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The vision thing

Virgin Australia’s John Borghetti’s vision for 2017

There are a lot of things that can keep an airline executive up at night, from fuel prices to weak demand to safety threats.

There is no easy formula, there is no textbook. john borghetti

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John Borghetti, as chief executive of Virgin Australia and in charge of Australia’s second largest airline group, worries about all those things. And more, probably.

However, he nominates the welfare of the airline’s staff as his number one concern.

“If you said to me, ‘John you have got a million problems.

What is the one thing you worryabout the most?’ It is our people,” Borghetti says in an interview with Australian Aviation following the airline’s full year results presentation.

“I’m not saying it as a line, I mean it. ” Virgin’s workforce has grown from about 6,000 when Borghetti took over as chief executive in 2010 to a little over 10,000 today.

They are the ones who have had to execute first his Game Change strategy that transformed the airline from Virgin Blue to Virgin Australia, dealing with new products, newoperating procedures and in many ways a new mindset as Borghetti moves the carrier upmarket.

And these same men and women will again be called upon to deliver on Borghetti’s new platform as the airline charts a new course for growth and, hopefully, profitability over the next three years. Dubbed Virgin Vision 2017, the airline plans to grow its frequent flyer base to seven million members from 4. 5 million currently, set up a new freight business, bring Tigerair Australia to profitability and lift revenue from its charter operation to $200 million.

This new three-year plan was unveiled as Borghetti revealed Virgin had lost $355 million in 2013/14, more than three times more than the prior year.

While he acknowledges the loss is disappointing (“because you always want to make money”) the Virgin boss is adamant that he will stay the course in delivering on the goals set out in the new vision. Just as he did during the Game Change Program.

He quotes former US Secretary of State Condoleezza Rice when asked about maintaining focus in the midst of day-to-day challenges, which as Virgin’s chief executive means dealing with regular spot fires and a fierce competitor down the road in the form of Qantas.

“If you let the headlines of today occupy your thinking, you will not do the hard work to get the benefits of tomorrow, or words to that effect,” Borghetti says.

“That’s so important, that you keep on track, you have got to keep looking to tomorrow as there is nothing you can do about that past.

“There will always be situations that happen that are beyond your control that you have to react to, whether it is competitive pressure or something else, but I can tell you we are as focused as anyone can be on making money. ” Virgin Vision 2017 has also earmarked $1 billion in cost savings over a five-year period to 2017.

Previously, Virgin has targeted $400 million in cost reductions by 2015, although Borghetti promises there will be no slash and burn mentality on costs.

It is not just cost savings that Virgin is relying on to bring itself back into the black. The airline continues to invest in new products and services in a bid to win over more corporate travellers (it is targeting a 30 per cent share of the business and government market by 2017, from 25 per cent currently) and convert more “indifferent travellers” to what it describes as a growing band of “VA loyalists”.

In some respects Borghetti subscribes to the adage from philosopher Titus Maccius Plautus, who once said one had to spend money to make money. Investments earmarked for the period ahead include a new premium product across its widebody Boeing 777‑300ER and Airbus A330-200 fleet, bringing business class onto the trans-Tasman and to Fiji, a new terminal due to open in Perth in 2015 and new airport lounges for the frequent traveller.

“Yes of course costs are important, absolutely, but if you don’t grow the business you are going to have a shrinking business,” Borghetti says.

“I can tell you now you will never be able to cut costs fast enough to compensate for a shrinking revenue line. It is just impossible. “You have to invest to make money. ” In addition to the hard product, employees will also receive what Borghetti describes as a range of initiatives to continue to help staff reach their full potential.

He says he is committed to ensuring Virgin remains one of the most attractive places to work, not only in the aviation sector, but also in Australia.

“It is our ability to attract, develop and retain the best talent, not just in the industry, but across Australia and beyond that will see us succeed,” Borghetti says.

Borghetti is confident the plan, or should it be the vision, that was unveiled at Virgin’s full year results presentation on August 29 will excite his staff. “The most important thing in the company is leadership and keeping people motivated,” Borghetti says.

“There is no easy formula, there is no textbook. You have to almost do it on the run, almost adjust as you go. ” While his counterpart – and former colleague – at Qantas Alan Joyce declared the worst was over after the Flying Kangaroo’s $2. 8 billion loss, Borghetti nominates the time he started the Game Change Program in 2010 as the bottom for Virgin.

“For Virgin that was when the worst was over,” Borghetti says.

“Because had we not done what we have done I can tell you there is no way Virgin Blue would have survived the onslaught of capacity that we have had. No way. ” “We are now in a company that has got good shareholders and strong strategy. ” Those “good shareholders” include four airlines that hold almost 80 per cent of all Virgin Australia’s issued capital – Singapore Airlines (22. 17 per cent), Air New Zealand (24. 99 per cent), Virgin Atlantic (10 per cent) and Etihad Airways (21. 24 per cent).

Moreover, the chief executives of Singapore Airlines (Goh Choon Phong), Air NZ (Christopher Luxon) and Etihad Airways (James Hogan) have taken their seats at the Virgin board table as directors.

“How many airline CEOs can say they have got three of the best airlines around the board table helping me. It is fantastic,” Borghetti says.

Cebu Pacific lands in Sydney

A tight squeeze but cheap tickets

The Philippiness’ largest carrier Cebu Pacific says it is looking to work with local budget airline Tigerair Australia as it begins service to Sydney.

Cebu Pacific’s inaugural flight to Sydney, 5J 7295, touched down Kingsford-Smith at 10:56 local time on September 9 and was greeted with a water cannon salute.

The 436-seat single-class Airbus A330-300 was on the ground for a little over 90 minutes before returning to Manila as 5J 7296, which departed at 12:32.

Cebu Pacific general manager for long-haul Alex Reyes, who was on the inaugural flight from Manila, says the airline is keen to cooperate with Tigerair Australia, having already forged links with Tigerair Singapore.

“Tigerair Australia would of course be a natural partner,” Reyes said after stepping off the inaugural flight.

“We have had discussions with Tiger in Australia. ” Reyes said Tigerair Singapore’s destinations were now appearing on the Cebu Pacific website as part of an interline agreement.

“They started selling us a couple of months ago and then just this month their flights are available on our website as well,” Reyes said.

Moreover, Tigerair Philippines was a wholly-owned subsidiary of Cebu Pacific, having been acquired for US$14. 5 million in January 2014. While it has kept its current Tigerair livery, the airline was expected to be fully merged with Cebu Pacific over time.

Cebu Pacific currently flies four times a week between Sydney and Manila, increasing to five times a week from December.

Reyes said there were positive signs an expanded bilateral agreement between Australia and the Philippines would enable the airline to operate a daily service some time next year.

“Our understanding is that there has been an exchange of letters already from both sides,” Reyes said.

“Both sides are willing, I think it is just down to fixing a date. ” Cebu Pacific offered the largest network in the Philippines with 34 domestic destinations in addition to 25 international points including Tokyo, Nagoya and Osaka in Japan.

Reyes said most of the tickets sold on the Sydney route have originated in Australia, with many tourists keen to go explore the Philippines.

“Forward bookings are looking good,” Reyes said.

Sydney confirmed as Etihad’s second A380 route

Etihad Airways will add Sydney as the airline’s second Airbus A380 destination when it deploys the doubledecker superjumbo to the NSW capital from its Abu Dhabi hub on June 1 next year. The airline confirmed Sydney as the second A380 route on August 28, following operations to the inaugural city London beginning in December. The daily A380 service, operating as EY454 from Abu Dhabi and the reciprocal EY455 from Sydney, replaces the Boeing 777-300ER currently operating the route. Etihad flies 11 times a week between Abu Dhabi and Sydney, while its alliance partner Virgin Australia flies the route three times a week. The Abu Dhabi-headquartered carrier’s A380 aircraft have economy, business and first class, as well as the airline’s The Residence concept, where two people share a living space, a bedroom and have access to their own bathroom.

The A380 was due to debut on the Abu Dhabi-London route from December 27. A return ticket for two people in The Residence between Sydney and London was about $86,000, according to a dummy booking for travel in June 2015 on the Etihad website.

QantasLink to fly to Brisbane West Wellcamp

Qantas’s regional arm QantasLink has been unveiled as the first airline to offer regular public transport services from Brisbane West Wellcamp Airport.

QantasLink will fly 11 flights a week between Sydney and Wellcamp – located about 20km south-west of Toowoomba and 130km from Brisbane – from November 17, with double daily services during the week and one flight on the weekend.

The announcement of QantasLink flights to Wellcamp led to regional carrier Skytrans deciding to pull out of direct services from Sydney to the council-owned Toowoomba Airport.

Wellcamp, scheduled to open in October, is Australia’s first privately-funded public airport.

Construction and logistics group Wagner Global Services has put up more than $100 million to build the new airport, which has a 2,870m runway and will feature an 8,300m2 terminal and an adjoining 500ha business park.

John Wagner, who is chairman of the family-run company, had said previously the airport would be used for freight services – the runway is capable of handling Boeing 747 aircraft – as well as regular passenger services.

QantasLink chief executive John Gissing said he was delighted to offer those in the Toowoomba area a direct service to Sydney as well as onward connections to other domestic and international destinations on the Qantas network.

“As Australia’s largest regional airline, we understand the needs of regional Australia and we’re confident that the new route will stimulate tourism and business opportunities for the Toowoomba area,” Gissing said in a statement on September 3.

Wagner said it was a momentous occasion for Australian aviation, the Toowoomba region and the airport.

Queensland Premier Campbell Newman, who was at the airport for the official announcement, said the Wagners’ investment in building the airport and Qantas’s decision to begin flights there highlighted the prosperity of the Darling Downs region and south-western Queensland.

“It guarantees billions of dollars of investment and secures hundreds of local jobs for south-west Queensland,” the premier said in the statement.

Skytrans chief executive Simon Wild said his small, family-run airline could not compete against the big national carriers such as Qantas.

“We are proud to have been the pioneer in getting that service up and running,” Wild said.

“We’ve worked hard over it and there has been a lot of good feedback from our customers but it is time to hand the baton on. ” Skytrans said it would continue services from Toowoomba to western Queensland.

Virgin Australia contemplating ex Melbourne ATR flights?

Virgin Australia has sent an ATR 72 to Melbourne and Launceston for staff training and route familiarisation flights, potentially laying the groundwork to expand its ATR turboprop regional operations beyond NSW and Queensland.

Flight tracking website flightaware. com showed Virgin ATR 72-500 VH-FVM flew from Brisbane to Melbourne on Saturday August 30, where it was on the ground for two nights before heading to Launceston on Monday September 1. After a little over five hours at Launceston Airport, the aircraft then flew back to Brisbane.

A Virgin spokesman said on September 3 the aircraft was flown to the two cities for route familiarisation and training purposes. However, he stressed no decision had been made on deploying part of the airline’s 13-strong fleet of ATRs to Victoria or Tasmania.

Rather, the training of airport staff at Melbourne and Launceston was designed to give the airline the flexibility to quickly bring the ATR 72-500 and ATR 72-600 turboprops onto new routes should conditions warrant.

Virgin currently operates only jet aircraft – Boeing 737s, 777-300ERs, Airbus A330-200s and Embraer E190 aircraft – at Melbourne Airport.

Its ATR turboprops fly from Sydney and Brisbane to regional centres in Queensland and NSW, as well as between Sydney and Canberra.

Getting turboprops to Melbourne would allow Virgin to shift some services from 98-seat E190s to 68-seat ATRs, or replace one 176‑seat 737 with two ATR services, depending on demand and frequency requirements.

QantasLink to expand Tamworth facilities

QantasLink has announced an expansion of its Dash 8 turboprop maintenance facilities at Tamworth.

The expansion will result in the upgrade of QantasLink’s existing Tamworth Airport hangar, an expansion into a second hangar, and lead to 25 new jobs at the site.

“The new hangar allows us to do two maintenance checks on two aircraft at the same time, which helps us meet our maintenance schedules, improve productivity and reduce operating costs,” QantasLink chief executive John Gissing said in a statement on September 4.

“We’ve grown our fleet significantly over recent years and we needed to expand our maintenance capabilities to handle the demand. ” QantasLink conducts all heavy maintenance on its Dash 8 fleet – which now comprises 31 Q400s, 16 Q300s and three Q200s – at Tamworth, where it currently employs 100 people.

The news is a welcome fillip for the NSW regional centre, given it could potentially lose the Australian Defence Force’s Basic Flying Training School (BFTS), which is currently based at Tamworth Airport.

The ADF’s AIR 5428 Pilot Training System project, which is currently under tender evaluation, could see initial ADF pilot training relocated to RAAF Base East Sale in Victoria.

“The New South Wales government and Tamworth Regional Council have been strong supporters of the facility and we thank them for their investment support,” Gissing said.

Collectively, the state government, Tamworth council and Qantas are investing $1. 2 million in the facilities upgrade, a Qantas spokesperson confirmed. The expanded facilities were due to open over coming weeks.

Cobham to introduce E190 with Chevron contract extension win

Charter and fly-in/fly-out operator Cobham Aviation Services says it has won a contract extension with resources giant Chevron to 2020 worth up to $160 million and will add an Embraer E190 jet to its fleet.

Cobham says it will be the first Australian operator of the Embraer in the charter aviation sector.

“The introduction of the Embraer 190 aircraft sets a new benchmark for dedicated charter services in Australia and will see Cobham continue to support Chevron’s activities, including the Gorgon Project as it moves from construction to steady-state operations,” Cobham Aviation president and CEO Peter Nottage said in a statement.

Aviation followers spotted the Embraer, registration D-AEMG and previously flown by Augsburg Airways in Germany, decked out in Cobham livery in Maastricht in the Netherlands. The aircraft’s Australian registration was expected to be VH-NJA.

The Embraer will operate between Perth and Barrow Island, Cobham said in a statement dated September 4, and be subject to strict quarantine procedures given Barrow Island was a Class A nature reserve and internationally important conservation estate.

“The quarantine process required for the transportation of materials, equipment and personnel to Barrow Island is unique and is the largest and most rigorous quarantine program run by a non-government organisation,” Cobham said in an accompanying fact sheet.

Cobham has been flying between Perth and Barrow Island since 2010 and currently uses Avro RJ100 aircraft on the route.

JetGo’s first Embraer ERJ 140 due in October

Regional carrier JetGo’s first Embraer ERJ 140 has emerged from the paintshop sporting the airline’s colours and is undergoing final checks and the installation of some avionics upgrades before making its way to Australia.

The ERJ 140LR, registration VH-ZJG, is at Republic Airlines’ facility in the US state of Kentucky having completed its paint job and C-check, with some new avionics due to be installed shortly.

JetGo managing director for airlines Paul Bredereck said the ERJ 140 was expected to make its acceptance flight on September 28, which is a little later than planned due to a delay in getting some avionics components.

“I expect that aircraft will be coming into Australia some time in early October,” Bredereck said.

The aircraft is one of three ERJ 140s JetGo has acquired from Republic Airlines.

Meanwhile, Bredereck said training and route proving flights for the start of JetGo’s regular public transport (RPT) service were progressing well.

JetGo, which to date has been a charter and fly-in/fly-out operator, conducted route proving flights with existing Embraer ERJ 135 aircraft.

“The RPT operations, when we kick them off, we will use our current Embraers ERJ 135s to start with,” Bredereck said.

Sydney to Roma is expected to be one of JetGo’s first RPT routes.

Air NZ, Thai launch Perth 787 services

After about five weeks in service, Air New Zealand was due to deploy its Boeing 787-9 to Perth on September 12, a month ahead of its official launch.

The 787-9 made its commercial debut in Air NZ colours on August 9, when ZK-NZE tookoff from Auckland airport as flight NZ103 bound for Sydney. The aircraft has been flying between Auckland and Sydney on an almost daily (and sometimes double-daily) basis since then.

The first 787 flight to Perth was to be on September 12, with NZ175 due to depart Auckland at 1420 local time, with a scheduled 1810 arrival at the West Australian capital. The return flight, NZ176, leaves Perth at 2115 and arrives back in Auckland at 0745 the next day.

The 787-9 substitutes for the Boeing 777-200ER Air NZ has been using to Perth, but Air New Zealand won’t guarantee the aircraft will operate on the Perth route until the airline’s second 787, ZK-NZF, was delivered late in September.

Thai Airways, meanwhile, was scheduled to be the second Dreamliner operator to Perth when it starts flights from Bangkok using the smaller 787‑8 from September 20, replacing Airbus A330-300 aircraft.

Thai, which took delivery of its first 787-8 on July 17, has eight Dreamliners on order – six 787-8s and two 787-9s. The 787-8s have 264 seats, with 24 in business and 240 in economy.

Qantas revamps US schedules

Flight times revamped, more MEL-LAX flights

Qantas has revamped its schedule to the United States and will now offer passengers heading across the Pacific from Sydney the choice of morning, afternoon and early evening flights, as well as new evening services from Melbourne three times a week from early 2015.

As part of the changes, Melbourne will have 10 flights a week to Los Angeles year-round, with a second service (QF95/96) operated by Boeing 747-400 aircraft to run on Wednesday, Friday and Sunday evenings from January 21 2015.

Qantas had announced in June Melbourne would get three extra flights over the peak summer holiday period from December to January.

From Sydney Qantas will from February 1 2015, shift the departure time of the QF11 flightto Los Angeles to 0950, from 1305 currently. Meanwhile, QF107, which currently flies from Sydney to Los Angeles and onwards to New York, will be replaced by QF17, a Sydney-Los Angeles service that departs at 1730.

The Flying Kangaroo’s Dallas/Fort Worth service, QF7, is unchanged as a lunchtime departure from Sydney. As already announced DFW services was to switch to the A380 and operate the return leg (QF8) direct to Sydney from September 29.

Finally from Brisbane, the airline’s QF15 flight to Los Angeles will remain as a morning flight operated by Boeing 747‑400s but will continue onto New York’s John F Kennedy International airport. Passengers from Sydney and Melbourne heading to New York will take the morning flight to Los Angeles and connect onto QF15.

Qantas International chief executive Simon Hickey said the changes to the schedule were part of the airline’s cost-saving program currently underway.

“As part of our strategy to build a stronger Qantas, we’ve introduced a new approach to aircraft utilisation so we can take advantage of opportunities in the market,” Hickey said in a statement.

“It means adjusting our schedules across the network to ensure our fleet spend less time on the ground and more time in the air. ” All flights heading back to Australia from either Los Angeles or Dallas/Fort Worth will depart at night.

As previously announced, Qantas is adding a fourth weekly service from Sydney to Santiago, Chile from February 20.

Sydney, Adelaide to get updated list of curfewexempt aircraft

The federal government is moving to overhaul the “outdated” list of aircraft permitted to take off and land during curfew hours at Sydney and Adelaide airports. Minister for Infrastructure and Regional Development Warren Truss says removing older, noisier business jets from the list will encourage operators to update their fleets.

The list of permitted aircraft at Sydney Airport in curfew hours was last updated in 2005,while Adelaide Airport’s list was last changed in 2000, Truss said. “Certainly it is time for an overhaul,” Truss told delegates at Airservices’ annual Waypoint conference in Canberra on September 4. “The latest model quieter business jets cannot land during the curfew – but old noisier aircraft can. “This is a modest and sensible change that will benefit industry, but also produce better noise outcomes for residents. ” The curfew at Adelaide and Sydney airports prohibit aircraft movements, with certain exemptions, between 11pm and 6am. In addition, Sydney Airport has a cap of 80 aircraft movements an hour during its hours of operation. Truss said the government was committed to keeping the curfew at both airports and the hourly cap at Sydney. Moreover, any aircraft that operated during curfew hours had to take off or land over the ocean at Sydney Airport and over the Gulf of St Vincent in the case of Adelaide Airport unless it was unsafe to do so. Public submissions on the proposed update to the list can be made on the Department of Infrastructure and Regional Development website and were due by October 31 2014.

Truss commits to Forsyth response by year end

Industry waits for a new CASA board and director of aviation safety

Minister for Infrastructure and Regional Development Warren Truss has reaffirmed the government’s commitment to respond to the Forsyth inquiry into Australia’s aviation regulatory system before the end of the year.

Speaking at Airservices’ annual Waypoint conference in Canberra on September 4, Truss said the Aviation Safety Regulation Review found Australia had a good safety record but identified “opportunities for improvement”.

“The government is now carefully considering all of the 37 recommendations and other matters arising from the report,” Truss said.

“We intend to provide a comprehensive response before the year is out. Above all, we are committed to ensuring that aviation maintains an appropriate safety regulatory framework that will provide the platform for the industry’s future growth. ” Truss said the government was committed to reducing the regulatory burden on business by cutting unnecessary red tape and allowing more competition to facilitate job creation. Regulation was a particular feature of the aviation sector, he said.

“Aviation has more regulation per square inch than any other industry I know and I would like to get rid of most of them,” Truss said.

“But I know that that will compromise confidence in our safety record. ” However, there were some things that the government is able to do, such as lifting the regulatory burden on the nation’s airports.

“My department has been engaging with stakeholders to identify areas of regulation duplication and overlap affecting our airports,” Truss said.

“In particular we are consulting on proposals to streamline the master plan and major development plan processes. The airport owners tell me they would like to see a longer duration between master plans and that further productivity gains could be achieved if the financial thresholds around major development plans were amended.

“I think these objectives are achievable. ” Meanwhile, CASA deputy director of aviation safety Terry Farquharsonis filling in as acting director of aviation safety until a successor was named.

The appointment of a new director of aviation safety would have to wait until a full board of CASA has been formed. That was due to occur after the formal announcement of three new board members.

Aviation Business has reported the three new people to be appointed to the board were Anita Taylor, Ian Smith and David Cox.

Taylor was most recently president of Gliding Australia, Smith is the Australian Maritime and Defence Foundation of Australia president, while Cox is chief operating officer of the faculty of engineering and information technologies at Sydney University and a former head of engineering at Qantas.

It was understood the three names had been submitted to Minister Truss.

CASA’s three current boardmembers were chair Allan Hawke, as well as the recently-appointed deputy chair Jeff Boyd plus Trevor Danos. The director of aviation safety also sits on the CASA board.

The Australian Aviation Associations’ Forum said on August 20 the appointment of a new director of aviation safety was a chance for a fresh start for the aviation sector.

Industry “stands ready and enthusiastic to bring in a new era of enlightened regulation for aviation safety in Australia to repair the damage of recent years,”the forum’s honorary chair Chris Manning said in a statement.

First RNZAF T-6Cs arrive

The first two Beechcraft T-6C Texan II trainers for the Royal New Zealand Air Force touched down at Whenuapai, RNZAF Base Auckland this week at the end of their 20-stop delivery flight from Wichita, Kansas. The two aircraft will be formally handed over to the RNZAF in October after intial pilot and maintenance training is completed. To be based at Ohakea, all 11 T-6Cs on order are due to be delivered by June 2015, allowing the first RNZAF pilot training course on the aircaft to begin in early 2016. The T-6C was ordered in January to replace the RNZAF’s CT-4E and some King Air 200s in the basic and advanced training roles. As well as aircraft the acquisition includes simulators and classroom and computer-based training devices.

Airservices says OneSKY on track

Airservices chief executive Margaret Staib says the move to a common air traffic management system with the ADF is progressing as planned and the project is on track to start construction in 2015.

The OneSKY project, which aimed to unify Australian skies under one air traffic management system, would be introduced in a phased transition from 2018 to 2021, Staib told delegates at Airservices’ annual Waypoint conference in Canberra on September 4.

“We have completed the tender evaluation and we will soon enter the contract negotiation phase,” Staib said.

“We will source and select the preferred technology in the first quarter of next year. Beyond that, we intend to move into the advanced system design stage and we aim to start building by the end of next year. ” Staib said the current civilian air traffic management system, The Australian Advanced Air Traffic System (TAAATS), was developed and commissioned in the second half of the 1990s and has been extended, upgraded and reprogrammed in the years since.

“We have gone just about as far as we can go – so it’s now time to look to the next 20 years,” she said.

“OneSKY is part of an overall plan to deliver a harmonised national system which will enable a new level of operational and cost efficiency and safety. ” The move to a new unified air traffic management system comes as Australia experiences strong growth in both domestic and international air traffic, while airports such as Melbourne, Brisbane and Perth were at various stages of planning for new parallel runways.

Staib said the OneSKY project had already delivered some benefits given some current systems and infrastructure were being made ready for its introduction.

For example, Airservices’ collaboration with the Department of Defence had resulted in the “optimisation of airspace with civil aircraft provided greater access to military airspace when it is not required operationally”, Staib said.

Staib said Australia had one of the best safety aviation records in the world, with one of the lowest loss of separation occurrence rates attributable to air traffic control.

Purchasing one air traffic management system, rather than one for civilian operations and one for defence operations, would result in combined savings in the “order of several hundred million dollars”, Airservices executive general manager of future service delivery Jason Harfield said.

Lockheed Martin, Thales and Raytheon are understood to be the three bidders for the OneSKY contract.

Ryanair launches 200-seat 737 MAX 200

Ryanair is the first airline to commit to the 200-seat version of the Boeing 737 MAX, ordering 100 of the single-aisle aircraft. The European low-cost carrier also has options for another 100 aircraft. As its name suggests, the 737 MAX 200 has a maximum seating capacity of 200 seats, 11 more than the 189-seat maximumcurrently on the 737-800 and 737 MAX 8 aircraft.

Ryanair chief executive Michael O’Leary said the aircraft would allow the airline to lower its costs and fares. “As many of Europe’s flag carriers cut capacity on short-haul routes, Ryanair looks forward to using these new Boeing 737 MAX 200s to grow at many more of Europe’s primary airports,” O’Leary said in a statement. The 200- seat limit is reached by having additional exit doors, which increases the exit limit of the aircraft. But Ryanair will configure its MAX 200s with 197 seats, saving it from having to carry an additional flight attendant under the one flight attendant per 50 passengers rule. Boeing said the 737 MAX 200 had five per cent lower operating costs than the 737 MAX 8. The 737 MAX series has garnered 2,239 orders from 49 customers.

First delivery, to Southwest, was scheduled for 2017. Ryanair will take its first 737 MAX 200 in 2019.

Jetstar to trial cabin baggage officers

The so-called “Ryanair jacket” could soon make an appearance in Australia as Jetstar moves to ensure customers stay within their free carry-on baggage allowance.

Jetstar says an upcoming six-month trial of “cabin baggage officers” at a number of major Australian ports is about ensuring passengers are within the maximum allowable size and weight limits for carry-on luggage.

They will also “assist” customers who need to have their bags checked in if they are too big or too heavy.

That move to “assist” passengers may give the airline a boost to its already healthy ancillary revenues, as passengers with excess carryon pay to check in bags at the gate or decide to pre-purchase check-in luggage during the booking process to be on the safe side.

Jetstar is already one of the foremost airlines in terms of generating ancillary revenues, according to an IdeaWorks Company report published in July 2014. The report said Jetstar had 20. 6 per cent of its total revenue come from ancillary revenue in 2013, the seventh highest among the 59 carriers surveyed.

The 2013 Qantas annual report said Jetstar grew its ancillary revenue per passenger by five per cent in 2012/13, without giving a dollar figure, while a 2012 report from Amadeus found Jetstar earned 18. 8 euros ancillary revenue per passenger in 2011, or A$26. 5 based on current exchange rates. It ranked eighth among airlines surveyed.

Jetstar says the new cabin baggage officers will help ground crew at theboarding gate and allow flights to depart on time.

“To make the air fair for all of our customers, we want to make sure that everyone is compliant with our carry-on baggage allowance,” a Jetstar spokesman said in an emailed statement to Australian Aviation on September 2.

“Our customers generally comply with our carry-on baggage limits and we hope that the introduction of these additional ground staff will help educate our customers about our limits to ensure everyone is able to board safely, speedily and with adequate locker space. ” Jetstar allows passengers to take 10kg of carry-on luggage on Australian domestic flights, consisting of one main item and one other small item. The cost of checked baggage starts at $15. 50 for 15kg when booked at the time the ticket was purchased, up to $70 if paid for at the airport on the day of travel.

“Any piece of baggage that doesn’t fit with the requirements above will need to be checked in and charges may apply,” the Jetstar website says.

Ancillary revenue is big business for airlines around the world, generating US$31. 5 billion in 2013, compared with US$2. 45 billion in 2007. That represented an increase of about 1,200 per cent.

In Europe, savvy travellers have invented special jackets, some with up to 17 pockets, in order to fight back against strict limits and hefty charges for carry-on bags by airlines such as Ryanair and easyJet.

In one such case, a passenger managed to fit a laptop, four t-shirts, two pairs of pants, two pairs of socks, a toothbrush, toothpaste, soap, sunglasses, a mobile phone, camera, torch, books, notepad and first-aid kit, along with a plastic mug, spoon and tin-opener and a packet of freeze-dried Lancashire hotpot in a 17-pocket jacket. And for washing up, some gloves and a rubber plug.

The cabin baggage officers will be at Melbourne, Sydney, Brisbane, Cairns and Gold Coast airports, the airline said.

Forgacs buys Broens

Newcastle-based Forgacs, Australia’s largest shipbuilder, is spreading its wings into the aerospace sector through the takeover of engineering company Broens, which makes parts for the F-35 Joint Strike Fighter project.

Forgacs is part of the team building the $8 billion Hobart class Air Warfare Destroyers (AWD) for the Royal Australian Navy. It is manufacturing 37 of 93 AWD hull blocks.

Meanwhile, Broens, which specialises in high-tech precision engineering and aerospace, supplied specialised tooling to major contractors of the F-35 project.

First RAAF P-8 contracts signed

A US$296 million contract for the procurement of long-lead items for a dozen Boeing P-8A Poseidon maritime surveillance aircraft including the first four aircraft for the Royal Australian Air Force has been signed.

“We are extremely excited about this contract award because it not only will continue to deliver P-8s to the US Navy but it also will deliver the initial set of P-8s to the Australian government,” Captain Scott Dillon, program manager for the Maritime Patrol & Reconnaissance Aircraft program office, stated of the contract with Boeing.