Preflight

In what is a clear competitive response to the announcement by Virgin Australia it is seeking to grow its regional airline portfolio through the acquisition of Skywest, the additional 717s and Q400s will support Qantas’s defensive position on thinner regional routes, particularly in Western Australia. Qantas’s existing 717 fleet is operated for QantasLink by Cobham. It remains unclear whether the additional 717s will be operated directly by QantasLink or via Cobham.

While announcing the additional aircraft, Qantas said it had cancelled a single 787-8 scheduled for delivery to Jetstar.

The cancellation is unrelated to the current 787 technical issues and grounding, with Qantas saying

This is about using the flexibility in our order arrangements for the 787.

the decision to “amend” the 787 order was taken at the end of 2012. The remaining 14 787-8s will be delivered to Jetstar as planned from mid-2013, with the first of the new aircraft having recently entered production.

A Qantas spokesman told Australian Aviation the single cancellation does not suggest a change to Jetstar’s international growth plans, but reflects the flexibility inherent in the Group’s 787 remaining orders and purchase rights for 50 787s that will allow it to convert options according to market demand.

“Jetstar will continue to grow. This is about using the flexibility in our order arrangements for the 787,” the spokesman said The flexibility of purchase rights will also enable Qantas to switch between 787-8 and 787-9 models, he added, explaining that capacity will be applied wherever demand warranted, domestically and internationally.

Qantas said the fleet changes will not have any material impact on the Group’s planned capital expenditure, suggesting the cancellation of the 787 will help fund the new aircraft (See our report on the 787 elsewhere this issue).

Joyce v Dixon ends in a whimper

Consortium sells out for a handy profit. Julian Green

The consortium led by Sydney financier Mark Carnegie that included former Qantas CEO Geoff Dixon has sold its 1. 5 per cent stake in Qantas for a reported $18 million profit.

The sale would thus seemingly mark an end to months of speculation about what current CEO Alan Joyce saw as a concerted effort by Dixon to undermine and destabilise Qantas’s strategy on market development and fleet plans.

At the height of stand-off Joyce had been fearful of the consortium acquiring enough shares in Qantas to exercise sufficient control over the airline that it would reverse current strategies – strategies the current Qantas leadership sees as fundamental to the airline’s survival internationally.

However, Joyce continues to believe there is a conflict of interest with Dixon retaining the chairmanship of Tourism Australia, thus signalling no change to Qantas’s suspension of funds to joint advertising campaigns.

Qantas had committed $44 million under a long-standing joint sponsorship arrangement with Tourism Australia that was due to continue to July this year. That was called off in November when Joyce told attendees at the National Aviation Press Club: “While that conflict is there, to protect ourselves it’s the only choice we have. It’s not us walking away from tourism. ” Speaking more recently at the Australian Tourism Export Council, Joyce simply affirmed his earlier views: “As far as we’re concerned the conflict didn’t just relate to the shareholders, there is definitely conflict of interest there and that still remains. ” The unfortunate public spat has distracted Joyce and the Qantas leadership team from focusing on core strategies.

It has also undermined to some degree public confidence in the otherwise positive developments at Qantas including its pending consummation of the alliance with Emirates and a renewed Asia strategy, both of which have been sullied publicly by questions over future leadership and strategy.

Joyce played a high stakes game of his own by seeking to flush out Dixon, a risky call given that Qantas has now handed rival airlines Virgin Australia and Etihad an entrée into joint marketing prominence with Tourism Australia. Having provided those competing airlines with the opportunity to forge links with the tourism organisation, which Qantas had enjoyed for many decades, it affords Virgin a stronger visible foothold in overseas markets that were once exclusively the domain of Qantas. Wresting that back will be difficult.

Public confidence in Qantas in recent years has ebbed palpably. The combination of earlier industrial troubles, the potential for strategic change forced by the hands of Dixon and Carnegie, and then Joyce’s response to it have brought Qantas further into a spotlight it would rather shy away from.

Goodbye DJ – Virgin moves to new reservations system

Virgin Australia has implemented a new reservations system

in a move to align it with partner airlines and to increase exposure of its products globally.

The migration to Sabre represents a significant change in the airline’s sales distribution strategy and consolidates its previously disparate domestic and international reservations systems. The move also enhances Virgin Australia’s exposure to travel agents globally, which stands to capture greater revenue especially in the lucrative corporate sector.

From January 14 all Virgin Australia flight numbers were changed to the ‘VA’.

USAF declares F-35 “ready for training”

The US Air Force has declared its 33rd Fighter Wing at Eglin AFB is now ‘ready for training’ on the F-35A Lightning II, following the successful completion of a 65-day operational utility evaluation (OUE) in November.

Air Education and Training Command (AETC) commander Gen Edward Rice Jr said: “The preliminary results provided by the Joint Operational Test Team show the F-35A aircraft and its pilot training and sustainment systems are robust enough to conduct the planned pilot transition and instructor upgrade courses. ” To this end, the AETC has commenced syllabus training in order to meet Air Force-defined requirements from January 7, while a deliberate process is being used that continues to validate the training system’s effectiveness through advancing training blocks as they are made available by the military’s F-35 Program Office (JPO) and Lockheed Martin. The OUE comprised intensive classroom and simulator training along with six flights, for four primary and two backup upgrading student pilots, and was completed 19 days ahead of schedule.

In a brief statement, Lockheed Martin said it “congratulates the USAF…on their successful completion of the OUE. [The] declaration of ‘Ready for Training’ begins a new chapter for the service and our international partners. We are extremely proud to be a member of the Integrated Training Center (ITC) team and we look forward to continued success supporting pilot and maintainer training in 2013 and beyond. ”

100th F-35 in production

Tally mounts of test flights and assembly.

Assembly of the 100th Joint Strike Fighter is underway at Lockheed Martin’s Fort Worth facility. AF-41, an F-35A conventional takeoff and landing aircraft, is one of 88 F-35s currently in production at Fort Worth and Marietta. AF-41 is destined for pilot training at Luke Air Force Base in Arizona.

Meanwhile, in late January a second F-35A Joint Strike Fighter achieved 500 hours of flight testing. AF-1 – the first conventional takeoff and landing test aircraft – reached the milestone in 272 flights.

Soon after, AF-1 completed its final test flight for clean wing flutter. “The testing demonstrated the F-35 is clear of flutter at speeds up to 1. 6 Mach and 700 knots with weapon bay doors open or closed, critical to performing its combat mission,” Lockheed Martin said. “Data collected proves the F-35A flight dynamics maintains a large margin between its designed airspeed and airspeeds where possible flutter could occur. ”

ACCC mixed blessing for Virgin growth plans

ACCC has reservations on Virgin taking Tiger by the tail. Julian Green

Virgin Australia has welcomed approval by the Australian Competition and Consumer Commission (ACCC) for the outright acquisition of Western Australia-based regional airline Skywest.

Virgin Australia’s CEO John Borghetti said the ACCC clearance was an important step in the airline’s growth plans.

“This acquisition will enable us to accelerate our expansion in the high growth fly-in/fly-out (FIFO) and regional markets, increasing competition in these important segments and bringing new benefits to customers. It will also be very positive for business and tourism, particularly in Western Australia and regional Australia, as we will invest to support the growth of Skywest,” Borghetti added.

Under the arrangement Skywest would be branded Virgin Australia, but would retain its own operator’s certificate and management team.

The proposed acquisition remains subject to Foreign Investment Review Board approval, as well as that of Skywest shareholders and the Singapore High Court.

However, the news has not been so warmly welcomed about the ACCC’s continuing concern about the proposed majority acquisition of low-cost Tiger Airways.

In a strikingly brief statement Virgin Australia simply said it would study the report issued by the ACCC that expressed concern about the potential for competitive dilution if Virgin Australia acquired Tiger.

In a statement of issues the ACCC said it remains unconvinced that it would not have a detrimental impact on competition.

“The ACCC’s concerns relate to the risk of muted competition following the reduction in the number of airline groups within Australia from three to two (excluding regional airlines), and the loss of Tiger Australia as an independently owned discount competitor,” ACCC chairman Rod Sims said.

“This potential reduction in competition arises as a result of the increased ability on the part of Qantas/Jetstar and Virgin Australia/ Tiger Australia to coordinate their activities once Tiger Australia is no longer operating as an independent low-cost carrier,” he added.

Sims also noted that proposals to expand Tiger’s fleet remain an influential factor.

“Another relevant factor is that the merger parties have publicly announced an intention to expand Tiger Australia’s fleet from its current 11 aircraft to 35 aircraft by 2018,” Sims said.

“If the ACCC was satisfied that a significant increase in capacity would take place, this would also diminish the prospect of any increase in coordinated conduct in the market. ” In response to the ACCC’s views, Virgin Australia merely said it would study the statement and prepare a response, adding in a statement to the Australian Securities Exchange: “Virgin Australia strongly believes the proposed acquisition will increase competition in the market to the benefit of Australian consumers. ” Both acquisitions are fundamental to Virgin Australia’s strategy to expand its operations into every sphere of domestic and regional aviation in Australia, in effect to counter the dominance of Qantas in each of those areas.

In November at the Virgin Australia annual general meeting Borghetti signalled “game on” to Qantas, an affirmation less than a month before the general meeting of the airline’s surprise announcement of its ambition to seek control of Skywest and Tiger Airways.

Borghetti said of the Tiger acquisition: “This transaction enables Virgin Australia to access the budget market and enables Tiger Australia to expedite its growth, providing greater competition to this important market segment.

The ACCC’s potential block to this strategy would disable Virgin’s entry to the low-cost market, an area Borghetti deliberately drove Virgin away from, dispensing with Virgin Blue and favouring a product more directly competitive with Qantas mainline operations.

While there is little benefit in speculating whether Virgin would accede to a lower shareholding or ditch its plan altogether, an inability for Virgin to enter the low-cost market would render it impotent in a key growth market.

A final decision from the ACCC on the Tiger acquisition is expected on March 14.

Qantas- Emirates begin tie-up

ACCC gives interim approval but excludes NZ. Julian Green

As the Australian Competition and Consumer Commission (ACCC) opines on a final decision that would allow Qantas and Emirates to begin operation of their much-publicised partnership on March 31, the airlines are putting in place some key elements of the alliance made possible by an interim approval by the regulator.

On January 17 the ACCC granted interim approval to the partner airlines to prepare a joint sales and pricing strategy, joint marketing, system integration, customer handling, scheduling and capacity management.

Prior to the ACCC decision Qantas and Emirates had already begun some work in areas that did not require the regulator’s approval, such as IT, frequent flyer programs and establishing an operational base for Qantas in Dubai.

“The ACCC is allowing Qantas and Emirates to start implementing their alliance because of the long lead time required to market and sell tickets before the commencement of long-haul services,” ACCC chairman Rod Sims said.

Five days later the airlines started selling on each other’s services and within a brief period afterward Qantas and Emirates customers were being barraged with a range of new products and services.

Two of the most significant improvements have been implemented by Emirates. In late January Dubai Airport opened a new Emirates-only terminal concourse configured for the exclusive use of A380s. Qantas will operate from the new terminal, which boasts 20 additional gates and sufficient capacity to take the airport to a capacity of 75 million passengers a year.

Emirates has also introduced a platinum tier for frequent flyers, mirroring Qantas, in an effort to better align the two airlines’ products.

Both airlines are keen to assuage any lingering concern the ACCC may have about detriment to competition.

“Under interim authorisation, the applicants will be able to commence activities that will enhance the product and service offerings to Qantas and Emirates customers,” Sims said.

“In its draft determination issued in December, the ACCC formed the preliminary view, after conducting a detailed assessment, that the public benefits resulting from the alliance are likely to outweigh the public detriment which may result through its effect on competition where Qantas and Emirates offer overlapping services,” he added. “In most regions, this detriment is likely to be mitigated by a number of factors, including continued competition from a number of established airlines. ” The ACCC continues to consider trans-Tasman co-operation between the airlines.

“The ACCC raised concerns about the potential impact of the alliance on the overlapping routes between Australia and New Zealand. The ACCC is concerned that the alliance may have an increased ability and incentive to reduce or limit growth in its capacity in order to raise airfares. Therefore, the ACCC is granting interim authorisation on the condition that the applicants do not engage in the conduct for which authorisation is sought in relation to services between Australia and New Zealand,” Sims said.

In a statement welcoming the ACCC decision, Qantas acknowledged the exclusion of New Zealand.

The ACCC said it expects to make a final decision in March prior to the planned implementation of the alliance on March 31.

China’s new airlifter revealed

Pick-and-mix Y-20 combines elements of Western and Russian designs. Andrew McLaughlin

For the third time in as many years China has unveiled a new military aircraft which has taken many observers in the west by surprise.

First spotted on the ground by observers in early December 2012, a Xi’an Y-20 was photographed alongside other aircraft of known dimensions by the private GeoEye-1 satellite on the tarmac at Xi’an’s Yanliang test airfield on December 20, leading defence journalists and the blogosphere to speculate on the aircraft’s size, weight, purpose and how far along its development path it was.

The Chinese state-run Xinhua news agency confirmed the development of the aircraft on December 28, saying: “

We are developing (a) large transport aircraft on our own to improve the capability of air transport.

The advanced long-range carrier is being developed to serve the military modernisation drive, as well as to meet demands in disaster relief work and humanitarian aid in emergency situations. ” Developed by Xi’an, which is part of the Aviation Industry Corporation of China (AVIC), the Y-20 took to the air for the first time on January 26, an event that was covered by Chinese state television and, unusually, distributed widely further afield.

Flight International first revealed plans that China’s Xi’an Aircraft Corp was developing a four-jet freighter sized between a C-130 and a C-17 back in 2005. Since then models and drawings of a C-17-like large transport aircraft began appearing at trade shows in China and the program was publicly confirmed in November of that year by the president of AVIC. Since that time, various official and unofficial artists’ impressions have generally followed a common theme – that of a four-engine, widebody, high-wing, T-tail transport with podded undercarriage and a rear loading ramp.

On face value, the aircraft appears to fall in the medium to large class currently occupied by the Ilyushin Il-76, the Antonov An-70 and the Airbus Military A400M, but is smaller than a C-17.

Indeed, the Y-20 appears to share many common design elements with some of these other aircraft, including the An-70s forward fuselage, the Il-76’s wing, engine installation and undercarriage pods and the C-17’s tail and horizontal stabiliser configuration. The resemblance to the An-70 and Il-76 is particularly understandable considering that Ukrainian and Russian manufacturers are reported to have assisted AVIC with the Y-20’s development.

It is also worth noting a California jury in July convicted a former Chinese-born Boeing employee to 15 years in jail for industrial espionage for selling information to China about, among other things, the C-17.

Reports from China indicate the aircraft is powered by the same D-30KP-2 engines that power the Il-76 and which are also used on China’s H-6 bomber, a developed version of the Soviet-era Tupelov Tu-16. The Chinese government ordered some 184 D-30KP-2s from Russia in 2011 and deliveries of these commenced in September last year.

Estimates of the aircraft’s dimensions show a wingspan of about 45m, a length of 47m, a fuselage width of about 5. 5m, a payload of about 60 tonnes, and a maximum takeoff weight of about 220 tonnes. By comparison, the C-17 has a MTOW of 293 tonnes, and the A400M 157 tonnes. The aircraft features a six-bogey main landing gear each with two wheels, and triple-slotted trailing edge and single leading edge flaps, both of which suggest it potentially has good soft and short field performance.

Chinese media has mainly focused on the humanitarian aspect of possible future use of the Y-20 and this is not unreasonable considering the devastating earthquakes and floods that country has experienced in recent years. Further afield, China has been actively cultivating alliances with developing nations in the Pacific and in Africa, and the political capital a large strategic transport packed full of humanitarian supplies carries in the event of a natural disaster should not be underestimated.

But it’s still early days for the Y-20. Analysts almost universally agree that production aircraft will need to be fitted with newer generation high-bypass ratio turbofan engines – possibly the indigenous WS-18 or the CJ-1000A which is being developed for the C-919 airliner – in order to realise its potential as a strategic airlifter.

Others have speculated the Y-20 design may eventually be adapted to carry an AWACS-like radar antenna above its rear fuselage like the Beriev A-50 version of the Il-76 and that it may also be equipped for inflight refuelling as some artist impressions have suggested. We are developing (a) large transport aircraft on our own to improve the capability of air transport. Sydney

Airport calls for more flexibility

Airport CEO calls for curfew commonsense, including more shoulder slots.

Sydney Airport CEO Kerrie Mather has called for more flexibility in the curfew to lift productivity and better manage delays in the event of unavoidable conditions.

The comments were instigated by adverse weather in the aftermath of late January’s tropical storm that caused widespread severe flooding in Queensland, with delayed flights unable to land or depart at Sydney causing disruption to thousands of travellers, Mather claimed.

“Last night’s weather was a prime example of the current inflexible curfew restrictions causing thousands of travellers to be diverted interstate at significant cost and inconvenience, simply because some weather-impacted flights were not permitted to land in Sydney after 11pm,” Mather contested.

The relaxation of federal government-imposed artificial limitations on capacity have been discussed in a paper published by the Tourism and Transport Forum (TTF) that demonstrates the benefits small changes to restrictions could bring.

“Permitting just 11 more services during the shoulder period each week would double the number of slots over the year and would have minimal impact on residents if these slots were restricted to quieter new-generation aircraft like the A380,” Mather said.

“We also support the TTF’s call for a more sensible way of administering the cap. Because it is measured in 15-minute blocks, delays often result as air traffic control is required to hold services on the ground because the cap has been exceeded. ” The TTF and Sydney Airport argue the economic stimulus generated by the additional movements would be material.

“A typical international jumbo service contributes $120 million a year to the economy and creates 1,500 full-time jobs, while an A380 service from China would contribute $388 million a year to the economy and create 5,000 full-time jobs,” Mather concluded.

Cirrus increases SR-series payload

Cirrus Aircraft, manufacturer of the popular SR22 and SR22T sports aircraft, has substantially increased the aircrafts’ certified gross weight to 1,633kg. The change allows greater operational flexibility, extra payload capacity and fuel capacity.

Now standard for 2013 models, known as Generation 5 aircraft, the payload enhancement offers a range of 700 nautical miles.

Executive vice president sales and marketing at Cirrus Aircraft Todd Simmons said: “We are very excited to announce our fifth generation airplane, the 2013 Cirrus SR22 and SR22T, and deliver even more mission flexibility in the most preferred airplane in general aviation.

“For 2013 Cirrus customers can also expect the new Generation 5 Vision-inspired Special Edition SR22T,” Simmons added. “This special edition aircraft, inspired by the upcoming Cirrus Vision SF50 Personal Jet and modern automotive styling – sports a striking new exterior ramp presence and pays tribute to the unique look and feel of the highly anticipated Cirrus Jet. ” Deliveries of the 2013 SR22 and SR22T models are already underway.

Airbus announces strong results

Record deliveries but concedes to Boeing for top position.

In a buoyant year for Airbus, the European manufacturer delivered a record 588 aircraft to 89 customers, including 17 new customers, during 2012. The number of deliveries was 10 per cent higher than the record set in 2011. Some 30 A380s were delivered during the year.

Airbus also massively exceeded its target for orders, having won 914 gross orders – 264 more than the annual target of 650. Included in the orders were 305 for the current A320 models and 478 for the A320neo, 82 A330/A340 family, 40 A350s and nine A380s. Airbus now has a backlog of 4,682 aircraft valued at more than $600 billion.

The orders for commercial aircraft, however, were still not enough for Airbus to retain its status at the top of the delivery table, having ceded the position to Boeing, which delivered 601 commercial aircraft duringt 2012.

Meanwhile Airbus Military delivered 29 aircraft in 2012 including five A330 MRTTs, while receiving orders for 32 light transport aircraft. The A400M program continued during the year with the completion of 300 hours of flight testing. The aircraft is expected to achieve certification by the end of March with the first deliveries during the second quarter.

“Looking back over 2012, we can proudly say it was a fantastic year,” said Fabrice Bregier, Airbus President and CEO. “We delivered a record number of aircraft which highlights our increasing efficiency, and the market again demonstrated its confidence in all our products. In 2012, we delivered the first ‘Sharklet’ aircraft, and with a commanding lead in the single aisle market, the dividends from our strategic decision to invest in the kind of innovation which generates value for our customers, is paying off. We are keeping our production rates at a manageable pace, which is good for our supply chain, and bodes well for our long term profitability and bright future. ” Airbus said the list price of its commercial aircraft had been increased by 3. 6 per cent, taking an A320neo to US$100. 2 million and the A380 to US$403. 9 million.

Hawker Beechcraft out of Chapter 11

Back to the future with the re-emergence of Beechcraft.

US bankruptcy court approval for the reorganisation of Hawker Beechcraft has paved the way for the company to emerge from Chapter 11.

As part of the reorganisation, the company will be renamed Beechcraft Corporation and will implement a plan that concentrates solely on turboprop, piston, special mission and training aircraft, as well as profitable maintenance, repair and refurbishment businesses.

Beechcraft, which entered bankruptcy in May 2012, is close to finalising arrangements for exit financing, which includes US$600 million in loans and a revolving line of credit. The company has engaged underwriters for this key aspects of Beechcraft’s emergence from Chapter 11, which allows the repayment of debtor-in-possession liabilities, pay other settlements and fund ongoing operations in the early stages post-bankruptcy.

The arrangements also remove US$2. 5 billion of debt from the new company’s books.

Current Hawker Beechcraft CEO Robert Miller said the ruling “marks the final significant step in the restructuring process” and that recapitalisation and “dramatically reduced debt” would enable the company to compete vigorously in its newly defined market.

However, the removal of the Hawker jet lines from the new business creates uncertainty around the ongoing sales and support structure for Beechjet and Hawker aircraft. The announcement detailing the company’s exit from Chapter 11 was silent on the future of the jet products and ongoing support to the worldwide fleet. It is considered likely, however, that manufacture of the jets will cease and support services be either sustained for a period or sold off.

Miller will step down as CEO and will be replaced by current chairman Bill Boisture.

Production

ATR has recorded its highest annual turnover – US$1. 44 billion – while delivering 64 aircraft during 2012. The deliveries were 18 per cent up on the previous year. A total of 115 aircraft sales were achieved during the year comprising 74 firm orders and 41 options.

737NG production has increased to 38 aircraft a month. Over the last two years 737 production has increased 20 per cent and in 2014 will increase again to 42 per month. The new production rate has been made possible by the automated assembly of wing spars, the first step in the manufacturing of an aircraft.

AIRBUS has signed contracts with Air Lease Corporation (ALC) for 25 A350s, comprising 20 A350-900s and five A350-1000s. ALC has also purchased options for an additional five A350-1000s and placed an order for 14 A320neo jets. Los Angeles-based ALC becomes the 35th customer for the A350 and brings total orders for the type to 617.

BOMBARDIER delivered 233 aircraft during 2012, down on its 245 deliveries the year before. However, the company received orders for 481 aircraft in 2012, eclipsing the 245 for the prior year.

CESSNA’S Grand Caravan EX has earned type certification while the manufacturer’s new Citation M2 has entered initial production. The six-seat M2 executive jet, a development of the CJ1+, has begun initial production ahead of certification in the second quarter this year.

Hercs mark 10 years in Middle East

A decade of duty for RAAF C-130s.

The RAAF marked 10 continuous years of Hercules deployments to the Middle East on February 11.

Two C-130H aircraft arrived in the Middle East on February 11 2003 to support Operation Bastille in the Persian Gulf. Since then RAAF C-130Hs and C-130Js have transported 220,000 passengers and some 43,000 tonnes of cargo in the Middle East Area of Operations.

More than 1,000 RAAF personnel have been deployed in support of the C-130 detachment over the 10 years. Today 50 personnel support two C-130Js based at Al Minhad Air Base in the United Arab Emirates.

Commending the RAAF, the government acknowledged three milestone missions flown by Hercules crews during the detachment. In April 2003 an RAAF C-130H became the first coalition aircraft to land at Al Asad Air Base following its capture by Australian Special Forces units. In September 2006 Hercules aircraft from the detachment were used to evacuate Australian citizens from Cyprus to Turkey following the outbreak of hostilities in Lebanon, while in 2010 RAAF Hercules participated in Operation Pakistan Assist II in response to floods in that country.

Meanwhile, the first former RAAF C-130H is being prepared for transfer to the Indonesian air force.

Photographed at RAAF Base Richmond, A97-006 was seen (above) departing the base on a test flight following deep-level maintenance. It is believed -006 was the last aircraft to go through deep level maintenance under the existing contract between Defence and QDS.

The aircraft was subsequently flown to Townsville for repainting. A Defence spokesperson told Australian Aviation: “A97-006 is expected to be the first aircraft to be transferred to Indonesia, following completion of deeper level maintenance servicing and other activities, as well as finalisation of transfer arrangements between the governments of Australian and Indonesia. ”

Air Force Briefs

RAAF Hawks grounded briefly

The RAAF briefly grounded its Hawk lead-in fighter trainer aircraft on February 4 following an engine incident.

The aircraft were suspended from flying as a safety precaution after the pilot of a Hawk operating a routine training flight from RAAF Base Pearce “noticed an engine warning light”. According to a Defence statement “the pilot carried out the required emergency checklist actions and landed the aircraft safely at a nearby airfield. ” “As a safety precaution, Air Force immediately placed a temporary suspension on all Hawk 127 aircraft flying operations while an investigation occurred. The suspension was lifted on February 11 and the Hawk 127 returned to normal flying operations. ”

New defence aviation partnership formed

The Department of Defence, Virgin Australia and Qantas have formed a new partnership to coordinate strategic aviation issues of national interest.

During the first meeting of the new forum, Defence shared issues of common interest with the commercial partners, focusing on future national aviation developments, emerging technologies, crisis planning and security.

“This strategic arrangement sets up an important forum for high-level discussion on many areas in which Defence and the airlines can work together in the national interest. Contingency planning and coordination will be an important element of this forum,” Vice Chief of the Defence Force Air Marshal Mark Binskin said.

The forum does not replace separate commercial agreements between the parties.

Taranis is capable of supersonic speeds and carries a payload of missiles and laser-guided bombs.

God of thunder descends on Australia

BAE’s UCAS demonstrator to undergo flight trials at Woomera.

Australia will host test flights of BAE System’s Taranis unmanned combat aircraft technology demonstrator Taranis.

According to the UK’s Telegraph newspaper, the $195 million UCAS will be tested in outback areas of Australia – mostly likely from Woomera, South Australia later this year, flying simulated missions to identify potential targets while evading threats.

First revealed in July 2010 and named after the Celtic God of thunder, the as yet unflown Taranis is designed to be capable of supersonic speeds and carry a payload of missiles and laser-guided bombs.

The Telegraph reported a spokesman for the UK Ministry of Defence (MoD) as saying: “Taranis is the first of its kind in the UK. Unmanned air vehicles play an important role on operations, helping to reduce the risks faced by military personnel on the front line. Forthcoming Taranis flight trials will provide MoD and industry with further information about the potential capabilities of Unmanned Combat Air Systems. ” BAE Systems’ Melbourne facility, opened in April 2010, has been at the centre of drone development.

Airports report solid gains in 2012

Major airports experienced solid passenger growth during 2012 on the back of increasing demand in the resources sector and improved international traffic.

Melbourne Airport achieved five per cent growth to reach a total of 29,297,387 passengers. The airport’s CEO Chris Woodruff attributed the increase to sustained growth in international markets including China, Hong Kong, New Zealand, India, Sri Lanka and Vietnam, which contributed to a six per cent increase in total international traffic. Domestic traffic saw a five per cent rise based on increased capacity, to 22. 3 million passengers.

Brisbane Airport achieved 4. 5 per cent growth, recording 21. 5 million passengers during 2012. The majority of the growth was in domestic traffic – up five per cent – based primarily on the resources sector. Brisbane Airport Corporation CEO Julieanne Alroe said: “With the resources sector still heavily contributing to demand, seven of the top 10 fastest growing city pairs were intrastate routes with total intrastate traffic volumes growing at three times that of total interstate traffic volumes. ” International volumes at Brisbane increased by a modest 1. 4 per cent.

Sydney Airport recorded 3. 6 per cent growth, to serve 36. 9 million passengers during the year. International traffic increased 5. 3 per cent while domestic throughput grew by 2. 7 per cent.

The results are in for 2012

Trends and anomalies as industry shows signs of rebound. Julian Green

As the world’s economy began to improve modestly towards the end of 2012, trends in the global airline industry were emerging that gave clear indications of what can be expected in 2013 – all things being equal. Of course, they rarely are equal in the airline industry, but as figures released by the Centre for Aviation show, what is clear from the last 12 months is that the strong get stronger and the weak consider their options.

Airlines

The merger of Continental and United has, as expected, created the world’s largest airline. By ranking of capacity, coming in at number one at the end of 2012 was United, followed by another airline having concluded consolidation – Delta.

The world’s third largest airline – Emirates – grew capacity by 18. 4 per cent and is the only non-US airline in the top five. Fourth and fifth positions are occupied by American Airlines and Southwest respectively.

Australian airlines faced mixed fortunes. Qantas recoiled 5. 3 per cent and dropped two places in the capacity rankings from 14th to now 16th. Jetstar, conversely, grew by 16. 7 per cent to rise four places to 42nd, one place ahead of Air New Zealand. Virgin Australia joined the top 50 airlines, having recorded 18. 3 per cent growth during 2012 to come in at 49th.

In other regions some interesting trends emerged during the year. Of particular interest was the rise of Chinese carriers and the faltering of the Indian market, the latter a complete contrast to previous years of rampant growth.

China Southern is China’s largest airline by capacity offered, growing by 11 per cent and coming in at ninth position, the airline’s second year in the top 10. Air China also enjoyed 11 per cent growth in 2012, seeing it climb to become the world’s 12th largest carrier, while China Eastern grew by 10. 2 per cent to rise one position to 14th.

Other airlines in rapid ascendance were Turkish Airlines (+24 per cent), Qatar Airways (+8. 7 per cent), ANA (+24. 3 per cent), Aeroflot (+15. 9 per cent), Etihad (+14. 8 per cent) and low-cost carrier Lion Airlines (+34. 6 per cent).

Indian airlines, however, reversed previous years’ gains. Gol and Jet Airways receded 9. 3 and 11 per cent respectively, the latter dropping seven places to 46th. Air India reduced capacity by 3. 2 per cent.

Other airlines on a rapid descent during 2012 were Cathay Pacific (-8. 2 per cent), Iberia (-12. 7 per cent) and Ryanair (-7. 2 per cent).

Low cost airlines have a 22. 3 per cent share of the global market, down very marginally on the previous years’ share.

More than 50 airlines ceased operating or were merged during 2012, including some big names such as bmi in the UK, Malev and Spanair in Europe, while locally Air Australia and Norfolk Air disappeared from the flight boards.

Alliances

As membership of airline alliances continues to grow, the first real signs emerged during the year that bilateral arrangements between airlines are becoming more meaningful to revenue than the marketing benefits offered by branded global alliances.

While the figures for the three global alliances possibly belie the growing relevance of bilaterals – oneworld up 3. 5 per cent, STAR up 6. 3 per cent and SkyTeam up 10. 2 per cent – it is what was happening outside the alliance groupings that was most telling.

The creation of a partnership between Emirates and Qantas was the clearest local indication that some steam may be coming out of oneworld’s global leverage, something that may be tested further during 2013 as Emirates seeks to court American Airlines in an expansion of its arrangements with Qantas to create a true round-the-world product.

Etihad also remains staunchly outside a global alliance, but works with airlines that are members of alliance groupings either under bilateral agreements or equity arrangements such as with Virgin Australia and airberlin. Etihad’s capacity growth of nearly 15 per cent has come from the success of those bilateral partnerships as much as it has from organic growth, something the Middle East carriers have been supreme at achieving in recent years.

Qatar Airways has bucked the cherished independence of Middle East carriers, though, to join the ranks of oneworld.

Airports

Reflecting the continued strong growth of its airlines, China’s Beijing now is the world’s second busiest airport when ranked by the number of available seats. While the world’s number one airport remains Atlanta, just 10,000 seats a week separate it from Beijing. Trends indicate Atlanta will be toppled decisively during 2013.

Third, fourth and fifth positions are occupied by Tokyo (Haneda), Heathrow and Dubai respectively, with Dubai expected to take fourth position during the coming year.

Sydney ranked 26th in the world, ahead of Amsterdam and below San Francisco, while Melbourne took 44th position just ahead of Shenzhen and Munich.

Airline rankings in this article are measured by available seat kilometres (ASKs).

Boeing announces US$3. 9 billion profit

The Boeing Company has announced a reduced net profit of US$3. 9 billion in 2012 compared with the previous year’s US$4. 02 billion, despite an 18. 9 per cent rise in revenue to US$81. 7 billion. The reduced margin was attributable to increased tax liabilities.

Boeing Commercial received net orders worth US$70 billion during 2012, bringing to US$319 billion its total order backlog for some 4,400 aircraft. Boeing Defense received orders valued at US$44 billion during the year.

While announcing the annual results, Boeing chairman and CEO Jim McNerney said the company continues production of the 787 but has suspended deliveries of the aircraft pending the outcome of the current series of investigations by the NTSB and other airworthiness authorities.

“For 2013 our first order of business obviously is getting the 787 back in service,” McNerney said. PERFORMANCEPerformance

On time – most of the time

Australia’s airlines averaged on-time performance of 80. 4 per cent for departures and 77. 9 per cent for arrivals during December 2012.

According to statistics compiled and released by the Bureau of Infrastructure, Transport and Regional Economics (BITRE), the long-term average on-time performance for all routes since reporting began in 2003 is 83. 9 per cent for departures and 82. 4 per cent for arrivals. ‘On-time’ refers to an aircraft movement operating within 15 minutes of its scheduled time.

Qantas and Virgin Australia were equal leaders for on-time departures during December at 82. 1 per cent, followed by Tiger at 81. 1 per cent and Jetstar at 72. 9 per cent. Of the regional operators, Virgin Australia led at 86 per cent while Skywest recorded the lowest on-time performance at 76. 4 per cent.

Arrival performance was led by Qantas, which recorded 79. 9 per cent, followed by Tiger (78. 7 per cent), Virgin Australia (78. 3 per cent) and Jetstar (74 per cent). Regional Express topped arrival performance at 82. 9 per cent, while QantasLink came in at 74. 8 per cent.

Qantas recorded the highest cancellation rate at 2. 1 per cent and Regional Express the lowest at 0. 4 per cent.

Lockheed Martin launches ATM platform

SkyLine Enterprise pitched at major Airservices/ADF contract.

Lockheed Martin will offer its new SkyLine Enterprise air traffic management (ATM) platform for the new oneSky Australia air traffic system being procured by Airservices and the Department of Defence.

oneSky, which seeks to combine civil and military operations into a single air traffic management solution, is planned to be fully operational by 2020.

The components of SkyLine Enterprise offer a flexible array of air traffic management capabilities that were developed with Australian firm Adacel. The tools are supported by a flight data processing system that enables airspace users to fly preferred routes.

The system also complements the move by Airservices to improve airspace efficiency and airline on-time performance through collaborative decision-making and dynamic modelling. It is also compatible with ADS-B processing technology.

SkyLine Enterprise uses software operating at 38 en route centres, 121 approach control facilities and four oceanic and procedural facilities that together represent around 60 per cent of all air traffic.

Announcing the offering of the system to the oneSky Australia procurement, Lockheed Martin vice president transportation solutions Sandy Samuel said: “After more than 50 years of air traffic management experience, Lockheed Martin begins the next chapter by making SkyLine Enterprise available to the Australian and international air traffic management communities.

“SkyLine Enterprise is a cost-effective and comprehensive air traffic management solution that enhances safety, reduces flight delays, saves fuel and reduces environmental impacts. ”

PurePower for next-gen E-Jets

Embraer has selected Pratt & Whitney as its engine supplier for a second generation of its E-Jet airliner family.

Using the PurePower PW1700G and PW1900G geared turbofans, Embraer believes it will achieve double-digit fuel efficiencies when combined with improvements to wing design and systems.

While the program for a second generation of Embraer’s popular 70- to 120-seat jets is yet to be launched, the Brazilian manufacturer says the aircraft could enter service during 2018.

Pratt & Whitney continues to conduct tests on its geared engine design, which will also power Bombardier’s CSeries and Mitsubishi’s MRJ and is one of two powerplant offerings on the Airbus A320neo series, to date accumulating 4,200 hours and 12,400 cycles.

More than 900 E-Jets are in service with 63 customers in 43 countries.