News desk

Boeing’s 747-8 Intercontinental has made its first flight, taking off from Paine Field, Everett, at 9.59am local time on March 20.
RC501 took off with 747 chief project pilot Captain Mark Feuerstein plus Captain Paul Stemer at the controls, and landed four hours and 25 minutes later at Boeing Field in Seattle.
Flying over eastern Washington, RC501 underwent basic handling and performance tests, which saw it reach a cruising altitude of 19,000ft, and a speed of up to 250kt.
“What a great privilege to be at the controls of such a great airplane on its first flight,” said Feuerstein. “And what an honour to share this day with the thousands of men and women who designed and built this airplane.”
The first flight marks the beginning of a 600 hour flight test program (due to finish later this year), and follows the completion of 747-8I initial engine runs (March 10) and final gauntlet testing (March 13).

A350 XWB fuselage panel cured

Premium Aerotec has successfully completed the curing of the Airbus A350 XWB’s largest fuselage panel at its Nordenham, Germany factory.
Measuring 93 square metres, the carbon fibre panel is for the forward right-hand fuselage of the A350, and will undergo ultrasonic inspection, trimming and drilling before being joined with various other panels that make up the forward fuselage (Section 13-14).
Airbus said it opted for large fuselage panels on the A350 XWB design “so they can be tailored in terms of their thickness according to the different loads required at each part of the airframe”. “This approach enables Airbus to optimise the airframe overall which results in enhanced performance, greater robustness and less weight.”

Boeing extends GoldCare to 737NG
Boeing has announced the expansion of its GoldCare integrated maintenance service to include the Next-Generation 737, saying it is in “advanced” discussions with a number of 737 customers interested in Goldcare options.
First offered on the 787, under the Goldcare program Boeing manages through a team of global suppliers “maintenance engineering, planning and execution and material services with a predictable cost based on airplane flight hours”.
“We’ve designed GoldCare to bring value to our Next-Generation 737 customers by boosting airplane reliability, which will reduce cost and improve efficiency throughout the airplane’s lifecycle,” Boeing Commercial Airplanes vice president, Fleet Management, Jay Maloney said.

COMAC signs strategic agreement with Bombardier
COMAC (the Commercial Aircraft Corporation of China) has signed a long-term strategic cooperation (LSC) framework agreement with Bombardier to cooperate on commercial aircraft development, marketing and support.
Signed in Shanghai on March 24, the LSC will see COMAC and Bombardier share technology, knowledge and expertise in aircraft manufacturing, and collaborate in marketing, customer relationship and customer support strategies. Both manufacturers will also evaluate the potential to cooperate on their C919 and CSeries programs, as well as joint procurement and collaboration on future Bombardier and COMAC product lines.
“COMAC is pleased to work closely with Bombardier to efficiently identify areas of mutual collaboration and explore future endeavours. Both our companies have specific strengths that, when combined, will enhance the competitiveness of our respective aircraft programs and businesses as a whole,” COMAC chairman Zhang Qingwei said.
“We believe that this collaboration will generate positive results for both the C919 and CSeries aircraft programs. It also opens the door to further cooperation on any other projects that would be mutually beneficial,” Bombardier president and CEO Pierre Beaudoin said.

Aeroflot crews complete SuperJet Flight Crew Training Course
SuperJet International has announced the completion of the first flightcrew training course for six pilots from Russia’s Aeroflot, who will be the first to fly the SuperJet 100 in service.
The 24 day type rating course saw Aeroflot crews complete classroom computer based training tutorials and instruction on a flight training device, before transitioning onto a flight procedure training device.
Inflight training was conducted using SSJ100 aircraft no.5, where upon completion, the Aeroflot crews were type rated by Russia’s Federal Air Transport Agency.

Boeing received illegal subsidies – WTO
The World Trade Organisation (WTO) has found Boeing received billions of dollars worth of illegal government subsidies to fund its commercial aircraft line, according to a report published on March 31.
The WTO has found that Boeing received US$5.3 billion in illegal government subsidies to develop and build new aircraft, the most prominent of which being the company’s new 787.
The WTO’s final report was in response to complaints made by the European Union on June 27 2005, which alleged that between 1989 and 2006, Boeing received almost $24 billion in illegal subsidies.
However, Boeing has disputed even the US$5.3 billion figure  saying that the WTO found no more than US$2.7 billion of “impermissible subsidies”, including $2.6 billion for NASA R&D funding. The company also took a swipe at Airbus, accusing the European manufacturer of receiving over US$20 billion in illegal government subsidies, while Airbus accused Boeing’s illegal subsidies of causing a loss of $45 billion in potential sales.
The WTO found Airbus had received $15 billion of illegal subsidies in a ruling announced in June last year, which had seen the company benefit from favourable European government loans at below-market interest to develop the A380. Airbus has since appealed the WTO’s ruling. Both Airbus and Boeing have issued press statements claiming victory in the WTO’s ruling, accusing each other of benefiting from billions of dollars in illegal government subsidies.
“This WTO ruling shatters the convenient myth that European governments must illegally subsidise Airbus to counter US government assistance to Boeing,” said J. Michael Luttig, Boeing executive vice president and general counsel.  ”The ruling rejects 80 per cent of the EU’s claims against the US, finding no more than $2.7 billion of impermissible subsidies to Boeing not previously remedied. That amount includes $2.6 billion in NASA R&D funding, which is but a small fraction of the total amount challenged.”
Meanwhile,“Finally the truth emerges: Boeing has received and continues to receive subsidies which have a significantly greater distortive effect than the Reimbursable Loans to Airbus,” said Rainer Ohler, Airbus’s head of public affairs and communications. “Taking the cases together, the WTO has now specifically green-lighted the continued use of government loans in Europe and ordered Boeing to end its illegal cash support from US taxpayers. It’s time for Boeing to stop denying or minimising the massive illegal subsidies it gets.”

Commercial Briefs

EL AL orders four 737-900ERs
Israel’s El Al has ordered four 737-900ERs with options on an undisclosed number of further aircraft. The deal is valued at approximately US$343.2m (A$340.1m) at current list prices.

GECAS finalises order for 10 777-300ERs
GE Capital Aviation Services (GECAS) has finalised an order for 10 Boeing 777-300ER aircraft, in a deal worth approximately US$2.8 billion at list prices.
Citing a need to meet growing airline demand for long haul passenger aircraft, the recent announcement now brings GECAS’s order to a total of 53 777s, with 41 of those being 777-300ERs.

Sales Box

Lufthansa latest A320neo customer, to buy 777F
Lufthansa’s board has approved the acquisition of 25 Airbus A320neo and five A321neo aircraft in a deal worth US$2.8 billion, as well as five Boeing 777 freighters and worth US$1.3 billion. As a result, Lufthansa will become Airbus’s largest airline customer, having already purchased to date 443 Airbus aircraft, with 338 variants currently in service. Engine selection for both the A320neo and A321neo is set to be announced at a later date.
“Since its launch in December last year, the ‘neo’ has taken the market by storm and has already attracted more than 330 commitments – with more to come. This represents the fastest rate of sales for any commercial aircraft ever,” Airbus COO, Customers, John Leahy said.

Korean orders additional 747-8Fs
Korean Air has announced an order for two additional Boeing 747-8 Freighters in a deal valued at US$639m (A$641m) at list prices.
In December 2009 Korean became the first airline to order both the passenger and freighter versions of the 747-8, with this latest order taking its commitment to the type to five 747-8Fs and seven 747-8Is.
Korean Air currently operates 27 Boeing freighters and is one of only two airlines to date to order both the 747-8 Freighter and the 777 Freighter.

Military

Excess oil blamed for F-35 generator failure – JPO
A dual generator failure that caused the F-35 Joint Strike Fighter test fleet to be grounded on March 11 has been attributed to a faulty maintenance procedure which left excess oil in the aircraft’s lubrication system, according to the Joint Program Office (JPO).
According to various reports, maintenance documents have been now been changed to improve procedures, with newer F-35 test aircraft fitted with a newer engine/starter generator (AF-4, 6 and 7, BF-5 and CF-1) cleared to return flying.
“Previous maintenance procedures could allow a small amount of extra oil to remain within the generator following servicing. Under some conditions, the extra oil that is churning inside a narrow air gap within the AES/G [alternate engine starter/generator] could cause internal temperatures to increase. It was assessed that high temperatures led to the generator failures,” a statement from the JPO noted.
Older test aircraft AF-1, 2 and 3, and BF-1, 2, 3 and 4 were fitted with an earlier type engine starter/generator and have not been affected, having previously been cleared for flight on March 14. The JPO has maintained that there will be “no significant impact to the System Development and Demonstration (SDD) program or production operations”.
“Flight test schedules are built with a margin for precautionary safety stand-downs. The F-35 test programs at Edwards AFB, Calif. and Naval Air Station Patuxent River, MD remain ahead of their monthly flight test schedules.”
Test aircraft F-35A AF-4 suffered a dual generator failure and oil leak as it was completing a flight test at Edwards Air Force Base on March 9, which led to the grounding.

Global Hawk used for Japan tsunami disaster surveillance
The USAF has utilised a Northrop Grumman RQ-4 Global Hawk over earthquake and tsunami stricken Japan, collecting data and imagery to assist with Japanese disaster relief efforts.
Bloomberg reports that the Guam based UAV has been flying aerial surveillance missions over earthquake and tsunami affected parts of Japan, with the Global Hawk’s recorded imagery set to help Japanese authorities in assessing the extent of damage on the ground.

Saudi A330 MRTT makes inaugural flight
Airbus Military has announced that its first Royal Saudi Air Force (RSAF) A330 MRTT conversion has successfully completed its first flight, landing back at the company’s Getafe, Spain test site after a four hour, 15 minute long journey on March 15.
The aircraft will now enter the final certification and qualification phase for this version of the A330 MRTT, leading to contractual delivery later this year. A second RSAF aircraft is already in conversion at Getafe, while a third will begin the process mid-year.
Five A330 MRTTs have already flown prior to the March 15 flight, including three for the RAAF and two for the RAF. Airbus claim that two of the RAAF’s A330 MRTTs are “already technically complete and ready for delivery”, pending finalisation of contractual talks which have been delayed numerous times by the troubled program.

Final RAAF C-17 returns home after Op PACIFIC ASSIST
A RAAF C-17A Globemaster which supported relief efforts in earthquake and tsunami stricken Japan has returned to Australia, after two weeks in-country under Operation Pacific Assist.
“Now that the initial crisis response is over and the focus of the mission has changed from search and rescue to reconstruction, there are sufficient resources available in Japan to manage further airlift tasks,” Minister for Defence Stephen Smith said on March 25.
Australia initially sent one C-17 to Japan immediately after the March 11 earthquake and tsunami, providing strategic airlift of civilian urban search and rescue personnel, tracker dogs and equipment. That aircraft then stayed on in Japan to fly a total of 23 sorties over the past two weeks,  moving more than 450 tonnes of vehicles, people and supplies to disaster zones throughout Japan.
Two additional RAAF C-17s also transported a remotely operated water cannon system, to be used in containment operations at Japan’s Fukushima Number One Nuclear Power Plant.

Marines to acquire 80 F-35Cs

The US Department of the Navy has signed a Tactical Air memorandum of understanding (MoU) which will see the US Marine Corps acquire 80 F-35C JSFs for carrier operations, in addition to 340 F-35B STOVL variants.
The MoU, signed by Chief of Naval Operations Gary Roughead and Commander of the Marine Corps General James Amos last week, includes provisions for the US Navy to purchase 260 F-35Cs, with the Marine Corps substituting 80 STOVL F-35Bs for carrier variant F-35Cs. Consequently, the MoU intends to see the number of Marine carrier-capable squadrons raised from its current number of three to five.
Nonetheless, despite the reduction in F-35B numbers, “it is important to note that the continued development of the F-35B remains the centerpiece” of USMC tactical airpower, the agreement stresses.
The Navy plans to stand up its first F-35C squadron by December 2015, with a planned fleet of 10 carrier air wings, totaling 44 strike fighters per wing.  The Marines will follow with its first F-35C squadron in December 2016.
The recent announcement follows US Defense Secretary Robert Gates’ decision to put the F-35B on a two-year probation after it incurred significant developmental problems relating to its fuselage bulkhead and propulsion systems.

Growler sees combat for first time over Libya
The US Navy’s new Boeing EA-18G Growler electronic warfare aicraft made its combat debut over Libya, participating in coalition strike operations as part of Operation Odyssey Dawn.
According to various reports, Navy Growlers flew from coalition bases near Libya in support of US Marine Corps AV-8B Harriers operating from USS Kearsarge conducting airstrikes against Muammar Gaddafi’s ground forces and air defences on March 20.

RAF retires Tornado F3s
The Royal Air Force has phased out the last of its Panavia Tornado F3 air defence variants (ADVs), after 25 years of service.
Operations officially came to an end with the March 22 disbandment of 111 Squadron, which had flown the F3 from RAF Leuchars, Scotland, since 1990. Since July 2009 111 Sqn had been the sole RAF unit to operate the F3.
Eurofighter Typhoons from 6 Sqn based at RAF Leuchars have now taken over 111 Sqn’s role in providing air defence and quick reaction alert over the United Kingdom’s northern reaches. The UK’s retirement of the F3 ADV leaves only Saudia Arabia as the only remaining operator of the type.

RAAF Hercules travels to Norway for Exercise Combined Strength
Fifteen RAAF members from Richmond based 37SQN participated in Exercise Combined Strength 2011, held at Norway’s Bodø Air Force Base from March 19 to 25. Open to countries who operate the C-130J, Denmark as well as host nation Norway are taking part in this year’s exercise. The exercise gave participants a forum to share best practice for operating the C-130J, including aircrew and maintainer training.
Commander Air Lift Group, AIRCDRE Gary Martin said the Australian contingent delivered presentations on C-130J training structures and participated in a wide range of flying exercises, including “search and rescue practice, day and night-time operations, airdrop missions and cold weather survival”.
Just north of the Arctic Circle, Bodø is Norway’s largest air force base and is home to two Royal Norwegian Air Force F-16 squadrons.

Congress issues stop-work order on F136 as GE, RR self fund

General Electric and Rolls-Royce have chosen to self-fund development of their F136 engine for the F-35 Joint Strike Fighter, after the US Department of Defense issued a 90 day stop-work order on March 24.
“The stop-work order will remain in place pending final resolution of the program’s future, for a period not to exceed 90 days, unless extended by agreement of the government and the contractor,” said a Pentagon statement.
Consequently, GE and RR have elected to self fund continued development of the engine during that time in the hope that the US Congress elects to continue to fund the engine’s development.
A final decision on the engine, being developed as an alternative to the Pratt & Whitney F135, will be made by Congress. The House of Representatives voted in February to cancel the engine, but that decision has not passed the Senate.
“In these times of fiscal constraint, the Department of Defense cannot waste funding of any kind, much less the $1 million per day that is being spent on the second engine that Secretary Gates and our most senior Air Force, Navy, and Marine Corps leaders say they don’t want and can’t afford,” Republican Senator John McCain was reported as saying.
For several years, the Pentagon and US Secretary of Defense Robert Gates have tried to cancel the F136 program, only for the engine’s funding to be reinstated by Congress.

RAAF marks 90th birthday with commemorative service

The RAAF has marked its 90th birthday on March 31 with a commemorative service in Canberra which saw the addition of Battle Honours to the RAAF Memorial.
Chief of Air Force Air Marshal Mark Binskin said it was important to remember those who had given their lives in RAAF service and recognise their achievements. “Air Force has built some strong traditions over the past 90 years, and I am confident that the people of Air Force will continue to innovate, and embrace emerging technology and capability, to retain our reputation as the ‘best small Air Force in the world,” AIRMSHL Binskin said.
Battle Honours unveiled at the RAAF Memorial on Canberra’s ANZAC Parade were for campaigns in the Philippines (1944), Malaya (1948-60), Thai-Malay (1960-66), Malaysia (Confrontation 1962-66), Ubon in Thailand (1962-66), East Timor (1999-2000) and Iraq 2003.

Delay JSF purchase – Williams Foundation
Australian airpower thinktank the Williams Foundation has called for Australia’s acquisition of the F-35 JSF to be delayed to allow the aircraft to mature, in light of recent news that IOC (initial operating capability) for the US Air Force may now be as late as 2018.
“In the Williams Foundation’s judgment, it would be sensible to wait and see what happens with the F-35, while simultaneously investigating the cost of capability issues involved in maintaining the classic Hornet beyond 2020,” the organisation says in a statement. “An interim force structure based on Vigilair, JORN, Wedgetail, MRTT, AP-3C, C-17, 24 Super Hornets, and up to 71 classic Hornets would still be world-class for the next decade.”
The foundation cites Australia’s experience with the F-111, delivery of which was delayed five years due to technical problems, as showing why the JSF acquisition should be delayed.
“This experience suggests that there could be very good reasons for Australia to delay delivery of the F-35 until the production line is mature,” the Foundation notes in its media statement, which is titled “Holding our Nerve, Hedging our Bets”.
“The issue is: what action is required to ensure that any further delays in an F-35 IOC do not result in a capability gap? The question is too important to be left unanswered.”
Still, the Williams Foundation continues to strongly endorse the F-35 as Australia’s future air combat capability.
“A fleet of F-35s would give Australia an unsurpassed ability to shape and control events in our region.”
The Williams Foundation is chaired by former Chief of Air Force, Air Marshal Errol McCormack, while its members include several high profile retired senior Air Force officers.

First ASW C295 delivered to Chile: Airbus
The Chilean navy has taken delivery of its first Airbus C295 anti-submarine warfare (ASW) variant, as it looks to replace its fleet of ageing P-3 Orions.
The C295 ASW features two underwing hard points, a search radar, digital avionics, an automatic identification system, acoustic system and a magnetic anomaly detector. Data collected from those sensors is then processed by a Fully Integrated Tactical System (FITS).
The ASW variant of the Airbus’s C295 family joins the Chilean navy’s existing C295 Maritime Patrol Aircraft (MPA), with a second C295 ASW to be delivered in the coming months. Airbus Military has to date sold 356 CN235 and C295 aircraft to 55 different operators worldwide.

Site acceptance for EROC
Boeing has announced the completion of site acceptance for the EROC (Eastern Regional Operations Centre) component of the Vigilare command and control system for the RAAF.
“EROC is the last piece of the puzzle for Vigilare. Once it joins the Northern Regional Operations Centre (NROC) in operations, the RAAF will have a truly complete and comprehensive operational picture of the skies above Australia and surrounding areas,” said Lee Davis, Boeing Defence Australia’s Vigilare project manager.
Site acceptance testing, conducted over March 7-18, saw Boeing demonstrate that “EROC is successfully interfacing with all external systems and that Vigilare has the full range of system functionality to provide enhanced battlespace management and surveillance operations for the RAAF”, the company said in a statement.
Operational testing of EROC took place between March 28 and April 8, while the centre itself has been operational since September 2 2010.

Military Briefs

A400M clears low-speed takeoff trials
Airbus Military’s A400M transport has completed a series of tests to verify its minimum unstick speed, or Vmu.
Designed to test the lowest speed at which an aircraft can takeoff, the A400M has its nose raised as a special bumper bar fitted to the fuselage deliberately struck the ground at a maximum pitch-up angle of 13º.
The trials were conducted at Le Tubé Air Base in Istres, France.

Airlines

VB increases fares and international fuel surcharges
Virgin Blue Group has announced increases to both its fares and international fuel surcharges, due to rising fuel prices, with effect from March 21.
“Oil prices are reaching increasingly high levels, with the average price of Singapore Jet Fuel rising by around 50 per cent since September 2010, from US$88 a barrel to US$131”, Virgin Blue CEO and MD John Borghetti said.
“The increases announced today go some way to addressing the latest rises in global fuel prices; however they will not recover the full cost. In making these changes, we have been very conscious of balancing our commitment to providing competitive fares with the operational costs of our business.”
For tickets sold from March, V Australia’s fuel surcharges for flights to Los Angeles and other USA destinations will rise to $165 each way (up from $115); with Abu Dhabi/Europe/UK flights rising to $240 each way (up from $220).
International short haul fares on Pacific Blue and Polynesian Blue flights will increase by up to $20 per sector, while domestic fares are set to increase by between $6 and $10 per sector.
Borghetti said that the airline would “continue to closely monitor fuel prices and consider increases or decreases to our fuel surcharges and fares in line with changes in market conditions”.
The increases follow the airline’s decision to increase baggage charges on February 17.

Qantas reaches settlement with NZ Commerce Commission on freight cartel
Qantas has announced a settlement with the New Zealand Commerce Commission (NZCC) in relation to price fixing activities within its freight division between 2000 and 2006.
While the airline has not specified the exact terms of the settlement, both parties agreed to recommend to the New Zealand High Court that the airline pays a fine of NZ$6.5 million, representing a 50 per cent discount for Qantas’s cooperation with the NZCC in its investigation of the cartel.
“Qantas has previously resolved its liability to regulators in the US, Australia, Canada, Korea and Europe for its freight division’s conduct. In each case the fine imposed on Qantas reflected a considerable cooperation discount,” the airline said in a statement.
A High Court penalty hearing on April 11 saw Qantas plead guilty to participating in the cartel with other international airlines, including Air New Zealand. Qantas has maintained that it will “continue to cooperate fully with the Commission in its prosecution of other airlines”.

Strategic gets new corporate HQ and engineering maintenance facility
Strategic Airlines has announced plans to lease two major new premises in Brisbane, comprising an engineering hangar maintenance facility at Brisbane Airport and a new corporate headquarters.
“Pending the granting by the Civil Aviation Safety Authority of Strategic’s engineering license, we intend to use the original Boeing hangar facility to undertake engineering maintenance on the A320 fleet,” Strategic managing director Michael James said.
James said Strategic’s current fleet was undergoing maintenance in Melbourne “due to engineering and hangar constraints,” but that the airline looked forward to “carrying out our own maintenance right here in Brisbane with our own resources and creating engineering jobs and apprenticeships within South East Queensland”.
Meanwhile, Strategic’s new corporate headquarters will now be based at the Brisbane suburb of Hendra, moving from its current premises at Brisbane Airport into a facility triple the size.
The airline also said it expects to add a further A330 aircraft to its fleet later this year with new international and domestic destinations planned. A doubling of staff numbers is also on the cards within the next 12 months.

Jetstar continues flights to Japan, adjusts Gold Coast-Tokyo route
Jetstar has continued to maintain its existing flight schedule between Australia and Japan, while making a change to its daily Gold Coast to Tokyo route in the aftermath of the country’s devastating earthquake and tsunami which struck less than two weeks ago.
The airline has continued to operate its 25 weekly regular return services to Tokyo and Osaka through direct flights from Cairns and the Gold Coast. Started on March 22, Jetstar also reverted to a daily direct service to Tokyo, while operating up to three daily return services to Osaka. Meanwhile, Jetstar is also temporarily redirecting its daily Gold Coast-Tokyo A330 service (JQ11 and JQ12) to instead operate Gold Coast-Osaka. This is expected to cause minor changes to flight timings to accommodate for connections with fast train services for Jetstar customers arriving into or departing from Kansai International Airport in Osaka, allowing onward travel to destinations including Tokyo.
Jetstar says affected customers are being contacted to make arrangements for any change of travel plans in Japan, with the airline’s alternative arrangements for travel to and from Japan remaining in place due to the current crisis situation and status of travel advisories. “Jetstar is maintaining our capacity on the Australia-Japan route whilst improving the effectiveness of our Japan flying operations at this important time,” CEO Bruce Buchanan reaffirmed.
In further news, Jetstar announced the launch of its daily Perth to Gold Coast direct service on April 4.

Virgin Blue to slip into the red on oil, disasters

Virgin Blue has revealed it is on track to make a loss of between $30 and $80 million for the current financial year, with the airline blaming a challenging second half due to rising global fuel prices and natural disasters.
The airline says record fuel prices will add an extra $50 million to the airline’s fuel costs for the second half of FY11. Virgin also expects the devastating Queensland floods and Cyclone Yasi to have a projected combined impact of approximately $50 million, while February’s Christchurch earthquake is set to have cost $15 million.
To help deal with the expected losses, Virgin Blue says it has “initiated an action plan which identifies cost savings and revenue initiatives, including fuel surcharges and capacity reductions”. However, the company warns this will “only partially offset the impact of these events on FY11 profit”. As a result, full year profit before tax (excluding hedging ineffectiveness) is now estimated to be between $30 and $80 million, assuming no further substantial increase in the cost of fuel or “material deterioration” in the trading environment.
“We have witnessed an unprecedented number of significant events in an extraordinarily short period of time, including natural disasters and a sharp spike in fuel prices. These events have severely impacted consumer confidence, resulting in a slower than usual recovery in tourism,” Virgin Blue Group of Airlines CEO and managing director, John Borghetti, said.
“These market conditions have further validated our Game Change Strategy which will see us less dependent on the leisure sector and reduce the volatility in our business. We are more confident than ever that our strategy is the right one.”
For the first half of the financial year, Virgin Blue had posted a net profit after tax of $24 million.

Qantas increases airfares again: blames rising fuel and oil prices
Qantas has announced that it will again increase domestic, regional and Tasman air fares in “response to high oil and jet fuel prices”.
The airline will increase fares by up to $10 per sector on domestic and regional flights for tickets issued on or after March 31. Increases of up to eight per cent will also apply to trans-Tasman fares.
“The increasing price of fuel is a major concern for the Qantas Group and the global aviation industry,” Qantas CEO Alan Joyce said.
“Airlines have a range of options available to them to manage this significant cost, and Qantas is among the best in terms of using mechanisms such as hedging and fuel conservation.
“However, the situation today is very different to the last fuel crisis, when the global economy was strong. This time, the world is still emerging from the global economic crisis, and demand is still recovering.”
Joyce stressed that jet fuel prices had risen a further 15 per cent to more than US$134 per barrel since Qantas announced international fuel surcharge and domestic ticket price increases in February.
“Even with favourable hedging in place, it is still at a much higher price than we can absorb. In spite of this hedging offset, fuel surcharges and fare increases, we will not be recovering the full impact of current and forecast fuel prices,” he noted.
“Our ongoing response to this situation remains under review and we also cannot rule out further increases in surcharges and fares in the future.”
The airfare increase coincides with Qantas’s plans to cut domestic and international capacity growth, issue suspensions to some Japan and NZ services, impose the early retirement of two 767s, and move forward with plans to reduce management staff numbers in response to high jet fuel prices, attributed to the recent spate of natural disasters in Japan, New Zealand and Queensland.
Qantas’s decision also follows Virgin Blue’s March 23 announcement that it was likely to make a $30-80 million loss for the current financial year, in part due to rising fuel prices.

Cockpit fire forces Qantas diversion
A Qantas Airbus A330 flying from Manila to Sydney was forced to make an emergency landing in Cairns, after suffering a cockpit fire on March 23.
A330-200 VH-EBL was approximately 365nm northwest of Cairns when a windscreen window heating circuit began arcing. The crew donned oxygen masks and extinguished the resultant flames from the left hand windshield heater system with a fire extinguisher, and elected to divert to Cairns, where the aircraft landed safely.
None of the 147 passengers or 11 crew onboard were injured.
”There was a burning smell in the cabin that was very strong, and then the captain came over the loudspeaker and explained an electrical problem meant there was a serious risk of fire,” a passenger on the flight told Fairfax Media. “Later he explained flames had come back for a second time and they’d had to use a fire extinguisher in the cockpit.”
The incident, now being investigated by the ATSB, appears similar to a June 2009 incident in which a Jetstar A330-200, VH-EBF, diverted to Guam on a flight from Osaka to the Gold Coast after the crew noticed a burning smell was followed by smoke and fire from the bottom right corner of the right windshield. The investigation into the Guam incident is still continuing.
A330 cockpit windows feature a thin layer of electrically conducive material, which receives power from one of two window heat computers, to prevent windscreen fogging and icing.

Strategic contracts Mercator for reservations IT system
Strategic Airlines has contracted Emirates Group IT services business Mercator to provide its new reservations and sales distribution IT platform, to be deployed later this year.
The airline will use Mercator Asia’s Avantik system, which covers reservations, GDS connectivity, internet bookings, online check-in, departure control and frequent flyer capabilities.
“As a brand new RPT airline with a phase one business model, we are seeking new generation airline management solutions with the flexibility to grow as we do, supplied by companies which understand our business” Strategic Airlines chief information officer Bob Kane said.
“The Avantik system is built on modern, scalable technology and will deliver immediate benefits to Strategic in the areas of direct distribution and an enhanced capability to serve the needs of our passengers, travel agency partners, corporate accounts and caters for our future grow plans.”

Skywest teams up with Discover West in WA tourism bid
Skywest Airlines and Discover West Holidays have entered into a new tourism partnership, with the announcement of the rebadged Skywest Holidays.
The partnership aims to boost tourism to destinations across the Skywest’s growing WA network through Discover West’s marketing resources and expertise.
Skywest Holidays will market itself as a short-break/holiday provider, with both Skywest and Discover West looking to maximise the promotion of special package deals around Western Australia.
“Discover West compliments Skywest’s strategic direction with a great system and expertise in promoting WA holidays,” Skywest general manager Sales & Marketing, Alan Stuart said.
Discover West’s group managing director, Nathan Harding said he saw the partnership as a “serious additional commitment to WA tourism by both companies”.

Buchanan denies ‘toxic’ culture in Jetstar
Jetstar CEO Bruce Buchanan has denied claims of a toxic culture within Jetstar, amid allegations aired that the airline has a poor fatigue management system during the ongoing Senate inquiry into pilot training standards.
While admitting that there may be isolated incidents of employee disgruntlement, Buchannan largely denied claims of a toxic workplace culture, despite the explosive email tabled in a hearing for Senate enquiry yesterday in which a pilot called on his colleagues to “Toughen up princesses!” amid complaints of pilot fatigue at Jetstar’s Perth base.
“You can’t have a successful growing business that’s achieving everything we are unless customers are coming to us and buying our tickets. You can’t have customers buying our tickets unless they’re comfortable with the product if the atmosphere amongst the service delivery staff is toxic,” Buchanan said, while speaking at a doorstop interview in Sydney on March 31.
Despite the email, which also accused pilots of being “tired” and lazy but not fatigued, Buchanan dismissed the comments as harmless “banter” between Jetstar employees.
“People use colourful language to get across their message. As I said, it doesn’t represent the views of management, but if you look at the facts of the email that he [the unnamed line pilot] was sending to other pilots in Perth – Perth is a relatively small base for us…so it’s a fairly small cohesive team. And I can imagine they all know each other quite well and they can communicate very openly towards each other,” Buchanan continued.
“If pilots have a concern about fatigue, there are formal processes in place, both through Jetstar internally, but also there’s a number of…external regulatory bodies that are specifically set up to investigate these sorts of claims.”
Buchanan reaffirmed Jetstar’s strong internal reporting culture, highlighting the airline’s complaint management system as evidence of this.
“We also have a whistleblower policy that we use with an independent auditor that steps in if anyone feels that…myself or Alan or any of the other senior management aren’t responding to the allegations correctly. And then, in addition, we have two strong independent external regulators which can also take responses directly from staff if they’re concerned about something going on inside the organisation.
“If we were to find any instance of that, where we find any instance of bullying inside the organisation, we’d move very quickly and we wouldn’t take it – we just wouldn’t tolerate that sort of behaviour inside Jetstar.”
Buchanan’s comments came after independent Senator Nick Xenophon tabled the email, sent in January this year, in the inquiry earlier in the day.
“I am concerned that Jetstar and Qantas didn’t know about this email, which I think some people would find quite intimidating in a workplace environment,” Senator Xenophon said.
“I’ve had a number of pilots that I’ve spoken to and their concern is one that they don’t feel that they can speak openly without fear of having adverse repercussions to their careers.”
The Senate committee, which is looking into both pilot safety and training procedures, is due to submit its findings in May.

May 26 for Virgin Blue A330 Sydney-Perth services

Virgin Blue has announced that it its business class equipped Airbus A330-200s will begin operating a daily Sydney-Perth service from May 26, with a three-times daily schedule from July.
“The service commences from Sydney to Perth on 26 May 2011 with an 8.00am departure from Sydney, followed by a 1.00pm departure from Perth later that day. From July we will operate a three times daily service, providing a total of more than 33,000 seats each week between the east coast and Perth,” Virgin Blue CEO John Borghetti said.
To launch the new services Virgin Blue is offering $1399 one-way business class fares and $139 one-way economy class fares. The airline says it will also upgrade Velocity members who book two return business class flights on the A330 services to Gold Velocity membership for a 12 month period.
Virgin Blue announced in February details of its Hans Hulsbosch designed two class A330 cabins, which will feature 62in pitch leather business class seats, while the first of the two A330s Virgin Blue is placing into transcontinental service this year, VH-XFA, arrived in Melbourne on March 5.
On April 1, VH-XFA was spotted wearing what were evidently the first elements of Virgin Blue’s much anticipated new livery and branding, but by the weekend those elements (a new ‘flying lady’ and red bands around the engine cowlings) had been removed again.

Airline Briefs

QantasLink Hotham ski services return
QantasLink will again operate ski season services between Sydney and Mt Hotham, with flights to operate from June to September.
The services, due to run between June 24 and September 11, will operate on selected Thursdays, Fridays, Saturdays, Sundays and Mondays. Between four and five return services per week are initially planned, building to seven per week during the August peak period. QantasLink will provide a total of 114 flights on the Sydney-Mt Hotham route during that period, with an additional 300 seats on offer.

Environment

Airbus launches bio-fuel ‘value chain’ with Spanish government, Iberia
Airbus has signed an agreement with the Spanish government and flagship carrier Iberia Airlines to develop a biofuel ‘value chain’, intended for commercial use.
Bringing together farmers, oil refiners and airlines, the value chain agreement aims to promote and back initiatives to develop a complete biofuel production chain for Spanish aviation, using sustainable resources from production to consumption in commercial aviation.
Officials present to sign the agreement on March 31 included Airbus president and CEO Tom Enders, Iberia Airlines chairman Antonia Vazquez and Spanish Transport Secretary Isaías Táboas.
“Biofuels are a must for aviation to achieve our industry’s ambitious CO2 reduction targets. In fact, we believe that biofuels should primarily be reserved for aviation as our industry has no other viable alternative energy source,” Enders said.
“All industry players including governments have a role in helping to reduce global CO2 emission levels. Airbus is supporting value chains to accelerate the commercialisation of aviation biofuels.”

Qantas, Jetstar achieve carbon neutral certification
Qantas and Jetstar have become the first major airlines to achieve carbon neutral certification for their carbon offset programs under the federal government’s National Carbon Offset Standard (NCOS).
A voluntary certification scheme, the NCOS Carbon Neutral initiative allows Australian businesses to measure, reduce and offset greenhouse gas emissions associated with business operations or products.  Established by the federal government’s Department of Climate Change and Energy Efficiency, NCOS is administered via the Australian Carbon Trust, which acts as an independent accreditation body.
“Qantas and Jetstar customers have the option to fly carbon neutral by offsetting their own share of flight emissions. With increased understanding of climate change, the carbon offset programs provide the flying public and business travellers with a very real and convenient way to take action on climate change at an individual level,” said CEO of the Australian Carbon Trust, Meg McDonald.
Qantas Group chief risk officer, Rob Kella, said the company’s carbon offset scheme was part of a “comprehensive environment strategy”, with both Qantas and Jetstar launching “offset programs in 2007 to give our customers the choice of flying carbon neutral”. “Since then all contributions received have gone towards purchasing carbon offsets generated by accredited abatement projects. The program has offset over 850,000 tonnes of carbon dioxide emissions to date. This is the equivalent of taking around 200,000 cars off the road for a year.”
NCOS commenced on July 1 2010 as a successor scheme to the government’s Greenhouse Friendly initiative.

Airports

MEL intl pax up, domestic down in Feb
Melbourne Airport has reported a 12 per cent increase in international passenger numbers, while reporting a slight decrease in domestic passengers for the month of February.
February saw an increase of 51,816 international passengers to 502,154 compared to February 2010, while there was a decrease of 2700 domestic passengers to 1,618,653.
“Passenger growth for February was again driven by China, with Chinese passport holders surging by another 21 per cent.  This follows a 33 per cent increase in January and a 22 per cent increase for 2010,” Melbourne Airport CEO Chris Woodruff noted.
“China is now Melbourne’s number one long haul market and I thank our airline customers for their continued support in growing this market.”
Woodruff blamed the impact of Queensland and Victoria’s devastating New Year floods for the decrease in domestic travel figures. “With the focus fittingly on rebuilding homes and livelihoods, domestic travel was not a high priority for people in February. However, we don’t see the dip in domestic travel as a permanent one and feel that it will steadily improve over the coming months,” he said.

Auckland, Queenstown Airports cancel shareholding agreement
Auckland Airport and Queenstown Airport have announced the cancellation of an agreement which would have seen Auckland Airport increase its Queenstown Airport shareholding.
“We recognise that the prospect of an increase in Auckland Airport’s existing shareholding has been the subject of considerable debate within the community and has been a key factor in the [Queenstown Lakes District] Council’s plans for a potentially expensive process of community consultation,” Queenstown Airport said a statement.
“By taking the prospect of an increased shareholding through the exercise of this option off the table, we are removing an unnecessary distraction from the situation. It will also allow us to focus even more of our attention on building passenger volumes into Queenstown Airport, further strengthening the airport’s contribution to the district economy. We believe that this is all the more important as a result of the impact of the Christchurch earthquake on the community and industry.”
Auckland Airport invested NZ$28 million into Queenstown Airport last July, taking a 24.99 per cent shareholding. That deal included an option for Queenstown Airport to issue further shares to Auckland Airport, which would have increased its shareholding to 30-35 per cent, at any time up to June 30 2011.
Auckland Airport CEO Simon Moutter said his airport was comfortable with its existing 24.99 per cent airport shareholding.

BAC raises $600 million to help pay off $1.7B debt
Brisbane Airport Corporation  (BAC) has announced that it has raised $600 million which it will use to pay back maturing bank facilities and fund capital expenditure and working capital over the next 18 months.
BAC raised a total of A$400 million in the US Private Placement market, with the remaining $200 million found on the Australian market, with eight-year BBB/Baa2 bonds.
The airport corporation currently has borrowings totalling $1.7 billion, and is hopeful to eventually raise further funds in both markets in coming years to repay maturing credit wrapped bonds and fund future infrastructure investment.

Bankstown granted masterplan extension until 2013

Sydney Metro Airport Bankstown has announced that it has gained approval from Federal Minister for Transport Anthony Albanese to lodge a new revised draft masterplan by February 15 2013, as the airport looks to assess the impact of future developments in the Sydney Basin.
The announcement follows on from Albanese’s initial rejection of Bankstown Airport’s 2010 draft masterplan. This led the airport to request lodging a revised draft masterplan in two years, according to Sydney Metro Airport Bankstown CEO Colin Grove. “There were several reasons why we sought a longer extension period, one of the most important being the impact the future release of the Sydney Basin Aviation Capacity Study may have on the final contents of the revised Bankstown Airport draft masterplan, particularly in respect of any future passenger services. Therefore, we believe it is imperative that the results of the study need to be considered in the revised document to be submitted to the Minister for approval,” Grove said.
“Also the airport needs significant time to prepare revised Australian Noise Exposure Forecasts (ANEF) which will require third party regulatory endorsement and there may also be a need to include an airspace management study.
“As the process is quite extensive planning has already commenced for the preparation of the preliminary version of the draft masterplan.”
Grove said that while the 2013 plan was in development, the current 2005 Master Plan remains in force as an interim measure.
“This document supplies guidelines for matters relating to land use, aviation capacity, environment, noise forecasts, passenger services, surface transport, runway extensions and many other regulatory issues.
“We will notify the community and interested stakeholders in the coming months of the consultation schedule,” concluded Grove.
The new development follows the airport’s recent success with its one-off ‘Fly Free Weekends’ initiative between November 2010 and January 2011, which saw a 4.3 per cent increase in movements over previous quarter weekend data.

Gold Coast, Auckland take out Skytrax awards

Gold Coast and Auckland Airport have shined in the international spotlight, after taking out three prestigious industry titles at the Skytrax World Airport awards on March 31.
Gold Coast Airport was named Best Regional Airport Australia/Pacific, while also receiving the Staff Service Excellence Australia/Pacific award. Meanwhile, Auckland won best Australia Pacific Airport for a third year in a row. Based on 11.38 million survey questionnaires completed by over 100 different nationalities of airline passengers between July 2010 and March 2011, the World Airport Awards cover more than 240 airports worldwide.

General Aviation

Gulfstream announces In-Flight Support Center
Gulfstream has opened a 55sq m In-Flight Support Center (IFSC) at its Savannah, Georgia, Service Centre.
Designed to help the company’s Technical Operations department troubleshoot inflight situations faster, the 24 hour call centre is staffed with more than 40 technical/system specialists able to support Gulfstream operators. The centre features three interactive graphical flightdeck simulators, complemented by a projector, a 3m projection screen and two 117cm high-definition monitors equipped with fleet-tracking software.
The IFSC houses three FlightSafety International manufactured cubical sized simulators equipped with between 10 and 12 LCD touch screen monitors. Those monitors will carry readings from the aircraft’s cockpit, instrument panel and pedestal, offering a similar tactile experience to that found in a much larger, full motion simulator. Using the simulators, technical specialists will be able to induce the faults into the simulator to mirror what is happening to a troubled aircraft in flight.
The new IFSC replaces the older system of pilots reading what they see on the central maintenance computer (CMC) screen and a Technical Operations member prompting them to make specific selections in order to troubleshoot problems on board the aircraft. Gulfstream technical operations manager, David Snively, said the introduction of the IFSC would be able to “replicate or closely recreate what the pilot sees and experiences for virtually every aircraft system”.

Student pilots get their chance with Learn to Fly Scholarship
Four student pilots are a step closer to realising their dream of flying, after receiving an Airservices Australia Learn to Fly Scholarship in March.
Part of a four-year sponsorship agreement with the Royal Federation of Aero Clubs of Australia (RFACA) worth almost $100,000, the four would-be pilots were awarded the scholarships at the RFACA’s annual flying training conference.
Scholarship candidates are required to take an introductory flight with an RFACA member, where their suitability to receive formal training is assessed. The winners are subsequently selected from the top 10 per cent of scholarship applicants, each receiving $7700 to subsidise the cost of obtaining a private or commercial pilot’s license.

OAA opens new facilities at Moorabbin Airport
Oxford Aviation Academy (OAA) has marked the significant expansion of its airline pilot training facilities at Moorabbin Airport with the official opening of a new training centre on March 25.
The new facilities include a new 1200 sqm headquarters and training centre with teaching capacity for an additional 200 students, featuring six new classrooms, student briefing rooms, self-study areas, library and support facilities (effectively doubling OAA’s ground training capacity), and an enhanced simulator training centre, equipped with a new jet simulator (approved for MPL and MCC training) and a new Cessna 172 instrument flight training simulator, meaning OAA will now be able to offer Multi-Crew Cooperation (MCC), Jet Operations (JOC), and Multi-Crew Pilot’s Licence (MPL) courses.
A new Pilot Assessment and Selection Centre (PASC) has also been established to assess the skills and capabilities of both aspiring and experienced airline pilots.
The new facilities were officially opened by Victorian Minister responsible for the Aviation Industry, Gordon Rich-Philips, and Jetstar Chief Pilot, Captain Mark Rindfleish. (OAA is one of two training partners for Jetstar’s cadet pilot program.)
“Our latest investments in new training centre facilities here at Moorabbin now enable OAA to expand significantly into new growth markets, earn new customers and create further export opportunities and employment within the State of Victoria,” OAA managing director for ab initio training, Anthony Petteford, said.
OAA holds received regulatory approvals from CASA, Vietnam’s CAAV and Europe’s EASA, and expects approvals by Singapore’s CAAS and Hong Kong’s CAD by mid 2011. OAA’s Moorabbin customers include Qantas, QantasLink, Jetstar, Iraqi Airways, Gulf Aviation Academy and Vietnam Airlines.

Avalon reduces ILS approach training fees
Avalon Airport has announced a significant reduction to its ILS (Instrument Landing System) approach fees.
Providing the aircraft does not land, Avalon has reduced its minimum instrument practice approach fees from $100 (plus GST) to $40 (plus GST) from April 1. Avalon Airport CEO Justin Giddings said the fee reduction would apply to aircraft under a maximum takeoff weight of 4.7 tonnes, which covered “around 90 per cent of aircraft that perform instrument approach training at Avalon Airport”.
State minister for the Aviation Industry, Gordon Rich-Phillips, welcomed the decision, highlighting the financial boost it will give to trainee pilots conducting practice instrument approaches. “Avalon operates one of only two or three Instrument Landing Systems in Victoria which are available for pilot training. This substantial reduction in fees for using the ILS is a major boost for the advanced pilot training sector,” Rich-Phillips said.
“The high cost of accessing ILS equipment for pilot training has been of major concern to training providers and this fee reduction is very welcome. I commend Avalon Airport for taking this initiative.”

Four killed after G650 crashes on takeoff
A Gulfstream G650 development aircraft has crashed on takeoff, killing all four occupants on board during flight testing at Roswell, New Mexico on April 2.
The aircraft, N652GD, was conducting breaking takeoff performance tests when the accident occurred, with the G650’s right wing tip striking the runway just after it became airborne.
“The plane had just lifted off when the right wing struck the concrete. The plane hit the ground again and the landing gear collapsed,” FAA spokesman Lynn Lunsford was reported as saying.
Gulfstream has confirmed the deaths of experimental test pilots Kent Crenshaw and Vivan Ragusa and technical specialists David McCollum and Reece Ollenburg.
“We mourn the loss of our colleagues and friends and extend our deepest sympathies to their families,” said Gulfstream president Joe Lombardo. “The Gulfstream team has already rallied to support the people these men left behind, and we know that the local and aviation communities will do the same. On their behalf, we ask for your kindness, support and understanding as they, and the rest of the Gulfstream family, grieve the passing of these fine professionals.”
The accident will be investigated by the US NTSB.

People

New head for Boeing’s South Carolina operations
Boeing has announced the appointment of Jack Jones to become vice president and general manager of the company’s South Carolina facilities.
The 31-year Boeing veteran will assume overall responsibility for Boeing South Carolina, where its facilities currently fabricate, assemble and install systems for the aft fuselage sections of the Boeing 787 Dreamliner, and joins and integrates 787 mid-body fuselage sections from other structural partners. The company will soon undertake final assembly and delivery of 787s at South Carolina.
Jones replaces Tim Coyle, who is moving on to lead operations at Boeing’s Aviation Technical Services (ATS) facility in Everett, Washington, responsible for medications and completion of early-production 787 aircraft.

Qantas, Aus Post appoint Cleary as Star Track CEO
Joint venture partners Qantas and Australia Post have appointed current Qantas Freight head Stephen Cleary as new CEO for their freight business, Star Track Express.
Cleary, who has more than 20 years’ experience in the commercial freight, distribution and logistics industries, will begin his new role from May 1. Cleary has been with Qantas for than a decade, first joining the airline in 1998 before being appointed executive manager, Qantas Freight in October 2006.
Current head of commercial planning and strategy for Qantas Freight, Lisa Brock, will act in the executive manager, Qantas Freight role from May 1.

Millions Against Malaria flyers recognised
The pilots of last year’s Millions Against Malaria round-the-world flight have been recognised on a national and international scale for their charitable efforts.
Millions Against Malaria pilots Ken Evers and Tim Pryse have received both the Royal Federation of Aero Clubs of Australia Des Kelly Special Achievement award, and the Paris-based Federation Aeronautique Internationale (FAI) Circumnavigator Badge.
Evers and Pryse’s 2010 flight in a GippsAero GA8 Airvan marked the first round-the-world flight by an Australian designed and manufactured aircraft.

Stockwell new RNZAF chief
New Zealand Defence Minister Wayne Mapp has announced the appointment of Air Vice Marshal Peter Stockwell to Chief of Air Force, replacing Air Vice Marshal Graham Lintott.
“Air Vice Marshal Stockwell has proved himself a highly capable officer during his 38 years of Air Force service,” Defence Minister Wayne Mapp said. ““He is highly experienced in international relations and through the staff roles he has held in personnel and policy formation, he has gained an excellent grasp of the management requirements to make the necessary change.”
Air Vice Marshal Stockwell, who is currently serving as Commander Joint Forces New Zealand at Trentham, will begin his three year term on May 1.