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.

The isolation of Qatar Airways

Courtesy Alamy

AT a time when its neighbours – Saudi Arabia, Egypt, Bahrain, the United Arab Emirates, Libya and Yemen – cut diplomatic ties with Qatar, winning the Skytrax world’s best airline award could not have tasted sweeter to the Qatari flag carrier. It displaced last year’s winner, Emirates Airlines, which fell to 4th ranking.(See Consistency defines Skytrax best airlines, Jun 21, 2017)

The Gulf countries are stopping flights between them and Qatar, and closing their airspace to Qatar Airways. According to Qatar’s chief executive Akbar Al Baker, this has resulted in the cancellation of 52 routes and adding flying routes to others. He was quoted as saying at the Paris Air Show where the award was announced: “At these difficult times of illegal bans on flights out of my country by big bullies, this is an award not to me, not to my airline, but to my country.”

Now Qatar Airways is setting eyes on getting a slice of OneWorld partner American Airlines. It is hoping to buy up to 10 per cent of the US carrier. Investing in foreign carriers is not something entirely new to Qatar Airways. In 2015, the Gulf carrier acquired 10 ten per cent of the International Airlines Group (IAG) which owns British Airways, Iberia, Vueling and Aer Lingus. This was subsequently increased to 20 per cent.

Qatar Airways also owns 10 per cent of South American carrier LATAM and is finalizing a deal to acquire 49 per cent stake of Italy’s Meridiana Fly. It has also expressed interest in Royal Air Maroc and setting up a joint venture in India.
Mr Al Baker has hinted at more acquisitions in the pipeline, but said the airline“is not going to collect crap.”

The timing of Qatar Airways’ interest in American Airlines smacks of more than just part of an expanding acquisition program although it is just as obvious being so. While other Gulf carriers may see the Trump’s restrictions on travel from the region and ban on in-flight carriage of electronic gadgets as a setback, Qatar Airways is keen to expand further into the United States. The isolation by the Gulf neighbours has made it all the more imperative for it to seek stronger relations elsewhere across the globe.

Ultra-long flights: The competition heats up

Courtesy Qatar Airways

Courtesy Qatar Airways

Qatar Airways has clinched the honour of operating the longest non-stop commercial flight when it commenced operations from Doha to Auckland on February 6. The inaugural flight, using a Boeing 777-200LR aircraft, clocked 16 hours and 23 minutes for a distance of 14,535 km.

Qatar edged out rival Emirates Airlines which also operates to Auckland but from Dubai, and Air India which interestingly flew over a longer distance of 15,127 km from New Delhi to San Francisco across the Pacific (rather than the Atlantic) but advantaged by tailwinds clocked a shorter flying time.

Ultra-long flights are a boon to travellers, particularly corporate executives, who want to skip long transit stopovers or the hassle of connections. But there are others who prefer an intermediate stop to stretch their legs. They work excellently for end-to-end traffic where there is demand between these destinations. But airlines will find it does not make economic sense to connect two points for the sake of flying the distance. One may ask, in the case of Qatar’s new launch, is there adequate traffic between Doha and Auckland – the same question that would have been posed to Emirates?

Clearly Qatar is thinking network connections – not catering to just traffic from Auckland but to encourage travel beyond Doha to Africa, Europe and the Americas, in much the same way that Emirates has built a viable Dubai hub for connecting traffic challenging long-standing hubs such as Singapore Changi. Qantas, which has traditionally used Changi as the hop from Australia to Europe vv has contributed to the growth of Dubai to which it has shifted its hub operations. Now Qantas is rethinking its strategy to make Perth the hub when new technology enables the flying kangaroo to one-hop from London to Perth vv.

The competition has heated up in recent years with more airlines mounting such ultra-long flights. The strategy goes beyond tapping end-point, particularly home, markets, pointing to the importance of developing strong home and secondary hubs, and onward network connections. The squeeze on the competition may ironically persuade more airlines to intercross their networks to make ends meet.

Air New Zealand leads the pack

Courtesy Air New Zealand

Courtesy Air New Zealand

Air New Zealand is the world’s best airline according to AirlineRatings.com based on criteria that include fleet age, safety, profitability and leadership in innovation for passenger comfort. The agency’s Airline Excellence Awards program which lists the winning airlines is endorsed by the International Civil Aviation Organization.

Many travellers would recognize ANZ for its attention-grabbing in-flight safety video that takes them into Middle Earth, the kind of out-of-the-aircraft features that a few other airlines have tried to imitate but fared only poorly. AirlineRatings.com Editor-in-Chief Geoffrey Thomas said: “Air New Zealand came out number one in virtually all of our audit criteria, which is an exceptional performance.” The airline was favoured for its record-breaking financial performance, award-winning in-flight innovations, operational safety, environmental leadership and motivation of its staff.

Skycouch: Picture courtesy Air New Zealand

Skycouch: Picture courtesy Air New Zealand

But, of course, there are surveys and there are surveys that publish their own lists of favourites. Some airlines such as Singapore Airlines (SIA) and Cathay Pacific have a ubiquitous presence, and there also notable absences. This is where it is most telling, bearing in mind that the ranking is dependent on several factors such as the excellence-defining criteria and the population surveyed.

The other nine airlines ranked behind ANZ in the top ten list by AirlineRatings.com are in descending order: Qantas, SIA, Cathay, Virgin Atlantic, British Airways (BA), Etihad, All Nippon Airways, EVA Air and Lufthansa.

It is interesting to note that the top two airlines come from the remote Southwest Pacific. Qantas has in recent years been working on upgrading its product offerings, winning accolades for catering and airport lounges. Not surprisingly, innovation along with good service seem to be the driving winning streak going down the list – SIA and Cathay for their premium economy and revamped business classes, Virgin for its cabin ambience and friendly crew, BA for its leadership in in-flight entertainment, and Etihad for its equally impressive service in front and at the back of the aircraft.

Notable absences in the list are US carriers (no surprise there) and two of the big three Middle-East carriers (Emirates and Qatar).

Many survey rankings are skewed by the weight they place on service in the premium classes. However, Mr Thomas of AirlineRatings.com said: “We are looking for leadership and airlines that innovate to make a real difference to the passenger experience particularly in economy class.” Considering that the majority of travellers are seated in coach, it is time that airlines crowned with the halo of excellence pay more attention at the back of the aircraft, for this may well make the difference as the competition intensifies. And, it is where the differentiation becomes even more challenging. Perhaps too, this could be the reason why Emirates and Qatar, known for their lavish premium service, did not make it to the top ten of the list.

The race to operate the world’s longest non-stop flight

Courtesy Emirates Airlines

Courtesy Emirates Airlines


THE race is on to operate the world’s longest non-stop flight. Ever since Singapore Airlines (SIA) suspended its flight from Singapore to New York in 2013, nine years after it was launched, the honour has fallen to various airlines. Qantas was the last to hold the record for distance flown, operating between Sydney and Dallas Fort Worth, until Mar 2 when Emirates Airlines commenced scheduled flights from Dubai to Auckland.

The inaugural Emirates flight using an Airbus A380 aircraft (subsequent services will use the Boeing B777 aircraft) flew a distance of 14,200 km (8,824 miles), compared to 13,800 km covered by the Qantas flight. The scheduled flight time is 17 hours and 15 minutes, about half an hour longer than the Qantas flight of 16 hours and 55 minutes. However, the inaugural flight landed earlier than scheduled, clocking only 16 hours and 24 minutes.

Some of the other notable ultra long haul flights clocking more 16 hours and more are operated by Delta Air Lines (Atlanta/Johannesburg), Etihad Airways (Abu Dhabi/Los Angeles), Emirates (Dubai/Los Angeles), Saudi Arabian Airways (Jeddah/Los Angeles), Qatar Airways (Doha/Los Angeles), Emirates (Dubai/Houston), Etihad (Abu Dhabi/San Francisco), American Airlines (Dallas Fort Worth/Hong Kong), Emirates (Dubai/San Francisco), and Cathay Pacific (Hong Kong/New York).

While SIA had announced its intention to reintroduce its non-stop flight from Singapore to New York in 2017, Emirates looks determined to maintain the record for now. The Middle East carrier will be launching a non-stop service from Dubai to Panama City by the end of the month. The scheduled flight time is 17 hours and 35 minutes, shorter than the 19 hours of the erstwhile SIA flight.

As the industry heralds a return to the good times with the price of fuel at record low levels, airlines can afford a grab for prestigious attention. But surely, more than the prestige, the decision has to also make commercial sense.

Many of the ultra-long flights are operated by the big three of the Gulf region, namely Emirates, Etihad and Qatar. There is intense competition among these neighbouring carriers targeting the US markets, filling a gap left by the American carriers which are beginning to feel the pinch, leading to allegations by some of them of unfair competition. While the concentration may be a matter of the world geography as it is, it nevertheless shows how the Gulf carriers, taking advantage of improved technology that has continuously made flying a longer distance possible, are intent on driving a trend to reach the far corners of the world in a single hop.

International Airlines Group partnership works

Courtesy British Airways

Courtesy British Airways

The success of International Airlines Group (IAG) in the last two to three years is proof that its strategic partnership works. The group, made up originally of British Airways (BA) and Spanish carrier Iberia and subsequently Vueling which is a budget operator, was joined by Aer Lingus in August this year.

Excluding Aer Lingus, IAG posted a pre-tax profit for Q3 (Jul to Sep) of €1.1bn (US$1.2bn), an increase of 48% from last year. Chief executive Willie Walsh said: “We’re reporting strong quarter results with a positive contribution from all of our airlines.” Encouraged by a better Q3 than Q2, the group is confident that its operating profits for the full year could be as high as €2.3bn, reaffirming its previous forecast of over €2.2bn but looking more optimistically at a higher number. Operating profits for the first nine months were €1.8bn.

Compared to Europe’s largest partnership airline Air France-KLM which continued to report deepening losses (its Q2 loss of €79m was larger than that of €11m a year ago) even as fuel costs held steady in the lower range, IAG on the other hand is gaining new strengths. If the weakening euro has affected Air France-KLM adversely, so has it affected IAG, particularly for BA as the major partner of IAG. But the state of the currency can work both ways, whether positively or negatively, depending on the specific market. In fact Air France-KLM, as does IAG, stands to gain from operations outside continental EU, particularly the United States.

It would be pretentious to suggest that there is a formulaic – even more pretentious of an inherent – magic in the IAG partnership that contributes to its success. Partnerships are forged for several reasons, and not few of them were motivated by political, even personal, reasons. Invariably the investment is almost always about synergy, or premised upon the potential for synergy. The IAG proposal was not without reservations and scepticism among analysts. The merger was completed in January 2011. In its second year, IAG plunged from a profit of €527m to a loss of €997m, prompting chief executive Willie Walsh to admit that it might have been better to delay but not scuttle the marriage as he remained convinced of its benefits.

Walsh said: “This is an important step in the process towards creating one of the world’s global airlines that will be better equipped to compete with other major airlines and participate in future industry consolidation.”

Give credit to Walsh for his vision and leadership. As the industry moved into mega alliances, BA too needed to expand and extend beyond its traditional borders, and when the industry not long after was dragged down by a global economic meltdown, the increased pressure of competition in a reduced market demanded an urgent shift to focus on cost efficiency to try and retain market share. Anti-merger Iberia supporters expressed concern that the Spanish carrier would be swallowed up by the larger British carrier. While Walsh reiterated that Ibe5ria would retain its identity, he did not mince his words when he mentioned how Iberia was lagging behind BA and was in a “fight for survival”.

In fact, the circumstances turned out to be a blessing in disguise for Iberia, which was buffered by BA for the stringent cost-cutting measures that followed and whose action was legitimized by the dire straits it found itself rather than risk going bust altogether. It was a good match, both airlines operating few overlapping routes. And as Walsh noted, “It combines BA’s strength position on the mature North Atlantic market with Iberia’s strong position in the fast growing South Atlantic market.” It was a Walsh tour de force, the kind of business intrepidity that Air France-KLM was not prepared to flaunt, perhaps wisely, when faced with the prospect of increasing its stake in the beleaguered Italian carrier Alitalia. The mega frenzy can lead to costly makeovers and adjustments, draining resources of the parent. Clearly IAG was not a passive investment for BA, unlike the lacklustre partnership between Singapore Airline (SIA) and Virgin Atlantic while it lasted before SIA sold it to Delta Air Lines at a loss.

IAG bounced back into profitability in 2013, posting a profit of €227m, which more than tripled a year later to €828m. The question now is how much stronger can IAG get with Aer Lingus coming on board. The Irish flag carrier made an operating profit of €45m from the day it joined IAG.

Courtesy PA

Courtesy PA

It was not surprising that Aer Lingus felt the same initial reservation as Iberia when approached by IAG, but the successful integration of the Spanish carrier did much to allay the concern. Aer Lingus would too retain its independent identity. The good news for IAG was that Aer Lingus was joining as a profitable partner with expanded operations across the Atlantic. Wrenching the Irish carrier from Ryanair in a possible takeover by the budget carrier was a feat for BA through IAG, literally putting a lid on the competition as low-cost carriers across Europe continue to challenge the legacy market. Air France-KLM for one is feeling the pinch.

Adding Aer Lingus to IAG provides numerous opportunities for synergy and extensive connectivity to Ireland (as far as BA is concerned), particularly as landing slots for expansion at London Heathrow become a scarcity. Walsh, a former chief of Aer Lingus, said connecting Heathrow and Dublin would be a priority and assured the continuation of Aer Lingus’ profitable regional routes. The Irish government is cherishing the hope that Dublin would assume new importance as a hub for trans-Atlantic operations.

For Aer Lingus, tapping into the bigger IAG network would help fuel its growth. Internationally, IAG partners would be better positioned to meet the competition from other airlines, particularly Middle East carriers such as Emirates and Etihad Airways. European carriers such as Air France-KLM and Lufthansa are struggling to stave off competition by Gulf carriers, which recently were also criticized by US carriers United, American and Delta of unfair competition supported by state subsidies.

Interestingly, Qatar Airways already has a 10% stake in IAG. Qatar chief executive Akbar Al Baker saw it as “an excellent opportunity to further develop our westwards strategy,” linking the airline with two major European hubs and strong transatlantic networks. Qatar has a strong network eastwards, from the Middle East across India to Asia and Australia, and this largely complements the IAG network. The question now is how much more of IAG will Qatar eventually own as the group, additionally with a strong American Airlines alliance, looks poised to grow stronger.

This article was first published in Aspire Aviation.

What conclusions can you draw in an airlines survey?

SIA courtesy SIA

WE continue to be fascinated by rankings of the world`s best airlines, although the results of most surveys – take away some bias here and there – are quite predictable and almost similar across the board. The winners by and large boast excellent cabin service, great food, comprehensive in-flight entertainment and innumerable choices, more generous legroom than what their competitors offer, and frills such as complimentary champagne and brand name overnight kit. It is all about creature comforts. And the impressions are understandably almost always skewed by the luxuries of the upper classes.

Traveller magazine Conde Nast has just posted its list of the world’s best airlines, surveyed among some 128,000 readers. Of course this is not the definitive list of excellence to the detail, in the same way that no other list can be as definitive without considering factors such as the type of respondents involved, the scope of the survey and the criteria adopted, but there are nevertheless interesting conclusions to be drawn from them. So often it is more interesting to look at the omissions.

Long haul can impress or disappoint

Singapore Airlines (SIA) is a perennial favorite of Conde Nast readers, ranking top for 27 of 28 years. It is hardly surprising, which to be saying it seems even redundant. The airline has long earned the reputation as one of the world’s best airlines, and is frequently celebrated in other surveys as well. It was ranked second after Qatar Airways in the last Skytrax survey. It is hard to find a match that depicts consistency in excellence. The real clincher seems to be in its long haul operations – such flights that are likely to elicit the flaks when passengers are apt to become more stressed and demanding. Here is where SIA is able to make the difference by a well-trained crew that anticipates a passenger’s needs, always mindful the passenger’s comfort first and foremost in the service.

All the airlines in Conde Nast’s top ten are long haul operators, with the exception of Porter Airlines which is more a city shuttle that flies between Toronto in Canada and US destinations such as Boston, Charleston and Myrtle Beach.

While the long haul impresses, it can also take apart an airline’s reputation, which explains why some airlines are inundated with complaints about being handled like a can of sardines. Interestingly, the Conde Nast list of best American carriers is made up of short-haul operators to the exclusion of the big three of United Airlines, American Airlines and Delta Air Lines. Virgin America is ranked first followed by JetBlue, Hawaiian Airlines, Southwest Airlines and Alaska Airlines.

Dominance by Asian and Gulf Carriers

Again, it is not surprising that Conde Nast’s top ten ranks are dominated by Asian and Gulf carriers, which together were placed in not only in the top three ranks but also seven of the top ten positions. The Gulf big three of Emirates Airlines, Qatar Airways and Etihad Airways were second, third and fifth respectively. Qatar was tops in the earlier Skytrax survey, ahead of Emirates (5th) and Etihad (6th). Other Asian airlines in the Conde Nast list are Japan Airlines (6th), Korean Air (7th) and Cathay Pacific (10th). Both SIA and Cathay were also ranked among Skytrax’s top ten airlines.

Dominance by Asian and Gulf carriers means the stark exclusion of airlines of other regions. Only one European airline – Virgin Atlantic – was listed, and in fourth placing. One asks: Where are British Airways, Air France and Lufthansa although going further down the list you will find Swiss International Air Lines (17th) and Finnair (20th)?

That and the marked absence of US carriers demonstrate the superior service culture of Asian and Gulf carriers and their growing popularity that continue to put pressure on their rivals in the competition. The US big recently accused the Gulf big three of unfair competition supported by state subsidies. In truth, North American airlines are not inefficient, but they lack the soft pampering touches of their competitors. There is a host of pertinent questions. Can US carriers be as friendly or, to go one further, do better? And, ultimately, do they even see the need?

Luxury improves image

Etihad boasts the “residence” suite that comes with a bedroom, private bath with shower and lounge. That is for now the forerunner in the race for the ultimate luxury in the air, leaps ahead of SIA’s first class suites and all the other airlines’ flat bed allures. There are also the extras: Etihad provides a concierge service that will make a dinner reservation for you when you land, and some airlines offer door-to-airport limousine services. The slant towards premium classes is to be expected, for that is what makes news even as the perks are limited to a smaller but more lucrative market of the travelling population. If there is one airline that seems to be doing much more for coach than many others, it is Air New Zealand, which offers “Skycouch” in economy – seats that can be converted into a lie-flat double bed – but then again, this is limited to only three seats in the cabin, reminiscent of the days when EVA designates a small number of seats as the ill-defined premium economy before the subclass takes on an identity of its own today.

Comparison is the crux

In any survey, the crux is the comparison, particularly when they are all said to be providing good cabin service and excellent food amongst the creature comforts. The Conde Nast survey again surfaces the rivalry between SIA and Cathay Pacific in the top ten, favoring the former. Interestingly, Japan Airlines (6th) is ranked ahead of All Nippon Airways (11th), and Korean Air (7th) ahead of Asiana Airlines. That indicates a reversal of order that has been the reading of many past surveys, and may well portend how the competition may be trending.

In the case of Gulf carriers, the ranking rivalry among Emirates, Qatar and Etihad is very much a close call going by several international surveys. At the same time, we cannot ignore the inclusion of Turkish Airlines in Conde Nast’s top 20. Turkish was fourth in the Skytrax survey.

In the close rivalry between Qantas (15th) and Virgin Australia (19th), the former continues to enjoy an advantage over the latter.

What else matters? All the hype about going green as the world becomes increasingly conscious of the impact of climate change? That Korean Air prepares its food from humanely raised and organically grown produce. That El Al offers an iPad rental program. That Virgin Atlantic has a stand-up bar. That Qantas offers Select on Q-Eat that allows you to pre-order your meal. That Air New Zealand makes its safety presentation more entertaining than others. That British Airways allows you to log on to a movie as soon as you board and stay with it until the aircraft is docked at the gate on arrival. The list goes on. And one wonders.

This article was first published in Aspire Aviation.