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Fleet Strategy Operational Issues-Qantas Case

OPTION A

In August 2015,

Qantas announced: “Qantas will enter a new era of global opportunities, fuel efficiency and passenger comfort when the Boeing 787-9 Dreamliner joins the Qantas International fleet from 2017.”

On May 2nd , 2018, Australian Aviation reported: ORDER YOUR PAPER NOW

“Qantas has exercised options for an additional six Boeing 787-9s, which will bring to 14 the number of the type in the fleet and lead to the withdrawal of the 747 in 2020. The airline said on Wednesday the six additional 787-9s would arrive between “late 2019 and mid-to-late 2020”.

Currently, Qantas has four 787-9s which are used to operate a Los Angeles Melbourne-Perth-London Heathrow rotation. It has four more on firm order due to arrive by the end of 2018. That will allow four aircraft to be based in Brisbane and to replace 747-operated services between Brisbane and Los Angeles, as well as between Los Angeles and New York JFK.

Qantas said the additional six on order would replace its last six 747-400s by the 2020. “This really is the end of one era and the start of another,” Qantas chief executive Alan Joyce said in a statement. “The jumbo has been the backbone of Qantas International for more than 40 years and we’ve flown almost every type that Boeing built. “The 787 has better economics and a longer range, and it has already opened up new routes like Perth to London. With a larger fleet of Dreamliners, we’ll be looking at destinations in the Americas, Asia, South Africa and Europe.” Only last year Qantas announced that it planned to retain its six youngest reconfigured B747s in its fleet.”

From the Chief Operating Officer perspective, provide a report on the range of operational issues that were addressed to accommodate this change of fleet strategy.

OPTION B.

You are the Chief Operating Officer of Air New Zealand. The Board has requested that you provide a report on the airline’s management of the B878 Rolls Royce Trent engine disruptions.

 For context, below is a news article from the NZ Herald on 29th April 2018.

Disruption from Air New Zealand’s Dreamliner engine problems will be felt through winter and into spring. In the airline’s updated travel alert, aircraft changes are listed through to October 26, with Boeing 787 Dreamliners swapped off the Auckland-Buenos Aires route. They are replaced by older Boeing 777-200s.

Flight cancellations listed run until tomorrow. During the past four days there have been eight trans-Tasman flights cancelled. The airline has also listed about 50 flight time changes to the end of May on its website. Advertisement Extra checks of Rolls-Royce Trent 1000 engines have been ordered by global regulators after concerns vibration could cause cracking in engine compressors. Already engines on two of Air New Zealand’s nine affected Dreamliners need repairs in Singapore. It is unclear how quickly the work can be done at the Rolls-Royce facility, which is under pressure because of the global alert. ORDER YOUR PAPER NOW

The airline has been hit with restrictions on how far the other aircraft with ”Package C” Trent 1000 engines can fly from airports, which means they’ve been re-routed from long haul routes over the Pacific to short haul services across the Tasman. Last weekend weight limitations forced Air New Zealand to make fuel stops in Australia and Guam. The airline opted for stops in order to carry a full payload but the stopovers put further pressure on the schedule which has hit about 3 per cent of its passengers.

With aircraft changes, the airline says it will try provide likeforlike seating but if this isn’t available passengers will be eligible for a full refund of their pre-paid seating. ”Due to the different cabin configurations, there’s a chance you may be required to travel in a different class and we’ll contact you if this is the case,” Air New Zealand says. Some flights are earlier than originally scheduled due to the engine issues.

The airline says that if passengers have a connecting flight booked on the same ticket they will be rebooked onto the next available service. ”If the updated times do not suit your schedule, please get in touch with your original booking agent to discuss alternative arrangements.” Page 4 of 4 Air New Zealand has said it will again use Portuguese charter operator Hi Fly to plug gaps.

Around the world affected Dreamliner operators are scrambling for aircraft to maintain schedules. Affected airlines include Japan’s ANA, LATAM from South America, Virgin Atlantic, British Airways and Norwegian. Not all Rolls-Royce engines on Dreamliners are subject to the extra checks.

Air New Zealand has two planes with later model Rolls-Royce Trent 1000 TEN engines and these can be used on usual long-haul routes across the Pacific. General Electric engines power close to 40 per cent of the 670 Dreamliners delivered and are not affected by the engine alert. ORDER YOUR PAPER NOW

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