ARC NEWS
Thai Airways reactivates A330s and weighs A380 return to service
November 14, 2022
Thai Airways International is in process of returning to service three Airbus A330s previously earmarked for sale, to meet capacity needs, and is exploring the viability of reactivating some of its A380s. Chief commercial officer Korakot Chatasingha told media during the Assembly of Presidents of the Association of Asia Pacific Airlines event on 11 November that the airline had so far returned one of the three A330s. The flag carrier expects to return two more to operation in December-January, bringing its total in-service fleet to 66 aircraft, including 20 A320s operated by subsidiary Thai Smile. This timeline represents a slight delay from Thai's fourth-quarter target for the A330s, which Korakot links to a manpower shortage delaying maintenance. Korakot says capacity for 2023 "is very limited as the market is surging". The airline is therefore seeking to meet that demand by bringing back some aircraft it originally intended to sell. In Thai's current fleet of 44 aircraft, A350-900s and 777-300ERs constitute the two main types, numbering 12 and 17 respectively. The remainder of the fleet comprises six 787-8s, two 787-9s, four 777-200ERs and three A330-300s, including the one already returned to service. Korakot also indicates that Thai is looking at 777-200ERs as a back-up option for cargo. Additionally, Thai is also exploring the viability of returning to service its A380s, which it previously earmarked for sale, although any reactivation is unlikely to happen soon. "We are starting to [gather] details on the cost effectiveness of [operating the] A380s," Korakot says. Thai has six A380s in storage, two of which it owns and four of which it had been negotiating to return to lessors. Korakot says the airline is studying the feasibility of operating the two owned A380s. Thai's chairman of the plan administrators Piyasvasti Amranand indicated that the airline was looking at the A380s to serve popular long-haul destinations such as London, currently served with Boeing 777-300ERs, currently the largest aircraft in the fleet in terms of seat count. Without A380s, Piyasvasti says Thai's ability to increase the number of passengers on this route is constrained with the 777-300ERs, with cabin factor at "over 90%". He says any switch is "probably unlikely to be 2024". Additionally, in 2023 Thai is also exercising the option to lease aircraft to bolster fleet capacity, in accordance with its rehabilitation plan, which spells out yearly quotas for introduction of aircraft to the fleet between 2023 and 2025. Piyasvasti says the airline has signed leases for two A350s, to be delivered around the second quarter, and letter of intent for another two, for which it hopes to sign the contract "soon", and which will also be delivered in the same quarter. This will bring Thai's fleet to 70 aircraft, including 20 A320s operated by Thai Smile, by the middle of 2023. Thai "is negotiating with a number of lessors" for one more widebody to be delivered in the second half of 2023, and is open to any twin-aisle types, Piyasvasti indicates.


Embraer gains Chinese type certificate for E190-E2
November 11, 2022
The Civil Aviation Administration of China has granted its type certificate for the Embraer 190-E2, opening up the model's operation in the country. Embraer says an CAAC certification effort is additionally under way for the 146-seat E195-E2 and that its approval "will follow shortly". CAAC-s certification of the 114-seat E190-E2, which entered service in 2018, was disclosed by the Brazilian airframer during the ongoing Zhuhai air show. Embraer's commercial aviation chief executive Arjan Meijer describes the approval as "great news" for the company and prospective customers in China. "Certification paves the way for significant E190-E2 business opportunities in China," he states, adding that "one billion people living in China's second and third tier cities have never taken a flight". Meijer acknowledges says that the E190/195-E2 will provide "complementary capacity" to indigenous programmes such as the Comac ARJ21 and C919. The second E-Jet generation will "help to accelerate implementation of China's essential air service programme to connect more secondary and tertiary cities", he argues. E195s are registered in China. Of these, 32 E190s and seven E195s are listed in storage. Operators are Tianjin Airlines (52 aircraft including 31 in storage), GX Airlines (17 E190s including six in storage) and Colorful Guizhou Airlines (nine E190s including a stored unit), Hebei Airlines (six E190s) and Urumqi Air (one E190 in storage). Hebei Airlines' fleet previously included five ERJ-145s that have since been retired.


​Emirates swings to $1.2bn first-half profit
November 11, 2022
Dubai-based Emirates Group has posted a bumper first half after pent-up demand bolstered passenger revenues and capacity was ramped up sharply. Revenues across the group, which includes Emirates Airline and ground-based services company Dnata, more than doubled to $13.7 billion in the six months to end-September. The group made a profit of $1.2 billion, reversing a loss of $1.6 billion in the same period of 2021. Emirates says the performance demonstrates its "ability to meet strong passenger demand across regions with capacity ramp-up and high-quality products". Through the period, the company focused on restoring passenger services through its Dubai hub, boosting overall capacity growth 40% but also achieving a load factor of 78.5%, compared with 47.9% a year earlier. In total, the group carried 20 million passengers in the period, an increase of 228%. Newly launched premium-economy cabins were "booked out" to London, Paris and Sydney, ahead of a launch on five further routes before year-end. Emirates Group chief executive, Ahmed bin Saeed Al Maktoum attributes the result to "forward planning, agile business response, and the efforts of our talented and committed workforce. Across the group, our operations recovery accelerated as more countries eased and removed travel restrictions." He adds that the group's short-term focus is on restoring operations to pre-pandemic levels and stepping up recruitment in the expectation of growing demand in the second half. "However, the horizon is not without headwinds, and we are keeping a close watch on inflationary costs and other macro challenges such as the strong US dollar and the fiscal policies of major markets." Costs increased 73% on the back of fuel spending which more than tripled compared to last year. In total, fuel accounted for 38% of operating costs, "one of the highest ratios ever, compared to 20% in the first six months of last year".


LOG ON

CONTACT
SGS Aviation Compliance
ARC Administrator
SGS South Africa (Pty) Ltd
54 Maxwell Drive
Woodmead North Office Park
Woodmead
2191
South Africa

Office:   +27 11 100 9100
Direct:   +27 11 100 9108
Email Us

OFFICE DIRECTORY
Find SGS offices and labs around the world.
The ARC is a mobile friendly website.