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).

Advertisements

EasyJet to shake up market

Courtesy EasyJet

EasyJet “will shake up the market,” said the low-cost carrier’s chief commercial officer Peter Duffy. The airline operating out of London Gatwick has entered into an arrangement with Norwegian Air Shuttle and WestJet to allow booking of connecting flights to Singapore and destinations in North America that include New York, Los Angeles, Orlando and Toronto on its website.

This is another indication of how LCCs are no longer content with just the so-called niche market as they enter into the arena of the big boys. Such connections are usually forged among legacy airlines competing with each other, an advantage compared to stand-alone LCCs confined to point-to-point traffic. So EasyJet’s initiative – said to be the first global airline connections service by a European low fares carrier – is set to change the rules of the game.

Already Norwegian, encouraged by the prospect of an increased number of passengers through the partnership that will help it expand its wings, is talking about the possibility of linking up with Ryanair. EasyJet also said the tripartite arrangement will expand to include more airlines.

The agreement is not completely an LCC club as it includes WestJet, Canada’s second largest airline after Air Canada. This is breaking new ground, challenging the advantage enjoyed by legacy airlines which are supported by subsidiary or joint-venture LCCs, among them Lufthansa/Eurowings, British Airways/Level/Vueling, Qantas/JetStar, and Singapore Airlines/Scoot.

It is interesting how the modus operandi of the LCC keeps evolving, and consumers stand to benefit from the increased competition. For now, EasyJet customers connecting partner flights will have to collect their bags in transit, to be handled via the Gatwick Connects desk in the baggage reclaim area. No reason why this will not improve in time.

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.

Travelling across Europe in summer: Expect flight delays

Travelling across Europe during the summer can be a nightmare should anything happen to disrupt the flow of the peak traffic. It may be worse this summer, and travellers should expect delays. Already there are stories of a number people who have missed their flights.

British Airways, Ryanair and EasyJet have advised their customers to allow plenty of time to get through the airport because of enhanced immigration checks. Ryanair suggests that customers arrive at least three hours before departure time.

The European Commission said this is “the price of security”. It is not something most people want to argue about for their safety. New measures to check potential terrorist threats have been introduced, but it looks like some airports are not ready for the implementation. Passengers complained about inadequate border control booths and staff to handle the usual surge in summer travel.

The summer months in the past had also experienced disruptions caused by industrial action. For now, strike action by security workers at Barcelona Airport every Friday, Sunday and Monday since August 4 to last throughout the season has added to the woes of travellers. Let’s hope other disgruntled airport staff and airline crew do not see this as an opportune time to join them.

It may make sense to put off travel to outside the peak months, but for many people this just isn’t possible because of work, school and other commitments.

Star power in British Airways’ new safety video

Ever since Air New Zealand (Air NZ) made the bold move to ditch the traditional safety video format for something more entertaining, some airlines have followed suit to be different. It started with the objective to arrest the attention of passengers who would otherwise be disinterested. It has certainly become a talking point that raises the profile of the airline – for as long as the script remains topical and appealing.

The pertinent question is at what point the new video ceases to be a safety demo and becomes pure entertainment with a life of its own. That depends on how well the safety message still comes through taken out of the normal environment of the aircraft. And when the production tries to do more than just educate and entertain but advertise or sell a third product, things can get pretty muddled up as in the case of a joint promotion by Qantas and Australian Tourism.

Courtesy British Airways

What appeals to the passengers? A good story or a favorite movie recall such as Air NZ’s adoption of the Lord of the Rings’ Middle Earth. Or, popular personalities, particularly movie idols, as British Airways (BA) has done with a new star-powered video to be launched in September. It features Chiwetel Ejiofor, Gordon Ramsay, Thandie Newton, Ian McKellen, Jim Broadbent and Gillian Anderson among others, not forgetting, of course, Rowan Atkinson aka Mr Bean! It is clearly British humor, and to the production’s credit, executed without shadowing the safety message.

BA chairman and CEO Alex Cruz said: “It’s extremely important to us that customers engage with our safety video, and involving some of the nation’s most well-know personalities has given us the chance to create something fun that we hope people will watch from start to finish – and remember.”

However, the old format, dull as it is, never gets out of date whereas the new format needs to keep up with the times to sustain the excitement. While many would just do something else instead of watching the old video, equally many others may sigh “not again” if the newly formatted version becomes an over-shown re-run. Passengers will therefore expect seasonal changes. Well, at least that’s something to look forward to.

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.

Air France to “boost” performance with new low-cost carrier

Legacy airlines in Europe have long been feeling the pinch from low-cost carriers such as Ryanair and Easyjet. Now it looks like Norwegian Air Shuttle and WOW Air are pushing them to look farther before they lose more ground.
Lufthansa already offers a low-cost trans-Atlantic option from Europe to Las Vegas, Orlando, Miami and Seattle in the United States.

The International Airlines Group which owns British Airways, Iberia, Aer Lingusm and Vueling has just added another low-cost carrier – Level – to its stable. Level, based in Barcelona, will fly to Los Angeles and Oakland in California USA, Punta Cana in the Dominican Republic, and Buenos Aires in Argentina. Fares start at the familiar €99 reminiscent of the Norwegian and WOW Air’s promotions.

Courtesy Air France

Following in their footsteps is Air France, which announces the formation of a new subsidiary low-cost airline – Boost as its working name – planned to commence operations in winter. The airline will fly from the main hubs of the Air France/KLM group to destinations in Italy, Spain and Turkey initially, and then farther to destinations in Asia. Norwegian is already flying to Bangkok and will in October connect London with Singapore.

But Boost will be taking on full-service airlines as well, such as the Middle East carriers of Emirates Airlines, Etihad Airways and Qatar Airways which are already ruffling the feathers of the regional big birds of Singapore Airlines and Cathay Pacific.

The developments point to a gradual convergence of the low-cost and full-service product perceived value wise. It’s the antithetical success of low-cost carriers pushing to bridge the gulf and the failure of legacy airlines not being able to maintain if not increase the differentiation. It looks like the European tug-of-war is pulling the legacy airlines towards the centre line.