Not many people are talking about what is going on. Boeing told me via email, “Nothing new to report. Same status as Friday,” which means, “We have unresolved issues between ourselves and Cargolux. We are working with our customer to determine a date for delivery.” Luckily for us, some journalists have received “insider” information that puts some light on what is going on between Boeing and Cargolux.
At the beginning of this controversy, some thought this might have something to do with the Boeing 747-8F not living up to performance expectations. It appears that performance issues might have something to do with this, but it might be more politically motivated.
Scott Hamilton, with Flightglobal, is reporting that Qatar Airways, who recently purchased a 35% stake in Cargolux, is requiring additional compensation for delays to their Boeing 787 Dreamliners. Previously Qatar and Boeing had an agreement on that compensation, but it appears that Qatar might be looking for a better deal. According to Hamilton’s sources, “Qatar’s chief executive Akbar Al-Baker views the compensation for Cargolux as setting a benchmark for the sum due for the delays to Qatar’s 787s.”
Hamilton is also reporting that that another, unnamed, Boeing 747-8F customer is looking for changes in their contracts. Originally they were slated to take delivery of the first test aircraft (presumably at a lower price), but now are wanting aircraft that will not require re-working after they take delivery.
It seems unlikely that this dispute would only revolve around the Boeing 747-8’s performance issues, since Boeing has been forthcoming about the aircraft’s additional weight for quite some time. In an email to the Puget Sound Business Journal Boeing stated, “It’s misleading to say we missed our specifications. After we set our original specification, we completely redesigned the wing, which is significantly heavier, but more than makes up for that in increased aerodynamic efficiency and lower fuel burn.’
In a press release, issued by Cargolux, they confirmed that they are working with Boeing to resolve contract issues, but are ready to move forward with leasing additional aircraft if needed. “In the event that the issues cannot be resolved in a timely manner, Cargolux will source alternative capacity to fully meet customer demand and expectations ahead of the traditional high season.”
Jon Ostrower on Flightglobal is reporting that delivery of Cargolux’s two 747-8Fs during the week of September 19th-24th is, “highly unlikely.” It doesn’t seem anyone (even Boeing and Cargolux) are sure when the aircraft might be delivered.
Yesterday, Brandon Farris caught a Cargolux Boeing 747-400 landing at Seattle-Tacoma International Airport (SEA). It is not unusual to see Cargolux aircraft at SEA, but the timing was a bit off from when they usually fly in. This particular aircraft runs between Mexico (MEX), Atlanta (ATL), New York (JFK), Houston (IAH), and Luxembourg (LUX), but not Seattle. I assume that this 747-400 picked up cargo at SEA that the first Cargolux Boeing 747-8F was supposed to deliver to Luxembourg (where Cargolux is head quartered).
At first, it appeared that Boeing might come off looking like the bad one in this conflict, but if the rumors of Qatar Airways strong arming Boeing into a better deal for the 787s at the expense of Cargolux not receiving their 747-8Fs, then Boeing might not coming off looking so poorly.
I will be sure to keep you all updated as new information surfaces.
UPDATE 1:
Guy Norris, with Aviation Week, goes into detail on what the Boeing 747-8F is lacking as far as performance (thanks @mtrumpbour for pointing this out). He states that there is a 2.7% greater fuel burn than expected. GE is working on a fuel savings package for their GEnx-2B engines on the 747-8F, but those will not be completed until 3rd quarter 2013 and are only expected to improve fuel consumption by 1.6%.
Norris states that Qatar Airway’s deal to purchase a 35% stake occurred in June, 2011, but it took three months to be ratified by the governments of each country. This happened only a few days before the 747-8F deliveries were to take place.
Ostrower, who is currently in Seattle for the 747-8F delivery, caught Boeing doing some interesting 747-8F moving around today at Paine Fieldand posted on his Flickr.
UPDATE 2 9/21 7:30am:
Matt Cawby with KPAE Blog is reporting that one of Cargolux’s Boeing 747-8Fs (LX-VCB) went on a customer test flight, meaning the airline’s pilots were on board. This normally is a sign that Boeing is getting close to delivery. Cawby is hearing rumors that the first aircraft might deliver Tuesday September 27th.
Firdaus Hashim on Flighglobal is reporting that Cathay Pacific Airways is “satisfied” with their 747-8Fs, which they are expected to take delivery of in October. “Cathay Pacific’s commercial arrangements with all its suppliers, including Boeing, are confidential. However, we are satisfied that our commercial arrangements with Boeing take account of the known and disclosed specification and performance characteristics of the aircraft,” said Hong Kong’s flag carrier in a statement.
Thanks to Marshall Autry (Vintage Racer) for letting me use his photo.
I was doing research on Virgin America’s new in-flight entertainment system and came across Brett Snyder’s review and figured I could do no better, so be sure to read his write up and then I will share a few thoughts (no rush, I can wait…)
Soon, you will be able to get Virgin America's RED on your own device.
So what do you think? I have been saying for quite sometime that I feel that the future of in flight entertainment will move from being on a screen hanging from the ceiling or in the seat-back to using your own devices. Almost everyone has some sort of device, be it a laptop, smart phone or tablet. People also update their devices much quicker and why should airlines pay millions to put in entertainment options, when they can just let you access options with your own device?
Recently Temo Madrigal took a look at American Airlines offering streaming entertainment to your device and Virgin America takes it one step further with BoardConnect by Lufthansa Systems. You can actually get Virgin America’s in flight system (called RED) on your own device. That is pretty slick. Virgin American also offers GoGo internet, so you have the ability to get online, use their seat back entertainment, or view their entertainment on your own device. Options are always king.
’œThe idea behind Red has always been to reinvent the flight experience, by offering travelers more options, more control, more content and more interactivity. Even though we believe that Red has raised the bar and is still head and shoulders above anything else in the U.S. skies, we’re not the kind of Company that rests on our laurels,’ said David Cush, President and CEO of Virgin America.
As Brett pointed out in his story, it will be a while before customers get to enjoy this new feature. However, this month, Virgin America is starting trials on an Airbus A320, aptly named #NerdBird (N841VA). Passengers are not expected to be able to use the new system until late 2012, but it is not like Virgin America’s current RED system won’t entertain you for the time being. I already believe the Virgin America offers the best domestic in-flight entertainment options and it looks like they want to keep it that way.
The best things in life are free. Well, not always. Sometimes they will cost you anywhere between 0.99¢ to $3.99. I recently had the opportunity to test out American Airlines new in-flight entertainment system (called Entertainment on Demand) on a flight from New York to Los Angeles and this was a good opportunity for me to see if my money would be well spent.
Before boarding the plane I had to make sure that all of my electronics were fully charged, just in case the movie options were not to my liking. I had my mp3 player, my tablet, laptop, and if all of those options became boring on my 6 hour flight, I would simply resort to my good’ole fashioned book. I had not seen any advertisements on the new In-flight Entertainment System in the terminal, so was keeping a lookout for the first glimpse of what was to come.
Before take-off, I sifted through the front seat pocket and found a pamphlet with information highlighting GoGo’s services that include Wi-Fi and the In-Flight Entertainment Service. The information on the pamphlet was simple and clear but still left me wanting to see it in action. As we prepared to take off the emergency instruction video played and shortly after a 2 minute commercial on the GoGo IFE was played as well. It also let the passengers know that it was simple and easy to navigate. It made me think that even my 8 year old could sign-up and choose her movies.
Watching what the airline wants you to watch during the flight is so 1999.
Once we were at the appropriate altitude that allows for electronics use and after about 45 minutes of some technical issues with my personal laptop, I was able to connect to the GoGo website and begin my entertainment adventure. I have to say that navigating the IFE was as easy as 1-2-3 (okay there is a 4th step, but it is sitting back and enjoying your movie). You go to the website, sign-up and add your credit card information, select a movie/tv show, and watch.
Movie selections are currently limited to 18 movies with selections in most genres (i.e. comedy, action, drama, etc.). The cost of a movie is $3.99, which is comparable to what you would get at Block Buster or your local movie rental store. Movies included Due Date, Arthur, Jane Eyre, The Adjustment Bureau, The Eagle and the Kingdom. Each movie also provided a short description and the movie rating. Dad mode kicked in and I was interested in knowing the options for kids.
There are currently only two selections, The Green Lantern animated and Nanny McPhee. I asked Jason Cohen, who works for GoGo was on the flight, about this and was told that because this is currently the test phase, the selections are limited and by November 1st, 2012 the selections of movies and TV Shows will be increased to 200. Of which 18 will be in the children’s genre.
The TV show selection was the most limited, only offering 30 Rock and Royal Pains, with only 10 episodes of each. The cost of renting an episode is 99¢, and this is the same as what you would find on iTunes for a TV show rental. Browsing these selections are made easy and my favorite was the browse by length of movie or TV Show option (i.e. 30 minutes, 1 hour, 1-2 hours or over 2 hours). I opted for a 30 minute TV show (30 Rock) to begin with because I assumed that the buffering would be terrible and streaming would be choppy. This was not the case at all. The video quality was crisp and clear and the streaming was flawless with no buffering stops. I was truly surprised.
It only takes a few steps to get yourself watching movies or TV shows.
I thought to myself, I’ll try and navigate the web and watch the movie at the same time and I’m sure it will cause a buffering issue. Did it, and again, was not the case. I was able to watch the TV show, navigate the web, and check my email at the same time. I truly enjoyed having all of the options and not cause an issue with the streaming the tv show.
I was lucky enough to have Jason on board to help me and answer any questions, but if you don’t have a Jason on your flight, no worries, GoGo also has live help via chat. I took the opportunity to chat with Seth just to test out the service option. I asked Seth a few general questions but one of the most important ones that I could think of that other users would ask is, ’œWhat if I don’t finish watching the movie on my flight?’ Seth let me know that I would be able to go back into the same webpage and continue watching the same movie at a later time (maybe the connecting flight if wi-fi is available) as long as it was from the same laptop I was using the first time and within 24 hours of purchase for movies, and 10 days for tv shows.
American has rolled out this new service on 15 of their Boeing 767-200 aircraft, primarily serving the New York to Los Angeles and San Francisco routes. American is hoping to roll out this feature on other GoGo equipped aircraft starting later this year. One downside of featuring this on the 767 is they only have power outlets in Business and select economy seats found near the front of the aircraft. I was sitting in the rear and if I would have been watching movies non-stop, my laptop would have ran out of juice before arriving at LAX. American is in process of installing additional powerports across their fleet.
There were no issues with bandwidth. I was able to stream my show and work on my email with no slow down.
Although the movie and TV show selection is currently limited, Jason explained that GoGo will be adding up to 200 movies soon and they will be rotated out every month. He also explained that that number would possibly go up depending on the demand from customers. I know some people might also think, ’œFor $3.99, why don’t I just rent a DVD at Redbox and return it at my destination?’ Well, that sounds great, but there a few things to consider: What if there are no Redboxes at your destination? And will the time and hassle it takes to find the redbox and return it be worth it? I would not want to go through the hassle and really a few bucks to make my flight go by quicker is always worth it.
American and GoGo are not willing to talk about how many passengers are currently using the new Entertainment on Demand, but they obviously feel this will be a successful venture with looking to add it to other aircraft. I hope to get the opportunity to use this feature again soon. Thanks American and GoGo for letting me and AirlineReporter.com try out your new service. Cheers!
British Airways is really promoting a new film about their history that will show up on their Facebook on September 21st at 11am (GMT). If this preview is any indicator, this is going to be one slick video. I wanted to share the preview and I look forward to seeing the full version when it comes out. Information from their YouTube:
Take an exclusive look at the British Airways people and planes that have been at the forefront of aviation for the last 90 years. This film is about the Airco de Havilland DH.9*, de Havilland 86* DC-3, VC-10, Boeing 747 and of course the iconic Concorde.
All of the planes shown have been instrumental in the pioneering activity of British Airways from its beginnings with Aircraft Transport and Travel in the 1920’s through to the modern airline of today.
*The DH.9 and DH 86 are represented in this film by the DH.51 and DH89 respectively
