2018 Skytrax airline awards: Largely the same winners

Top airlines remain largely the same ones as last year’s.

Yet again we note how the top ten airlines remained largely the same ones as last year’s. If you’re good, you’re good, so it seems, and consistency won the day.

Singapore Airlines (SIA) which was second last year switched places with last year’s winner Qatar Airways. All Nippon Airways (ANA) and Emirates Airlines held steady in 3rd and 4th position. Cathay Pacific moved down one rung to 6th,, exchanging places with EVA Air. Lufthansa held its 7th position. Garuda Indonesian followed Hainan Airlines up one notch to 8th and 9th position respectively. The only new entrant to the list was Thai Airways International, which actually only moved up one rung from 11th last year, edging out Etihad Airways as it fell from 8th to 15th position.

So much for the excitement as the winning airlines, going by the result of the survey, continued to please their customers who found no reason to think otherwise of them.

Unlike some high-brow surveys whose results lean heavily on the premium class, Skytrax does readings across all classes.

Best for First Class was SIA followed by Etihad and Air France. This used to be the realm of Asian and Middle-East carriers, and let it not be a surprise to see two European carriers in the ranking. Lufthansa took 4th place.

Best for Business Class was Qatar followed by SIA and ANA. You would imagine that if an airline is good in First, it should not be too far off in Business. However, Air France was not placed in the top ten list and Lufthansa ranked 8th.

Best for Premium Economy was Air New Zealand followed by Qantas and SIA. It looks like the Pacific airlines are pretty good with this product. Lufthansa and Air France ranked 4th and 5th.. There was an absence of Middle-east carriers because they didn’t believe in such a class. Qatar chief CEO Akbar Al Baker had said: “We won’t roll out premium economy… I don’t think there is room for premium economy in our region, and of course in Qatar Airways. We give you a premium economy seat with an economy class price.” Sounds familiar if you recall the early days when SIA too expressed the same skepticism. However, Emirates has said its new Airbus A380 expected to be delivered in 2020 will feature premium economy.

Courtesy Star Alliance

Best for Economy Class was Thai Airways followed by SIA and Qatar. This category was dominated by Asian carriers with the exception of Lufthansa in 9th position.

Only these six airlines were placed in all three categories of First, Business and Economy (excluding premium Economy since not all airlines offer this sub-class): ANA, Cathay, Emirates, Lufthansa, Qatar and SIA. You can then rest comforted that whatever class you travel with these airlines, you will be treated without discrimination.

But is the Skytrax survey a good guide in choosing which carrier to fly with? Generally people can agree on makes a good airline. What matters when you travel with an airline? For the long haul, seat comfort is an important feature. Inflight entertainment, if you look for some distraction and are not otherwise doing something else or trying to catch up on shuteye. A good meal, if you are not one who will not eat airline food no matter what (unfortunately this is not featured in the Skytrax survey). Cabin cleanliness, of course, and that includes the condition of the washrooms. How often do you see the crew give it a clean-up and spraying some kind of deodorant to try and make it as pleasant as it possibly can be? Above all, the service provided by the cabin crew, to be treated in a friendly manner and with respect. Not forgetting service on the ground in the event that you may need assistance, as when your bag is damaged or has not arrived with you.

Perhaps the ranking for some of these more specific services may be of some help:

Best Economy seat (First and Business should be way better anyway): 1st Japan Airlines, 2nd SIA and 3rd Thai Airways.

Best cabin crew: 1st Garuda, 2nd SIA and 3rd ANA.

Best inflight entertainment: 1st Emirates, 2nd SIA and 3rd Qatar.

Cleanest cabin: 1st ANA, 2nd EVA and 3rd Asiana Airlines.

Best airport service: 1st EVA, 2nd ANA and 3rd Cathay.

But, of course, you can’t expect a single airline to be best in all categories, but you get a pretty good idea of where they all stand, perhaps with exceptions.

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Air New Zealand tops again

Courtesy Air New Zealand

AirlineRatings.com has named Air New Zealand as the world’s best airline for 2018. Other airlines that make the top ten in descending order are Qantas, Singapore Airlines (SIA), Virgin Australia, Virgin Atlantic, Etihad Airways, All Nippon Airways (ANA), Korean Air, Cathay Pacific and Japan Airlines.

According to the editorial team, airlines must achieve a seven-star safety rating (developed in consultation with the International Civil Aviation Organization) and demonstrate leadership in innovation for passenger comfort to be named in the top ten.

The evaluation team also looks at customer feedback on sites that include CN Traveller.com which perhaps explain little surprise in both AirlineRatings and Conde Nast Travel naming Air New Zealand as their favourite. (See What defines a best airline? Oct 19, 2017) Four airlines, namely SIA, Virgin Australia, Virgin Atlantic and Cathay Pacific are ranked in the top ten of both lists. These look like consistently global favourites.

Notable absences from the AirlineRatings list are Middle east carriers Qatar Airways and Emirates Airlines. While these airlines scored for service in other surveys, they may have lost the lead in product innovation for which most of the airlines ranked by AirlineRatings are commended. Virgin Australia’s new business class is said to be “turning heads” and Etihad is said to provide a “magnificent product throughout the cabins.” Looking ahead, Air New Zealand will feel the pressure from Qantas and SIA for the top spot. (See Singapore Airlines steps up to reclaim past glory, Nov 3, 2017) In the same survey, Qantas is selected for best lounges and best catering services, and SIA for best first class and best cabin crew.

For those who think best airline surveys are often skewed by the halo effect of service provided in the upper classes, AirlineRatings has named Korean Air as best economy airline.

What defines a best airline?

What defines a best airline, considering the different surveys that rank them? Conde Nast Travel has just released its readers’ choice of the best in 2017, and it is no surprise the list is made up of Asian, Middle East, European and SW Pacific carriers.

Courtesy Air New Zealand

Of course, it depends on the readership, but recognizing that, it also points to what really makes these airlines stand out. It is clear that the premium class service weighs heavily – the seat comfort and the fine food.

Etihad Airways (ranked #16) offers “the future of first-class comfort: a three-room “residence” with a bedroom, private bath with shower, and lounge.” Emirates (#4) offers “posh perks for premium fliers – cocktail lounges, in-flight showers… part of the reason it scores so high among travellers.” And the suites on Singapore Airlines (#3) offer “a pair of fully flat recliners that can be combined into a double bed.”

Mention is made of the premium economy class in almost all the ranked airlines” KLM (#20), Lufthansa (#19), Japan Airlines (#17), All Nippon Airways (#13), Qantas (#12), Cathay Pacific (#10), Virgin Atlantic (#7), Virgin Australia (#6), Singapore Airlines (#3) and Air New Zealand (#1).

So it may appear to be the voice of the premium travellers that is being heard. Maybe coach travellers aren’t too concerned about the ranking, more driven by price and less frilly factors, although to be fair, the Conde Nast report did mention of at least one airline, i.e. Etihad Airways (#16), not ignoring “those sitting in the back.” While many travellers may resign to the belief that the economy class is about the same across the industry, it is reasonable to assume that an airline that strives to please its customers in the front cabins will most probably carry that culture or at least part of it to the rear.

Although you may draw consensus across many of the surveys, it is best best to treat each one of them in isolation. It is more meaningful to try and draw intra conclusions within the findings of the particular survey.

You will note in the Conde Nast findings, there is an absence of American (including Canadian) carriers, never mind that of African and South American carriers.

Asiana Airlines (#8) is ranked ahead of Korean Air (#11).

All Nippon Airways (#13) is ranked ahead of Japan Airlines (#17). V

Virgin Australia (#6) is ranked ahead of Qantas (#12).

The order of the “Big 3” Gulf carriers is as follows: Qatar Airways (#2), Emirates (#4) and Etihad Airways (#16).

Of European carriers, there is the conspicuous absence of the big names of British Airways (compare Virgin Atlantic #7) and Air France, and the pleasant surprise of Aegean Airlines (#9) while SWISS seems to be regaining its erstwhile status years ago as being the industry standard.

The best belongs to Air New Zealand as the quiet achiever.

Ultimately, the results also depend on the group of respondents whose experiences may be limited to certain airlines.

Other airlines ranked in the top 20 of the Conde Nast survey: Finnair (#14), Turkish Airlines (#15), EVA Air (#18).

Does Air Berlin’s demise signal end of the road for budget carriers?

Courtesy Reuters

Air Berlin is folding up its wings, caused by falling pasxsenger numbers. Last month alone saw a dip of 25 per cent compared to July last year. Its biggest shareholder, Gulf carrier Etihad Airways which owns a 29.2 per cent stake, is not forthcoming with the needed financial support.

Does Air Berlin’s demise signal the end of the road for unaffiliated budget carriers, many of whom are benefitting from the currtent low price of jet fuel? Or that it is at least a forewarning of a more difficult time ahead for them in the continuing battle between them and legacy airlines which are at the same time supported by their own budget offhsoots?

That’s what Ryanair fears, accusing the German government and national carrier Lufthansa of conspiring to carve up Air Berlin. Ryanair said: “This manufactured insolvency is clearly beign set up to allow Lufthansa to take over a debt-free Air Berlin which will be in breach of all known German and EU competition rules.” A Lufthansa-led monopoly, it said, would drive up domestic fares.

How then will the game play out after Air Berlin?

Ryanair’s apprehension as a competitor is real. Air Berlin’s exit will mean a stronger Lufthansa and its budget offshoot Eurowings. Yet already Lufthansa is a dominant player with 76 per cent of its capacity focused on the German market. The Lufthansa Group posted record earnings for the first six months of 2017, increasing revenue by 12.7 per cent to €17 billion and net profit by 56.6 per cent to €672 million. Eurowings and other airlines in the Group including Austrian Airlines, Brussels Airlines and Swiss Interantional Airlines, also posted positive results. So as a group, Lufthansa has quite some msucle to flex in Europe, and the vacuum left by Air Berlin is likely to be filled by Eurowings.

On the other hand, it may be countered that competition is all but dead since airlines such as Ryanair and EasyJet also have access to the German market. However, comparatively, their market share is small; Germany represents only 7 per cent of Ryanair’s capacity and 9 per cent of EasyJet’s. There is possibility that Air berlin’s demise may mean more demand for seats on these carriers, if not opening up the market for more competition. Hence the German government has denied Ryanair’s accusation that it had breached anti-trust rules.

Clearly the competition will intensify, whether it is a battle between legacy airlines and unaffiliated low-cost carriers or one between budget airlines themselves is not any more a matter of note. The competition has levelled, with budget carriers attempting to do more and legacy airlines even adjusting down to match. Legacy airlines including Lufthansa, British Airways and Air France are fighting back, and the old strategy of doing it through a subsidiary equivalent is receivign a revival. Besides Lufthansa, British Airways (as part of the International Airlines Group which is already supported by Spanish low-cost carrier Vueling) has introduced Level, and Air France annoucned plans to launch Joon which, however, it says, is not a low-cost carrier.

The competition does not stay the same for long in the aviation business. Little surprise that Etihad has decided to step back from its acquisition spree.

Etihad flies into the red

Courtesy Etihad Airways

Are you surprised that one of the big three Gulf carriers has flown into the red? For the first time since 2011, Etihad Airways reported a hefty loss of US$1.87 billion in 2016 compared with a profit of US$103 million a year ago.

Chairman of the Etihad Aviation Group Mohamed Mubarak Fadhel al-Mazrouei said “a culmination of factors contributed tot he disappointing results.”

The United Arab Emirates airline blamed it on “one-off impairment charges and fuel hedging losses”.

It is a wonder how airlines would always blame poor hedging decisions for losses as if they were not responsible for their failure to correctly read the market. Etihad’s woes include billion dollar charges on aircraft and certain assets, as well as financial exposures to beleaguered equity partners including Alitalia and Air Berlin. Etihad owns 49% of Alitalia and 29.21% of Air Berlin. This has called for some reflection on the airline’s acquisition program.

But Etihad said the core airline business remained solid and strong. Although load factor declined slightly from 79.4% to 78.6%, passenger numbers increased from 17.6 million to 18.5 million.

Etihad’s new CEO Peter Baumgartner however was cautious about the future. He said: “We are in an industry characterized by overcapacity, declining market sizes on key routes and changing customer behaviour as a weak global economy affects spending appetite.”

Understandably, this comes at a time when the United States are imposing restrictions on travel from the Middle East and the airline too is caught in the diplomatic Qatar crisis that has affected regional routes.

More Middle East airlines allow laptops in cabin

Good news for Middle East carriers as the United States gradually exempts them from the ban imposed on the carriage of laptops and other electronic gadgets in the cabin.

Etihad Airlines was the first to announce the lift of the ban, followed by Emirates Airlines and Turkish Airlines. Now Qatar Airways becomes the fourth airline to join the list this week. Saudia, the flagship carrier for Saudi Arabia, said its passengers would be able to carry the electronics on board US-bound flights from 19 July.

This follows strengthened security to meet US standards, which include measures such as enhanced screening, more thorough vetting of passengers and the wider use of bomb-sniffer dogs.

Morocco, Jordan, Egypt and Kuwait have yet to announce similar exemption. The UK government which followed the US in imposing similar restrictions on flights originating from Turkey, Lebanon, Jordan, Egypt, Tunisia and Saudi Arabia have not indicated its readiness to also lift the ban.

For all the initial outcry against the ban and questions about its wisdom, one might concede that the good that came out of it was the greater awareness of in-flight security. But for the airlines compliance means holding up the bottom line. Emirates for one had reported a drop in business because of the ban.

Is Singapore Airlines liable for misconnections?

sia-logoamericanemirates-logoetihad-logoturkish-airliens-logoSingapore Airlines (SIA) is among five major carriers taken to task by the British Civil Aviation Authority (BCAA) for not compensating their customers for flight delays that resulted in missed connections. Emirates Airlines is said to be the worst offender. The other three carriers are American Airlines, Etihad Airways and Turkish Airlines.

According to BCAA Director of Consumers and Markets, Richard Moriarty, the five carriers have “systematically” denied the passengers their rights. He said: “Airlines’ first responsibility should be looking after their passengers, not finding ways in which they can prevent passengers upholding their rights. So it’s disappointing to see a small number of airlines continuing to let a number of their passengers down by refusing to pay them the compensation they are entitled to.”

Under EU regulations, which apply to airlines even if they are not based in the EU, a delay of more than three hours becomes compensable, unless caused by “extraordinary circumstances”. An airline is off the hook if the delay is caused by factors outside their control, such as inclement weather, but not if it is due to poor performance resulting from, say, the lack of maintenance, procedural hiccups or staff negligence.

This is not the first time an airline has been charged with not giving their customers their dues. Protecting air passengers’ rights has been a long running battle between regulators and the airlines, and the matter is far from being satisfactorily concluded. Nor is it as widely pursued as in the EU, United States and Canada. Even then, monitoring is not an easy task, and as arduous is the arbitration to decide if an airline should be held accountable. Ever since the EU ruling came into force, many airlines have been fighting the cases in court, and this can mean unduly long delays of compensatory payments if ever they are ruled in favour of the passengers.

Singapore airlines is putting compensation claims “on hold” if they involve connecting flights. This is a contentious issue as the delivering carrier has no control over a passenger’s choice of onward journey if he or she makes separate bookings. The question hinges on what is considered a reasonable connecting time. If an airline arranges the entire journey including the connection, it is usually obliged to look after the passenger who misses the connection as a result of a flight delay. This may cover a stopover stay at a hotel, meals, rebooking on the next flight or an alternative flight, and other related expenses. Some airlines have leveraged on short-connecting times as a marketing strength.

Following the US Department of Transportation final ruling on protecting passengers’ rights, SIA published a customer service plan for tickets purchased in the US for flights to and from that country. The plan stipulates: “In the event that Singapore Airlines cancels, diverts or delays a flight, Singapore Airlines will, to the best of our ability, provide meals, accommodation, assistance in rebooking and transportation to the accommodation to mitigate inconveniences experienced by passengers resulting from such flight cancellations, delays and misconnections. Singapore Airlines will not be liable to carry out these mitigating efforts in cases where the flight cancellations, delays and misconnections arise due to factors beyond the airline’s control, for example, acts of God, acts of war, terrorism etc., but will do so on a best effort basis.”

While an airline like SIA is unlikely to put its reputation on the line (the airline has often been commended by its customers for going the extra mile), there is always the caveat that it can only do so much to the best of its ability and on a best effort basis. In response to BCAA, SIA pointed out “a lack of clarity in the law” which it hoped would be resolved in the ongoing discussion with the British authority.