News desk

The reshuffle, which had been flagged in January, preserves the Franco-German balance of power atop the company, based around an agreement to alternate the nationality of the EADS CEO every five years.

Boeing tweaks 737 MAX design
Boeing has tweaked the engine design of its upcoming 737 MAX airliner, upping the fan size as it continues to iron out plans for the jet.

In the latest change, Boeing said the CFM LEAP-1B engines used in the updated 737 would come with a 176cm (69.4in) fan, 3.6cm (1.4in) larger than in the previous design plans released in November. A larger fan makes an engine more efficient but also creates more weight and drag.

Boeing has already made several changes to the single aisle airliner, which is based on the current-generation 737 airframe, in order to accommodate the larger engines. Those include lengthening the nose landing gear to give the aircraft more ground clearance. Boeing has said it will finalise the aircraft’s design by mid-2013.

Boeing has won more than 1000 commitments for the 737 MAX, including some 415 firm orders. The aircraft is due to begin deliveries in 2017, two years after Airbus is set to begin shipping its rival A320neo.

Up to airlines to promote pilotless aircraft – Airbus
Airbus says it is ready and able to build a pilotless airliner but is says it is up to the airlines to sell the concept to the public.

Addressing global media at Airbus Innovation Days in late May Airbus executive vice president of strategy and future programs Christian Scherer said that “airlines are pressing it to reduce costs on a plane “and pilots are the highest costs aside from fuel.”

“We [through parent EADS] are a leader in pilotless drones for the military and we can develop the algorithms for even the [US Airway’s water landing on the] Hudson River,” said Mr Scherer.

“We can build a pilotless commercial plane now but it is up to the airlines to sell the concept to the public.”

Mr Scherer said he didn’t think the flying public was quite ready for a pilotless aircraft but said that Airbus needed to be ahead of the technology and ready to move if demand eventuated.

Mr Scherer said that a number of airlines both cargo and passenger were talking to Airbus about a pilotless plane but he declined to name them.
However, there are significant challenges with the technology with such important aspects such as cross-wind landings with current auto-land systems unable to handle strong winds.

In the meantime, Airbus is working on advances to cockpit technology, and forecasts a step change in flightdeck layout and technologies in future airliners.

“The next aircraft after [the A320] neo is going to have a very different cockpit than the A320′s today,” Mr Scherer said.

“I would guess there will be a rupture and there will be a new standard on which we will build [flightdeck] commonality.”

A380 repair bill weighs down EADS profits

Airbus parent EADS spent 158 million euros (A$205m) fixing wing cracks in A380 superjumbo jets during the first quarter of the year, throwing a wrench in its plans to improve the program’s profitability.

Despite the massive repair bill and the wider economic troubles in Europe, however, EADS still reported healthy first-quarter profits of 133 million euros. Revenues climbed 16 per cent from the same period last year to 11.4 billion euros, driven in part by healthy deliveries of commercial aircraft. Airbus has said it expects to deliver about 570 aircraft this year, up from 534 last year.

“Demand for commercial aircraft and civil helicopters remains healthy and our institutional business fared reasonably well despite European budget pressures and an uncertain economic environment,” said Louis Gallois, CEO of EADS, which also includes Eurocopter.

Still, EADS acknowledged that its target of delivering 30 A380s this year has been made “more challenging” by the wing cracks. First discovered late last year, the hairline cracks on brackets connecting metal ribs to the wing’s interior have since been found in virtually the entire global A380 fleet, including those operated by Qantas.

Airbus says the cracks do not pose a safety risk, but the European air safety regulator has ordered inspections of all A380s. EADS said the 158 million euro first-quarter repair bill would be a one-off expense representing a permanent fix to the problem.

Airbus delivered four of the 525-seat double deckers in the first quarter, bringing the global fleet to 71.

Commercial briefs

* Boeing has confirmed that Indonesian carrier Lion Air has made a commitment to order five 787-8 Dreamliners. The order is expected to be finalised later in the. Lion Air has said that the aircraft will be operated by its full-service subsidiary Batik Air.

Sales

AIRBUS A320 FAMILY: Norwegian has firmed up its order for up to 100 Airbus A320neo aircraft which it committed to in January this year. California based lessor Air Lease Corporation has firmed an order for 36 A320neo Family aircraft. The order includes 20 A321 neos, and options on a further 14 A320neo Family aircraft. The order confirms a Memorandum of Understanding signed between the lessor and Airbus at the Paris Airshow last year.

BOEING 777: Pakistan International Airlines has ordered five 777-300ERs and taken purchase rights on a further five. PIA already operates three 777-300ERs, two -200LRs and four -200ERs.

Military

US flags sale of Growler kits to RAAF

The US Congress has been notified of the possible sale of 12 EA-18G Growler conversion kits to Australia for $1.7 billion, another sign that the RAAF will move ahead with plans to convert half of its F/A-18 Super Hornets to the electronic warfare variant.

In a statement released in late May, the US Defense Security Cooperation Agency said the Australian Government had requested the possible sale of the kits, including 34 AN/ALQ-99F Tactical Jamming System Pods, 22 CN-1717/A Interference Cancellation Systems, 22 R-2674 Joint Tactical Terminal Receiver Systems, 30 LAU-118 Guided Missile Launchers and spare parts, training and support.

In late March, Australia ordered $19 million worth of electronic systems, antennas and other “long-lead” items for the potential Super Hornet-to-Growler conversion, though at the time Defence officials said no decision had been made on whether to move ahead with the conversions. The notification to Congress is a formal part of the US Foreign Military Sales process and doesn’t mean the deal is done, but the writing would increasingly seem to be on the wall.

Australia purchased 12 of its 24 F/A-18 Super Hornets pre-wired for Growler conversion.

The Growler, which is replacing the EA-6B Prowler in US Navy service, has seen action over Afghanistan and Libya. When fitted with ALQ-99 jammer pods, the EA-18G has the ability to either ‘close down’ an entire area over a wide electronic spectrum, or alternatively can target specific spectrums such as those used by mobile phone networks or radio bands. Even without the jammers pods, through its comprehensive receiver suite the Growler can impart additional electronic situational awareness via datalinks to other aircraft such as Super and classic Hornets, Wedgetail AEW&C, or even naval vessels.

Qantas finishes final MRTT conversion

Qantas Defence Services has completed the tanker conversion on its fourth and final Airbus A330 Multi-Role Tanker Transport (MRTT) for the RAAF at its Brisbane centre.

As with the three aircraft before it, the final MRTT, designated the KC-30 in RAAF service, will now head to Spain to complete testing before being handed over to the RAAF. The first KC-30 was converted by Airbus in Spain.

“The conversion work done by Qantas Defence Services here in Brisbane over the past four years is at the cutting edge of aviation engineering,” said head of QDS Scott Harris.

“Our ability to draw on both civil and military expertise and skills was a vital asset in completing the four aircraft.”

QDS will now transition from conversion to providing through-life support to the KC-30 fleet at RAAF Base Amberley, and will maintain the Brisbane facility transition to a maintenance base to support the MRTTs, as well as other civil and military maintenance programs.

Final Wedgetail handed over to RAAF

Boeing delivered the sixth and final Wedgetail Airborne Early Warning & Control (AEW&C) aircraft to the RAAF in late May.

“Delivering the last aircraft into the Wedgetail fleet is the result of hard work, dedication and collaboration by the Boeing-led team and our Australian customer in bringing this powerful air battle management system — the first of its type – to the RAAF,” said Boeing AEW&C vice president Rick Heerdt.

Air Vice-Marshal Chris Deeble, program manager Collins and Wedgetail, Defence Materiel Organisation, congratulated Boeing on the delivery, adding that with the final aircraft in place that 2 Squadron would be able to declare Initial Operating Capability later this year.

Boeing has also delivered all of the supporting ground segments to 2SQN, which is based at RAAF Williamtown in Newcastle.

Based on the 737-700 commercial airliner airframe, the aircraft features an advanced multirole electronically scanned radar and 10 state-of-the-art mission crew consoles that are able to track airborne and maritime targets simultaneously.

First A400M delivery on track for year’s end

First delivery of the A400M airlifter is on track for the end of the year, even though two new problems have been discovered in the aircraft’s troublesome engine gearbox, Airbus Military says.

The more serious of the new problems was a failure of a propeller gearbox on an A400M returning to Europe after its recent visit to Asia. Head of the A400M program Cedric Gautier has told media the problem appears no more critical than issues found with the propeller gearbox last year, “but obviously the fact it has been discovered now has more of an impact on the schedule.”

A second, less serious problem involved an engine on A400M MSN6 experiencing high level vibrations. This is thought to be due to improper balancing of the engine before its installation in the aircraft.

As a consequence, function and reliability testing of the A400M, required prior to issuing full civil EASA type certification for the aircraft, has been slightly delayed, but is still planned to be completed by mid year. Initial certification was awarded in May.

Despite the new problems, Gautier said Airbus is confident it will be able to deliver the first production A400M, MSN7, to the French air force at the end of the year. This aircraft is currently in final assembly and is due to fly in late June or early July. Initial military certification for the aircraft, dubbed initial operating clearance, or IOC, is planned for August or September.

A further three A400Ms are planned to be delivered in 2013, two more for France and one for Turkey. Seven or eight will be delivered in 2014, while full rate production of 2.5 aircraft a month is planned for 2015.

Gautier says ramping up production of the A400M “is a challenge for the supply chain” as it is the same supply chain for Airbus’s commercial aircraft which is building up to meet higher production rates, particularly for the A320 Family, “so we are monitoring the supply chain closely.”

To date five A400M test aircraft have flown 3212 flight hours over 1094 flights. In all 174 are on order for the program’s European partner nations plus Malaysia.

‘Simmo’ awarded Oswald Watt Gold Medal

The Royal Federation of Aero Clubs of Australia has given its highest honour, the Oswald Watt Gold Medal, to RAAF Fighter Combat Instructor Squadron Leader Paul ‘Simmo’ Simmons.

The award is regarded as the highest honour in Australian civil aviation, and recognises the most notable contribution to Australian aviation.
The presentation of the award was made at the Annual Air Force Proficiency and Leadership Awards, at RAAF Base Amberley on May 31. The presentation was made by Marj Davis, president of the Royal Federation of Aero Clubs of Australia, and Chief of Air Force Air Marshal Geoff Brown.
“Paul’s enthusiasm and passion for aviation is evident by his contribution to the Air Force, his compassion and caring in assisting young people at risk discover discipline through flying, and his involvement in general aviation, flying the Sabre at Temora, makes him a very worth recipient,” the RFACA said in a statement.

Previous winners of the Oswald Watt Gold Medal include Sir Charles Kingsford-Smith, Sir Reginald Ansett and Dr Andrew Thomas.

Phantom Eye flies autonomously

Boeing has announced that its Phantom Eye high altitude unmanned airborne system made its first autonomous flight from NASA’s Dryden Flight Research Center at Edwards Air Force Base, California on June 1.

The hydrogen fuelled UAS flew for 28 minutes, climbing to an altitude of 4080 feet and a 62kt cruising speed before landing back at Edwards AFB. Upon landing, the aircraft sustained some damage when the landing gear dug into the lake and broke.

“This day ushers in a new era of persistent Intelligence, Surveillance and Reconnaissance (ISR) where an unmanned aircraft will remain on station for days at a time providing critical information and services,” said Darryl Davis, president of Boeing Phantom Works. “This flight puts Boeing on a path to accomplish another aerospace first – the capability of four days of unrefueled, autonomous flight.”

Phantom Eye is being funded by Boeing and is part of a series of rapid prototyping programs being conducted by the company.

Military briefs

* A US Navy RQ-4A Global Hawk being used for the Broad Area Maritime Surveillance-Demonstration (BAMS-D) program crashed in Maryland on June 11. The unmanned aerial vehicle was on a routine training flight from Naval Air Station Patuxent River when it crashed into a tributary of the Nanticoke River. The Navy said that there were no injuries or property damage as a result of the crash.

* Airbus Military’s A400M tactical airlifter has completed its first set of rough field tests on a grass runway at Cottbus-Drewitz airfield in Germany. Test aircraft Grizzly 2 performed a series of ground runs including maximum-braked rejected takeoffs as part of the tests. Analysis of the data and an examination of the runway are now underway and the aircraft is planned to return for further trials at a later date, Airbus said.

* Victoria-based Lovitt Technologies has won a $1 million contract from Boeing to make wing parts for the global F/A-18 Super Hornet fleet. The contract comes after Lovitt recently won another contract from Boeing to supply machined parts for the V-22 Osprey. The company, which employs about 80 people, specialises in the machining, assembly and testing of aero structures.

Airlines

Union warns of “aviation crisis” as Etihad lifts Virgin stake

Australian Workers’ Union secretary Paul Howes has warned that there could be a “national crisis in aviation” if Virgin Australia’s domestic operations are taken over by its partner Etihad Airways as the Abu Dhabi carrier buys into the airline.

Etihad revealed that it had taken a 4.99 per cent stake in Virgin Australia. “The company remains interested in building a larger stake over time but will only do so after receiving the necessary regulatory approvals,” the airline said in a statement on June 6, after the day earlier revealing that it had acquired a 3.96 per cent stake that had been “built over recent weeks, through purchases on the open market.”

Mr Howes said that Virgin had been setting itself up for foreign acquisition after it split its domestic and international operations earlier this year, and that the domestic airline could be used by Etihad to attack Qantas’s domestic market.

“Unfortunately it could be Australian aviation workers who are the victims of an ego fight between the royal families of the UAE and Dubai,” said Mr Howes told The Daily Telegraph, referring to the battle between Emirates and Etihad, both of which are expanding globally.

Independent Senator Nick Xenophon also added his concern about a possible takeover of Virgin and called on the government to use the national interest test on any further investment by Etihad.

“This latest move has huge implications for Australian aviation and could well trigger a similar move by Qantas, who will no doubt argue for a level playing field,” he said.

“It also could have flow-on effects for international routes operated by Qantas and Virgin even though the purchase relates to the domestic airline.”
As well as the Etihad stake, Virgin Australia’s other major shareholders are Britain’s Virgin plc with a 25.93 per cent stake, and Air New Zealand which has a 19.99 per cent stake.

Pax numbers hit new highs last year

The Bureau of Infrastructure, Transport and Regional Economics has released its annual reports on international and domestic passenger activity, showing that 2011 set new records for both sectors.

The international passenger activity report shows that over the year passenger numbers increased by five per cent on the previous year to 28.12 million. Total seat capacity increased by 6.9 per cent to 38.073 million. Seat utilisation fell by 2.6 percentage points to 74.8 per cent in 2011.

Passengers between China and Australia increased by more than 38 per cent, Indonesia over 22 per cent and Vietnam more than seven per cent.
Qantas Airways had the largest share of the international market with 18.2 per cent followed by Singapore Airlines with 9.0 per cent, Air New Zealand with 8.3 per cent, Emirates with 7.9 per cent and Jetstar with 7.8 per cent.

Domestic passenger numbers were up 0.6 per cent to 54.27 million, as available seats increased by 0.3 per cent to 69.84 million. Industry wide load factor decreased by 0.1 percentage points to 78.9 per cent.

Routes with the largest percentage increases in traffic were representative of the mining boom, with Perth-Newman (up 25.6 per cent), Melbourne-Newcastle (up 15.9 per cent) and Brisbane-Perth (14.9 per cent). Decreases were primarily on routes affected by the grounding of Tiger Airways, including Adelaide-Gold Coast (down 30.5 per cent), Gold Coast-Sydney (down 6.7 per cent), Canberra-Melbourne (down 6.4 per cent).

Melbourne-Sydney remained the busiest domestic route, despite a decrease of 2.2 per cent. This was followed by Brisbane-Sydney and Brisbane-Melbourne.

Joyce takes over as IATA chairman

Qantas CEO Alan Joyce has taken over as chairman of the board of governors of the International Air Transport Association.

“The top priorities, as always, will be safety, security, and sustainability. On top of that, I want to see IATA continue to deliver value to its members by being a strong advocate for the industry,” he said in a statement.

Mr Joyce succeeds KLM CEO Peter Haartman, who concluded his term at the end of the recent IATA AGM in Bejing.

Mr Joyce will hold the position for one year, and will be replaced by Delta Air Lines CEO Richard Anderson at next year’s AGM, which will be held in Cape Town.

Rex loses loyalty

Regional Express has announced that it is shutting down its Rex Flyer loyalty program, blaming the federal government for its demise.

The airline is no longer renewing existing memberships as they come due, and new members are not being accepted. Only accrued points will count towards a reward flight, and all flights will need to be redeemed within six months of the date earned.

“Regional aviation is facing its greatest fight for survival come 1 July 2012 as draconian government measures translate into astronomical cost increases, which for Rex alone amounts to more than $5 million per year,” the company said in an email to Rex Flyer members.

“To put this into perspective, this would be equivalent to the Qantas Group facing a $300 million cost increase, which is more than the $200 million profit the Qantas Group posted last financial year.”

Rex Flyer was a simple program which offered a reward flight for passengers who had completed 10 ‘eligible sector’ flights with the airline.

Virgins to codeshare
Virgin Australia will enter into a codeshare agreement with Virgin America which will further extend its North American network.

The agreement, subject to regulatory approval, will see Virgin Australia add its code to Virgin America flights from Los Angeles to Portland, Washington DC, Boston, Dallas, Chicago, Fort Lauderdale, Philadelphia and Seattle.

“We know that connectivity within the United States is extremely important to Australian travellers, with around 60 per cent of guests travelling on to other destinations following their arrival in the country,” said Virgin Australia group executive alliances, network and yield Merren McArthur.
Virgin Australia says that it expects approval for the codeshare agreement to be granted in the next few months, and that it will move to implement the arrangements as soon as possible.

Virgin Australia also has a comprehensive codeshare arrangement with alliance partner Delta Air Lines.

Long-delayed Auckland-Houston flights cancelled before they begin

Long planned Boeing 787 services between Houston and Auckland have apparently fallen victim to airline arm wrestling over Houston’s airports.
The 787 services, which was to have been operated by United Airlines (after its merger with Continental Airlines), were originally scheduled to commence in 2011 but had already been pushed back due to long delays in 787 production.

In late May, Houston’s city council approved Southwest Airlines’ plans to expand the city’s second airport in order to accommodate international flights. That plan had been opposed by United Continental, which has its biggest hub at Houston’s George Bush International Airport and said competition from the second airport would siphon away passengers and force it to reduce services.

Following the approval of Southwest’s plans, United reportedly sent out a memo to staff saying it would be forced to cut 1,300 jobs and reduce international capacity by 10 per cent.

In a statement, Auckland Airport said it had been advised by United that the cutbacks would “likely impact” the planned Boeing 787 service to Auckland.

“It is very disappointing that this important new service connecting New Zealand to the United States has been caught up in a local Houston dispute over airports,” Auckland Airport CEO Simon Moutter said. “It is equally frustrating that the delays in the delivery of the B787 aircraft have meant that the service was not already well underway by now.”

Mr Moutter added, “We firmly believe that New Zealand needs more air-capacity to North America and more carrier choice, and that Auckland remains an attractive proposition for airlines. We’ll continue to talk to United about options to connect to Auckland, and we will now increase our level of engagement with other carriers to explore a number of viable opportunities. We are confident of converting one of these opportunities in coming months.”

Jetstar pays foreign crew half the legal rate, Fair Work alleges

Australia’s labour umpire claims Jetstar is staffing domestic flights with Thai workers paid as little as half the required rate for Australian air crew.
In litigation filed on Friday in the Federal Court, the Fair Work Ombudsman alleged that Jetstar employed the crew through a pair of staffing companies, Singapore-based Valuair and Thailand-based Tour East. Both companies are partly owned by Jetstar-parent Qantas and both provide staff exclusively to Jetstar, Fair Work said.

“The Fair Work Ombudsman alleges Jetstar Airways was knowingly a party to underpayment conventions,” the labour umpire said in a statement. “It alleges Jetstar rosters the foreign cabin crews onto its Australian domestic flights and is aware of the rates they are being paid.”

The case filed on May 28 covers eight Thai workers, but Fair Work said it was considering taking further action for up to 300 international cabin crew rostered across Jetstar’s domestic network. Fair Work is asking the court to order Valuair and Tour East to pay the eight works more than $7500 in back pay and is also seeking penalties against Jetstar.

The case centres on Fair Work’s contention that cabin crew hired overseas were entitled to rates stipulated under the Aircraft Cabin Crew Award 2010 while working on Australian domestic routes.

The case, which is due for a hearing on August 17, is the second filed this year against Jetstar by the labour umpire. In April, Fair Work took Jetstar to court over allegations the budget carrier paid trainee pilots in Australia under cheaper New Zealand contracts.

Cobham finalises $50m Santos contract extension

Cobham Aviation Services Australia has finalised a contract worth more than $50 million to extend its existing services to the Cooper Basin oil and gas fields for energy company Santos for another six years, writes Chris Milne.

The aviation group will base a 99-seat Avro RJ100 in Adelaide for eight weekly return services to Moomba and Ballera.

The contract will take the relationship with Santos to 2018 for a total of 28 years since Cobham’s predecessor, National Jet Systems, began its fly-in/fly-out (FIFO) work for the energy company in 1990.

Peter Nottage, the chief executive of the Adelaide-based subsidiary of Britain’s aerospace and defence group Cobham Plc, said the contract represented a significant extension of one of the company’s foundation routes.

The RJ100, being acquired from the UK and due into service in the final quarter of the year, would provide an enhanced service for Moomba and Ballera, he said.

The latest acquisition will bring to five the number of RJ100s used by Cobham in Australia, with the others based in Perth for FIFO services for resources companies operating in remote areas in Western Australia.

Meanwhile, Cobham has gained an extension of another FIFO contract, under an $18 million arrangement to continue serving Minara’s nickel mine at Murrin Murrin in Western Australia until the end of 2015.

The aviation group will retain 81-seat BAe 146s on the 900km route, where it began operations for leading nickel producer Minara in 2001.

Cobham claims to be Australia’s premier FIFO operator, with 20 Bombardier Dash 8, BAe 146 and RJ100 aircraft carrying about 130,000 passengers on about 7,500 flights annually.

Apart from Santos, its clients include BHP Billiton, Chevron, Rio Tinto and Minara Resources, as well as Ok Tedi in Papua New Guinea.
Cobham’s Australian arm also operates overnight air freight services for Australian air Express and last October won a new $500 million contract to expand its Boeing 717 services for Qantas regional airline QantasLink.

The regional deal took the 717 fleet from 11 to 13 aircraft and extended the contract until 2018.

Its other work includes the Coastwatch flights around Australia’s northern coast for the Australian Customs and Border Protection Service, using 10 Dash 8 maritime patrol aircraft under a $1 billion, 12-year contract which runs to 2020.

Qantas quits Air Pacific board amid dispute with Fiji junta

Qantas has withdrawn its four directors from the board of Fijian carrier Air Pacific in another sign of deteriorating relations with Fiji’s military government.

Qantas has been trying to sell its 46 per cent stake in the money losing carrier for several years but has been unable to agree on terms, with Fiji’s government claiming Qantas is demanding an unreasonably high price.

In what some saw as a retaliatory move, the Fijian government earlier this year declared that at least two-thirds of Air Pacific’s board must be Fijian citizens, leaving spots for only three foreign directors. Fiji says the move was meant to end Qantas’s effective veto power over Air Pacific operations, a power Qantas says it never had.

“Qantas’s only right under the Articles of Association has been to appoint four directors to the Air Pacific board (where a two-thirds majority must endorse major decisions). At no stage has Qantas had ‘veto rights’ over any aspect of Air Pacific’s management,” the airline said.

“Despite these parameters, the government has made clear its intentions to unilaterally take absolute control of Air Pacific under the new decree. In the circumstances, Qantas believes it is appropriate to remove its four directors.”

Qantas said its four directors would step down immediately. The directors are Qantas International CEO Simon Hickey, QantasLink chief Narendra Kumar, legal counsel Brett Johnson and Charles Harvey.

The airline said it would continue to pursue options to sell its stake in the Air Pacific.

Qantas to flood east coast market in bid to drown Virgin; cuts flights to the Red Centre

Qantas and Jetstar will add nearly 900,000 seats per year to the country’s most competitive east coast routes in a move squarely aimed at rival Virgin Australia.
The increased services will begin to take effect from July 9, when Qantas will add 11 return flight a week between Sydney-Melbourne. Another 11 weekly returns between Sydney-Brisbane will take to the air from August 23.

Jetstar, meanwhile, will add 21 return flights between Sydney-Melbourne from August 16. The budget carrier will also add seven weekly returns between Sydney and Adelaide, Ballina-Byron and the Gold Coast, respectively, as well as three additional return services between Adelaide-Gold Coast and four between Newcastle-Gold Coast.

Qantas CEO Alan Joyce said the increased services would result in an additional 496,000 Jetstar seats and 400,000 Qantas seats per year throughout the east coast “golden triangle.”

“We know from experience that increasing the number of low fares in these markets will stimulate new travel demand,” Joyce said.
The move is widely seen as opening a new front in a burgeoning airline war between Qantas and Virgin Australia, which has stepped up its challenge to Qantas over the past year as it shifts from budget to full-service carrier. By dumping capacity into the country’s busiest routes, Qantas hopes to put the squeeze on its rival, but analysts say it will also likely reduce its own margins in the process. The substantial increases in Jetstar services, meanwhile, put the budget offshoot increasingly in direct competition with the mainline carrier.

Either way, however, in the short term the increased capacity will likely lead to lower fares for the traveling public.

The announcement comes a day after Qantas and Jetstar said they would scale back flights to Darwin and Uluru amid a prolonged slump in overseas tourism.

Qantas will halve weekly services between Uluru-Cairns from 14 to seven from September. Flights between Uluru-Perth will be cut from four per week to two, also in September, and will then be suspended from October 28.

Jetstar will cut flights between Sydney-Darwin from from 11 per week to seven from August 16 and will reduce flights from Darwin to Denpasar (Bali), Indonesia from 11 to eight.

The cuts come as the Australian tourism industry continues to bear the brunt of the high Aussie dollar, with visitors to Kakadu this year down by 11 per cent and visitors to Uluru down 19 per cent.

Etihad borrows a 777 from Virgin Australia

Etihad Airways will wet lease a Boeing 777-300ER from alliance partner Virgin Australia for use on services between Abu Dhabi and Kuala Lampur.
The Gulf carrier said the leased aircraft would make one return trip per week as part of Etihad’s daily 777 services between Abu Dhabi and KL. The leased aircraft is outfitted with 33 flat-bed seats in business class and 328 economy class seats.

Etihad said the agreement built on a ten-year strategic partnership signed with Virgin in 2010.

Rex adds Mildura, Broken Hill services
Regional Express (Rex) has announced a series of new services to Mildura and Broken Hill, including direct flights to Mildura from Adelaide and Sydney.

The new services, which will be introduced from July 9, include:
Six times weekly flights from Adelaide and Sydney to Mildura,
an increaase from two to three return flights each weekday from Sydney to Broken Hill,
and services from Melbourne to Broken Hill via Mildura.
Rex general manager of network strategy Warrick Lodge said the new services were made possible by strong partnerships between the airline, the Mildura and Broken Hill Councils, and the respective airports.

Qantas names new uniform designer

Qantas staff will be getting some new threads after the airline chose Australian designer Martin Grant to refashion its uniforms.
The new uniforms are expected to be ready by 2014 and will replace the existing design by Peter Morrissey, which has been in use since 2003. The Qantas uniform has been redesigned nine times since 1959.
Qantas said Grant was chosen after a rigorous selection process. Born in Melbourne, Grant launched his first fashion line in 1982 and is “internationally recognized for his bespoke tailoring, simplicity of lines and timeless silhouettes,” the airline said in a statement.
“As an Australian, I’m proud to be working with such an iconic Australian brand,” the Paris-based designer said. “It will be wonderful to see the Qantas teams wearing my design across Australia and in cities all over the world.”
Qantas said Grant will begin developing design concepts with a “uniform panel” made up of employees from across the airline. The panel will provide feedback on look, wear and comfort.

MAS takes first A380

Malaysia Airlines (MAS) has taken delivery of its first Airbus A380, becoming the eighth operator of the world’s largest commercial jetliner.
MAS said it would use the aircraft, the first of six A380s it has on order, for non-step services between London and Kuala Lampur three times weekly starting in July. The aircraft is configured to seat 494 passengers across three classes and is powered by Rolls-Royce Trent 900 engines.

“The A380 showcases our latest premium offering in products and services. This will be our flagship aircraft, offering new levels of comfort, luxury and convenience for long haul travel,” said Ahmad Jauhari Yahya, MAS Group chief executive officer. “With the A380 in our fleet, MAS will reinforce its position as one of the world’s preferred premium carriers bringing great Malaysian Hospitality to our customers.”
The A380 is also operated by Qantas, Singapore Airlines, Emirates, Air France, Lufthansa, Korean Air and China Southern Airlines.

Virgin starts Melbourne terminal revamp
Virgin Australia has commenced work on a significant refurbishment of its domestic terminal at Melbourne Airport, which it says will bring the facility into line with the airline’s new branding.

Melbourne has long been a key market for the airline, which recently opened a new corporate Lounge at the airport, and has boosted frequencies to Brisbane, Sydney and Hobart. It also operates its Airbus A330-200s from Melbourne on some services to Perth.

Melbourne Airport says that all works will continue to operate as normal, and it will work closely with Virgin and Regional Express to minimise the impact on passengers while the refurbishment takes place.

IATA sticks to US$3bn profit forecast

IATA says that it still expects the world’s airline industry to record a collective profit of US$3 billion this year, despite pressure from the Eurozone economic crisis.

“The $3.0 billion industry profit forecast has not changed. But almost everything in the equation has,” said IATA CEO and director general Tony Tyler. “Demand has been better than expected, so far this year. And fuel prices are now lower than previously anticipated, but that’s on the expectation of economic weakness ahead. The Eurozone crisis is standing in the way of improved profitability and we continue to face the prospect of a net profit margin of just 0.5 per cent.”

Profits from airlines in the Asia-Pacific region are expected to contribute $2.0 billion to the collective result, despite being revised down by $300 million on the previous forecast. North America is forecast to contribute $1.4 billion to the profit result as yields in the market have improved due to capacity management.

Those profits will be expected offset by a forecast $1.1 billion loss from European carriers as the Eurozone crisis spreads through the year.

China Southern takes off on Canton Route

China Southern Airlines has moved forward with its plans to establish a ‘Canton Route’ between Australia, New Zealand and London.
The inaugural CZ303 service from Guangzhou to London will depart on June 6 at 9am, allowing passengers arriving on services from Australia and New Zealand to connect with a three hour stopover in Guangzhou.

“Australia is one of our most valued international markets and we are thrilled to now be able to link Australians directly with the UK and Europe through our lively hub in southern China,” said China Southern regional general manager Australia/New Zealand Henry He.

Fares on the Canton route start from $1800 return in economy class and $5800 in business class.
China Southern currently flies to Guangzhou from Perth, Brisbane, Sydney, Melbourne and Auckland.

PAL 777 returning to Australia

Philippine Airlines will redeploy its flagship Boeing 777-300ER to Australia beginning on June 30, the airline says.

The Boeing widebody will replace the Airbus A330 and A340 the carrier currently uses on its Melbourne and Sydney routes.

Philippine Airlines took delivery of two new 777s in 2010 and initially operated one of them on its Sydney route before redeploying it to Vancouver and Tokyo. The return to Australia comes as the airline prepares to introduce two more 777s into service.
Philippine’s 777s are configured in a two-class, 370-seat arrangement with 42 seats in business class and 328 in economy. The carrier flies from Sydney and Melbourne to Manila five times weekly excluding Mondays and Thursdays.

Virgin returns to Mt Isa

Virgin Australia has announced plans to resume flights from Brisbane to Mount Isa, raising hopes in the mining centre that competition will lead to lower fares.

Qantas has held a monopoly on the route since Virgin withdrew from Mount Isa in 2001, saying competition from the flying Kangaroo left it unable to fill its seats.

But Virgin is a far larger airline today than it was 10 years ago and is in a considerably better position to compete. The resumption of Mount Isa flights was announced in a joint statement with mining company Xstrata, indicating key industry support for the move.

Mount Isa officials also welcomed the announcement, saying lower fares could make the remote Queensland community a more attractive place to live for workers put off by the high cost of getting there and away.
Virgin said it expected to begin the weekday service in August.

AirAsia takes 100th A320

Low cost airline AirAsia took delivery of its 100th A320 from Airbus in Toulouse on May 25, with the aircraft named in honour of former Airbus and EADS CEO Louis Gallois.

“Air Asia could not have reached this point in our amazing story without the tremendous support we’ve received from Airbus, going back to the start of our relationship in 2004,” AirAsia CEO Tony Fernandes told media. “No airline could have grown like ours without the support of such a great partner as Airbus, who has seen us through both the good and bad times.”

AirAsia has 375 A320/A320neos on order, which when delivered will make it the largest operator of Airbus aircraft in the world.

Airline briefs

* Air Tahiti Nui will add Melbourne and Brisbane to its network from July after concluding a new codeshare agreement with Qantas. The Air Tahiti Nui code will be added to three Qantas services a week between Brisbane and Melbourne and Auckland from July 1, connecting with its services to Papeete. Air Tahiti Nui already codeshares on Qantas services from Sydney to Auckland, while Qantas codeshares on Air Tahiti Nui services between Los Angeles, Papeete and Auckland.

* SriLankan Airlines will become the latest carrier to join the oneworld alliance, with airline to be inducted from late 2013. Cathay Pacific will act as the sponsor airline for SriLankan’s transition into oneworld. The alliance is also in the process of integrating Malaysia Airlines, which has been sponsored by Qantas.

AIRPORTS
Victorian govt puts $1.2m towards Latrobe Airport expansion

The Victorian government will provide more than $1.2 million toward the expansion of Latrobe Regional Airport to support the expansion plans of aircraft maker GippsAero.

Victorian Aviation Minister Gordon Rich-Phillips said the company’s expansion plans, which could create more than 150 new jobs, were dependent on improved airport infrastructure.

“The Coalition Government’s investment will create new jobs and support economic growth in the Latrobe Valley,” Mr Rich-Phillips said.
The expansion of the airport will include a new car park, improved drainage systems, earthworks and runway lighting, and the extension of airport aprons, taxiways and roads.

Archerfield master plan approved

Federal Transport Minister Anthony Albanese has approved Archerfield Airport’s 20 year master plan.

The plan includes realignment of the airport’s grass runways and moving them from flood prone low-lying areas as well as improving the airport’s capability to provide training facilities. Those changes are expected to go ahead over the next five years.

General manager of Archerfield Airport, Corrie Metz, said the plan also made provisions for modern facilities to cater for the anticipated future growth of aviation within South East Queensland and to provide opportunities for warehouse, logistics and manufacturing businesses to relocate their operations to the heart of Brisbane’s much sought after South West Industrial Gateway.

“In line with previous Archerfield Airport Master Plans, the 2011-31 Plan continues to make provisions for the introduction of regular passenger transport (RPT) services should the community want them in the future,” Mr Metz said.
“It is anticipated that aircraft capable of carrying up to 80 passengers may operate from the airport up to 24 times per day (12 arrivals and 12 departures). Archerfield Airport Corporation has made a commitment in the plan to consult further with the public before permitting the introduction of such services.”

Options for improvements to surrounding roads, noise issues, airport protection and potential precinct layouts have also been canvassed within the plan.

French airport to trial phone-based check in

A French airport is launching a trial run of a mobile phone check-in system using SIM card based Near Field Communication technology.
The trial, involving 50 passengers at Toulouse-Blagnac Airport, will use Blackberry smartphones equipped with NFC radios that allow short-range communication with other NFC-enabled devices.

The phone will effectively become the passengers’ boarding pass allowing them access to car parking, the boarding area and a premium passenger lounge. Passengers will receive updates such as changes to their flight times, departure hall or boarding gate.

The trial is a joint effort between SITA, the airport, Blackberry and cellular provider Orange.
SITA Lab director Renaud Irminger said NFC-based technology provided many benefits over other check-in methods.
“It is extremely secure; will work when the device is powered off; does not require the passenger to launch an app or retrieve an SMS or an email; and is not affected by reading problems caused by dirty screens,” Mr Irminger said “Overall, a passenger using an NFC-enabled device can be processed faster than any of the boarding processes available today.”

General Aviation

GippsAero GA10 completes first flight
GippsAero has completed first flight of its new GA10 single turboprop.
Powered by a Rolls-Royce 250 engine and based on GippsAero’s GA8 Airvan, the ten-seat GA10 will be marketed to a variety of roles including passenger and freight transport, air survey and surveillance. GippsAero, which is owned by Indian automaker Mahindra, hopes to begin shipping the GA10 next year.
“The GA10 will bring an entry-level turboprop utility aircraft to the market place enabling operators to make the not inconsiderable step of moving from piston to turboprop power,” GippsAero CEO Terry Miles said. “The projected low purchase price and low operating costs of the GA10, coupled with its great versatility, will offer operators a commercially viable multi role turbo prop aircraft.”
The 20-minute first flight was completed at GippsAero’s home base at Latrobe Regional Airport in May.

WESTFLY to take off in September
The inaugural RA-Aus WESTFLY fly-in will be held on the weekend of September 29-October 1 at White Gum Farm near York in WA.
The event is being billed as a mini NATFLY, with trade and aircraft displays, and underwing camping and accommodation nearby.
For more details, visit www.westfly.com.au.

New birth for Eclipse
Eclipse Aerospace started production of its new Eclipse 550 on June 1, marking a new chapter for the very light jet which pioneered the market.
Based on the existing EA500 design, the 550 model features the same basic fuselage, wing and Pratt & Whitney Canada 610F engines but benefits from a number of cockpit enhancements, including auto-throttles, synthetic vision and a redundant flight management system.
The first E550 is expected to take 12 months to produce and will be delivered in mid-2013, with the company focusing on initial low-rate production. It is expected that output will rise to 50-100 aircraft per year during 2014 dependent on market demand.
The original EA500 first flew in 2002, with the first production example delivered in 2006. Following a series of groundings over safety issues, then producer Eclipse Aviation was forced halt production in 2008 and entered liquidation a year later. Eclipse Aerospace took over a number of assets, and since 2010 has been offering refurbished EA500s to the market, before announcing last year its plans to bring the aircraft back into production as the upgraded E550.

CAE buys Oxford Aviation Academy

Simulator manufacturer and aviation training provider CAE has acquired Oxford Aviation Academy for C$314 million (A$312m), the companies have announced.
CAE said it would continue to operate Oxford’s training facilities, including its flight training academy at Moorabbin Airport in Melbourne, under the name CAE Oxford Aviation Academy.
“This expansion is an important step for CAE toward addressing the global aviation personnel shortage and allows us to offer more customer solutions at more locations,” CAE said in a statement.
With the acquisition, CAE said its training facilities now include 42 locations including a global network of 12 aviation academies.

Business Aviation
NetJets orders Bombardier & Cessna bizjets
Fractional business jet operator NetJets has placed orders for up to 425 new aircraft from Bombardier and Cessna.
Bombardier has announced that NetJets has placed a firm order for 75 Challenger 300s which will be delivered from 2014, and 25 Challenger 605s which will be delivered from 2015. NetJets has also taken options on a further 125 Challenger 300s and 50 Challenger 605s.
The operator has also ordered 25 Citation Lattitude aircraft and 125 options. Deliveries of the Lattitudes will start from 2016.
NetJets is a subsidiary of Warren Buffet’s Berkshire Hathaway, and operates in North America and Europe.

Support
Hawker Pacific and Aviation Australia sign training pact
Aircraft mechanical engineering students studying at Aviation Australia will get the opportunity to gain advanced hands-on experience at Hawker Pacific’s Cairns facility after the two organisations signed a new agreement on June 12.
Under the new arrangements, students undertaking Aviation Australia’s two year International Training Diploma program at its Brisbane campus will relocate to Cairns to undertake 10 weeks of intensive practical experience with Hawker Pacific.
“This concept was trialed with three individuals in 2011 and the success of that program has developed into the agreement that has been reached today,” said Hawker Pacific vice president of aircraft support services Doug Park. “We expect this to be a long and mutually beneficial partnership which we see as a great strategic fit for Hawker Pacific, particularly as we look to continue to grow our organisation internationally.”
A group of 10 engineers from the Royal Oman Police will be the first to go through the program from early August.

AIR SAFETY

Smaller operators easier to get DAMPs

CASA is introducing a more simplified drug and alcohol management processes for smaller aviation organisations not engaged in RPT operations.
Organisations with seven employees or less who are engaged in safety sensitive activities will be able to use a standardised DAMP plan provided by CASA, and will also be able to use an e-learning package to train and educate their employees on their drug and alcohol responsibilities.
“CASA has listened to the concerns of the aviation industry about the impact of drug and alcohol management plans on small organisations and found a solution that is simpler and protects safety,” said director of aviation safety John McCormick.
Organisations eligible to use the simplified system will still be required to report their DAMP performance to CASA every six months and will also be subject to to checks for compliance from the regulator.

Conflicting inputs led to QantasLink stall warning — ATSB
The ATSB has concluded its investigation into a March 1 2011 stickshaker incident on a QantasLink flight, finding that the aircraft’s computer activated the stall warning on the basis of conflicting inputs from the flight crew.
According to the ATSB report, the captain of the Bombardier Dash 8-300 turned off the icing protection switch as the flight approached Sydney from Tamworth but did not inform the first officer, who was piloting the aircraft, and did not turn off the increased reference speed switch. The reference speed switch is used to set the stall warning to activate at a lower angle of attack — and thus a higher speed — during icing conditions.
After the sitckshaker activated the captain took control of the aeroplane and landed safely at Sydney Airport.
The ATSB said the incident resulted from “individual actions or was specific to the occurrence” and did not indicate the need for changes in flight procedures. However, the safety agency said QantasLink subsequently “undertook a number of safety actions to minimise the rise of a rucurrence.”

Alligator Airways still grounded
Kununurra based scenic operator Alligator Airways remains grounded as CASA finalises its investigations into a number of serious safety issues which led to its initial suspension of the operator in early May.
After being initially suspended from operating flights and maintenance on May 3 by CASA, the regulator successfully applied to the Federal Court to extend the grounding until June 4. Under the Civil Aviation Act, CASA has up to an additional five working days to issue a show cause notice if it believes that there is a “serious and imminent risk to air safety” if Alligator were to resume operations.

If the show cause notice is issued, Alligator will be forced to address the concerns in the notice before a decision could be made on whether to vary, suspend or cancel its air operator’s certificate and maintenance certificate of approval. The company will remain grounded through the process, which could take up to a further 33 days.
Alligator was placed into administration on May 30.

Cessna lands on Melbourne freeway
An unopened part of the Peninsula Link freeway near Melbourne became a makeshift airport on the morning of June 11 when the pilot of a Cessna 172 flying from Tyabb was forced down due to thick fog.
50 year old pilot Russell Gray made the emergency landing after a thick fog that blanketed Melbourne made it difficult to navigate. According to Victoria Police the aircraft did not have any mechanical issues and did not pose a hazard to any traffic in the area. A police spokesman added that Gray hoped to refuel the aircraft and take off from the freeway back to Tyabb, subject to approval from CASA. The ATSB has been notified of the incident.
The Peninsula Link is scheduled to open next year.

ATC & Airspace

Airservices hails collaboration
Airservices Australia says that a new industry-wide collaborative approach to air traffic management in Australia has resulted in more efficient operations for airlines.
Collaborative decision making (CDM) sees Airservices, airlines and airports sharing data to maximise use of available airspace and airport capacity, reduce fuel burn and environmental emissions, and enhance safety.
The first stage of the collaborative program has seen aircraft held on the ground when the capacity of their destination airport is expected to be exceeded, helping to reduce en route holding, and subsequently lowering fuel burn on a number of sectors.
Airservices says that already the program has cut an average of five minutes from the transit time on a Melbourne-Sydney flight, which annually equates to a 40,000 tonne reduction in carbon dioxide emissions.
Key to the program has been new software developed by Airbus owned company Metron Aviation in the US.
“Metron Traffic Flow gives our National Operations Centre in Canberra and industry an advanced tool for strategic planning, as well as pre-tactical and tactical management of the air traffic flow within the available airspace and runway capacity,” said Airservices executive general manager air traffic control Jason Harfield.

People

Airservices chief steps down
Airservices Australia chief Greg Russell has resigned after almost seven years with the organisation.
Mr Russell’s resignation was effective on May 16. Airservices chief financial officer Andrew Clark is serving as acting CEO until a permanent replacement is named.
In a statement, Airservices did not provide a reason for Mr Russell’s departure. But the air traffic control operator said it “had been known for some time” that he would be leaving “toward the middle of the year,” and said a search for his replacement had been underway for weeks.
The resignation comes a week before Airservices is set to front a Senate Estimates Committee, leading to speculation that Mr Russell preferred to avoid that experience.
Mr Russell received unwelcome publicity earlier this year after newspaper reports revealed that he had run up a corporate credit card bill of $243,702 between 2007 and 2010, including more than $118,000 on hotel accommodation and $21,000 at a single Canberra restaurant. Airservices defended his credit card use, saying it was appropriate for someone expected to travel internationally and host dinners with senior aviation officials.
But Mr Russell has also been hailed for leading a significant transformation of the organisation, including the rebuilding of its asset base, the introduction of satellite-based technology and the introduction of a joint acquisition process with the Department of Defence.

A/AA names new CEO
Former Qantas and Brisbane Airport executive Jim Carden has been named CEO of fledgling industry peak body Aviation/Aerospace Australia.
A/AA Chair John Duddy said Mr Carden brought a wealth of experience in aviation management that was complemented by experience in government and public affairs.
“Jim’s passion for the industry is widely known, and he has a unique combination of aviation experience, public affairs skills and networks. But he also understands that strategic engagement with stakeholders, governments and international bodies is what is needed to take the Australian industry to the next level,” Mr Duddy said.

ATSB and CASA board members reappointed
Transport Minister Anthony Albanese has announced a series of reappointments at CASA and the ATSB.
Dr Allan Hawke AC has been reappointed as chair of CASA, while fellow board members David Gray, Trevor Danos and Helen Gillies have also agreed to serve further terms. In addition, Noel Hart has been reappointed as a Commissioner of the ATSB.
“The re-appointments provide ongoing certainty for both CASA and the ATSB enabling both bodies to continue to perform their vital roles as the independent aviation safety regulator and national transport safety investigator respectively to the highest standard,” said Minister Albanese.

New members appointed to Airservices board
Transport Minister Anthony Albanese has made four new appointments to the board of Airservices Australia.
Samantha Betzien, Annette Kimmitt, Paul Lucas and Anthony Mathews took up board positions at Airservices on June 6, while David Burden has been re-appointed. They will replace outgoing board members Liza Carver, Air Vice-Marshal Roxley McLennan (Ret’d), and Henk Meertens.
The appointments were announced at the same time that Air Chief Marshal Angus Houston (Ret’d) commenced as the new Chair of the Board, taking over from outgoing Chair David Forsyth.