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2009 CNS Partnership Conference
Conducted this year at the La Costa Resort and Spa in Carlsbad, CA, the annual CNS (Cargo Network Services) Partnership Conference took place on May 3-5, 2009. Gathering over 400 executives, speakers and panelists representing airlines, freight forwarders and other related interest groups, the event - appropriately themed "Implementing the Vision" - addressed several issues currently facing the air cargo industry.
The casual comfortable setting belied an industry searching for the proverbial light; exploring and discussing when the current recession ends and business gets back to "normal," knowing full well we will emerge from this economic situation very different than when we started.
The Keynote Address at this year's conference was delivered by Robert Crandall, former Chairman and CEO of American Airlines Cargo. Mr. Crandall's comments derive from years of hands-on industry experience weathered now with the perspective of having been in and now out of the day-to-day operation of running an air carrier.
With permission, we provide our readers with the full text of Mr. Crandall's keynote address so that you too might enjoy and reflect upon his observations:
The theme of your conference - Implementing the Vision - sounds like a challenge appropriate for the airline industry; if only it could do so!
Although I have never seen a vision statement for the industry, I assume that if there were one it would include fewer crisis, consistent profits, better labor-management relations, more on time flights, fewer customer complaints and less general disapprobation.
It's astounding how elusive that simple set of objectives has been. I've been in and around the business for almost 40 years now, and I can remember few times when some crisis or the other wasn't stalking the industry. Way back in 1973, when I joined American from TWA, the then senior vice president of operations was in the elevator lobby as I disembarked, and asked if I knew what a mess I was getting myself into. And it's been like that ever since.
Indeed, it's been like that forever in commercial aviation. In the years since the Wright Brothers first flew ... [read the complete speech here]
Airlines bank on extra fees in down times
The onslaught of more airline fees on everything from checked bags to seat assignments is helping airlines bring in more cash, but for travelers it can mean muddled comparison shopping when seeking the lowest cost for a flight.
Add-on fees have become an effective way for airlines to boost revenue at a time when recession-weakened travel demand compels them to drop fares.
Atlanta-based Delta Air Lines in July starts charging passengers on international flights a $50 fee each way for checking a second bag. Other airlines are studying the move but have not yet matched. That means travelers who check two bags may find a lower fare on Delta compared with other carriers, but their cost for traveling could end up higher.
Various airlines have baggage charges that can add up fast. Pack a third bag on an international flight and Delta will tack on another $200 fee each way, for example. Overweight bags on a Delta international flight would each cost at least $300 extra round trip and oversized bags would each cost $350 extra round trip.
Even on domestic flights, "your $78 airplane ticket can be $600 or $700 in a New York minute just because you didn't pay attention" to fees for extra, overweight and oversized bags, said Tom Parsons, founder of Bestfares.com.
The fees enable airlines to win bookings from customers using travel Web sites to compare prices and choose the lowest fare, then collect more revenue when travelers arrive at the airport with extra bags or seek other services.
Bill Swelbar, a researcher at the International Center for Air Transportation at the Massachusetts Institute of Technology, said airlines have had to look for other revenue sources because fares alone don't cover the cost of travel.
"The airline seat is a commodity product," Swelbar said. Airlines believe they must offer the lowest fares "because so many decisions on travel are based on price and price alone."
AirTran Airways chief financial officer Arne Haak has said travelers will spend hours searching for fares online to save $8, then "come to the airport and spend $20 to buy a soda, a bag of chips, a candy bar and a magazine that they could have bought for half the price."
Parsons said "John Q. Traveler" seems much more concerned about finding the lowest base fare. "All the other incidentals they don't seem to be upset with," he said.
While most airlines already charge for checked bags on domestic flights, baggage rules have been more liberal for international travel, where longer trips may require more bags and fares often are already much higher.
"Now they're telling you you've also got to pay for bags," Parsons said. "I remember when they used to give you bags. Where's my old Pan Am bag?"
Delta, which reported a $794 million loss for the first quarter, said it took in more than $160 million from baggage fees in the quarter. It expects the new international second checked bag fee to generate about $100 million annually.
Chicago-based United Airlines said it takes in about $14 in ancillary revenues and fees per passenger.
One carrier - Southwest Airlines, which does not fly to Atlanta - has held back on charging many of the extra fees, and it promotes the difference.
But other discount airlines, including Spirit and Allegiant, have gone further than the big carriers, including a fee for bookings made online and charges for non-alcoholic beverages.
And US Airways is adding a fee on top of a fee. On July 9, the carrier plans to begin charging $5 for paying checked bag fees at the airport instead of online. US Airways also charges for international checked bags to and from Canada, Latin America and the Caribbean, but not to and from Europe and Asia.
A consumer's only defense at this point is careful research and adjusting plans to avoid fees.
Technology is in the works to make it easier for travelers to compare prices. The technology is being developed for reservations systems that airlines and travel agencies use to sell airline tickets.
Some travel Web sites also offer fee comparisons. TripAdvisor in February launched a flight search engine with a fees estimator that asks travelers how many bags they will check, whether they have elite frequent flier status - which can affect which fees apply - and if they will want food, drinks or entertainment in flight.
Other travel sites, including Orbitz, Expedia and Travelocity, offer charts that compare different airlines' fees. Another site, flyingfees.com, compares airline fees.
According to a TripAdvisor survey, 36 percent of respondents said they have been surprised by the cost of checked baggage fees at the airport.
"I thought there would be more backlash from the traveling public over the payment of fees than there has been," Swelbar said.
By Kelly Yamanouchi
The Atlanta Journal-Constitution
Sunday, May 10, 2009
Northwest history to be in Delta museum
Delta Air Lines can paint over the iconic red tails of Northwest Airlines' jets. It can outfit Northwest flight attendants with Delta uniforms. It can serve Delta food on Northwest planes.
But one thing Delta can't do is replace 80 years of Northwest history. Nor can it relieve the sense among many Northwest workers that "their" airline is no more.
Perhaps in recognition of those realities, the world's largest airline today is taking a step toward acknowledging Northwest's history with an exhibit at the museum at Delta's Atlanta headquarters.
"Red Tail Flying: Voices and Images of Northwest Airlines" opens to the public today at the Delta Air Transport Heritage Museum. The long-term exhibit includes models of a Northwest Boeing 747 and Boeing Stratocruiser, videos of Northwest commercials and artifacts such as dishes and flatware from in-flight meals. Delta also updated the merger history portion of its museum to include Northwest.
Airline workers often hold to the identity of their premerger carrier for years. Labor relations can be messy in an airline merger, particularly when a highly unionized carrier like Eagan, Minn.-based Northwest is acquired by a mostly nonunion one like Delta. Major labor representation issues involving flight attendants and ground workers have yet to be resolved.
Northwest employees "had a lot of pride" in their airline, said Mike Campbell, Delta's vice president of human resources and labor relations. The Northwest exhibit is an effort to honor the history of the airline, he said.
Dean Bakken, a Northwest retiree and volunteer at the Northwest Airlines History Centre in Bloomington, Minn., said, "There is sort of a loss in a sense. … You kind of hate to lose your own airline.
"I think I worked for Northwest at the best of times," said Bakken, who logged more than three decades there, from 1959 to 1993. In past decades, "they made money hand over fist," he said. "It's not like now."
Campbell said Northwest employees are "embracing the Delta culture," which he said focuses on "taking care of the people."
People who wish to visit the new Northwest exhibit should call ahead to be put on a security checklist for entrance into Delta's corporate campus. For more information, go to www.deltamuseum.org or call 404- 773-1219.
By Kelly Yamanouchi
The Atlanta Journal-Constitution
Tuesday, May 19, 2009
Featured Airplane: Boeing 707
If you are old enough to remember this month's featured airplane, you are old enough to remember the disaster films of the 1970's. "Airport", based on the Arthur Hailey novel was the first of this genre followed by movies like the "Poseidon Adventure", "The Towering Inferno" and the "surround-sound" extravaganza "Earthquake".
As much as "Airport" and these other movies were notable for their casts of stars, in "Airport" equal to top-billing was the Boeing 707. Having survived an explosion while over the Atlantic the focus of the movie became the safety of the passengers as the pilot and crew turned the damaged plane around to land. Having landed safely with a hole in its side, the George Kennedy character remarked, "The only thing the 707 can't do is fly itself".
 Air India 707-320B
Although it was not the first commercial jet in service, the 707 was among the first to be commercially successful, and is generally credited as ushering in the Jet Age. It established Boeing as one of the largest makers of passenger aircraft, and led to the later series of aircraft with "7x7" designations.
Development
The 707 was an outgrowth of the Boeing Model 367-80. The "Dash 80" took less than two years from project launch in 1952 to rollout on May 14, 1954. This was powered by the Pratt & Whitney JT3C engine, which was the civilian version of the J57 used on many military aircraft of the day, including the F-100 fighter and the B-52 bomber.
The prototype was conceived for both military and civilian use: the United States Air Force was the first customer for the design, using it as the KC-135 Stratotanker midair refueling platform. It was far from certain that the passenger 707 would be profitable. At the time, Boeing was making nearly all of its money from military contracts.
 Cockpit of a Boeing 707-123B
The first flight of the first production 707-120 took place on December 20, 1957, and FAA certification followed on September 18, 1958. A number of changes were incorporated into the production models from the prototype.
While the initial standard model was the 707-120 with JT3C engines, Qantas ordered a shorter body version called the 707-138 and Braniff ordered the higher-thrust version with Pratt & Whitney JT4A engines, the 707-220. The final major derivative was the 707-320 which featured an extended-span wing and JT4A engines, while the 707-420 was the same as the -320 but with Rolls-Royce Conway turbofan engines.
Eventually, the dominant engine for the Boeing 707 family was the Pratt & Whitney JT3D, a turbofan variant of the JT3C with lower fuel consumption as well as higher thrust. JT3D-engined 707s and 720s were denoted with a "B" suffix. While many 707-120Bs and 720Bs were conversions of existing JT3C-powered machines, 707-320Bs were only available as new-built aircraft as they had a stronger structure to support a maximum take-off weight increased by 19,000 lb, along with minor modifications to the wing. The 707-320B series enabled non-stop westbound flights from Europe to the US west coast.
The final 707 variant was the 707-320C, (C for "Convertible") which was fitted with a large fuselage door for cargo applications. This aircraft also had a significantly revised wing featuring three-section leading-edge flaps. This provided an additional improvement to takeoff and landing performance. 707-320Bs built after 1963 used the same wing as the -320C and were known as 707-320B Advanced aircraft.
 Spain Air Force Boeing 707
Traces of the 707 are still found in the 737, which uses a modified version of the 707's fuselage, as well as essentially the same external nose and cockpit configuration as the 707. These were also used on the previous Boeing 727, while the Boeing 757 also used the 707 fuselage cross-section.
Operational history
The first commercial orders for the 707 came on October 13, 1955, when Pan Am committed to 20 707s and 25 Douglas DC-8s, a dramatic increase in passenger capacity over its existing fleet of propeller aircraft. The competition between the 707 and DC-8 was fierce. Several major airlines committed only to the DC-8, as Douglas Aircraft was a more established maker of passenger aircraft at the time.
Pan Am was the first airline to operate the 707. The aircraft's first commercial flight was from New York to Paris on October 26, 1958 with a fuel stop in Gander, Newfoundland. American Airlines operated the first domestic 707 flight on January 25, 1959. Continental Airlines introduced its first two 707 aircraft into scheduled service three months later - the first U.S. carrier to employ the type widely in domestic service. Airlines which had only ordered the DC-8, such as United, Delta and Eastern, were left jetless for months until September and lost market share on transcontinental flights.
The 707 quickly became the most popular jetliner of its time. Its popularity led to rapid developments in airport terminals, runways, airline catering, baggage handling, reservations systems and other air transport infrastructure. The advent of the 707 also led to the upgrading of air traffic control systems to prevent interference with military jet operations.
As the 1960s drew to a close, the exponential growth in air travel led to the 707 being a victim of its own success. The 707 was now too small to handle the increased passenger densities on the routes for which it was designed. Boeing's answer to the problem was the first twin aisle airliner - the Boeing 747. The 707's first-generation engine technology was also rapidly becoming obsolete in the areas of noise and fuel economy.
 Retired SAAF Boeing 707-328C
Specifications
| |
720 (707-020) |
707-120B |
707-320B |
| Passengers: |
140 |
110 (2 class)
179 (1 class) |
147 (2 class)
202 (1 class) |
Maximum Takeoff
Weight (MTOW): |
222,000 lb
(100,800 kg) |
257,000 lb
(116,570 kg) |
333,600 lb
(151,320 kg) |
| Empty weight: |
103,145 lb
(46,785 kg) |
122,533 lb
(55,580 kg) |
146,400 lb
(66,406 kg) |
| Takeoff run at MTOW: |
8,300 ft (2,515 m) |
11,000 ft (3,330 m) |
10,840 ft (3,280 m) |
| Landing run: |
5,750 ft (1,740 m) |
6,200 ft (1,875 m) |
10,840 ft (3,280 m) |
| Operating range: |
3,680 NM (6,800 km) |
3,680 NM (6,820 km) |
3,735 NM (6,920 km) |
| Cruising speed: |
540 kn (999 km/h) |
540 kn (1000 km/h) |
525 kn (972 km/h) |
| Length: |
136 ft 2 in (41.25 m) |
144 ft 6 in (44.07 m) |
152 ft 11 in (46.61 m) |
| Wingspan: |
130 ft 10 in (39.90 m) |
145 ft 9 in (44.42 m) |
| Tail height: |
41 ft 7 in (12.65 m) |
42 ft 5 in (12.93 m) |
| Fuselage width: |
12 ft 4 in (3.76 m) |
12 ft 4 in (3.76 m) |
| Powerplants (4 x): |
PW JT3C-7:
12,000 lbf (53.3 kN) |
PW JT3D-1:
17,000 lbf (75.6 kN) |
PW JT3D-3:
18,000 lbf (80 kN)
PW JT3D-7:
19,000 lbf (84.4 kN) |
Data from Great Aircraft of the World and Quest for Performance
SAS takes lead on environment and aviation issues
On May 24-26, international business leaders, politicians and experts gathered together in Copenhagen for the World Business Summit on Climate Change. In cooperation with the International Air Transport Association (IATA) SAS hosted the Aviation Session, where top leaders from the industry discussed a number of recommendations to the politicians prior to the United Nations Climate Change Conference - COP 15 - in December.
SAS is the Official Airline and Greening Partner of the summit. All the participants who chose to fly with SAS to the conference will be compensated for their CO2 emission. The aim of the Aviation session is to make a statement with clear recommendations to the politicians.
"Our main hope is that the politicians in December can define a framework in which the international industry can be developed in a sustainable way. Politicians should encourage investments in new technology such as bio fuel in order to reduce the strain on the environment," said Mats Jansson, CEO, SAS Scandinavian Airlines.
SAS's ambition is to be amongst the most environment friendly airlines in Europe, and the principal target is to reduce CO2 emission by 20 percent in 2020 at the latest.
"It is a fact that aviation affects the climate. We neither can, nor want, to deny this fact, even though aviation is only responsible for 2-3 percent of global CO2 emission. We would like to take the lead in terms of reducing CO2 emission. We want our customers to be able to fly SAS with a clear conscience, confident that we are doing our utmost to minimize the impact of air travel on our climate," explained Jansson.
World Business Summit on Climate Change, Copenhagen
Tuesday, May 26, 2009
www.traveldailynews.com
Green sky thinking
For Continental Airlines, green is definitely the new black as the airline increases its use of biofuels.
Airlines are often seen as the villains in the climate change debate. Aviation is estimated to contribute around two percent of global greenhouse gas pollution although that is expected to rise, in part because of the rapid growth of low-cost airline.
Yet some of the world's leading airlines are taking climate change and their role in addressing it seriously. Continental Airlines, the world's fourth biggest airline by passenger traffic, has spent $12 billion since 1997 to acquire new aircraft and aviation support equipment. Over that period, these initiatives have helped the airline reduce its greenhouse gas emissions by 35 percent.
One of the most exciting initiatives through which airlines like Continental are looking at reducing their environmental impact is in the use of sustainable biofuels.
In January of this year, Continental Airlines became the first airline to power a commercial aircraft in North America using biofuel. It was also the first time that a two-engined aircraft anywhere in the world had been powered with one of these "green" fuels. In this ground-breaking trial, the carrier used a blend of 50% ordinary jet fuel and 50% biofuel derived from algae and jatropha plants. Despite the concern of some about the potential impact of some biofuels, these two sources do not impact food crops or water resources nor contribute to deforestation. Other airlines, including Virgin Atlantic, JAL and Air New Zealand have also tested biofuels.
It is not just through the use of innovative fuels that airlines are tackling their carbon footprint.
Some ideas mooted for doing this include using electric vehicles to move aircraft while taxiing and landing aircraft using something called the continuous descent approach, which can substantially reduce fuel burn and noise pollution.
One of the biggest challenges facing carriers is in renewing their aircraft fleets. Developing newer, cleaner aircraft takes a long time and, for an airline, buying a new plane is a long-term decision. When you realize that the Boeing 747 jumbo jet last year celebrated its 40th birthday when you realize just how long-term these decisions are.
Yet that is not to say that airlines and aircraft makers are not doing anything, Boeing's new 787 Dreamliner is also tackling environmental issues - it uses 20% less fuel than similar sized existing planes, producing fewer CO2 emissions. It will also travel at speeds similar to today's fastest wide bodies, Mach 0.85.
Over the next six years, Continental has plans to invest more than $11 billion more in new Boeing aircraft to further improve its fuel efficiency and reduce emissions.
Continental has also reduced nitrogen oxide emissions from ground equipment at the carrier's largest hub in Houston through switching to electric ground service equipment and other new technology.
Since 2007, the airline has also worked with the non-profit organization Sustainable Travel International to offer its passengers the opportunity to calculate their carbon footprint and purchase carbon offsets. Money raised through the scheme is invested in high-impact sustainable development projects, including reforestation, renewable energy and energy conservation.
Far from being seen as villains, it is perhaps time to reconsider the role of airlines in tackling climate change. They are taking the problem seriously and are doing so today and not putting it off until tomorrow. Tomorrow may be too late.
www.timesonline.co.uk
May 6, 2009
How Boeing Fights Climate Change
The efficiency of jets has increased by 70% over the past 50 years.
By Scott Carson, president and CEO of Boeing Commercial Airplanes.
Addressing climate change is a particularly difficult challenge for commercial aviation. While technologies like batteries work for cars, they don't work for airplanes that require powerful propulsion systems. The good news is that there are things we can do to significantly reduce the carbon footprint of commercial planes -- and we're well on our way.
At Boeing, we're tackling carbon emissions on three fronts.
First, we are working to make each new generation of airplane lighter and more fuel efficient. There's plenty of incentive to develop more efficient airplanes. Historically, fuel has been the airlines' second-biggest operating expense next to labor. Last year, with oil reaching $140 a barrel, fuel costs even outstripped labor costs, rising to 40% of total airline operating expenses. So airlines have demanded increased efficiency from airplane and engine manufacturers. And manufacturers have responded big time. Over the past 50 years, the efficiency of commercial jets has risen an astounding 70%. This means that carbon emissions per mile flown have dropped 70% -- all without a regulatory requirement for greenhouse gas emissions.
That said, we believe properly structured regulations could be useful. It's not often that an industry asks for additional regulation, but Boeing, GE and other airplane and engine manufacturers are convinced that a fuel-efficiency standard for new airplanes is an effective way to drive the development of fuel-saving technologies.
Specifically, we're advocating for an efficiency standard for new airplane designs. An efficiency standard would be straightforward and easier to implement than a standard for aircraft operators. And it would help ensure that we continue to see the kind of technological and environmental breakthroughs we pioneered with the 787. The International Civil Aviation Organization should define the new standard, just as it successfully established global standards for both airplane noise and oxides of nitrogen emissions.
While it's important to make airplanes more efficient, it's also critical that the system in which they fly is modernized. That's why our second major initiative is the work we're doing to improve air-traffic management.
Fortunately, the technologies needed to give controllers and pilots a more precise picture of weather conditions and airplane positions, and the networking technologies needed to instantaneously share that information, already exist. Precision information, commonly shared, safely enables such fuel-saving and emissions-reducing operational changes as continuous, low-power descents, more direct routing, closer spacing, and curved approaches to landing.
The challenge is getting the government to make the Federal Aviation Administration's plan for implementing these technologies, called NextGen, a priority. The government should commit long-term funding to ensure that it's completed as swiftly as possible.
Third, we have been testing various advanced, sustainable biofuels with the goal of finding renewable fuels for aviation that don't compete with food crops for land and water and that emit 50%-80% less carbon than petroleum. We have conducted test flights using mixtures of standard jet fuel and several different sustainable biofuels, among them fuels made from algae and camelina (a plant that produces seeds that aren't used for food). All performed extremely well in flight. What's more, we have demonstrated that these and other sustainable biofuels have a lower freeze point than petroleum -- a very important characteristic for aviation. They also can have higher energy content per gallon.
We're confident that sustainable biofuels will be price competitive with petroleum in the long-term. But government help -- consistent with international trade agreements -- is needed to get an aviation biofuels industry up and running. One proposal is that government could provide loans to refiners to make biofuels competitive when the price of petroleum is low and get repaid when the price of petroleum is high. We hope government officials will seriously consider such ideas because biofuels, in our view, are the ultimate answer to aviation's carbon-emissions challenge.
These three initiatives represent the best path forward for reducing aviation's carbon footprint. Establishing an international fuel-efficiency standard, modernizing air-traffic management, and commercializing an aviation biofuels industry would seriously address the issue of climate change. Our industry is eager to take on this challenge, but we need the government's help to make it happen.
The Wall Street Journal
May 23, 2009
www.wjs.com
If you have any questions or comments regarding the Air eNewsletter,
please contact Joseph Hoban from the AIT Air Department. |
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