MILAN- Italian carrier Neos Airline (NO) Boeing 787 fleet faces challenges due to the Rolls-Royce Trent 1000 engine issues but it has not canceled any flights.
Aldo Sarnataro, Commercial Director of Neos revealed to Italiavola, the airline’s strategy to navigate its way out of engine issues, route development, United States, India, and More.
Neos Boeing 787 Engine Issues
Major airlines confront significant operational hurdles amid widespread engine issues and delivery delays. The aviation sector experiences what industry leaders characterize as a “somewhat challenging” summer, with multiple airlines implementing strategic adjustments to maintain service continuity.
Boeing’s 737 MAX delivery delays create additional uncertainty, compounded by the ongoing Boeing strike.
Airlines face mounting pressure from Rolls Royce engine complications affecting Boeing 787-9 aircraft, necessitating numerous engine replacements and maintenance interventions.
Neos Air has achieved significant success in its New York operations, marking a strategic milestone in competing with major carriers like Emirates, United, American, and Delta. The airline’s JFK route generates 60% of its traffic from the United States market and 40% from Italy.
The carrier’s performance in the US market reveals unexpected distribution patterns. While initially targeting the B2B segment, Neos Air captures 55% of its US business from B2C channels and 45% from B2B operations, demonstrating strong direct consumer appeal.
Cargo operations play a crucial supporting role in the airline’s route economics, enhancing revenue streams across long-haul operations. The pandemic period proved pivotal for Neos Air’s US market entry, as the airline initiated operations through cargo services when EASA and FAA regulations permitted cabin cargo transport during capacity shortages.
These cargo operations established Neos Air’s presence in both US and Canadian markets, creating a foundation for subsequent passenger services. The airline leveraged this cargo experience to build market recognition and operational expertise before transitioning to passenger operations.
British Airways (BA) has implemented significant schedule modifications due to these engine challenges. The carrier postponed its Kuala Lumpur route launch to summer 2025 and suspended the London Gatwick to New York JFK service, reallocating a Boeing 777 to cover routes typically served by affected 787s.
Tel Aviv Flights
Neos Air continues to operate its fleet of six Boeing 787s while adapting to significant market changes in 2024, according to Aldo Sarnataro.
The airline faces distinct operational patterns compared to 2023’s post-COVID recovery period. While 2024 began with robust bookings, the summer season required additional market stimulation to maintain passenger volumes, marking a departure from 2023’s organic growth.
Tel Aviv operations present a particular challenge for Neos Air, given the region’s strategic importance to the carrier’s network. Despite security concerns, the airline maintains its presence in the Israeli market, primarily serving incoming traffic.
Sarnataro emphasizes the airline’s dedication to the Tel Aviv market, describing it as a “second home” for Neos Air. The carrier implements enhanced security measures to ensure continuous operations in the region, demonstrating its long-term commitment to this vital route despite current regional tensions.
Milan Hub
Neos Air leverages Milan Malpensa Airport (MXP) as its primary hub, orchestrating an expanding network of international connections. The airline maintains its headquarters near Malpensa while operating a secondary base in Verona, serving the concentrated market of northern Italy and the Triveneto region.
The carrier’s network strategy capitalizes on Malpensa’s extensive catchment area for point-to-point traffic. Neos Air develops its route network through strategic partnerships and connecting flights, particularly enhancing services from Kazakhstan to multiple destinations through Milan.
The airline currently connects Almaty with New York’s JFK Airport and the Dominican Republic. In a strategic expansion, Neos Air tested routes linking Tel Aviv with New York during Passover and October, aiming to boost passenger numbers on its New York and Toronto services.
The carrier’s India operations form a crucial component of its network development strategy. Neos Air utilizes strong passenger demand from India to establish and strengthen routes to other destinations, particularly Toronto. This approach enables the airline to build traffic gradually rather than launching direct services from scratch.
The network design integrates multiple city pairs, including Milan-Toronto and Tel Aviv-Toronto, with India serving as a primary traffic source. This systematic approach allows Neos Air to develop its intermediate network within its operational capabilities, creating sustainable route connections through its Malpensa hub.
The Verona base complements these operations, offering advantages through reduced airport congestion and strong airport authority relationships, enabling quick market responses to emerging opportunities.
Neos Air will launch winter operations to Punta Cana starting December 2024, adding a direct connection from Italy to the Dominican Republic. The airline will introduce new services to Cartagena, Colombia, strengthening its Latin American network.
The carrier maintains its established routes to China and the Maldives, serving key Asian markets. Neos Air continues specialized operations for cruise line partnerships, providing air transportation to global homeport destinations.
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