News Desk

“our Industry Team Has Made Progress With Structural Testing, Systems Hardware Qualification, and Production, but We Must Adjust Our Schedule for These Two Unexpected Disruptions,” Said Boeing Commercial Airplanes President and Ceo Scott Carson.

Since Promoted (See Separate Item) 787 Program Vice President Pat Shanahan Said That the Company Was “laser Focused” on Preparing for the First Flight, Which Will Require Finalising and Incorporating Some Engineering Changes, Completing Systems Testing, and Qualification and Certification.

The Company Said It is Still Evaluating the Impact on Customer Delivery Dates and Would Notify Customers in Due Course.

The Latest Announcement is the Fourth Delay to the 787, Which Was Originally Scheduled to Fly in August 2007 With First Delivery to Launch Customer All Nippon Airlines in May 2008, but Has Been Overshadowed by the Leaking of a Confidential Airbus Dossier Which Claims That the First 20 787s Will Not Reach Their Performance Specifications.

While Some Analysts Have Raised the Prospect of Airlines Cancelling Their Orders if There is a Further Delay to the Program – Which Has Not Been Ruled Out – Sales of the 787 Appear to Be Strong, With Boeinglisting an Order for 15 787s From an Unidentified Customer on Its Website in Early December.

This Takes Total Orders for the Aircraft Past the 900 Mark, Further Adding to Its Position as the Highest Selling Aircraft Which Has Not Yet Flown.

747-8 Development & Deliveries Delayed

Boeing Has Announced That Development of Its New 747-8 Freighter and Intercontinental Has Been Pushed Back by at Least 10 Months After Delays to the Program Caused by Supplier Issues, Insufficient Engineering Resources and the Machinists’ Strike.

The Company Says Delivery of the First 747-8f to Cargolux Will Now Be in the Third Quarter of 2010 Instead of Late 2009 as It Had Previously Stated, While First Delivery of the Intercontinental to Lufthansa Will Move From Late 2010 to the Second Quarter of 2011.

“our Entire Team Has Worked Hard to Mitigate Growing Schedule Risk on This Program but Have Been Unable to Overcome the Collective Impact of Work Statement Increases to the Original Design, a Tight Supply of Engineering Resources, and the Recent Machinists’ Strike,” Said Boeing Commercial Airplanes President and Ceo Scott Carson. “we Are Clearly Disappointed in What This Schedule Change Means for Our Customers, Employees, Suppliers and Other Stakeholders.

However, It is the Appropriate and Prudent Decision to Ensure a Successful Program, and We Are Committed to Working With Our Customers to Mitigate Any Disruption It Causes Them. ” “essentially, the Airplane We’re Building for Our Customers Today Has More New Content Than We Originally Planned,” Noted Boeing’s Vice President Marketing, Randy Tinseth, in His Blog. “the Program Has Also Been Affected by Limited Engineering Resources Within Boeing. ”

Boeing Restructures Commercial Airplanes Executives

Boeing Announced on December 10 That It is Restructuring Its Commercial Airplanes (Bca) Business and Reshuffling Key Executives in Order to “better Align Resources Across Its Development and Production Programs and Strengthen Oversight of Its Global Supply Chain. ” Effective From December 10, the Company’s Supplier Management, Fabrication, Propulsion Systems and Manufacturing and Quality Functional Organisations Have Been Brought Together Under a New Portfolio Called Supply Chain Management and Operations. The New Super- Portfolio Will Be Led by 53 Year Old Ray Conner, Who Was Most Recently Vp of Sales for Commercial Airplanes. Conner Will Be Succeeded in That Role by Marlin Daley, Who Has Led Bca Sales Efforts in Europe, Russia and Central Asia.

The Biggest Change is the Appointment of 787 Vice President and Program Manager Pat Shanahan to the Role of Vp New Airplane Programs, Which Will Give Him Oversight of the Recently Delayed 747-8 Program as Well as Continued Oversight and Accountability for the Troubled 787. Scott Fancher, Who Previously Led Boeing’s Missile Defence Business, Has Been Appointed as Vp and General Manager of the 787 Program.

Bca President and Ceo Scott Carson Said That the Changes Would Help the Manufacturer Improve the Execution of Its Supply Chain and Development Programs, and Would Also Give Shanahan and Conner Greater Managerial Focus. “together, Pat and Ray Will Work in Strong Partnership to Drive Results From Our Entire Production System and Supply Chain,” He Said.

Bca Also Announced That Carolyn Corvi, Who Led the Previous Airplane Programs Organisation, Will Retire.

Fears for Airbus and Boeing as Chinese Carriers Told to Defer Deliveries

the Civil Aviation Administration of China Has Advised Chinese Airlines to Defer or Cancel Deliveries of New Aircraft as the Worldwide Economic Slump is Expected to Slow Demand for Domestic Air Travel, Raising Fears That Boeing and Airbus May Find Their Order Books Compromised.

Several of the Major Stateowned Chinese Airlines Struggled for Most of 2008 Thanks to a Major Slump in Air Travel Following the Beijing Olympics in August That is Expected to Continue as the Chinese Economy Slows. China Southern and China Eastern Airlines Have Publicly Stated That They Have Begun Grounding Aircraft and Both Have Already Sought Assistance From Their Provincial Governments. Hainan Airlines is Also Said to Be Close to a Deal for Financial Assistance.

According to the Latest Publicly Available Figures, Airbus Holds Orders for 275 Aircraft From Chinese Airlines and Boeing 312. Both Had Been Counting on Strong Growth From China to Counterbalance Slower Demand From European and North American Carriers.

Boeing Strike Pushes Back 777f Deliveries

Delivery of the First of the Final Member of Boeing’s 777 Family, the 777f Freighter, to Air France Has Been Delayed by Up to Three Months Following the Machinists’ Strike Which Recently Saw Boeing’s Commercial Production Grind to a Halt for 58 Days.

While the Two Development Aircraft Were Able to Continue Their Flight Test Campaign During the Strike, Production of the First Customer Aircraft Haltedduring the Strike, Meaning It Will Now Not Be Delivered Until Sometime in the First Quarter of 2009 Rather Than the Originally Planned December 2008 Schedule. The First Development Aircraft is Also Due to Go to Air France but Will Require Refurbishment and Removal of Flight Test Instrumentation Before Delivery.

Airbus to Cut Production?

Airbus Has Said It May Cut Production in 2009 in the Face of Possible Dwindling Orders From Airlines Hit Hard by the Global Credit Crunch.

Speaking to a Group of French Aerospace Reporters, Ceo Tom Enders Said That Following November’s Decision to Cancel Plans to Increase Production Rates of Its A320 and A330 Lines, the Manufacturer Would Closely Monitor the Situation in the Face of Possible Order Cancellations and Deferrals.

“we Are Not in a Bad Position as We Go Into This Situation but We Do Not Exclude Further Action if the Situation Deteriorates Further,” He Told the Gathering.

Enders Also Said That Airbus Would Look to Provide More Aircraft Financing to Airlines Than It Has Done in the Past. “much Depends on How Long the Credit Squeeze Lasts,” He Said. “in Principle, Financing Will Remain Lucrative as Aircraft Are Mobile Assets, Especially Modern, Fuel Efficient Ones. There Are Credit Agencies That Can Provide Backstop Guarantees and We Are Also Willing to Pull Our Weight. I Am Not Willing to Give Numbers but in the Past We Had Financing of Over Us$5 or 6 Billion and This Did Not Kill the Company. ”

Boeing Starts Job Cuts

Boeing Management Has Warned Its Employees That the Company Will Be Looking at Implementing “additional Cost Control” and an Undetermined Number of “employee Reductions” in 2009, Following a Review of Its Long Range Business Plan.

“we Are Fortunate to Have a Record Backlog of Orders in Our Commercial and Military Businesses That Provide Us the Foundation for Weathering What Clearly Has Become a More Challenging Business Environment,” Chairman, President and Ceo Jim Mcnerney Said in a Memo to Employees Dated November 20. “to Protect the Competitiveness and Innovation Responsible for Building Our Record Backlog – and to Best Serve Our Customers – We Must Respond Aggressively to These Business Realities. ” “where Reductions Occur, We Will Do Everything We Can to Mitigate the Impact on Our Team Through Natural Attrition, Release of Outside Contract Hires and Job Transfers Within Boeing,” Added Rick Stephens, Boeing’s Senior Vice President of Hr. Indeed, the Cuts Have Already Started, With About 800 Positions Due to Be Cut From Boeing’s Integrated Defense Systems (Ids) Workforce in Wichita, Kansas, Following the End of a Number of Defence Programs and Further Delays to the Usaf Tanker Program.

Nutplate Issues for Boeing

Boeing Has Reportedly Confirmed That Nutplate Fasteners Used in 737s Which Were Found in Mid November to Have Been Incorrectly Treated for Corrosion Have Also Been Installed on 747s, 767s and 777s.

The Seattle Post Intelligencer Reported That the Nutplates, Which Are Installed on Aircraft Components Made by Boeing Supplier Spirit Aerosystems, Have Found Their Way Onto All Boeing Airliners Delivered Since September 2007. While Boeing and the Us Faa Say They Present No Immediate Safety Risk to Aircraft, They Will Need to Be Replaced During Aircraft Heavy Maintenance Periods as They Have Not Been Treated With the Required Cadmium Anti-corrosion Coating.

Commercial Briefs

• Wa Based Composites Group Quickstep Holdings Has Delivered Its First Aerospace Parts Manufactured at Its Fremantle Facility. The Parts Consisted of Two Metre Long Carbon Fibre ‘pods’, Which Are Bound to Be Used for Aerial Photography• Bombardier Has Announced That It is Focusing on Bringing the 110-seat C110 Cseries to Market Ahead of the 130-seat C130. Bombardier is Continuing to Work With Launch Customer Lufthansa to Firm Up Its Order, and is Also Said to Be in Talks With Qatar Airways and a Number of Airlines in China About Possible Orders for the Cseries.

• Airbus Has Announced the Establishment of the Airbus Corporate Foundation Which It Says is Aimed at Facilitating Charitable Activities Worldwide Under One Roof.

• Indonesia’s Kartika Airlines Has Signed a Heads of Agreement for 15 98-seat Sukhoi Superjet 100-95bs and 15 Options.

• Boeing Has Selected Malaysia’s Asian Composite Manufacturing (Acm) to Provide Elevator and Rudder-machined Honeycomb Core for Its 777 Line. The Rudder Components Manufactured by Acm Will Be Shipped to Boeing Subsidiary Hawker De Havilland at Bankstown in Sydney for Integration Into the Final Rudder Structure, Prior to Being Shipped to Seattle.

• Boeing’s More Than 20,000 Engineers and Technical Workers Agreed to a New Four Year Pay Deal on December 1. The New Deal, Which Expires on October 6 2012, Will See 13,898 Engineers and 6576 Technical Workers Represented by the Society of Professional Engineering Employees in Aerospace (Speea) Gain Pay Rises of an Average of Five Per Cent Per Year, Pension Increases, as Well as Concessions About the Amount of Future Work Outsourced by Boeing and the Use of Contract Non-union Engineers.

Military “wedgetail Keeps Me Awake Most” – Combet

Parliamentary Secretary for Defence Procurement, Greg Combet, Has Identified the Troubled Wedgetail Aew&c Program as an Ongoing Project of Concern to the Government.

Combet Said He Had Recently Been in Discussions With Both the Dmo and Prime Contractor Boeing About the Project Which is Running at Least 38 Months Late. “this Project Has Experienced Some Well Publicised Issues,” Combet Said in an Address to the Australian Defence College on November 24. “however, It is a Vital Capability for the Adf and We Need It to Succeed. Therefore a Lot of Work Has Gone Into Addressing the Current Issues.

Just Last Week There Was a Summit Held in Canberra Where We Discussed How We Are Going to Move Things Forward.

I Am Pleased to Say Progress Was Made in Those Discussions but There is Much More Work to Be Done Yet. This is Probably the Project That Keeps Me Awake the Most at Night. ” the Wedgetail Project Office Recently Told Aa That, Since We Had Interviewed Project Head Avm Chris Deeble Back in July, Things Had Not Progressed as the Dmo Would Have Wished, and That Further Delays on the Project Are Possible.

Combet Also Said That Projects Such as the Seasprite Had Led Him to Establish a New Unit Within the Dmo to Specifically Oversee Projects of Concern. “this Experience Left Me With a Lasting Impression,” He Said. “the Mismanagement of the Seasprite Helicopter Project Had Resulted in a Loss of Over $1 Billion of Taxpayers’ Money for No Result. This Was Money That Has Not Contributed to the Adf’s Capability in Any Way. Not Only Have We Lost This Money but Our Naval Aviation Capability, Especially in the Area of Anti-submarine Warfare, Has Suffered. ” the New Unit is “headed by a Three Star Manager Within Dmo, the General Manager – Programs, Warren King,” Combet Added. “he is Assisted by a Team of People Who Report to Me Monthly on the Progress of Remediation of Some of These Projects. ”

Fading Hopes for Rnzaf Fast Jet Resurrection

Reports That the New Zealand Government Was Looking to Resurrect Part of the Country’s Disbanded Fast Jet Fleet Have Been Dismissed as “unlikely” by New Prime Minister John Key.

The Rnzaf’s 17 a-4k Skyhawk Strike Fighters and 17 Mb-339 Macchi Jet Trainers Were Retired in 2001 by the Former Labor Government of Helen Clark, and a 2007 Bid to Resurrect the Macchis to Provide Training for Rnzaf P-3, C-130 and 757 Crews Was Quashed by Then Defence Minister, Phil Goff.

In Response to Questions by Nz Media, New Defence Minister Wayne Mapp Was Re-ported as Saying a New Defence White Paper Due in 2009 Was Considering Whether It Would Be “desirable to Retain Some Level of Jet Training Capability. ” but Follow-up Questions Put to Prime Minister Key Have Seen These Hopes Fade, With the New Pm Saying It Was “extremely Unlikely” Such a Move Would Be Approved, Adding That He “would Have Thought the Defence Force Has Much Greater Priorities. ” the Aircraft Have Been Maintained in Storage Since Being Retired, With the Macchis Flown Regularly to Maintain Airworthiness, While Bids by Us Company Atac to Buy the Skyhawks Have Been Blocked by the Us State Department.

Boeing Renames Australian Unit

Boeing’s Australian Integrated Defense Systems (Ids) Business Unit Was Renamed Boeing Defence Australia From December 8.

Boeing Has Restructured Much of Its Australian Defence Business in Recent Months With Sectors of the Business Now Reporting Directly to Their Us Parent Business Units, and the Company Says the New Name Builds on That Reorganisation.

“these Changes Bring Our Australia Operations and Boeing’s Global Ids Businesses Into Closer Alignment, Allowing Us to More Effectively Provide Support and Solutions to Our Customers,” Said Jim Albaugh, President and Ceo of Boeing Ids.

Boeing Defence Australia is Headed Up by John Duddy, Who Has Been Appointed as Vice President and Managing Director of the Unit. Duddy Has Been With Boeing for 26 Years, Having Most Recently Worked as Program Director of Gps Programs for Ids Space and Intelligence Systems.

F-35 Delayed Two Years?

The Reputable Inside the Air Force Trade Publication Has Reported That the F-35 Jsf Program May Slip a Further Two Years and Cost an Extra Us$15bn (a$22. 9bn) Before Its Development is Finished.

The Report Says an Independent Team of Analysts Brought in by the Pentagon Had Made the Prediction in Their Report, Which It Says Has Been Largely Ignored by Deputy Defense Secretary Gordon England. It Says England is Instead Hoping a More Optimistic Report Compiled by Program Managers and Lockheed Martin Officials Means Only Us$480m ($a733m) Would Need to Be Added to the Program in Fy2010, but No Additional Funding Other Than That Already Allocated Would Be Required in Future Years.

“while Some (Development) Budget Challenges Remain, We Are Confident That We Will Complete the Program at a Far Lower Cost Than Forecast” by the Pentagon Cost Estimators, Defense Undersecretary for Acquisition, John Young, Told Inside the Air Force.

Meanwhile, the Planned First Vertical Takeoff and Landing for the First Stovl F-35b, Bf1, Has Reportedly Slipped Into the Second Quarter of 2009. The Aircraft First Flew in Conventional Mode in June, but Has Been Grounded Since Mid August for Modifications and for a Flaw in the Stovl Version of the F135 Engine to Be Fixed Prior to Re-commencing the Test Program.

The Engine Has Required a Redesign to One of Its Compressor Stages Following a Blade Failure on a Test Engine Last Year Which Led to the Stovl Flight Test Delays. Lockheed Martin Was Expecting the First Redesigned Engine to Be Delivered in January, Before It Builds Up to Vertical Flight Through a Progressive Flight Test Campaign.

P3 Accord Wins Engineering Award

the P3 Accord, an Alliance Between the Dmo’s Maritime Patrol Systems Program Office (Mpspo), Australian Aerospace and Bae Systems Australia for the Support of the Raaf’s 19 Orion Maritime Patrol Aircraft, Has Won an Award at the Engineers Australia National Excellence Awards.

The Award Recognised the Alliance’s Success in Rapidly Acquiring, Integrating, Testing and Fielding the Aircraft’s Operational Support Tactical Common Data Link (Tcdl) in 2007, Allowing the Aircraft to More Effectively Operate With Other Coalition Assets in the Middle East.

“the Upgrade Enables Raaf Orion Crews to Provide Coalition Commanders With Valuable Real Time Aerial Views of Their Surrounding Environment,” Officer Commanding Mpspo, Group Captain Tim Pedley, Said. “the Introduction of Tcdl Technology Means That Detailed, Aerial Visuals of an Area Can Be Beamed to Ground Troops, Day or Night, to Help Identify Hostile or Suspicious Activities. This Has Never Been Successfully Done by Any Major Australian Defence Systems to Date, Let Alone From an Aircraft to Individual Soldiers. ” Following the Successful Integration With Aircraft Deployed to the Middle East, the Tcdl Upgrade Was Recently Approved for Application for the Entire Raaf Ap-3c Fleet.

Norway Chooses F-35

the F-35 Joint Strike Fighter Has Been Chosen by the Norwegian Government to Replace the Country’s F-16 Fighter Force After an Extensive Comparison Against the Saab Gripen Ng.

The Evaluation Found Both Aircraft Fully Acceptable in a Number of Different Scenarios, but That the F-35 Was “considered to Be the Better of the Two Candidates Regarding Intelligence and Surveillance, Counter Air, Air Interdict and Anti-surface Warfare,” According to Defence Minister Anne-grete Strøm-erichsen. The F-35 Was Also Found to Be Superior in the “substantial Opportunities” the Jsf Program Provided for Norwegian Industry.

No Mention of Aircraft Numbers or Delivery Timetables Was Made.

Further Tests for Jdam-er

the Raaf and Boeing Subsidiary Hawker De Havilland Conducted Further Tests of the Australian Developed Joint Direct Attack Munition Extended Range (Jdamer) System at the Woomera Test Facility in August.

The System, Which Sees a Wing Kit Added to the Standard Jdam Gps Guided Weapon, Thus Providing the Ability to Glide From Launch Giving Vastly Increased Range, Was Initially Developed by the Dsto in the 1980s and 1990s Before Being Taken on by Hdh as a Possible Commercial Venture.

The Tests Involved Dummy Weapons Being Dropped From Ardu’s Two F/a-18a/b Instrumented Test Aircraft at Various Speeds, Altitudes and Attitudes. While the Two Major Test Programs to Date Have Been Successful, There is Currently No Active Project to Acquire the Weapon for the Raaf.

Military Briefs

• Defence Minister Joel Fitzgibbon Has Flagged the Possibility of Sharing Pilots With Airlines in Order to Prevent the Loss of Raaf Pilots to Permanent Jobs Flying Airliners. Fitzgibbon, Who Reportedly Made the Comments While Visiting Defence Facilities in Spain, Said He Was Looking at Establishing “partnerships” With Airlines Like Qantas in Order to Get the “maximum Utilisation Out of a Limited Number of People. ” • Airbus Has Said It Does Not Expect Its A400m Transport to Fly Now Until at Least the Second Quarter of 2009 Due to Ongoing Troubles With the Aircraft’s Engines. The Company Says Engine Supplier Europrop Had Missed “several Dates” for Delivery of the Tp400-d6 Turboprop Engine’s Fadec Software, and Does Not Expect a Resolution of This Issue Before the Middle of 2009 “at the Earliest”. A C-130 Engine Testbed Fitted With One Tp400 Was Expected to Make Its First Flight in December.

• the Uk is Reportedly Looking at Acquiring Additional C-17 Airlifters for the Raf to Cover Its Transport Shortfall Following Further Delays to the A400m Program. The Raf Was the First Foreign Operator of the C-17 and Currently Has Six Aircraft.

The Raf is Also Considering Further Life Extension Work on Its Ageing C-130k Fleet as Well as Additional C-130js.

• the Nato Airlift Management Agency (Nama) Has Signed a Letter of Offer and Acceptance With the Us Government for the Acquisition of Two Boeing C-17s. The Aircraft Will Be Based at Papa Air Base in Hungary and Will Be Operated by a Consortium of Nato Nations Including Bulgaria, Estonia, Finland, Hungary, Lithuania, the Netherlands, Norway, Poland, Romania, Slovenia, Sweden and the Us.

• Canada Has Ordered Life Extension Wing Kits From Lockheed Martin for 10 of Its Cp-140 Aurora (P-3c Orion) Surveillance Aircraft Which Will See the Aircraft’s Service Lives Extended by 15,000 Flight Hours or 20 to 25 Years.

• an Raaf Hawk 127 From 76sqn Ran Off the Edge of the Runway at Raaf Base Williamtown on December 2. Its Pilot Reported Braking Problems on Landing Prior to the Main Wheel Tyres Deflating and the Aircraft Leaving the Runway.

• Singapore Technologies Aerospace is to Upgrade Four of Indonesia’s C-130b Hercules.

The Aircraft, Which Were Delivered in 1961 and Have Been Grounded for Several Years, Will Be Refurbished to the Tune of Up to Us$51m (a$79m) Including Structural and Avionics Upgrades.

Including the Four Grounded Aircraft, Indonesia Has 19 C‑130b/ H and L-100 Transports in Its Inventory at Varying Levels of Operational Effectiveness.

• the F-35 Cooperative Avionics Test Bed (Catbird) Returned to the Air on November 14 After the Installation of F-35 Mission Systems Equipment and 20 Engineering Stations. The Aircraft, a Highly Modified 737-300 Airliner, Will Be Used to Conduct Airborne Testing and Validation of the Fully Integrated F-35 Sensor Suite Before the Systems Are Tested in an Actual F-35 Aircraft.

• the 737-700 Based Operational Flight Trainer (Oft) Simulator Built by Thales for the Raaf’s Delayed Wedgetail Aew&c Aircraft Has Been Awarded Zero Flight Time Status by Accreditation Agency Simulinc, Allowing Raaf Wedgetail Pilots to Train on the Simulator.

• the Australian Developed Bae Systems Nulka Shipborne Anti-missile Decoy System Has Achieved the Milestone of Its 100th Installation Aboard a Us Navy Vessel.

• Indonesia Has Signed a Contract With Rosoboronexport for Six Su-30mk Fighters. The Deal is Dependent on Indonesia Being Able to Obtain a Us$1 Billion Loan From the Russian Finance Ministry to Fund the Acquisition.

• Lockheed Martin’s F-35a Aa-1 Development Aircraft Broke the Sound Barrier for This First Time During Its 69th Test Flight Recently. The Aircraft Achieved Mach 1. 05 at 30,000ft in an Area Between Forth Worth and Wichita Falls in Texas, and Carried 2500kg of Dummy Weapons in Its Internal Weapons Bays.

Airlines

Qantas Board Gives Green Light to Ba Merger Talks

the Board of Qantas Has Given the Green Light for Ceo Alan Joyce and His Management Team to Continue Discussions With British Airways on a Possible Merger, but Joyce Has Warned That There Are Still Significant Hurdles to Any Deal Between the Two Airlines.

It is Understood That the Airline’s Board at Its December 10 Meeting Gave Its Management Approval to Continue Discussions With Ba on Its Proposed $8 Billion Merger Through a Dual-listed Company Structure, Which Would See the Two Companies Maintain Their Own Management Under a Holding Company.

Nevertheless, Joyce Warned in an Address to the Australia- Israel Chamber of Commerce Two Days Before That There Were Still Major Issues to Be Resolved Before the Merger Could Feasibly Happen. “there is No Guarantee That Any Transaction Will Beconcluded,” Said Joyce. “there Are a Number of Significant Matters That Still Need to Be Resolved, Including Agreeing an Appropriate Merger Ratio and Resolving Issues Around Ba’s Pension Fund and the Broader Economic Outlook. ” “qantas Comes to These Negotiations From a Position of Strength. We Will Only Proceed With This Transaction if We Are Assured That It Will Maximise Value for Qantas Shareholders,” He Added.

For More on the Proposed Merger, Refer Geoffrey Thomas’s Feature Article From Page 42 of This Issue.

Qantas Cuts Capacity, Profit Outlook

Qantas is Planning New Capacity Cuts Equivalent to Grounding 10 Widebody Aircraft, and Says That It Now Expects Its Profit Before Tax for the 2008/09 Financial Year to Be “around $500 Million”, Compared to Its Record $1. 4 Billion Result for 2007/08.

“we Are in Unpredictable Times and the International Business Market, in Particular, Has Slowed,” Then Ceo Geoff Dixon Said on November 25. “our Actual Flying in the Next Six Months Will Be Four Per Cent Below the Equivalent Period in 2008. ” the Capacity Cuts Include Not Taking Up the Planned Leases of Two Airbus A330‑200s, Reducing Flying Hours of the Current Fleet Equivalent to Withdrawing Six Boeing 747‑400s, Three 767-300s and One A320 Through to Mid 2010, and Cancelling All Planned Domestic Growth for Qantas and Jetstar.

“by Taking This Action Now We Will Have the Flexibility to Switch Growth Back on as Soon as Market Conditions Improve,” Dixon Said, Noting That “qantas’s Domestic Operations, Jetstar, Qantas Frequent Flyer and Qantas Freight All Continue to Perform Well. ” No Further Staff Cuts Are Planned Beyond the 1500 Redundancies Announced Earlier in the Year, but the Airline Will Implement an “accelerated Leave Program”.

Despite Recent Falls in the Price of Oil, the Airline Says Its Fuel Bill for the Current Financial Year Will Be $750 Million Higher Than for 2007/08. Nearly All Its Fuel Requirements Are Now Hedged at a Worst Case Price of Us$106 Per Barrel, but the Airline Has an 86 Per Cent Exposure to Falling Fuel Prices for the Remainder of the Year.

Air Nz Oct Traffic Down, Jobs Cut

Air New Zealand Has Reported a 1. 8 Per Cent Fall in Passenger Numbers to 971,000 for the Month of October, Just Days After Revealing Plans to Cut 200 Jobs.

Air New Zealand Says the Trans Tasman and Pacific Markets Are Particularly Challenging, With Passenger Numbers Down 9. 3 Per Cent for the Month. Long Haul Passenger Numbers Were Down 3. 6 Per Cent in the Month, While Domestic Passenger Numbers Grew 1. 8 Per Cent. During October the Airline Cut Capacity by 1. 5 Per Cent, Resulting in a 1. 9 Percentage Point Drop in Load Factor to 76. 7 Per Cent. The Airline Says Its International Capacity in the Fourth Quarter of the 2009 Financial Year Will Be Down 13 Per Cent on the Previous Year.

The Traffic Figures Follow Air New Zealand’s November 19 Announcement That It Would “disestablish” Up to 200 Full Time Jobs, Including 100 Long Haul Flight Attendants. Other Jobs Will Be Cut in Operations and Management Areas.

“we Have Been Working Hard on a Series of Initiatives to Minimise the Need for Redundancies,” Ceo Rob Fyfe Said.

“however, It Has Become Clear That These Measures Will Not Fully Address the Excess Staff Levels We Now Have as a Result of These Capacity Reductions. ” Air New Zealand is Also Selling and Leasing Back Two of the Four 777-300ers It Has on Order From Boeing to Dubai Aerospace Enterprise Capital to Free Up Liquidity. The Two 777s (the Second and Third of the Four) Are Due for Delivery in January and March 2011.

Vb to Cut Capacity?

Ceo Brett Godfrey Told Virgin Blue’s Agm on November 28 That the Airline May Be Forced to Cut Capacity by Up to Nine Per Cent in the New Year if the Weak Bookings It Experienced in Novemberwere Repeated in December.

Godfrey Said a Capacity Review Would Be Presented to Vb’s Board in Mid December.

“there is No Doubt There Are Some Markets in Australia Today That Need Some Capacity to Come Out,” He Was Reported as Saying.

A Day Earlier Vb Reported a 2. 6 Percentage Point Drop in Traffic in October Compared to the Same Month in 2007.

V Australia to Delay Ramp Up?

Virgin Blue International Offshoot V Australia Has Reportedly Asked Boeing to Defer Delivery of Its Third and Fourth 777-300ers So That It Can Ease More Slowly Onto the Pacific After Missing the Traditionally Busy Christmas Launch Window Due to Boeing’s Recent Machinists’ Strike.

The Strike, Which Delayed the Delivery of Its First Two Aircraft From November to January, Reportedly Cost V Australia as Much as $3 Million After It Was Forced to Re-book Passengers With Other Airlines and to Pay Crews and Staff Who Had Been Scheduled to Start in December.

The Delivery Delay Has Forced V Australia to Launch Services in the Traditionally Quieter Shoulder Period After the Australian Summer School Holidays Rather Than at the Start of the Holidays in Mid December as It Had Hoped, Meaning Initial and Forward Bookings Will Be Weaker. The Third and Fourth Aircraft Were Due to Have Been Delivered by April at Which Time the Airline Had Hoped to Have Been Operating for Almost Five Months.

Emirates Profit Down 88 Per Cent

Emirates, Once Thought Recession Proof and Immune to World Oil Price Fluctuations by Some Observers, Has Recorded a Drop in Profit of 88 Per Cent for the First Half of Its Financial Year to September 30.

The Dubai Based Airline Says the Drop in Profit From Dhs2. 36bn (a$992m) for the Same Period Last Year to Just Dhs284m (a$119m) is Mostly Attributable to Rising Fuel Costs, as the Airline Otherwise Recorded Healthy Increases in Overall Revenues of 31 Per Cent, Passenger Traffic of 11 Per Cent, Passenger Yield of 20 Per Cent, and Cargo Volume of 13 Per Cent.

“the First Half of the Year Has Been Very Tough for the Airline Industry, With Record Fuel Prices Forcing Many Carriers to Shut Shop or Consolidate,” Emirates Group Chairman and Ceo Sheikh Ahmed Bin Saeed Al-maktoum Said.

The Airline Says Its Fuel Spend in the First Half Was Dhs9. 2bn (a$3. 87bn), More Than Double That of Last Year’s Dhs4. 1bn (a$1. 73bn).

Qantas Names A380s

Qantas Has Revealed the Names It Will Bestow on All 20 of Its Airbus A380s It Has on Order.

These Are: Vh-oqa – Nancy-bird Walton – the First Woman to Fly a Commercial Aviation Service in Australia; Vh-oqb – Hudson Fysh – One of the Founders of Qantas and the Airline’s First Managing Director; Vh-oqc – Paul Mcginness – One of the Founders of Qantas; Vh-oqd – Fergus Mcmaster – One of the Founders of Qantas and Its First Chairman; Vh-oqe – Lawrence Hargrave – Inventor of the Box Kite; Vh-oqf – Charles Kingsford Smith – Made the First Trans-pacific Flight From the Usa to Australia in 1928, and Founded the Original Australian National Airways; Vh-oqg – Charles Ulm – Copilot on Kingsford Smith’s Record-breaking Trans-pacific Flight in 1928 and Co-founder of Australian National Airways; Vh-oqh – Reginald Ansett – Founder of Ansett Airways; Vh-oqi – David Warren – Invented the Black Box Flight Recorder; Vh-oqj – Bert Hinkler – Pilot of First Solo Flight From Britain to Australia, in 1928; Vh-oqk – John and Reginald Duigan – First Australians to Design, Build and Fly a Powered Aircraft, in 1910; Vh-oql – Phyllis Arnott – First Australian Woman to Gain a Commercial Pilot’s Licence; Vh-oqm – Keith Mcpherson Smith and Ross Mcpherson Smith – Winners of the Famous Air Race Between London and Australia in 1919; Vh-oqn – Lester Brain – Piloted One of the First Qantas Routes in 1925 and Ferried the First Wartime Catalina Flying Boat Delivered by Qantas Empire Airways in 1941. Appointed General Manager of Trans- Australia Airlines in 1946; Vh-oqo – Lores Bonney – First Woman to Fly Solo Around Australia, in 1932, and the First Woman to Fly Solo From Australia to England, in 1933; Vh-oqp – Norman Brearley – Founder of Western Australian Airways, Which Operated Australia’s First Scheduled Air Service on December 5 1921; Vh-oqq – P G Taylor – Navigator and Copilot Alongside Charles Kingsford Smith and Charles Ulm on Many Record-breaking Flights Between Australia and the Us and England and Australia, and Was Awarded the Empire Gallantry Medal in 1937; Vh-oqr – Scotty Allan – Copilot Alongside Charles Ulm and P G Taylor on the 1933 Record-breaking Flight From England to Australia and Later Joined Qantas and Flew Dh. 86s on the Brisbane- Singapore Route; Vh-oqs – John Flynn – Founder of the Royal Flying Doctor Service; Vh-oqt – Gaby Kennard – First Australian Woman to Fly Solo Around the World, in 1989.

Anger at Dixon’s $12m Package

Qantas Shareholders Nearly Voted Down the Airline’s Remuneration Report for the Last Financial Year at the Company’s Agm as It Showed Now Retired Ceo Geoff Dixon Taking Home a Wages and Shares Package Worth Nearly $12 Million for the Year.

Board Member (and Former Ceo) James Strong Said the Package Included Special Payments Made to Dixon to Stay on at the Airline After the Failed Private Equity Takeover Bid, and That the Accounting Value of the Package is Much Higher Than Its True Value Because of Big Falls in the Airline’s Share Price.

Dixon’s Package Included a Base Salary of $2. 31 Million, $3. 01 Million in Cash Incentives, and Shares With a Book Value of $6. 39 Million.

Dixon Handed Over to New Ceo Alan Joyce at the November 28 Agm.

Tiger’s $12m Startup Loss

Tiger Airways Australia Has Reported an Operating Loss of a$12. 2m for Year Ending March 31 2008.

The Airline, Which Only Began Operations in November 2007, Says the Loss Was “below Initial Forecast and All Operations Have Been Fully Funded by Positive Cash-flow. ” in Its First Four Months of Operations Tiger Launched 12 Routes to 13 Destinations, and Says That Start-up Costs for Those Routes and “total Pre-operating Expenses of a$7. 9m Associated With the Deployment of Aircraft, Recruitment and Training of Staff, Administration in Advance of Operations and the Aoc Application Process Have Been Fully Expensed. ” Parent Tiger Aviation Reported a Consolidated Profit After Tax of S$9. 9m (a$10. 0m) for the Year, a S$24. 7m (a$25. 0m) Turnaround on the Previous Year.

Tiger Australia Launched and Continues to “operate on a Cash-flow Positive Basis,” Its Parent Reported.

Timor Air Established

Timor Air, a New Airline for the Democratic Republic of Timor-leste (East Timor), Has Been Established in Partnership With Brisbane Based Skyairworld.

The Partnership Will See Skyairworld Operate a 94-seat Embraer E-190 on Behalf of Timor Air From Late February on the Darwin-dili-denpasar Route, While Skyairworld Will Also Provide Connections Through an Extension to Darwin of Its Successful Brisbane to Cloncurry Services.

Timor Air Has Been Established by Australian Based Timorese Expat Jerry Desousa.

“the Creation of Timor Air is the Result of a True Partnership Between Timor-leste and Australia,” He Said. “this New Airline Will Help Take Our Country Forward, Increase Tourism and Create Employment Opportunities for the Timorese People. ” Skyairworld Took Delivery of Its Second E-190 on December 4, Its Third is Due in January, and a Possible Fourthwould Land Next December. At Least One Will Feature a Hybrid Saw/timor Air Colour Scheme and Will Be Based in Darwin. The Aircraft Will Be Configured With 10 Business and 84 Economy Class Seats.

Asia Pacific Carriers Expected to Double Losses in 2009

Iata Says That Airlines in the Asia Pacific Region Are Likely to See Their Losses for 2009 Double to Us$1. 1bn (a$1. 7bn), Although Globally Airlines Are Expected to Post a Reduced Collective Loss of Us$2. 6bn (a$3. 9bn).

With Japan in a Recession and Economic Growth Slowing in India and China, It is Expected That the Region’s Carriers Will Bear the Brunt of a Drop in Both Passenger and Cargo Traffic During the Year Ahead. A Fall in Exports From China is Also Likely to Be the Major Cause of an Expected Five Per Cent Drop in Air Cargo Traffic, Which Will Be Felt Hardest in the Asia Pacific Region as It Accounts for 45 Per Cent of the World’s Air Cargo Traffic.

Globally, Iata Predicts That Airlines Will Lose Us$2. 6bn (a$3. 9bn) During 2009, Down From Us$5bn (a$7. 5bn) in 2008, While Revenues Are Expected to Fall by Seven Per Cent to Us$501bn (a$756bn). The Improvement is Expected to Be Driven by a Major Turnaround in Results From Us Carriers While Losses Will Increase in Europe, the Middle East, Latin America and Africa, in Addition to the Asia Pacific Region.

“north America Will Be the Only Region in the Black, but the Expected Us$300m (a$452m) Profit is Less Than One Per Cent of Their Revenue.

2009 Will Be Another Tough Year for Everyone,” Said Iata Ceo and Director General Giovanni Bisignani.

Nevertheless, the Lower Price of Oil is Expected to Have a Positive Effect on a Number of Airlines, With Iata Predicting That Brent Crude Oil Will Average Us$60 (a$90) a Barrel, Compared to the Average of Us$100 (a$151) During 2008.

Virgin Blue Improves Premium Economy

Virgin Blue Has Announced a Series of Upgrades to Its Premium Economy as It Tries to Capture More of the Business Traveller Market.

In Addition to the Extra Space the Seats Already Provide on Its 737 Domestic Fleet, Premium Economy Now Also Offers Complimentary Food and Drinks Including Alcohol and Complimentary Use of the ‘live to Air’ Seatback Entertainment System.

“we Are Constantly Evolving and Enhancing Our Products to Ensure We Provide the Best Value- for-money in the Business,” Airline Ceo Brett Godfrey Said. “premium Economy Was One Area Where We Identified We Could Add Further Value by Including Food and Entertainment Inflight So That Travellers Have an All-inclusive Experience Both on the Ground and in the Air. ” the New Additions Took Effect on November 27.

Jetstar to Increase Gold Coast-japan

One Week Before Operating Its First Flight on the Route, Jetstar Announced That It Will Add Two Weekly Frequencies on Its Gold Coast-tokyo/narita Service to Bring It to a Daily Service From March 29.

Jetstar Says the Additional Services, Which Will Be Operated by a Two Class Airbus A330-200, Are in Response to What It Called a “positive Sales Performance” on the Route, Which Commenced With a Five Times Weekly Service From December 18. This Has Been Driven in Part by the Weakness of the Australian Dollar Against the Japanese Yen, Making It More Affordable for Japanese Tourists to Visit Australia.

Jetstar Also Noted That the Airline’s Existing Osaka-gold Coast-sydney Service Had Been “meeting Expectations” and That Passenger Volumes Between April and September Had Increased by Nine Per Cent Compared to the Previous Year. Jetstar Formerly Operated the Service Through Brisbane Airport but Shifted to the Gold Coast on October 1 to Provide a Faster Connection to the Popular Tourist Area for Japanese Travellers.

Aapa Predicts Tough Times Ahead

the Association of Asia Pacific Airlines is Also Predicting a Tough Time in 2009 for Airlines in Our Region as the Full Effects of the Global Financial Crisis Begin to Hit Home.

The Association Says Its Members Have Seen a Tailing Off of Passenger Numbers and Cargo Demand in Recent Months and Believes the Market Has Further to Fall Into the First Half of 2009. Fortunately, It Says, Lower Oil Prices Should Allow Carriers to Keep Fares Lower to Help Stimulate Some Travel Demand.

“aapa Carriers Remain Confident About Medium to Long Term Growth Opportunities in the World’s Most Dynamic Economic Region,” Director General Andrew Herdman Said in a Statement at the Group’s Assembly of Presidents in Taipei on November 13.

“however, in the Short Term, Airlines Are Bracing Themselves for Tough Times as the Global Recession Bites Hardin 2009. Carriers Are Taking Steps to Closely Match Capacity to Expected Demand, While Seeking Every Opportunity to Reduce Unnecessary Costs. ” the Group Also Called on Governments and Service Providers to “refrain From Putting Further Financial Strain on the Aviation Industry Through Excessive Taxes and Charges,” and for Airports “to Adopt Transparent, Fair and Reasonable Charges in Accordance With Icao Principles. ”

Airline Briefs

• Qantas Further Reduced Its Domestic Fuel Surcharges From November 28. Qantas and Qantaslink Jet Services Saw Their Surcharge Dropped From $26 to $21 Per Sector, While the Surcharge on Qantaslink Turboprop Services Dropped From $24 to $21 Per Sector.

Virgin Blue Followed by Reducing Its Fuel Surcharge to $19 on One-way Domestic Services and $35 for Pacific Blue Services.

• Jetstar Carried Its 30 Millionth Domestic Passenger on November 27. The Airline Commenced Operations in May 2004.

• Jetstar Launched Its Brisbane to Denpasar Services on December 3. The Jq81/82 A320 Service Operates Daily via Darwin.

• Vietnam’s State Investment Arm Scic Has Reportedly Sought Permission From the Government to Sell an Additional Stake in Jetstar Pacific to the Qantas Group Which Would See Qantas Take a Maximum Stake of 49 Per Cent in the Budget Carrier.

• Emirates Commenced A380 Services From Dubai to London With the Introduction of Its Third A380 on December 1.

• Tiger Airways Will Base Two A320s at Its New Adelaide Base From Early 2009 Instead of the Previously Planned Two A319s. The Airline Says the Move is in Response to an Above-expected Response to Its New Routes From Adelaide to Perth, Gold Coast, Hobart, Melbourne and Alice Springs.

The A319s That Are on Order Will Instead Be Inducted Into Tiger’s Singapore-based Asian Fleet.

• Qantaslink Will Offer a Twice-weekly Kalgoorlie to Adelaide Service From March 1.

• Cathay Pacific Ceo Tony Tyler Says the Airline is Considering Delaying the Delivery of Some of the 35 Boeing Airliners and Freighters It Has on Order and Will Defer Construction of Its New Hong Kong Freight Terminal Due to the Worsening Financial Crisis.

• Qantas Will Increase Capacity Between Perth and Broome and Karratha by Upgrading From Boeing 717s to 737s, and Introduce 737s on Some of Its 24 Weekly Perth to Port Hedland Sectors From February.

• Skywest Increased Services Between Broome and Kununurra From December 8 With the Addition of a New Thursday Morning Service.

• Qantaslink Plans to Commence Services Between Townsville and Mt Isa From March With Q400 Turboprops.

• Qantas Commenced Thriceweekly Non-stop Services Between Sydney and Buenos Aires on November 24.

• Skyairworld is Hopeful of Reaching an Agreement With the Solomon Islands Government and Local Landowners to Develop a 50 Room Resort on the Western Province Island of Anuha. Ceo David Charlton Told the Solomon Islands Star That He Has Received Cabinet Approval for the Development. Separately, Skyairworld Has Applied for a Codeshare Agreement With Solomon Island Airways on Its Services to and From Honiara.

• Jetstar Graduated Its First Darwin Based Cabin Crews on November 12, a Major Step in the Airline Establishing a Hub in the Northern Capital to Feed Into Its Asian Network.

• Airasia X Commenced Services to Melbourne/tullamarine From Kuala Lumpur on November 12. The Airline Will Offer Four Weekly Return Services Between the Two Cities, With Upgrades to Daily Services Over the Summer Peak From December 18 to January 16.

• Qantas Will Grow Its Network Into China by Starting Codeshare Services With China Eastern Between Shanghai and Chengdu and Xi’an.

• South African Airways Has Introduced Larger Airbus A340-600s Onto Its Perth Services to Meet Increased Demand on the Route.

• Qantaslink Will Cease All Services Between Sydney and Narrabri From March 30. Passengers Booked on Services After This Time Are Being Offered Flights to Moree or Tamworth Instead.

• Virgin Blue Will Open a ‘the Lounge’ in Perth in April.

• Qantas Has Announced a New Partnership Between Its Frequent Flyer Business and Woolworths Which Will Allow Woolworths Everyday Rewards Program Members to Earn Qantas Frequent Flyer Points.

Environment United Aspire Trial Yields Results

the Trial Asia and South Pacific Initiative to Reduce Emissions (Aspire) Flight Conducted by a United Airlines 747-400 on November 14 From Sydney to San Francisco Has Been Hailed a Success by the Airline.

United Has Revealed the Ua870 Flight Yielded a Savproducting of 5920 Litres of Fuel and 14,813kg of Carbon Emissions by Being Able to Utilise 11 New Initiatives From Gate to Gate on the Flight.

Some of These Initiatives Included Priority Takeoff Clearance, Access to Normally Restricted Airspace, and a Smooth, Continuous Descent Into San Francisco Rather Than the Traditional Step-down Approach.

Environment Briefs

• Air New Zealand Was Due to Undertake Its Planned Biofuel Test Flight With a Boeing 747-400 on December 30. The Flight, Which Will See One of Its Engines Powered by a Mix of Jatropha Based Biofuel and Jet Fuel, Was Originally Scheduled for December 7 but Was Postponed Due to the Crash of One of the Airline’s A320s in Europe on November 28.

Airport Briefs

• Brisbane Airport Has Announced It Recorded a Net Profit of $91. 6 Million in 2007/08, an Increase of 23 Per Cent Over the Previous Year.

• Mackay Airport Has Been Sold to a Consortium Comprising the Infrastructure Fund (Tif), Westpac and Perron Investments. The Consortium Has Engaged Queensland Airports Limited (Qal) to Manage the Airport.

• Federal Transport Minister Anthony Albanese Has Approved the Latest Version of Melbourne Airport’s Draft Master Plan, Which Sets Forth the Airport’s Development Between 2008 and 2028.

General Aviation Ga Flying Up in 2007

According to the Bureau of Infrastructure, Transport and Regional Economics’s Annual General Aviation Survey, the Number of Ga Hours Flown Increased by 8. 1 Per Cent During 2007.

Increases Came From Test and Ferry Flying, Up 18. 5 Per Cent Compared to 2006; Charter Operations, on the Back of Supporting the Mining Industry, Up by 13. 8 Per Cent to 544,500 Hours; Aerial Work (+8. 9 Per Cent); Training (+7. 4 Per Cent); Business Aviation (+6. 5 Per Cent) and Agriculture (+0. 6 Per Cent).

Private Flying Recorded a Two Per Cent Decline to 222,700 Hours, but This Was Offset by an Overall Increase of 25. 9 Per Cent in Sport Aviation Hours to 604,200 Hours, With Major Increases in Gliding (+50 Per Cent) and Ultralight Flying (+15 Per Cent), With the Latter Now Equivalent to Almost Two-thirds of the Private Ga Flying Hours Recorded.

The Survey Also Noted That the Number of Ga Aircraft on the Register Increased by 3. 8 Per Cent to 11,541 With the Average Age of the Fleet Reducing for the First Time in a Decade, to 26. 5 Years as a Result of a Number of New Aircraft Entering the Register.

Nevertheless, the Number of Fixed Wing Single Engine Aircraft Less Than 26 Years Old Halved Between 2002 and 2007 to 19. 3 Per Cent, Although Usage Data Suggests That These Older Aircraft Are Being Used Less Intensively Than Newer Aircraft.

Gama Reports Ga Deliveries

the General Aviation Manufacturers Association (Gama) Reported Worldwide Ga Deliveries of 2977 Aircraft Valued at Us$18. 2bn (a$28. 1bn) for the First Nine Months of 2008. The Figure Compares With 2918 Deliveries Valued at Us$15. 1bn (a$23. 3bn) for the Same Period Last Year.

“notwithstanding These Positive Third Quarter Numbers for Turbine Powered Aircraft Deliveries, Our Industry is Experiencing Difficulties Due to the Weakness of the Global Economy,” Gama President and Ceo Pete Bunce Said.

“reacting to the Lead and Lag Nature of This Economic Slowdown, Several Companies Have Announced Layoffs and Are Working Very Aggressively to Retain Orders and Encourage New Ones. Even as the Price of Fuel Has Declined From the Debilitating High Levels We Saw This Past Summer, the Uncertainty of Financial Markets Worldwide is Negatively Impacting the Entire Aviation Industry. ” Bunce Added That Gama Would Work With the Us Government to Try to Stimulate the Industry in Order to Maintain Viable Production Lines in the Us. “we Will Urge Us Government Entities, as Well as the European Commission and Parliament, Not to Enact New Regulations or Implement Policies Without a Full Assessment of the Economic Burden That Would Be Imposed on Aviation Operators, Manufacturers or Their Employees,” He Said.

A Breakdown of the Deliveries Saw 1646 Piston Aircraft, 341 Turboprops and 990 Business Jets Delivered, Increases of 13. 7 Per Cent and 30. 1 Per Cent for Turboprops and Business Jets Respectively, but a Drop of 11. 4 Per Cent for the Piston Category Over 2007.

Eclipse Files for Bankruptcy

Eclipse Aviation, Manufacturer of the Eclipse Light Jet, Filed for Chapter 11 Bankruptcy Protection on November 26.

The Administrators Are Reportedly Attempting to Sell the Company’s Assets for a Combination of Cash, Equity and Debt to the Company’s Largest Shareholder, and Have Asked the Bankruptcy Court to Approve a Plan Which Will Allow Normal Business Operations Through the Sale Process.

Diamond Offers Efd1000 Glass Panel

Diamond is Now Offering the Aspen Efd1000 Glass Panel as an Option on Its Da20, Jeffrey Decker Reports.

The New Multifunction Display Adds Us$7995 (a$12,760)to the Da20’s List Price of Us$175,000 (a$279,500).

Installation and Retrofits for the Two-seat Aircraft Should Be Ready by Mid 2009, When Certification is Expected, and Da20s Are Pre-equipped With Much of the Hardware Necessary for the Retrofit.

Diamond Points to Affordability as the Main Reason It Selected the Aspen System Over the Garmin 1000.

Executive Airlines Becomes Tbm Area Sales Representative

Essendon Based Executive Airlines Has Been Appointed as the Area Sales Representative for the Socata Tbm850 Turboprop Business Aircraft.

As Well as Sales, Executive Airlines Will Also Manage a €96,000 (a$190,401) Spare Parts Inventory for the Tbm at Essendon Airport, Which Will Allow Tbm Operators Much Faster Access to Parts.

With the Appointment of Executive Airlines as the Tbm Asr, Eads Socata’s Mark Diaz Will Remain the Company’s Director of Sales for Australia and New Zealand.

Socata Parent Eads is Currently in the Process of Selling a 70 Per Cent Stake in the Tbm850 and Aircraft Component Manufacturer to French Aerostructures Company Daher.

Diamond Goes With Lycoming to Replace Troubled Thielert

Diamond Aircraft’s Search to Replace the Diesel Engine Supplied by Insolvent Thielert Has Led It to a New Lycoming Powered Da42.

The Da42 L360 Will Be Powered by Twin Lycoming Io-360 Fuel-injected Engines, With First Delivery on Track for the First Quarter of 2009. “we Actually Built Prototypes Five Years Ago, but We Abandoned Them Because the Demand Was for the Diesel Powered Aeroplanes,” Said President Peter Maurer.

“this Aircraft Was Designed for Maximum Flexibility. ” Owners Will Also One Day Be Able to Convert the Da42 L360 to Run on Diesel Engines, He Says, Like the Ae300 From Diamond Affiliate Austro Engines.

The Da42 L360’s Us$599,500 (a$949,000) Price Includes Honeywell Kap 140 Autopilot and Garmin G1000 Avionics. The New Model, Which Made Its Debut at the Aopa Expo in San Jose, California, Has Re-designed Cowlings to Reduce Drag and an Enlarged Canopy, While the Engine Provides a 30 Per Cent Horsepower Boost Over Its Diesel Predecessor.

Maurer Says Reliability is Another Factor in the New Engine Choice. “in All of the Lycoming Powered Da40s We’ve Delivered, We’ve Never Had an Inflight Shutdown. ”

(Jeffrey Decker)

Medical Retrieval a Weighty Issue

Queensland’s Careflight Medical Service (Cms) Was Put to the Test Recently When a 260kg Patient, Suffering From Pneumonia, Renal Failure and a Level of Heart Failure, Required Emergency Medical Transport From Mt Isa to Townsville.

Due to the Weight of the Patient Cms Called in a Raaf C-130 Hercules to Assist With the Transfer. “we Needed to Think Outside the Box for This One,” Said Cms’s Dr Stefan Mazur. “we Were Unable to Transport a Patient of That Size Using Our Usual Aircraft, So We Worked in Conjunction With the Military to Get the Job Done. ” the Inter-hospital Transfer (Iht) Involved Loading the Patient Into a Modified Adf Ambulance Which Was Then Driven Onto the Hercules for the Flight to Townsville. “after We Received the Call Requesting the Retrieval It Took About 12 Hours to Arrange the Transfer, Which is a Very Good Response Time Considering the Logistics Involved in Securing the Personnel and Military Equipment Needed,” Said Dr Mazur.

A Regular Iht Requires Two Medical Retrieval Practitioners Comprising a Doctor and Flightnurse or Ambulance Paramedic and the Aircraft’s Two Aircrew.

“this Bariatric Transfer Required 12 Staff Including Doctors, Nurses, Medics, Pilots and Loading Personnel,” Said Dr Mazur.

Business

Aviation Business Briefs

• Embraer Began Construction of Its First Us Aircraft Assembly Facility on December 4 in Melbourne, Florida. The New Facility Will Have a Capacity to Build Up to Eight Phenom Business Jets Per Month.

Maintenance & Training

Tae Buys Tenix Aviation & Masling Industries

Air New Zealand’s Australian Aerospace Engineering Subsidiary Tae Has Expanded With the Acquisition of Tenix Aviation and Masling Industries.

Adelaide Based Tenix – Which Has Since Been Rebranded Tae Aviation – is a Specialist in Gas Turbine, Airframe, Avionics and Propeller Component Overhauls and Spare Parts Supplies, and Employs 60 Staff in Adelaide, Parafield and Darwin.

Cootamundra Based Masling Industries is a Specialist in Component Overhaul and Repair of Gas Turbine Engine Accessories for Helicopters and Medium Sized Aircraft, With a Staff of 11.

The Intention of the Acquisition is That Both Businesses Will Complement Tae’s Existing Operations, Which Include Aircraft Painting, Gas Turbine Maintenance and Asset Optimisation.

First ‘beta Test’ Mpl Pilots Graduate

the First Batch of Multicrew Pilot Licensing Program (Mpl) Pilots Undergoing Training With Boeing’s Alteon Training Division at Brisbane Graduated With Their 737 Type Ratings on November 14after Successfully Completing 20 Months of Intensive Flying Training and Icao Standard English Lessons.

The Six Chinese Cadet Pilots, Three Each From China Eastern Airlines and Xiamen Airlines, Most of Whom Had Never Even Previously Driven a Car, Spent About 110 Hours Training on Diamond Da40s at Brisbane’s Archerfield Airport Before Progressing to a Purely Simulator Only Training Program on the Boeing 737ng. The Pilots Have Now Returned to Their Airlines to Complete Airlinespecific Training and Conduct 12 Takeoffs and Landings in a Real 737 Before Being Awarded Their Full Mpl Licences and Commencing Airline Flying.

Alteon Management Will Now Re-assess the Program in an Effort to Find Efficiencies and Changes That Could Be Applied to Future Courses.

Maintenance & Training Briefs

• Lufthansa Technical Training Has Announced an Agreement With Melbourne’s Kangan Batman Tafe to Offer Aircraft Maintenance Training in Australia.

• Hawker Pacific Plans to Expand Its Avionics Business Into Dubai. Dubbed Hawker Pacific Avionics, the New Business Will Be Located at Hawker Pacific’s Existing Facility at the Jebel Ali Free Zone, and is Planned to Commence Operations in Early 2009.

• Raytheon Australia Has Established a Partnership With Adelaide’s Aberfoyle Park High School Which Will See the Company Provide a $150,000 Grant Per Year for Three Years to Develop the Next Generation of Scientists and Engineers.

Air Safety Air Nz A320 Crashes in France

an Airbus A320 Owned by Air New Zealand Crashed Into the Mediterranean Sea Near Perpignan in Southern France on November 27 With the Deaths of All Seven People on Board.

The Aircraft, Which Was Delivered to Air New Zealand/freedom Air as Zk-ojl in 2005, Had Been on Lease to Xl Airways of Germany as D-axla Since 2006, and Was Conducting Post Maintenance Check Flight Gxl888t From Perpignan to Perpignan for a Touch and Go and Was Scheduled to Continue on to Frankfurt for Handover Back to Air New Zealand.

The A320 Came Down About Seven Kilometres Off the Coast at 16:46 Local, Killing the Two German Pilots From Xl Airways Plus Air New Zealand’s Captain Brian Horrell (Aged 52) and Engineers Michael Gyles (49), Noel Marsh (35) and Murray White (37), and the New Zealand Civil Aviation Authority’s Jeremy Cook (58).

The French Maritime Prefecture Mediterranean Led the Search and Rescue Mission With 150 Personnel, Boats, Helicopters and Aircraft. At the Time of Writing the Slow Process of Recovering and Identifying the Bodies of Those on Board the Crash Was Continuing, While French Divers Had Recovered the Cockpit Voice and Flight Data Recorders. Both Were Badly Damaged in the Crash and Were Being Sent to Honeywell for Examination.

Air New Zealand Ceo Rob Fyfe and Deputy Ceo Norm Thompson Travelled to Perpignan Immediately After the Accident, Accompanied by Representatives From the Airline’s Security, Safety Investigations, A320 Fleet and Communications Divisions, as Well as Representatives of the New Zealand Police, Nz Airline Pilots Association, and the Transport Accident Investigation Commission. They Joined Air Nz General Manager Europe Scott Carr and a Team of Seven From the Airline’s London Office Who Had Earlier Arrived in Perpignan to Support the Search and Investigation Activities.

Over 20 Family and Friends of the Victims Plus Air New Zealand and Government Support Teams Held a Private Memorial Service on Perpignan’s Canet Beach on December 5.

The A320 Had Been Painted in Air New Zealand Colours Prior to the Test Flight. It Had Conducted 2800 Flights for a Total of 7000 Hours Since Being Delivered, and Was C/n 2500.

The Accident Occurred on the 29th Anniversary of Air New Zealand’s Worst Air Disaster, the Crash of a Dc-10 With 237 Passengers and 20 Crew Onboard Into Antarctica’s Mt Erebus on November 28 1979.

Atsb Releases Preliminary Report Into Qf A330 Event

the Australian Transportation Safety Bureau (Atsb)diversion to Manila – Involved Rare Circumstances Associated With Manufacture and Equipment Design Issues That Were Entirely Beyond Qantas’s Control,” Then Qantas Ceo Geoff Dixon Said in a Statement.

“we Are Proud of the Fact That in Both Cases, Our Crew Landed the Aircraft Safely and Without Further Incident. ” the Report Also Said That, While Unlikely, Any Possibility of Transmissions From the Harold E Holt Naval Communications Facility Near Exmouth Interfering With the Aircraft’s Systems Would Also Be Investigated.

Experts on the Facility Claim It Would Be Highly Unlikely It Could Have Affected the Aircraft, as Its Ultra Low Frequency Radio Waves Which Are Designed to Be Picked Up by a Submarine Travel Very Close to the Earth’s Surface, and That Similar Facilities Exist Near Air Routes in Other Parts of the World.

Atc & Airspace

Airservices Opens Website to Track Aircraft Noise

Federal Transport Minister Anthony Albanese Helped Launch Airservices Australia’s Webtrak Program on December 11.

Has Released Its Preliminary Report Into an Inflight Pitch Down Event Involving a Qantas A330-300 Off the Western Australian Coast on October 7.

As Expected, the Report Points to an Uncommanded Autopilot Disconnect Followed by Two Pitch-down Events Which Resulted in Serious Injuries to One Flight Attendant and 13 Passengers, and the Emergency Diversion of the Aircraft to Learmonth Airport Near Exmouth. It Says That, While Cruising at 37,000ft, the Autopilot Disconnected and Several Aircraft System Failure Indications Were Given. Two Minutes Later, the Aircraft Abruptly Pitched Down at a Maximum Pitch-down Angle of 8. 4 Degrees, Descending 650ft During the Event. The Crew Recovered the Aircraft, Returned to 37,000ft, and Commenced Actions to Deal With the Multiple System Failure Messages.

A Second Less Abrupt Pitchdown Event Occurred About Two Minutes Later, With the Aircraft This Time Reaching a Maximum Pitch-down Angle of 3. 5 Degrees and Descending About 400ft.

Following the Second Pitchdown Event, the Crew Declared a Pan Emergency Broadcast to Atc and Requested a Diversion to Learmonth. About Five Minutes Later After Advice as to the Extent of the Injuries Onboard, the Crew Declared a Mayday, and Landed at Learmonth About One Hour Later.

The Report States That Examination of the Flight Data Recorder Showed “at the Time the Autopilot Disconnected, There Was a Fault With the Inertial Reference (Ir) Part of the Air Data Inertial Reference Unit (Adiru) Number 1. From That Time, There Were Many Spikes in the Recorded Parameters From the Air Data Reference (Adr) and Ir Parts of Adiru 1. Two of the Angle-of-attack Spikes Appear to Have Been Associated With the Uncommanded Pitch-down Movements of the Aircraft. ” “the Two Serious Incidents We Have Had This Year – Qf72 in Western Australia and the Depressurisation Incident on Qf30 in July That Resulted in a the New Web-based Service Will Allow Residents Around Perth, Adelaide, Melbourne, Canberra, Sydney, Coolangatta, Brisbane and Cairns to See in Near Real Time (Information is Delayed by 40 Minutes for Security Reasons) the Paths Taken by Aircraft While Operating in and Out of These Airports, as Well as Aircraft Noise Data.

“the Information on the State-of-the-art Website is Sourced From the Air Traffic Control Radars Displaying Movements Within 55km of the Airport and Up to a Height of 3000m,” Said Minister Albanese.

“the Project Also Involved the Introduction of More Portable Noise Monitors and the Replacement of More Than 40 Existing Noise Monitors. ” Webtrak is Part of a $20 Million Investment Being Made by Airservices Under Its Nationwide Integrated Noise and Flight Path System, and Will Be Further Upgraded in April to Improve the Public’s Access to the System. Webtrak is Available at Www. Airservicesaustralia.

Com/webtrak.

Draft Airspace Plan Released

Federal Transport Minister Anthony Albanese Has Released for Comment the Draft Australian Airspace Policy Statement (Aaps).

The Brief Nine Page Document Lists Three Government Policy Objectives: That “a High Priority to Be Given to the Review of the Classification of Airspace at Major Regional Aerodromes;” That “to Meet the Needs of Both Civilian and Defence Airspace Users, Casa Shall Work With Defence to Develop an Integrated Airspace Administrative Regime at the National Level;” and That “casa Shall Participate in the Implementation of the Icao Global Air Traffic Management Operational Concept. ” “the Aaps Provides Guidance to the Office of Airspace Regulation (Oar), in the Civil Aviation Safety Authority (Casa), on the Administration of Australian Airspace Noting the Functions of, and Exercise of Powers by, the Oar as Set Out in the Airspace Act 2007 and the Airspace Regulations 2007,” Reads the Notice on the Department of Infrastructure’s Website.

Comments Were Due by December 31, With an Updated Aaps to Be Finalised in Early 2009.

Casa Clears Ntl to Operate Without Atc

Casa Has Announced a New Set of Procedures Which Will Allow Aircraft to Continue to Use Newcastle Airport While the Raaf Shuts Down Its Air Traffic Control Services at the Airport Between December 13 and January 10.

During This Time, a Casa Certified Ground to Air Radio Operator Will Provide Pilots With Traffic and Other Information Seven Days a Week. Pilots Will Have to Contact the Radio Operator and Will Have to Be Equipped With and Use Radar Transponders.

Similar Procedures Are Currently Used on Weekends Where Atc, Which is Provided by the Raaf, is Not Operating.

“based on Casa’s Analysis of This Data We Have Developed a Robust Package of Procedures That Ensure Newcastle Airport Can Keep Operating Safely,” Said Casa Chief Bruce Byron.

However, the Procedures Have Drawn Criticism Fromsome, Including Former Casa Chairman Dick Smith, Who Has Criticised the Decision Not to Use Radar at Newcastle Over the Peak Christmas Period. “novocastrians Are Not Stupid,” He Said. “they Know That Radar is One of the Most Important Tools to Ensure Air Safety. To Actually Have Excellent Radar Equipment, but Not Use It in the Highest Traffic Christmas Period, is Nothing Short of Criminal. ”

People

Aussie in Red Bull

Raaf F/a-18 Pilot Wgcdr Matt Hall Has Been Selected as One of Four Rookie Pilots to Join the Red Bull Air Racing Circuit in 2009.

“i’m Obviously Extremely Excited and Found It Hard to Keep My Emotions in Check When I Got the News,” Said Hall. “it’s a Great Opportunity to Represent Australia and I’m Excited About Being the First Australian in the Race. We’ve Got a Lot of Work Ahead of Us Now. The Focus is to Get a Fast Plane, Learn to Fly It Quickly and Get Into the Track. ” Hall Will Resign His Commission and Move His Family to Europe Where He Will Build a Sponsorship Base and Acquire a Suitable Aircraft for the Series.

People Briefs

• Casa Ceo Bruce Byron Has Been Staying on in the Job Temporarily While His Successor is Found. In Early December Casa Said an Announcement Was “expected Soon. ” • Raaf Pilot Flgoff Matthew Brown Has Been Awarded a Prestigious Rhodes Scholarship to Attend Oxford University.

Events the Kyeema Commemoration

in Fine Clear Weather, a Crowd of About 400 People Gathered on the Upper Slopes of Mt Dandenong, Victoria, on Saturdayoctober 25 to Remember the Major Air Disaster That Occurred There 70 Years Ago in 1938, When the Dc-2 Kyeema, Operated by Australian National Airways, Crashed Into the Fogenshrouded Mountainside.

At the Time of the Accident, the Aircraft Was on Descent at the End of a Scheduled Flight From Adelaide. A Combination of Navigational Error, Poor Visibility and Primitive Navigational Aids All Contributed to the Tragedy, Which Claimed the Lives of All Four Crew and 14 Passengers on Board. Among Them Were Notable Member of Federal Parliament and Former Cabinet Minister, Charles Hawker, Members of the Legal Fraternity Returning From a Royal Commission in Perth, Senior South Australian Wine Company Executives and a Honeymoon Couple Married Only Three Days. The Accident Became a Watershed in the Development of Australia’s Airways System, Leading to the Introduction of Accurate Vhf Radio Navigation Aids, the Beginnings of Air Traffic Control, and the Creation of the Department of Civil Aviation as a New Commonwealth Portfolio Separate From the Department of Defence.

A Number of Surviving Children and Other Relatives of Those Who Died, Including Sir James Hardy, Made the Journey Back to the Mountain From Interstate for the Commemoration.

Among Them Was David Hawker, Former Speaker of the House of Representatives.

The Ceremony Was Also Attended by Federal and State Members of Parliament, Local Government Representatives, Delegations From the Australian Federation of Air Pilots and the Retired Airline Pilots’ Association and Other Aviation Industry Representatives.

The Colourful Event, Organised by the Mt Dandenong Historical Society and the Australian Air League, Was Held at the Crash Site Memorial Cairn, Dedicated 30 Years Ago on the 40th Anniversary of the Accident. Uniformed Members of the Air League Began the Commemoration With a Flag-raising Ceremony and March Past, and the Kilted Victoria Police Pipe Band Played Several Items Including the Last Post.

Speakers Emphasised the Positive Advances in Air Safety That Followed the Accident, Stressing That the Lessons of History Are Forgotten Today at Our Peril, and Relating How the Bereaved Families Turned Their Grief to the Advantage of the Wider Community.

During the Ceremony Roger Meyer, President of the Civil Aviation Historical Society, Officially Launched the New Book Disaster in the Dandenongs – the Kyeema Airliner Tragedy, by Macarthur Job (Which Can Be Ordered Through Australian Aviation). The Occasion Ended With a Fly-over Salute by the Historic Former Taa Dc-3 Vh-aes Hawdon, Which Inaugurated That Airline’s Services 62 Years Ago in 1946. Vh-aes Was Flown by Retired Taa Captains Alan Searle and David Wiltshire. (Macarthur Job)

Event Briefs

• the Rfds Outback Air Race is on Again in 2009. With a Goal to Raise More Than $200,000 for the Rfds, the Event Will Commence in Broome on August 26 and Finish in Airlie Beach on September 5. Visit the Race Website at Www.Outbackairrace.Com.Au.