Hello and welcome to our Monday Briefing for the week beginning 18 June 2018, summarising the main developments in air travel over the past week, and a look the week ahead.
BA Grounds 7 Boeing 787 Dreamliner Aircraft
BA has now grounded 7 of its 28 strong Boeing 787 Dreamliner fleet.
2 Boeing 787-8 aircraft have long been grounded. 5 Boeing 787-9 aircraft were grounded almost simultaneously a little over a week ago.
Rolls Royce also announced last week that checks may be required on “Package B” engines as well as “Package C” engines. BA has not made any public statements since the latest Rolls-Royce announcement. However, IAG CEO Willie Walsh has not hidden his dissatisfaction with Rolls-Royce and the latest announcement will not instil confidence.
Etihad Reviews Aircraft Orders
Etihad has announced a loss before exceptional items of USD$ 1.52 billion for 2017. This compares to a loss for USD$ 1.95 billion for 2016.
These headline figures are only for the airline’s core operations and do not include losses from exceptional items or investments. The group has of course been beset by its disastrous strategy of buying minority stakes in airlines, notably Air Berlin and Alitalia.
Etihad has already undertaken a number of network changes including the suspension of Dallas Fort Worth, Entebbe, Jaipur, San Francisco, Tehran, and Venice.
It is now reported to be in discussions with aircraft manufacturers to review its aircraft order book, which is substantial. Etihad has 21 Boeing 787-9, 30 Boeing 787-10, 25 Boeing 777X and 62 Airbus A350 wide body aircraft on order. Given recent network developments, it is likely that any new aircraft will only act as replacement for retiring aircraft. Therefore, it is implausible that a large number of these orders won’t be cancelled.
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