News Desk

Bombardier Cuts Smaller Turboprops

Bombardier Has Informed Employees That It Will Discontinue Its 37 Seat Dash 8-q200 and 50 Seat Q300 Turboprops After Current Orders Are Finished in May 2009. The Montreal Based Manufacturer’s New Regional Aircraft President Steve Ridolfi Said That the Decision to Drop the Lower Capacity Dash 8s Was Driven by Market Movement to Larger Capacity Aircraft. “due to a Shift in Demand Towards Larger Turboprops, Bombardier Aerospace Has Increased the Production Rate of Its 78-seat Q400 Aircraft and Will Discontinue the Production of Its 37-seat Q200 Aircraft and Its 50-seat Q300 Aircraft,” He Said. Bombardier Plans to Use the Extra Capacity at Its Toronto Facility to Increase the Production Rate of the Q400 Which Has Garnered Strong Sales Recently Despite Problems With the Type at Sas. Bombardier Has Also Launched the Nextgen Q400, Which Will Feature Enhancements to the Cockpit and Cabin, Including New Ceiling Panels, Led Lighting and Larger Overhead Bins. Cutting the Smaller Model Dash 8s Could Leave the Atr 42 as the Only Western Built Turboprop With Less Than 60 Seats. Turboprop Values and Lease Rentals for These Smaller Aircraft Have Increased Significantly in Recent Years as the Price of Oil Has Pushed Many Airlines to Replace Regional Jets With More Efficient Turboprops.

Weak Dollar Continues to Hurt Airbus

the Weak Us Dollar Could Force Airbus to Seek Out More Cost Efficiencies and Force It to Move Some Manufacturing Outside of the Euro Zone, According to Louis Gallois, Ceo of Parent Company Eads. “the Sword of Damocles is Not Just Hanging Over Us Anymore, It is Actually Falling,” Gallois Told Media at a Press Breakfast in Paris. He Went on to Explain That the Current Exchange Rate is “unbearable” for the Company, and Suggested That the Manufacturer Would Have to Start Paying Its Suppliers in Us Dollars Rather Than Euros. Despite His Strong Imagery, He Also Reassured Investors and Media That There Was “no Need to Panic Yet.” Airbus Has Previously Been Pursuing a Number of Cost Reduction Strategies Under Its Power8 Program, Which Included Selling Factories and Increasing Outsourcing. But This Has Hit Some Major Snags, With the Airframer Finding It Hard to Sell Its Factories in Germany Due to the High Dollar. As a Consequence Eads is Believed to Be Considering a Number of Options to Decrease Costs, Including Moving Some Sub-assembly Plants Outside of the Euro Zone. Indeed, as Part of Eads’s Successful Pitch of Its A330 Based Kc-30 Tanker to the Usaf, Assembly of the New A330f Freighter Will Be Moved to the New Facility It is Building in Mobile in the Us State of Alabama if the Tanker Decision is Upheld by the Us Government Accountability Office (Gao). In the Shorter Term, Airbus is Continuing Its Power8 Program and Hopes to Sell Off the Three Sites in Germany as Well as Other Sites in Europe. Airbus Has Also Been Forced to Increase the List Prices of Its Aircraft Due to the Weak Dollar and Sharp Increases in the Cost of Raw Materials. The Rises Come on Top of Airbus’s Annual 2.74 Per Cent Price Escalation and Will Add an Extra Us$2m (a$2.1m) to Each A320 Family Aircraft and Us$4m (a$4.2m) for Each Widebody, Including the A380. Airbus Says That Metal Prices Have Increased 6.5 Per Cent, While Manufactured Goods in the Euro Zone Have Increased by 5 Per Cent Over 2007. Much of This Increase Was Attributed to the Depreciation of the Us Dollar Against the Euro, and Airbus’s Parent Company Eads is Reportedly Asking Suppliers to Move More of Its Production Away From the Euro Zone. There Has Also Been Some Talk of Airbus Starting to Pay Suppliers in Us Dollars Rather Than Euros, and Eads is Also Believed to Be Interested in Acquiring Potential Suppliers in the Us. In a Statement, Airbus Coo Customers John Leahy Said, “we Have to Keep Pace With the World Market Price Developments and Secure Profitable Deals.” Airbus Had Previously Not Raised Its List Prices Since 2003, and Has Been Enjoying Strong Orders for Its A230 Family of Aircraft for a Number of Years.

Commercial Briefs

Final Assembly on the Fifth Boeing 787 Dreamliner Has Started at Boeing’s Everett Facility. The Aircraft Will Be the Third Flying Test Aircraft and Will Have an Airline Interior Installed for Certification Trials. Boeing Commercial Airplanes Delivered 115 Aircraft in the First Quarter of 2008, an Increase of 8.5 Per Cent Compared to the First Quarter of 2007, Comprising 87 737s, Four 747-400s, Three 767s and 21 777s. Embraer Delivered 45 Aircraft During the First Quarter of 2008. The Deliveries Included 17 E-190s, 15 E-175s, Three E-195s, Three Erj 145s and Seven Legacy 600 Business Jets. At the End of August, the Manufacturer Had a Backlog of 509 Aircraft Valued at Over Us$20bn (a$21bn). Airbus Recorded Sales of 54 Aircraft in March. The Orders Comprise 27 A320 Family Aircraft, 26 A330s and One A350, Which Was for a Private Vip Client. Pratt & Whitney Launched the Second Phase of Testing for Its Geared Turbofan (Gtf) Engine on April 10. The Tests Will Analyse the Performance of Acoustics of the Gtf and Its Nacelle System at Pratt’s Ground Test Facility in West Palm Beach, Florida. Meanwhile, Airbus Says It Will Test Fly the Pratt & Whitney Gtf on Its A340-300 Demonstrator Aircraft in the Fourth Quarter of This Year. Airbus Says That It is Not Actively Evaluating the Gtf but That It is Part of an Ongoing Assessment of New Technologies. Bombardier Delivered Its 1500th Crj Regional Jet in Late March. The Aircraft, a Crj900 Nextgen, Was Delivered to Mesaba Airlines for Use on Northwest Airlink Services.

Military

Air Combat Review Expected to Validate, but Delay F-35 Buy

the Rudd Government’s Air Combat Capability Review is Expected to Validate the Previous Coalition Administration’s Decision to Acquire Up to 100 F-35a Jsfs to Replace the Raaf’s F/a-18a and F-111c. But Sources Add That Acquisition of the First Jsfs May Be Pushed Back to Around 2016 When the Mature Block 3 Variant Becomes Available Instead of 2013 as Originally Planned. This Would Allow the Definitive Block 4 Upgrade Which Includes a Maritime Strike Capability to Be Introduced to Coincide With a Planned Operational Capability in 2018, and Would Also Remove Much of the Risk and Cost From Operating Early Low Rate Initial Production (Lrip) Aircraft. The Proposed Delay Also Opens Up Further Possibilities for Additional F/a-18e/f Super Hornets to Be Acquired to Cover the Widening Gap to a Fully Operational F-35 Force. Any Additional Super Hornets Would Be Partially Funded From an Expected $750 Million in Savings That May Be Realised by Buying Into the F-35 Build Program Further Down That Aircraft’s Development and Cost Curve, as Well as From a Possible Abandonment of the Phase 3.2c Centre Barrel Replacement (Cbr) Element of the Current Air 5376 F/a-18a/b Hornet Upgrade Program (Hug) After the 10 Cbrs Currently Contracted for Are Completed. Lockheed Martin Says the Claimed Savings From Buying Later Build Aircraft May Be Offset by Less Stability in the Program Caused by Wavering Partners Such as Australia. “We Are Looking at Ways to Provide All the Coalition Partners With Stability in the Pricing,” Lockheed Martin’s Business Development Vice-president Robert Weiss Told News Limited. “So in Order to Do That, It Requires Stability in the Commitment of the Partners as Well, to Provide That Stable Pricing. And the Other Side of That, It Requires the Partners to Stay With the Current Production Profile (Schedule).”

Adf Considering New Uavs to Fill Middle Ground

the Adf is Reportedly Considering the Acquisition of a Number of General Atomics Mq-1c Sky Warrior Er/mp Uavs to Fill a Perceived Capability Gap in the Middle Tier of the Uav Battlespace. The Sky Warrior is the Us Army’s Version of the Usaf Mq-1 Predator a, but Has a Higher Sensor and Weapons Capacity, a Smaller Ground Control Segment Common to Other Us Army Uavs, and Features a More Powerful and Economical Engine Which Runs on ‘heavy’ Fuels Such as Diesel or Jet Fuel. The 1450kg Aircraft Can Fly for More Than 30 Hours and Can Carry Four Hellfire Precision Air-to-ground Missiles. It is Believed the Requirement Has Come From a Growing Need for Additional Isr and Close Air Support Assets for Australian Army Reconstruction and Special Forces in Afghanistan’s Southern Oruzgan Province, and That a Deployment of Tiger Arh Helicopters to Afghanistan May Also Be Considered in Late 2009.

Dsto and Uq Join Forces for Hypersonics

Research the University of Queensland and the Defence Science and Technology Organisation (Dsto) Have Joined Forces to Further Research and Develop a Hypersonic Vehicle With the Appointment of Two Key People to New Positions. Dr Russell Boyce, Formerly of the University of New South Wales at the Australian Defence Force Academy, Has Been Appointed Dsto Chair and Professor in Hypersonics, While Associate Professor Michael Smart, Formerly of Nasa, Has Been Appointed to the New Position of Chair and Professor in Hypersonic Propulsion. The University’s Centre for Hypersonics is the Largest University Based Hypersonics Research Group in the World.

Jassm Gets Green Light

Following a 12 Month Program Suspension, the Lockheed Martin Agm-158 Jassm Missile Has Reportedly Been Given the Go Ahead by the Usaf to Resume Development. The Program Was Suspended After a Budget Blowout of Nearly 30 Per Cent and Following a Number of Unsuccessful Test Firings Where Missiles Randomly Selected From Usaf Production Lots Missed Their Targets. The Problem Was Traced to Interference With the Missile’s Gps Guidance Unit, and a Remediation and New Demonstration Program Was Devised With the Assistance of Raaf Engineers. The Test Program of 16 Further Flights Was Conducted in February and Resulted in a Reported Better Than 90 Per Cent Success Rate. The Raaf Has Ordered the Stealthy 400km Range Jassm to Equip Its F/a-18a/b Hornets and is Believed to Be Considering the 1000km Extended Range Jassm-er for Its Forthcoming F/a-18f Super Hornets.

Saab Rolls Out Enhanced Gripen

Saab Has Unveiled an Enhanced Prototype of Its Gripen Fighter Which Promises More Range, a Higher Payload and Greater Capability. The Gripen Demonstrator Has Been Fitted With a Ge F414g Engine Similar to That Used on the F/a-18e/f Super Hornet, a Developmental Saab/thales Active Electronically-scanned Array (Aesa) Radar, Enhanced Datalinks, and a Re-designed Main Landing Gear Which Now Folds Up Into the Wing, Allowing for a Significantly Increased Internal Fuel Capacity. The More Powerful Engine Also Allows for a Greater Payload to Be Carried Along With an Additional Two Weapon Stations, and Saab Claims the Aircraft Will Be Capable of Supercruising With Four Air-to-air Missiles Loaded. The Gripen Demo Was Reportedly Developed at a Cost of Only Us$60m (a$64.2m), a Fraction of What It Would Cost to Develop an Enhanced Version of a Current Western Fourth Generation Fighter.

Long Awaited A400m Achieves Power on Milestone

Airbus’s Long-awaited A400m Military Transport Has Moved Closer to Its First Flight in August After Successfully Achieving Its Major Power-on Milestone on April 11. The Aircraft, Dubbed Msn001, Had the Test Performed at Production Station 40, During Which All of Its Electrical and Systems Interfaces Were Connected and Powered Up. Further Tests Were Conducted Which Validated the Systems’ Compliance With the Aircraft’s Design Requirements and So Data Could Be Recorded for Analysis and Evaluation. Msn001 is Now Undergoing Fitment of Its Europrop Tp400 Engines and Their Associated Electrical Systems and Wiring Prior to Ground Testing and First Flight.

Better News on F-35 Costings

Following a Scathing Report on the F-35 Jsf Program Last Month by the Us Government Accountability Office (Gao) Which Claimed Program Cost Blowouts of More Than Us$15bn (a$16bn), a Newly Released Report by the Pentagon Has Painted a Far Brighter Picture for the Future of the Program. Rather Than Increasing in Cost, the Pentagon’s Select Acquisition Report (Sar) Has Shown a Drop in Estimated Acquisition Costs for the F-35 of Nearly Us$981m (a$1.06bn) Over the Aircraft’s Planned Three-decade Long Production Run Which Has Been Attributed in Part to Lower Material Costs Related to Agreements Made by Lockheed Martin and Its Subcontractors, and Revised Estimates of Support Costs. Sar Reports Are Prepared Annually in Conjunction With the President’s Budget, and the Program Cost Estimates Provided in Them Include Research and Development, Procurement, Military Construction and Acquisition-related Operation and Maintenance.

Raaf at Red Flag Alaska

an Raaf Deployment of Eight F/a-18 Hornets and 150 Personnel From the Tindal Based 75qn Arrived at Eielson Afb in Alaska on March 31 for the Two-week Exercise Red Flag Alaska. The Exercise Was the First Red Flag Alaska the Raaf Has Attended, With Previous Iterations of the Exercise Being Held at Nellis Afb Near Las Vegas. The Usaf Has Instrumented a Large Range in Alaska With Ground Based Telemetry Sensors, Artificial Targets, and Threat Simulators and Emulators, and Has Established a Squadron of Specially Painted Arctic ‘aggressor’ F-16s at Eielson to Complement the Often Space-restricted Nellis Ranges. The Exercise, Which Was Held in Conjunction With Us and Uk Forces, Was Designed to Simulate a Pilot’s First 10 Combat Missions With Multi-national Sorties Flown With and Against Various Aircraft Types and Threats in Conjunction With Aew&c, Tankers and Electronic Support Aircraft. The Deployment Was Supported by a C-17 From Amberley’s 36sqn.

Military Briefs

The Raaf’s New Recruit Training Precinct at Raaf Wagga Was Officially Opened on April 10 by Chief of Air Force, Airmshl Geoff Shepherd. The New $60 Million Facilities for 1rtu Include a New Headquarters Building, Multi-storey Living-in Accommodation Buildings, Training Facilities, a Physical Fitness Centre, Medical and Dental Facilities, Weapon and Field Training Areas, Improved Mess Facilities and a Recruit Recreation Facility. The Rnzaf Has Been Forced to Extend Its Lease of Five King Air B200 Trainers for an Additional 12 Months Due to Delays in the Tender Process for a Replacement Aircraft. Boeing Has Delivered the First Laser Joint Direct Attack Munition (Ljdam) Kits to the Usaf. Ljdam Can Be Employed as Standard Jdam Weapons for Set Gps Coordinates, or Can Be Targeted Against Moving Targets or Retargeted After Release From a Laser Designator via the Weapon’s Laser Seeker Head. Boeing Has Reportedly Been Forced to Address Centre Fuselage Cracking on the Usaf’s Fleet of C-17a Airlifters Near the Aircraft’s Wing Roots. The Cracking Has Reportedly Been Caused by Engine Exhaust Being Blown Against the Fuselage When the Reverse Thrusters Are Engaged on Landing. South Korea Has Ordered 21 More F-15ks to Complement the 40 It Already Has in Service or on Order, as It Seeks to Bolster Its Strike Capabilities. The First F-35b Short Take Off and Vertical Landing Variant of the Jsf Has Powered-up Its Engine for the First Time as It Nears Its First Flight. The Test, Which Occurred on April 18, Saw the Engine Throttled Up to Its Full Military Power Rating of About 28,000lb (125kn) Thrust Twice and Ran for Nearly an Hour at a Variety of Throttle Settings. The Test Also Saw the Vertical Lift Fan Doors Opened and Closed. An Raaf F-111c Safely Recovered to Raaf Base Amberley on April 11 After a Birdstrike With a High Flying Pelican Which Left It With a Shattered Radome and Damaged Engine.

Airlines

Qantas to Raise Fares but Still on Track for Profit Increase

Qantas Says That It is Still on Track to Provide a 40 Per Cent Increase in Profits Despite Announcing That It Will Raise Fares by Up to 3.5 Per Cent. The Fare Increase Has Been Attributed to the Higher Cost of Fuel. Domestic Airfares for Qantas and Qantaslink Will Rise by Approximately 3.5 Per Cent While International Fares From Australia Will Rise by Three Per Cent. Jetstar is Also “reviewing Its Fare Levels”, With an Increase Likely to Be Announced Soon. Despite the Fare Increase, Qantas Ceo Geoff Dixon Remained Confident That the Company Would Reach Its Target of Lifting Profit Before Tax for the Year by 40 Per Cent. “our Fundamentals Remain Very Strong,” He Said. “our Flying Businesses Are Well Positioned in Their Markets, We Are Progressing Plans to Unlock Value in Our Portfolio Businesses and Our Balance Sheet is Robust, Providing Flexibility to Fund Our Future Growth. “the Continuing Rise of Jet Fuel Prices is of Concern, However We Have Hedged 34 Per Cent of Our 2008/09 Needs at a Price of Us$90 (a$95) Per Barrel, of Which the Majority is in the First Half of the Fiscal Year and is Predominantly in Options. But if High Fuel Prices Persist Beyond This Point It Would Be of Increasing Concern.” Within Days of the Qantas Announcement Virgin Blue and Air New Zealand Also Announced Fare Increases to Combat the Increased Cost of Fuel. Virgin Blue Says That It Will Increase Fares on Domestic Routes Between $5-$15 Per Sector and Between $5-$15 on Pacific Blue’s Short Haul International Routes and Will Be Progressively Increased From May 6. Air New Zealand is Raising Its Domestic Fares by a Further Three Per Cent, Stting That the Increase Was Necessary Because It Could Not Absorb the Increase in Fuel Prices.

Virgin Blue Downgrades Profit, Toll to Stay

Virgin Blue Has Lowered Its Expected Profit for the Financial Year, While Majority Shareholder Toll Holdings Has Announced That It Will Not Sell Its Stake in the Airline in the Short Term. Virgin Now Expects Its Net Profit for the Year Ending June 30 to Be Less Than $140 Million, Compared to a Net Profit After Tax in Fy2006/07 of $216 Million. The Carrier Lays Most of the Blame for This on the Increasing Cost of Fuel. “should Prices Remain at These (High) Levels, Virgin Blue Will Incur Additional Fuel Costs Next Year of Over $120 Million,” Read a Release From the Airline. The Airline Also Expects to Be Hit by Lower Yields Due to Overcapacity in the Australian Market and Softer Demand. Virgin Blue Also Announced That Its Major Shareholder Toll Holdings Has Chosen Not to Sell Its 62.8 Per Cent Stake in the Airline in the Short Term as Had Been Expected. Toll is Believed to Have Considered a Number of Expressions of Interest for Its Stake in the Airline, but Has Made the Decision Not to Sell as the Current Financial Crisis Has Significantly Undervalued the Company.

Air Nz Expects to Take a Hit on Fuel

Air New Zealand Has Warned That It Does Not Expect to Meet Its Profit Forecast for the 2007/08 Financial Year Due to the Increased Cost of Fuel. In Releasing Its March Operating Statistics, Air Nz Warned That While It Had Crude Oil Hedges in Place, the Carrier Was Exposed to the Increased Differential Between Crude and Jet Fuel Prices. While in the Past This Has Averaged Us$15(a$16) Per Barrel, This Has Blown Out to an Average of Us$25 (a$26.70) Per Barrel. As a Result, the Airline Advised Shareholders That It Expects Profit for the Year to Be Between Nz$200 and $220m (a$167m-184m). For the Month of March, the Air New Zealand Group Carried 1.3 Million Passengers, an Increase of 4.5 Per Cent on the Previous Year.

Delta & Northwest to Merge

Delta Air Lines and Northwest Airlines Have Agreed to a Merger Deal Which Would Create the World’s Biggest Airline. Under the Deal, Northwest Shareholders Will Receive 1.25 Delta Shares for Each of Their Northwest Shares. This Would See the Pilots of Both Carriers Given a 3.5 Per Cent Stake in the Combined Airline, With Other Us Based Employees Holding a Four Per Cent Stake. The Combined Carrier Would Have a Fleet of Over 800 Aircraft and Us$35bn (a$37bn) in Revenues, and Would Retain the Delta Name. The Larger Delta Will Maintain Its Headquarters in Atlanta but Will Have ‘executive Offices’ in Northwest’s Headquarters in Minneapolis. “we Said We Would Only Enter Into a Consolidation Transaction if It Was Right for All of Our Constituencies, Delta and Northwest Are a Perfect Fit,” Richard Anderson, Delta Ceo, Stated. “we Believe by Partnering With Our Employees, Including Providing Equity to Us Based Employees of Delta and Northwest, This Combination is Off to the Right Start. Together, We Are Creating America’s Leading Airline – an Airline That is Financially Secure, Able to Invest in Our Employees and Our Customers, and Built to Thrive in an Increasingly Competitive Marketplace.” the Two Airlines Operate Quite Different Fleets, With Delta Running Primarily Boeing 777, 767, 757, and 737 Fleets Along With Md-80/90s, While Northwest Flies a Mix of 747s, 757s and A330s on Its Long Haul Services, and a Large Fleet of Dc-9s and A320/319s on Its Domestic Routes, So There Will Need to Be a Large Amount of Fleet Consolidation in Order to Realise the Benefits Promised by the Merged Entity. Northwest Has Also Ordered the Boeing 787 While Delta Has Recently Started Taking Delivery of Eight Ultra-long Range 777-200lrs. Although News of the Merger Has Been Welcomed by a Number of Analysts, a Number of Other Obstacles Remain in the Way. The Carriers Will Have to Seek Antitrust Authority From the Us Department of Justice for the Merger. Both the Carriers’ Pilot Unions Are Also Likely to Make the Integration Hard as Both Have Yet to Agree on a Merged Seniority List and a Joint Work Agreement.

Four Us Airlines Fail in Two Weeks

Any Thought of Mergers Has Come Too Late for Some Us Airlines, With Skybus, Ata, and Aloha Airlines All Ending Passenger Services in Early April, While Frontier Entered Chapter 11 Bankruptcy Protection on April 11, Raising Concerns About the Overall Health of the Us Airline Industry. Skybus, Which Had Emulated Ryanair’s Ultra Low-cost Carrier Model From Its Base in Columbus, Ohio, Ceased All Flying on April 4 and Entered Bankruptcy on April 7. Skybus Had Operated a Fleet of 12 Airbus A319s and Has Up to 53 Still on Order. Ata, Formerly Known as American Trans Air, Shut Down Services on April 3 After the Carrier Lost a Lucrative Military Contract Which Accounted for a Large Proportion of Its Revenue. The Company Was Also a Codeshare Partner With Southwest Airlines on a Select Number of Routes From Chicago Midway Utilising Its Fleet of Boeing 737s. Ata Also Operated Dc-10s and Tristars to Transport Military Personnel and Other Charter Work. Aloha Airlines Suspended Passenger Services on April 1 Citing High Fuel Costs and Tough Competition on Inter-island Routes in Hawaii, Particularly From Mesa Air Group Subsidiary Go! Air. Aloha’s Ground Handling and Cargo Operations Will Continue and Are Likely to Be Sold Off Shortly. Despite Entering Chapter 11, Denver-based Frontier Intends to Continue Operating Pending a Structural Reorganisation, but This is Dependant on It Being Able to Find a Debtor-in-possession (Dip) to Underwrite the Process. While All Four Airlines Were Smaller Start-ups or Niche Carriers, Their Failure Has Raised Concerns About the Sustainability of a Number of Us Carriers at a Time When Yields Have Been Softening and Fuel Costs Increasing. Most Us Airlines Are Particularly Vulnerable to the High Fuel Price as Many Do Not Have Strong Hedging Positions for the Year Ahead.

Oasis Fades to a Mirage

Pioneering Low Cost Long Haul Carrier, Oasis Hong Kong Airlines, Entered Liquidation and Suspended All Flights on April 9. The Carrier Has Appointed Accounting Firm Kpmg as Liquidator After High Fuel Costs and Debts Rumoured to Be as High as Hk$1bn (a$137m) Took Their Toll on the Airline. Most of the Airline’s Debt is Believed to Have Financed Its Fleet of Five 747-400s. According to a Report in the ‘south China Morning Post’, Hainan Airlines’ Parent Hna Group Had Hoped to Rescue the Airline, but This Was Derailed by the Airline’s Chairman, Raymond Lee Cho-min. According to the Report, Lee Had Pledged a Proportion of the 60 Per Cent Shareholding He Had in Oasis as Collateral on a Personal Loan. At the Time It Suspended Operations, Oasis Served London Gatwick and Vancouver From Hong Kong, and Had Planned to Start Services to Sacramento and Sydney. The Carrier Had Been Sourcing Additional 747s and 777s to Start These Services. More Than 600 Staff Had to Be Retrenched.

Airline Briefs

The Australian Government and the European Union Signed a ‘horizontal Agreement’ on April 29 Which Could Pave the Way for Talks on an Open Skies Agreement. The Agreement Recognises the Eu’s Ability to Negotiate an Agreement With Australia on Behalf of Its Member Nations. Jetstar Asia’s Board Has Reportedly Been in Talks With Bankrupt Taiwanese Carrier Far Eastern Air Transport (Fat) and Was Said to Be Considering a Proposal From Fat at Its Board Meeting on May 1. Jetstar Asia Flies From Singapore to Taipei, While Fat is Primarily Focused on Services Within Taiwan and Charters in the Region. Ozjet, Which Has Been Involved in Takeover Activity, Has Reportedly Been Sold to Brisbane Based Freight Carrier Heavylift. Previous Speculation Centred on Takeover Offers From Our Airline and Toll Holdings. Pacific Blue Has Increased the Number of Flights From Brisbane to Nadi and Port Vila Due to Strong Demand. Effective June 17, Pb Will Operate Two Additional Weekly Services From Brisbane to Nadi and One Additional Brisbane-port Vila Service. Victorian Regional Sharp Airlines Recommenced Services Between Adelaide and Port Augusta and Adelaide and Mildura on April 28. New York Based All-premium Class Carrier, Eos Airlines Filed for Chapter 11 Bankruptcy on April 26. The Airline Operated Its Last Services Between New York Jfk and London Stansted on April 27. Eos is the Second All-premium Carrier to Fail in the Past Month After Rival Maxjet Wound Up Operations in Late March.

Environment

Aviation Industry Commits to ‘carbon Neutral Growth’

a Number of Commercial Aviation Leaders Signed a Joint Declaration on Climate Change at the Aviation and Environment Summit in Geneva on April 22 Which Commits the Industry to Growing Sustainably. The Declaration, Which Involved Aircraft Manufacturers, Air Traffic Control Providers, Airlines and Airports, Paves a Four-pillared Approach With the Aspirational Goal of Carbon Free Flights. The Four Major Areas Involve Investment in New Technology, Increasing Operational Efficiency, Improving Infrastructure to Allow for More Efficiencies and Appropriate Economic Measures. According to the Summit’s Organiser, Dr Philippe Rochat, “the Declaration is Not Just Fine Words. For the First Time the Industry Can Agree on a Set of Common Goals and a Pathway to Achieve Those Goals – Through the Industry’s Four Pillar Strategy. And We Have a Strong Track Record of Driving Through Major Industry Initiatives. Look at What We Have Done With E-ticketing and Safety. This Declaration Sends a Signal That We Are Devoting the Same Energy, Investment and Sheer Determination to Ensure the Industry Has a Sustainable Future.” the Declaration Was Welcomed by a Number of Parties, Including Iata and the Airports Council International. Locally, Sydney Airport Has Announced That It Has Also Signed the Declaration. “in Signing Up to the Declaration, Sydney Airport Has Reaffirmed Its Commitment to the Environment,” Ceo Russell Balding Said. “we Will Work With All Players Across the Industry to Target Carbon-neutral Growth as a Step Towards a Carbon-free Future for Aviation.” in a Rare Show of Unity, Airbus and Boeing Signed an Agreement at the Summit to Work Together to Improve Air Traffic Management Technology to Reduce Traffic Congestion. Both Companies Believe That by Improving Air Transport Management and Control Systems That Fuel Burn From Airliners and the Emissions Produced Could Be Cut Significantly. “I Am Convinced Technology and Innovation Hold the Key to Reducing Aviation’s Environmental Impact and Increasing Eco-efficiency,” Airbus Ceo Tom Enders Said. “and Competition is a Great Motivator for This. Where Boeing and Airbus Share a Common Position on the Environment and Safety, It is in All Our Interests That We Cooperate to Achieve Our Common Goals More Quickly.”

Airbus Trials Efficient Procedures

Airbus Has Been Involved in a Trial of New Air Traffic Control Procedures Which Could Potentially Cut Fuel Burn and Emissions During Cruise in Oceanic Airspace. The Trials Were Part of an Airbus Led Project Named Cristal-itp and Involved a Sas A330 and Airbus’s Own A340 in Oceanic Airspace Over Iceland. Both Aircraft Were Fitted With an Aviation Communication & Surveillance Systems (Acss) Traffic Computer, Which is Based on the Ads-b Technology. The A340 Conducted a Number of Changes Relative to the A330 Which Were Transmitted Through the Acss Back to the A330. Airbus Claims That With the Acss System That the Improved Communications Between Ground Controllers and Pilots Could Allow for Reduced Separations Between Aircraft. This Could in Turn Allow Pilots to Fly More Efficient Altitude and Climb Profiles and Therefore Reduce Fuel Burn and Emissions When Cruising Over Oceanic Airspace.

Environment Briefs

Air New Zealand Has Launched a Carbon Offset Program Which Will Allow Passengers to Buy Carbon Credits. The Credits Will Be Provided by Trustpower Limited, Which Owns a Wind Farm in New Zealand, and Air New Zealand Will Also Establish a Three Year Tree Planting Scheme.

Airports

Perth Outlines Expansion Plans

Perth Airport’s Operator Westralia Airports Corporation Has Released Details of Its Planned Expansion – Including Consolidating the Domestic and International Terminals – to Meet Strong Growth and Counter Recent Criticism of the Airport. “over the Past Five Years Domestic Passenger Movements at Perth Airport Have Increased by More Than 85 Per Cent and in 2007 Perth Airport Achieved Its Passenger Traffic Forecasts for 2016,” Said Wac Ceo Brad Geatches. “this Rate of Growth is Unprecedented for Large Airports in Australia. This Growth is Set to Continue With Low Fare Carriers Jetstar and Tiger Now Making an Impression on the Western Australian Market.” the Expansion of the Airport Will Cost $1 Billion, and is Expected to Be Funded Through Existing Cashflows. The Program Will Be Completed in Three Stages and Take Up to Seven Years. The First Stage Will Involve Building a New Terminal Dedicated to Regional Flying Adjacent to the Current International Terminal and Will Be Called Terminal Wa. This Will Help Serve the Booming Market for Fly-in/fly-out Operations in Support of the Mining Industry and is Expected to Be Completed Within Two Years. Phases 2 and 3 Will Involve Expanding the Current International Terminal to Also Handle Domestic Flights. This Will Involve Nearly Doubling the Size of the Existing Terminal to Have Up to 40 Gates as Well as New Offices for the Airlines and Government Agencies and Two Hotels Near the Expanded Terminal. This Consolidation Will Take Place in the Next Five to Seven Years. Shorter Term, a Number of Improvements Will Be Made, Including Adding 2000 New Long-term Parking Bays in the Domestic Terminal Precinct, and a New Public Road Connecting the Domestic and International Precincts.

Queensland Govt to Sell Airport Stakes

Queensland Premier Anna Bligh Has Announced That the State Government Will Sell Cairns and Mackay Airports and Will Also Sell Its Stake in Brisbane Airports Corporation. The Government Currently Owns a 12.4 Per Cent Stake in Brisbane Airport Through the Port of Brisbane Corporation, While Cairns and Mackay Airports Are Wholly Owned by Their Respective Port Authorities. The Sales Are Expected to Net Up to $1 Billion, but It Will Also Mean That the Government Will Forego at Least $30 Million in Revenue Which the Airports Generate Each Year. The Sale of the Airports Will Generate Funds to Build a New Hospital in Mackay and to Upgrade Cairns Hospital. “market Interest in the Cairns and Mackay Airports and the 12 Per Cent Share in Brisbane is Anticipated to Be Very High and I’m Confident the Sale Will Deliver the Funds Needed to Cover the New Health Infrastructure,” Said Bligh. Early Reports Are That Queensland Airports Limited, Which Currently Owns Gold Coast, Townsville and Mt Isa Airports, is Interested in the Sale. Other Interest is Likely to Come From Local Infrastructure Funds, Although It is Not Clear if the Current International Financial Crisis is Likely to Impact on the Ability of These Funds to Raise Finance for Such a Purchase.

Aial Takeover Rejected by Nz Govt

the New Zealand Government Has Blocked the Partial Takeover of Auckland International Airport Limited by the Canadian Pension Plan Investment Board. In a Statement Released on April 11, Aial Chairman Tony Frankham Said That the Application for the Investment Had Been Refused by Ministers Parker and Cosgrove. “as This Final Condition Has Not Been Met, Cppib’s Offer Will Not Proceed. Shareholders Who Accepted the Offer Will Now Be Free to Trade Their Shares.” Cppib Had Been Hoping to Gain Approval for It to Take a 40 Per Cent Stake in the Airport and Had Received Approval From the Majority of Aial Shareholders. This Came After Aial Had Previously Rejected an Offer for a Similar Stake From Dubai Aerospace Enterprise, and Had Been in Talks With Another Party Before Recommending the Cppib Offer.

Airports Slammed on Parking Charges

Transport Minister Anthony Albanese Has Instructed the Australian Competition and Consumer Commission (Accc) to Monitor Airport Car Parking Prices, After the Minister Released Figures Showing That Australia’s Major Airports Are Among the Most Expensive in the World. “i Recognise There Are Genuine Public Concerns About Airports Using Their Monopoly Position to Exert Significant Market Power and Charge Higher Prices for the Various Periods of Stay – Particularly Short Term Stays to Drop Off and Pick Up Passengers,” Said Minister Albanese in a Statement. According to the Statement, Perth, Sydney, Melbourne and Brisbane Airports All Charged More for a One Hour Parking Space Than New York’s Jfk Airport, While Melbourne and Sydney Were Even More Expensive Than London Heathrow. The Accc Had Previously Monitored Car Parking Prices at the Major International Airports Until Last Year When the Program Lapsed. During This Time, Total Car Parking Revenue at These Airports Reached $206 Million.

Airport Briefs

Auckland Airport Opened Its New International Arrivals Area on April 3. Sydney Airport Has Reported Earnings Before Interest, Tax, Depreciation and Amortisation of $162 Million for the First Three Months of the Year, a Rise of 6.8 Per Cent on the Same Period Last Year. Revenue for the Period Was Up by 7.6 Per Cent to $200.7 Million and Costs Increased by 12.1 Per Cent to $39.1 Million. After a Period of Technical Difficulties and Almost a Month Off-air, the Sydney Airport Message Board Has Been Relaunched at a New Web Address With a Brand New Interface. The New Board Can Be Found at Www.yssyforum.net. Emirates Has Opened a New Lounge for First and Business Class Passengers at Brisbane Airport, Adjacent to Gate 75. The New Lounge Can Accommodate Up to 172 Passengers.

General Aviation

Government Launches Aviation Policy Paper

Transport Minister Anthony Albanese Has Released a Broad Based Issues Paper on the Aviation Industry Which Will Form the Basis for a National Aviation Policy Statement to Be Released in Mid 2009. “the Aviation Sector is an Essential Part of the Efficient Operation of the Australian Economy,” Says Minister Albanese in the Foreword to the Paper. “the Sustainable Development of Our Aviation Industry Largely Depends Upon Private Investment and the Effective Management of the Businesses Which Make Up the Sector.” “the Australian Government is Committed to Developing a Comprehensive National Aviation Policy Statement (White Paper). This Will Provide Greater Planning and Investment Certainty for the Industry, and Provide Clear Commitments for Users of Aviation Services and Communities Affected by Aviation Activity.” the Paper Has a Broad Scope and Covers All Sectors of Australia’s Aviation Industry. Major Topics Highlighted Include Regulation, Skills, Air Traffic Management, Noise, Climate Change and Security. Submissions on the Issues Paper Are Open Until June 27. These Will Be Used in the Drafting of a Green Paper Which Will Be Released in the Latter Half of the Year and Will Also Be Open for Comment Ahead to the Launch of the National Aviation Policy in Mid 2009. The Review of Aviation Policy Has Been Welcomed as an Opportunity to Overhaul the Industry. Tourism and Transport Forum Australia Managing Director Christopher Brown Said, “the Rudd Government’s Aviation White Paper Needs to Deliver Staged Liberalisation of Air Services, Improved Air Access, Enhanced Investment in Infrastructure and Measures to Address Climate Change.” Sydney Airports Corporation Ceo Russell Balding Also Welcomed It, Saying, “the Minister’s Commitment to Consult All Stakeholders, Including Australia’s Airports, Before Finalising the Government’s Aviation Policies and Directions is Especially Welcome.”

Liberty Launches Xl2 Vanguard

Liberty Aerospace Launched Its Xl2 Vanguard Edition on April 9 at the Sun ‘n Fun Fly in at Lakeland, Florida. Compared to the Base Model Xl2, the Vanguard Will Feature a Gross Weight Increase of 795kg, Toe Brakes, a Waas-enabled Garmin Gps Avionics Suite, Jeppesen Terrain Database and Entry Steps as Standard Equipment. Optional Equipment Includes an All Digital Aspen Evolution Pro Pfd, Garmin Transponder With Traffic Avoidance and a Gps Coupled S-tec 30 Dual Axis Autopilot. The Vanguard Was Launched to Celebrate the Delivery of the 100th Serailled Xl2, and First Delivery is Expected From June This Year.

Adam Aircraft Sold

Bankrupt Vlj and Piston Manufacturer Adam Aircraft Has Been Sold to Russian Owned Aai Acquisitions Inc for Us$10m (a$11m). Despite Strong Interest in the Sale, It is Believed That the Aai Offer Was the Only One to Meet the Criteria Set Down by the Bankruptcy Trustee. Aai is Backed by Russian Private Equity Firm Industrial Investors, Which Owns Russian Air Taxi Operator Dexter. Aai Will Work Towards Certification and Production of the A700 Vlj, and Has Not Made a Decision on Whether to Recommence Production of the A500 Piston Twin.

General Aviation Briefs

Regional Express Has Taken Control of the Civil Aviation Training Academy at Mangalore Airport, Which Trains Cadet Pilots for the Airline. The School Will Be Renamed the Australian Airline Pilot Academy and Will Continue to Operate From Mangalore Airport, Which Had Previously Been Rex’s Joint Venture Partner in the School.

Business Aviation

Embraer Has Flown the Phenom 300 Business Jet From Its Sao Jose Dos Campos Facility on April 29. The Aircraft is Expected to Enter Service in the Second Half of 2009. The Phenom 300 Rolled Out on April 12, Ten Months After the Rollout of the Phenom 100. Cessna Sold Its 500th Citation Mustang Light Business Jet in April. Cessna Has Announced It Will Build Its Large Cabin Citation Columbus in Wichita After It Received Kansas State Government Incentives Worth Approximately Us$30m (a$32m). The Airbus Corporate Jet Centre in Toulouse Has Completed Its First Vip Cabin Refit on an A320 for a Private Customer. The Acjc is Majority Owned by Airbus and Draws on the Engineering Resources of Eads Sogerma, and Plans to Outfit a Number of Airbus Narrow-bodies With Vip Interiors Over the Coming Years.

Security

Qantas Demonstrates New Screening Technology

Qantas Has Been Demonstrating New Security Screening Technology Which Can Detect Concealed Objects Carried on a Person at Its Domestic Terminal in Melbourne. The Provision Portal is a Device Which Uses Millimetre Waves to Scan a Body and Presents a Picture Which Shows Any Foreign Objects Which May Be on the Body. Passengers Being Scanned With the Device Only Have to Walk Into the Unit and Stand With Their Arms Raised for Three Seconds While the Image is Captured and Sensitive Areas and the Face Are Blurred Out. Only the Machine Operator is Able to See the Image Displayed. Qantas Group General Manager Security Geoffrey Askew Said That the Airline is Currently Demonstrating the Equipment in Melbourne to Gauge Public Acceptance of the Technology. “passengers Are Invited to View and Test the Equipment on a Voluntary Basis in Order for Qantas to Gain Customer Feedback on This New Technology,” He Said. “this is a Major Advancement on Current Technology and Will Eventually Deliver Significant Improvements for Security and the Efficient Movement of Passengers Through Airport Terminals.” if the Trial of the Device is Successful, Qantas Could Roll Out the System at Screening Points in a Number of Airports Around Australia.

Air Safety

American Airlines Grounded a Number of Md-80s Again in April for Inspections to Wiring Bundles in the Wheel Wells of the Aircraft as Per an Faa Airworthiness Directive. The Groundings Forced Aa to Cancel More Than 1000 Flights. United Airlines Grounded Its Fleet of 52 Boeing 777s on April 2 After It Advised the Faa That It Had Not Conducted Required Checks on Cargo Fire Suppression Systems. United is the Latest American Carrier to Ground Aircraft for Safety Checks After Southwest, Delta and American Airlines Have Grounded Aircraft Which Had Missed Required Inspections.

Maintenance, Support & Training

V Australia Selects Sia for Maintenance

V Australia Has Selected Sia Engineering Company Ltd to Provide a Fleet Management Program (Fmp) for the Airline’s Fleet of Seven Boeing 777-300ers. Under the Agreement, Siaec Will Be Responsible for All Elements of the Maintenance Program on V Australia’s Aircraft, Including Line Maintenance, Spares Support, Light Maintenance Checks and Component Repair and Overhaul in Sydney, Brisbane and Los Angeles. The Contract is Valued at S$90m (a$70m). Siaec Ceo William Tan Welcomed the Deal, Saying, “With the Experience We Have Accumulated in Handling the Singapore Airlines’ Fleet of B777s, Which is the World’s Largest, Our Customers Will Benefit From Our in-depth Expertise and Comprehensive Range of B777 Services, as Well as the Economies of Scale Generated by Our High Volume B777 Operations.” the V Australia Deal is Siaec’s First Foray Into Managing the Boeing 777 Under an Fmp. The Company Currently Supports 109 Airbus A320s and Boeing 747-400s Under Fmps, of Which 55 Are Currently in Service.

Qantas Partners With Lufthansa Technik on Engines

Qantas is Selling a 50 Per Cent Share of Its Melbourne Based Jet Turbine Services (Jts) to Lufthansa Technik for the Servicing of 200 Qantas General Electric Cf6 and Cfm International Cfm56 Engines. As Part of the Deal Qantas Has Signed a 10 Year Agreement With Lufthansa Technik to Undertake Maintenance on 124 Qantas Group Ge Cf6s Powering 747-400s, 767-300s and A330s, and 66 Cfm56-7 Engines Powering 737-800s. Jts Currently Employs 104 People. Maintenance of Qantas’s Rolls-royce Engines Continues Unaffected at Qantas’s Sydney Facilities.

Boeing Opens Component Repair Business in Melbourne

Boeing Australia Has Opened a New $10 Million Facility at Melbourne’s Tullamarine Airport Which Will House a New Component Repair Business for Both Military and Civil Customers. The New Business Will Offer Maintenance, Repair and Overhaul Services for the Raaf as Well as the Airlines on a Wide Range of Boeing Aircraft. The 5000 Square Metre Facility Will House a State-of-the-art Aircraft Stripping and Painting Booth, a 10 Metre Autoclave and High Temperature Oven for Curing and Repairing Composite Materials. The Business Currently Employs 25 Technical Staff, Including Engineers, Tradespeople and Technicians, and It Has Approvals From the Faa, Easa, Casa and the Civil Aviation Authority of Singapore.

Maintenance, Support & Training Briefs

Ansett Flight Simulator in Melbourne Has Acquired a Fokker 100 Simulator From Alteon Training in Singapore. The Simulator is Expected to Be Available From Late July, and Will Complement the Centre’s Boeing 737, 767, Dash-8, Metroliner, Bae 146 and King Air Simulators.

Cargo

Qantas Buys Jets Transport Express

Qantas Freight Enterprises Has Acquired National Trucking Business Jets Transport Express as Part of Its Expansion. Jets Provides Bonded Transport for International Air Freight With Specialised Trucks Able to Handle Aircraft Containers and Pallets. Jets Delivers Freight From International Flights to Other Major Capital Cities, Which Qantas Freight Says Will Enhance the Efficiency of Terminal Operations and Allow the Company to Better Control Its Domestic Distribution. “the Acquisition of Jets Will Allow Us for the First Time to Offer a Truly Seamless Transfer Between International and Domestic Operations,” Said Grant Fenn, Egm of Qantas Freight. “We Will Introduce Track and Trace Capability and Have the Jets Fleet Added to the Airline Reservation System to Improve the Booking Process for Customer Airlines and Freight Forwarders. Jets Operates Between All Capital Cities, and Has Its Main Operations Bases in Sydney, Melbourne Brisbane and Adelaide.

Cargo Briefs

Canadian Aerospace Company Cascade Aerospace Has Launched a Conversion Program for the Bombardier Dash 8-q400. The First Conversions Will Use Two Eight Year Old, Ex Sas Q400s on Behalf of Swedish Cargo Airline Nord-flyg. Under the Designation ‘q400pf’, the Conversion Involves Removing All Interior Fixtures and Creating an E-class Cargo Cabin With 9g Nets. The Aircraft Will Be Able to Carry a Payload of Up to 9.5 Tonnes of Palletised Cargo and Will Have a Volume of 85 Cubic Metres. Shanghai Based China Cargo Airlines Has Secured an Agreement to Lease Six Boeing 777 Freighters and Will Also Buy Four Aircraft Direct From Boeing. The 777 Freighters Will Replace the Airline’s Six Md-11s, Which Have Been Sold to Gecas and Will Be Phased Out From 2010. The First Boeing 767-300 Boeing Converted Freighter for Ana Flew From St Aviation Services Co in Singapore to Boeing Field in Seattle on April 9. Certification and Delivery of the 767-300bcf is Expected in June. Ana Has Exercised Two Options for Boeing 767-300 Boeing Converted Freighters.

Finance

Investec Launches Aircraft Leasing Business

the Local Arm of South African Banking Group Investec Has Launched an Aircraft Leasing Business. The Investec Global Aircraft Fund Has Raised $73 Million in Capital From Three Superannuation Funds. Investec’s Head of Capital Markets, Jose De Nobrega Said, “the Fund Capitalises on the Investec Group’s Global Franchise in Aircraft Finance and Leasing and Offers Investors – Both Institutions and Clients – the Opportunity to Participate in Transactions Generated by This Core Expertise.” the International Bureau for Aviation Will Manage the Technical Aspects of the Fund, With the Fund Close to Acquiring Its First Aircraft, Which Are Believed to Already Be Leased. Senior Executives From Investec Will Administer the Fund, Including Michael Weiss Who Currently Manages the Bank’s Aircraft Financing Business in London. The Fund Will Rely on Financing Arranged by the Bank to Acquire Its Aircraft. Investec Has Not Announced From Where It is Buying the Aircraft, but There is a Possibility That It May Acquire Some of the Assets Currently Controlled by Troubled Financier Allco. Allco Aircraft Leasing Owns 46 Aircraft Which Are Leased to Airlines Including Qantas, Eva Airways and Emirates.

Emirates Boasts Stronger Profit

While Other Carriers Have Been Contending With a Slowing World Economy and High Fuel Prices, the Emirates Group Has Boosted Its Profit to Aed5.3bn (a$1.54bn) Despite Higher Fuel Costs. The Profit for the 2007/08 Financial Year Ending March 31 is a 54 Per Cent Increase on the Previous Year. Emirates Airline Contributed Aed5bn (a$1.45bn) to the Group’s Bottom Line, on Revenues of Aed19.8bn (a$5.77bn). Despite the Effects of Higher Fuel Prices, Emirates Delivered the Higher Profit Due to Stronger Yields, Higher Load Factors and Other Operating Gains.

People

Qantas Director Paul Anderson Has Resigned After Five Years of Serving on the Board. Qantas Has Yet to Name a Successor to Anderson, Who is Also a Director of Bhp Billiton. Bombardier Has Appointed Guy C Hachey as President and Chief Operating Officer of Bombardier Aerospace; Gary Scott as President of Bombardier Commercial Aircraft; Steve Ridolfi as President of Bombardier Business Aircraft; and James Hoblyn as President of Bombardier Aircraft Services.