Jul 13, 2011

Boeing pressured to make new desitions

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Boeing under constant pressure to make a new desition
After the Paris Air Show in Le Bourget, Paris, Boeing has been under constant pressure by customers for announcing if they were either going to create an all-new airplane that would be launched around 2020 or re-engining the 737 as airbus did.

After airbus achieved more than 500 narrow-body orders, boeing has been telling their customers they are not scared by airbus' achievement, because anyways they saw that coming, but fellow customers are starting to be driven away to Airbus, even American Airlines has been rumored of considering the purchase of Airbus narrow-body aircraft.


As seen here, the new airbus A320 NEO.

While other customers are still loyal and still bought 737 units while the paris air show even if they had the possibility of purchasing the new, more economic A320neo, among this customers we can find MIAT Mongolian Airlines (Having ordered 737 and 767 aircraft) and a few more, while at the wide-body aircraft market, boeing outsold Airbus by many aircraft, while selling a lot of 777s and growing its 747-8s order backlog and while also selling the 767, although many airlines are still considering orders for either the 787 or the A350 (like Air France/KLM which is in this process).


MIAT Mongolian Airlines 737 and 767 as pictured above

South American Airlines Expand!! Growing Market!

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The South American Commercial Market Expands

Perhaps the commercial market that has grown the most is the South American market, with many new airlines entering the market and others expanding, or replacing their fleet, while also beginning service to newer destinations, among the many important things that have happened recently in the South American market we can see the merger between LAN Airlines and TAM Airlines, the consolidation of the Avianca/Taca group as one of the strongest and most important of the region, the re-estructuring of TAME Airlines of Ecuador, which if, continues growing this way, would become, the largest airline in Ecuador.

At first we can find one of the worlds oldest airlines still in operation, currently the second oldest in operation, Avianca, the airline of Colombia, this airline is part of the Avianca/Taca Group, an airline group made up by Avianca and Taca, these airline group has hubs at Eldorado International Airport in Bogota, at Sao Paulo-Guarulhos International Airport in Brazil, in San Jose's Santamaria International Airport in Costa Rica and in San Salvador's Airport, well, this airline group has one of the youngest and most modern fleets in the Americas, mostly made up of Airbus Aircraft, at the Paris Air Show, these airline group expanded their fleet by ordering aircraft from the A320 Family, mostly the NEO (New Engine Option).


Even though these two airlines are part of the same group and are owned by the same people, they continue to operate separately.

Aerolineas Argentinas has also been one of the leading airlines of the Region, this airline, based in Buenos Aires, Argentina, has hubs at Buenos Aires-Ezeiza and Buenos Aires-Aeroparque and is planning on opening another hub in Argentina, while taking deliveries of their recently aquired Boeing 737-700s which would replace their older Boeing 737-500s, this airline would also join SkyTeam if things follow as projected, this would expand SkyTeam's reach in South America, while also re-estructuring Austral, their subsidiary.


Aerolinea Argentinas recently renewed their livery, as seen here on their Boeing 737-700.

Airline mergers are very common around the world, well in South America too, as shows the TAM Airlines- LAN Airlines merger, although they still each retain their own alliances (Star Alliance and Oneworld) and their same liveries, and it will possibly continue this way, this two airlines merged thinking this would help make operations cheaper and would help them grow in market share and south american market dominance, by joining both their forces, they now have most of the South American market, while TAM was and is still the biggest and largest airline in South America and LAN Airlines is perhaps the one with most subsidiaries flying with the LAN Airlines name, this would create a leading airline in the region, with the service and safety each offer, merging also their own subsidiaries each one, TAM with Pantanal and TAM Airlines Mercosur, and LAN with LAN Chile, LAN Ecuador, LAN Argentina and LAN Peru, and Aires (the recently aquired Colombian carrier, which would probably soon become LAN Colombia). Forming the LATAM Airlines group.


Both this airlines together are forming the regions leading group.

At last, we could talk about a very important airline in both the central american and south american region, one of the airlines performing the best and making the most of its operations, we can see Copa Airlines along with its subsidiary Copa Airlines Colombia (formerly Aerorepublica) , this airline has its main hub at Panama City's Tocumen International Airport, located at an strategic location, with access to many regions, and without and exploited market, this airline makes up a monopoly at Panama City's Tocumen Airport, forming its famous Hub of the Americas, with flights to South America, The Caribbean & Central America and North America, while codesharing on flights to Europe, this airline has a great future and great growth opportunities, having inagurated recent service to Toronto, Belo Horizonte, Nassau and increasing frequencies, this airline re-states its leading position in Central & South America along with its great service.


The hub of the americas as seen here at Panama City.\
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U.S Airlines planning on replacing large amounts of aircraft

In the past few months, since even a year, u.s airlines have been talking and rumored on thinking on expanding or replacing aircraft on their fleet, specially in the case of American, Delta, and United Continental which all have aging fleets of certain types of aircraft.

 American for instance has been rumored to be considering purchasing Up to 250 narrow-body aircraft, this order could be split among airbus and boeing aircraft, which would break American's long-term only-preference for Boeing aircraft, of course many say this are just rumors, or that American could be saying this to push Boeing to make a decision wether to Re-engine the 737 or make an all-new airplane, or it could be to push Boeing to give cheaper aircraft prices to American.

We also have the case of Delta which has been saying that they would maybe order a big quantity of narrow-body aircraft to replace aging 757s, A320s, and DC-9s, they had said in January that they would be making a decision by 2011, which hasnt come out yet, theres the possibility of Delta purchasing Boeing 737s, Airbus A320s, or The Bombardier CSeries.

And United Continental, now having both the choice to expand their Airbus narrow-body fleet or their Boeing narrow-body fleet , they are considering a big purchase to replace some older A320s and 757s, this decision could be announced later this year.

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