Preflight

The A380 is yet to fly and had yet to have its cabin interior – including Etihad’s innovative ‘The Residence’ first class apartment – fully fitted.

It is due to be delivered to the Abu Dhabi-based airline in December,before entering service between Abu Dhabi and London on December 27.

Etihad’s first three A380s will be dedicated to the London route, allowing it to operate triple-daily A380 services on the route from early 2015, while subsequent deliveries will allow Etihad to operate the aircraft to Sydney from June 1 and New York later in 2015, the airline says. (Melbourne A380 flights are planned for mid-2016. ) Unlike near-neighbour Emirates, which has 140 A380s on order, Etihad is taking a more conservative approach to introducing the double-decker.

“Let’s get these 10 in place first and then we can look over the horizon,” James Hogan, Etihad’s president and CEO, said of the airline’s five A380 options at a media conference immediately after the A380 rollout.

But he was much more effusive about the impact of the A380’s product innovations.

“This aircraft will change air travel forever,” he said, noting that TheResidence product – with its bedroom for two, separate sitting room, separate bathroom, butler and chef – would be popular with the Middle East’s high net worth individuals.

“People use private jets because they have a certain need, but from the Gulf there are strong traffic flows to the UK and New York. They are there today, so we believe there is a segment,” Hogan said.

“Yes, there is a market for The Residence, otherwise we wouldn’t have invested. ”And the Australian-born Etihad CEO even foresaw strong demand for The Residence from Australian travellers.

“I can’t tell you who, but you would be surprised the amount of VIP Australians that now fly through Abu Dhabi, clear US Customs clearance and fly to New York and Washington, and they are high net worth individuals. So when you’ve got a specific routing it works,” he said.

As for the rest of the just over 100 aircraft in its fleet, Etihad says theywill be repainted in the new colours – which were also showcased on the airline’s first 787-9 which rolled out at Boeing’s Everett facility just days later – over the next three years.

The new livery was designed by brand consultants Landor Associates, and is intended to reflect “traditional Emirati design patterns, the landscapes of the desert and the geometric shapes found in the modern architecture of Abu Dhabi”, according to Etihad.

Jetstar yet to secure hearing date for Hong Kong franchise

Jetstar Hong Kong is continuing to work with the Hong Kong government on getting off the ground but it is unclear when a hearing will be held to determine if the proposed carrier will be granted an operating licence, Jetstar Group chief executive Jayne Hrdlicka says.

The newest franchise in the Jetstar Group of airlines was launched by Qantas chief executive Alan Joyce in March 2012. However, it has met strong resistance from local carriers Cathay Pacific and Hong Kong Airlines, who both argue Jetstar Hong Kong does not meet the territory’s principle place of residence test as all the major decisions will be made at Jetstar’s headquarters in Melbourne.

Hrdlicka says there is ongoing dialogue with the Hong Kong government but declined to offer a likely date for a hearing.

“There is lots of back and forth with the Hong Kong government. The process is moving but we don’t have firm dates that we are ready to talk to you about at this point,” Hrdlicka told reporters in Sydney on October 3.

“Jetstar Hong Kong is very focused on making sure that the compelling case for change is heard, understood and that ultimately flows through to the right decisions in government. ” Hrdlicka said the process had taken “much longer than we expected that it would”.

Initially a joint-venture between Qantas and China Eastern, Hong Kong-based Shun Tak Holdings was brought on as a co-investor in June 2013. Jetstar has said previously its Hong Kong franchise had its own board and localmanagement, with Shun Tak’s Pansy Ho the chairman.

Qantas recently reduced its shareholder voting rights in Jetstar Hong Kong to 24. 5 per cent, leaving China Eastern with 24. 5 per cent and Shun Tak, which appointed two more members to the board, with the majority 51 per cent shareholder voting rights.

“Changes to the voting rights and the appointment of additional board members from the local investor were made to further cement the Hong Kong leadership and governance at a board level,” a Jetstar spokeswoman told Fairfax Media on September 1.

Faced with lengthy delays in getting off the ground, Jetstar Hong Kong has sold six A320 aircraft that were delivered from Airbus, with three others sitting on the ground in Toulouse racking up storage fees and leasing charges.

Meanwhile, in other Asian LCC news, Tigerair Singapore is to drop services to Perth from February 7 2015 as part of a network review.

“The suspension of the Perth route is part of Tigerair’s network review process and is in line with our route rationalisation strategy,” a spokesperson said in an emailed statement on October 13.

“In order for Tigerair to continue providing low fares to our customers, we review our network regularly and make careful adjustments where necessary, to ensure that we’re operating efficiently as an airline. ” Tigerair Singapore’s progressive withdrawal from Bandung, Phnom Penh and Perth also comes as the airline group prepares to sublease 12 surplus aircraft to India’s Indigo Airlines. The majority of the 12 aircraft were previously operated by Tigerair Philippines, which was sold to Cebu Pacific Air in March, and Indonesia’s Tigerair Mandala, which was shut down in July. “The sublease agreement resolves our excess capacity issue and puts us in a better position to focus on our Singapore operations,” Tigerair group chief executive Lee Lik Hsin said in a statement.

Rex wins Qld regulated routes

Rex’s gain is Skytrans’s pain in Qld

Regional Express (Rex) has emerged as a big winner from the Queensland government’s latest tender of regulated regional air routes.

Rex has won three new regulated air service contracts, meaning it will operate five regulated routes from January 1 2015, Queensland Transport and Main Roads minister Scott Emerson said on October 14.

The airline won the three new routes from regional carrier Skytrans, which will be left with no regulated air service routes when the new contracts commence.

Rex retained the contract for the Townsville-Winton-Longreach route and the Townsville- Hughenden-Richmond-Julia Creek- Mount Isa route.

It picked up Brisbane- Toowoomba-St George- Cunnamulla-Thargomindah, the Brisbane-Toowoomba-Charleville- Quilpie-Windorah-Birdsville- Bedourie-Boulia-Mount Isa route

We believe the Roma-Brisbane route should be deregulated. virgin spokesperson

as well as the Cairns-Normanton- Mornington Island-Burketown- Doomadgee-Mount Isa routes. The three routes are currently being operated by Skytrans.

Rex will service Toowoomba with flights to Australia’s newest airport, Brisbane West Wellcamp, making it the second passenger airline to commit flights to the privately-funded and built facility.

QantasLink begins Sydney- Wellcamp services on November 17.

The new routes increase Rex’s route network to 52 destinations, from 36 previously, Rex said in a statement.

Rex general manager of network strategy and sales Warrick Lodge said the airline had almost doubled passenger numbers on its regulated routes since it won the two contracts in February 2010.

Lodge said the airline was keen to hire staff from Skytrans.

“We are also mindful of the potential loss of employment for many staff and agents of theincumbent and we are committed to hiring/keeping as many of the staff and agents as we can,” Lodge said in a statement.

“We will be visiting all 16 new ports during the next two weeks where we will be hoping to have discussions with all affected parties. ” Meanwhile, QantasLink retained two regulated routes.

The first is Brisbane-Roma- Charleville, while the second was Brisbane-Longreach-Barcaldine- Blackall.

QantasLink said it would upgrade services to Roma, Longreach and Blackall to Bombardier Q400 aircraft, while flights to Charleville would be operated by Q300 aircraft.

“Qantas’s history started in outback Queensland in 1920, so we’re delighted that we can continue to serve these important regional communities,” QantasLink chief executive John Gissing said in a statement.

The Queensland government deregulated three routes, with Cairns-Weipa, Cairns-Horn Island and Townsville-Cloncurry-Mount Isa now open to competition.

However, it decided to keep the Roma route regulated, much to the disappointment of Virgin Australia, which had previously expressed interest in bidding but decided not to.

“We believe the Roma-Brisbane route should be deregulated as opening up the route to competition that will benefit the travelling public with more flights, better value fares and more choice,” a Virgin spokesperson said in an emailed statement.

“After careful deliberation, we chose not to respond to the tender as we do not believe the proposed contract was in the best interests of the travelling public or our company. ” CAPA – Centre for Aviation said in an April 2013 research note that Qantas had increased capacity on the Brisbane-Roma route from 1,700 seats per week in April 2012 to 2,900 seats per week a year later.

Qantas boosts Canadian reach with seasonal Vancouver flights, WestJet codeshares

Qantas will operate nonstop flights to Canada for the first time when it flies six seasonal return services between Sydney and Vancouver in January 2015.

The direct flights will be operated by three-class Boeing 747-400 aircraft and will run twice a week between January 3-22, Qantas said on September 16. Flight QF75 will leave Sydney on Wednesdays and Saturdays at 1450 for an 0945 arrival at Vancouver, while the return QF76 will depart Vancouver at 2345 on Sundays and Thursdays and land in Sydney at 1000 two days later.

Qantas previously operated seasonal services from Sydney to Vancouver via San Francisco in 2006, 2007 and 2008.

Currently, Air Canada offers the only direct flights between Australia and Canada, with daily flights between Sydney and Vancouver using Boeing 777‑200LR aircraft.

Separately, Qantas forged a new codeshare agreement with Canadian carrier WestJet for flights from Honolulu and Los Angeles as well as services within Canada. Starting from October 15, Qantas will place its QF code on WestJet-operated services from Los Angeles to Vancouver, Calgary and Edmonton, as well as from Honolulu to Vancouver. These WestJet flights will all depart within four hours of the Flying Kangaroo’s services from Australia, Qantas said.

Qantas will also place its airline code on WestJet flights from Calgary to nine destinations across Canada, from Vancouver to seven cities in Canada and from Toronto to Ottawa and Montreal.

There were about 20 new routes as part of the new codeshare agreement.

Dolan optimistic on finding MH370

Australian Transport Safety Bureau (ATSB) boss Martin Dolan says he is cautiously optimistic that missing Malaysia Airlines flight MH370 will eventually be found. Dolan says the ATSB resumed the search for the missing aircraft in early October, following months spent looking at more data and mapping the ocean floor in the likely search area.

“We are cautiously optimistic about success,” Dolan told delegates at the Regional Aviation Association of Australia (RAAA) national convention in the NSW Hunter Valley on October 10.

“The caution is that the sea floor is hugely complex. But on the other side of that, the optimism is we are very confident of these calculations and we are very confident in the equipment of the crews and the searching capability we’ve got out there.

“So we are giving it our best shot.

It will take us up to a year. ” The ATSB has been mapping the ocean floor and looking at more satellite and other data – including analysing ocean drift patterns and modelling what happened when the aircraft ran out of fuel – to determine the most likely location of MH370.

However, the search area is still very large, at between 60,000 – the size of Tasmania – and 100,000 square kilometres, Dolan said.

Qantas to unveil retro livery on 75th 737-800

Qantas is to mark 70 years of the flying kangaroo by unveiling its first “retro” aircraft livery, which will feature on a Boeing 737-800 due to be delivered in mid- November.

The 737-800, due to arrive in Australia on November 19, will be the 75th to join the Qantas fleet, and its painting in an as yet undisclosed retro scheme featuring the flying kanagaroo will mark the 70th anniversary of the kangaroo appearing on a Qantas aircraft for the first time.

The first Qantas aircraft to wear a kangaroo logo was Liberator G-AGKT in 1944. A converted ex RAF LB-30 Liberator bomber, one of four Qantas would operate, G-AGKT was fitted with longrange fuel tanks and could seat 15 passengers, and was used on flights to Colombo in what is now Sri Lanka. Qantas co-founder and chairman Hudson Fysh dubbed the flights the “Kangaroo Service” – thought to be due to the long nonstop “hop” between Learmonth, WA and Colombo – to link with BOAC flights onwards to London.

The iconic winged kangaroo symbol was then introduced in 1947 on the airline’s Lockheed Constellations. A 1984 redesign saw the kangaroo logo lose its wings, while the current livery was introduced in 2007.

The retro schemed 737 will be 737-838 VH-XZP msn 44577, which is the last 737-800 currently on order for Qantas.

Air NZ on track for profit growth in 2014/15 as chief defends pricing on regional routes

Air New Zealand chairman Tony Carter says the Kiwi flag carrier is on track for profit growth in 2014/15 with bookings strong heading into summer.

Carter told shareholders at Air NZ’s annual general meeting in Christchurch on September 30 it had been an “encouraging start to the year with solid forward bookings into the high season”.

“As we continue to deliver on our strategic priorities, and based on our current expectations of market demand and fuel prices, we expect to improve on the 2014 result in the coming year,” Carter said in prepared remarks.

The Kiwi carrier reported net profit after tax of NZ$262m for the 12 months to June 30 2014, up 45 per cent from NZ$181 million in the prior corresponding period. It was Air NZ’s third straight year of profit growth.

Air NZ chief executive Christopher Luxon said the airline’s performance on trans- Tasman routes, which were operated in conjunction with alliance partner Virgin Australia, were performing well despite some Australian dollar weakness.

“While the lower Australian dollar has impacted revenue, we continue to see areas of growth and opportunity,” Luxon said.

Luxon defended the carrier’s pricing on regional routes, arguing fares on turboprop services would always be more expensive than jetoperated flights due to economies of scale. Moreover, Air NZ had the best regional network in the world, citing independent research which showed all towns with a population of 20,000 or more in the country had scheduled air services.

This compared with just over half of all similar regional centres in Australia, Canada and Sweden, Luxon told shareholders.

“The same study showed that New Zealand boasts the cheapest like-for-like regional fares with Australia ranking second – albeit 29 per cent higher,” Luxon said. “However, regional airline economics are very challenging and regional turboprop airfares will sadly always be more expensive than jet airfares. This is because the smaller the aircraft, the higher the cost per seat which in turn drives our pricing. ” The topic of Air NZ’s pricing on regional routes was raised during the country’s recent elections, when a number of MPs and candidates criticised the carrier for its “horrendous” airfares. NZ Prime Minister John Key reportedly spoke to the airline about its regional airfares in response to people raising the topic of the high ticket prices during the campaign.

Separately, the New Zealand Airports Association said the Commerce Commission should regulate airfares, according to media reports. Luxon said strong financial results in recent years were a result of turning around the international business and not from the regional flying. He said the airline was focused on upgauging aircraft on regional routes to lower costs per seat in a bid to put downwards pressure on ticket prices.

Jetgo receives high capacity AOC

First RPT flights to start November 10

The Civil Aviation Safety Authority (CASA) has granted Jetgo a high capacity jet RPT air operator’s certificate (AOC), clearing the way for the airline to commence scheduled airline services.

“Although it took us two years in the planning and preparation, we cannot speak more highly of the CASA team at the Sydney Region Office that handled our application,” Jetgo managing director for airlines Paul Bredereck said. “Whilst they were extremely thorough, they were fair, knowledgeable and very professional. ” Jetgo, which to date has been a charter and fly-in/fly-out operator using Embraer 135 jets, will commence daily Sydney-Roma services on November 10 and twicedaily Sydney-Gladstone flights on December 1, the airline said in a statement.

Jetgo chief executive Jason Ryder said the Embraer flights would reduce travel times between Sydney and regional Queensland, compared with services that required a change of aircraft in Brisbane. The scheduled flights would be initially flown with 36‑seat Embraer ERJ 135 aircraft.

However, Jetgo was due to receive the first of three 44-seat ERJ 140LRs in December, enabling the carrier to switch its RPT services to the larger aircraft.

Capacity cuts yet to produce lift in yields at Qantas, Jetstar

Figures show Qantas’s new disciplined approach to capacity

While Qantas has stuck true to its forecast of no capacity growth across its Qantas and Jetstar domestic operations for the first half of 2014/15, this capacity discipline has yet to translate to improved yields through July and August, latest figures show.

The group has managed a slight capacity reduction in the first two months of 2014/15 with cuts to Qantas’s domestic seats offset by capacity increases at Jetstar.

The Qantas Group’s monthly operating statistics for August showed Qantas Domestic, QantasLink and Jetstar Domestic flew 9. 456 billion available seat kilometres (ASK) over July and August, down about half a per cent from 9. 505 billon ASKs in the prior corresponding period. Qantas domestic and QantasLink combined reported a 2. 8 per cent reduction in ASKs, while Jetstar domestic lifted ASKs by 4. 5 per cent.

“Total Domestic (comprising Qantas Domestic, QantasLink and Jetstar Domestic) yields were lower than the prior corresponding period,” Qantas said in its August operating statistics published on September 29. The last time the Qantas Group reported anything other than falling domestic yields – an industry term measuring average airfares per passenger – was in July 2013, when it said yields were flat compared with the prior corresponding period.

Both Australia’s two main airline groups posted full year losses in 2013/14 as a softening economy, sluggish demand and too many seats forced them to cut prices in a bid to fill up aircraft.

“Capacity is normalising with underlying demand. It will take a few years for all markets to grow into the capacity that is there but the outlook is now really encouraging,” Jetstar group chief executive Jayne Hrdlicka said on October 3. “In Australia, we are very confident in our position. ” Qantas said it would maintain zero capacity growth in the six months to December, while Virgin has not offered capacity guidance for the period ahead.

Triton completes first cross-country ferry flight

The MQ-4C Triton has completed an 11-hour, 3,290nm transcontinental flight from the Northrop Grumman facility in Palmdale, California to Naval Air Station Patuxent River in Maryland, where the unmanned aircraft system (UAS) is due to begin its next phase of testing. The aircraft flew the same flightpath as was used to transfer the Broad Area Maritime Surveillance-Demonstrator (BAMS-D) from Palmdale to Patuxent River several years ago. That saw the aircraft fly along the southern US border, over the Gulf of Mexico and across Florida. Operators then guided the aircraft up the Atlantic coast and over the Chesapeake Bay at altitudes in excess of 50,000ft to avoid potential conflicts with civilian air traffic.

The aircraft will now be fitted with a sensor suite before it is put through a series of sensor integration flights, while two futher MQ-4C aircraft (one of which is a demonstrator aircraft owned by Northrop Grumman) were expected to fly to Patuxent River to take part in test activities shortly.

Triton initial operating capability (IOC) with the US Navy is planned for 2017. After the Australian government announced earlier this year its intent to acquire the Triton, up to seven are expected to be based at RAAF Base Edinburgh in South Australia, operated by the Royal Australian Air Force alongside the Boeing P-8A Poseidon to replace the AP-3C Orion maritime patrol aircraft.

More C-17s for RAAF

Two extra C-17s confirmed, two more to be considered as part of the next Defence White Paper

The RAAF could operate a total fleet of up to 10 Boeing C-17A Globemasters after Defence Minister Senator David Johnston announced on October 3 that Australia is to acquire at least two additional C-17s and is considering the acquisition of a further two examples of the heavylift transport.

Six C-17s are already in service with the RAAF’s 36 Squadron, based at Amberley west of Brisbane.

“Should the government elect to exercise this option, the two extra Globemasters would significantly enhance the Royal Australian Air Force’s capacity for operational tasks, disaster relief and humanitarian assistance in our region and around the world,” Minister Johnston said in a statement.

Further, the Minister said that the government has requested pricing and availability data through the US government’s Foreign Military Sales (FMS) program for a further two C-17s, which would take the total RAAF fleet to 10.

Decisions regarding the acquisition of the ninth and tenth aircraft are being informed by the Force Structure Review being developed as part of the 2015 Defence White Paper process, he said.

“Since the first delivery in 2006, we have seen the C-17A Globemaster perform exceptionally well at the forefront of Australia’s military operations and humanitarian work. Recent global events have seen Australia’s national capabilities like the C-17A come to the fore to assist our friends and allies. ” The additional C-17s would integrate seamlessly into the existing fleet based at RAAF Base Amberley, the Defence Minister added.

The opportunity to acquire additional C-17s is limited. Boeing is currently building its 269th and last C-17 at its Long Beach, California plant, with production due to wind up next year. However, the company is building 15 “white tail” aircraft without a customer to date. India (which already has 10 on order) is reportedly interested in a number of these, and Boeing remains in ongoing discussions with other existing C-17 operators and potential new customers regarding the remaining aircraft. Australia initially ordered four C-17s in 2006 which were delivered between December that year and January 2008. The fifth and sixth aircraft were delivered in 2011 and 2012.

C-27J Spartan to be based at Amberley

RAAF Base Amberley is set to become the operating base for 35SQN and the future fleet of 10 Alenia C-27J Spartan battlefield airlifters that are expected to arrive in Australia in 2015, Air Force News has reported.

The first aircraft are anticipated to initially be based at RAAF Base Richmond when they begin arriving early next year, with the re-established squadron using existing facilities. But subject to the necessary approvals, new supporting infrastructure will be constructed at Amberley to establish a permanent home for 35SQN.

“In light of contemporary circumstances, including Army’s Plan BEERSHEBA, Amberley is the most flexible and efficient basing option to support the full range of C-27J customers,” GPCAPT Steve Young, director of the C-27J Transition Team, was quoted as saying. “Having the main operating base at Amberley will also improve responsiveness for major deployments through co-location with the C-17 capability. ” The C-130J Hercules transport aircraft was expected to remain at Richmond.

RAAF conducts first Iraq airstrikes

The RAAF Air Task Group that is operating in the Middle East has attacked its first target during a mission in Iraq. In an October 9 statement, Defence confirmed that an F/A‑18F Super Hornet had dropped two bombs on “an ISIL facility”.

Operation OKRA is the Australian contribution to the international effort to combat the Islamic State. About 400 personnel have been assigned to the Air Task Group.

Aircraft proving an attractive asset class

Commercial aircraft are becoming an increasingly popular asset class among global financial companies, including those in Australia, looking for a reliable investment opportunity beyond property, a senior Boeing executive says.

Boeing Capital Corporation managing director of capital markets development and leasing Kostya Zolotusky said the aircraft financing environment was as good as he had seen it in a long time, with plenty of new market players entering the leasing game.

“To me that is a reflection of the broad investor understanding that the aircraft asset class is exceptional,” Zolotusky told reporters in Sydney on October 7. “Airplanes over the last several decades have been the bestperforming asset class and they have been the best-performing asset class over the financial crisis.

“In essence, airplanes are high-quality movable global real estate.

We are not an iPad that is going to be replaced by another version of an iPad in a year or a month, we have a 20-, 30-year horizons. ” Capital markets will fund an estimated 22 per cent of the $US112 billion worth of aircraft deliveries in 2014, according to a slide presentation accompanying Zolotusky’s remarks.

This was up from 14 per cent in 2013. Meanwhile, bank debt was used to fund a quarter of all new aircraft deliveries in 2014, down slightly from 28 per cent in 2013.

And Australian banks were looking to get involved on the global stage, with the Commonwealth Bank emerging as a “true global aircraft finance bank”, Zolotusky said.

“Australian and other Asian banks are starting to play globally whereas in the past they were predominantly focused on domestic and Asian markets. ” This resurgence in banking activity in the aircraft finance scene reflected changing attitudes amongbanks regarding where they chose to park their funds.

“In the past banks could almost single-mindedly plough as much money as they wanted to in real estate,” Zolotusky said.

“Now they have realised it is not as bulletproof as everybody assumed historically. ” Zolotusky said aircraft finance companies would be able to handle rising interest rates as global economic growth recovered, pointing to the industry’s ability to deal with rising fuel prices in past years.

He said a one percentage point lift in financing costs of a Boeing 777 aircraft equated to about a three dollar per barrel rise in fuel prices, noting that airlines and aircraft manufacturers have managed to withstand oil prices rising from US$50 to above US$100 per barrel.

“Airlines had their second most profitable year when fuel was at $115,” Zolotusky said. “This year fuel is hovering at a shade under $100 and they will have their most profitable year ever. ” Airlines were increasingly using operating leases for aircraft, Zolotusky said. He noted just half a per cent of the global aviation fleet was on operating leases in 1970, compared with about 42 per cent today and an estimated 50 per cent by 2020. The rise was due to a tighter regulatory environment in banking, meaning many second- or third-tier airlines were not able to obtain finance to buy aircraft and instead had to rely on leases.

Separately, at the end of September, Macquarie Group’s subsidiary Macquarie AirFinance signed a firm purchase agreement for 40 of Bombardier’s CS300 jets, with an option for 10 more of the type. First delivery was due in 2017, Bombardier said in a statement on September 26.

Macquarie AirFinance currently had 136 jet aircraft leased to 73 operators in 43 countries around the world.

Rex disappointed with “token” en route scheme

e Regional Express (Rex) says it is disappointed with the government’s revival of the en route subsidy scheme given it offers only a fraction of the assistance compared with what was available previously.

Rex chief operating officer Neville Howell says the $1 million a year for four years to cover air navigation charges from Airservices represented just 15 per cent of the assistance available before the Labor government axed the program. Moreover, most of Australia’s regional routes would not be eligible for the rebate given the low threshold of up to 15,000 passengers per year.

“It is disappointing that the government is doing so little to help regional aviation when 16 regional airlines have collapsed in the last 12 years,” Howell said in a statement on September 16. “Given the current aviation crisis in this country, more will collapse, and the token amounts will not stem the permanent loss of regional services to many parts of regional Australia. ” The federal government said on September 15 it would spend $1 million a year to bring back the En route Charges Payment Scheme, which gave airlines the ability to recoup 60 per cent of air navigation charges levied by Airservices on existing routes and 100 per cent of the charge for new routes for up to three years. Deputy Prime Minister and Minister for Infrastructure and Regional Development Warren Truss said priority would be given to routes that linked a regional or remote community with a capital city or major regional centre.

The scheme was on top of the $1 million each year allocated to supporting vital aeromedical services such as the Royal Flying Doctor Service, Truss said.

Regional Aviation Association of Australia CEO Paul Tyrrell said the revival of the en route scheme was welcome news. However, he noted the size of the previous scheme was worth up to $5 million a year, or five times the size of the new scheme. “If it can help some existing routes to stay on their feet and we can help a new route or two to get started then it is not a bad thing,” Tyrrell said.

“It is absolutely better than nothing and we are grateful for that, but it is a very small amount of money across the country. ”

Boeing Aerostructures Australia to have design but not manufacturing role for 777

XBoeing Aerostructures Australia (BAA) will have a design role for the 777X but will not produce parts for the next-generation twin-aisle aircraft.

However, BAA will continue to make wing components for the 777-300ER and 777-200LR until the production run for those models ends in 2022 and remains a key plank of the 787’s global supply chain, Boeing Australia and South Pacific president Maureen Dougherty says.

Boeing said on October 6 (US time) its St Louis site will produce parts for the 777X, “bringing back inside the company work that is currently performed at suppliers or performed overseas for the current 777 program”, from 2017.

“The design for these parts will be done in St Louis, Boeing Aerostructures Australia (BAA) and other Boeing sites,” the statement said. Final assembly for the 777-9X and 777‑8X would take place at Boeing’s Everett, Washington State site.

“The current model that is being manufactured in Melbourne will remain in Melbourne until as far out as we can see which is 2022,” Dougherty told reporters in Sydney on October 7.

“The new model, the 777X, those parts will be designed in a number of places including Melbourne and manufactured in St Louis.

“It is really all about Boeing’s global strategy and supply chain, so balancing in-house production and our supply chain to provide best value to the customer. ” BAA, which is a wholly-owned subsidiary of the Boeing Company, currently supplies components for the 737, 787, 747 and 777 programs.

The facility makes cove lip doors, elevators and rudders for the 777, according to the Boeing website.

The work to build the 787’s left and right hand inboard flaps, flaperons, outboard flaps and ailerons was worth about $4 billion over 20 years, Boeing has said previously.

BAA employed about 1,300 staff at its base in Melbourne’s Fishermans Bend.

Qantas, SriLankan to codeshare

SriLankan Airlines has inked a codeshare partnership with Qantas over flights between Colombo and Australia, its fifth codeshare deal with a oneworld carrier.

Under the partnership, Qantas will add its QF airline code on SriLankan’s daily service between Colombo and Singapore. The Flying Kangaroo already codeshares on its global alliance partner Emirates’ flight on the route. At the same time, SriLankan will place its UL airline code on Qantasoperated services from Singapore to Brisbane, Melbourne and Sydney, complementing an existing codeshare on Malaysia Airlines between Kuala Lumpur and Australia.

SriLankan joined the oneworld alliance in April 2014.

Qantas operates last 767 int’l flight as fleet winds down

The retirement of the 767 from Qantas passenger service is drawing nearer, with the 767’s last international flight in Qantas colours – Honolulu to Sydney operated by VH‑OGU – landing at Mascot on September 13.

At this stage, the final Qantas 767 passenger service is scheduled to be QF452 from Melbourne to Sydney on December 27.

At press time, Qantas had seven 767-300ERs and one 767-300F freighter in service.

New era for the A320 as neo makes first flight

Airbus’s re-engined development of its A320 narrowbody airliner, the A320neo (New Engine Option), made its first flight on September 25.

The first A320neo development aircraft, F-WNEO MSN 6101, took off on its maiden flight from Toulouse-Blagnac Airport at 12:00 local time. Onboard were test pilots Philippe Pellerin and Etienne Miche de Malleray and flight test engineers Jean-Paul Lambert, Manfred Birnfeld and Sandra Bour-Schaeffer.

“During the flight, which took the aircraft around southern France, the crew explored the aircraft’s flight envelope and systems operation,while the progress was monitored by experts on the ground in real time via a direct telemetry link,” Airbus said.

First flight marks the beginning of a 3,000 hour flight test campaign.

The first aircraft is powered by Pratt &Whitney’s PW1100G geared turbofan, while the aircraft is also available with the CFM LEAP-1A.

First delivery, of a PW1100Gpowered aircraft, is expected to Qatar Airways in the fourth quarter of 2015. Total A320neo Family orders stand at over 3,200 from 60 customers.

Locally the Qantas Group now has 99 A320neos on order for Jetstar (after it this year converted orders for 21 current version A320s to neos), while Air New Zealand has 13 neos on order.

Rex cuts flights across NSW, announces job losses

Regional Express (Rex) says falling profits have led to job losses and cuts across its route network in NSW. Rex chief operating officer Neville Howell saysflights to Taree, Grafton, Lismore and Newcastle will be reduced in response to a board-initiated network review following “two consecutive years of steep profit declines”.

“Several routes on the NSW network carry heavy losses and the situation is no longer tenable,” Howell said in a statement on September 24. “The board had ordered a review to either drop or reduce services on our most marginal routes. Management was able to gain board approval to maintain services to all routes but with capacity reduced to better match demand. ” Howell said redundancies would be offered across the airline group but offered no figure on how many jobs would be affected. “Earlier the board announced, for the first time in our history, redundancies affecting various positions across the Rex Group. This will again be reviewed at the next board meeting at the end of November,” Howell said. Rex reported net profit for the 12 months to June 30 2014 of $7. 725 million, down 44. 9 per cent from $14. 018 million in the prior corresponding period.

Four more towers earmarked for new INTAS air traffic control system

Having completed the rollout of its new digital air traffic control suite at four new airport towers, Airservices says it will begin installing the new suite at four existing towers in the period ahead.

The nation’s air navigation service provider says Gold Coast, Perth, Cairns and Brisbane airports will be the first four existing towers to receive the Integrated Tower Automation Suite (INTAS). The announcement on September 12 of the four airports with existing towers to get INTAS comes after installation of the suite was completed at Broome, Rockhampton, Adelaide and Melbourne airports in early 2014.

INTAS combines flight and operational data, surveillance and voice communications. It is provided by Saab Sensis, NAV Canada and Harris. The air traffic controller has four touchscreen monitors and electronic flight strips, doing away with the paper strips used currently.

“By transitioning away from a manual, paper-based system, controllers are able to concentrate more on the visual surveillance of the airport and aircraft, leading to increased situational awareness and enhanced safety,” Airservices executive general manager of air traffic control Greg Hood said.

“It also provides controllers with greater information about airport operations, which can be used to enhance airport efficiency and ensure we are well placed to meet the estimated 60 per cent increase in traffic over the next 15 years. ” No timeframe was given for when the four existing towers would begin to receive the new suites. Gold Coast, Cairns, Perth and Brisbane airports would also receive upgrades to mechanics, electrical, fire and water services, Airservices said.

RAAA says regional aviation risks being reduced to two players

Regional aviation risks becoming a duopoly with Qantas and Virgin Australia left as the two remaining players unless steps are taken to improve the lot of smaller operators in the bush.

That is the warning from Regional Aviation Association of Australia (RAAA) chairman and Regional Express director Jim Davis, who says conditions for those flying in the country have continued to decline over the past year.

This was highlighted by the collapse of Vincent Aviation and Brindabella Airlines in the past 12 months, bringing to 16 the number of regional carriers that have shut down since September 11 2001.

Davis noted there were currently 15 regional airlines in Australia, down from 58 operators in 1984, while the number of regional ports served had fallen from 277 in 1984 to 148 in 2010.

“These numbers speak for themselves and unless this trend is arrested we may end up one day with Qantas and Virgin being the Coles and Woolworths of regional air services,” Davis told delegates at the 2014 RAAA national convention.

“The corner grocery store may well disappear. In such a scenario, the smaller communities can only suffer from being denied the essential air links to large cities that allow them to prosper and grow economically.

“To arrest this trend and to ensure the viability of smaller regional operators we need to contain the costs that have increased dramatically in recent years. ” Davis urged the federal government to provide a response to the Aviation Safety Regulatory Review (ASRR), which was released in June and highlighted the at times adversarial relationship between the Civil Aviation Safety Authority (CASA) and the industry, without delay.

While Australia has an “excellent” airline safety record and an “advanced” aviation regulatory system, the ASRR found there were “opportunities for the system to be improved to ensure Australia remains a leading aviation state”.

Those opportunities revolved primarily around improving the relationship between the regulator – CASA – and the aviation industry, with the appointment of a new director of aviation safety (DAS) a chance for cultural and structural change.

“I’ve always firmly believed that the industry working in partnership with CASA is by far the best approach and achieves the best safety outcomes,” Davis said.

“Sadly this has not been the case in recent years. ” “We see it as essential that action is now taken on the recommendations in the review and taken as soon as possible. ” The report’s author David Forsyth told delegates at the convention it would take about two years to fix the relationship between the industry and the regulator. However,restoring trust between Australia’s aviation players and CASA would take longer.

Forsyth said the industry’s view that the relationship with CASA was both inappropriate and unhealthy centred on the availability and use of safety data.

He noted carriers such as British Airways and easyJet freely sent the majority of their operational safety data through to their national regulator, something that would be unheard of in Australia.

“I would never have done it in Qantas 10-12 years ago and you can be damn sure no one is going to do it in this country now,” Forsyth said.

“Overseas, operators share some and in some cases operators share all of that in-house data with the regulator. That’s not happening in Australia. In fact, the reverse is true.

“There was even some evidence that some people were actually not even reporting the mandatory data to CASA. ” Australian operators sent their information to the Australian Transport Safety Bureau (ATSB), where it was “de-identified” before a summary was produced for CASA, which Forsyth said was a process “clearly out of step with best practice”. “This issue revolves around trust,” Forsyth said.

“It will take time for the industry – to use the T word – to trust the regulator.

“A year or two, or at the most three, in the right circumstances, you could restore the balance to where it needs to be. ” Deputy Prime Minister and Minister for Infrastructure and Regional Development Warren Truss has said previously the government would provide a full response to the ASRR’s 37 recommendations before the end of 2014.

CASA’s acting DAS Terry Farquarson said he was hopeful of a better relationship with industry.

Farquarson told delegates criticism of CASA was nothing new, pointing to “endless” reports over the years which have described Australia’s aviation regulator as either too harsh or too soft on industry players.

He said CASA had to make tough, sometimes unpopular decisions. He also acknowledged it was currently a period of change with “a lot of stuff coming through” as they moved to new systems and regulations.

However, there were extensive transition periods and support available as people came to grips with the new systems.

“Safety is an element of what the industry does, it is the reason for CASA being there and the government have made no suggestions they are going to rehash the Civil Aviation Act in any fundamental way,” Farquarson said.

“Most importantly, we need to move into the future with a mutually respectful understanding of each other’s roles.

“Chucking bricks, going into the trenches, is unhelpful in the extreme. ” A fully formed CASA board needed to be in place before a permanent DAS could be named and federal Parliamentary Secretary to the Minister for Industry Bob Baldwin said further appointments to the current three-man board would be made “very shortly”. Baldwin said the government was committed to increasing the breadth of aviation knowledge and experience on the CASA board “to better equip it to set and implement the strategic direction of the organisation”.

CASA’s three current board members were chair Allan Hawke, as well as the recently-appointed deputy chair Jeff Boyd and Trevor Danos. It will take time for the industry – to use the T word – to trust the regulator.

Xtra impressive formation flight marks A350 certification

Airbus has marked receiving type certification for its A350 widebody twin with a formation flight involving the five A350 flight test aircraft.

The largely composite construction airliner has been awarded European EASA type certification in its initial A350-900 form, with Airbus saying US FAA certification will follow “shortly”. Certification paves the way for first delivery to launch customer Qatar Airways before the end of the year.

“Our fleet of five test aircraft completed the certification campaign, on time, cost and quality. Accumulating more than 2,600 flight test hours, we created and successfully achieved one of the industry’s most thorough and efficient test programs ever developed for a jetliner,” Fabrice Brégier, Airbus president and CEO, said on September 30.

The A350-900 has been certified to two maximum takeoff weights, 268 and 275 tonnes. The aircraft has completed ETOPS testing, but EASA and the FAA have yet to announce what ETOPS limits they will grant the aircraft. Airbus says it will have some level of ETOPS clearance by service entry, and is ultimately aiming for 420 minute ETOPS approval.

Airbus celebrated the certification milestone with the release of stunning images of a formation flight by the five A350 development aircraft that took place over the Pyrenees mountain range, south of its Toulouse headquaters, on September 29.