Boeing's strategy of underwriting a portion of the U.S. Air Force's KC-46A tanker development contract may portend the approach other contractors will take as the Pentagon devises more fixed-price programs. Though other companies are skeptical that Boeing will recoup losses with production orders, this approach did not take Pentagon officials by surprise.
Rocked by the U.S. Army's 2008 cancellation of its over-budget ARH-70 armed reconnaissance helicopter program to replace the OH-58D Kiowa Warrior, Bell Helicopter hatched a plan to recapture its customer by capitalizing on perhaps its most successful product, the OH-58D itself.
The last time the Lockheed P-3 was flying in Vietnam was during the Vietnam War and, thanks to China, this aircraft could be patrolling Vietnam's coastline again. Vietnamese authorities have expressed an interest in purchasing P-3 Orion aircraft (see photo) so the Southeast Asian nation can boost its anti-submarine warfare (ASW) capability, say sources familiar with the situation. But for a deal to take place, the U.S. and Vietnam will need to further develop defense relations, add the sources.
Uncertainty over the U.K.'s plans to reconstitute its carrier strike capability by the end of the decade will persist for at least another year. The British government's decision to allow an almost decade-long gap in its carrier strike capability remains the most controversial outcome of last year's Strategic Defense and Security Review (SDSR). The decision was made to help plug a massive budget shortfall, but combat operations in Libya have prompted critics to argue that the choice was foolish.
The Austrian Eurofighter Typhoon fleet is undergoing a major modernization effort to finally bring the aircraft to its full operational capability standard.
Shimmering, mirage-like, in the heat of California's Mojave Desert, the newly completed steel and concrete of the world's first commercial suborbital spaceship factory proves the goal of space tourism is nearing fruition.
The U.S. Air Transport Association (ATA) finally got its day in court in the battle over the EU's plan to regulate the greenhouse gas emissions of non-EU aircraft flying into and out of Europe. But a final verdict to resolve the situation may not be in hand before airlines become subject to the EU Emissions Trading System (ETS) at the beginning of next year.
The Italian airline landscape is once again shifting as carriers deal with increasing costs and changes in the competitive makeup of the market. A main facet of the latest turmoil is Lufthansa's decision to shutter its Italian venture, which alters the prospects for airports and airlines in the region.
Linking networks is a central goal of airline alliances, yet the latest announced addition to the Star Alliance, Air China affiliate Shenzhen Airlines, has few connections with the group's foreign partners. At first glance, the decision to admit Shenzhen next year looks like a great boost, since it adds to Star a fleet of 102 aircraft based in mainland China's richest city. And it gives the alliance a home in the Pearl River Delta, an area that has been an economic leader in China since the country began liberalizing in the late 1970s.
Shenzhen Airlines plans to expand its fleet to at least 171 aircraft by 2015, ramping up capacity by 10% a year in its role as the Air China group's challenger in the home territory of rival China Southern. That fleet forecast is conservative, says an airline official. “If possible, it will be more than 180,” she notes.
The FAA's NextGen air traffic modernization plan may not have slews of enemies on Capitol Hill, but to become a reality, it will still need the right kind of friends. Republicans are targeting domestic discretionary spending to deflate the deficit, and plan to roll back the Transportation Department's budget to 2007 levels. Since the FAA still needs to maintain the salaries of air traffic controllers and other essential personnel, even without lawmakers calling for NextGen's demise, the amount left over for the effort is under serious pressure.
Leading Asian airlines are gaining a valuable competitive advantage from their proximity to China, as this market's enormous potential transforms into rapid growth. The big question now is how long it will take China's own carriers to exploit the boom and join the Asian giants in the industry's top echelon.
Michael J. Dyment Managing Director, Nexa Capital Partners George W. Hamlin President, Hamlin Transportation Consulting Craig Jenks President, New York-based Airline/ Aircraft Projects Inc. Raymond E. Neidl Senior Aerospace Specialist, Maxim Group Bryan Terry Director, PwC Transportation and Logistics
Comparing the operating performance of low-cost and mainline airlines highlights that while growth can be a good thing, sometimes restraint can pay off even more. The low-cost/niche carrier segment is generally weaker than the mainline category in the latest Top-Performing Airlines study, and the low-cost carriers (LCC) did not see the same sharp improvement through 2010 that their legacy counterparts enjoyed.
While Regional Express Holdings (REX) was the top performer in the regional category for the third year running, the performance of the category overall was lackluster. Only Australia's REX and U.S. carrier Republic Airways saw their scores increase, with the other carriers sliding. The TPA council of advisers sees a bleak future for U.S. regionals and believes more consolidation is likely.
This year's ranking of publicly traded airlines identifies those that have lifted their operating performance as they recover from the 2008 global recession and deal with new challenges such as oil price spikes. Scores represent the composite of five performance categories, with emphasis on financial fitness and earnings performance. The five categories (and their contributions to total score) include:
Notwithstanding significant consolidation in their ranks, the U.S. legacy carriers remain firmly ensconced in the mid-range of the mainline/network carrier category in this year's Top-Performing Airlines (TPA) rankings. Meanwhile, Southwest Airlines ranks in the top five in the low-cost/niche category, and Alaska Airlines—which a number of observers would categorize as more of an LCC than a legacy—is in third place overall in the mainline/network category.
