Market Intelligence: -Airline Aircraft Orders

Turkish Airlines Purchases 6 Airbus A350 Aircraft

Turkish Airlines has acquired six Airbus A350-900 aircraft to bring order book of aircraft type to 19 (with 6 already delivered and operating). The interesting development about this aircraft order is that Turkish Airlines had signed a Memorandum of Understanding for 25 Airbus A350-900 back in 2018 before reducing that order by 5 aircraft at the start of this year before purchasing additional six now in May 2022.

As of April 2022, Turkish Airlines operates a fleet of 372 aircraft, consisting of 13 passenger aircraft types.

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UK Headquartered Airline Confirms Agreement to Purchase up to 150 Boeing Aircraft

International Airlines Group Finalizes Agreement for Up to 150 737 Jets

  • Purchase includes firm order and options for 737-8-200 and 737-10 airplanes
  • IAG selects the high-capacity and largest 737 citing airplane’s additional seats and environmental performance
  • Fuel efficient family of airplanes will further the IAG´s sustainability goals

Boeing and International Airlines Group (IAG) today announced an order for a combined total of 50 737-8-200s and 737-10s, plus 100 options.

“The addition of new Boeing 737s is an important part of IAG´s short-haul fleet renewal. These latest generation aircraft are more fuel efficient than those they will replace and in line with our commitment to achieving net zero carbon emissions by 2050,” said Luis Gallego, IAG´s chief executive.

The 737-8-200 will enable IAG to configure the airplane with up to 200 seats, increasing revenue potential and reducing fuel consumption. The largest model in the family, the 737-10 seats up to 230 passengers in a single-class configuration and can fly up to 3,300 miles. The fuel-efficient jet can cover 99% of single-aisle routes, including routes served by 757s.

“With the selection of the 737-8-200 and larger 737-10, IAG has invested in a sustainable and profitable future, as both variants will significantly lower operating costs and CO2 emissions,” said Stan Deal, president and CEO of Boeing Commercial Airplanes. “Today’s agreement for up to 150 airplanes, including 100 options, is a welcome addition of the 737 to IAG´s short-haul fleets and reflects our commitment to support the Group’s continued network recovery and future growth with Boeing’s unrivalled family of airplanes.”

The 737 incorporates the latest-technology CFM International LEAP-1B engines, Advanced Technology winglets and other improvements to deliver the highest efficiency, reliability and passenger comfort in the single-aisle market. The 737 family of airplanes is on average 14% more fuel-efficient than today’s most efficient Next-Generation 737s and 20% more efficient than the original Next-Generation 737s when they entered service.

Today’s announcement finalizes a commitment made by IAG for the 737 at the 2019 Paris Air Show and is subject to approval by IAG shareholders.

Source: Boeing Press Release

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European Airline Group Orders 16 Boeing Aircraft

Lufthansa Group Selects New 777-8 Freighter, Orders Additional 787s

  • Lufthansa Group becomes first European customer for the (7) 777-8 Freighter
  • Orders additional (7) 787s and (2) 777 Freighters
  • Industry’s most capable and fuel-efficient twin-engine airplanes will help Group reach its target of halving CO2 emissions across its network by 2030

Boeing and the Lufthansa Group announced the airline group will continue its strategic decision to strengthen Lufthansa Cargo with an order for seven 777-8 Freighters, the industry’s newest and most fuel-efficient twin-engine freighter.

The Group has also placed a new order for two 777 Freighters to add to its cargo fleet, providing extra cargo capacity in the near-term until the delivery of its first 777-8 Freighter.

In addition, the Lufthansa Group continues to accelerate the modernization of its long-haul passenger fleet with a new purchase of seven 787-9s. The order for more 787s brings Lufthansa Group’s total order book for the 787 Dreamliner to 32 firm orders. The Group also is a launch customer for the 777X passenger airplane, with 20 firm orders.

“The continuous modernization of Lufthansa Group’s long-haul fleet is one of our top priorities. Therefore, we are very pleased to further invest into the newest generation of Boeing aircraft. The purchase will complement our existing orders and further reduce our operating costs, enhance fuel efficiency and provide state-of-the-art customer experiences. Moreover, the purchase highlights our commitment towards enhancing sustainable aviation,” said Dr. Detlef Kayser, Member of the Executive Board of Deutsche Lufthansa AG.

Boeing launched the new 777-8 Freighter in January and has already booked 34 firm orders for the model. With advanced technology from the new 777X family and proven performance of the market-leading 777 Freighter, the 777-8 Freighter offers the highest payload and the lowest fuel use, emissions and operating cost per tonne of any large freighter.

“With the selection of our newest freighter, Lufthansa continues its long history of firsts with Boeing airplane programs, becoming the first European customer for the 777-8 Freighter,” said Ihssane Mounir, Boeing senior vice president of Commercial Sales and Marketing. “With the investment in the 777 and 787 fleet, the Lufthansa Group will operate the most advanced, fuel-efficient twin-engine airplanes in the industry. Each of these airplanes reduces emissions by 15 to 25% compared to previous models with a noise footprint up to 50% smaller than their predecessors, helping to advance the Lufthansa Group’s sustainability objectives.”

The 777-8 Freighter is ideally suited for operators creating a more sustainable and profitable future. With nearly identical payload and range capabilities, 30% better fuel efficiency and emissions and 25% better operating costs per tonne, the 777-8 Freighter will be the ideal choice as operators replace aging freighters later this decade.

The 2021 Boeing Commercial Market Outlook projects a 70% increase in the global freighter fleet by 2040, including approximately 450 new large widebody freighters such as the new 777-8 Freighter and 777 Freighter. First delivery of the 777-8 freighter is anticipated in 2027.
Built with lightweight composite materials and powered by advanced engines and a suite of environmentally progressive technologies, the 787 family has an airport-noise footprint that is 60% smaller than the previous generation of airplanes, making it ideal for Lufthansa Group airport communities.

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Aircraft OEM Announces Increase in Aircraft Production to 31 Per Month

Boeing Plans to Increase B737 MAX Production to 31 Per Month Starting 2nd Quarter!

“The 737 MAX is now approved to fly in nearly every country, and since late 2020, the fleet has safely flown more than one million flight hours with schedule reliability above 99 percent. We delivered 81 737 MAX airplanes in the first quarter, including 34 in March. We also steadily increased production and are on track to reach a rate of 31 per month in the second quarter. We’ll continue to prioritize quality, stability and supply chain capacity in determining future production increases,” said Boeing President and CEO Dave Calhoun in his message to employees addressing the company’s first-quarter results.

Source: Boeing

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Australian Airline Increases Aircraft Order Due to High Demand

Virgin Australia Group has today taken an important step in its journey towards Net Zero, unveiling the first phase of its fleet growth program which will see four new Boeing 737 MAX 8 aircraft introduced to its network and F100 aircraft retired from service and replaced by Boeing 737-700s.

The four new MAX 8 aircraft, scheduled to start entering service from February 2023, will reduce emissions by 15% per journey in comparison to current 737 NG aircraft. Each 737-700 will fly more passengers for a similar amount of fuel than each F100, resulting in 30% less emissions per seat per trip.

Virgin Australia CEO Jayne Hrdlicka said the fleet program is part of a broader growth strategy which will see the Boeing 737 fleet, currently consisting of 737-700 and 737-800 aircraft, increase to 88 with the inclusion of 4 MAX 8 aircraft in response to increasing demand.

“We are on track to return to 100% of pre-COVID domestic capacity by June this year and expect to well exceed those levels by year’s end, and our resources sector and contract flying in WA is in high demand. This investment in our fleet reflects the increased demand we are experiencing in all parts of Virgin Australia,” Ms Hrdlicka said.

“With growth comes a larger carbon footprint, so it’s vital that we take the right steps now to ensure that as we do more flying, we are also working to reduce our emissions.

“We have a younger average fleet age than other airlines operating in the Australian market and we are in a good position to phase out our older F100 aircraft for more fuel-efficient options.

“This fleet program is about making sure we capitalise upon that advantage as we work toward achieving our 33% domestic market share, strengthen our resources sector and contract flying, and continue on our journey to Net Zero.”

Since it’s re-launch in November 2020 the Virgin Australia Group has announced it will grow its 737 fleet by over 50%, from 58 aircraft to 88. The Group currently operates 10 x F100 aircraft across its operations in Western Australia, with the F100 fleet to be gradually transitioned out and replaced by 737-700s from first quarter 2023.

As part of a future phase of its fleet program Virgin Australia Group has an additional 25 Boeing 737 MAX 10 aircraft on order, which will transport more passengers for a similar amount of fuel to current 737 NG aircraft, resulting in 17% less emissions per seat per trip.

Ms Hrdlicka said in addition to the sustainability benefits, the fleet program also presented greater opportunity for team members across the business.

“This program is as much about investing in our people as it is investing in our operations,” Ms Hrdlicka said.

“We are committed to building this business and positioning it for success into the long term. Continuing to modernise our fleet and develop the capability of our teams across Australia to support newer aircraft is an essential part of that success.

“Equipping our WA operation with more modern and efficient 737 aircraft positions us to grow and to better compete in the resources sector and contract flying market across Australia. It also enables Virgin Australia to improve fleet utilisation across the Group.

“Existing F100 flight and cabin crew, VARA engineering and support staff and corporate and operations functions will be progressively trained to operate and maintain a 737 NG fleet, both as F100 aircraft are retired and as the airline continues to grow its WA resources sector and contract flying business.”

In addition to its 737 fleet, Virgin Australia Group will also continue to operate Airbus A320 aircraft as part of its resources sector and contract flying operations.

Virgin Australia announced its commitment to Net Zero Emissions by 2050 in November last year. In addition to its fleet program the airline is also actively building out its wider sustainability strategy, including investigating operational efficiencies, the use of alternative fuels, and waste management and carbon offsetting programs.

For more information, kindly contact Virgin Australia.

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Boeing Uncertain About More Than 140 Aircraft Orders Due To Geopolitics

Boeing said that 141 jet orders are currently in a state of limbo due to the conflict between Ukraine and Russia and the international sanctions imposed to the latter. Said data was included in Boeing’s reports citing orders, deliveries, and unfulfilled orders.

For the month of March, Boeing has 53 aircraft in order, 32 of which are for global aircraft lessor, Air Lease Corporation. While 6 are for DHL Aviation Americas, and the remaining 15 are for undisclosed customer/s.

In terms of delivery, Boeing, in March, delivered a total of 41 aircraft.

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