News Desk

Airbus has completed first flight of the ‘Sharklet’ wing-tip devices that make up a key part of its A320neo design.

The 2.5 metre tall devices will replace the A320’s current wingtip fence and are claimed to reduce fuel burn by about 3.5 per cent. They will be available as an option on current generation A320s and standard on the re-engined A320neo, which is scheduled to begin deliveries in 2015.

Airbus says it will continue to fine tune the ‘Sharklets’ as test flights continue.

Airbus says the A320neo Family has received nearly 1500 orders and commitments from 26 customers since it was announced in 2010.

Boeing reaches union deal; won’t move 737 production

Boeing says it is poised to build its 737 MAX airliner at its existing 737 facilities in the US state of Washington after reaching a tentative contract extension with a union representing machinists.

The deal comes 10 months ahead of the expiration of the current contract between Boeing and machinists. If approved by the rank-and-file, the new contract would resolve a lawsuit filed by the union after Boeing chose to locate a second production facility for the 787-8 in South Carolina, a move the union claimed was illegal retaliation for contract demands and which sparked fears Boeing would move 737 production.

Boeing says it has received more than 700 commitments for the 737 MAX, which is scheduled to begin delivery in 2017. The single aisle jetliner is designed for improved fuel efficiency and tabbed to compete with the Airbus A320neo in what Boeing estimates as a $2 billion market over the next two decades.

Meanwhile, Boeing says it is on pace to meet a stepped up production schedule for its 737 airliner.

In early December Boeing said it finished its first 737 at the new rate of 35 per month, up from 31.5 per month. Boeing plans to further increase production to 38 per month in the second quarter of 2013 and to 42 per month in the first half of 2014. The 737 is produced at Boeing’s facility in Renton, Washington.

First 787 completes change incorporation

The first Boeing 787-8 Dreamliner to undergo change incorporation work has left Boeing’s facility in San Antonio, Texas, and should be delivered to Japan Air Lines soon.

During change incorporation, aircraft built prior to final certification are updated to reflect production specifications. Boeing said work on the 787s includes installing electronic and mechanical equipment, completing software upgrades and removing and reworking wiring.

A total of six Dreamliners are scheduled to go through change incorporation, which is expected to continue through 2013, Boeing says.

Launch customer ANA began commercial fights of the long delayed 787 in October.

First stop China for 787 world tour

Boeing is sending its 787 Dreamliner on a six month world tour showing off what it touts as a game changing aircraft.

The tour will began on December 4 with a weeklong stop in China where Boeing pitched the aircraft to government officials and representatives of Air China, China Southern and Hainan Airlines. That was to be followed by a five day swing through East Africa to visit Ethiopian Airlines and Kenya Airways and then a three day stop in Doha to visit Qatar Airways.

Dates and destinations for subsequent legs of the tour will be announced later, Boeing said. Many of the stops will include tours for local media, while aviation enthusiasts can follow the progress of the tour at www.newairplane.com.

The demo aircraft, ZA003, is an overhauled test jet retrofitted with an interior that shows off the 787′s interior features, including an overhead entryway skylight and dimmable LED cabin lighting.

EU says it complies with ruling against Airbus subsidies

The European Union says it has complied with a World Trade Organization ruling that called on it to end illegal subsidies to Airbus.

The case is part of a long running trade tiff with US, which claims that an estimated $18 billion in government aid for the European aircraft maker unfairly hurts Boeing. The US said it would study the submission by the EU, which did not publicly elaborate on how it would comply with the WTO ruling.

The EU has filed its own counter-case against the US over aid to Boeing, which the WTO is expected to rule on next year.

“The United States will be in the same position as we are today,” a spokesman for the EU trade office told the Associated Press. “At that point the EU expects to receive an equally solid set of compliance actions from the United States.”

In a statement, Airbus said it was committed to full compliance with the WTO ruling. It said the trade body’s decision, which upheld the basic legality of government partnerships with Airbus, was a “victory for Europe,” and called on Boeing to “live up to previous rhetoric on WTO compliance.” However, Airbus said reports on tax subsidies for Boeing under consideration in the US suggest that the American aerospace giant “will continue to flaunt the rules of the game.”

In its own statement, Boeing said it would work with US trade representatives to ensure that the EU and Airbus have fully complied with the WTO.

“We expect Airbus and its government sponsors to demonstrate that the practice of market-distoring launch aid — the most pernicious form of subsidy Airbus was found to have received — has ended,” Boeing said.

Boeing aims for more fuel efficient deliveries

Air New Zealand has received the first Boeing 777-300ER delivered under a new fuel saving regime.

Boeing says a raft of fuel saving initiatives will eliminate some 3000 tonnes of carbon emissions a year during deliveries of its popular 777 jetliner.

The initiatives include eliminating redundant engine tests, carefully planning delivery routes to cut down on fuel load and using electric carts instead of gas powered vehicles on the runway.

Taken together, Boeing says the plan will save 1,135,000 litres of fuel a year. Air New Zealand was the first airline to receive a 777 delivered using the new initiatives, including a chrome-free paint primer.

Commercial briefs

* Qatar Airways has been announced as the launch customer for Boeing’s new Electronic Flight Folder (EFF). The carrier will begin using the EFF next year across its fleet of 777s, making it the first airline to transmit day-of-flight data such as flight plans and weather information directly to its aircraft’s Class 3 Electronic Flight Bag. Qatar also plans to use the EFF on its future fleet of 787s, Boeing said.

SALES

AIRBUS A320: Transaero has firmed up an order for eight A320neos, building on a memorandum of understanding signed by Russia’s second largest airline in August.

AIRBUS A330: Hawaiian Airlines has signed up for an additional five A330-200s. The Honolulu based carrier now has commitments on 22 A330 aircraft including four that are under lease

BOEING 737: Air Lease Corporation (ALC) has also exercised options on four 737-800s. Aviation Capital Group (ACG) has placed firm orders for 20 737-800s. It has also signed a commitment for 35 next generation 737 MAXs

BOEING 777: Singapore Airlines has finalised a deal for eight 777-300ERs valued at $2.4 billion.

BOEING 787: Air Lease Corporation (ALC) has finalised a deal for four 787-9s, first announced at the Paris Air show in June.

Bombardier CS300: Turkish carrier Atlasjet Havacilik has ordered 10 CS300 jetliners from. To date, Bombardier says it has booked 133 firm orders for CSeries airliners.

EMBRAER E-JET: Singapore based leasing company BOC Aviation has ordered 15 E-190s.

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Airbus assembling Thai’s first A380 Airbus has started assembling Thai Airways’ first A380. Thai will become the ninth operator of the A380 when it takes delivery in the third quarter of 2012, Airbus says. The airline has firm orders for six A380s and will fly the aircraft on routes between Bangkok and Europe.

Boeing delivers 100th 737-900ER Boeing has delivered its 100th 737-900ER airliner, with the milestone aircraft delivered to Tajikistan’s Somon Air. The -900ER was launched in 2005 and has so far logged 414 orders from 16 customers. Boeing has used the jet to replace the larger 757, which ceased production in 2004.

Airbus begins A350 wing production Airbus has started production of carbon fibre wings for its composite built A350 XWB, marking another step toward completion of the new widebody. Assembly of the 32m long wings is taking place at Airbus’s recently opened factory in Broughton, UK.

MILITARY

Planning for RAAF Hawk upgrade path approved

This first phase will identify the requirements for the upgrade the RAAF’s Hawk 127 lead in fighter capability, so that it may continue to produce aircrew with the necessary skills to operate current RAAF combat aircraft, like the F/A-18 Classic and Super Hornet fleets, as well as the future combat aircraft such as the F-35 JSF.

The Government has approved funding of $43 million for Defence to develop options and conduct risk mitigation activities prior to Government approval at second pass, presently scheduled for 2013-14. At this time, it is expected bidders will tender for upgrades to the RAAF Hawk fleet, with BAE Systems’ Hawk 128 capability as adopted by the UK’s RAF likely to feature prominently.

The total cost of this first phase of the project is identified in the Public DCP as being between $100 and $300 million.

RAAF KC-30s begin air-to-air refuelling trials

A KC-30A MRTT of the RAAF’s 33SQN commenced air-to-air refuelling trials with an F/A-18B Hornet from the Edinburgh based Aircraft Research and Development Unit (ARDU) on October 18.

The trials, including wet and dry hook ups, took place between KC-30A A39-003 and ARDU’s resident F/A-18B A21-101 test aircraft, and saw the start of trials which were expected to lead up to a partial clearance for operational hose and drogue contacts from December.

The refuelling trials are expected to continue throughout 2012 as additional KC-30A crews are trained, and the refuelling flight envelope is expanded and additional RAAF types such as the F/A-18F Super Hornet are cleared to take fuel from the MRTT. Initial Operating Capability (IOC) is currently slated for late 2012.

The first MRTT entered service with 33SQN earlier mid last year following a two year delay in the aircraft’s development. Since then, two more aircraft have been delivered, and a fourth – the first MRTT built which has just completed an extensive refurbishment at Airbus and Iberia in Spain – was expected before the end of 2011. The fifth and last KC-30A is currently being converted from its standard A330-200 configuration into an MRTT at Qantas Defence Services’ (QDS) facility at Brisbane Airport, and is expected to be delivered in mid 2012.

Sixth C-17 request moves forward

The US Defense Security Cooperation Agency (DSCA) has notified congress of the possible sale of a sixth Boeing C-17 to Australia at an estimated cost of $300 million.

The deal would include up to four Pratt & Whitney F117-PW-100 engines, one AN/AAQ-24V(13) Large Aircraft Infrared Countermeasures System, as well as spare parts, testing equipment and personnel training.

The RAAF’s original fleet of four C-17s, which was announced in February 2006 and delivered from December that year, was bolstered earlier this year by the acquisition of a fifth aircraft, ordered in early April. The fifth C-17 was delivered just 142 days after it was ordered due to an urgent requirement from the RAAF to cover heavy maintenance of its first aircraft, but assuming both the US and Australian governments approve its purchase on schedule, the sixth aircraft isn’t expected to be delivered until the fourth quarter of 2012.

In order to accommodate the two new aircraft, the RAAF expects additional ramp and hangar space and terminal facilities will be required at the northern end of Amberley where 36SQN’s C-17s and the growing fleet of KC-30A MRTTs of 33SQN – expected to number four by early next year – are based.

Defence Minister Stephen Smith has said the addition of the fifth and sixth C-17 will effectively double the RAAF’s heavy airlift capability when taking into account scheduled and unplanned maintenance. He says the aircraft have proven their worth supporting regional disaster relief missions and the ADF’s deployments in the Middle East.

F-111s down in the dump

The hulks of 23 decommissioned F-111s have been dumped in the Swanbank landfill near Ipswich, angering fans of the fighter jet.

The F-111s had been based at RAAF Amberley before they were decommissioned last year in favour of the F/A-18 Super Hornet. The US government places tight restrictions on how equipment obtained through its Foreign Military Sales program can be used after leaving service.

The RAAF says a pair of retired F-111s will be displayed at Amberley’s Heritage Centre, and seven of the jets remain on offer to eligible museums and historical organisations.

But it will be left to future archaeologists to study the remains of the 23 F-111s buried at Swanbank, a move that infuriated Ipswich Councillor Paul Tully.

“Fifty years of Australian history down the drain,” he wrote on his Facebook page.

Indonesia to get 24 F-16C/Ds

The United States will sell 24 refurbished F-16C/D fighter jets to Indonesia under a proposed deal announced Friday during the Asia-Pacific summit in Bali.

Including equipment, parts, training and logistical support, the price tag on the deal comes to roughly US$750 million, according to a statement by the US Defense Security Cooperation Agency notifying Congress of the planned sale.

In the statement, the DSCA said the deal “will contribute to the foreign policy and national security of the United States by improving the security of a strategic partner that has been, and continues to be, an important force for economic progress in Southeast Asia.”

It said the new-to-Indonesia F-16s would give the country’s air force (the TNI-AU) the ability to operate in far-flung border regions beyond the capabilities of its current fleet of F-16A/Bs and ageing F-5s.

The aircraft will come from excess US stocks and will include upgraded radar and avionics.

RAAF C-130Hs gifted to Indonesia

Australia will donate four C-130H Hercules transports to Indonesia in a deal announced at the Asia-Pacific summit in Bali in November.

The quartet of ex-RAAF aircraft, worth about $30 million, will be tabbed for humanitarian and disaster relief efforts, Prime Minister Julia Gillard said in announcing the deal. Australia also announced plans to send three high-speed naval boats to patrol Indonesian waters in a bid to combat people smugglers.

The C-130Hs were due to be sold on the open market and reportedly require about $25 million in maintenance before they’re ready to fly.

Separately, personnel from the RAAF and Indonesian Air Force have taken part in a six day exercise focusing on airdrop missions.

Exercise RAJAWALI AUSINDO, held at RAAF Base Darwin from December 6, involved a C-130 from each country.

Boeing to begin EMD work on Super Hornet infrared sensor

The US Navy has contracted Boeing to begin engineering and manufacturing development (EMD) of an infrared air-to-air targeting system for the F/A-18E/F Super Hornet.

The US$135 million contract for the Infrared Search and Track (IRST) sensor represents a key element of the Navy’s Block II Super Hornet flight plan. The IRST is scheduled for Initial Operating Capability in 2016, Boeing says.

The passive, long-range sensor can track multiple targets based on their infrared emission, allowing it to pick up targets equipped with radar-jamming equipment.

Boeing is partnered on the IRST with Lockheed Martin, which is producing the sensor, and GE Aviation, which is supplying the fuel tank assembly that will contain the sensor.

Military briefs

* Airbus Military has started final assembly of its first production A400M transport. The French air force is scheduled to receive the airlifter (MSN7) in late 2012 or early 2013, Airbus said. Eight other A400Ms are at various stages of production.

* BAE Systems Australia has won a $270 million contract to add the Project Sea 1442 Anti-Ship Missile Defence (ASMD) capability to Australia’s seven remaining ANZAC class frigates, after the successful upgrade, trials, and service release of HMAS Perth earlier this year.

The project sees the installation of the CEA Phased Array Radar, the Vampir NG Infrared Search and Track system, the Sharpeye Navigation Radar System and an upgraded Saab Combat Management System including an improved operations room layout.

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Ghana receives first C295 Ghana’s Air Force has taken delivery of the first of two C295 transport planes on order form Airbus Military.

Ghana will use the planes for domestic military transport and humanitarian relief missions. To date, Airbus Military has sold 85 of the twin turboprop C295s to 14 different operators.

Orion casts its net in fisheries op An RAAF AP-3C Orion maritime surveillance aircraft has deployed to support a multi-national operation targeting illegal tuna fishing in the South Pacific. Operation KURU KURU, which ran from November 7 to 14, patrolled a 30-million square kilometre area as part of annual efforts to keep poachers out of the lucrative Pacific Tuna fisheries. The Orion flew four missions as part of the operation, identifying about 100 fishing vessels within its areas of operation, the RAAF said.

First UK F-35 rolls off production line Lockheed Martin has rolled out the first F-35B Joint Strike Fighter test aircraft for the United Kingdom. It is to be delivered to the UK for training and further testing in 2012. Interestingly, the UK’s Strategic Defence Review conducted late last year called for its order for 138 F-35Bs to be changed to the carrier F-35C model, and for its first QEII class aircraft carrier to be equipped with conventional catapults and arrestor gear. BK-1 is the first F-35 produced for a country other than the US, Lockheed Martin said.

AIRLINES

Qantas profits, passengers down sharply

High fuel prices and its running dispute with unions have cost Qantas more than $650 million, according to a profit update released by the airline.

Qantas expects a first-half underlying profit of $140 to $190 million, a sharp decline from its $417 million profit in the first half of 2010/11.

The industrial battle that led the airline to briefly ground its fleet at the end of October cost Qantas $194 million, including $70 million in lost sales, refunded tickets and hotel bills over the three-day grounding. The airline also estimated a $27 million loss in future bookings and $29 million in free flights and other perks handed out to passengers effected by the grounding, which stranded more than 60,000 travellers.

Qantas CEO Alan Joyce defended the decision to ground the fleet, saying industrial action had cost the company $68 million prior to the decision and would have cost the company $85 million a month had it been allowed to continue.

Passenger numbers also tumbled in October, with Qantas Domestic down 11.3 per cent from a year earlier and Qantas International off 3.6 per cent. Those number reflected the effects of the grounding and industrial dispute, and continued a downward trend for the flagship carrier, which saw a 3.5 per cent drop in domestic passengers for the month.

Budget subsidiary Jetstar, which wasn’t impacted by the grounding, saw solid continued growth as domestic passengers were up 7.9 per cent, international up 11.1 per cent and Jetstar Asia up 7.1 per cent. Overall, the Qantas Group reported a 1.8 per cent drop.

Joyce said forward bookings on Qantas have returned to normal since labour umpire Fair Work Australia ordered an end to industrial action and the labour dispute moved to binding arbitration.

“After a very difficult period we are now back to normal operations thanks to the continued support and loyalty of our customers and employees,” he said.

Qantas said it couldn’t estimate profits for the second half of the year, citing volatile fuel prices and foreign exchange rates. The airline said it had a current cash balance of more than $3.3 billion.

Virgin says earnings up, new booking system on the way

Virgin Australia says pre-tax profits rose during the first quarter despite higher fuel costs, but stopped short of providing specifics.

The airline said it could not provide clear profit guidance because of the uncertain global economic environment but continued “to expect an improvement in underlying performance over the last financial year.”

Virgin Australia reported an after-tax loss of $67.8 million in 2010/11.

The comments were part of a presentation to shareholders at the company’s annual general meeting in Brisbane in late November, and come as Virgin moves to expand its offerings as a full-service airline by targeting corporate customers in particular.

CEO John Borghetti told shareholders the airline was “building significant momentum” and had “laid the foundations for future growth.” But executives also acknowledged that high fuel costs and persistent financial woes in Europe and North America made for a challenging business environment that was not likely to resolve in the near future.

Separately, Virgin said it was changing its reservation and booking platform to Sabre in a bid to better integrate ticketing with alliance partners and improve customer recognition. The migration to Sabre is expected to be complete by March 2013, Virgin said.

A computer glitch led to the collapse of then-Virgin Blue’s booking system in September 2010, throwing the airline into 11 days of turmoil and costing it an estimated $20 million. Virgin and IT company Navitair reached an undisclosed settlement over the problem earlier this year.

Tiger cleared to add flights

Tiger Airways has received regulatory approval to boost its Australian flights, days after the budget carrier announced deep losses in the last financial quarter.

The Australian Civil Aviation Safety Authority (CASA) on Tuesday cleared Tiger to increase its daily flights from 22 to 32, still well below the pace of Tiger’s operations before CASA grounded the airline over safety concerns in July.

The six week suspension cost Tiger US$20.7 million, leading to a $38 million loss in the quarter that ended in September, the airline said. CEO Chin Yau Seng said the airline needed to boost its flights if it hoped to break even.

Tiger says it will use the additional flights to bolster core routes from its Melbourne hub rather than resuming service on routes it cancelled after the grounding. It will add two additional daily return services between Melbourne and Sydney and one each between Melbourne and Perth, Brisbane and the Gold Coast.

ACCC approves Virgin-SIA alliance

The Australian Competition and Consumer Commission in December gave final approval to Virgin Australia and Singapore Airlines’ alliance.

Under the alliance, Virgin and SIA were due to launch a codesharing arrangement in early 2012 and will offer reciprocal lounge access, coordinated schedules and joint sales, marketing and distribution activities. Passengers were due to be able to earn and redeem frequent-flyer miles between the two airlines starting from December.

The alliance was approved by the Competition Commission of Singapore in October.

Virgin overtakes Qantas for domestic pax in October

Virgin Australia carried more domestic passengers than chief rival Qantas in October as it took advantage of the Flying Kangaroo’s labour troubles.

Virgin saw its domestic passenger numbers surge to 1.51 million, a 7.4 per cent increase over October 2010. Qantas had earlier reported an 11.3 per cent drop in domestic carriage to 1.41 million passengers. The Qantas figure does not include a roughly similar number of passengers carried by subsidiaries Jetstar and QantasLink.

Virgin added some 3000 extra seats on main domestic routes after Qantas announced what proved to be a three-day grounding of its fleet at the end of October. The additional capacity was on top of the 40,000 extra seats Virgin had added to its domestic network for travel between mid-October and January next year.

Virgin said domestic capacity was up 4.6 per cent in October over the previous year, while revenue passenger kilometres increased by 9.3 per cent.

International passenger numbers were down 4.3 per cent. The airline said those numbers were skewed by its withdrawal from the New Zealand domestic market in October 2010 and by the reorganisation of its international network.

Tiger leads in timeliness, Qantas plunges

Under intense scrutiny and operating a reduced schedule, Tiger Airways bounced back to lead domestic carriers in on-time performance during October.

Qantas, not surprisingly, saw its on-time numbers tumble amid industrial action that led the airline to ground its entire flight for two days at the end of October, according to figures released by the Department of Infrastructure and Transport.

For the month, 84.7 per cent of Tiger flights departed on time. Virgin Australia was next at 82.9 per cent, followed by Qantas at 76.4 per cent and Jetstar at 75.8 per cent. The regional airlines were led by Regional Express at 84.8 per cent, followed by Skywest at 83.9 per cent and QantasLink at 79 per cent.

Prior to the July 1 suspension, Tiger consistently hovered between 60 and 70 per cent on-time departures, well below other airlines.
Virgin rebrands international carriers

Virgin officially relaunched its V Australia and Pacific Blue international carriers under the umbrella Virgin Australia brand on December 7.

The move to a single brand comes as Virgin Australia transitions away from its roots as a budget carrier. Virgin Blue relaunched as Virgin Australia earlier this year, and parent company Virgin Blue Holdings Ltd was renamed Virgin Australia Holdings Ltd in early December.

Aside from the updated aircraft livery, the rebranding of V Australia and Pacific Blue sees new signage at key international ports, new-look travel documents and a consolidated Virgin Australia website.

Meanwhile, Polynesian Blue is set to become Virgin Samoa under Virgin Australia’s rebranding campaign.

Under the relaunch, Virgin Samoa’s single 737-800, named Tapu’itea, has been repainted in Virgin Australia’s red and white livery, but with a few Samoan touches such as a palm tree painted on the fuselage and a tatau pattern on the engines.

The pattern will also feature on neck ties and scarves worn by the airline’s crew, who will wear uniforms otherwise similar to Virgin Australia’s. Virgin said the changes will take effect early next year.

Polynesian Blue was launched as a joint venture between the Samoan government and Virgin Blue in 2005.

Future of Jetstar Pacific up in the air amid takeover reports

Vietnam based Jetstar Pacific has struggled since Qantas bought a minority stake in the airline in 2008.

Jetstar has denied reports that Jetstar Pacific is on the verge of being taken over by Vietnam Airlines, though it says it would support such a takeover.

The Ho Chi Minh City based budget carrier has struggled since Qantas bought a minority stake in the airline in 2008 and rebranded it under the Jetstar name, and a report posted Wednesday in the Vietnam News said the carrier would be taken over by Vietnam Airlines as part of a plan to save it from bankruptcy. The report quoted the deputy head of Vietnam’s Civil Aviation Administration.

Qantas had no response to the report through most of the day Thursday but released a statement late in the day dismissing what it called “erroneous” and “misleading” claims that Jetstar Pacific was about to be absorbed.

“Contrary to reports, no agreement has been formalised and the ownership structure for Jetstar Pacific remains unchanged,” a Jetstar statement said.

But Qantas said it continued to support a proposed ownership swap between the Vietnamese State Capital Investment Corporation, the current majority owner, and Vietnam Airlines. Qantas said its 27 per cent stake in the airline would be unaffected by the swap.

While Qantas said Vietnam Airlines would be “welcomed as a partner” in Jetstar Pacific, Vietnam Airlines has often expressed hostility toward the budget carrier, blaming it for undercutting fares and causing both airlines to lose money. Vietnam Airlines remains the dominant carrier in the country’s domestic market, with about 80 per cent of market share compared to Jetstar Pacific’s 17 per cent.

Jetstar Pacific has faced a host of problems in recent years, including safety violations and a government investigation into fuel hedging losses that briefly saw two Qantas executives barred from leaving Vietnam.

Perth traffic spikes as east coast sputters

The mining boom is driving strong growth in passenger travel to and from Perth even as more popular east coast routes show sluggish or negative growth.

Overall passenger numbers through the Western Australia capital were up 9.5 per cent to 11.45 million for the year ending September 30, according to figures released by the Bureau of Infrastructure, Transport and Regional Economics.

In contrast, traffic on the Melbourne-Sydney route, by far the country’s most popular, was down 4.7 per cent in September, while traffic for the country as a whole fell 2.1 per cent for the month to 4.6 million.

The September figures show traffic on the Perth-Newman route up 26.6 per cent and Perth-Brisbane up 18 percent while routes between Perth and Sydney, Melbourne, Kalgoorlie and Karratha all rose by around 10 per cent.

Jetstar begins Melbourne-Beijing service

Jetstar began operating its new daily Melbourne-Beijing services, which are routed via Singapore, in late November.

Jetstar operates 303-seat Airbus A330s on the Melbourne-Singapore-Beijing service. Flight JQ7 departs Melbourne at 1200, arriving in Singapore at 1650. It then departs Singapore at 18:35, arriving in Beijing at 0050 the next morning. The reciprocal JQ8 departs Beijing at 0250, arriving in Singapore at 0930. A significant stopover ensues, before JQ8 departs Singapore for Melbourne at 2050, arriving in the Victorian capital at 0655 the following morning.

Qantas adds express lanes to domestic service

Qantas is launching express boarding lanes for premium customers across its main domestic ports.

The airline said business class customers as well as Chairman’s Lounge members, oneworld Emerald members and Platinum Frequent Flyers will have the option to use the dedicated lanes when boarding Qantas domestic flights, mirroring the express lane service already available on international flights.

The domestic express lanes have already been launched at Perth Airport and is expected to be unveiled in Sydney, Melbourne and Brisbane in the coming weeks.

Virgin Australia introduced priority boarding for domestic business class passengers earlier this year.

Virgin Australia overhauls frequent flyer program

Virgin Australia frequent flyers will be able to earn and redeem points online with Westfield under a new partnership between the airline and shopping centre management group.

Virgin says the new program is in response to market research that shows non-flight rewards such as retail purchases nearly as popular with Australian frequent flyers as flight rewards.

The airline’s revamped Velocity program will also allow frequent flyers to pool their points with family members and to take “parental leave” from the program for up to six months without losing points.

The airline’s research found that 50 per cent of frequent flyers rated flight rewards such as free, discounted or upgraded tickets as the most important part of a frequent flyer program, while 43 per cent said non-flight rewards were most appealing. Another 47 per cent of respondents rated the ability to pool points with family members as the best way to improve such programs.

The market study was conducted by Galaxy Research in October based on a sample of 1510 respondents between the ages of 18 and 64, Virgin said.

Air New Zealand launches all-in-one membership card

Air New Zealand is ratcheting up its frequent flyer card in a bid to replace most of the rest of the cards in your wallet.

Air New Zealand’s new Airpoints loyalty card will include an optional pre-paid debit card as well as an ePass tag to ease domestic check-in.

Once activated, the MasterCard branded debit card can be pre-loaded with up to four foreign currencies for use overseas or at foreign-based online retailers without accruing additional currency conversion fees. The debit card will also earn users frequent flyer points.

Scoot plans Sydney route

Singapore based start up Scoot Airlines has announced plans for a daily flight to Sydney once the long haul budget carrier is off the ground in mid-2012.

New South Wales officials said the service would bring 400 passengers a day to Sydney and inject $146 million annually into the state economy.

“This is a great win for Sydney and travellers in the Asia-Pacific region, opening up Australia’s largest city to more international routes and lower-cost carriers,” New South Wales Premier Barry O’Farrell said in a statement. “It’s also confirmation that Sydney remains Australia’s only true global city.”

The Scoot deal was the first landed under a partnership between Sydney Airport and Destination NSW to promote the city to new airlines and compete for routes as the state seeks to bolster its tourism industry.

But not all view the Scoot deal as an economic boon. Writing in the Sydney Morning Herald, former Qantas chief economist Tony Webber estimated the airline will carry 62,000 Australian tourists overseas, where they will spend roughly $200 million they otherwise might have spent domestically. Under those maths, Webber argues, the new route will actually cost the state $50 million a year.

A subsidiary of Singapore Airlines, Scoot will launch in mid-2012 with a fleet of four Boeing 777-200s. The airline plans to focus on long haul routes in Australasia and China with plans to expand into India, Europe and North America.

Massive 737 order could signal Aussie ambition for Lion Air

A record buy of Boeing 737s by Lion Air signals an expansion that could see the Indonesian carrier enter the Australian market.

The $21.7 billion commitment for 201 737 MAX and 29 737-900ER jetliners broke a Boeing record for both volume and value, topping a days old mark set by Emirates Airlines’ $18 billion deal for 50 777-300ERs.

Lion Air, which currently operates a fleet of 67 aircraft, has long held an interest in the Australian market. The carrier announced plans in 2008 to launch an Australian based domestic and international carrier as part of a joint venture with SkyAirWorld. That plan fell through when SkyAirWorld collapsed the following year, but Indonesian media reports during 2010 indicated that Lion Air was again contemplating the launch of international service to Australia.

Peter Harbison, the executive chairman of CAPA-Centre for Aviation, said Lion Air has operated mostly under the radar but has developed a quality product “weaned in the hothouse of an Indonesian market that grew five-fold in the last decade.

“These new orders won’t come online til the latter part of the decade, but meanwhile Lion has aspirations to be very much one of the big movers in short haul Asia,” Harbison told Australian Aviation. “I doubt it will be long before they come into the Australian market, first internationally, then domestically.”

The deal between Lion Air and Boeing includes purchase rights for 150 additional aircraft.

The 737 MAX that makes up the bulk of the order is in the final stages of design and currently slated for first flight in 2016. The single aisle jetliner features upgraded CFM International LEAP-1B engines designed to increase fuel efficiency and compete with the Airbus A320neo, which is scheduled to begin delivery in 2015.

The deal was to be officially announced on November 17 at a ceremony attended by US President Barack Obama during the East Asia Summit in Bali.

American files for Chapter 11 bankruptcy protection

Following in the footsteps of other major US carriers, American Airlines has filed for Chapter 11 bankruptcy protection as it seeks to restructure operations and cut labour costs.

American said the filing would have no immediate impact on flight schedules and would not affect its frequent flyer program. A “modest” reduction in flights and a corresponding round of job cuts could come as the restructuring moves forward, the company said.

Qantas said the bankruptcy filing would have no short-term impact on its alliance with American, which connects Qantas passengers to more than 400 US destinations through American’s Dallas-Fort Worth hub.

American was the only major US legacy carrier not to file for bankruptcy since 2001. Other airlines have used the process, which shields companies from creditors, as a means to push through lower cost labour deals and slash debt. Some analysts said American had been hurt by its decision not to enter bankruptcy earlier as it continued to shoulder higher costs such as company-funded health and pension plans.
Now the third largest US carrier, American had also been hurt by the recent mergers of United and Continental, and of Northwest and Delta, as well as by soaring fuel costs and the emergence of budget carriers. Parent company AMR Corp has lost US$12 billion since 2001 and was on track to lose another US$1.1 billion in 2011.

American placed a US$38 billion order in July for up to 460 narrow bodied Airbus A320 and Boeing 737s as it seeks to upgrade its aging fleet with more fuel efficient aircraft. The airline says it intends to go forward with those orders. Once the world’s largest airline, American sought to describe the bankruptcy in anodyne terms, with a disclaimer on its website noting it had entered a “United States legal process [that] enables American to maintain normal business operations and improve our competitiveness.”

Virgin offers surprising vacation packages

Ever felt like booking a getaway without knowing where you’d end up? If so, Virgin Australia has the deal for you.

The unconventional “Mystery Breaks” packages include return airfare and 4- or 5-star accomodation in a range of beach and capital city destinations – but you won’t find out which one until a few days before you leave, according to the airline.

The packages depart from Sydney, Melbourne, Brisbane, Adelaide and Perth. Travellers can exclude one destination from the list of more than 20 possibilities, but beyond that it’s up to the airline.

Hong Kong Airlines bucks the budget trend

Budget carriers may be all the rage, but Hong Kong Airlines is placing a bet at the other end of the price spectrum.

The five year old operator plans to launch a premium class service with “private jet style ambience” between Hong Kong and London in March.

The daily, overnight flights will be operated by a dedicated fleet of three brand new Airbus A330-200s configured into an “all Club Class” seating configuration of just 116 seats – a little over a third the number of a normal A330 configuration.

Club Premier will include 34 suites with fully flat beds, fine dining with individual table settings and turndown service with duvets, pyjamas and slippers.

The somewhat less posh Club Classic section with feature 82 cradle seats configured 2-2-2 over a pair of cabins. All passengers will have access to WiFi, AVOD, digital magazines and high definition widescreen entertainment systems.

Flights are scheduled to begin on March 8.

Airline briefs

* Skywest Airlines has taken delivery of a fourth ATR 72-500 turboprop which it will operate for Virgin Australia. Virgin is already operating the 68-seat turboprops on routes connecting Brisbane with Port Macquarie and Gladstone, and Sydney with Port Macquarie and Canberra. It plans to launch another ATR 72-500 service between Brisbane and Emerald. Skywest said it is also preparing to receive four ATR 72-600s, which will enter into service for Virgin late next year.

* New South Wales police have suspended an investigation into threatening letters allegedly sent to Qantas CEO Alan Joyce and other executives in the heat of the airline’s dispute with unions. A police spokeswoman said that the investigation had been suspended but declined to elaborate. Unions had dismissed the claims as a public relations stunt.

AIRPORTS

Melbourne reveals expansion plans

Melbourne Airport has unveiled plans to have its new T4 domestic terminal opened by 2014 as part of a planned $300 million expansion.
Melbourne’s new Terminal Four will replace a rudimentary terminal currently used by Tiger Airways. Airport CEO Chris Woodruff told The Age that discussions were still ongoing as to which airlines would use the new terminal, but it will likely be aimed at domestic low costs carriers.

The project will also include improvements to road accessing the airport and an extension of Virgin Australia’s Terminal Three.

The project would retain one of Melbourne Airport’s key advantages over Sydney Airport by keeping all terminals under one roof, saving passengers from having to change terminals as they transfer between domestic and international routes.

Sydney’s proposed overhaul would partly address this by reorganising its terminals based on airline rather than destination. Under the plan, Qantas and its allies would take over the current domestic terminals while Virgin, its allies, and independent airlines would take over the current international terminal. The proposal, still in its planning stages, could see completion by 2019.

Bankstown flags expanded cargo operations

Sydney Metro Airport Bankstown is exploring plans to expand overnight freight operations.

That could include facilitating a dedicated fleet of Boeing 737 freighters or a similar type of aircraft at the airport. Currently, overnight freight activities at the airport are limited to midsized propeller aircraft.

In a statement, CEO Colin Grove said the airport was awaiting results of the government commissioned Sydney Basin Aviation Capacity Study before moving ahead with plans. A full technical feasibility assessment of expanded freight operations would be launched if the study recommends an increased role for the Bankstown Airport.

Any plans to expand operations would also be subject to an extensive public consultation process, Grove said.

He said the airport would await the outcomes of the government study before considering any expansion to its currently limited passenger services.

Airport awards for Adelaide, others

Adelaide Airport has been named Australia’s capital city airport of the year.

The award, presented Tuesday during the Australian Airport Association’s annual convention, recognised the airport for a major overhaul of its runways that including laying down over 415,000 square meters of asphalt and replacing more than 600 taxiway lights with new LED technology.

Newcastle Airport and Sunshine Coast Airport shared the award for major airport of the year. Newcastle was recognised for a program that brought more than 3500 school children to the airport to learn about operations, while Sunshine Coast drew the honour for its terminal redevelopment.

Airport briefs

The federal government has approved Essendon Football Club’s plan to build its $26 million new home at Melbourne Airport. The plan will have no significant impact on aviation at the airport and is not expected to impact traffic in the area, Minister for Infrastructure and Transport Anthony Albanese said in a statement announcing approval of the plan.

General Aviation

First King Air 250 delivered to Australia

Hawker Pacific has delivered its first King Air 250 business plane to Australia.

The Pratt & Whitney PT6A-52 powered turboprop will be used to transport “key personnel between remote project sites,” Hawker Pacific said, declining to identify its corporate customer.

The King Air 250 is the latest iteration of Hawker Beechcraft’s evergreen King Air twin. The upgraded plane features a quieter cabin as well as engine induction modifications and composite winglets and propellers that lead to improved airfield performance, the company says. Hawker Beechcraft claims a 400ft reduction in takeoff distance over the B200GT as well as slight improvements in high speed cruise, climb performance and range.

BUSINESS aviation

Maiden flight for US built Phenom

The first US built Embraer Phenom 100 business jet has made a successful maiden flight, Embraer said.

The aircraft flew to 41,000ft and reached its top speed with no anomalies during the two and a half hour flight, the company said.

The Brazilian aircraft maker opened its production facility in Melbourne, Florida, in February and in December opened an adjacent customer centre and showroom.

The first US built Phenom 100 is scheduled to be delivered to Kansas City based Executive AirShare by the end of the month.
ExecuJet expands Australasia facilities

ExecuJet Australasia has opened new Fixed Base Operations in Melbourne and Wellington.

The Melbourne facility, located at Essendon’s general aviation airport, adds a lounge area, offices, stores and maintenance workshops to an existing maintenance facility.

“The expanded facility will allow us to offer a more comprehensive maintenance service as well as now offer a full service FBO which we were unable to do previously” said Darren McGoldrick, managing director of ExecuJet Australasia.

The facility at Wellington International Airport includes a 2000m hangar and comes as part of the airport’s redevelopment.

Gulfstream G650 gets nod from FAA

Gulfstream has received FAA provisional type certification for its G650 ultra long range business jet.

The approval puts Gulfstream on target to begin deliveries what it claims is the world’s fastest non-military aircraft during the second quarter of 2012 as originally planned, Gulfstream said.

A quartet of G650 test aircraft, including one with a fully outfitted interior, have flown more than 2225 hours on 675 flight. The aircraft has topped 14 hours of continual flight with test data confirming a range of 7000nm (12,964 km) at Mach 0.85. With a top speed of Mach 0.925, the G650 is the world’s fastest civilian jet, Gulfstream says.

All four members of a Gulfstream flightcrew were killed in April when G650 test aircraft N652GD crashed after its right wingtip hit the runway during takeoff. Gulfstream resumed test flying the following month.

Security

Ban on liquids to be eased by 2013

Travellers in Australia will no longer be banned from taking liquids on international flights once new explosive detection equipment comes online, the federal government has announced, saying the machines would be installed by 2013.

Approval of new “multi-view explosive detection x-ray machines and bottled liquid scanners” follows trials at Sydney and Melbourne airports last year that saw the machines successful in detecting liquid explosives. The trails were conducted jointly with the US and UK.

At present, international passengers cannot carry any container of liquid larger than 100 ml onto an international flight. The government says passengers are forced to surrender an average of 1250 bottles of perfume, alcohol and other duty free items a month at Sydney Airport alone, in addition to 8000 “non valuable” items such as water bottles.

Transport Minister Anthony Albanese said ending the ban would mean one less inconvenience for passengers and would free security personnel to “concentrate on the real threats.”

The ban on liquids was imposed in 2006 after a failed attempt to use liquid explosives to blow up flights between Britain and North America.

Darwin Airport to get explosive detection machines

Darwin Airport is set to receive a pair of Explosive Trace Detection machines by the end of the year.

The $100,000 machines come as part of $200 million federal government initiative to beef up airport security that will fund a raft of new measure including full body scanners, multi-view X-ray machines and additional security dogs.

The explosives detection machines are already in use across most major Australian airports.

SUPPORT

John Holland scores Boeing maintenance deal

Melbourne based John Holland Aviation Services has been selected to provide Boeing GoldCare maintenance for the Asia-Pacific region.

Under the deal, John Holland will provide line, base and heavy maintenance as part of fleet management services for Boeing’s Next Generation 737 and 787 Dreamliner aircraft.

Victorian Minister for the Aviation Industry Gordon Rich-Phillips hailed the decision as further proof that the state has established itself as an international leader in aviation. He said the deal could lead to new jobs in an industry that already contributes more than $600 million annually to the state’s economy and directly employs about 22,000 people, he said.

The announcement came as 787 ZA001 visited Melbournein November during its short Australian visit.

Support

New flight simulator is not messing around

A seat at the end of a giant robot arm is at the centre of what is being hailed as “the next big thing” in combat flight simulation.

As this video at the end of this post makes clear, Deakin University’s new Universal Motion Simulator (UMS) is not for the weak of stomach.

Capable of exerting a face-distorting six Gs of force, the UMS can spin users at high speed in any direction, including upside-down.

Combined with a high resolution 3D display mounted inside a headset, it provides a far more realistic training environment than traditional aircraft simulators, the designers say, and could also be used to simulate tanks, race cars, motorcycles – or virtually anything else. It could even be linked with similar machines elsewhere to simulate an air-to-air combat.

“Its training capabilities are endless,” Professor Saeid Nahavandi, the Director of Deakin’s Centre for Intelligent Systems Research, said.

“No other simulator can provide the full experience of flying a military jet with all the gut wrenching G-forces while only seven metres off the ground.”

If that wasn’t enough, the simulator can also monitor a pilot’s brain activity as well as pulse and blood pressure to measure physical and mental responses.

Deakin has received $1.8 million in government grants toward the establishment of the facility housing the UMS.

CASA to review civilian UAV regs

CASA is launching a review of decade old rules governing civilian use of UAVs.

Current rules were drafted at a time when there was little such use and contain few details on important subjects such pilot qualifications, airworthiness and risk management. The lack of clear guidance makes new applications onerous and increases the chances for mistakes, the regulator says.

“At present each application for an unmanned aircraft systems operations is a standalone exercise and requires significant education of applicants,” CASA boss John McCormick wrote in the November edition of the regulators’ monthly e-newsletter. “With a rapid increase in activity in this sector there is a risk that unsafe decisions could be made without comprehensive guidance material being available.”

CASA will produce a series of six circulators advising industry and its own officials on managing safety of unmanned systems. Once the advisory material has been completed, CASA will launch a full review of current regulations that will also assess the long term integration of UAVs into normal aviation operations across all classes of airspace.

King Air simulator in Melbourne next year

A simulator for the Hawker Beechcraft King Air 350i is scheduled to come on line in Melbourne next year.

The CAE 5000 series full flight simulator will provide pilot and maintenance technician training up to CASA Level D, the highest qualification for flight simulators. Training credits will also be available for operators of the King Air 200, CAE said, and the system is expected to be used to train military pilots as well.

CAE said the King Air 350i simulator, which will incorporate the Rockwell Collins Pro Line 21 integrated avionics suite, will arrive in Melbourne during the first half of 2012 at a location yet to be determined.

Support briefs

New Zealand based CTC Aviation Hamilton has landed a long term pilot training contract with Royal Brunei Airlines. The agreement follows deals with British Airways and Monarch Airlines in recent months, CTC says.

ATC & AIRSPACE

Initial approval for Defence Air Traffic Management system upgrade

The government has provided first pass approval for Phases 2 and 3 of the Air 5431 Air Traffic Management and Control Systems project.

This project will – in conjunction with Airservices Australia – deliver replacement surveillance radars and tower and approach automation systems for the current systems which are approaching the end of their life of type. A key feature of the project will be to enhance interoperability between military and civil air traffic management systems, as announced in the 2009 National Aviation Policy White Paper.

The government has approved funding of $6.9 million for capability development activities, prior to second pass, which is scheduled for 2013-2014. The total cost of these phases is identified in the Public DCP as being between $300 and $500 million.

People

AAA elects new chairman

Brisbane Airport general manager Stephen Goodwin has been elected chairman of the Australian Airports Association (AAA).

In a statement, the association cited Goodwin’s broad experience in aviation over 14 years with the Brisbane Airport Corporation.

Goodwin replaces John McArdle of Adelaide Airport, who has served as AAA chairman for the past nine years.