2020: A Year Unlike Any Other for Aviation

Wow! It’s been more than a year since I’ve posted on here.

Obviously, a lot has happened in the last year. The COVID-19 pandemic has placed untold strain on virtually everyone throughout the world. Public health crises place a disproportionate burden on lower-income populations — and I think we need far better solutions to help these people — but I believe the pandemic has been “a certain degree of hard” for everyone. I look forward to the continued emergence of the vaccines, and I can’t wait to be back in the sky hopefully in 2021.

One positive development that came partly as a result of COVID was my opportunity to learn Python, which has enabled me to develop my professional data and analytics skills. I’m already having a lot of fun tinkering with the FlightAware API, among others, and I’ve been able to simplify updating some of my flight spreadsheets — both with Python. I am eager to continue to evolve this new passion and see where it takes me, personally and professionally.

So what happened with aviation?

On a more reverent note, it’s clear that COVID has caused so much pain and suffering and absolutely wreaked havoc throughout the world. Amidst all of the economic turmoil it has caused, however, one of the most affected industries worldwide has been aviation, with passenger volumes down exponentially year-over-year.

With historic declines throughout the airline industry, it might surprise you to know that, conversely, cargo transportation has been up, as the delivery of PPE throughout the world has certainly provided volume on strictly-freight flights. I was fortunate enough to get to see the Cargolux Boeing 747-400F at Bangor in early May, and those up north got to see the Antonov AN-225 — the world’s largest aircraft — in July. 3315aviation wrote up the linked pair of nice blog posts on each of these developments, while I took the below image…didn’t think it was terrible for an iPhone.

Cargolux 7783 arriving from Luxembourg in May 2020.

The Jumbo retires

Perhaps the most unfortunate thing for me in the aviation industry was the hurried retirement of the 747-400, particularly British Airways’ decision to retire its fleet. The UK flag carrier had the largest 747 passenger fleet throughout the world, and still planned to keep its fleet of 20+ in service through 2024. That said, when the pandemic was first declared, all of its jumbos were in storage within about a month, so it was no surprise when the airline declared its intent to retire its 747 fleet in mid-July.

As it was, the last BA 747 movement was on December 11, a flight from Cardiff to St. Athan, its Welsh neighbor. From a spotter’s perspective, it was nice to have a few months in which we were able to bid farewell one of BA’s most iconic aircraft. The best result would have been to have them remain in service, of course, but you take what you can get — a point underscored by the nature of the last year.

I was fortunate enough to have 3 flights on BA 747s, once flying Boston to London Heathrow and twice the reverse. Two of those flights were on G-BYGD, pictured below, while the other was G-CIVF. I’ve had the opportunity to fly on a number of different widebody aircraft — I guess I spent my early 20s catching up for any perceived lost time, given that I didn’t travel a ton in my youth — but the BA 747 flights are hands-down my favorite, as it has always been my favorite civilian aircraft. The Union Jack on the tail and the iconic Speedmarque was instantly recognizable, and given that the plane brought air travel to the masses, it will not be forgotten.

View from G-BYGD aboard BA203 flying LHR-BOS, April 2017.

A long climb ahead

Aviation faces significant challenges on the road back to normalcy. That said, I am hopeful that 2021 brings some improvement.

It’s funny — I used to think frequently about traveling: where I wanted to go next; where I thought I’d like to go back to; and what kind of aircraft I’d like to take. Since I’ve obviously not been traveling — I crossed into New Hamsphire for a day, and took a 400-mile road trip up the Coast of Maine in July, I haven’t really had much impetus to think about it.

With the impending arrivals of vaccines and the potential for a semblance of normality next summer, at least in terms of (hopefully) lower transmission and positivity rates, it does raise a prospect that I haven’t entertained for a while. I remain optimistic that I’ll be able to move about somewhat in 2021, and I hope you all are able to, as well.

Joint Ventures and More: American Airlines to launch “new” BOS-LHR service in Spring 2020

Earlier this week, American Airlines announced its intention to launch “new” service between Boston Logan (BOS) and London Heathrow (LHR) in Spring 2020 with Boeing 777-200ER aircraft. Yet while “American metal” (that’s informal aviation speak for “planes with American Airlines branding”) has not been on BOS-LHR since 2013, American has been making money on the route this whole time. How does this work?

The answer is that American has a joint venture with its oneworld partner, British Airways, along with fellow oneworld airlines Finnair and Iberia. There’s a lot to unpack, here, but it’s important for travelers to know what joint ventures are and what it means for the traveling experience.

What is a joint venture?

A joint venture is an agreement where two or more businesses share resources and profits while maintaining their unique brand identities. It should not be confused with a “codeshare” agreement often found between airlines in a given alliance (such as oneworld, SkyTeam, and Star) which enables passengers to book a single trip itinerary on multiple airlines. This article from One Mile at a Time humorously compares codeshares to dating and joint ventures to marriage.

From 2014 to 2019, BA has carried out all oneworld flying on BOS-LHR, using a combination of Boeing 747s, 777s, and 787s, as well as the Airbus A380. Delta Air Lines and Virgin Atlantic Airways also operate one flight per day each on that route, and they, too, have a joint venture (which has been expanded to include Air France and KLM).

The shift from flying combined AA and BA metal to flying solely BA metal was multi-faceted, but likely came down to American’s decision to consolidate its 777 aircraft to major hubs including Chicago O’Hare, Dallas-Fort Worth, Los Angeles, Miami, and New York JFK. As such, BA started flying larger aircraft — switching from mostly 777s with a few 747s mixed in to more 747s and A380s with 777s and 787s plugging the gaps — on BOS-LHR. To underline this point, while I flew on the BA 777 back in 2004 — when AA metal was also on the route — all of my travels with them since have been on the 747 and A380.

Why do airlines enter into joint ventures?

Joint ventures are not unique to the airline world, of course, but there are a number of reasons that airlines find it beneficial.

For one, airlines — at least BA — state that it allows them to offer better fares (although, as One Mile at a Time points out, it can, at least in theory, reduce competition and raise fares over time).

Second, it provides travelers with more options. While not the case in Boston, people flying from places like New York or Los Angeles to London can make a single reservation flying over on BA and back on AA, or vice-versa. If each airline operates three flights per day between a given destination, and there’s a joint venture in effect, then customers of both AA and BA have twice the options that they did before.

Third, joint ventures enable airlines to better utilize their resources while providing more profit opportunity. For example, if American needs to send its 777s to operate flights from its hubs (such as New York or LA) and BA has to pick up the slack, American can still make some money on the route. The inverse is also true — if BA needs to move a 777 from, say, JFK-LHR to add an additional flight between LHR and Beijing, then American can pick up the slack and BA can still earn money.

Why has American retained its metal on BOS-LHR

It’s impossible to know exactly why, but it appears that there are a number of reasons.

First, though, I have to explain what “slots” are. Major airports which are often operating near capacity — such as London Heathrow — often allocate “slots” to airlines. A slot is simply the authorization that an airline can operate into or out of an airport at a given time. This is done mainly to ensure that the airport has a lid on the number of planes that are flying in to and out of an airport during a given time. They are finite, and, thus, cost the carrier a lot of money. You can learn more about slots in this great article from The Points Guy.

With that in mind, American didn’t just take one of the existing slots that itself and British Airways owned. Instead of swapping out AA “metal” for a BA plane on one of its four existing slots, it went and procured an entirely new slot. Frivolous business decisions are nothing new, but I have a hard time believing that American would have spent the money if it didn’t see legitimate opportunity.

Now, why did American do so? One hypothesis is that American has seriously let itself go in Boston, as jetBlue and Delta are by far the dominant carriers at the airport. This is a far cry from a decade ago, when AA was alive and kicking in BOS, so to speak.

Moreover, with jetBlue set to launch transatlantic service in 2021 and Delta beefing up its existing transatlantic efforts to the UK from Boston — the carrier will retain Heathrow service while adding new routes to London Gatwick and Manchester — American may feel the need to respond in kind. In other words, even if it knows that adding one flight won’t make a significant difference in its overall Boston market share, putting a 777 back on Boston’s flagship European route is a good way to make a statement. And, at this point, it needs to make a statement.

What does this all mean for me?

In all honestly, probably not much.

There is always the chance that fares increase with joint ventures, as implementation of profit sharing mechanism reduces competition. However, this joint venture has existed for almost a decade, so it’s unlikely that flying an AA plane on the route is going to have a material impact on fares. If anything, the increase in supply (in this case, the number of flights) is likely to drive down prices — although given airline dependence on things like fuel prices, there’s always the chance that prices increase.

In general, there’s not much reason to think that this is going to materially impact fares on BOS-LHR. Still, it’s interesting to see American announcing this service like a “new” route — even though it has been making money on it all the while.

End of an Era: Airbus announces decision to cease A380 production in 2021

To little surprise throughout the aviation industry, Airbus announced its plans to end A380 production in 2021.

Last winter, with the model on life support, Airbus made an 11th-hour sale to Emirates — the A380’s foremost customer, with 109 Superjumbos in its fleet — that kept the production line alive. However, with Emirates scaling back its most recent order, and few orders from elsewhere, there had been rumors that the end was near. Airbus made the decision that it was no longer sustainable to produce the aircraft beyond the fulfillment of this order, which will be completed in 2021.

Given that the A380 will continue to operate likely into the 2030s and possibly even the 2040s, its not as if its demise will begin in 2021. However, it is evident that what was once seen as a potentially revolutionary aircraft — and it is, in a number of ways — will likely deliver far less than hoped, no pun intended.

Opposing Endgames

In order to understand why Airbus made this major decision, it’s important to understand how it got to this point.

When the A380 program was announced in the 1990s, Airbus’ goal was to produce an aircraft larger than the 747 that also boasted lower operating costs.

Industry experts figured that the launch of this program would make Boeing improve the 747-400 which — while the best-selling version of the 747 — was launched in the 1980s, meaning that it didn’t have the latest and best technology. Boeing’s answer was the 747-8, a newer, sleeker version of the 747 with, among other things, a longer fuselage, more efficient engines, and raked wingtips. While the freight version, the 747-8F, continues to be successful, the passenger version, dubbed the 747-8i (“i” for intercontinental), was not well-received by airlines, which were starting to move towards smaller, more fuel-efficient aircraft. Even an efficient quad jet is, generally speaking, less efficient than a twin jet.

Some derided Boeing’s seemingly half-hearted attempt at answering to the A380. Others claimed that Boeing’s lack of 747-8 passenger jet sales versus its projections made it a failure. A third angle: Boeing’s focus was elsewhere, producing an aircraft that would enable airlines to operate long-haul routes. This project became the 787 Dreamliner, a revolutionary aircraft with mood lighting, improved cabin comfort, and incredible fuel efficiency.

Airbus’ counter play to the 787, meanwhile, became the A350 (Airbus initially sought to build a longer-range version of the A330-200, called the A330-200Lite, but airlines balked, so it launched a new program). And while Airbus has been successful with the A350, it still lags far behind 787 in orders and deliveries (though it is worth noting that the latter was launched several years earlier). Boeing seems to be winning the long-haul war, at least for now.

Opposing Strategies: Hub-and-Spoke vs. Point-to-Point

In short, the two manufacturers possess different strategies. Airbus went all-in on the “hub and spoke” model, while Boeing focused on “point-to-point” routes.

Seeing increasing congestion at many of the world’s largest airports, Airbus figured that increasing capacity would free up “slots” to operate other aircraft. For example, British Airways could go from operating three daily 747s to two daily A380s on its London Heathrow to Los Angeles service. This would free up a “slot” to start a new route to another location.

Moreover, Airbus’ conviction that airlines would continue to use the “hub-and-spoke” model — meaning that passengers generally use large hubs to get from place to place — made it focus on “trunk” (extremely high-demand) routes with the development of the A380. For example, someone traveling from, say, Memphis, Tennessee, to Chengdu, China, would have to fly from Memphis to New York JFK, New York JFK to Beijing (the trunk route), and Beijing to Chengdu. This is a hypothetical example, of course, but it illustrates that, in this model, passengers — particularly those traveling between smaller cities — are routed through larger population centers en route to their destination.

Boeing, meanwhile, bet on airlines wanting to operate more “point-to-point” routes — meaning that the passenger above would be able to fly direct from Memphis to Chengdu. Up until the 787 was introduced, the only planes with the range to fly that far were aircraft like Airbus’ A340 and Boeing’s 747 and 777. The 767, which has similar capacity to the 787, doesn’t have anywhere near the range to operate these long routes, and there aren’t enough people traveling between Memphis and Chengdu to fill a 777 or 747. The solution: a smaller aircraft with the same range capabilities as its larger counterparts and improved fuel efficiency.

This doesn’t mean that routes between every city pair are now viable — I hardly expect the 787 to allow Hartford, Connecticut, to become connected with Osaka, Japan, for example. However, it extends the possibilities far beyond what they once were.

Strategic Effectiveness

On the surface, Airbus’ strategy appears reasonable. After all, larger aircraft allow airlines to operate fewer flights. Not only does this decrease per-passenger labor costs — more seats per plane means less flights, and it also means less ground staff, pilots, and (to an extent) cabin crew required for the same number of passengers — but it also frees up “slots” at busy, capacity-constrained airports, enabling carriers to operate more routes. And, in terms of profitability, it’s likely that Airbus expected these long thin routes to be money-losers.

However, airlines are eager to cater to customer demand — and customers demand options. As such, in the airline world, frequency — not efficiency — is king. With this in mind, and with a number of new routes being opened thanks to the 787, Boeing seems to have picked the preferable strategy as far as long-haul flying goes. And while American carriers are the biggest betters on frequency over size — no doubt driven by many Americans’ expectation of being able to get wherever, whenever, and with as few stops possible — it is particularly telling that no carrier from North America, South America, or Africa placed an A380 order; the 747-400, meanwhile, has served carriers of all six of the Earth’s inhabited continents.

Another issue: the A380 was too big for most airports’ existing infrastructures. In fact, one of the likely reasons that British Airways doesn’t fly the A380 from London Heathrow to New York JFK — in addition to its obsession with frequency on its flagship route — is that Terminal 7 (BA’s terminal at JFK) — does not have “A380-capable gates.” Most, if not all airports regularly-serviced by the A380, have had to update their taxiways and gate areas to welcome the behemoth.

My Own Thoughts

Initially, I was not a huge fan of the A380. Admittedly, the reasons had little to do with the function of the aircraft, and much more to do with my own biases.

In my mind, its aesthetics left a lot to be desired, leading to my dubbing it the “Whalebus,” which I still use mainly because I think it’s funny. The massive wings provide superior lift, but they also appeared too large to be natural. For reference, the A380’s length is 239 feet, its wingspan is 261 feet, its wing area is 9,100 square feet, and its wing sweep (the angle at which the wings are attached to the fuselage) is 33.5 degrees, giving it a rather “blocky” appearance. The 747-400, meanwhile, measures 231 feet in length, has a wing area of 5,650 square feet, a wingspan of 211.5 feet, and a wing sweep of 37.5 degrees. All told, particularly with its two full decks, I thought the A380 looked like a whale. Looking at the aircraft, I felt that it lacked character, and I didn’t think its comfort could counterbalance its aesthetics shortcomings.

Additionally, I wasn’t fond of the 747 being usurped as the largest passenger aircraft. In fact, the first commercial plane I became aware of was the Boeing 747-400: my “first (aviation) love,” as one might say. And while I have nothing against Airbus aircraft — I counted the A330 among my favorites at the time — I wasn’t eager to have Airbus eating Boeing’s lunch.

What changed my opinion? Two flights on the A380 raised its esteem.

My first A380 flight, a China Southern Airlines trip from Beijing to Guangzhou, was a memorable experience. I was impressed by how quiet the plane was — the spool up and takeoff thrust levels were barely audible from where I was seated at the back of the upper deck. I also appreciated the space between the window seat and the window itself due to the curvature of the fuselage. This allows for an extra storage cabin — too small for a roll-aboard, but large enough for a backpack. The in-flight entertainment (IFE) wasn’t half-bad, either, and I think countless rounds of Tetris made the two-and-a-half hour trip go by quickly.

The second was a British Airways flight from Boston to London Heathrow. Again, I was seated in an upper deck window seat, and, again, the experience was positive: a quiet, comfortable flight, excellent IFE, and plenty of space. I still had more fun flying on the 747 for the return leg, but that was largely due to sentimental reasons — the A380’s comfort and modernity stood out once again.

Is it too late to fly on an A380?

Absolutely not!

For all of its issues with the aircraft, Emirates will continue to operating the A380 for the foreseeable future. Moreover, the A380 remains in high esteem within carriers like British Airways and Lufthansa, and neither have plans to retire the A380s from their fleets anytime soon.

Based on my own experiences, I highly recommend the A380 if it’s an option. You can find a full list of A380 destinations worldwide here.

The Fallout

Predictably, both Airbus and Boeing are trying to spin this story to their respective advantages.

Boeing backers will point out the comparative failure of the A380 versus its flagship 747. They will state that the 747’s 1,500+ deliveries cement its legacy as the premier four-engine wide body. Airbus, meanwhile, will produce a maximum of 281 A380s when the program goes off line — less than 20% of the total 747 deliveries Boeing has made to date. And while Boeing’s 747-8i flopped compared to its passenger predecessors, Boeing is doing well with the 747-8F, while Airbus failed to deliver a single A380 freighter after FedEx and UPS cancelled their orders.

Airbus backers, meanwhile, will claim that Emirates’ decision to convert its remaining A380 orders to A330neos and A350s — and, as a result, stop going forward with its tentative Boeing 787-10 order — is an Airbus win. This is not unexpected, though: when airlines go to a manufacturer to cancel an order for a particular aircraft, they generally either convert the current order to other aircraft or have to pay significant cancellation fees. It is understandable that Emirates would choose the former.

And, of course, there are some positive aspects for Airbus, including the belief that this will help it in pending litigation before the World Trade Organization (WTO).

I recognize that I am biased to Boeing in this situation, but I can’t see the Airbus spin gaining much traction. Merited or not, I feel that the multi-faceted claims of “failure” — the lack of orders, the airport infrastructure difficulties, and the Rolls-Royce engine issues — are much more likely to stick.

Moreover, Airbus sunk tens of billions of dollars into researching, developing, and manufacturing these aircraft. As far as the A380 program is concerned, it seems likely that the manufacturer will have lost a significant sum of money when all is said and done, even if the A350’s financial prospects appear much better than the aircraft it replaces as Airbus’ flagship.

It’s a shame that it had to end this way. However, instead of a simultaneous double-whammy of production cancellation and withdrawal from fleets, passengers still have ample time to try an aircraft — even if said to be “more loved by passengers than operators” — that, for better or worse, will leave an indelible mark on aviation history.