10% in January, -13% in February, and -11% in March.

Thus, on the barometer of air travel as a specific economic indicator, the economy is indeed improving, as the numbers here show.

On Location in: Nha Trang, Vietnam

Published by Mark January 18th, 2010 in Nha Trang, Photos and Vietnam. 0 Comments

During the Vietnam War, Nha Trang, located near Saigon and on a natural beautiful beach was a popular spot for Americans on R&R. Today, Nha Trang remains a popular beach getaway from all corners of Vietnam. A 6km beach runs right through the center of the city, lined with nice hotels, restaurants, and shops.

Getting there: The airport serving Nha Trang is the airfield at Cam Ranh Bay, a major American port and airfield built during the Vietnam War. Cam Ranh Bay is approximately 35km south of Nha Trang. The airport in the city of Nha Trang was closed to the public around 2004 and is now a military-only airport.

The Nha Trang Cam Ranh Airport has a new, clean terminal with six gates. One can get from the airport to the city by a bus to the city center or by a flat-rate taxi directly to a hotel in the city center. The taxi is 260,000 Vietnamese Dong, about USD14.

Here is the Business Class lounge in the Departure Area of NHA. A table of snacks is laid out in this room, just to the left of where this shot was taken:

Once out of the airport and into the city, you can kick back on the beach and grab lunch or a beer (or dinner and a cocktail) at the Sailing Club (below), located on beachside of Tran Phu Street. They have an extensive menu, good drinks and you can chill there for as long as you like. A few steps down is the Louisane Brewhouse, which brews their own beer (and hence the name) which are pretty tasty. I tried two of them, but the two I wanted most–a red lager and a brew with ginger in it–were not offered that night).

And to relax further, there is plenty of beach:

And when you get tired of the beach, you can hit some sites in the city. Here is the centuries-old temple, Po Nagar:

From Nha Trang, you can take one of numerous boat trips to go scuba diving or to visit some of the islands off of the coast. Here is the Tri Nguyen Aquarium, on Mieu Island, just off of the coast of Nha Trang. An all-day boat trip from 8am to 3pm will hit a few islands and set you back around US$6 or $7.

Vietnam Airlines

Published by Mark January 14th, 2010 in A321, Hanoi, Nha Trang, Photos, SkyTeam, Vietnam and Vietnam Airlines. 0 Comments

I just had the pleasure of flying Vietnam Airlines, on a domestic flight from Hanoi to Nha Trang. Great service, new aircraft, no headaches, and on-time performance summarize the trip; this article is a quick review of the airline. The airline is prepping itself for full integration into SkyTeam this June, when it becomes a full member.

Selecting and purchasing a ticket: The airline’s official website is easy to navigate and presented many options for the route (such as departure time and various prices for each departure time). Buying the ticket online with a credit card was seamless, though it took over 20 minutes before I received the confirmation email and receipt.

The E-ticket: Buying the ticket online, you get an e-ticket. While this saves you the hassle of obtaining and not losing a paper ticket, in reality at the airport, the “e-ticket”, functions like a regular ticket. You cannot print out boarding passes from your own computer or from kiosks at the airport; rather, you must still go to the ticket counter with your e-ticket printed out and show appropriate travel documents (for a domestic flight: an officially-issued Vietnamese ID if you have one or a passport if you don’t). You then get your boarding pass at the counter.

At both Hanoi and Nha Trang Airports, there was no jetway used for this flight, and you must board a wide bus-like vehicle to travel between the airplane and the terminal, and climb (or descend) the portable stairs at the aircraft parked on the apron, away from the terminal.

On-time performance: We departed the gate and arrived about ten minutes late (both on HAN-NHA and on the return, NHA-HAN).

Inflight service: Wet napkins were distributed about 15 minutes after take-off, followed by a snack for this 90-minute flight. The snack came in a box (see photo below) and contained, water, an apple, and a pastry-like roll. On the return flight, a quite-horrible quarter-inch thick piece of bologna between two slices of bread sat in the box, which I had to try to confirm that it was as bad as it looked. Suspicion confirmed.

There was some visual entertainment, some show similar to “Candid Camera” playing, though no headphones were distributed. When asked, the flight attendant said that they don’t provide them for such a short flight.

Overall, it was an excellent flight—new and clean aircraft (a comfy A321), snack provided, decent price, pleasant crew, and on-time service.

Vietnam Airlines currently operates a modern fleet of 52 aircraft of various types, serving 19 domestic and 23 international cities. And the airline is steadily expanding. They have on order 27 new A321’s and two additional wide body A350’s. With a total of 41 A321’s, VN will operate the second largest fleet of the type, after Lufthansa with 61 (counting current operations and those on order). This past November, the airline placed an order for four A380s, Airbus’s new super jumbo jet. As well, they have an outstanding order for 16 of Boeing 787 Dreamliner aircraft.

The A321 (as opposed to an A320 or 737) is the backbone of the Vietnam Airlines fleet, with which it can reach all of Southeast Asia, as well as China, Hong Kong, Taiwan, Korea, and Japan with a two-class configuration. This June, Vietnam Airlines will be become an official member of the SkyTeam alliance, joining Delta, Air France, KLM, Aeromexico, Alitalia, Air Europa, CSA Czech Airlines, Kenya Airways, Aeroflot, Korean Air, and China Southern Airlines, filling out the route network of the alliance which, until VN joins, remains weak in Southeast Asia.

Vietnam Airlines aircraft parked at the terminal at Hanoi Noi Bai International Airport (HAN).

Terminal at Hanoi Noi Bai International Airport (HAN).

The snack served on Hanoi-Nha Trang. Not the tastiest, but its nice to be able to get a snack these days.

Business class in the two-class configuration of VN’s A321 fleet.

Air Comet Ceases Operations

Published by Mark December 23rd, 2009 in Air Comet and Spain. 0 Comments

We’re sad to report that Air Comet has ceased operations–and being days before Christmas, has stranded some 7,000 passengers across Spain and Latin America when available capacity on other carriers is hard to come by. Air Comet–formerly Air Plus Comet–has been struggling financially and a British repossession order on December 18th on behalf German creditor Nordbank seized some of the Air Comet’s aircraft for non-payment, dealing the airline mostly likely its final blow.

One of our loyal readers wrote to us, reflecting on his fond memories of the airline:

an awesome airline — i remember showing up 25 minutes before the flight, paying cash (the only thing they took), and flying to madrid for less than 50% of what everyone else was charging…in high season. and the crew was nice, the plane a classic 1972 boeing luxury liner…RIP

Farewell, Air Comet…

At Last, a Passenger Bill of Rights

Published by Mark December 21st, 2009 in Airlines, Aviation Policy, USA and Weather. 0 Comments

The US Department of Transportation today announced what has been called by many advocates as a ‘Passenger Bill of Rights’, placing a time limit for domestic flights that airlines may hold passengers on board without food and on the tarmac before takeoff. Here at AirlineCity, we applaud this executive action (which does not require the approval of Congress, who themselves have been working on some such legislation for some time now). Though the cases where passengers are held on the tarmac for hours on the end are in the minority, they do occur, and airlines often take a pretty heavy-handed approach to treating customers. Any other industry, such restaurants, would never be able to get away with maltreatment of a diner for hours on end.

Issued on the eve of the holiday travel rush, the rule states: (quoting DOT’s press release):

The new rule prohibits U.S. airlines operating domestic flights from permitting an aircraft to remain on the tarmac for more than three hours without deplaning passengers, with exceptions allowed only for safety or security or if air traffic control advises the pilot in command that returning to the terminal would disrupt airport operations….Carriers are required to provide adequate food and potable drinking water for passengers within two hours of the aircraft being delayed on the tarmac and to maintain operable lavatories and, if necessary, provide medical attention.

The penalty for violating the new rule, which should take effect in about four months, could be steep: up to $27,000 per passenger.

I imagine things will get sticky at around the three hour point. For example, an aircraft waiting for takeoff that it is second in line but the clock ticks 2 hours and 58 minutes would be violating the law within a few minutes, and a return to the gate would delay the flight even further.

We may need to see some refinements after the law is truly tested in the field, but it’s a great starting point. The next step should be the development of a global/ICAO standard for all worldwide flights, or at least time limits built into the bilaterals between the US and foreign countries as the new law only applies to domestic flights.

Mayday Call on Air France 445 (the former AF447) on 30Nov2009

Published by Mark December 5th, 2009 in A330, Accidents, Air France, Air traffic control, Brazil, France, Paris and Rio de Janeiro. 0 Comments

On the night of 30 November 2009, an Air France A330, flying Rio de Janeiro (GIG) to Paris (CDG) called Mayday as a response to severe turbulence due to weather and to alert others in the area that it was deviating from this its approved flight level without ATC authority, (which could not be reached/obtained). It was flight AF445–the new number assigned to what was once AF 447 that crashed into the sea several months earlier. And it was at approximately the same location that AF447 crashed. AF445 landed safely in Paris. Any data from this recent incident—given the same aircraft, location, and airline—may have been meaningful in determining the final events of AF447, the bulk of which has never been found. However, upon landing in Paris, the aircraft was immediately redeployed and sent to India, and its data recorders were overwritten. Air France reportedly stated that a formatting error would have made the data unusable anyways. France’s BEA is investigating.

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Latin America’s New Giant: Which Alliance?

Aeroflot at Hanoi

A Visit to Quy Nhon, Vietnam

US Plane at Hanoi Airport

December Year-over-Year Passenger Numbers up in Cleveland

On Location in: Nha Trang, Vietnam

Vietnam Airlines

Air Comet Ceases Operations

At Last, a Passenger Bill of Rights

Mayday Call on Air France 445 (the former AF447) on 30Nov2009

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