How Covid-19 is changing the way we fly

https://www.todayonline.com/commentary/how-covid-19-way-we-fly-airline-SIA-Scoot-airport-travel

Boeing faces up to reality

The status has changed from one of a creeping delay of shifting the dates month to month, to one with a little more certainty – the certainty that the B737 Max jet is not returning to service before the northern summer, way much longer than expected.

Courtesy Getty Images

It is a reality check by Boeing under new CEO David Calhoun,allowing a wider berth for current or possible new works to be carried out leading to certification. Carriers such as American Airlines, Southwest Airlines and United Airlines have moved the jet’s scheduled reintroduction to June or July.

Boeing must recognize that the company is no longer in control of the process outside fixing the technology. Once censured for lax oversight and plagued by a string of misinformation, the Federal Aviation Administration promises to be thorough and is not going to be hurried in the process. Internationally, several aviation authorities such as the European Union want to have the final say in allowing the plane back in their skies.

The wider berth may be a blessing in disguise, to allow confidence to build up barring any new technical problems or more dirty linen of the Boeing corporate culture being aired. Mr Calhoun is cleaning out the closet.

The best way to deal with hidden demons is to expose them as he has done with releasing a batch of damaging internal staff communications. He said he wanted to “get rid of the culture of arrogance” and “foster an inclusive environment that embraces oversight and accountability and puts safety, quality and integrity above all else.”

Encouraging words to begin with, but the crisis is far from being over. Henceforth if Mr Calhoun gets his cards right, there should be less negative but more positive PR, and transparency working with all stakeholders/ His number one priority is getting the Max jet off the ground, but not until he has ensured that regulators are “satisfied completely with the airplane and our work”.

The Max jet which has been grounded since March last year following two fatal air crashes is costing Boeing more than US$9 billion to date. Production of the pkane has officially been suspended. As of last year, the conpany’s deliveries of planes slumped to a record 11-year low.

A New Beginning for Boeing?

It has certainly been a bad year for Boeing, following the grounding of the B737 MAX jet in March after two fatal crashes that killed 346 people.

Boeing had hoped that the jet would be put back into service before the end of the year, but of course is out of the question now. While some remain hopeful of a late January or February date, many airlines are now resigned to it being longer. American Airlines, for one, has moved schedules for its likely operations to April, to avoid disruptions.

One thing clear is that the Federal Aviation Administration (FAA) is asserting (or resuming) control of the situation after the bad press of lax oversight. FAA has said it will take all the time that it needs to ensure that the the MAX is safe. It said in a statement that “the agency will not approve the aircraft for return to service until it has completed numerous rounds of rigorous testing.”

FAA Administrator Steve Dickson has made it clear that “the FAA fully controls the approval process” and will not rush the certification at the request of Boeing.

News reports about the shoddy work at the Boeing plants continue to damage the manufacturer’s credibility. In October, one of the company’s employees was said to have misled the FAA about the Max’s MCAS anti-stall technology, that he had “basically lied” to the regulator. That raised more alarm bells.

Courtesy CNBC

There has been a lot of pressure on Boeing CEO Dennis Mullenberg to resign his post, not least from the US Congress. But Mullenberg held on with the support of the Board of Directors, which conceded a little by stripping him of his Chairman title but continued to express confidence in his leadership. They were to finally fully concede as Congress questioned among other things why Mullenberg hasn’t given up his pay (US$23 million in 2018) and suggested that the buck should stop with him in “a culture of negligence, incompetence and corruption”.

Mullenberg is stepping down with immediate effect, to be succeeded by the current chairman David Calhoun who will on January 13 assume the CEO post as well. In the interim, CFO Greg Smith will be at the helm.

In a statement issued by Boeing, “the Board of Directors decided that a change in leadership was necessary to restore confidence in the Company moving forward as it works to repair relationships with regulators, customers, and all other stakeholders.”

Could this have come earlier? No use looking back, but if it was a clean break that Boeing was looking to make, it had dragged its feet. For too long, the saga continued to hang over its shoulder like the albatross of Coleridge’s ancient mariner.

The uncertainty of the delay in putting the MAX back into service has forced the company to suspend production of the aircraft. Confidence in the company is slipping, and whether Qantas’ decision to pick pick Airbus over Boeing to fly the world’s longest route from Sydney to London is an indication of this or not, the timing doesn’t help. Worse, the problems of the MAX have coloured the traveller’s perception of the other jets in the same family. Boeing knows only too well that satisfying the regulator and customer airlines of the MAX’s safety is one thing, but regaining the confidence of travellers is another, which may turn out to be a greater hurdle.

Now with Mullenberg’s resignation, will the new year mark a clean break for Boeing? Seems aptly so if it could clean out whatever else is left of the skeletons in its cupboard.

Are airlines treating passengers of disrupted flights fairly?

Courtesy Reuters

IF you were travelling on Singapore Airlines (SIA) out of London and your flight is delayed or cancelled, you may be compensated up to €600 according to European Union (EU) regulations. However, if it is an outbound flight from Singapore, what compensation a passenger may receive, if any, will depend on the policy of the airline.

This is because EU regulations do not apply to non-EU carriers arriving at an airport in member countries although it covers all departing flights of both EU and non-EU carriers.

The regulations have recently been extended to include connections even if these are operated outside the EU by non-EU airlines. The ruling states that “an operating air carrier that has performed the first flight cannot take refuge behind a claim that the performance of a subsequent flight operated by another air carrier was imperfect.” It is therefore obliged to offer passengers alternative transport for the disrupted flight, in addition to monetary compensation.

Over in Canada, the Air Passenger Protection Regulations introduced by the Canada Transportation Agency require airlines affected by flight disruptions to meet certain obligations which will apply to all flights to, from and within Canada, including connecting flights. Passengers whose flights are delayed or cancelled will be compensated up to C$1,000 depending on the size of the airline and length of the disruption. Non-compliance carries a fine of up to C$25,000.

Countries elsewhere do not generally legislate on mandatory fiduciary compensation of a stipulated amount for flight disruptions. In the United States, airlines are obliged to compensate passengers who are bumped off a flight due to an overbooking situation (as in the EU and Canada), but there are no federal regulations requiring them to do the same thing for passengers whose flights are delayed or cancelled.

Consumer rights groups have long been pushing for fairer treatment of travellers under these circumstances. Besides arranging meals and hotel accommodation in the event of a long delay, some airlines hand out in-flight gift vouchers, but most do not make any form of financial payment. In many cases the affected passengers get not much more than an apology while they wait to be put on the next available flight.

The International Civil Aviation Organization (ICAO) recognises the vulnerability of passengers and supports “due attention… (which) could include rerouting, refund, care and/or compensation”, but it stops short of spelling out specifics and making them industry standards. The International Air Transport Association is however concerned that airlines may be adversely affected, advocating “an appropriate balance between protection of consumers and industry competitiveness.”

Affected passengers therefore by and large can only rely on the goodwill of the airlines, whose policies differ across the industry. Many of them have come to realise that to take the matter further on their own – including bringing an airline to court – can be tedious, frustrating and, more often than not, futile. What they need is the support of an authority who can enforce compliance within a legal framework.

Yes, even with mandatory compensation in place in the EU and Canada, there have been complaints that the airlines are not forthcoming in meeting their obligations, citing extraordinary circumstances that do not render them liable or delaying payment indefinitely. Still, in the context of good governance, what the EU and Canada have introduced is a significant step forward in recognition of the uphill challenge passengers face in their battle with the airlines for fair compensation.

Some airport authorities fine airlines for flight delays or operating off-schedule because it disrupts and causes less-than-optimal resource allocation that can be costly to the airport’s operations. By the same argument, passengers of disrupted flights deserve to be fairly compensated. The disruption can be costly in terms of making alternative arrangements, staying in some place longer than planned, and losing opportunities as in failing to make a business deadline. Above all, it causes anguish and distress.

The amounts recommended by the EU and Canada are miniscule compared to the fines of up to US$27,500 per passenger imposed by the US Transportation Department for planes left on the tarmac for more than three hours (or four hours for international flights) without taking off. American Airlines and Southwest Airlines share the honour of holding the record fine of US$1.6 million, the former in 2016 and the latter in 2015.

Non-US airlines that have been penalised by the US Department of Transportation (DOT) include Japan Airlines which was fined US$300,000 for two incidents in 2018 in which passengers were made to wait more than four hours on the tarmac before they could deplane.

All these measures serve the common goal of encouraging airlines to ensure their flights operate as scheduled and hopefully too that they become more conscientious about how they treat their customers. However, the fines imposed by DOT do not directly benefit the passengers who are the very reason why an airline is in business.

An example of how an airline may take the EU regulations seriously is when British Airways, faced with the threat of strike action by its pilots recently, informed its customers as early as two weeks of cancellations of some flights to avoid paying compensation.

However, do not expect similar regulations to be introduced any time soon in other parts of the world. For one thing, consumer rights groups do not appear to be as aggressive, and many countries especially Asia are less prone to industrial action. Besides major Asian carriers known for good customer service are more responsive to feedback and complaints and may already be offering some form of compensation even if they are not as generous.

But as the number rises, there is a greater need to ensure that affected passengers are fairly treated. The powers that be can ensure that. According to aviation data and analytics experts at Cirium, about 3.9 million flights or 10,700 a day were delayed by over 30 minutes or cancelled worldwide in 2018. Take a typical day on 5 August 2019.there were 22,386 delays and 1,107 cancellations globally, of which 29 per cent of the combined total occurred in the United States, 26 per cent in Europe, and 34 per cent in Asia Pacific.

Until then, here’s a poser for SIA and the likes: Will they accord the same level of comnpensation to all passengers even if they are not bound by regulations, for no better reason than simply one in the name of fairness?

Caution keeps B737 Max jet grounded

Courtesy Getty Images

Carriers which had been hopeful that the Boeing B737 Max jet would return to the skies as early as next month have deferred scheduled dates to operate the aircraft.

Earlier in August, Boeing CEO Dennis Mullenburg was hopeful that this would happen in the fourth quarter of the year and the airlines could look forward to capturing the peak holiday season traffic.

American Airlines which owns 24 of the Max jet is pushing the date to Dec 3. United Airlines with a fleet of 14 is moving it further down the road to Dec 19. It looks like both carriers are still hoping to cash in on what shall remain of the peak season including the Christmas holiday. But Southwest Airlines, the largest of the Max operators worldwide with 34 aircraft has moved the scheduled date to Jan 5 next year.

North of the border, Air Canada (which owns 24 Max jets) and Sunwing (with 4 aircraft) are not expecting the aircraft to be operational until next year. For Air Canada, it is Jan 8. And for Sunwing, even later in May. WestJet (with a fleet of 13 Max jets) too is not scheduling Max flights during the year-end holiday season, but said the company might consider an occasional flight to ease the demand should the ban be lifted then.

WestJet’s vice-president in charge of scheduling said: “It’s a little harder to unmix the cake at that point, but we would look at peak days, the Friday before Christmas (for example) where we can still sell seats and we’ll put the airplane back in.”

Elsewhere across the world, affected carriers remain non-committal on their plans. Other major operators until the jet was grounded include Norwegian Air Shuttle (18 aircraft), China Southern Airlines (16), TUI Group (15), China Eastern Airlines (14), Lion Air (14), FlyDubai (14), Turkish Airlines (12), and XiamenAir (10).

The B737 Max jet was grounded globally following two fatal incidents, one involving Indonesian carrier Lion Air in Oct last year and the other involving Ethiopian Airlines in Mar this year, both crashes claiming a total of 346 lives.

Quite naturally, carriers which own the Max jet are keen to see its early return to the skies. Many of them have cut back capacity to cope with the shortage of aircraft and are reporting losses as a consequence. United which took out 70 flights a day in its September schedule will see the number increased to 90 in December. Together, the three airlines – American, United and Southwest – have cancelled 30,000 flights. Delta Air Lines, however, stands to gain from these airlines’ disadvantage as it does not own any Max aircraft.

Budget carrier Norwegian Air Shuttle which plies the ultra-long haul is said to be on the brink of collapse, and the grounding of the B737 Max jet isn’t helping. According to former CEO Bjorn Kjos, the restriction has cost the airline US$58 million. Norwegian, which took the US by storm with its low fares, raising objection from American carriers, has cancelled numerous flights between Europe and the U.S.

Both the US Federal Aviation Administration (FAA) and Boeing have suffered some loss of credibility in the wake of the two crashes. Stories about Boeing’s shoddy work at is plants and allegations of FAA’s relegating its oversight role to the manufacturer had hit hard. FAA’s delayed action to ground the Max jet after a number of authorities across the globe had done so also called into question FAA’s leadership role in the field.

However, FAA may have learnt its lesson. Following meetings between Boeing and various industry players where disagreement on the readiness of the Max jet was apparent, FAA had said, “Our first priority is safety, and we have set no timeframe for when the work will be complete. Each government will make its own decision to return the aircraft to service, based on a thorough safety assessment.”

Europe’s aviation safety watchdog – the European Aviation Safety Agency (Easa) – for one will not rely entirely on a US verdict on whether the Max jet is safe to resume flying. It will instead additionally conduct its own tests on the plane before giving its final approval.

Transport Canada has insisted on the need for essential simulator training in early discussions when Boeing said it was not necessary since the Max jet was a variation of the B737 master model. The authority said it “will not lift the current flight restriction… until it is fully satisfied that all concerns have been addressed by the manufacturer and U.S. Federal Aviation Administration, and adequate flight crew procedures and training are in place.”

According to a report by the Wall Street Journal, multiple regulatory bodies around the world were not satisfied with Boeing’s briefing on the Max software update. They contended that Boeing “failed to provide technical details and answer specific questions about (the) modifications.” Boeing is expected to resubmit documents providing more details, and that these should be first approved by FAA before a follow-up meeting is convened. This in a way reminds FAA of its oversight role.

While affected airlines are looking forward to normalising their operations with the return of the B737 Max jet, what happens post-ban is another story. In fact, it may present a more difficult problem to handle than the technical aspects of the saga as the carriers try to win back the trust of travellers. If, indeed time is the healer, then taking the time to be absolutely convinced of the jet’s airworthiness before lifting the ban may be a good thing for the airlines.

2019 Skytrax World Airline Awards: Who are the real winners?

It’s that time of the year when the airline industry is abuzz with the Skytrax World Airline Awards announced recently at the Paris Air Show.

There are surveys and there are surveys, if you know what I mean. Skytrax, which launched its survey back in 1999 (according to its website) is generally viewed with some regard. It is said that more than 21 million respondents participated in the 2019 survey.

But what can we read of the results?

Which is the real winner: Qatar Airways or Singapore Airlines?

Qatar Airways switched places with last year winner Singapore Airlines (SIA) to be the world’s best airline.

As far back as 2010 until now, the two airlines have been ranked one behind the other in the top three spots, except in 2012 when Asiana came in second place between Qatar the winner and SIA in third position. In the ten year period, SIA came behind Qatar in eight years, except in 2010 when SIA was second and Qatar third, and last year when the Singapore carrier became the world’s best ahead of Qatar in second placing.

It looks like a tight race between Qatar and SIA for the top spot, and going by the survey results, Qatar has outranked SIA. It has become the first airline to have won the award five times, one more in the history of the awards.

But SIA is still ranked ahead of Qatar for first class and economy class.

In the first class category, Qatar is not even a close second to SIA in first placing but fifth behind Lufthansa, Air France and Etihad as well

In the economy class category, Japan Airlines is tops followed by SIA and Qatar in second and third placing respectively.

Besides SIA has the best premium economy in Asia, second only to Virgin Atlantic worldwide. But,of course, Qatar does not offer that class of travel.

Additionally SIA tops for cabin crew, and Qatar is farther down the list in 9th position.

But Qatar wins for business class, followed by ANA and SIA in second and third placing respectively. So it seems there is heavier weightage for this segment which has become probably the fiercest battleground for the airlines. First class included, it also suggests the halo effect of the premium product, but it is the business class that is the primary focus in today’s business.

It also attests to the impact of the recency factor. Qatar obviously impresses with its cubicle-like Qsuite that comes with its own door to provide maximum privacy. Quad configurations allow businessmen to engage in conference as if they were in a meeting room and families to share their own private space. And there is a double bed option.

Which brings up the importance of having to continually innovate and upgrade the product to stay ahead in the race.

The top ten listing: Consistency equals excellence

The ranking does not shift much from year to year. Besides Qatar and SIA, there are some familiar names: All Nippon Airways (3rd this year), Cathay Pacific (4th), Emirates (5th), EVA Air (6th) and Lufthansa (9th). So there is not much of a big deal as airlines switch places so long as they remain in the premier list.

Hainan Airlines (7th) is making good progress, moving up one notch every year since 2017. Qantas (8th) is less consistent, moving in and out of the top ten list, Thai Airways retained its 10th spot for a second year.

It is no surprise that the list continues to be dominated by Asian carriers which are generally reputed for service. You only need to look at the winners for best cabin crew: Besides SIA, the list is made up of Garuda Indonesia, ANA, Thai Airways, EVA Air, Cathay Pacific, Hainan Airlines, Japan Airlines and China Airlines. With the exception of Qatar, no other airline outside Asia is listed.

If you to look to find out how the United States carriers are performing, scroll down the extended list of the 100 best and you will see JetBlue Airways (40th), Delta Air Lines (41st), Southwest Airlines (47th), Alaska Airlines (54th), United Airlines (68th) and American Airlines (74th).

Home and regional rivalry

Rivalry between major home airlines or among competing regional carriers is often closely watched.

Air Canada, placed 31st ahead of rival WestJet at 55th can boast it is the best in North America. That’s how you can work the survey results to your advantage.

ANA (3rd) has consistently outdone arch rival JAL (11th). In fact, ANA has been the favoured airline in the past decade till now. It has Japan’s best airline staff and best cabin crew. Across Asia, it provides the best business class. Internationally, it provides the best airport services and business class onboard catering.

Asiana (28th) is favoured over Korean Air (35th ).

The big three Gulf carriers are ranked Qatar first, followed by Emirates (5th) and Etihad (29th).

Among the European carriers, Lufthansa (9th) leads the field, followed by Swiss International Air Lines (13th), Austrian Airlines (15th), KLM (18th), British Airways (19th), Virgin Atlantic (21st), Aeroflot (22nd), Air France (23rd), Iberia (26th) and Finnair (32nd).

What about low-cost carriers?

Worthy of note is how some budget carriers are ranked not far behind legacy airlines. AirAsia (20th) is best among cohorts. EasyJet (37th) and Norwegian Air Shuttle (39th) are not far behind the big guys in Europe. Among US carriers, Southwest Airlines (47th) is third after JetBlue (40th) and Delta (41st).

Also, pedigree parents do not necessarily produce top-ranked offshoots. Placed farther down the list are SIA’s subsidiary Scoot (64th) and the two Jetstar subsidiaries of Qantas – Jetstar Airways (53rd) and Jetstar Asia (81st). So too may be said of so-called regional arms. Cathay Pacific’s Cathay Dragon is ranked 33rd, but SIA’s SilkAir is way down at 62nd.

Pioneer of the modern budget model Ryanair is ranked 59th.

Down the slippery road of decline: Aisana Airlines and Etihad Airways

If it is difficult to stay at the top, it is easy to slip down the slippery road of decline. Asiana and Etihad are two examples.

Asiana was ranked world’s best airline in 2010 and became a familiar name in the top ten list up to 2014, after which its ranking kept falling: 11th (2015), 16th (2016), 20th (2017), 24th (2018) and 28th (2019). Its erstwhile glory has been whittled down to being just best cabin crew in South Korea.

Etihad did reasonably well for eight years until 2018 when it was ranked 15th, and a year later suffered a dramatic decline to the 29th spot. That, despite beating Qatar to be this year’s best first class in the Middle East.

As I stated at the onset that there are surveys and there are surveys. Some are not specifically targeted , whether its interest is business or leisure for example. There is always an element of subjectivity and bias in the composition and weightage, and this renders no one reading as being definitive. At best, we can read across several creditable surveys to know with some conviction how the airlines really measure against each other.

Read also:

https://www.todayonline.com/commentary/can-singapore-airlines-overtake-qatar-worlds-best-airline

No new spin: Boeing sings the same apologetic tune

Courtesy Getty Images

The Paris Air Show (June 17 to 23) should provide an opportunity for aircraft manufacturer Boeing to clear the air of any misgiving and doubt that industry players may have of the company’s commitment to production priorities following the B737-800 MAX 8 disasters and the unsavoury stories that have unfolded since the two incidents involving Lion Air and Ethiopian Airlines.

It will be a mammoth effort trying to regain customer trust particularly in light of how many travellers surveyed have indicated they would not ever fly the MAX jet even after the authorities have cleared it for service resumption. So far it is anybody’s guess as to when the grounding will be lifted. The date keeps pushing into the future.

Airlines which own a sizeable fleet of the MAX, having reported the cancellation of thousands of flights since the grounding, may be keen to see it back up in the air sooner. American Airlines which owns a fleet of 24 jets is pre-empting an October date.

But the authorities want to be more conservative this time as they grapple with issues of training and procedures with the US Federal Aviation Administration (FAA) thinking it may be longer than that. Canadian transportation authorities for one are insisting on simulator training which Boeing, the FAA and American carriers think would not be necessary.

Boeing CEO Dennis Mullenberg all but knows too well the score. Quite wisely he had said of the Paris Air Show: “This is a different show for us, it is not about orders. It is really focused on safety and the safe return of the Max flight.”

Boeing had reported no new commercial aircraft orders in May, although according to Mr Mullenberg, the company had more than 4,000 orders of the MAX jet in backlog. He is expecting to see the aircraft back in the air by the end of the year, but the timeline is still not specific if not uncertain. Reports seem to be ambivalent as to whether the software glitch of the computer system known as MCAS has been definitively fixed or that Boeing is still working on the update.

The hardware may not be as difficult an issue to handle as that which concerns public opinion, perception and reservations. So in doses Boeing is dishing out apologetic messages but falling short of admitting sole responsibility for the tragic MAX incidents.

Mr Mullenberg expressed disappointment that Boeing had not been more transparent with regulators and the public when it discovered a safety light was not operating as designed. He echoed Boeing vice-president Gordon Johndroe who said ahead of the Paris Air Show: “We clearly fell short in the implementation of the AOA disagree alert and we clearly should have communicated better with our regulators and the airlines.”

And, one wonders, what would have had happened then?

Clearly the road ahead for Boeing is marked with PR pointers to appeal to the heart for understanding and perhaps implicitly forgiveness without admitting liability. It knows that the airlines who were operating the MAX before its grounding have much to lose if they do not work together to get the aircraft safely back in the air.