Newsdesk – Commercial

Australia Loses Massive Microwave Landing System Order:

Hazeltine Corporation of the US has won the FAA bid to be lead supplier in equipping more than 2500 US airports with MLS landing systems, It is reported that the Australian system was offered at a better price but the Hazeltine offer was ahead in terms of technology. Value of the initial stage of the contract, to equip 172 primary US airports, is valued at just over $US100 million though Hazeltine believes the total MLS market will exceed$US4 billion by the turn of the century as more than 6000 of the world’s airports are upgraded to MLS status.

International Collaboration the key word in new engine programme:

Pratt & Whitney, Rolls Royce, Japanese Aero Engine Corporation, MTU and Fiat, have teamed to form a new company named International Aero Engines. IAE’s first engine will be a turbofan designated the V2500 and rated at 23,000 lb thrust, and will be available for certification early in 1988 The V2500 will be 15% better in fuel consumption than any engine being offered in its class today, claim the IAE spokesmen. The V2500 will be based broadly upon Rolls Royce’s long-stalled RJ500 and will additionally feature the latest technological advances developed by both Pratt & Whitney on the PW2037 and. Rollswith their various RB211 turbofans. Pratt & WhitneyandRollsRoycewilleachhavea30% share in the V2500 programme, JAEC will have 23%, MTU 110/o and Fiat 6%. Primary competitor for the V2500 will be the GE/Snecma CFM56 which will power the KC-135R, Airbus A320 and DC-8-70 series aircraft. IAE hope that the V2500 will power later versions of the A320 and any new 150-seater produced by Boeing.

Pan Am and American Swap Aircraft in Fleet Rationalisation:

Pan Am have swapped its McDonnell Douglas DC-10 fleet with American Airlines in exchange for the latter’s Boeing 747s. Under the agreement Pan Am will deliver all of its 11 DC-10-1Os and four DC-10-30s to American in return for eight 747 aircraft Pan Am will then operate 50 Boeing 747s while American will have 52 DC-10s effecting savings in both airlines due to fleet commonality.

McDonnell Douglas Future Airliner Projects Cancelled:

In a decision that will ultimately have far-reaching effects throughout the international aerospace industry McDonnell Douglas board members have voted to cancel the MD-90, MD-100 and D-3300 future airliner projects. The MD-90 was to be an upgraded version of the DC-9 design opted for 110 seats and was designed to serve as a DC-9-30 and 737-200 replacement. The MD-100 was an upgraded version of the DC-10 which would have used the latest technology engines to produce seat mile savings of up to 20% on current DC-10 aircraft. The D-3300 was MDC’s contribution to the 150-seater market and at best was always a doubtful starter though a design team had been working on this project for a number of years since the type was originally floated as the ATMA back in 1980. MDC will not concentrate its commercial aircraft activities upon the very successful MD-80 programme which will probably be further developed with CFM56 engines and an EFIS flight deck. The Douglas facility at Longbeach will also be employed in producing the USAF KC-10 Extender, a military tanker/transport version of the DC-10-30, the proposed USAF C-17militarytransport and the joint MD/BAe T-45 Hawk Navy jet trainer.

The primary reason for opting out of the MD-90 and MD-100 programmes was that there was simply insufficient airline interest in signing a launch order for either type. Winners from the sudden MDC decision will beFokker with their Fokker 100 107-seat twinjet,’ BAe with their 146, Airbuslndustrie with long-range variants of the A310 and A300 and later on the TA11 ultra-long-range aircraft, and Boeing with a proposed smaller version of the present 737-200 (provisionally designated 737-250) and long-range variants of the 767.

ATR 62 Launch Imminent:

As we went to press project launch of the stretched ATR 42, designated appropriately ATR 62 was imminent. ATR officials have planned for an eventual 62-seat version of the basic aircraft since the design was initially conceived in 1979/80. The ATR62 will be of a maximum of 62 passenger seats, will use uprated PW100 series turboprops in the 2500 shp region and will maintain the existing wing and fuselage section of the present aircraft save for the required additional fuselage plugs. It is believed that the ATA 62 could be in airline service by 1987.

Murdoch and Bond Spreading Their Wings:

The Australian entrepreneurial success story of the decade, Rupert Murdoch, has been appointed a director of the giant US aerospace conglomerate, United Technologies. United Technologies, among other things, owns Pratt & Whitney and Sikorsky helicopters. Meanwhile, on the other side of the continent, Alan Bond has bought into the ailing UK-based Airship Industries. Bond obviously did not miss the advantage TV stations had at Newport through the use of the Goodyear blimp and would like a Perth tor the 1987 defence of America’s Cup Long term prospects for the company are sound with positive evaluations having recently been completed by both the Royal Navy and USN into use of airships in AEW, ASW and fleet convoy protection roles. Airship Industries are also planning a jumbo-sized airship, designated Skyship 5000,which could uplift 200 passengers plus 25 tonnes of cargo andyetcostaround$15million. It is not known at this stage how much of Airship Industries Alan Bond will eventually gain control of or if there are plans to manufacture the air ships in Australia at a later date.

Inex-Adria Airways A320 Order Swells Launch Customer Base:

The Yugoslav airline next: Adria Airways has ordered eight 150-seat Airbus Industrie A320 aircraft in charter configuration for deliveries beginning in 1988. The order is for five firm aircraft and three options, The A320 order book now stands at 37 firm orders and 31 options from three airlines(AirFrance, British Caledonian and next-Adria) with Air Inter, the French domestic carrier, yet to confirm its earlier stated intention to purchase 10 A320s and 10 options.

World Airline Traffic on the Increase:

According to the International Civil Aviation Organisation (ICAO) traffic during 1983 increased by five per cent, indicating a healthy rise compared with the previous year. Particularly strong was the resurgence qt air transport in the latter half of the year in North America and on the transatlantic. Manufacturers meanwhile did not have a boom year yet it too was an improvement on 1982 Combined airliner orders in 1983 totalled 252 units as against 229 for 1982, a far cry from the heady days of the seventies when upwards of700 aircraft would be ordered annually. Much of the world’s jet air fleet is ageing rapidly and what will escape the stringent noise regulations of the next few years will be relatively uneconomic to operate by the end of this decade due to lack of comparative fuel efficiency. Manufacturers and operators alike appreciate that fuel will begin to rise in price with the onset of increased industrial production and that the remaining fleets of 727-200s, DC-9-30s, BAC 111s and early build73,7s will become increasingly costly to operate in comparison with the new generation of airliners due to enter service later this decade.

De Havilland Further Define Their Stretched Dash 7:

De Havilland Canada have settled on the technical specifications of the stretched Dash 7, designated -300, and hope to be able to launch the type by early 1986. The -300will be configured for up to 78 seats and will now be powered by 1500 eshp PW 115 turboprops of the same type as power the Embraer Brasilia The -300will feature two fuselage plug stretches totalling 18½ feet while aerodynamic clean-ups and the additional power will up cruising speed by 50 kts to 277 kts. Additionally, the aircraft will halve its time to climb to 15,000 feet and will feature a strengthened fuselage to permit a higher pressure differential allowing a cruising altitude of 25,000 feet. DHC feel that the aircraft, which will be a direct competitor to the proposed BAe ATP, the ATR62, and the stretched Fokker 50, will fill a requirement for the typical 2001300 nm stage where jet operation will become uneconomic as fuel prices rise towards the end of this decade

Airbus Cultivates Market for Used A300s:

Airbus Industrie is cultivating a market in the US for refurbished second-hand A300 aircraft. Fully refurbished and available for around USD25 million each, the large wide twinjets offer a cost-efficient alternative to new twinjets or second-hand trijets in the DC-10 class. Airbus has already secured a sale of two 314-seat A300.B2s to Florida-based Northeastern International Airways in the past few months and has high hopes of expanding its US base via the long term sale of early build A300s. Of particular benefit to Airbus is the fact that this also allows them to be able to offer better trade arrangements with existing Airbus operators who might wish to rollover some of their early A300s for either new A300-600s or A310s

General electric And Rolls Royce Team Up:

Rolls-Royce and General Electric have signed a memorandum of understanding for both companies to participate in each other’s current high-technology commercial engines, the RB211-535E4 and the CF6-80C2.

The joint application of General Electric and Rolls-Royce technologies will enhance these two engine programmes and lead to improved derivative models. Over the longer term the agreement offers the companies the opportunity to develop new, superior engines to satisfy this segment of the market as it may develop.

Programme management for the RB211- 535E4 and the CF6-80C2 will be retained by Rolls-Royce and General Electric respectively.

Each company will independently continue to market and support its other engine models including the RB211-524 family and the CF6 family. Rolls-Royce emphasises that the agreement in no way affects the RB211- 524D4 engine or the industrial RB211, both of which it will continue to develop and support. General Electric stated that the co-operative agreement with Rolls-Royce is expected to strengthen the CF6-80C2 programme and improve the outlook of the current revenue sharing participants· SNECMA of France, MTU of Germany, Volvo of Sweden and Fiat of Italy,

Farnborough Air Show Tour Looking Good:

If you are an aviation enthusiast, as obviously you are, and you have never been to Farnborough, then you are truly missing something. It is not that expensive either, particularly if you book with Chess Travel for their 21 or 28-day Tour this coming August and September. The tour includes two days at the Farnborough Air Show, visits to the RAF Hendon Museum, RNAS Yeovilton, inspections of the Concorde prototype and a flight on a 757 Additionally the routing is via Tokyo where a four-day stopover allows sufficient time to sample the delights of this fascinating city. The organisers stress that all air fares are included as is accommodation which makes both tours extremely good value at$3860 for the 21-day tour and only $4485 for the 28 day version. Seats are filling fast though, so contact Chess Travel on (02) 597 4244 and get ready for the trip of a lifetime.

Things Are Looking up for the US Giants:

Economic performance of both Boeing and McDonnell Douglas improved somewhat through the latter half of 1983. Boeing reported that for the first nine months of calendar ’83 they booked sales of $US8398 million as against $US6541 million for the same period in 1982. MDC recorded sales of $US6047 million as against $US5403 million. MDC actually employed more people at the end of September 1983 than they did in September 1982, which must constitute some form of US aerospace record. MDC are well committed with strong sales on the MD-80, KC-10, F-15, F-18 and AV-SB Harrier 11 programmes. During the first nine months of 1983Boeing delivered161aircraftcomprising six 707s(actually E-3 airframes), nine 727s, 63 737s, 16 747s, 20 757s and 47 767s. For the first nine months of 1982 Boeing delivered only 126 aircraft and were also suffering from the abnormally high investment dedicated to the 757/767 project. Both companies are looking at a much stronger 1984 though MDC will be pinning most of its profit hopes on its St Louis-based military aircraft division now that the MD-90, MD-100 and D-3300 projects have been scuttled.

Big American Order a Major Boost for 146:

British Aerospace have made a major breakthrough to the giant US airliner market with the firm sale of 20 BAe 146-200 aircraft to California-based PSA The order also includes 25 options and ensures the future of the 146 project. Indeed, up till last November, there were firm 146 orders for only 18 aircraft with a further 13 very soft options in view of the programme status at that time. The PSA order is ironically for 146 aircraft to replace the world’s best-selling jetliner, the 727, which is something that not even the BAe marketing gurus would have dared to suggest a few years back! PSA believes that frequency is king and will team their 146-200s with 150-seat MD-80s as both aircraft have similar cost-per-mile factors over the Californian sector that PSA serve. The 146 had little real competition according to PSA chiefs as its low noise footprint was the primary advantage not shared by the 737-200 or the F.28-4000. Orders for the 146 now total 38 with options on a further 45 while production is now being stepped up to a more efficient three aircraft per month to meet the demand.

Asian Aerospace Show Matures Into Regional Showcase:

The Asian Aerospace Show, held last January, has been term by almost al who attended. Attendances, both trade and public, were improved on previous shows while the number of companies in attendance was well above that of the previous show in 1982. A large Australian contingent displayed their wares including GAF, Qantas, Ansett, Dept of Defence Support, Ausda Tripall, BAe, SCEL, Peter Isaacson Publications, Aeromil, AWA, Aerospace International and Pacific Aviation. The next Asian Aerospace Show will take place in November 1985, about months ahead of the original schedule and well before the mooted display being planned in Jakarta by Indonesia’s Minister for Science & Technology, Dr Hab1bie Indonesia boycotted the Singapore-based show which was unexpected considering it would have provided an ideal opportunity to display the array of aircraft nowadays being built at the Nurtanio, Bandung facility Despite the recession aerospace shows are on the increase. In May this year there is Hanover, then Farnborough in September, Peking in December, then Pans in May 1985, followed by Asian Aerospace in November 1985andthe HAI US show early in 1986.ln April 1986Jane’spublishinggroupwill host a military display and forum at the Sydney RAS showgrounds.

An interesting sidelight to the Asian Show was that while Asian maintenance firms have significantly lower labour costs than their Australian counterparts, the difference on the bottom line is minimal, and for that matter often in our favour This is due to the far higher levels of expertise and higher productivity ratings in Australian compared with Asia. Australian firms in this instance should compete more vigorously in attracting heavy maintenance work from Asia rather than see it all going to the US or Europe as so much of it already does with the large and rapidly expanding ASEAN carriers.

Boeing pressing for Extension of Overwater Restrictions:

Boeing is pressing the FAA for an extension of the present 60-minute rule pertaining to twin-engined operation over water. The US FAA 60-minute rule requires that twin-engined aircraft not carry passengers for hire on routes where there will be more than 60 minutes of flying time at single-engine cruise speeds from an alternate airport. Most other nations, including Australia, prefer the more liberal ICAO ruling which limits service to the distance that can be covered in 90 minutes at normal twin-engine cruise speed, or about 680 nautical miles.

Boeing’s enthusiasm for a change in the FAA rules centres on the company’s 768-200ER version which can cruise out to ranges in excess of 5000 nm. Qantas will be operating this type on many of its long overwater routes but never beyond the ICAO twin-engine rules largely thanks to the geography of the regions Qantas will be overflying. Boeing on the other hand, in addition to Airbus with the A310-300, are looking at the North Atlantic where 200 / 230 passenger twin-engined operation would provide an ideal mix between operating economy and frequency Boeing are trying to persuade the FAA to adopt straight distance ruling, typically 700 nm, instead of one based on time.This would then allow such aircraft to fly trans-Atlantic with the required alternate being Gander in Newfoundland.

The primary emphasis of debate on allo.w­ ing a more liberal rule structure for twin-engined airliner operation on long overwater routes centres more on aircraft support systems rather than the sheer reliability of the powerplants. Modern high by-pass turbofans are exhibiting a level of reliability unheard of in the days of the first great transoceanic airliners – the Constellation, DC-7 and the Stratocruiser, which was better known as the Boeing Trimotor! However, the amount of electrical capacity available when one engine goes down and the resultant effect on the aircraft’s numerous hydraulic and power-operated systems has yet to be fully evaluated. Relying on the successful-start of an APU that has been idle for several hours and on the amount of energy provided by the Ram Air Turbine (RAT) could be risky to say the least. On this count, Boeing is suggesting the fitment of a fourth electrical generating system aboard its 767in addition to a number of other specific updates where the type is to be used for such operations.

Either way you look at it though, the use of large twins on traditional multi-engined routes is certain to eventually become the norm.

Airbus Operating figures mature:

With some 220 Airbus Industrie A300 aircraft in service at the end of 1983, the manufacturer was able to report an overall reliability rate for the year of 98.7%. Additionally, half of the 32 airlines surveyed reported reliability rates In excess of 99%. The combined fleet had exceeded one million flights and had passed the 1.5 million flight hour mark while average daily utilisation stood at 6 hours 20 minutes.

McDonnell Douglas and China in Joint Venture:

McDonnell Douglas Corporation has signed a letter of intent with the Shanghai Aircraft Industrial Corporation on a co-production programme to assemble 25 MD-80 jetliners in China. The aircraft will be used by CAAC, the national airline of the People’s Republic of China, on its domestic and international routes.

The preliminary agreement is the first such co-production arrangement in the aerospace field between a US company and a People’s Republic of China corporation. Under the arrangement, McDonnell Douglas will provide to the Shanghai Aircraft Industrial Corporation parts and sub-assemblies for the MD-80. Workers in Shanghai will manufacture selected parts and complete final assembly of the aircraft. In addition, a team from McDonnell Douglas will provide technical assistance in China on tooling, production and certification of the MD-80s built there.

Boeing Plan Extra Long Range 767-300:

Using advanced lithium-aluminium alloys (which are around 10% lighter than current aircraft grade aluminium), Boeing plan to certify an extended range version of the 767-300 out to 415,000 lbs This would then providea250-seat aircraft capable of sectors of6000nauticalmilesor about double what the basic 767 design concept drawback in1978.

Qantas Simulator Reaches Level 5 Status:

Qantas are on the verge of being able to train their pilots fully on simulators following the OofA granting of approval to Level 5 for the existing SingerLink equipment which has recently been integrated into the Qantas jet base simulator centre. The DofA standards are far more stringent than the US FAA standards as instanced by the fact that DofA required 91 aerodynamic tests to be carried out compared with 34 for the FAA Use of the simulator to Level 5 will save Qantas about $15 million over the next ten years. typically a simulator costs around $600 per hour to operate as compared with ten times that figure for a training-configured 747. Singer Link will market the package to international carriers worldwide on behalf of Qantas which will also serve to recoup some of the expense Qantas have gone to in getting the system to the present standard.

New look Department Aviation:

Plans to streamline the Department of Aviation through increased productivity, trimming staff through natural wastage and a more commercial approach to management have been announced by the Department’s Secretary, Mr Collin Freeland. He said a corporate plan, reviewable yearly, would define the Department’s financial and other objectives against a time scale.

”The Government currently has a policy of full recovery and has recently announced an independent enquiry into cost recovery,” said Mr Freeland. “We will need to await the outcome of Government decisions on that enquiry before being able to reflect these into the revenue side of a financial plan. In the interim I would propose our objective on the expenditure side as· an average of two per cent per annum reduction in real terms of the cost of attributable Departmental operations on a year-to-year basis for the next three years, to include a two per cent per annum reduction in Departmental staff, with Central Office declining at four per cent per annum.

Mr Freeland said the operational plan involved a review and update of the aviation regulatory environment and the provision of services to aviation with the overall objective of reducing costs, particularly to the industry, but again with the overriding objective of maintaining and improving safety.

“The first full corporate plan is to be available by 30 May 1984 and it will be reviewed and updated annually ”

East West Order Additional Fellowships:

The battle between BAe and Fokker to sell Jet aircraft to an emerging Australian airline was fought out for the second time in less than a year recently when the newly merged Skywest/ East West announced their future fleet requirements East West will stay with the Fokker F 28 Fellowship and has ordered an additional two Mk 4000modelswhich will ultimately bring its fleet to five of the type As the company already was a Fellowship operator it certainly seemed from the beginning that an order for anything other than the F28 would be relatively unlikely Meanwhile, Airlines of Western Australia are to remodel the interiors of their remaining F.28-1000 aircraft so that the type will remain passenger competitive till new equipment is purchased later this decade

Sales

BAe 146: PSA of San Diego have signed for 20 -200s with 25 more on option (refer Newsdesk). TASA of Brazil has ordered a third -100 and plans for a fleet of 10 by 1990. Air Wisconsin has ordered two additional -200s bringing their total fleet to six firm orders and four options.

BAe JETSTREAM 31: Metro Airlines of Texas have ordered 12 Jetstreams (refer Newsdesk).

DORNIER 228: Precision Airlines of Vermont, USA, has ordered six -200s with an option on a further six.

BOEING 737: Lufthansa has ordered six -200s; this is the 70th 737 ordered by Lufthansa since 1965. Western Airlines have ordered 18 737s comprising 12 -200s and six -300s. This revised order replaces an order by this carrier of six 767s made in 1982.

BOEING 747: ANA of Japan have ordered 2 -200F freighters to service the Japan/US market.

BOEING 757: Northwest Airlines have ordered 20 757s with PW2037 engines.

BOEING 767: Egyptair has ordered three 767ERs for delivery through 1984.

MD-80: Alisarda of Sardinia have ordered two MD-80s which will be in a 172-seat configuration. MDC and the PRC have signed an agreement to license build 25 MD-80s in China (refer Newsdesk).

ATR42: Brit Air have ordered a second aircraft in-a 50-seat configuration. LAPA of Argentina have ordered two aircraft for 1986 delivery.

SAAB-FAIRCHILD 340: Comair of Cincinnati have increased their orders from four to 12 aircraft with delivery to commence this April.

DHC DASH 8: Dimel, the DHC Middle East distributor, has ordered 15 aircraft, bringing total firm orders to 54 with a further 72 options.

SHORTS: Pennsylvania Airlines have ordered four 360s. Sunbelt (USA) have ordered two 360s.

LOCKHEED TRISTAR: Alia of Jordan purchased the final five L1011-500s.

AIRBUS A320: lnex Adria of Jugoslavia has ordered five with options on three more.