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Delta parts with ACTS

Some time ago we wrote about Air Canada Technical Services (ACTS) being real late with its work on Delta's planes. Today Delta moved its business elsewhere. MRO work is now globally competitive and value for money is the keenest driver for airlines. So while ACTS was close by, and therefore cheaper to fly to, but its output was not a value proposition.

Delta parts with ACTS

Some time ago we wrote about Air Canada Technical Services (ACTS) being real late with its work on Delta's planes. Today Delta moved its business elsewhere. MRO work is now globally competitive and value for money is the keenest driver for airlines. So while ACTS was close by, and therefore cheaper to fly to, but its output was not a value proposition.

US Airways, China and A340s

In something of a surprise announcement, US Airways said it plans to fly to China if it gets permission. This is, to say the least, a long shot. But why not throw its line in anyway? The first reaction from everyone is that its A330s could not reach China from Philly, a route of some 7,400 miles.

Now a scheduling issue occurs. What comes first – permission to fly there or the Air Canada A340s? Also, the exact model A340 is clearly of interest. Air Canada has a number of A340-300s on lease. But it owns two A340-500s and these planes can reach just about anywhere. Only the Boeing 777LR flies further.

Unfortunately the A340-500 has something of a spotty image among airlines. Its legs may be long but its capacity is impacted over long ranges. It should be able to fly over 300 people 8,400 miles. Except it does not really do this – Singapore Airlines flies under 200 people on its planes to the US. Thai has announced it will quit flying the planes to the US because of high fuel burn. Singapore Airline can charge a premium for its seats and we suspect US Airways will not be able to do this. In fact, it is likely to be the low price leader in the China market – making the A340-500 a potentially financially inefficient plane.

Let us assume (not unreasonably) that US Airways cannot compete against the likes of American and Delta for China. Where can US Airways fly these A340s then? Despite the common cockpit, the A340 is quite a lot more airplane than the A330. A small sub-fleet is not easy to integrate. Yes, US Airways wants to a be a big overseas airline – but which markets beckon?

Just when at first glance things seem a bit bleak, note that US Airways has two aces in the hole that most people forget about. Those are Las Vegas and Phoenix. If you think Philadelphia has money to throw at a China route, then imagine what Las Vegas can offer. We think a Las Vegas-Shanghai flight would be sold out every trip. As evidence that China is fast approaching ex-Communist status, we offer this week's China-inspired global stock market meltdown. The Chinese are inveterate gamblers and growing richer at fabulous rates. Las Vegas is irresistible to them we suggest.

So we think US Airways acquisition of long haul planes is a very good idea. If not China, the whole remaining huge Pacific market is open to them out of their western hubs. In fact its a surprise it has taken them this long to embark on such a strategy.

US Airways, China and A340s

In something of a surprise announcement, US Airways said it plans to fly to China if it gets permission. This is, to say the least, a long shot. But why not throw its line in anyway? The first reaction from everyone is that its A330s could not reach China from Philly, a route of some 7,400 miles.

Now a scheduling issue occurs. What comes first – permission to fly there or the Air Canada A340s? Also, the exact model A340 is clearly of interest. Air Canada has a number of A340-300s on lease. But it owns two A340-500s and these planes can reach just about anywhere. Only the Boeing 777LR flies further.

Unfortunately the A340-500 has something of a spotty image among airlines. Its legs may be long but its capacity is impacted over long ranges. It should be able to fly over 300 people 8,400 miles. Except it does not really do this – Singapore Airlines flies under 200 people on its planes to the US. Thai has announced it will quit flying the planes to the US because of high fuel burn. Singapore Airline can charge a premium for its seats and we suspect US Airways will not be able to do this. In fact, it is likely to be the low price leader in the China market – making the A340-500 a potentially financially inefficient plane.

Let us assume (not unreasonably) that US Airways cannot compete against the likes of American and Delta for China. Where can US Airways fly these A340s then? Despite the common cockpit, the A340 is quite a lot more airplane than the A330. A small sub-fleet is not easy to integrate. Yes, US Airways wants to a be a big overseas airline – but which markets beckon?

Just when at first glance things seem a bit bleak, note that US Airways has two aces in the hole that most people forget about. Those are Las Vegas and Phoenix. If you think Philadelphia has money to throw at a China route, then imagine what Las Vegas can offer. We think a Las Vegas-Shanghai flight would be sold out every trip. As evidence that China is fast approaching ex-Communist status, we offer this week's China-inspired global stock market meltdown. The Chinese are inveterate gamblers and growing richer at fabulous rates. Las Vegas is irresistible to them we suggest.

So we think US Airways acquisition of long haul planes is a very good idea. If not China, the whole remaining huge Pacific market is open to them out of their western hubs. In fact its a surprise it has taken them this long to embark on such a strategy.