News Desk

Boeing has finalised the firm configuration of the stretched 787-9, which is expected to make its first delivery in late 2013.
“Firm configuration means the airplane’s structural, propulsion and systems architectures are defined and not changing,” said Mark Jenks, vice president of 787-9 development, Boeing Commercial Airplanes. Boeing says it has completed the trade studies required to finalise the aircraft’s overall capability and basic design, allowing it and its suppliers to begin detailed design of parts, assemblies and other systems.
Bigger than the 787-8, the -9 will seat between 250 and 290 passengers and will have a range of 8000-8500nm. Despite the stretched fuselage, the -9 will retain the same wing as the -8 model.
“We have been working closely with our customers for years to reach this milestone,” said Jenks. “We are excited about the performance and capability this airplane will offer our customers.”
Air New Zealand will be the first carrier to introduce the 787-9 in late 2013, while Jetstar is also understood to have secured early delivery positions for the aircraft, which will replace the A330-200s it uses on long haul services.

Boeing, Us Claim Win In Wto Subsidies Case:

Airbus and Boeing have traded claims after a judging panel of the World Trade Organisation (WTO) issued its ruling that some aid given to Airbus in the development of the A380 was illegal and must end.
“This is a landmark decision and sweeping legal victory over the launch aid subsidies that fuelled the rise of Airbus and that continue to provide its products a major cost advantage,” said Boeing chairman and CEO Jim McNerney.
In accordance with the ruling, Airbus will have to renegotiate the terms of some of the launch aid it was given to develop the A380 to bring it more in line with commercial terms within 90 days of the panel’s decision being adopted by the full WTO membership, which is expected to take some months. Any remedy is expected to be delayed should the EU launch an appeal, which appears likely.
Airbus hit back at Boeing’s rhetoric, issuing a statement that said that 70 per cent of the US’s arguments were rejected by the WTO panel, including assertions that jobs and profits in the US had been adversely affected by the use of reimbursable loans to Airbus.
“These results are in line with the previous versions of the WTO panel’s findings. Airbus, the EU and the member states are closely analysing the report in advance of a possible review by the WTO Appellate Body,” said Rainer Ohler, head of public affairs and communications at Airbus.
Airbus also pointed to an interim ruling on a countersuit filed against the US and Boeing by the EU, which is expected to be released in July. “Only the availability of the report on the parallel case on Boeing subsidies will bring the necessary balance to allow for a possible start of negotiations, without any preconditions,” Ohler said.

Spirit Opens New A350 Component Plant:

Spirit AeroSystems and Airbus officially opened a new 46,450m2 manufacturing plant on July 1 in Kinston, North Carolina, which is designing and will manufacture composite centre fuselage upper and lower shells and front wing spars for the Airbus A350 XWB.
Design work for the components has been underway for approximately two years, with manufacturing set to begin immediately.
Fuselage components designed and manufactured in North Carolina will be shipped to Spirit’s new facility in Saint-Nazaire, France, and assembled before being transported to Airbus as Section 15. Section 15 will be approximately 19.8m long, 6.1m wide and weigh nearly 4080kg. The front spar meanwhile will be shipped to Spirit’s UK operations in Prestwick, Scotland, for integration into the wing leading edges before being shipped to Airbus for final assembly.

Tail Issues Force Rework On 787s

Boeing has announced that it has identified a workmanship issue on the tails of its flight test 787s, requiring it to inspect and make some changes to the aircraft’s horizontal stabilisers.
Boeing noted that the issue related to improperly installed shims and the torque of associated fasteners in the horizontal stabilisers, which are manufactured by Alenia Aeronautica in Italy. It has since started an inspection and rework program on all 787s flying and in production. Each inspection will take one to two days, with the resulting rework taking eight days.
The issue was raised by various Seattle based media outlets on June 24, which reported that the 787s had been grounded. Boeing later issued a statement denying that the aircraft had been grounded, noting instead that it was conducting the inspections on each aircraft before their next flights.
Despite the issue, Boeing says that it still expects to deliver the first 787 to All Nippon Airlines during the final quarter of this year.

VIETNAM AIRLINES SWITCHES 787 ORDER TO -9s: Vietnam Airlines has switched an order for 16 Boeing 787-8s to the larger -9 model, citing the unexpected performance limitations of the -8.
“The -8 doesn’t meet the performance guarantee as they told me,” Vietnam Airlines CEO Pham Ngoc Minh told ‘Flightglobal’ during a meeting of the SkyTeam alliance in New York. “We found the -8 is a heavy -8; it’s not the original -8 they committed to.” Minh added that the 787-8 would not be able to economically operate on routes between Vietnam and North America due to the added weight to the aircraft.
The carrier is now not expected to take delivery of its first 787 until 2015. Vietnam Airlines placed its first order for four 787-8s in 2005, and followed up with an order for four additional aircraft in 2007, while Vietnam Aircraft Leasing also ordered eight aircraft on behalf of the airline.

CRACKS FOUND IN 767 ENGINE PYLONS: The US Federal Aviation Administration (FAA) is working with Boeing and American Airlines (AA) to remedy structural cracks found on the engine pylons on at least two of the airline’s Boeing 767s discovered during recent maintenance checks.
According to a report from Reuters, the cracks were discovered by FAA inspectors while working on a different part of the aircraft during a routine inspection. The aircraft with the cracking were not yet due for a scheduled inspection which would have found the potentially catastrophic cracks.
“We are working with the carrier and the manufacturer to identify the source of the cracking and to develop remedies,” an FAA spokesperson said. “We are also considering additional action, including requiring more frequent inspections of the engine pylon area.”
Currently, no other 767 operators have reported cracking issues related to those discovered on the American aircraft. American operates a fleet of 73 767-200s and -300s, all of which are powered by General Electric CF6 engines.

A320 Fleet Hits Over 50 Million Cycles:

Airbus has announced that the global fleet of A320 Family narrowbody aircraft has exceeded 50 million flight cycles since the first aircraft entered service in 1988.
“One of our A320 Family aircraft takes off every six seconds somewhere around the world and they have carried more than five billion people, which is a huge achievement,” said John Leahy, Airbus chief operating officer – customers. “We are investing at least €100 million a year in the A320 Family in order to maintain it as the world’s most modern and fuel efficient aircraft family that will continue to bring people together for the decades to come.”
More than 4300 A320 Family aircraft have been delivered, with the type’s backlog stretching past 2000. Airbus is currently examining a new engine option for the A320, ahead of a likely replacement during the mid 2020s.

MAS TO CANCEL A380 ORDER? Malaysia Airways (MAS) could become the first passenger airline to cancel an order for Airbus A380s, with Bloomberg reporting that the airline has grown frustrated over the delays to its order for six of the type.
According to the report airline CEO Tengku Azmil Zahruddin told reporters that MAS “cannot tolerate” an additional holdup for its order. “We will not rule anything out at this stage,” he said. “We are not happy.”
MAS was originally set to receive its first A380 in 2007, but delivery has most recently been pushed back to the second quarter of 2012 as a result of the various developmental issues experienced, as well as difficulties in the production ramp-up of the aircraft. The airline has already received compensation for two previous delays, and is expected to push for further compensation while in talks with Airbus.

Genx Powered 787 Takes Off:

The first Boeing 787 powered by General Electric GEnx-1B engines made its first flight from Everett’s Paine Field on June 16.
Aircraft ZA005 took off at approximately 1440 local time and flew for three hours and 48 minutes.  ”The airplane handled just like I expected,” said Boeing’s Captain Mike Bryan, who captained the flight. “It was just like every other 787 flight that I’ve flown in the last several months – smooth, per plan and excellent.”
“The GEnx engine program has been designing, developing and testing the engine for five years so today’s events are a testament to the team’s extraordinary efforts,” said Tom Brisken, general manager of the GEnx program.
ZA005 has now joined the four other Rolls-Royce Trent 1000 powered 787s in the flight test program. The sixth and final aircraft in the program, which is expected to fly by the end of July, will also be powered by GEnx engines.
A few days later Boeing announced that its fleet of five Boeing 787 Dreamliner flight test aircraft has amassed more than 1000 flying hours.
The airframer said that the 787 is now about 40 per cent through the test conditions required for certification. “More work remains but we are seeing excellent progress in flight test,” said Scott Fancher, vice president and general manager of the 787 program. “Even more important than the hours we’ve logged are the test conditions we have completed. The team is being very efficient in getting the data we need.”
According to Boeing the now five aircraft strong 787 flight test fleet has completed 314 flights and 1018 hours, 15 minutes of flight test. Aircraft ZA001 has completed 139 flights and over 384 hours, followed by ZA002’s 98 flights and 337 hours, ZA004 has flown 42 flights and 193 hours, ZA003 34 flights and 99 hours, and ZA005’s 3 hours, 48 minutes on its June 16 first flight.
Boeing is planning to have the 787 certified in time for the first customer delivery to All Nippon Airlines (ANA) in the fourth quarter of this year. ANA is said to have already started scheduling 787 services to commence in January, although it has not yet identified which routes will be the first to receive the new aircraft. The first delivery of a GEnx powered 787 is expected to take place in 2012 to Royal Air Maroc.

* Rolls Tests First Trent Xwb:

Rolls-Royce has started testing of its Trent XWB engine, with the first example running for the first time on a ground testbed on June 17.
The sixth member of the Trent series of engines, the XWB has been designed as the sole powerplant for the Airbus A350 XWB. RR says that it expects that the engine will be 28 per cent more fuel efficient than pre-Trent generation engines.
The first run has started off an extensive series of tests, which will see seven engines running by early 2011. Flying tests on board an A380 testbed are expected next year, before flight testing on the A350 in 2012.

* 737 Production Gains Another Boost:

Boeing has announced that it will increase output on its 737 line to 35 units per month from early 2012.
“Our customers continue to show their preference for the Next Generation 737 by exercising order options as well as by placing new orders,” said Boeing Commercial Airplanes president and CEO Jim Albaugh. “We’ve managed our current backlog efficiently and increasing rate is the product of our comprehensive planning and preparation. We will continue to monitor demand as we go forward.”
In May, the carrier announced that it would lift production from 31.5 units per month to 34 in 2012. Boeing says that it is now working with its suppliers and internal stakeholders to support the additional aircraft ramp up.
The announcement comes as Boeing decides upon whether it will pursue a re-engining option for the 737NG to counter a likely offering from Airbus for the A320. Boeing Company CEO Jim McNerney told an analysts conference in early June that the company was leaning towards launching a replacement for the 737 from 2020 onwards rather than a re-engining program. The latter option has been complicated by the low ground clearance of the 737 which would require some major engineering works to accept a new high bypass engine.

* EMIRATES STUNS WITH ORDER FOR 32 MORE A380s: Dubai based Emirates Airline placed a remarkable order for 32 additional Airbus A380s at the ILA Berlin Airshow on June 8.
The deal, the largest single order placed for the ultra-large airliner to date, takes Emirates’s total A380 firm commitments to 90, including the 10 delivered to date, and Airbus’s total A380 order book to 234 aircraft from 17 customers.
The order also comfortably surpasses Airbus’s rarely-reserved COO customers John Leahy’s prediction of sales of a further 20 A380s this year which he made at May’s Innovation Days media briefings at Broughton in North Wales.
“Emirates has supported the development of the A380 from the earliest days, and today’s order – the single largest A380 order ever – is the best endorsement I can imagine,” Tom Enders, Airbus president and CEO, said. “On behalf of all of us at Airbus, we thank Emirates for their confidence and support.”
“This latest order, adding to 58 A380s previously ordered, affirms Emirates’s strategy to become a world leading carrier and to further establish Dubai as a central gateway to worldwide air travel,” said Emirates chairman and CEO Sheikh Ahmed Bin Saeed Al-Maktoum. “The A380 is our flagship in terms of passenger comfort, innovation, operating and environmental efficiency and revenue generation. Our latest commitment signals Emirates’s confidence in the growth to come in a thriving aviation sector.”
Emirates took delivery of its 10th A380 on June 7, and currently operates its fleet between Dubai and London Heathrow, Toronto, Paris, Jeddah, Bangkok, Seoul, Sydney and Auckland.

* 747-8F PROGRESSES TO TIA: Boeing has received expanded type inspection authorisation (TIA) from the FAA for the 747-8 Freighter, which allows for FAA personnel to take part in testing as part of its formal type certification process.
Boeing’s vice president and general manager for the 747 program Mo Yahyavi said that the granting of the expanded TIA was a major step in the aircraft’s development program. “The airplane is performing well in the tests,” he added. “We have demonstrated the airplane’s readiness to move onto the next stage in the flight test program through tests at a variety of speeds, altitudes and configurations.”
Meanwhile, Boeing announced on June 14 that it has started fuselage assembly on the first 747-8 Intercontinental. Mechanics have loaded panels for the 9.6m long front section of the aircraft into an assembly tool as part of the construction of Section 41 of the fuselage, which comprises most of the nose area. The first Intercontinental is expected to be delivered to launch customer Lufthansa in late 2011, while the first Freighter should be delivered to Cargolux by the end of this year.

* SUPERJET COMPLETES WATER INGESTION TESTS: Sukhoi Superjet 100 (SSJ100) SN95003 has successfully completed water ingestion tests on its engines and APU, clearing the type for takeoffs and landings from wet runways.
The tests were conducted at Sukhoi Civil Aircraft Company’s Zhukovsky flight test centre. A special 70m long pool was constructed on the runway, filled with water to a depth of 40 mm. The aircraft completed 27 runs at speeds ranging between 10kt and 150kt at different engine modes, with special attention paid to low speed modes, takeoff mode and with maximum thrust reverser deployed.
The first SuperJet is due to be delivered to launch customer Aeroflot by the end of the year.

Commercial briefs

* Boeing rolled out the first production 747-8 Freighter in the colours of launch customer Cargolux on June 7. The new livery features a distinctive new red tail and a logo on the belly, and comes after Boeing delivered the last Cargolux 747-400F with a unique transition paint scheme featuring fading stripes.

SALES

* AIR CHINA ORDERS MORE 737s: Boeing has confirmed that Air China has placed an order for 20 737-800s. The aircraft will be used to expand its domestic routes.

* Turkish Airlines has ordered one additional Airbus A330-200. The carrier also has existing orders for A330-300s, A330 Freighters and A320s which were placed in 2009.

MILITARY

* 460sqn Formally Re-established:

The RAAF formally re-formed famed WW2 Bomber Command unit 460SQN during a ceremony held at the Australian War Memorial in Canberra on July 2.
Under the command of WGCDR Pete Wooding, the re-formed 460SQN is a unit with the Defence Imagery and Geospatial Organisation (DIGO), and has been established to provide the ADF with geospatial imagery analyst support.
The re-formation ceremony was held beneath the Australian War Memorial’s Lancaster ‘G for George’, which flew 90 missions over Europe with 460SQN as part of the RAF’s Bomber Command during WW2.

* Raaf Hornet Centre Barrel Program Completed:

The Project Air 5376 Phase 3.2 program to replace fuselage centre barrel structural components on the RAAF’s fleet of F/A-18A/B Hornets has officially wrapped up following the handing back to the RAAF of the 10th Hornet to be rebuilt by BAE Systems Australia.
Originally planned to encompass up to 49 Hornets, the centre barrel replacement (CBR) program ended at just 10 aircraft due to the complexities in performing the work, the higher than expected part count required, and the nearly 12 months each aircraft was expected to be out of service during the refurbishment.
Each aircraft had to be ‘torn down’ by BAE prior to it being flown onboard an An-124 transport to L-3 MAS’s facility in Mirabel, Canada, where the three main elements of the centre barrel were replaced. The aircraft was then flown back to Williamtown on an An-124 where it was re-assembled, flight tested and redelivered to the RAAF. Early issues with the program included a much bigger than expected requirement for fasteners.
The RAAF Hornet fleet will require ongoing structural refurbishment work, including but not restricted to areas in the wings, main undercarriage and fuel tanks in order to see it through to its planned life of type in 2020, by which time the oldest aircraft will have been in service 35 years.

* Qantas C-130h Maintenance Contract Renewed:

Defence has signed a new three year, $136 million contract with Qantas Defence Services for maintenance and support of the RAAF’s 12 C-130H Hercules.
“Qantas Defence Services has maintained Australia’s 12 strong C-130H Hercules fleet since 1999, demonstrating that local companies can deliver quality work and value for money,” Minister for Defence Materiel and Science, Greg Combet, said on July 5.
“This contract covers a range of maintenance, engineering and logistics support activities, including T56 engine support for both the C-130H Hercules and AP-3C Orion aircraft, and will directly support 200 jobs based at RAAF Base Richmond.”
Maintenance of the RAAF’s 12 younger C-130J model Hercules was taken over by a teaming of Australian Aerospace and Lockheed Martin last year.

* NORTHROP TO DEMO UAV AIR-TO-AIR REFUELLING: Northrop Grumman has been awarded a contract by the US Defense Advanced Research Projects Agency (DARPA) to demonstrate an autonomous air-to-air refuelling capability from one Global Hawk to another.
Dubbed KQ-X, the demonstration will see two Block 10 Global Hawks which are operated by NASA fly in close formation, with one feeding fuel to the other through a hose and drogue setup.
“Demonstrating the refuelling of one UAV by another is a historic milestone,” said Carl Johnson, vice president, advanced concepts for Northrop Grumman Aerospace Systems. “It adds aerial refuelling to the list of capabilities that can be accomplished autonomously by Global Hawks; it opens the door to greatly expanded operational utility for UAVs; and, as a side benefit, it promises to increase the safety and reliability of aerial refuelling between manned aircraft by reducing pilot workload.”
The demonstrations will likely be accomplished at much higher altitudes that those of conventional aircraft due to the Global Hawk’s high altitude capabilities.

* Euro Hawk Makes First Flight:

The German Euro Hawk development of the Northrop Grumman Global Hawk made its first flight from Palmdale, California, on June 29, flying a two hour sortie before landing at nearby Edwards AFB.
The Euro Hawk is a development of the Block 20 Global Hawk, and encompasses an EADS designed signals intelligence (SIGINT) package.
“Formed as a 50-50 joint venture company by Northrop Grumman and EADS Defence & Security, EuroHawk GmbH acts as the national prime contractor for the German MoD throughout the lifecycle of the Euro Hawk system,” said Neset Tuekenmez, CEO of the EuroHawk GmbH, in a statement.
Germany has ordered four Euro Hawks, with the aircraft planned to replace manned Bregeut Atlantique aircraft.

* BOEING APPLIES FOR F-15SE EXPORT LICENCE: Boeing has reportedly applied for and received a licence to export its conceptual F-15SE to South Korea. ‘Flightglobal’ reports an export licence was granted earlier this year following a submission by Boeing on the aircraft’s radar cross section to the US government.
A development of the F-15E, the SE features two internal weapons bays in the side fuselage conformal tanks, canted vertical stabilisers, and low observable coatings to substantially reduce the standard F-15’s large radar cross section. Boeing is expected to fly the new conformal tanks on its F-15E demonstrator later this year, but is unlikely to proceed with a full development program without a launch order from a customer such as South Korea, Japan, Israel or Saudi Arabia.
Saudi Arabia has also been reported as being close to ordering 72 F-15s of an unspecified model to add to its current fleet of about 150 F-15C/Ds and F-15Ss.

* LOCKHEED OFFERS JSF TO INDIA: Lockheed Martin says it will offer both the F-35B STOVL and F-35C carrier variant of the JSF to India for that country’s requirement for a new naval carrier-based fighter.
“We have received the request for information from the Navy seeking information about the F-35 aircraft, which are capable of taking off from aircraft carriers,” company vice president Orville Prins told Indian media. “We are going to offer our aircraft to them.”
The aircraft are required to operate off two new carriers currently being constructed in India and due to enter service later this decade. The Indian Navy currently operates Sea Harriers and has bought a small number of MiG-29Ks to operate from a refurbished Russian carrier from 2012.

* Raaf Ibft Decision Imminent:

The down select of the successful candidate to provide an Interim Basic Flight Training (IBFT) solution to the ADF is believed to be imminent.
The tender, being managed by the Air Force Training Group, was called last year to provide an interim flight screening and training capability for a minimum of six years while the ADF’s delayed and more comprehensive Project Air 5428 matures to implementation. The new tender became necessary because the terms of the Free Trade Agreement between Australia and the US required the RAAF to compete the IBFT period rather than simply continuing to extend the current BFT arrangements with BAE Systems Australia beyond the final option date of December 31 2011.
An Invitation to Respond (ITR) was issued last July, and three companies initially responded to the tender which closed on February 11 – BAE Systems Australia; Boeing Defence Australia; and a teaming between Thales Australia and Flight Training Adelaide (FTA) along with Transfield and Hawker Pacific. A decision on the successful tender was due to be made in the May/June timeframe.
BAE Systems has proposed an evolution of its current arrangement at Tamworth based around the established campus there and enhanced CT-4B aircraft, but is open to the RAAF’s reported preference of IBFT and the follow-on permanent solution being located at East Sale in Victoria. Boeing Defence Australia is offering the Grob 120A ostensibly out of the former National Safety Council (NSC) facility at nearby West Sale, while Thales/FTA is also offering the Grob 120A and a basing solution at East Sale.

* F-35 Successfully Tests Apg-81 Aesa:

The Lockheed Martin F-35B development aircraft BF-04 has successfully demonstrated its Northrop Grumman AN/APG-81 AESA radar in recent testing.
“During the F-35 flight, the Northrop Grumman APG-81 radar met and exceeded performance expectations, tracking long range targets at all aspect angles with excellent stability,” said Jeff Leavitt, vice president of combat avionics at Northrop Grumman’s Electronic Systems sector. “We look forward to working with Lockheed Martin in demonstrating the APG-81′s high resolution synthetic aperture radar (SAR) and other advanced capabilities on subsequent test flights.”
The APG-81 has been ‘flying’ since 2005 on Northrop Grumman’s BAC-111 testbed and subsequently on Lockheed Martin’s 737 based CATBird testbed, but this is its first application in an F-35 airframe. “These last five years of comprehensive test bed aircraft flight testing involving the mission critical radar sensor, combined with the recent flight aboard the F-35 aircraft, point to a significant maturity in capability and reduction in risk for the F-35 program,” Leavitt added.
BF-04 is the first JSF development aircraft to be equipped with mission systems including Block 0.5 mission software including 60 per cent of the radar’s software. It is based at NAS Patuxent River near Washington.

* BAE WINS NEW NULKA DECOY ORDER: BAE Systems Australia has won a new contract to produce Nulka naval missile decoys for the Australian, US and Canadian navies, its 12th contract for the decoy.
The new agreement will see Nulka production extended through to at least 2013, earning the company more than $800 million since production started and making Nulka Australia’s most successful regular defence export.
“To date, 940 Nulka rounds have been produced. Later this year we will complete production of the 1000th round, which will be a very significant program milestone,” BAE Systems program manager Simon Forrest said. “Its deployment on more than 130 surface combat ships is a testament to the trust that the US, Canadian and Australian navies place in the system.”
The system comprises a tube launched, rocket propelled active electronic warfare decoy which launches and hovers away from the ship, and lures anti-ship missiles away from their targets.

* Thales Australia And Nammo Team On Next Gen Ammo:

Thales Australia and Norwegian firm Nammo signed a Letter of Intent at the Eurosatory exhibition to cooperate on developing aircraft ammunition.
The agreement will see the two companies develop the cannon round for the F-35 JSF, one that will be “capable of meeting all requirements and ensuring lethality against both soft and hard targets.”
“This cooperation will create a new platform for ammunition business between two industry leaders,” said Kjell Kringsjå, the executive vice president of Nammo’s Medium and Large Calibre Division. “Nammo’s APEX concept is based on more than 20 years of heritage in the aircraft ammunition business with presence on nearly all fighter aircraft of NATO and in the western world. This will give the air forces superior performance both in the air combat role and in the close air support role.”
“Our significant expertise in ordnance, combined with our world-class propellant technology, is the basis of what will be a highly productive partnership with Nammo and a product offering that will appeal to a wide range of international customers,” added Thales Australia CEO, Chris Jenkins. “I have high expectations for this cooperation. Not only will this create a broader basis for further business development, but it will also pave the way for industrial participation related to the F-35 program and entry into the aircraft ammunition area.”

* BOEING GETS C-130 AMP LRIP APPROVAL: The USAF has granted Boeing approval to commence low rate initial production for the C-130 Avionics Modernization Program (AMP) following a successful Defense Acquisition Board review.
The approval will see Boeing perform five AMP upgrades comprising a fully integrated, night vision goggle compatible, digital glass cockpit and new digital avionics that increase situational awareness and enhance safety. AMP will also provide cockpit commonality across various models of C-130E and H and special forces variants.

* UK GOVERNMENT SUSPENDS/REVIEWS SAR-H PROGRAM: Britian’s new coalition government has suspended February’s selection of Team Soteria as preferred bidder to deliver search and rescue helicopter (SAR-H) services to the Ministry of Defence and the Maritime and Coastguard Agency while it reviews the £4.6bn (A$7.8bn) program. The coalition is looking at the spending decisions made by the previous Labour administration in three months leading up to the May general election, accusing it of operating a “scorched earth” policy when it came to spending.
Treasury chief secretary Danny Alexander announced in the House of Commons on June 17 that the government had decided to axe 12 projects and suspend a further 12, worth a combined £10 billion. He noted that the SAR-H program, the largest of the 12 programs to be suspended, will be “reviewed as a matter of urgency”.
“The move [to review the program] was not unexpected as the incoming administration had clearly stated its intention to review the major projects approved by the previous government in the last months of its tenure,” said a Team Soteria statement. “Soteria is convinced that they offer the UK a robust value for money solution and they continue to work closely with the customer towards contract award.”
Team Soteria comprises CHC, Thales UK and equity partner RBS and offered the Sikorsky S-92. Planned as a 25 year private finance initiative deal, SAR-H was expected to begin operations from 2012 and would operate around 24 helicopters based around the UK.

* LOCKHEED MARTIN TO GO FIXED PRICE ON F-35 LRIP 4: Lockheed Martin has confirmed it expects to sign a fixed price contract for the fourth batch of low rate initial production (LRIP) F-35 jets in the next few weeks.
Speaking to media in Canberra on June 17, Lockheed Martin’s executive vice president for F-35 program integration, Tom Burbage, said company CEO Bob Stevens had undertaken to sign a fixed price contract instead of the more traditional cost-plus arrangement for the 32 aircraft to be built in LRIP 4 to show the faith the company has that its costs can come in significantly below those projected by the various US budget estimate processes in recent months. “We had intended the acquisition plan up to now to go fixed price in the sixth production lot, but our CEO decided to pull that forward and take the current lot fixed price just to try to put some stability in the cost discussions that are going on,” Burbage said.
Burbage’s comments were echoed a day later in Washington by Stevens in a similar brief to US media. “We are doing that because of the confidence we have in the program,” the CEO said.
Negotiations on the price of the LRIP 4 contract are ongoing, with the Pentagon reportedly asking for a price significantly below Lockheed’s initial offer, which itself was 20 per cent below the cost budgeted for. Burbage said he expected a handshake agreement to be reached soon and a contract to be signed before the US Congress rises for midterm elections later this year.
Burbage added that Lockheed Martin still expected the F-35 unit cost across all three variants to average about US$60m (A$70m) in 2010 dollars.

* Bae To Support Raaf Jsfs?

BAE Systems Australia and Lockheed Martin have signed an MoU which may lead to BAE being selected to conduct in-service support for the RAAF’s fleet of up to 100 F-35A JSFs when they enter service later this decade.
The MoU was signed by the director of aerospace for BAE Systems Australia, John Monaghan, and by Lockheed Martin’s VP global industrial integration, Bob Bolz, at BAE’s Williamtown facility on June 18.
“The first and fundamental element of the agreement is we have selected BAE Australia to be what we call a competitive strategic source for maintenance repair overhaul and upgrade of F-35 aircraft for Australia, with additional opportunities to come subsequently for other areas of the sustainment operations to support the RAAF,” said Bolz.
“Leveraging our capability at Williamtown will reduce the transition risk and cost of introducing the F-35 aircraft into service in Australia from 2018,” Monaghan said.
BAE currently conducts minor and major servicing of the RAAF’s fleet of Hawk 127 lead-in fighters and F/A-18A/B Hornets at Williamtown.

* Ferra To Make Titanium Jsf Components:

Brisbane based Ferra Engineering has signed a memorandum of agreement with Lockheed Martin to establish a “world’s first” facility to manufacture titanium spars for F-35 JSF vertical tails.
The agreement covers the transfer of Lockheed Martin developed technology for direct manufacturing of titanium components which offers savings through less wastage of titanium and reduced machining times. Production at the new facility is expected to begin in 2012, with deliveries following three years later. Ferra and Lockheed Martin will also explore other opportunities to utilise the technology.
“Ferra and Lockheed Martin have worked closely for the past 18 months on the direct manufacturing process, which will be integrated into the new facility,” said Lockheed Martin vice president for F-35 global industrial integration Bob Bolz in a June 17 statement. “This new process offers the potential to save between 30 and 50 per cent of the cost of machining aerospace titanium structural components, which are some of the most expensive components in the F-35 airframe.”
Ferra, which has for the last four years built weapon adaptor assemblies for low rate initial production F-35s, expects to employ approximately 200 people at the new facility once it approaches peak production volumes.
Ferra will be the sole source supplier for the titanium spars.

* FOURTH A330 ARRIVES FOR RAAF MRTT CONVERSION: Another ‘green’ A330 has arrived at Qantas Defence Services (QDS) in Brisbane ready for conversion to a KC-30A MRTT for the RAAF.
The aircraft, the fourth of the five on order and the third to be converted at Brisbane, was built as a standard A330-200 by Airbus in Toulouse, and will be substantially modified over a 10 month period into its MRTT form.
The second aircraft to be modified by QDS is nearing completion and is scheduled to receive ‘power-on’ in July, while the first joined the original Airbus modified aircraft in Spain late last year for flight test and certification work.
The first two KC-30As are due to be delivered to the RAAF by the end of 2010, with the remaining three due by early 2012.

* USAF “UNHAPPY” WITH GLOBAL HAWK PROGRAM: USAF acquisitions head David Van Buren has described as “unhappy” his feelings towards the management of his service’s Northrop Grumman Global Hawk UAS program, adding that the pace at which the system was maturing and proposals were being submitted was “excruciating.”
“Testing and delivery has been slower than expected,” Van Buren told journalists when describing the Block 30 version of the aircraft. “I am not happy with the pace of that program and we are not happy with the cost of the air vehicle.”
A Northrop Grumman spokesman dismissed many of the claims, telling the ‘DoD Buzz’ website that the company had delivered “cost reductions on Global Hawk’s block 20, 30 and 40 systems and the associated payloads…” and that “…overall cost of the air vehicle and the sensors is trending down, as the company predicted and expected.” But he conceded there had been “…cost spikes within production lots due to the quantity procured within each lot.”
Van Buren said a cost review had been ordered and was due to report by the fourth quarter.

* F-35B GOES SUPERSONIC: A Lockheed Martin F-35B STOVL variant of the JSF has exceeded the sound barrier for the first time.
The milestone, achieved by development aircraft BF-02 on its 30th flight, saw the aircraft achieve Mach 1.07 at 30,000ft during a sortie from the US Navy’s test facility at Patuxent River near Washington DC. BF-02 is one of four F-35Bs based at Pax River for flight testing.
Two F-35As have already achieved supersonic flight, the first being AA-1 in 2008 before it was retired for battle damage assessment testing.

Military briefs

* USAF ORDERS MORE C-27Js: The USAF has placed an order for eight C-27J tactical transports from Finmeccanica, bringing to 21 the total number of C-27Js ordered for the service.
Under the previous Joint Cargo Aircraft (JCA) requirement for the USAF and US Army, as many as 108 C-27Js were to be acquired, but this has been reduced to a just 39 aircraft with the Army’s withdrawal from the JCA program.
Funding for a further eight C-27Js has been included in the FY2011 budget currently going through the various approval processes in the US.

* F-35A COMPLETES STATIC TESTS: An F-35A static test aircraft has completed full-scale static testing five months ahead of schedule and with zero structural failures.
The aircraft, dubbed AG-1, was used to test the structural integrity of the F-35A design and was taken to 150 per cent of its design limits or 13.5 gs in 174 critical load condition scenarios.
The testing was conducted at BAE Systems’s Structural & Dynamic Test Laboratory at Brough in the UK, and was completed in  295 days.

* BOEING ST LOUIS WORKERS VOTE TO STRIKE: Boeing’s St Louis based union machinists who work on F/A-18E/F Super Hornet and F-15K/SG Eagle fighters and other Boeing military programs have voted to strike following their rejection of a contract offer from the company.
The strike vote was an overwhelming 4-1 in favour by the nearly 2100 workers after they rejected a new contract which would have seen them gain a 3.6 per cent salary increase per year over four and a half years as well as increased pension benefits. Union leaders are objecting to a clause that would see employees hired after 2012 not receive the same pension benefits as those currently employed.
“The work we perform here in St Louis is critically important to our country and the men and women of our armed services,” a company statement read. “The fair and equitable contract we put forward recognises the contributions made by our union employees in terms of enhanced salary, benefits and pension.”
The union says it will wait until June 16 before officially informing Boeing in writing of its intention to strike, and will then take a seven day cooling off period to allow for further negotiations.
The strike vote follows a similar month long strike which recently ended at Boeing’s Long Beach C-17 production line. Workers there returned to work in early June after objecting to a similar pension clause in their new contracts.

Military briefs

* Australian company Micreo has produced its 500th component for Raytheon’s ALR-67(V)3 radar warning receiver. Micreo was inducted into the supply chain in early 2008 and has been supplying radio frequency modules for all ALR-67(V)3s including those being retrofitted to RAAF F/A-18 ‘classic’ Hornets and those delivered with the F/A-18F Super Hornets.
* Boeing has been awarded a five year contract to upgrade the USAF’s fleet of KC-10 Extender tankers with new communications, navigation, surveillance, and air traffic management (CNS/ATM) equipment. The USAF operates 59 KC-10s, and the work is scheduled to be complete by 2015.
* Lockheed Martin successfully tested its Scorpion GPS guided glide munition from a C-130 Hercules on June 17 at the Yuma Proving Ground in Arizona. The lightweight Scorpion is designed to be employed from multiple platforms from AC-130 gunships to UAVs against structures, personnel, lightly armoured vehicles, trucks, cars, missile launchers, and artillery or gun positions with little collateral damage, and features folding wings and fins for tube launches, and a Semi-Active Laser (SAL) for terminal guidance.
* China’s People’s Liberation Army Air Force retired the last of its Shenyang J-6 fighters during a ceremony on June 12. A licensed copy of the MiG-19 ‘Farmer’ fighter, the Soviet Union’s first supersonic fighter, more than 4000 J-6s were built for the PLAAF between 1958 and the early 1980s, and hundreds more were exported as the F-6. The aircraft was retired from front line service in 2005 but had remained in service as trainers (as the JJ-6) and drones.

Airlines

* V Australia To Come Under Virgin Blue Management:

Virgin Blue CEO John Borghetti has issued a memo to Virgin Blue staff outlining his new executive team, as well as plans to integrate the airline group’s long haul and short haul operations more closely.
Under the planned changes, V Australia’s operations will become integrated with those of Virgin Blue, reversing the current structure which sees V Australia operate as a standalone business within the Virgin Blue Group. The move will “increase accountability, remove duplication and create greater integration across our domestic and international network,” according to Borghetti.
As part of the changes, both carriers will now come under the headship of a new executive team, with V Australia general manager Scott Swift currently left without a defined role.
Another big change is the announcement by chief operating officer, now group executive operations, Andrew David, that he will leave the airline by the end of the year. Meanwhile, chief commercial officer Liz Savage’s role has been recast as group executive of commercial, in charge of network and revenue management, while Martin Daley, who was recruited to Virgin Blue from Virgin Atlantic in early 2000, has been promoted to the role of group executive for product and guest services. Former Qantas head of government relations Jane McKeon will also form part of the executive management team as group executive of government relations.
The management changes and integration of V Australia comes as Borghetti is expected to announce a new brand for the Virgin Blue Group airlines, which also includes Pacific Blue and Polynesian Blue. It is expected that this will also come with other changes, such as the adoption of a dedicated business class cabin and other service enhancements aimed at making further inroads into the corporate and government travel markets.

* Qantas Execs Return Home From Vietnam:

Two Qantas executives who had been prevented from leaving Vietnam have now arrived back in Sydney after the Vietnamese government terminated its investigation into fuel hedging losses at Jetstar Pacific.
Tristan Freeman and Daniella Marsilli, who were seconded to the Vietnamese carrier as its chief financial officer and chief operating officer respectively, had been prevented from leaving the country in December after the Vietnamese government commenced an investigation into fuel hedging losses by the carrier. Qantas defended the two executives, with an internal investigation clearing them of any wrongdoing. Nevertheless, they were prevented from leaving the country until the investigation was completed.
The incident over the two executives appears to be part of a wider move within some parts of the Vietnamese government to frustrate Qantas’s 30 per cent investment in the Ho Chi Minh City based low cost carrier. More recently, the government has announced plans to stop the carrier from continuing to use the Jetstar name and logo, although this threat appears not to have been carried out.
Despite the seemingly poor relations with the Vietnamese government, which owns most of Jetstar Pacific, Qantas says that it is not planning to divest itself from the carrier.

* LOAD FACTOR STABLE FOR VIRGIN BLUE: The Virgin Blue group recorded a static 72.4 per cent revenue load factor for May, as a moderate increase in load factors on international services offset a fall in domestic loads.
Overall, the group’s passenger numbers increased by 4.6 per cent for the month, which pushed revenue passenger kilometres (RPKs) up by 18.3 per cent. This matched capacity growth of 18.4 per cent, resulting in load factor remaining unchanged compared to the same time last year.
Domestic passenger numbers for the month increased by 3.3 per cent, which pushed RPKs up by 2.7 per cent. This was overshadowed by a six per cent increase in capacity, resulting in load factor declining by 2.4 points to 75.3 per cent. International services saw a 13.3 per cent increase in passengers, with RPKs increasing by 59.5 per cent as capacity increased by 44.4 per cent, resulting in a 6.4 point increase in load factor to 67.8 per cent.

* QANTAS SEES PASSENGER INCREASE: Qantas says that premium traffic is starting to return as its May operating statistics showed that the overall airline group recorded a 5.6 per cent increase in passenger numbers compared to the same time last year.
Qantas’s domestic services fared well during the month, with passenger numbers up 4.7 per cent, although an 8.7 per cent increase in capacity resulted in revenue seat factor falling by 2.5 percentage points to 75.4 per cent. QantasLink recorded a 10.2 per cent increase in passengers which lifted RPKs by 5.2 per cent, although it was not enough to offset a seven per cent increase in capacity, resulting in a slight fall in load factor to 63.9 per cent.
Interestingly, Jetstar’s domestic services recorded a 1.1 per cent decrease in passenger numbers, while a 7.6 per cent increase in capacity saw load factor fall by 7.2 points to 74.4 per cent. Qantas noted that competition in the low fare market had continued, potentially leading to a fall in yield from the low cost carrier.
While it says that premium traffic “continues to improve”, Qantas International again recorded a 15.9 per cent decrease in passengers, although cuts in capacity resulted in load factor declining by only 3.4 points to 76.1 per cent. Jetstar International services saw a minor increase in load factor to 71.4 per cent as it was boosted by a 9.2 per cent increase in RPKs.

* STRATEGIC TO FLY BRISBANE-PORT HEDLAND-BALI: Strategic Airlines has announced plans to operate a weekly Brisbane-Port Hedland-Denpasar (Bali) flight from August 3 using a two class, 156-seat Airbus A320.
The Port Hedland-Denpasar service will depart Port Hedland every Tuesday at 2.15pm and arrive in Denpasar at 4.15pm. The return flight will depart Denpasar at 8.00am each Wednesday, and arrive at Port Hedland at 10.05am. From Brisbane the flight will depart 9:00am on Tuesday, arriving in Port Hedland at 12:45pm. The services are dependent upon regulatory approval, with Strategic planning to add a second weekly flight on the route on Saturdays from September.
“There has been overwhelming demand from people in Port Hedland – particularly from its fly-in/fly-out mining community – for leisure travel to Bali. Strategic is meeting this need with a full service that will have them in Denpasar within just two hours,” said head of commercial Damien Vasta. “At the same time, the Brisbane-Port Hedland route will open up travel between the west and east coasts of Australia with well priced services and business class seating options.”

* INTERNATIONAL PASSENGER TRAFFIC CONTINUES RISE: A new report from the Bureau of Infrastructure, Transport and Regional Economics (BITRE) shows that international passenger traffic growth in April slowed compared to previous months, but remained robust.
For the month, passenger traffic increased by 4.2 per cent to 2.059 million passengers, making it the first month since September 2009 to record growth under nine per cent.  Available seats increased by 6.2 per cent compared to the same time last year as the number of flights increased by 6.8 per cent. Overall seat utilisation percentage has decreased from 74.8 per cent in April 2009 to 73.2 per cent.
Qantas remained the largest international carrier, accounting for 19.8 per cent of international passengers, representing a decline of 2.6 percentage points, while Jetstar’s marketshare increased from 6.9 to 8.1 per cent. Overall, Australian designated carriers maintained a strong position as they accounted for 33 per cent of traffic during the month, which was down 0.1 percentage points. As in previous months, low cost carriers have increased their marketshare by 3.2 percentage points to 18.3 per cent.

* STRATEGIC UPS DERBY SERVICES: Strategic Airlines has announced that it will add one additional service on the protected Perth-Derby route from August 4.
The new service will be operated by a 156-seat, two class A320 on Wednesdays. It will lift the number of frequencies on the route to four per week.
Strategic’s head of commercial Damien Vasta said that the additional frequency was driven by strong demand from both corporate and community customers for additional flights to the Kimberley. “There is a further need for flights to connect with departures from Perth to other major ports, which the additional service on Wednesdays will provide. This will give our passengers better access to destinations beyond Perth,” he said.

* VIRGIN RECRUITS QANTAS EXECS: Virgin Blue has reportedly hired three Qantas executives to bolster its push into the lucrative corporate and government travel markets.
According to Fairfax Media reports, Virgin has poached Qantas’s former head of government relations Jane McKeon, who will take on a similar role at Virgin based in Canberra in coming months. Virgin has also managed to attract Qantas’s former head of pricing, Will Owens, who will become head of yield management. The airline has also employed former Creative Holidays managing director Justin Montgomery as its head of sales.
The reported appointments possibly signals an intent from new CEO John Borghetti to bring former Qantas staff he has worked with previously into Virgin to help spearhead a push into higher yielding corporate and government travel markets. Borghetti has already signalled that the carrier will look to introduce business class on its short haul flights, while a route review is likely to result in major changes to its V Australia operation.

* Tiger To Charge For Checking In At Counter:

Tiger Airways Australia has announced that it will charge passengers who only have carry-on hand luggage to use check-in counters for bookings made after July 1.
The airline says that those passengers travelling with only carry-on baggage and wanting to use a check-in counter to complete their check-in process will be able to pre-pay a $10 surcharge at the time of booking, while those who have not pre-paid will have to pay a $15 surcharge to use the counter check-in. Passengers will have the option of using web check-in for free, while passengers who have checked baggage will not be charged for using airport check in facilities.
“We want to reward travellers who use web check-in with our lowest fares,” said the airline’s managing director Crawford Rix. “Passengers who carry only hand luggage but want to use our airport check-in facility will now pay a fee to do so. More Tiger Airways customers checking in online means a better airport experience for more people and reduces our costs so that we can continue to drive down airfares in Australia.”
Charging for the use of check-in counters is not without precedent, with Ryanair introducing the practice in 2007 as part of a move towards all passengers using web check -in. In October 2009, the Irish budget carrier switched to only offer online check-in and bag drop counters at airports, which it says allows it to offer lower fares than competing airlines.

* Qantas Reaches New Deal With Engineers:

Qantas and the Association of Professional Engineers, Scientists and Mangers Australia (APESMA) have ended their long running working conditions and pay dispute.
In a new agreement, the airline’s approximately 190 professional engineers will receive a four per cent wage rise and increases in superannuation. APESMA has also won a concession which will allow engineers to take rest periods after being called out overnight, as well as more access to professional development programs.
“This is a good result for Qantas professional engineers and shows what can be achieved when workers take a stand to ensure the quality of their work is maintained,” said APESMA senior industrial officer Alison Rose. “It is also a good result for Qantas because it will bring in significant improvements to the way safety is managed within the airline by addressing those issues critical to its maintenance.”
Qantas’s professional engineers have been involved in limited industrial action on and off for over a year, mostly through overtime bans. While only a small part of the airline’s group of engineers, they must sign off on significant maintenance items before an aircraft is cleared to fly.

* Air India To Fly To Melbourne:

Melbourne Airport has announced that Air India will fly to Melbourne from Delhi from November 1 this year.
The Indian flag carrier will operate daily services with a Boeing 777-300ER. Air India will also establish its regional headquarters in Melbourne.
“The Indian market is consistently growing, in fact last year, there was a 34 per cent increase in visitors from India to Victoria, and Air India, by choosing Melbourne as their base, have seized this market opportunity,” said Melbourne Airport CEO Chris Woodruff. “It is clear that Melbourne and the offerings of greater Victoria are instrumental to the growth of the education, leisure and business markets.”
The Air India announcement is the latest victory for ‘Team Melbourne’, which is an initiative headed by the Victorian government and Melbourne Airport aimed at attracting new international airline services.

* STRATEGIC TO LAUNCH PILBARA-BALI SERVICES: Strategic Airlines has lodged an application with the International Air Services Commission (IASC) seeking an allocation of unlimited capacity on the Indonesia route to allow it to launch flights from Karratha and Port Hedland to Denpasar (Bali).
In its application to the IASC, Strategic says that it intends to operate the services from August 2010 utilising a 156-seat Airbus A320. Strategic already operates a three times weekly service between Perth and Denpasar with an A320 utilising rights it acquired from the administrators of OzJet Airlines last year.
Currently, the IASC’s register of available capacity shows that there are no additional seats available under the Indonesia-Australia bilateral air services agreement, but the agreement does allow for unlimited capacity to and from cities other than Perth, Brisbane, Sydney and Melbourne. As such, it appears that the IASC will grant the allocation unless it can be shown that it is not in the public interest.
If Strategic is granted the capacity, it will be the first Australian airline to operate a scheduled service to Denpasar from Karratha and Port Hedland. Skywest currently operates a weekend service from Broome to Denpasar via Port Hedland as a charter service with a 100-seat Fokker 100.

* Atsg Buys Qantas 767s:

US company Air Transport Services Group (ATSG) Inc has executed a letter of intent to buy three Boeing 767-300ERs from Qantas.
ATSG did not disclose the purchase price for the three aircraft, but it is expected that the GE powered aircraft will be delivered during the third quarter of the year. Market prices for similar aircraft are currently between US$28.5m-$31.5m (A$32.3-35.7m).
ATSG operates three cargo carriers, including ABX Air and Air Transport International, which wet leases a 767-200F to Qantas Freight Enterprises, as well as maintenance and cargo leasing businesses. As such, it is expected that the aircraft may be converted to freighters.

* Qantas Applies For Saa Codeshare Extension:

Qantas has lodged an application with the International Air Services Commission (IASC) seeking a two year extension to its codeshare arrangement with South African Airways (SAA) on the South Africa route.
Under its arrangement, which started in 2000, SAA buys a ‘hard block’ of seats and codeshares on Qantas services from Sydney to Johannesburg, while Qantas does the same on SAA’s Perth-Johannesburg services. Both carriers price and sell their seats separately. Qantas is seeking reauthorisation for the codeshare arrangement for two years, with effect from January 1 2011.
“Qantas believes that the continuation of the codeshare arrangements provides an efficient use of capacity that enhances the viability of the carriers in the face of increasing competition, and maximises the public benefit,” the airline said in its application. “Discontinuing the codeshare arrangements would result in significant increases in average costs for both airlines and erode these public benefits.”
From September, Qantas will fly daily between Sydney and Johannesburg utilising Boeing 747-400s, while SAA currently flies daily A340-600 services to Perth. V Australia is the only other direct operator between Australia and South Africa, and flies twice weekly on the Melbourne-Johannesburg route, which will rise to three times weekly in December.

* UPWARD TREND CONTINUES FOR ASIAN CARRIERS: Passenger and freight traffic continued its strong upward trend through May, according to statistics released by the Association of Asia Pacific Airlines (AAPA).
Passenger numbers for the month increased by 17.6 per cent compared to the same time last year, pushing revenue passenger kilometres (RPKs) up by 14.6 per cent. Capacity growth of 3.3 per cent resulted in load factor increasing by 7.3 percentage points to 74.6 per cent.
Freight also continued its rebound, with demand up by 39 per cent, as measured in freight tonne kilometres. That outstripped a 22.2 per cent growth in capacity, resulting in an 8.7 point increase in load factor to 72.6 per cent.
AAPA director general Andrew Herdman said that the figures were a positive sign for the industry. “Both business confidence and consumer sentiment are signalling a generally positive outlook for the second half of the year. This should give a boost to the travel and tourism industry, which is a significant driver for many economies in the region. Hopefully that, in turn, will be reflected in improved financial results for the region’s airlines.”

* QANTAS MOST ON TIME IN MAY: Qantas recorded the highest rate of on time departures during May, while Regional Express was the best performing regional carrier, according to a report from the Bureau of Infrastructure, Transport and Regional Economics (BITRE).
For the month, Qantas recorded an on time departure rate of 89.7 per cent, followed by Jetstar at 86.9 per cent, Virgin Blue at 86.4 per cent and Tiger Airways at 78.6 per cent. The regional airlines were led by Regional Express at 88.9 per cent, followed by QantasLink at 87.9 per cent and Skywest at 87.1 per cent.
Virgin Blue experienced the highest rate of cancellations for the month, with 1.2 per cent of its schedule cancelled, followed closely by Qantas at 1.1 per cent. Rex recorded the lowest rate of cancellations at 0.1 per cent.

* VIRGIN BLUE SET FOR IDENTITY CHANGE? Virgin Blue CEO John Borghetti is reportedly set to present a new business plan for the airline to its board this week, which will include plans to introduce business class and possibly widebody aircraft on short haul services and the adoption of a new name as the airline group plans to increase its share of the lucrative corporate market.
According to a report in ‘The West Australian’ by AA contributor Geoffrey Thomas, Borghetti will present a plan to offer dedicated business class in place of the current premium economy product on Virgin Blue and Pacific Blue services as the carrier aims to gain a greater share of the corporate market which is dominated by Qantas. The airline is also likely to consider bringing on widebody aircraft on some domestic Australia services, with some analysts suggesting that Airbus A330s or Boeing 767s could be added in the short term ahead of a likely order for 787s. New uniforms for staff are also on the agenda.
Borghetti is also likely to push to bring the airline group’s three brands – Virgin Blue, Pacific Blue and V Australia – together under the Virgin Australia name. For a number of years, the use of the Virgin brand in the Pacific outside of Australia had been vetoed due to an agreement between Sir Richard Branson’s Virgin Group and Singapore Airlines, but some sources indicate that a compromise may have been reached. In an interview last year with ‘AA’, previous CEO Brett Godfrey noted that he had been working on merging the three flying brands together.
The reports come only weeks after Borghetti told analysts that Virgin Blue’s push into premium economy had been only marginally successful. The airline is also understood to have been involved in a major review of its routes, which will likely see it withdraw from some leisure markets.

* Cobham And Alliance To Be Acquired By Carlyle?

US private equity fund the Carlyle Group has reportedly moved to acquire Alliance Airlines and Airwork parent company Contract Aviation Industries and is also interested in acquiring Cobham Aviation Services Australia (formerly National Jet Systems).
According to a report in ‘The Australian’ newspaper, Carlyle has made a $350 million bid for CAI, which was formed earlier this year through the merger of Alliance and Airwork ahead of a planned listing on the ASX. The listing was put on the backburner after Carlyle approached the company over a possible buyout. There has been no confirmation yet of whether the takeover offer has been accepted by the shareholders of CAI.
Meanwhile, the ‘Australian Financial Review’ reports that Carlyle has started due diligence on a possible acquisition of Cobham’s Australian operations, which currently operates Boeing 717s on behalf of Qantas, BAe 146s for Australian air Express and a series of resource charters. It also provides Coastwatch services on behalf of Australian Customs under a 12 year contract with a fleet of modified Dash 8 Q300s.

* Virgin Blue Moves To New Skies:

Virgin Blue has completed its move across to a new $10 million computer reservations system, which promises the carrier more functionality.
The changeover from its Open Skies system to the Navitaire New Skies system was successfully completed over two days during the Queen’s Birthday long weekend to minimise any downtime. During the 28 hour cutover period, passengers were checked in manually, while bookings and changes could not be made.
The new reservation system will allow for passengers to be recognised for their personal preferences, fare comparisons for up to 15 days around the day of travel as well as seamless booking of ancillary services such as car hire and hotels. Virgin Blue says additional functionality will be added in the future.
Initially the transition to New Skies went smoothly, but on June 18 according to reports the New Skies system crashed, which delayed about 20 Virgin Blue flights as passengers had to be checked in manually.

* Qantas, China Eastern Expand Codeshare

: Qantas and China Eastern Airlines have expanded their codeshare relationship to include new services from Australia to China via Singapore.
Under the expanded arrangement, Qantas will place its code on China Eastern’s three daily services between Singapore and Shanghai from July 1, while China Eastern will place its code on Qantas services from Singapore to Sydney, Melbourne, Brisbane, Perth and Adelaide.
The new arrangements supplement existing codeshares between the two carriers which cover domestic Chinese and Australian flights and some trans-Tasman services.

* SKYWEST SEES PASSENGER INCREASE: Skywest has released its May operating figures, showing that it had a 7.21 per cent increase in passengers on its RPT services for the month.
The increase in passenger numbers helped to push up revenue passenger kilometres by 9.53 per cent, while capacity increased by 1.13 per cent. Load factor increased by four percentage points to 52.75 per cent. Charter capacity in ASKs increased by 13.42 per cent.
Meanwhile, ‘Flight International’ has revealed that Skywest has been utilising a Boeing 737-700 wet leased from Virgin Blue to operate charter services on behalf of Fortescue Metals Group to Cloudbreak since May 18, replacing one of its Fokker 100s which previously operated the services. The wet lease is understood to be an interim measure until August when the airline plans to introduce its first Airbus A320 onto the route. The aircraft is currently undergoing testing and compliance checks in Melbourne.

* Tiger Airways Returns To Darwin:

Tiger Airways recommenced services to Darwin on June 18, with the carrier starting daily services from Melbourne for the peak tourist season.
“The return of Darwin to our network is something we have been working on closely with Darwin Airport and Tourism NT,” said Tiger’s managing director Crawford Rix. “With six weekly flights commencing from this Friday, Tiger Airways will provide a significant boost for inbound tourism for the Territory, providing more than 110,000 visitor seats through Darwin Airport annually.”
The return of flights to Darwin also coincides with Tiger carrying its four millionth passenger. The lucky passenger, who was to be on board the return Darwin-Melbourne flight, was to be presented with a $400 voucher for travel on Tiger by Rix at Darwin Airport.
Tiger first served Darwin in 2005 from Singapore, and later added flights from Melbourne in 2007 when it commenced domestic Australia services. It later withdrew all flights from Darwin in October 2008, citing high airport costs.

* DOMESTIC TRAFFIC RISES IN APRIL: There were 4.43 million domestic passengers in Australia during April 2010, representing a 5.1 per cent increased over the same time last year, according to data from the Bureau of Infrastructure, Transport and Regional Economics (BITRE).
The increase in passengers brought revenue passenger kilometres up by 4.1 per cent, while capacity increased by 5.8 per cent. As a result, industry-wide load factor decreased from 79.3 per cent in April 2009 to 78.0 per cent. The number of aircraft trips increased by 7.7 per cent to 48591.
By route, the greatest increase in passengers was on the Adelaide-Brisbane route, where traffic was up 20 per cent. This was followed by Karratha-Perth (up 18.3 per cent), Brisbane-Rockhampton (up 17.7 per cent), Adelaide-Sydney (up 15.0 per cent) and Melbourne-Sydney (up 14.8 per cent). The biggest decrease in traffic was on Adelaide-Canberra (down 14.3 per cent), followed by Brisbane-Hamilton Island (down 10.2 per cent), Adelaide-Perth (down 9.0per cent) and Ballina-Sydney (down 7.2 per cent).

* DISCOUNT FARES DOWN: The Bureau of Transport and Regional Economics (BITRE) has released its domestic air fare index for June, showing that discount airfares remain sharply lower than over the same time last year.
The index in the best discount category for June 2010 stands at 62, down from 80.8 in June 2009, while the restricted economy index fell from 95.8 to 93. Additionally, the full economy index increased by 0.4 points to 91.2, while the business index decreased from 103.7 to 94.5.
The index appears to confirm recent comments from Virgin Blue CEO John Borghetti that fares, especially discount airfares, have remained depressed as capacity in the domestic market has increased. Also playing a large part appears to be ongoing fare wars between Jetstar and Tiger Airways, while the drop in the business fare index may also signal some weakness in the corporate market.

* BA LAUNCHES NEW PROGRAM FOR AUSTRALIAN SMEs: British Airways has launched its On Business loyalty program, which allows Australian small and medium enterprises to earn points on BA flights which can be redeemed for reward flights and upgrades.
Run in tandem with the airline’s Executive Club loyalty program, companies who register can manage their own accounts, view their points balance and past transactions, redeem points for reward flights, upgrades, hotel stays and see their estimated cost savings on a monthly basis.
“The On Business initiative is part of our commitment to stimulate local business and forge long term relationships with our important business customers,” said Nicole Backo, BA’s regional commercial manager.
“If a British Airways customer is an employee of a company registered for On Business and is a member of the Qantas or any other oneworld frequent flyer program, they have the added bonus of earning miles in their chosen club, as well as reward points for their On Business company, it’s a win-win initiative,“ she added.

* AIR NZ SEES INCREASE IN PASSENGERS: Air New Zealand has released its May operational statistics, showing that the carrier experienced a 3.9 per cent increase in passengers for the month, although yields were lower than the same time last year.
The increase in passengers came from increases on domestic and long haul services to North America and the UK, which increased by 6.0 and 4.8 per cent respectively. Demand, in RPKs, increased by 1.8 per cent, while a 0.7 per cent reduction in capacity saw load factor increase by 1.9 percentage points to 77.6 per cent.
The airline also noted that yields were down 7.9 per cent across its operations compared to May 2009. This was led by long haul yields, which were down by 12 per cent, while short haul yields decreased by six per cent.

* JETSTAR TO FLY DIRECT MELBOURNE, AUCKLAND-SINGAPORE SERVICES: Jetstar has announced that its first widebody routes from its Singapore long haul hub will be to Melbourne and Auckland from December and March respectively.
The airline will operate daily direct services on the Singapore-Melbourne route with two class Airbus A330-200s from December 16, while direct daily flights to Auckland will commence on March 17 2011. Jetstar has commenced sales on the Singapore-Melbourne route, releasing some launch fares from $99 one way, while Auckland fares will go on sale soon. Qantas will codeshare on both services.
“Connecting our three largest operations in Australia, New Zealand and Singapore strengthens each of these businesses and builds a solid foundation for future growth beyond Singapore to North Asia and Europe,” Jetstar CEO Bruce Buchanan said.
Interestingly, it appears that the Melbourne-Singapore services will be operated on Jetstar’s Australian operating certificate, with the flights bearing the ‘JQ’ designator, while the flights to Auckland have the Jetstar Asia ‘3K’ designator.
Jetstar already operates a daily one-stop service between Melbourne and Singapore (via Darwin) with its fleet of A320s. It also flies daily from Perth to Singapore with A320s.
Jetstar is also expected to announce further widebody routes from Singapore in coming months as it establishes its long haul hub there and seeks to compete with Kuala Lumpur based AirAsia X. Services to destinations in southern Europe or North Asia are understood to be under consideration.

* QANTAS UPS SYDNEY-PERTH SERVICES: Qantas will add another six weekly services between Sydney and Perth from July this year, taking its total frequency on the route to 54 return flights per week.
The new services will depart from Sydney daily between Sunday and Friday at 3:10pm, while the services from Perth depart at 7:05am and operate daily between Monday to Saturday.
“These additional services will enable growth on the Perth to Sydney route and is a sign of improving passenger demand in this market,” said Qantas’s regional general manager Western Australia Ian Gay.
Qantas has been adding capacity to its WA routes, primarily to support growth in the mining and petroleum industries. The carrier recently commenced new nonstop services from Melbourne and Sydney to Karratha, as well as boosting services from Perth.

* Airasia X To Be Separated, Ipo:

The AirAsia Group has announced a restructuring that will see AirAsia X operate more independently from the Malaysian carrier, while the long haul affiliate is also aiming to launch an initial public offering during the second half of 2011.
“After more than two years of operation, we have begun to notice some dilution of the AirAsia business model and recognise the need for AirAsia and AirAsia X to remain focused on their respective markets,” said AirAsia Group CEO Tony Fernandes. “Nevertheless, we are extremely pleased with how quickly AirAsia X has grown in the two and a half years since its birth.”
The new arrangement will see AirAsia X take on responsibility for its day to day operations and commercial strategy, although it will continue to use the AirAsia brand and website under a 30 year agreement. Much of the commercial strategy and operations between AirAsia and AirAsia X have been shared despite the two companies operating on different air operators’ certificates.
Although converging with their branding in recent years, AirAsia and AirAsia X are two different companies, with AirAsia X emerging from former regional airline FlyAsianXpress in 2007 to operate long haul services with a fleet of Airbus A330-300s. AirAsia X’s investors include AirAsia, the Virgin Group, Orix and former Air Canada CEO Robert Milton.

Airline briefs

* QantasLink commenced its first Cairns-Port Moresby service on July 1, heralding the first time a Qantas branded carrier has operated flights to the Papua New Guinea capital since 2002. The airline will operate 12 times a week on the route, which will be operated with 74-seat Bombardier Q400s.
* Regional Express has announced that it will implement a more business friendly schedule on the Griffith-Melbourne route from July 19. The new schedule sees the departure from Melbourne moved up from 10:30am to 5:00pm with the return flight from Griffith now departing at 6:30pm. The services will continue to operate every day except Saturday.
* Qantas has announced that it has sold its shareholding in Asian express cargo operation DPEX Worldwide to Toll Holdings for an undisclosed sum. Qantas said in a statement that the sale was part of its “ongoing strategy of focusing on core business areas.” The sale excludes DPEX’s Australian operations, and is subject to approval from Chinese competition authorities due to the existing scale of the two company’s operations in China.

AIRPORTS

* SYDNEY CUTS CAR PARKING CHARGES: Sydney Airport has announced that it has introduced a free 0-15 minute time band at its international car park for drivers picking up and dropping off passengers from Terminal 1. Previously, users of the carpark were charged $7 for the first 0-15 minutes at the carpark.
“This change has been made following the successful introduction last year of the T2 Domestic Terminal pick-up area. The initiative at T2 received a very favourable response so we reviewed the situation at the International Terminal to see what we could do there to improve the user experience,” said Sydney Airport CEO Russell Balding.

* Sydney Airport Proposes To Regional Airline Fees

: Sydney Airport has applied to the Australian Competition and Consumer Commission (ACCC) to allow it to increase security, passenger facilitation and runway charges for regional airlines for the first time since 2001.
The proposed changes will see security charges rise three cents to 90 cents per passenger, passenger facilitation charges at Terminal 2 increase by 13 cents to $4.63 per passenger, and runway charges increase by 10 cents to $3.54 per tonne. The airport says that the proposed fees represent a 2.9 per cent increase, representing one year of inflation and is significantly less than the 28.9 per cent increase in the CPI since 2001.
“Sydney Airport is unique in the Australian aviation industry in that its regional aeronautical fees are subject to government price regulation, so the approval of the ACCC will be required before the increases take effect,” said the airport’s CEO, Russel Balding.
Sydney Airport says that the charges will not apply to QantasLink, Jetstar or Virgin Blue, which have separate commercial agreements with the airport, while there will be no changes to regional airline access.
Transport Minister Anthony Albanese recently moved to extend a determination which effectively limits Sydney Airport’s ability to increase charges only by the CPI.

Airport briefs

* Auckland Airport has recorded a major boost in domestic passenger traffic during May as international traffic saw only a small increase. The airport recorded a 7.1 per cent growth in domestic passengers, despite a one per cent decrease in domestic aircraft movements. International traffic managed growth of 1.3 per cent as major growth in arrivals from China, Japan and Korea helped offset falls in arrivals from Fiji, India and Australia. International aircraft movements during the month increased by 4.3 per cent.

General Aviation

* Aviation Associations Forum Condemns Fuel Tax Increase:

The Australia Aviation Associations Forum, which represents a number of local industry bodies, has condemned the move by the federal government to increase taxation on aviation fuel, which it says could cost the industry in excess of $20 million per year.

“The surprise announcement of a 25 per cent increase in fuel tax in the budget has perplexed an industry that is committed to safety but which must keep a close control on any additional costs,” said Chris Manning, the independent chair of the forum.
“The alarm of the industry is due to the fact this new tax came without any consultation, negotiation or government understanding of the potential impact on operators, particularly regional and smaller aviation companies.”
The federal government increased the excise on aviation fuel from July 1 as part of a measure to fund additional aviation safety inspectors and capabilities for CASA. While not opposing the additional inspectors, the forum indicated that there was inequality in that the cost would be borne by the domestic aviation sector while some of the activities proposed by CASA will go towards surveillance of international operators.
“The forum feels very strongly that any increase in taxation for CASA should be preceded by a stronger efficiency drive within CASA,” said Manning. “Industry personnel at the coal face working with CASA daily identify more efficient and less costly means of CASA delivering the same or improved services, but government has no framework to work with industry on improved efficiency.”

* APPEAL TO RETAIN JOHANSON’S RECORD BREAKING AIRCRAFT: The South Australian Aviation Museum (SAAM) has launched an appeal to raise funds to keep Jon Johanson’s record breaking RV-4 aircraft in Australia.
The homebuilt flew around the world in both directions and across both Polar regions, and is under threat of being sold to the USA unless an appeal to buy the aircraft is successful. Johanson’s achievements included 53 world flight records plus the International Aviation Award.
The SAAM is hoping to raise $55,000 to purchase the aircraft through donations from the public and put it on permanent display at its facility in Port Adelaide. Donations can be made at the Museum or by contacting them through email at [email protected].

* Airservices Extends Rfaca Sponsorship:

Airservices Australia and the Royal Federation of Aero Clubs of Australia have extended their sponsorship agreement for a further three years, which provides for scholarships to assist young pilots to complete their training.
The sponsorship agreement supports the RFACA Learn to Fly Scholarship Competition that will see four Australians assisted to achieve their pilot’s licence each year of the agreement. Airservices provides $7000 for each scholarship winner to subsidise their training costs.
“We’re proud to support the work of RFACA as they help young people learn to fly safely and possibly consider a career in the aviation industry,” said Airservices’s acting general manager corporate relations and international affairs Michelle Bennetts.
“This agreement is part of our wider contribution to the aviation industry and we look forward to building on this association with RFACA.”

* FASTER DEPRECIATION FOR GA AIRCRAFT HITS CONGRESS: Lawmakers in the US have introduced a bill to Congress which if passed would extend bonus depreciation for businesses that purchase general aviation aircraft in 2010.
“Bonus depreciation is a powerful incentive to purchase a GA aircraft and is proven to increase sales during difficult economic conditions,” said Pete Bunce, president and CEO of the General Aviation Manufacturer’s Association. “It is the one tax provision we have asked Congress to pass to help offset the decline in sales due to the recession and bring back lost jobs.”
The US government first enacted accelerated depreciation on GA aircraft in 2008 and renewed it again in 2009 as part of economic stimulus measures. The measures allowed business to deduct an additional 50 per cent of the depreciable value in the first year instead of spreading it out over five years, which has helped some manufacturers to maintain strong sales despite the global economic downturn.
Australian aircraft dealers also reported a strong increase in demand from similar measures brought in during 2009 for business assets. The local GA industry has lobbied government to allow for accelerated depreciation as a way to renew the Australian GA fleet, although this has been to little avail.

* Cae Buys Into China Southern Flying School:

Canadian training giant CAE has purchased a 53 per cent stake in Jandakot based China Southern WA Flying College (CSWAFC) and will operate it as part of its CAE Global Academy network.
With the acquisition, the college will be operated as a joint venture between CAE and China Southern Airlines. CSWAFC has been in operation since 1993, providing basic training at Merredin in WA as well as advanced training at Jandakot for cadet pilots employed by China Southern.
Marc Parent, CAE’s president and CEO, said the acquisition would help to meet major demand for pilots, especially from China. “We are very pleased that our long time partner, China Southern Airlines, has chosen CAE to meet its growing need for the highest quality entry level pilots. Our plan in Australia is to grow the flight school and leverage the best practices in training we apply throughout the CAE Global Academy network,” he said.
The China Southern West Australian Flying College is the 11th location for the CAE Global Academy. The company also provides training in North America, Europe, Africa and Asia for more than 1800 cadets annually.

* BELL DELIVERS 1000TH 407: Bell Helicopter has delivered the 1000th production 407, with the aircraft going to Japanese company Shin-Nihon Helicopter Corporation Ltd.
The aircraft was handed over at a ceremony at Bell’s manufacturing facility in Mirabel, Canada. Shin-Nihon also operates 12 other Bell helicopters, and has had a 50 year association with the manufacturer. It will use the new 407 to perform powerline patrols and other missions including transportation of materials and equipment for construction, aerial survey and photography services.

* BONHOMME WINS NEW YORK RED BULL: Briton Paul Bonhomme has won the New York leg of the Red Bull Air Race over the June 19-20 weekend, while Australian pilot Matt Hall was forced to sit out the event following his near miss in Windsor.
Bonhomme edged out compatriot Nigel Lamb while Kirby Chambliss took out third place. Austrian Hannes Arch, who was only two points behind Bonhomme in the championship, placed fourth after hitting a pylon during the final race of the weekend. The result sees Bonhomme retain top position in the championship standings, five points ahead of Arch while Lamb holds third place.
Despite hoping to race in New York, former RAAF pilot Hall was forced to watch the racing from the stands after the race committee imposed sanctions on him following his contact with the water during the previous round in Windsor, Canada. “I’ve analysed everything since then,” said Hall. “We’ve changed the setup of the aircraft in an effort to reduce any risk of that ever happening again.”
Hall, who now holds eighth place in the championship, is now expected to come back into competition during the next round of the Air Race, which will be held on the weekend of August 7-8 in Lausitz, Germany.

* COMPOSITE WINGLETS FOR KING AIR CERTIFIED: Hawker Beechcraft Services has announced that it has received certification for its composite King Air winglets, which are now available as a retrofit on C90 and E90 model aircraft.
Hawker announced the winglets as a major part of its C90x upgrade package at the 2009 EAA AirVenture expo at Oshkosh.
“The King Air 90x package provides added value and versatility to an aircraft that already has a well deserved reputation as a workhorse,” said Christi Tannahill, HBC vice president, Global Customer Support. “By combining the upgrades and accomplishing the modifications during a single service event, operators can effectively multiply the return on their investment several times over. Additionally, the performance enhancements gained through the installation of the winglets will, over time, provide enough fuel savings to offset much of the cost of the modification.”

* PIPER MOJAVE CRASHES NEAR SYDNEY: The ATSB is commencing an investigation into the crash of a Piper Mojave at Canley Heights in Sydney’s southwest on the morning of June 15.
The aircraft, VH-PGW, took off from Bankstown Airport with a male pilot and a female nurse onboard. Shortly after takeoff, the pilot notified air traffic control that the aircraft was experiencing engine troubles and would return to Bankstown. Shortly afterwards, the aircraft came down in what is being reported as an attempted landing on Canley Vale Road, but the aircraft hit  powerlines before impacting the ground and catching fire.
Reports state that the 28 year old pilot and his passenger have been confirmed dead, while two adults and five students from a nearby school were taken to hospital suffering shock. The school was evacuated shortly afterwards.
The ATSB has launched an investigation into the crash, with five personnel dispatched from its Canberra headquarters to begin the investigation.

* EADS DISPLAYS ALGAE POWERED AIRCRAFT: EADS displayed a Diamond DA42 which has become the first aircraft powered solely by algae derived biofuels at the ILA Berlin Air Show last week.
Tests on the aircraft, which is powered by Austro Engine AE300 engines, showed that the aircraft consumed 1.5 litres per hour less than when powered by Jet-A1 fuel while maintaining the same performance. Analysis of the exhaust gasses also showed that there were eight times fewer hydrocarbons as well as significant reductions in nitrogen oxide and sulphur oxide emissions. EADS says that only minor adjustments and modifications were required for the demonstration flights.
“Our pure bio fuel flight from algae is a world first and an exciting milestone in our research at EADS,” said Dr Jean Botti, chief technical officer of EADS. “This opens up the feasibility of carbon-neutral flights and we will continue to focus our research in this exciting area. Third generation biofuels are more than just a replacement for fossil petroleum – they push the possibilities of future propulsion.”
Algae is seen as one of the most promising prospects for sustainable biofuels due to its ability to be grown in sewerage ponds and brackish water, as well as its rapid regrowth ability.

* FANS APPROVED FOR G450: Gulfstream Aerospace has announced that the US FAA has approved the use of the FANS 1/A  datalink on its G450 aircraft, making it the first large cabin purpose built business jet to use FANS.
The ability to use FANS 1/A applies to G450 aircraft equipped with the enhanced navigation package, which is available as part of Certification Foxtrot for PlaneView. The enhanced package adds Controller-Pilot Data Link Communication (CPDLC) to ADS-C, completing the aircraft’s FANS 1/A capability.
“This approval reflects the tremendous effort we’ve made toward preparing Gulfstream aircraft for the next generation of air navigation,” said Pres Henne, senior vice president, programs, engineering and test, Gulfstream. “Being able to offer ADS-C and CPDLC to our operators is important because they provide improved communications and operational efficiency. Our operators value that and we do, too.”

* AERIAL AG OPERATORS GET NEW MANAGEMENT SYSTEM: The Aerial Agriculture Association of Australia (AAAA) has launched its new Aerial Application Management System at its national convention.
“The Aerial Application Management System is a comprehensive package that will provide clients and the wider community with the peace of mind that accredited companies are safe, competent, legal and quality driven,” said AAAA president Ashley Miller.
The new program covers comprehensive risk management, business planning and government compliance as well as logistics management and a range of support functions.
“The Aerial Application Management System is one of the biggest innovations from the AAAA in the last 25 years, since the launch of the very successful Spraysafe program which has become the de facto national standard for aerial application competence,” added Miller.

BUSINESS AVIATION

* THIRD G250 FLIES: Gulfstream Aerospace has announced that the third and final G250 to be involved in the flight test program has made its first flight from Israel’s Ben Gurion airport.
The aircraft took off from Ben Gurion on June 28 at 10:30am local time and undertook a 2 hour and 56 minute flight which saw the aircraft reach a maximum speed of 250kt and an altitude of 20,000ft. The aircraft has now joined two others involved in the flight testing campaign, which have completed over 200 flying hours.
“It’s exciting to have all three test aircraft in the air,” said Pres Henne, senior vice president, programs, engineering and test at Gulfstream. “What’s even more exciting is the response we’re getting from the pilots. They’ve told us that the aircraft’s handling qualities are excellent, rivalling those of our large cabin aircraft.  That’s something we like to hear, because it means we hit the mark with our design. And we have our operators to thank for that, because they played a major role in creating this jet. This aircraft represents what they told us they wanted.”
The first G250 rolled out of the IAI manufacturing facility in Tel Aviv under its own power in October 2009. The G250 is on schedule for type certification in 2011.

* Fourth G650 Starts Flight Testing:

Gulfstream Aerospace has announced that the fourth G650 made its first flight on June 6, joining three other aircraft involved in the flight test campaign for the new type.
The aircraft, MSN 6004, will be the first G650 outfitted and tested with a full interior, which will be installed later this northern summer and used to evaluate the aircraft’s cabin systems.
“We’re delighted with the performance we’re seeing out of these aircraft,” said Pres Henne, senior vice president of programs, engineering and test, Gulfstream. “We’re equally thrilled with the streamlined manufacturing process, which involves 50 per cent fewer parts, bonded materials and precision build carts, which allow us to easily put aircraft pieces together. Our use of these advanced materials and systems – along with the three-dimensional solid models we utilised in the design process – have provided impressive results. We couldn’t be more pleased.”
The ultra-long range, ultra large cabin G650 was launched in March 2008 and is due to achieve FAA and EASA certification in 2011. Entry into service is expected in 2012.

* CITATION XLS+ TO TOUR: Australian Cessna dealer Aeromil Pacific has announced that a Citation XLS+ will commence an Australian sales tour from June 28.
The XLS+ typically seats eight passengers, with a cruise speed of 440 KTAS at 31,000ft and a range of 1858nm. The aircraft is powered by two Pratt & Whitney PW545C engines, which produce 18.32kN of thrust at takeoff.
Aeromil has not released specific dates for the tour, but it is believed that it will be shown at most capital cities around the nation.

* CESSNA HALTS MUSTANG PRODUCTION FOR JUNE: Problems with suppliers have forced Cessna to temporarily halt production of the Citation Mustang until early July.
According to media reports, the supplier issues have been related to flooding in Rhode Island which has prevented some suppliers from being able to produce components in time. As a result of the shutdown, Cessna is issuing rolling furloughs to about 200 workers at the Wichita, Kansas, facility where it produces Mustangs, but production is expected to restart in July.
So far, Cessna has not said how it expects the stoppage to impact on second quarter deliveries of the popular selling very light jet, but deliveries of aircraft already manufactured are continuing.

Maintenance, Support & Training

* Safc Gets Mustangs, New Sims:

Singapore Airlines Flying College (SAFC) has announced the arrival of its first of five new Cessna Citation Mustangs and new  simulators at its base at Sunshine Coast Airport.
“Singapore Airlines has invested more than $40 million in a new fleet of five Cessna Mustang C510 aircraft and two state-of-the-art flight simulators,” SAFC chairman Mak Swee Wah said. “This investment will continue to ensure the college is a superior training facility and reinforces our substantial and long term commitment to Queensland and international aviation.”
The five Mustangs will replace two Learjet 45s which SAFC has used to conduct advanced training for cadet pilots who go on to fly with Singapore Airlines. As well as its Sunshine Coast base, where it trains approximately 140 cadets each year, SAFC conducts basic flying training at Jandakot Airport.

* EMBRAER INCREASES SUPPORT FOR ASIAN CUSTOMERS: Embraer will expand its Regional Distribution Centre (RDC) in Singapore as part of a wider increase in support for its commercial and executive jet operators in the Asia Pacific region.
“Customer support is not only a priority at Embraer, but a significant aspect of the growth of our organisation across business lines,” said Alex Glock, managing director of Embraer Asia Pacific. “The enhancements to our customer support activities are part of our commitment to provide the best service available to our customers, and contribute to the conduct of their business.”
The enlarged RDC will provide round-the-clock spare parts, maintenance, repair and inventory services for Asia Pacific, including a greater inventory of spare parts for its business jet range which were previously based in Paris. The RDC will also enhance its customer support activities for its executive jet operators, in addition to its support activities for commercial operators.

* JAPANESE PILOTS TO TRAIN IN NZ: CTC Aviation Group and Nelson Marlborough Institute of Technology have signed an agreement which will see the two New Zealand based companies train pilots from Japan’s JF Oberlin University.
The agreement will see 17 pilots trained each year at CTC’s crew training centre in Hamilton from September this year, with 30 pilots to be trained each year afterwards. JF Oberlin University currently trains its students in the US, and CTC and NMIT were selected as part of a global search for new training partner.
CTC was also recently selected by Jetstar as one of two training providers for its recently launched cadet pilot program.

* Bda Wins New Approval:

Boeing Defence Australia (BDA) has had its FAA Part 145 Repair Station Certificate expanded to allow it to repair and overhaul wheels on 737NGs at its Amberley facilities.
The new approval will enhance BDA’s existing 737NG commercial and commercial-derivative aircraft (including the Wedgetail AEW&C) maintenance and repair services capability, and also benefit local

* New Fire Station And Control Tower For Broome:

Broome Airport will receive a new $20 million integrated fire station and air traffic control tower which is expected to become operational in 2011.
“As the first combined facility of its kind in Australia, the new, state-of-the-art Aviation and Rescue Fire Fighting service and air traffic control tower will bring together the major safety infrastructure at Broome Airport,” Transport Minister Anthony Albanese said at a ceremony in Broome on June 8.
The new facility will feature a four storey tower which will be fitted out with the latest technology and be built to withstand cyclones. Seven air traffic controllers and 20 aviation fire fighters will be based at Broome and will work across three shifts, providing ARFF and ATC coverage for all flights operating in and out of the airport.
Airservices currently operates its ARFF service from a hangar at the airport as a temporary measure. It will also erect a temporary control tower at Broome to provide air traffic control before the facility opens in mid 2011.

* VOCAL FEW RAISE AIRCRAFT NOISE COMPLAINTS: Airservices Australia CEO Greg Russell has told a Senate committee hearing that more than half of the 24,000 noise complaints received by the ATC provider came from only 20 individuals.
Russell noted that two-thirds of complaints received in Perth were from the same two people, while one-third of complaints in Sydney came from one person. “There’s a large disparity between the number of complaints and the number of complainants at some of these locations,” he said.
Russell admitted at the hearing that Airservices and the industry needed to better communicate with the community about changes to air routes and the benefits of new navigation technologies where aircraft noise has become an issue in recent years. “I think, frankly, if the industry doesn’t do that adequately, I see the opportunity for terrific technology that can help not just safety … not being successful,” he said. “And I think that would be a great shame.”
and international customers based in the Asia Pacific region through reduced turnaround times and freight costs, and a more convenient location. It also makes BDA the first Boeing subsidiary outside of the US to hold the certification.

* HAWKER PACIFIC ASIA BECOMES HBC AUTHORISED SERVICE CENTRE: Hawker Pacific Asia’s operation at Malaysia’s Subang Airpark at the Sultan Abdul Aziz Shah Airport has become an authorised service centre for Hawker Beechcraft, making it the first facility to be authorised in Malaysia.
“The number of King Air turboprops in this part of the world continues to grow as its reputation for versatility and durability expands,” said Christi Tannahill, HBC vice president, global customer support. “Hawker Pacific has also continued to extend its operations and reach by adding facilities and personnel at this location over the past two years to support business aircraft operations in the Malay Peninsula. We are pleased to be working with them in this key locale.”
Hawker Pacific opened its Subang Airpark operation in Kuala Lumpur in 2008 and has supplemented its original facilities with additional maintenance space over the past two years.

* CATHAY PACIFIC TO SELL HAECO STAKE: Cathay Pacific has announced that it will sell its 15 per cent stake in Hong Kong Aircraft Engineering Company Limited (HAECO) to its major shareholder Swire Pacific for HK$2,620m (A$411m).
“The transaction is driven by the strategic priorities of Cathay Pacific and will benefit our core aviation business”, Cathay’s chief operating officer John Slosar said. Despite the sale HAECO will remain the airline’s main provider of maintenance and overhaul services.
Cathay also recently sold its stake in the new cargo terminal being built at Hong Kong International Airport.

SECURITY

* PASSENGER FINED $4000 FOR BOMB HOAX: A 26 year old man has received a $4000 fine for saying that there was a bomb onboard a Jetstar aircraft to get passengers to “move a little quicker”.
Cairns man Noel Marama received the fine after he told fellow passengers on a flight that had arrived from Brisbane on June 27 that there was a bomb onboard the aircraft. Marama was then interviewed by Federal Police, and admitted that there was indeed no bomb. Magistrate Allan Comans labelled Marama’s actions as “completely irresponsible” as it could cause panic in this day and age. He was fined $4000 and recorded a conviction.

* Albanese Blasts Opposition On Cockpit Safety:

Transport Minister Anthony Albanese has blasted the Coalition for supporting a disallowance motion put forward by independent Senator Nick Xenophon which has again defeated changes by the government to cockpit access regulations.
“Twice now this government has, on the advice of security experts, attempted to put in place regulations which restrict access to only those with an operational, safety, security or training reason to be in the cockpit, closing a dangerous loophole in the nation’s aviation security laws,” said Minister Albanese.
“In a move that defies logic, the federal coalition – with support from the Greens and independents – has again removed these legal restrictions, leaving Australians to rely on industry self-regulation.”
The changes to the Australian Transport Regulations have been opposed by Xenophon and the Australian and International Pilots Association (AIPA), which have argued that they would prevent off-duty pilots from sitting in the flightdeck, potentially reducing safety. They have also argued that the regulations would change responsibility for cockpit access from the operator to the individual pilots sets a “dangerous precedent” for other countries.

Atc & Airspace

* Tasmania Gets Wam Radar:

Airservices Australia says that safety in the skies over Tasmania has increased with the commissioning of Australia’s first Wide Area Multilateration (WAM) radar system, which provides enhanced en route surveillance of air traffic across Tasmania at Launceston Airport and down to the surface at Hobart for the first time.
The $6 million system uses 14 dispersed antenna ground stations to determine an aircraft’s position without the need for a traditional rotating radar through the use of multilateration and ADS-B (Automatic Dependent Surveillance – Broadcast) technologies.
“The provision of precise aircraft position and identification information will allow air traffic controllers to track aircraft in controlled airspace where radar coverage hasn’t previously been possible,” said Airservices’s general manager technology & asset services Alastair Hodgson.
“Additionally, for the first time in Tasmania ADS-B receiver functionality will provide coverage over most of Tasmania and into Bass Strait.”
The system has been operating for the past 12 months and running in parallel with a temporary transportable radar at Launceston. WAM provides a wider range of surveillance across the state than the partial coverage afforded by the radar. The transportable radar equipment will be redeployed from June 28 to support the refurbishment of air navigation surveillance at other airports.

AIR SAFETY

* NEW FUNDING FOR CASA PASSES: Parliament has passed legislation which will increase the excise on aviation fuel which will increase funding to CASA.
The rise in excise to 3.556 cents per litre will provide an additional $89.9 million annually to CASA. The government says that this will allow it to employ an additional 97 safety specialists, safety analysts and airworthiness inspectors to increase its surveillance of operators, provide for a permanent random drug and alcohol testing regime, and boost the resources of the Office of Airspace Regulation.
“Our large additional investment in CASA’s highly professional workforce builds on the reforms we’ve made to the organisation’s governance arrangements with the appointment of a small board of experts to oversee its strategic direction,” said Transport Minister Anthony Albanese.
Albanese had previously attacked the Opposition for its decision to refer the legislation to a Senate committee when it had already been approved by two bipartisan Senate committees.

* OPPOSITION HOLDS UP CASA FUNDING LEGISLATION: Transport Minister Anthony Albanese has attacked the Coalition for referring legislation to increase aviation fuel excise to boost CASA’s resources to a Senate committee.
“The Federal Coalition’s decision to refer the legislation off to a Senate committee is yet another example of their bloody minded opposition to everything, particularly given it has already been extensively scrutinised,” said Minister Albanese, adding that the legislation had already passed two bipartisan Senate committees and the Economic Legislation Committee.
The legislation under debate would see the excise on aviation fuel rise from $0.02854 to $0.03556 per litre. The government says that this would allow CASA to employ 97 additional aviation safety staff, including inspectors, expand training for its current staff, and continue to fund the Office of Airspace Regulation.

PEOPLE

* NEW QANTAS CIO: NSW Department of Education chief information officer (CIO) Stephen Wilson will take on the same role with Qantas from August 30, according to reports, replacing Segar Reddy, who has resigned. Wilson will report to Qantas group executive corporate services and technology David Hall.

* BOEING ANNOUNCES NEW F/A-18 PROGRAMS HEAD: Boeing has announced the appointment of Kory Mathews to serve as program vice president of F/A-18 and EA-18 Programs within Boeing’s Global Strike Systems division, replacing Bob Gower who has been named vice president, Boeing Military Aircraft (BMA) India.

* NEW CEO FOR ATR: ATR’s board has appointed Filippo Bagnato as its CEO, succeeding Stéphane Mayer who has come to the end of his three year term.
Bagnato previously served successfully as CEO of ATR between 2004 and 2007. During the last three years he was Finmeccanica executive vice president technical, industrial and commercial development, and was the chairman of ATR’s board.
ATR is a joint venture between EADS and Alenia Aeronautica based in Toulouse.
* Evans Appointed Qantas Cfo:

Gareth Evans, who has been acting chief financial officer for Qantas, has been permanently appointed to the position, the airline announced on June 16.
Evans had been acting in the role following the sudden resignation of Colin Storrie earlier this year. Prior to his appointment as Group CFO, Evans was CFO for Qantas Airlines and also holds directorships with the Qantas Foundation and Jetset Travelworld.
“I look forward to working with Gareth Evans in his new role as CFO at the Group level,” said CEO Alan Joyce. “We share a common vision of Qantas Airways operating the world’s best premium and low fares airlines, in Qantas and Jetstar, and the financial discipline required to ensure it remains one of the strongest airline groups in the world.”