Tuesday, September 9, 2014

The A380 Goes UP Against Air New Zealand's 787

Down under as in way down under a classic airline battle is emerging with the Tasman- New Zealand routes. Emirates places its A380 in the middle if the air war with Air New Zealand , Australian Jetstar and other alliances.

From: Sydney Morning Herald;  

"Emirates flies three A380 superjumbos each day between Australia's east coast and Auckland, each of which can seat 489 passengers." 

It quoted Emirates having only a 56% occupancy rate for these flights. ooops! That is  only 273 passengers on average for the big behemoth.

"The latest government traffic statistics show weak passenger loads on flights between Australia and New Zealand. Qantas filled 61 per cent of its seats on the route in June, Emirates 56 per cent, Jetstar 72 per cent, Virgin 74 per cent and Air New Zealand 78 per cent."

The 787-9 will complete tipping the trade balance in the region, against the A380 and chase it off. I don't even need a crystal ball to see that coming. Jet Stars seats 300, a Qantas Subsidiary. New Zealand 787-9 Seats about 300. Air fares are dropping to record lows as the 787's can afford to drop airfares  with its efficiency of almost 80% percent loads. The A-380 will need to go elsewhere to make even an Australian Dollar.

"Virgin also plans to introduce a business-class service on all trans-Tasman routes from early next year. Air New Zealand offers business-class on its twin-aisle Boeing 777 aircraft which fly between Australia and New Zealand but not its smaller A320 planes. 
Air New Zealand's stretched version of the Dreamliner – the 787-9 – includes business and premium classes.
The trans-Tasman market has become a two-way fight between (Qantas-Emirates) and (Virgin and its largest shareholder, Air New Zealand). Between them, the alliance groups carry about 97 per cent of passenger traffic between Australia and New Zealand."
Hey isn't Virgin getting some 787's. Could this be the beginning of a A-380 implosion? The "I just want to get there crowd" is demonstrating who may win the war in the long run. Two choices are before the passenger, get on the Big Beast and go Terminal hopping, or go where you want the first time with a cheaper fare on a 787. By now one can see the simple strategy of either eggs in one basket, or custom travel on an 787. Markets continue to evolve where airplane capability does not change, therefore a sound strategy is to look for the most flexible aircraft in any market, which happens to the family of 787, in my humble opinion.