I’m not sure if you’re one for the catchy fancy tunes and group singing, but there’s something about 1980′s airline commercials that make me wish I could travel back then. Air travel seemed much simpler back then – the meals, the free baggage, the very few electronic devices (cell-phones, iPods, iPads, etc) – and it’s interesting to step back and compare today’s airline industry to the 1980′s. Here are a select few of my favorite 1980′s airline commercials:
A colleague and former JetCheck writer, Andrew Young, recommended that I take a close look at Baltia Air Lines, a 21 year start-up airline based in New York City. According to a recent press release, the airline’s second airplane, a Boeing 747-200 (N706BL) formerly operated by Northwest Airlines and Kalitta Air, entered the Kalitta maintenance facility in Oscoda, Michigan on March 15, for required FAA maintenance. It appears as though both airplanes are just about ready, but how long will it be until the carrier begins operations?
For those unfamiliar with Baltia Air Lines, the carrier has a base of operations in Terminal 4 at New York’s JFK International Airport. According to the airline, they are, after JetBlue and Virgin America, the only new start-up United States Part 121 (heavy jet operator) airline in existence with Department of Transportation approval. Baltia aspires to become the leading airline on trans-Atlantic flights between major U.S. cities and capital cities of Eastern Europe. The airline “intends to provide high quality three-class passenger service, and reliable cargo and mail transportation. Baltia plans to begin their scheduled air transportation as the only U.S. airline, connecting directly, to two of the world’s most prominent cities – New York and St. Petersburg.”
It’s safe to say that Baltia has a well-defined target market. Their operations start-up date is unknown, but the airline still has yet to jump a major hurdle: FAA air carrier certification. Yet in the mean time, Baltia is prepping their 747. They’ve even launched a website and have made some progress in social media, but I cannot pull up their Twitter page anymore – what happened? However, Baltia posted a YouTube video, highlighting plane #1′s arrival at a maintenance facility in Malaysia:
There’s been a lot of debate on the air carrier’s choice of the Boeing 747-200, as it is far from new and probably not seen as congruent with the “high quality” brand they’re selling. However, one thing is for certain, the airplane sports attractive capital costs.
It’s always fun and interesting to watch and observe start-up airlines. While Baltia isn’t selling tickets yet, this recent press release suggests that the airline is nearing its first day of operations.
This past Thursday, Delta Air Lines confirmed their plans to purchase 9 used Boeing MD-90 aircraft from Japan Air Lines (JAL) to replace the airline’s aging DC-9. Deliveries are expected to begin in January 2012 following an interior refurbishment.
JAL MD-90 - Image by contri via Flickr
According to Bloomberg, Delta’s vice president of fleet strategy, Nat Pieper, wrote employees in an internal website, Delta will “continue to look for opportunities to acquire used MD-90s.” As of December, according to the airline’s annual report, Delta operated 19 MD-90s.
If you have followed Delta’s fleet acquisitions over the past few years, you’ll note that the carrier has developed a liking for the MD-90. In early 2010, Delta reached a deal with China Eastern Airlines for 9 MD-90s. The aircraft went into service during the months of February through July. There is also speculation (maybe confirmation?) that Delta has a lease agreement with SAS for a few MD-90 aircraft.
Is this a smart move? You bet! Delta’s CEO, Richard Anderson, cites the aircraft’s economics and lowly capital costs (compared to a Boeing 737-800) that make it a great option. Let’s compare, shall we?
Delta currently operates 34 DC-9-50s, which were inherited from Northwest Airlines, and has quite a few of the smaller DC-9 variants in storage. The DC-9-50s seat 125 people (16 in first, 109 in economy) and are powered by two Pratt & Whitney JT8D turbofans. Meanwhile, the 160 seat MD-90-30s sport two much more efficient IAE V2525-D5 engines.
JAL’s MD-90s were built throughout 1996-1998, while the aged DC-9-50s Delta currently operates were built between the mid-1970′s through the early 1980′s. That’s roughly a two decade gap in technology.
IAE V2500 Engines on a MD-90 - Image via Wikipedia
Yet let’s go back to the engines. Although the IAE V2500 series engines are available for the A320 series (Delta operates 319s and 320s), the carrier uses CFM56s on their A320 fleet and the IAE V2500 is only on Delta’s acquired MD-90s. Therefore, from a maintenance perspective (and A/Ps, please correct me if I’m wrong), it’s surprising that Delta would adopt this aircraft when no other airplane in their fleet utilizes IAE engines. While I’m not an expert on engines, I’m confident the benefits of this airplane still outweigh the cons to keeping the older DC-9s, as those 1960′s JT8Ds are fuel burners.
How about pricing? The Bloomberg article cites Douglas Runte, managing director at Piper Jaffray & Co. in New York, who follows aircraft transactions, for a price estimate. “MD-90s have appraised values of $5 million to $9 million, depending on vintage, and it is highly unlikely that Delta would be paying more than that range for the Japan Airlines aircraft.” As JAL is restructuring its fleet, there is a strong desire to improve efficiency (hence all the recent route cuts / aircraft retirements). I would agree with Mr. Runte that Delta got a good deal for JAL’s MD-90-30s.
If Delta is buying these used MD-90-30s for the aforementioned $5 million to $9 million, their getting quite a bargain for their buck considering what they’re paying Boeing for the 737-800. The 737-800 also seats 160 people, but costs 8 to 16 times more, depending on what Delta’s paying for the 737 and what they paid for the MD-90.
Overall, as I mentioned earlier, picking up MD-90s right and left is a great move for Delta. Sure, the Boeing 737-800 is newer and more efficient than the MD-90, yet the economics of the MD-90 can’t be too far off from the 737, given its equal seating and efficient IAE engines. It will be interesting to watch and see if Delta can happily take more MD-90s off other carriers hands in the future to continue growing their MD-90 fleet.
Just north of Seattle, WA on the northern tip of Lake Washington, you’ll probably spot quite a few seaplanes taking off and landing. This northern tip happens to be the base of one of the world’s largest and well-known seaplane operators, Kenmore Air.
Founded in 1946, Kenmore Air Harbor (the full name of the airline) traces its roots to three friends, Bob Munro, Reg Collins and Jack Mines, who founded the airline with a single airplane on that same tip of Lake Washington. The three founders, who remet after World War II, faced a variety of challenges in the beginning years, but believed that an integrity based business philosophy mixed with exceptional customer service would keep the customers coming back. Kenmore Air kept it simple: “do the right thing,” which remains the cornerstone of their business.
“Other than Jack’s ideas about a hotel we didn’t have much of a plan other than Reg and I would fix planes and Jack would give flying lessons. We just assumed it was going to work.” – Bob Munro
In those early years, Kenmore Air specialized in and dealt Seabee amphibian airplanes. By the 1950′s, the airline became an aircraft and parts dealer for Cessna and expanded their charter business with flights to a variety of hunting spots throughout the Northwest. Not long after, Kenmore expanded with a new hangar and office building. In 1963, Kenmore Air acquired their first de Havilland Beaver, which would become one of Kenmore’s workhorse airplanes.
During the next two decades, Kenmore significantly expanded through the acquisitions of Otter Air and Lake Union Air. To meet demand, Kenmore added several de Havilland Turbo Otters to the fleet.
Today, Kenmore Air currently has 25 aircraft in operations, 52 pilots on staff and more than 250 employees in peak season. The airline flies piston Beavers, turbine Otters and Cessna 208 Caravans. Their destinations map spreads throughout the northwest (Canada and U.S.), including various lakes, harbors, fjords, islands and land airports.
During my visit to Seattle this past summer, I had the opportunity to take a sightseeing tour of the city on Kenmore Air. Even though it was a sightseeing tour, I experienced a cancellation (due to weather) and experienced their top-notch customer service. I flew on a de Havilland Otter from Kenmore’s Lake Union base.
The idea of landing an airplane on water can be a bit frightening for some, but for others, including myself, it feels adventure-esque. I find that the landings feel smoother on water than landing on ground, but that can depend on your pilot. Yet, there is no need to worry about Kenmore Air’s pilots. In fact, I think you’ll find the airline boasts some of the best pilots in the industry.
If you happen to live or visit the Seattle area, Kenmore Air is the best way to see Seattle. If you’re an Alaska Airlines Mileage Plan member, you can earn miles on Kenmore Air flights. Additionally, Kenmore is a ticketing partner of Alaska’s, meaning that customers can book single-ticket itineraries between any of more than 90 Alaska Airlines cities throughout the United States, Canada and Mexico and Kenmore Air destinations in Washington and British Columbia.
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Photo credits: Images used under CC License via MichaelHays on Flickr
