Preflight

The exception is Sydney, where one of its four daily flights uses a Boeing 777-300ER that also features a three-class cabin and has 340 seats. And from October, Cathay is further boosting capacity when it deploys the big Boeing twin on a second flight to Sydney.

Chu says bigger aircraft will be thebest way to meet demand given its schedule out of Sydney, where it has four flights a day, and Melbourne which is three times daily, “covered all the windows”.

“In order for us to expand, the best option is to operate bigger aircraft. Not the only option, but the best option,” Chu told Australian Aviation on the sidelines of the International Air Transport Association (IATA) annual general meeting in Miami on June 9.

“We’ve got the best slots out of Hong Kong and the best slots into and out of Australia so I think it is hard after four services to find more outbound and inbound slots into and out of Australia.

“The best way is to make better use of existing slots, put bigger aircraft in place. ”Cathay has fully utilised the available traffic rights for Hong Kong-based carriers to fly to the main Australian gateway cities of Brisbane, Melbourne, Perth and Sydney.

The oneworld member also serves Adelaide and Cairns and has operated charter flights to the Gold Coast during the Chinese New Year period.

Reports say the Hong Kong government has been trying, so far without success, to secure more traffic rights under the bilateral air services agreement with Australia.

In any case, any expansion of the bilateral would also bring into play Hong Kong Airlines, which is keen to commence service to Australia.

Asked if the current bilateral arrangement between Australia and Hong Kong was hindering Cathay’s plans for growth in this part of theworld, Chu said: “I wouldn’t say this is a major constraint. ” “It is not a matter of being forced to use bigger aircraft, we choose to do it because those slots are really great slots and our flights are really full. ” “I would say that the major opportunity going forward is really to put [on] bigger aircraft, to upgauge.

“When you operate four times a day to Sydney, how many more do you want?” Meanwhile, Cathay is preparing for the arrival of its first A350‑900 due for delivery from Airbus in February 2016. The aircraft, MSN29 is pictured here taking shape on the final assembly line with the wings, horizontal and vertical tailplane and tail cone joined to the fuselage. The second A350, MSN32, is also on the final assembly line.

The airline is due to take delivery of 12 A350s in 2016, which have been earmarked to operate to Europe and the United States, as part of an order for 22 A350-900s and 26 A350-1000s.

Cathay’s head of A350 project Bob Taylor said the airline recentlymet with Airbus to review the early entry-into-service experience of launch customer Qatar Airways.

“Our understanding is that the aircraft is performing quite well technically although some early maturity issues still have to be addressed,” Taylor told the July edition of Cathay’s staff newsletter CX World.

“The feedback from operating crews has been very positive. ” While Cathay has not publicly announced which route would be the first to receive A350 services, Aspire Aviation reported that Auckland would be the first long-haul route to switch to the A350 in May, following several months of short-haul operations around Asia to get crews up to speed with the new type.

Also, the oneworld alliance member has flagged a new business class seat for its A350 fleet.

Chu said Australia too could come under consideration for A350 service at some future point, given the large number of the type on order.

“I wouldn’t rule it out but at the moment we are not ruling it in. It ispossible,” Chu said.

“That aircraft is not bought for Australia but we may intelligently misuse it because it is a very big fleet and a very efficient aircraft. ” While Cathay does not offer first class on its Australian routes, Chu indicated he was open to looking at introducing its top cabin product Down Under at some stage with four-class Boeing 777-300ERs.

“We are conscious that maybe there is a first class market for Sydney,” Chu said.

“In time maybe we will, but at the moment our four-class 777-300ERs are now very much engaged and employed already to Europe and North America. ” Chu indicated Cathay was also interested in adding additional freighter services to Australia.

(Note: Chu spoke with Australian Aviation before Hong Kong’s Air Transport Licensing Authority handed down its decision regarding Jetstar Hong Kong, which is covered elsewhere this issue. )

Virgin Australia establishes cargo unit

Virgin Australia has brought the management of its cargo space in its fleet of regional, domestic and short-haul international aircraft back in-house following the expiry of the airline’s contract with Toll Holdings.

The airline took control of the belly space in all but its five Boeing 777-300ER aircraft on July 1.

Virgin Australia group executive for cargo Merren McArthur said the airline’s cargo division has not kept pace with the growth in passenger numbers and increased share of thecorporate and government sector.

“Our business model has changed but we haven’t seen the growth in take-up of cargo on our capacity that we would expect with that sort of change in business model,” McArthur told Australian Aviation on June 22.

“We have taken the decision that we really need to take control back of our own assets and leverage them and extract the maximum value from them because they are currently under-utilised.

“I see this as really a parallel to what we have done in the corporate possible,” Chu said.

“That aircraft is not bought for Australia but we may intelligently misuse it because it is a very big fleet and a very efficient aircraft. ” While Cathay does not offer first class on its Australian routes, Chu indicated he was open to looking at introducing its top cabin product Down Under at some stage with four-class Boeing 777-300ERs.

“We are conscious that maybe there is a first class market for Sydney,” Chu said.

“In time maybe we will, but at the moment our four-class 777-300ERs are now very much engaged and employed already to Europe and North America. ” Chu indicated Cathay was also interested in adding additional freighter services to Australia.

(Note: Chu spoke with Australian Aviation before Hong Kong’s Air Transport Licensing Authority handed down its decision regarding Jetstar Hong Kong, which is covered elsewhere this issue. ) passenger market where we have brought competition and offered an alternative and people have really warmed to that and responded to that in a positive way. ” From July 1, Virgin began selling and managing the belly space in the passenger fleet of its Boeing 737s, Airbus A330s and Embraer E190s, as well as Tigerair Australia’s A320s, and the ATR turboprops and Fokker fleet of Virgin Australia Regional Airlines.

Cargo sales on Virgin’s fleet of five Boeing 777-300ERs, which fly to Los Angeles and Abu Dhabi, will continue to be managed by Virgin Atlantic. McArthur said interest from potential customers had been high since Virgin chief executive John Borghetti first mooted the airline’s direct entry into the cargo market in August 2014.

“There are a number of customers in the market who prefer to deal with the airline direct either for competitive or commercial reasons,” McArthur said.

“We believe that we will attract some of those customers to us going forward. Currently there is only one player in that space so we will be bringing competition. ” Virgin hoped its cargo division will bring in between $150 million and $200 million in annual revenue by 2017. McArthur, who described the local cargo market as stable, said there were no immediate plans to add dedicated freighter aircraft to the airline’s fleet, given the current passenger aircraft were being under utilised from a cargo perspective.

“Our goal is not really dependent on growth of the domestic market. Our goal is about actually expanding our client base from one customer to multiple customers and generating a significant increase in revenue that way. ” McArthur said Virgin would also tap into the cargo expertise of its alliance partners such as Singapore Airlines, Etihad Airways and Air New Zealand as it built up its cargo unit. In the wash-up of the Virgin contract ending, Toll signed a fiveyear deal to be a freight customer of Qantas, which now has the three biggest players in the Australian freight sector on its books, given existing deals with Australia Post and TNT.

“It is a great week for Qantas freight,” Qantas international and freight chief executive Gareth Evans told the Australian Financial Review. “Virgin have not only lost the domestic volumes, they have lost the company that marketed their freight business. ” On July 9, Virgin appointed John Mason as the general manager commercial of its cargo unit.

Jetstar plans shakeup of regional NZ aviation

Air New Zealand looks set to receive some new competition on regional routes with Jetstar announcing plans to launch turboprop operations from December.

The Qantas-owned low-cost carrier said on June 18 it would introduce five 50-seat Bombardier Q300s to connect yet-to-be determined regional NZ centres to its current domestic NZ network of Auckland, Wellington, Christchurch, Queenstown and Dunedin.

QantasLink’s Eastern Airlines Australia will operate and manage the Q300 fleet in NZ, Jetstar said. Routes and frequencies are expected to be announced in September, following Jetstar NZ’s visit to regional centres for talks with airports, governments and business groups.

Hamilton, Rotorua, New Plymouth, Napier, Palmerston North, Nelson and Invercargill are listed as potential new destinations. Qantas chief executive Alan Joyce, who made the announcement in Auckland alongside NZ Prime Minister John Key, said regional communities were “calling out for more choice and lower fares on regional routes in New Zealand because there’s a lack of competition”.

“We’re answering that call bylaunching Jetstar flights to regional New Zealand, making air travel more affordable for people who live outside the main centres and boosting tourism and the economies of these areas,” Joyce said in a statement.

“These new regional destinations will connect with the broader Qantas Group network, including both Qantas and Jetstar flying across the Tasman, to make these parts of New Zealand more accessible to international travellers. ” Jetstar currently has nine Airbus A320s flying domestically within NZ, across the Tasman and to the Pacific Islands. The first trans- Tasman flights started in 2005, while domestic services began in 2009. Currently, Jetstar has crew bases in Auckland and Christchurch.

Jetstar group chief executive Jayne Hrdlicka promised fares would “drop considerably on the regional routes where we’ll operate”.

“We have made travel more affordable for New Zealanders flying between the main centres.

Now we’re bringing our passion for affordable travel to thousands of new Jetstar travellers in the regions, whether they are flying for leisure or business,” Hrdlicka said.

Prime Minister Key said Jetstar’sannouncement was good news.

“This will create jobs, mean cheaper fares and more choice for New Zealanders and our international visitors, and will provide a welcome boost to regional economies,” Key said in a statement.

“Extra air links will help connect regional New Zealand with the world and the main centres, making it easier to do business and for Kiwis and tourists to get around the country. ” Currently, Air NZ dominates NZ regional routes with its fleet of 17 Beechcraft 1900Ds, 11 ATR 72‑500s, seven ATR 72-600s and 23 Bombardier Q300s.

In November 2014, Air NZ said it would move all regional flying to either 50-seat Dash 8 or 68-seat ATR 72 aircraft and withdraw all its 19-seat Beechcraft aircraft by August 2016 as part of a restructure of its regional operations.

Air New Zealand chief sales and commercial officer Cam Wallace said the airline was ready for Jetstar’s entry on regional routes.

“We’ve had two years to get ready for this fight and we believe we are,” Wallace told Scoop. co. nz on June 18.

“We now think the business is in a good space to be able to compete vigorously with the right fleet and a very effective cost base. ” Jetstar will join low-cost carriers such as Malindo in Malaysia, Nok Air in Thailand, Lion Group’s Wings Air in Indonesia and WestJet in Canada with turboprop operations. And Cebu Pacific Air in the Philippines announced an order for 16 ATR 72-600s and options for 10 more at the Paris Airshow to add to the eight of the type already in its fleet.

In November 2014, Qantas said it would shed four Q300s from its Australian operations as part of a cost-cutting move.

And to further entice travellers to make the switch to the Orange Star, passengers on Jetstar NZ domestic flights will earn a minimum of 400 Qantas frequent flyer points on all fare types.

Previously, members of Qantas Frequent Flyer had to pay for a ‘Plus’ or ‘Max’ bundle on top of the base fare to earn points on Jetstar NZ flights.

Meanwhile, two NZ airlines have announced plans to offer regional RPT services based out of Nelson, with Kiwi Regional Airlines due to launch RPT flights from late September and Originair expected to start flying in August. Qantas to offer staff one-off bonusQantas has allocated $90 million to pay its employees a one-off bonus to recognise their efforts in turning around the airline group.

The bonus payment will be made to all Qantas Group including Jetstar employees whose collective agreements included an 18-month wage freeze, Qantas said on July 3. The payment, worth five per cent of their base annual salary, would be made after the company handed down its 2014/15 full year results on August 20 and be booked in its 2015/16 accounts.

Those staff who have yet to finalise a new enterprise bargaining agreement will also be eligible for the bonus should their new agreement include an 18-month wage freeze.

Qantas chief executive Alan Joyce said the airline group’s staff had made a big contribution to improving the company’s long-term competitive position and in delivering on the three-year cost reduction transformation plan.

“The rapid turnaround of the Qantas Group has only been made possible through the dedication and hard work of all our people,” Joyce said in a statement. “Our ability to make these bonus payments reflects a bright future for the Qantas Group, provided we stay focused on fully delivering the transformation program that has brought us this far. ” The three-year transformation plan has targeted $2 billion of savings by 2016/17. Qantas said it expected to have achieved $875 million in savings by the end of 2014/15. The forecast was unchanged from the airline’s investor day in May.

Up to 28,000 Qantas staff were eligible for the bonus, which does not cover those employees on management bonus schemes.

Qantas, American get interim authorisation for expanded alliance

Qantas has begun selling tickets for its new Sydney- San Francisco service after receiving provisional approval from Australia’s competition watchdog for an expanded alliance with American Airlines.

The Australian Competition and Consumer Commission (ACCC) has granted Qantas and American interim authorisation for the tie-up, which has been expanded to include Qantas’s return to San Francisco and the start of American’s new Sydney- Los Angeles service with its own Boeing 777-300ERs.

“The ACCC considers that granting interim authorisation is likely to lead to additional capacity on the Sydney to Los Angeles route, and increased capacity and competition on the Sydney to San Francisco route,” ACCC Commissioner Jill Walker said in astatement on July 16.

“This is likely to result in benefits to passengers that wish to use these services. Further, granting interim authorisation is unlikely to have any permanent impact on the market that could not be reversed in the event final authorisation is not granted. ” Although Qantas and American had an existing alliance that the ACCC approved in September 2011 for five years, the pair sought reauthorisation of a new agreement that included a revenue-sharing component to reflect American’s entry on trans-Pacific routes with its own metal and Qantas’s return to San Francisco.

Air NZ had, unsuccessfully, called on the regulator to deny interim authorisation, arguing in its submission to the ACCC there was no compelling reason for it to be granted.

The ACCC said interim authorisation was not indicative of whether or not final authorisation would be granted.

Qantas’s San Francisco schedule is typical of most of its North American services, with a daytime departure from Sydney and an overnight return from the US.

American’s Los Angeles-Sydney flight timings were yet to be released at the time of publication.

Qantas International chief executive Gareth Evans said the feedback from customers on the return to San Francisco has been very positive and welcomed the ACCC’s interim authorisation.

“Our corporate customers in particular have told us they look forward to saving about four hours each way by not having to connect through Los Angeles,” Evans saidin a statement.

The ACCC said it would proceed to preparing its draft determination, with a decision expected in August/ September.

Qantas and American Airlines launched their new services on June 9 and shortly afterwards lodged their submission to both the ACCC and US Department of Transportation (DOT), arguing the proposed deepening of their alliance would benefit consumers and allow the pair to compete “aggressively and effectively” with the other carriers flying between the US and Oceania.

American, which last served Australia with its own metal more than 20 years ago, said previous equipment and labour agreement limitations meant it was unable to serve Australia, and therefore unable to enter into a fully integrated alliance with Qantas.

However “those constraints have been removed”, paving the way for American to return Down Under.

“The proposed alliance promotes, and is no way adverse to, the public interest,” American said.

Together, the pair will operate 45 return flights a week from Australia (Brisbane, Melbourne andSydney) to the US mainland (Dallas/ Fort Worth, Los Angeles and San Francisco). Qantas also flies to Honolulu, as well as between Los Angeles and New York.

Figures in its submission showed Qantas carried 45. 9 per cent of all passengers between Australia and the US in 2014. The percentage included those flying on its low-cost affiliate Jetstar, which serves Honolulu.

The next largest carrier in terms of passengers carried in 2014 was Virgin Australia at 12. 6 per cent, followed by United Airlines (10. 1 per cent) and Delta (5. 0 per cent).

Qantas said neither it nor American could serve trans-Pacific routes alone, given the high number of connecting passengers travelling beyond the gateway cities. The Qantas submission showed on average 52 per cent of passengers on its flights from Australia to the US mainland were headed to destinations other than Los Angeles and Dallas/ Fort Worth.

“The success of Qantas’s trans- Pacific services remains dependent on accessing the breadth, depth and efficiency of the American network and sales and distribution channels in the US, Canada and Mexico,” Qantas said.

“The success of American’s new service will similarly be dependent on utilising Qantas’s Australian sales and distribution channels and domestic network. ” Hawaiian Airlines has asked the ACCC, should it approve the partnership, to ensure Qantas offered non-aligned carriers access to behind gateway cities on reasonable commercial terms.

“Such a condition would ameliorate the anticompetitive effects that would otherwise result,” Hawaiian said in its submission.

The airline, which flies to Auckland, Brisbane and Sydney from its Honolulu hub, said approved joint-ventures or alliances made it more difficult for Hawaiian to reach arm’s-length, procompetitive codeshare agreements with international airlines given the exclusivity arrangements that exist.

Other groups, such as the Department of Infrastructure and Regional Development, Tourism Australia and the Australian Federation of Travel Agents, have told the ACCC they supported the expanded alliance.

Airbus Group Australia Pacific acquires Safe Air

Air New Zealand has signed a conditional agreement for the sale of its aviation maintenance, repair and overhaul (MRO), design and manufacturing subsidiary Safe Air to Airbus Group Australia Pacific.

Safe Air’s main facility is in Blenheim, but the business also has staff based at RNZAF bases Ohakea and Whenuapai, Auckland and Melbourne. The company has around 200 employees, and is responsible for RNZAF P-3K2 Orion and C-130H Hercules airframe, engine and propeller maintenance. Its significant propeller overhaul business also has as clients New Zealand and Australian regional airlines and the RAAF.

“Safe Air’s reputation, skill-set and outlook are all strong and closely align with Airbus Group,” stated outgoing Airbus Group Australia Pacific managing director Dr Jens Goennemann. “We have worked with Safe Air in the past, and for us, bringing the company into Airbus strengthens our position and potential in New Zealand. ” Air New Zealand chief operations officer Bruce Parton stated that the airline had been exploring opportunities to secure a solid future for Safe Air for some time.

“Our history with Safe Air spans more than four decades, and it is importantto us that we ensure its success in the future,” said Parton. “Airbus Group is highly regarded in the aviation industry, and as a world-class military service provider is closely aligned with the services Safe Air undertakes. ”

RAAF P-8 long-lead item and simulator contracts signed

Two separate contracts signed in the past month have offered an indication on how the RAAF’s acquisition of the P-8A Poseidon is gathering pace.

On June 30, a US Department of Defense statement detailed that Boeing has been awarded a contract for the procurement of long-lead items for the manufacture of the P-8A Poseidon thatincludes four RAAF aircraft. The US$359 million modification to a previously-awarded advance acquisition contract also covers 25 aircraft for the US Navy. It is the second contract covering long lead items for RAAF P-8As.

Meanwhile, the previous day CAE announced Boeing had ordered simulator hardware for four additional P-8A operational flight trainers, two of which are for the RAAF’s P-8A training system. The RAAF operational flight trainers are scheduled for delivery to RAAF Base Edinburgh in late 2017, CAE stated.

The RAAF is set to receive eight Poseidon aircraft, with an option for four more subject to the outcomes of the 2015Defence White Paper. Deliveries are scheduled to begin in 2017.

RSAF extends BAE Tamworth flight training contract

BAE Systems Australia has been awarded an extension to its contract to support the Republic of Singapore Air Force (RSAF) Air Grading Centre (AGC) and Flying Training Institute (FTI) from the company’s Flight Training Academy located in Tamworth, NSW.

BAE Systems stated that it will continue to provide the RSAF with aircraft, purpose-built training facilities, instructor training, student accommodation and recreational facilities untilthe end of 2019. The RSAF is aiming to increase the number of students undertaking air grading from 220 to 240 annually.

The announcement is positive news for BAE’s Tamworth operations, given that it is widely understood within the Defence industry – even if government has yet to make an official announcement – that the company has been unsuccessful in its bid for the RAAF’s AIR 5428 pilot training project. The teaming of Lockheed Martin, Pilatus and Hawker Pacific is understood to have won the AIR 5428 project, and that would see the ADF basic flying training currently provided by BAE Systems at Tamworth move to East Sale in Victoria.

No F-35Bs forRAN LHDs?

A proposal to operate the STOVL F-35B variant of the F-35 Joint Strike Fighter off the RAN’s new LHD amphibious assault ships has been dropped, according to a report in the Australian Financial Review.

Prime Minister Tony Abbott had asked Defence to evaluate operating F-35Bs from the LHDs as part of the Defence White Paper deliberations, but that proposal was recently dropped on the basis of cost and complexity, according to the report by the Australian Financial Review’s defence writer John Kerin.

“There were just too many technical difficulties involved in modifying a ship which takeshelicopters to take fighter jets and it is also very expensive,” the report quotes a source as saying. “You can safely say it has been dropped. ” The two LHDs, the recentlycommissioned HMAS Canberra and the soon-to-be delivered NUSHIP Adelaide, are based on Spain’s Juan Carlos I, which was designed to accommodate AV‑8B Harrier STOVL jets, and as such feature a ski ramp. But the Canberra and Adelaide would still require extensive modifications to allow them to embark and operate F-35Bs at sea, including new heatresistant deck treatments, approach landing aids and modifications to the ships’ aviation fuel storage and weapons bunkerage.

The Australian Navy has not operated fixed wing aircraft at sea since the retirement of the aircraft carrier HMAS Melbourne in 1982.

The White Paper is expected to be publicly released in late August.

RAAF Base Richmond welcomes the C-27J

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In one of his last official duties before stepping down as Chief of the Air Force, Air Marshal Geoff Brown has welcomed the arrival of the RAAF’s first Alenia Aermacchi C-27J Spartan in Australia.

AIRMSHL Brown, whose term as Chief of Air Force ended on July 3, said the C-27J would provide a great replacement for the Caribou, which was retired in 2009.

“It gives us excellent tactical lift and allows us to provide support and sustainment to our land forces across the entire spectrum of operations,” AIRMSHL Brown told guests during the arrival ceremony at RAAF Base Richmond on June 30.

“This is a formidable aircraft and Australia got it right when we chose it to fill the gap left by the Caribou. ” AIRMSHL Brown, who described the arrival of a new aircraft type as a cause for celebration and satisfaction,noted the C-27J was able to operate from 1,900 airfields around Australia and strengthened the Australian Defence Force’s airlift capability by increasing its ability to move troops, equipment and supplies.

The first C-27J, A34-001, arrived at RAAF Richmond from prime contractor L-3 Com’s Waco, Texas facility on June 25.

The delivery flight took nine days as the aircraft made stops in Seattle, Alaska (twice), Japan, Guam, Papua New Guinea and Townsville before touching down in Richmond.

Australia has ordered 10 C-27Js, which will be based at Richmond while facilities at their permanent home at RAAF Base Amberley are built.

The fleet will be operated by 35 Squadron, with initial operational capability (IOC) scheduled for 2016. Final operational capability (FOC) is expected to occur in December 2017and coincide with the relocation of 35SQN to Amberley, where Air Mobility Group’s C-17s and KC-30s are based.

“It is good to be able to hub all the aeroplanes in the one spot up at Amberley,” AIRMSHL Brown told reporters at the conclusion of the official speeches.

“That is pretty much our plan. It gives us good reach to the rest of Australia from Amberley as well. ” On the future for Richmond, AIRMSHL Brown said: “I think the amount of infrastructure we have got here at Richmond, Richmond will be here as long as we have got the C-130Js. ” Training for the airlifter began in December 2014 when the first RAAF technicians arrived in Waco with aircrews joining their colleagues in Texas in early 2015.

New CAF aims for a culture that “rewards innovation”

Air Marshal Gavin ‘Leo’ Davies assumed command of the Royal Australian Air Force on July 3, taking over from retiring Chief of Air Force Air Marshal Geoff Brown in a ceremony in Canberra.

AIRMSHL Davies, formerly Deputy Chief of Air Force and a one time F-111 pilot, formally began his tenure as CAF during the change of command ceremony held outside the Defence Department’s Russell Offices.

“Over time you will make your judgements over what kind of Chief I am. But if it gives you a clue, my office wall is covered in photos of people rather than aircraft. I hope that this will come to symbolise my priorities over the next four years,” AIRMSHL Davies told the ceremony.

“What do I mean by that? Firstly,I think our aircraft fleet is in great shape. We have a modern, balanced, potent inventory. It is the best we’ve ever assembled. I commend my predecessor Geoff Brown for his sterling efforts in setting those conditions for success. To maximise the effect of those systems we need to empower our people. We need to create a culture that encourages adaptation to rapid changes and which rewards innovation in our workforce at every rank and in every mustering. ” AIRMSHL Davies joined the RAAF in 1979 and served as a navigator on P-3B and P-3C Orions. He completed pilot training in 1987 and in 1988 was posted to Amberley to fly the F-111C.

The new CAF then flew an exchange tour on USAF F-111Ds from 1990 to 1992, and served as executive officer of 1SQN from 1997, commanding officer of 1SQN from 2002, and as officer commanding 82WG from 2004. In 2006 AIRMSHL Davies worked as Director Combat Capability at Air Force Headquarters, before deploying to the Middle East Area of Operations to work in the Combined Air Operations Centre. In 2008 he returned to serve as Director General Capability Planning at Air Force Headquarters before being posted as Australia’s Air Attache to Washington in 2010. He returned from the US and assumed the role of Deputy Chief of Air Force in January 2012.

Air Canada launches new Brisbane-Vancouver route

Brisbane Airport will welcome a new airline in 2016 when Air Canada launches direct services between Vancouver and the Queensland capital.

Air Canada will serve Brisbane three times a week with Boeing 787-8s, with the flights starting on June 17. It will be the only direct flight between Brisbane and Canada and the airline said it intended to boost the frequency to daily subject to obtaining the necessary government approvals.

The Canadian carrier currently flies daily between Sydney and Vancouver, primarily with777-200LRs but sometimes with the larger 777‑300ER.

China Southern thickens Australia schedule

China Southern has scheduled extra flights to Brisbane, Melbourne, Perth and Sydney ahead of the summer season.

The Skyteam member is adding a fourth weekly flight to Perth from its Guangzhou hub from July 16 until October 26, at which time it will introduce a fifth service that will operate until March 2016.

Meanwhile, Melbourne will go from 10 to 14 flights a week in September, before increasing further to 18 flights a weekfrom December until March.

China Southern also plans to boost its Guangzhou-Sydney service to triple daily between December and March, while Brisbane will have a daily service to Guangzhou, up from five times a week currently, between October and March.

China Airlines to launch Taipei-Melbourne-Christchurch from October

China Airlines will add a third Australian port to its route network from October when it starts service to Melbourne from its Taipei hub. The Skyteam member will operate a Taipei-Melbourne-Christchurch routing three times aweek with Airbus A330 aircraft, with the first flight taking off October 25. China Airlines will have local pickup rights on the Melbourne-Christchurch sector. Currently, China Airlines flies operates Taipei-Brisbane-Auckland, Taipei-Sydney-Auckland and Taipei-Sydney-Christchurch with a combination of A330 and Boeing 747 aircraft.

Fiji Airways appoints new CEO

Current Air Mauritius chief executive Andre Viljoen has been appointed as the new boss of Fiji Airways. Viljoen, who has been in charge at Air Mauritius since 2010 and has threedecades’ experience in the airline and tourism industries, will commence in his new role by October 2015, Fiji Airways said in a statement on June 23. The Fiji government, which is the airline’s major shareholder, welcomed the appointment of a new chief executive to replace Stefan Pichler, who left to become Airberlin’s chief executive in February.

Virgin to suspend Abu Dhabi either side of Christmas to refit 777 fleet

Virgin Australia plans to temporarily suspend flying between Sydney and Abu Dhabi either side of Christmas while its fleet of five Boeing 777-300ERs are fitted with new business class seats and a refreshed premium economy cabin.

The cabin upgrades are expected to be completed in two stages, with the first between October and December and again between February and April, according to notices issued to travel agents in June.

While the reconfiguration takes place, Virgin will drop its three times a week VA29 Sydney-Abu Dhabi and reciprocal VA30 Abu Dhabi-Sydney operation, with affected passengers rebooked on alliance partner Etihad Airways’ services on the city pair.

And as Etihad does not have a premium economy cabin, passengers booked in that class will have the option to upgrade to business class for $1,000 per one-way sector, or receive a $390 refund to travel in economy.

Travel agents were also told Virgin has cancelled two Los Angeles- Brisbane flights due to the scheduled upgrade of the 777s, with VA8 not operating on October 26 and February 1, the notice said. Affected passengers would be accommodated on other services via Sydney, or able to change their travel dates, for no charge.

In recent years it has not been uncommon for the Abu Dhabi route to be dropped, including as recentlyas between February and April 2015, when Virgin took out its 777s for scheduled heavy maintenance conducted in Singapore.

Virgin released some pictures of its new premium economy cabin on board the 777 on June 22. The airline is reducing the number of premium economy seats on the big Boeing twin to 24 seats, from 40 currently, and removing the existing bar for passengers seated in the cabin between business and economy.

A Virgin spokesperson told Australian Aviation the existing Recaro seats featured in premium economy will be completely reskinned with new upholstery.

The seat pitch will increase to 41in, from 38in currently. And passengers will be able to charge their devices with a USB outlet at each seat, and receive amenity kits with REN Skincare products.

While the premium economy barwill be removed, passengers will have access to a self-serve “larder” for food and drinks throughout the flight. And Virgin has promised premium economy travellers will have a “plated meal service inspired by business class”, with wines from the business class selection.

Virgin Australia chief customer officer Mark Hassell said the airline would offer the best premium economy experience between Australia and the US.

“We understand that premium economy guests want to arrive at their destination feeling refreshed and taken care of,” Hassell said in a statement.

“We have therefore designed a more spacious and comfortable premium economy cabin and product, with a service that many other airlines reserve for their business class.

“The premium economy cabin itself will be more spacious andcomfortable, with more legroom than any other Australian airline and new cushioned seating to make the journey more restful. ” Virgin launched its new business class seats for its Airbus A330-200 and Boeing 777-300ER widebodies in August 2014, which feature direct aisle access for every passenger in a reverse herringbone layout.

The Tangerine London-designed and B/E Aerospace-manufactured seats were due to be fitted on the 777 fleet at the same time the premium economy cabin was reconfigured.

Virgin had hoped to have the first of its six A330-200s, which primarily operate domestically between Perth and Australia’s east coast capitals, flying with the new business class by March. However, the rollout on the A330s has been pushed back to August.

MAS cuts Australian frequencies in latest round of network changes

Malaysia Airlines (MAS) is dropping flights to Brisbane and reducing frequencies to other Australian ports from the start of August in the latest round of network changes as part of the airline’s transformation plan.

The oneworld alliance member will cease operations to the Queensland capital from August 8, ending a daily service currently operated by Airbus A330-300 aircraft.

Meanwhile, MAS’s Kuala Lumpur-Perth offering will be cut to a daily service, from 12 times a week currently; Melbourne and Sydney will be reduced from three times a day to twice a day, respectively; and Adelaide will be trimmed to four times a week. All changes were due to take place from the beginning of August. “Malaysia Airlines has revised its flight network in Australia to focus on profitable destinations and services as part of the restructuring program that owner Khazanah, Malaysia’s sovereign fund, commenced last year,” a MAS spokesperson said in an emailed statement.

MAS is the second airline to withdraw from Brisbane in recent times, after Garuda Indonesia dropped its Brisbane-Denpasar service in January.

The changes to its Australian network are on top of service reductions to various Asian ports, including Guangzhou, Ho Chi Minh, Hong Kong, Manila, Siem Reap, Taipei and Yangon. And the airline’s daily flight to Male has been cancelled.

New MAS chief executive Christoph Mueller has been tasked with turning around the ailing carrier, which has suffered heavy financial losses in recent years and faced a double tragedy in 2014, when MH370 disappeared enroute from Kuala Lumpur to Beijing and MH17 was shot down over Ukraine on the way from Amsterdam to the Malaysian capital.

In addition to other recent frequency cuts – for example services to Frankfurt ended in May – MAS was looking to offload at least two of its six-strong fleetof Airbus A380s and dispose of other excess aircraft in a bid to return to profitability.

MAS has issued termination notices to 6,000 of the airline’s 20,000 staff, with the remaining 14,000 offered jobs as part of a rebranded “new” airline due to take flight on September 1.

Mueller acknowledged recently MAS was currently “too big”.

“But we are working on that,” Mueller told delegates at the International Air Transport Association (IATA) annual general meeting on June 8.

The new MAS chief executive also raised the prospect of a new hybrid product when the airline relaunched in September, with a full-service offering on businessheavy destinations and a more limited service for more leisure-oriented markets. “One thing I can say we will not offer full-service offering to markets where they seek only safe transportation from A to B,” Muller said. “As opposed to markets where we fly four and a half hours on shorthaul flights and everybody wants to have a warm meal and is prepared to pay for it. ” “So you may call us a hybrid model, in fact. We will serve the markets that we find. Demand is very individualised. ” For example, Mueller said the airline could sell a business class ticket but allow passengers to opt out of access to the airline’s airport lounges or the ability to earn frequent flyer points.

While Mueller told delegates there was “some interest” in two of MAS’s A380s, he declined to offer any details.

Virgin names new frequent flyer boss as CFO steps down

Virgin Australia is looking for a new CFO with the announcement that Sankar Narayan is to leave the company in September.

Narayan – pictured below – was appointed Virgin chief financial officer in January 2011 and previously worked at Fairfax Media and Malaysia-based Astro All Asia. He will step down in late September 2015to take a position at accounting software company Xero.

Virgin said executive general manager of group finance Geoff Smith will be acting CFO.

Meanwhile, Virgin Australia has appointed a marketing veteran with three decades’ experience as the new boss of its Velocity frequent flyer program.

Karl Schuster will commence as Velocity chief executive on October 1, replacing Neil Thompson.

Schuster will come to Velocity from Aimia Inc, where he has been president for Asia Pacific of the marketing and loyalty analytics business for the past nine years.

He also previously worked for Carlson Marketing Group in Australia before it was taken over by Aimia in 2009.

Airbus sticks to its guns on global demand for A380

But Boeing says VLA market is shrinking

Airbus believes the market for very large aircraft (VLA) such as its double-decker A380 is a growing one as long-haul travel increases and slot-constrained airports leave airlines little choice but to upgauge on existing routes to meet demand.

The Toulouse-headquartered manufacturer published its Global Market Forecast (GMF), a look at aircraft deliveries between 2015 and 2034, at the Paris Airshow on June 15.

It says 32,585 new aircraft deliveries will be needed over the next two decades to meet the growing demand for air travel. The figure is up from the prediction of 31,358 deliveries in its 2014-2033 GMF.

Of those orders, 13,000 will be for replacement, with the remainder to grow the world’s passenger and freighter fleet from about 19,000 currently to 38,500 by 2034.

And Airbus remains confident demand for very large aircraft such as the A380 will continue to grow, predicting 1,550 new deliveries in that segment over thenext 20 years, up from 1,501 in the 2014-2033 GMF.

Airbus said 70 per cent of traffic growth until 2034 would come from the airlines’ existing networks, increasing the number of aviation “mega-cities” from 47 today to 91 by 2034.

Currently, Melbourne and Sydney fall into the “megacity” category as both have more than 10,000 daily long-haul passengers. By 2034, the pair was expected to be joined by Brisbane, Perth and Auckland in this part of the world.

“You cannot just increase frequency, you have to have larger and more efficient aircraft,” Airbus chief operating officer for customers John Leahy said in a statement.

“That’s called the A380. ” Airbus said network efficiencies would also drive the “proliferation of new VLA destinations”.

Ten years after its first flight, the future of the world’s largest airliner – which has not received any new orders so far this year and has seen existing orders either cancelled or deferred – is hotly debated.

Currently, total A380 firm orders stand at 317, withmore than half of these already delivered.

In contrast to Airbus’s upbeat outlook on the VLA segment, Boeing’s 2015-2034 Current Market Outlook (CMO) published on June 11 predicted a shrinking market for aircraft such as the competitor’s A380 and its own 747-8.

Boeing expected just 540 new aircraft deliveries of large widebodies over the next 20 years, a reduction of 80 aircraft from the 620 forecast in the Chicago-headquartered manufacturer’s 2014-2033 CMO.

Most of the downward change was tipped to come from Asia, where demand for these very large aircraft was reduced to 140 frames over the next 20 years, 70 aircraft below the 2014-2033 prediction of 210.

Boeing has traditionally regarded the very large aircraft segment as a small market, believing just a handful of airlines around the world had the route structures and capabilities to successfully utilise an aircraft with more than 400 seats.

And Boeing Commercial Airplanes vice president of marketing Randy Tinseth said many of those routes had now been filled by existing large aircraft. Moreover, airlines were increasingly attracted to new small and medium widebodies given their compelling operating economics.

“We recognise that, we make adjustments to the forecast that are in line with the realities of the market that we see today and developing in the future,” Tinseth told reporters during a conference call discussing the CMO. “It’s been a market segment frankly that we have overestimated demand. ” Overall, Boeing revised up its market forecast for aircraft deliveries over the next 20 years, with the rise of low-cost carriers, the Chinese market and global economic growth fuelling demand for passenger travel and cargo volumes.

The Boeing 2015-2034 CMO said 38,050 aircraft would be delivered over the next two decades, with 58 per cent to be used for growth and the remainder as replacement of older airframes. The forecast represented US$5. 6 trillion worth of aircraft at list prices and was up 3. 5 per cent compared with Boeing’s previous market outlook, which tipped 36,770 new aircraft deliveries in the two decades to 2033.

Where both Boeing and Airbus agree is in the single-aisle segment, comprising aircraft such as the Airbus A320 and Boeing 737, which will dominate deliveries over the next two decades.

Airbus’s GMF said 22,927 new single-aisle deliveries were expected between now and 2034, representing about 70 per cent of all units to be delivered. Moreover, single-aisle aircraft represented 45 per cent of the estimated US$4. 9 trillion worth of aircraft heading to airlines over the next 20 years.

CASA boss seeks to get the balance right

Civil Aviation Safety Authority (CASA) director of aviation safety (DAS) Mark Skidmore says the regulator faces the constant challenge of striking the right balance between maintaining appropriate safety standards without placing too much of a burden on operators. “Looking back we can see times when the pendulum has swung both ways, possibly too much at times,” Skidmore told Flight Safety Australia on the 20th anniversary of CASA’s formation on July 6.

“I see my role as making sure the CASA of today and into the future gets the balance right. An aviation safety regulator cannot take a ‘light’ approach to safety, nor can we overburden the aviation community with regulation that has unintended consequences or fails to deliver the right outcomes,” the CASA DAS said.

“CASA may never be perfect but we will keep working to deliver safe skies for all. ” Both CASA and Airservies Australia were created on July 6 1995 with the splitting up of the then Civil Aviation Authority’s (CAA) responsibilities, leaving CASA as the nation’s air safety regulator and Airservices to manage air traffic control for Australia’s civil airspace.

Two decades on from its creation, Airservices is now responsible for four million flights a year carrying about 90 million passengers.