Preflight

Virgin said yields – or average airfares per passenger across both its Virgin and wholly-owned low-cost unit Tigerair Australia – increased in the quarter, compared with the prior year, while underlying cost per available seat kilometre, excludingforeign exchange and fuel, were lower.

“The group has achieved a significant turnaround in financial performance for the first quarter of the 2016 financial year,” Virgin chief executive John Borghetti said in a statement.

“This result reflects our continued success in driving revenue per available seat kilometre and yield growth, while controlling costs.

“Based on current market conditions, the Virgin Australia group is on track to return to profitability for the 2016 financial year and report a return on invested capital in line with its cost of capital. ” Underlying profit before tax, which the airline regarded as the best indicator of financial performance, came in at $8. 5 million, compared with a $45 million underlying loss in the prior corresponding quarter.

Virgin said Tigerair had earnings before interest and tax (EBIT) of $400,000 in the first quarter of 2015/16, which was an improvement of $20. 2 million from the prior year on a standalone basis. The company said the turnaround was led by “significant improvements in unit revenues and cost efficiencies”.

“Tigerair Australia has further improved performance, delivering its first profit for the September quarter,” Borghetti said.

Virgin has said previously Tigerair was expected to achieve full year profitability in 2015/16.

The release of financial resultswas also accompanied by Virgin’s first quarter operating statistics, which showed the airline carried fewer passengers and had fewer seats available for sale in both its domestic and international networks.

Virgin carried 4. 28 million domestic passengers in the three months to September 30, down 4. 2 per cent from the prior year.

Meanwhile, the airline cut capacity measured by available seats 1. 9 per cent, with available seat kilometres (ASK) down 0. 7 per cent.

Despite the reduction in capacity, load factors were down 2. 5 percentage points at 74. 7 per cent in the quarter.

It was a similar story on Virgin’s international network, with passenger numbers (down 3. 4 per cent), available seats (down 4. 1 per cent) and ASKs (down 4. 3 per cent), all contracting compared with the prior year.

However, load factors on Virgin’s international flying rose 1. 7 percentage points to 84. 8 per cent.

International capacity was likely to decline further over the rest of 2015/16 as Virgin exited the Perth-Phuket route in January 2016 and handed over its Perth-Bali, Adelaide-Bali and Melbourne-Bali services to Tigerair in March 2016.

In terms of Tigerair, Virgin’s wholly-owned low-cost carriercarried 965,159 passengers in the three months to September 30, a 7. 2 per cent improvement from the prior corresponding period. Revenue passenger kilometres were up 4. 4 per cent, while the airline’s capacity growth, measured by ASKs, rose 9. 9 per cent.

With capacity growth running a bit ahead of passenger demand, Tigerair load factors fell 4. 6 percentage points to 85. 6 per cent.

There is likely to be ongoing capacity growth from Tigerair in the period ahead as a result of the previously mentioned start of international flights to Bali and given the airline recently took delivery of its 14th Airbus A320, to be based in Sydney.

Meanwhile, Virgin has received the green light to extend its alliance with Etihad Airways for a further five years.

In a draft ruling, the Australian Competition and Consumer Commission (ACCC) said it planned to re-authorise the alliance that was first established in 2011 and led to Virgin commencing flights on its own metal between Sydney and Abu Dhabi.

“The ACCC considers this alliance would likely result in continued public benefits through promoting competition and enhancing the products and services offered to customers travelling between Australia and the Middle East and onward destinations throughout Europe,” ACCC chairman Rod Sims said in a statement.

“The ACCC accepts that Virgin would not operate services to Abu Dhabi if this partnership with Etihad did not exist. Virgin could not offer a viable service on the route without offering the beyond connections available on Etihad’s network within the alliance. ” Under the partnership, the two airlines have extensive codeshare arrangements on each other’s networks, giving Virgin access to Europe, the Middle East, North Africa and elsewhere, while Etihad gains offline destinations in Australia, New Zealand and the Pacific. There are 89 codeshare destinations under the alliance.

There are also reciprocal frequent flyer benefits such as lounge access, priority check-in and extra luggage allowance.

However, the two carriers do not share revenue under the alliance.

Virgin flies between Abu Dhabi and Sydney three times a week with Boeing 777-300ERs, while Etihad also has 11 flights a week on the route. The Abu Dhabi-based carrier also serves Melbourne, Brisbane and Perth.

Badgerys Creek draft master plan, EIS released

The federal government has released the draft airport plan and environmental impact statement (EIS) for the proposed Western Sydney Airport at Badgerys Creek, paving the way for construction to begin in 2016.

The documents cover indicative flight paths, noise contours, the building requirements for stage one of the airport’s development and the long-term vision for the facility.

Deputy Prime Minister and Minister for Infrastructure and Regional Development Warren Truss says the release of the airport plan and EIS marked the start of a 60-day public consultation period.

“The Australian Government is committed to a robust assessment of environmental, social and economic impacts to ensure the proposed airport can deliver the best outcomes for the Western Sydney community,” Truss said in a statement on October 19. “The draft airport plan and the draft EIS have been released together today to ensure that all issues surrounding the airport development can be considered simultaneously.

“We are moving to a position where construction of the new airport could be underway next year, with the airport commencing operations in the mid-2020s.

“With Western Sydney’s population set to balloon from two million to three million people over the next two decades, a Western Sydney airport is about planning for that future. ” The federal government “declared” Badgerys Creek as the site for a second airport in the Sydney basin in August, which ensured further planning work on the airport could proceed and airspace around the proposed facility was protected from potential high-rise buildings.

Government maps and images showed arrivals and departures on the initial single runway would be on a south-west, north-east orientation. Arriving flights will be directed to north west of the airport and be between 5,000-7,000 feet when over Penrith and 2,000ft near Bankstown when landing on Runway 23.

Meanwhile, departing aircraft on Runway 05 would be at about 5,000ft by the time they were over Bankstown and at 10,000ft by the time they were at RAAF Base Richmond if headed north, or at 10,000ft between Camden and Picton if heading south.

Sydney Airport, which has a right of first refusal (ROFR) to build and operate a second airport within 100km of the Sydney CBD, welcomed the release of the draft airport plan and EIS in a statement released to the Australian Securities Exchange.

“The ROFR has a number of stages and since 30 September 2014 Sydney Airport has been engaged in formal and informal consultation with the Australian Government on the airport development and operation.

The ROFR process is ongoing,” Sydney Airport said.

Public submissions are due by Friday, December 18.

American to say Kia Ora to Auckland

American Airlines chief executive Doug Parker says the trans-Pacific market is big enough to absorb the coming surge in capacity over the next year.

The oneworld alliance member will break Air New Zealand’s stranglehold on direct NZ-US flights in June 2016 when it commences nonstop flights between Los Angeles and Auckland with Boeing 787-8 Dreamliners in cooperation with Qantas, which will codeshare on the route.

The service will operate daily apart from certain off-peak periods and bring competition on a route Air NZ has had on its own since Qantas pulled out in 2012.

“The good news is this is a growing route, there is room for both of us and there will be room for both of us forever as it expands,” Parker told reporters in Wellington on November 11.

“The vast majority of customers on the American Airlines flight will originate in the United States, we know that, and that’s where we will be able to bring the most customers from. ”Currently, Air NZ offers 18 flights a week to Los Angeles, daily service to San Francisco and four flights a week to Vancouver from its Auckland hub.

However, the trans-Pacific market is undergoing a period of significant change.

In addition to American’s entry to NZ, the US flag carrier is also touching down in Sydney in December with nonstop service from Los Angeles with its Boeing 777-300ERs.

Both its Sydney and Auckland flights are operated in cooperation with alliance partner Qantas, with the pair seeking approval for an expanded joint-business agreement that also includes a revenue sharing arrangement.

Qantas too is expanding in North America and is scheduled toreturn to San Francisco just before Christmas.

Air NZ also has two new routes to the Americas starting in December, with inaugural flights to Houston and Buenos Aires.

And rounding out the picture is United, which is starting Auckland-San Francisco flights in partnership with Air NZ that kick off in July 2016.

Parker said American’s onboard product on the 787, an aircraft he described as a perfect fit for the route given its operating economics and passenger numbers, compared well with Air NZ’s offering, having flown into the country on the New Zealand flag carrier.

“As I was flying in overnight I noted how good the service is but I also knew that we can compete,” Parker said.

“The only thing I think we can’t match is that safety video they have with the All Blacks, but we will come up with something. ” American’s 787-8s are configured with 28 fully flat business class seats, 55 main cabin extra seats and 143 economy seats for a total of 226 seats.

Parker also left open the possibility of more new flights in the future, with Dallas/Fort Worth the most likely.

The American chief executive said it was a “close call” whether to launch flights to NZ from Los Angeles or Dallas/Fort Worth.

Ultimately, the decision centred on market research showing a majority of travel to NZ from the US originated on the US west coast and that the 787-8 could not operate the Dallas/Fort Worth-Auckland route.

With 787-9s arriving in the American fleet at the end of 2016, Parker said “things like DFW would be in the future at some point in time. ” “We will start with where the existing demand is and where we have an aircraft that better meets that demand,” Parker said.

Qantas chief executive Alan Joyce added: “Eventually I think the Auckland-Dallas will work. But we keep on saying we have to walk before we run, we need to bed down what we have in LA. Opportunities for us growing the market in the long term are huge here. ” The new American offering would also enable travellers to more easily combine Australia and NZ in the one itinerary through Jetstar’s domestic NZ network of 11 destinations, aswell as the Flying Kangaroo’s 40 daily flights across the Tasman.

Joyce said NZ was a high growth market, with the number of visitors up about 11 per cent over the past year.

“It is a market that we think can grow even further than that,” Joyce said.

“When you join our great networks with our new service, customers will be able to fly from Dunedin to Disneyland, Napier to New Orleans and Wellington to Washington. ” The response from Air NZ, whose share price fell about four per cent the day of the American announcement, was immediate.

Even though American had not loaded any fares or made tickets available for sale, Air NZ dropped its Auckland-Los Angeles one-way fare to NZ$499, compared with about $NZ785 normally.

Air NZ chief executive Christopher Luxon told the NZ Herald on November 11 American’s arrival in Auckland has been expected, with the new flights to grow tourism.

“We’re ready for it and we look forward to it,” Luxon told the newspaper.

New Zealand Transport Minister Simon Bridges has given his approval to the expanded alliance between Qantas and American for the next five years.

“What is incredibly clear is how good this is from a competition perspective,” Bridges said on November 11.

“Competition, ultimately is very good for consumers. ” Bridges noted the arrival of Hawaiian Airlines on Auckland- Honolulu, which was previously served only by Air NZ, had resulted in lower fares for travellers.

Further, the Minister expected American’s flights to stimulate new demand and increase the number of travellers, as well as deepen business links, between the two countries.

Qantas and American were also seeking the green light from regulators in Australia and the US for their partnership.

In July, the Australian Competition and Consumer Commission (ACCC) gave interim approval to the new arrangements. However, the US Department of Transportation (DOT) has asked both carriers to supply more information regarding city pairs, marketshares and other data.

Joyce and Parker were confident the necessary approvals would be in place by the time American starts flights to Sydney on December 19.

“This one is as close as you can get to a slam dunk because of the consumer benefits that can occur,” Joyce said.

Parker added: “We expect we will receive that approval. We don’t expect any issues there. ”

Air NZ buys 15 ATR 72-600s, shows strategic regional hand

Air New Zealand will become the world’s third largest ATR operator after placing a fresh order for 15 additional ATR 72-600 aircraft for delivery from late 2016.

Eleven aircraft are earmarked to replace the airline’s nine- to 15-year-old ATR 72-500 fleet, while the remaining four are to enable expansion within regional New Zealand, Air NZ said on November 5.

The new aircraft are in addition to Air NZ’s existing ATR 72-600 order, which sees seven due for delivery between now and mid-2016.

Replacing the -500 series aircraft – which are very similar in passenger experience terms to the -600 apart from the slightly larger bins on the newer turboprops – will be an advantage for fleet commonality reasons, as well as the markedly upgraded avionics featured in the -600 models.

Air NZ’s Christchurch-based subsidiary Mount Cook Airline operates the aircraft on both regional routes and on some offpeak flights on the mainline trunk from Wellington to Christchurch.

The slower speed of the ATR 72, compared with the similarly-sized Q400 turboprops from Bombardier, is not a marked disadvantage for the Star Alliance member given the small size of the country, the distance between regional hubs and regional airports, and the clearly attractive economics of one of the world’s most efficient aircraft.

“The extra four 68-seat ATR 72‑600s that we are adding to our fleet will enable us to operate up to an additional 600,000 seats into the New Zealand regional market annually. This latest investment will further allow us to maintain our low fare price and high frequency leadership,” Air New Zealand chief executive Christopher Luxon said.

The reference to price and frequency would seem to point to the airline’s market positioning, defending itself against Jetstar’s inaugural regional turboprop services, which start in December.

Air NZ’s yield management is impressive, and by carefully walking the line between lead-in fare prices and availability windows, the airline may well be able to defend its pricing against frequent criticism from regional New Zealanders.

Frequency, however, is certainly a point in Air NZ’s favour, which will be important for the corporate market in New Zealand’s regions.

Despite a 2015 average 15-minute departure time performance of just under 90 per cent, mainline Jetstar NZ still has a reputation for delays and cancellations, and the high utilisation of the low-cost carrier’s Airbus A320 fleet has proven a problem in the past. The issue for Jetstar in terms of passenger perception is not so much that many flights are delayed, but that when the schedule is affected the capacity to return to normal operations is less than Air NZ’s.

“Once these new aircraft arrive we will operate a fleet of 29 ATR aircraft, the third largest ATR fleet in the world, which is testament to the breadth and depth of our regional network,” Luxon said.

Qantas expects “significant improvement”

Qantas is expecting to deliver a bumper 2015/16 first half profit as the airline group benefits from lower fuel prices and its cost-cutting initiatives amid modest capacity growth in both the domestic and international markets and a mixed Australian economy.

The positive outlook statement was provided to shareholders by Qantas chief executive Alan Joyce at the company’s annual general meeting in Perth on October 23.

“We expect a significant improvement in first half performance,” Joyce told shareholders.

“Trading for the first three months of the financial year has improved relative to the prior period. ” Qantas reported net profit of $203 million in the first half of 2014/15, posting a triumphant return to profitability following a $225 million loss in the prior half.

In terms of the outlook, Qantas has maintained domestic capacity guidance of between zero and one per cent in the first half of 2015/16.

“We see mixed performance in the Australian economy as it transitions away from the peak of the mining boom,” Joyce said.

“Demand from the resources sector continues to taper, and we have adjusted capacity and our cost base in Queensland and WA to reflect that, which includes working closely with our mining sector customers to support their needs.

“Our expectation is that softness in the resources sector will continue and we have reduced our footprint accordingly.

“However, the Australian economy is not limited to what is happening in mining and resources. Other sectors of the economy are strengthening, including tourism, financial services, professional services, education, construction and infrastructure. ” Regarding overseas services, Joyce noted international competitor capacity growth had slowed to about two per cent in the current half with a lower Australian dollar.

“We expect that growth rate to stabilise at around four to five per cent from the second half of financial year 2016 – in line with historical averages,” Joyce said, adding most of that growth was coming from markets such as China.

Qantas said in its traffic and capacity statistics for September it expected a fuel bill of $1. 76 billion in the first half of 2015/16, a $400 million reduction compared with $2. 16 billion in the prior corresponding period.

For the full year, fuel was expected to fall within a range of $3. 61 billion to $3. 85 billion. This was down from an actual fuel bill of $3. 9 billion in 2014/15 and lower than forecasts published in August of between $3. 64 billion and $3. 94 billion.

Joyce said Qantas expected to deliver about $450 million of cost reductions as part of its $2 billion transformation plan in the full 2015/16 year.

Qantas chairman Leigh Clifford said the company today was a “more efficient, productive and focused business” and one that had strong customer satisfaction.

“There is positive momentum at the moment, and while Qantas operates in a tough and highly competitive market, our portfolio strategy, transformation program, and disciplined hedging approach are all designed to deal with volatility and make Qantas sustainably profitable,” Clifford said.

New security training program for regional airports

“There is plenty of room for us to improve the system” says Truss

Deputy Prime Minister and Minister for Infrastructure and Regional Development Warren Truss says the government plans to release a new training program designed to assist regional airports to better manage their security processes.

Slated to begin in 2016, the new regional aviation security awareness training package would be available to the 150-odd security controlled airports in small, lower risk categories as well as the 48 airports that have screened air services such as Bundaberg, Devonport, Geraldton and Tamworth, Truss said.

The package would assist airports to understand the current risk environment, assist them to plan responses to future threats and improve general security awareness.

“While there is no evidence of a specific threat to regional aviation, it is likely to remain a potential terrorist target for the foreseeable future,” Truss told delegates at the Regional Aviation Association of Australia (RAAA) national convention in the NSW Hunter Valley on October 23.

“The nature of this threat will continue to evolve and so it is essential for government and industry to continue the efforts to deal with it.

“Regional and remote airports are vital to Australia’s prosperity and wellbeing and the new training initiatives will support their efforts to provide a secure aviation environment. ” On airport security generally, Truss said he hoped the advancements in equipment would enable passenger screening to be “easier and less intrusive”.

Further, the Deputy Prime Minister said there was some consideration to eliminating the screening of arriving passengers at some major capital city airports who had flown in from regional airports where they had already been through security checks.

“The equipment in the country is just as good. In some cases it is better and because of the numbers involved in the checking is probably more reliable,” Truss said “There is plenty of room for us to improve the system.

“The security training package . . . will address how we can better train the people who are involved and hopefully deliver a smoother and faster service to the people who travel through the airports. ” In another initiative, Truss said the government would shortly establish a business stakeholder group whose purpose would be to improve aviation and maritime connections in northern Australia.

The stakeholder group was one of the initiatives contained in the government’s White Paper on developing Australia’s north published in June, with representatives to come from aviation and the maritime sector, as well as the wider business community.

“The group will work closely with regional aviation stakeholders to identify impediments to aviation services and develop practical solutions to further growth in the north,” Truss said.

“It comes in part as a response to concerns about the cost of travel to northern Australia. ” The government was also undertaking an aviation workforce skills study to better understand the future needs of Australia’s aviation workforce and ensure there was a sufficient pipeline of pilots and engineers to meet the demand for new aircraft and the forecast growth in air travel.

The Aviation Industry Consultative Council helped draw up the parameters of the study, while the Transport and Logistics Industry Skills Council will undertake the work in consultation with industry. Truss said the study was expected to be completed early in 2016.

Boeing’s 2015-2034 Pilot and Technician Outlook expects Australia, New Zealand and the countries of the South Pacific to require an additional 12,000 new pilots and 13,000 new maintenance engineers (technicians) over the next two decades to meet the growing demand for air travel.

Meanwhile, Truss said the proposed airport at Sydney’s Badgerys Creek would provide opportunities for regional airlines.

Also, the scheme that guaranteed access for regional airlines at peak times at Sydney Airport would remain in place at Mascot once the Badgerys Creek airport was operational some time in the mid-2020s.

“Kingsford Smith Airport will remain an essential transport hub for regional NSW. It will be the airport of choice for people who actually want to do business in Sydney or visit its major tourist attractions, but the reality is it will reach its capacity and we have to have other ways of dealing with the growth in airport traffic,” Truss said.

“The government is committed to retain the existing protections for regional airline access to Kingsford Smith Airport and ensuring that it operates as a gateway for people coming to Australia and for those wanting to visit the capital city of NSW. ”

Virgin to sell entire Fokker 50 fleet

Virgin Australia’s regional arm is disposing of its eight Fokker 50s and adding four Fokker 100s and an Airbus A320 as part of fleet and operational changes in Western Australia.

The 46-seat Fokker 50s have been used to serve West Australian government-regulated routes to Albany, Esperance and Ravensthorpe in the state’s south-west, as well as regular public transport flights to Geraldton and charter and fly-in/fly-out services to other centres in the state.

However, with Virgin Australia Regional Airlines (VARA) confirming in September it would not bid to continue flying to Albany, Esperance and Ravensthorpe in the current tender, as well as the changing nature of the mining sector given the transition from mining construction to production, the Fokker 50s have become surplus to requirements.

“Following an extensive review, the decision has been made to decommission and dispose of the airline’s eight Fokker 50 aircraft in the first half of 2016 due to a negative commercial outlook for its F50 operations,” Virgin said in a statement.

“The Virgin Australia Group continually reviews our operations, including our fleet, to ensure optimal utilisation and to meet customer demand. ” It was anticipated that the Perth-Geraldton route would be upgraded to the Fokker 100. Moreover, the cabin interiors of all 14 of the 100‑seat aircraft were currently being upgraded.

The four additional Fokker 100s, including two of the type purchased from Alliance Aviation in May, are already in service, as is the one additional Airbus A320, a Virgin spokesperson confirmed to Australian Aviation.

While there is a net reduction of three aircraft in the VARA fleet with the disposal of eight Fokker 50s offset by the acquisition of four Fokker 100s and one A320, the introduction of larger aircraft represented an overall increase in capacity.

The addition of the bigger Fokker 100 and A320s also reflected the withdrawal of some smaller mining players, who used the Fokker 50 to fly their workers to the mines, and the ongoing need of larger capacity aircraft for the major miners.

Virgin will cease flights to Albany, Esperance and Ravensthorpe on February 27 2016, when its current contract with the WA government ends.

Regional Express and Skippers Aviation were understood to have applied for the Perth-Albany and Perth-Esperance routes, with the WA government expected to announce the results of the tender before the end of 2015.

Alliance to keep Fokkers flying for next decade

Alliance Aviation Services says it has plans to ensure its all-Fokker fleet keeps flying for the next decade.

The primarily fly-in/fly-out and charter operator has 15 Fokker 100s, eight Fokker 70LRs and five Fokker 50 turboprops, having sold two Fokker 100s to Virgin Australia in the past year that were surplus to requirements.

Alliance managing director Scott McMillan said there was still available capacity to be extracted from the existing fleet, particularly “away from the traditional mid-week demand peaks”.

“Our fleet strategy remains simple as we continue to develop our F70 capability to meet the changing needs of our customers in the pursuit of operational and cost efficiency,” McMillan told shareholders at the company’s annual general meeting on November 9.

“As we look to the future, I know that Alliance has the right fleet for its service offering. It must therefore work with its partners to prolong the life of these reliable aircraft.

“Alliance continues to look for ways to provide cost-effective solutions to support our reliable Fokker fleet for the next eight to 10 years. ” In August, the company announced it was closing its Brisbane heavy maintenance base and sending its all-Fokker fleet to Lufthansa subsidiary Austrian Technik Bratislava for regular heavy maintenance checks. The move reduced capital expenditure by about A$20 million a year, Alliance said at the time.

McMillan said the partnership with Austrian Technik was performing well.

“We will continue to focus on revenue opportunities, invest in aircraft maintenance and secure access to a pipeline of spare parts to support the flying activities of the Fokker fleet for many years to come,” he said.

A320 production increases

Airbus has confirmed plans to open an additional A320 production line in Hamburg as part of moves to increase the production rate of its popular family of single-aisle aircraft to 60 a month by the middle of 2019.

The manufacturer’s executive vice-president for programs Didier Evrard said growing demand for single aisle aircraft and an “impressive” backlog for both the current models of the A320 and the A320neo (new engine option) was behind the decision to rampup production.

“I am confident that we have the highest-skilled teams and the right solutions in place to gradually move to the highest production rate ever achieved in civil aviation history,” Evrard said.

As well as an additional production line at Airbus’s Hamburg facility, the company is also integrating some of its cabin furnishing work for the A320 Family at its Toulouse final assembly line, which would harmonise the production process across all of Airbus’s A320 final assembly lines around the world.

Currently, Airbus conducts final assembly for its A320 family of aircraft at Hamburg (Germany), Toulouse (France), Tianjing (China) and Mobile (US), with the four sites building 42 aircraft a month. It flagged a rate increase to 60 a month in June 2015.

The company has already confirmed plans to increase the production rate to 50 aircraft a month by early 2017.

KC-30 completes F-35 trials, uses boom on operations for the first time

Recent milestones mark growing maturity of KC-30 boom capability

A RAAF KC-30A tanker transport has returned from the US after the successful completion of refuelling trials with the F-35 Joint Strike Fighter.

Operating from Edwards Air Force Base, California the KC-30 made a total of 479 ‘dry’ and 24 ‘wet’ contacts with a US Air Force F-35A, transferring more than 95 tonnes of fuel using its 17-metre-long Advanced Refuelling Boom System (ARBS).

In all the aircraft flew 12 sorties between September 23 and October 26.

The KC-30 was crewed by personnel from 33 Squadron, while a flight test team from the Aircraft Research and Development Unit, supported by flight test instrumentation engineers from the Aerospace Systems Engineering Squadron, was integrated within the USAF Test Centre to work on a dynamic test program, Defence stated.

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“These trials are another important step in building KC‑30A capability and the results will inform the training practices of current and future RAAF personnel on both aircraft types,” KC-30A transition and receiver clearance manager Wing Commander Grant Kelly said.

“Air-to-air refuelling will be an important ‘force multiplier’ for the F-35A fleet, considerably boosting their range and endurance, or allowing them to carry bigger payloads. ” Under current plans Australia is acquiring 72 F-35As to replace the RAAF’s F/A-18A/B ‘classic’ Hornet fleet.

Separately, a RAAF KC-30 has refuelled a RAAF E-7A Wedgetail AEW&C aircraft on operations for the first time.

The mission over Iraq in support of Coalition operations against Islamic State in late October saw the KC-30 use its ARBS to refuel the Wedgetail in the first time a RAAF KC-30 had used its boom on operations.

“Being able to use the KC-30A boom on operations to refuel an aircraft such as the Wedgetail is aforce multiplier for Australian air power and Coalition air operations,” Commander of the Australian Air Task Group, Air Commodore Stuart Bellingham, said.

“Proving this mode of air-to-air refuelling adds to the list of aircraft types that our KC-30A can now support, contributing to another in-demand capability of the coalition air campaign. ” The 17m long ARBS is capable of offloading fuel at a rate of 4,500 litres per minute.

“During this mission we transferred 34,750lb of fuel in about 15 minutes – the equivalent of refuelling 300 family sedans at a rate of less than three seconds per car,” the KC-30’s unnamed air refuelling operator said in the statement.

“We look forward to this becoming a normal part of our operations to assist the Wedgetail’s vital mission of providing airborne early warning, command and control above Iraq and Syria. ” The KC-30’s ARBS boom had a troubled early life – during flight testing a KC-30 bound for the RAAF lost its boom in an incident while refuelling a Portuguese F-16 in January 2011.

But in March the then Defence Materiel Organisation (DMO) announced that the KC-30 acquisition project – AIR 5402 – had been removed from its Projects of Concern list, after an extensive development and testing program resolved issues with the ARBS.

33SQN operates five KC-30As from RAAF Base Amberley. Two more KC-30As, to be converted from ex-Qantas A330-200 airliners, are due to join the RAAF KC-30A fleet in 2018.

Future KC-30 boom refuelling trials are planned with the C-17 Globemaster transport and the P-8A Poseidon maritime surveillance aircraft (which has been selected to partially replace the RAAF’s AP‑3C Orions).

CASA taskforce to deal with new licensing regs

DAS requires “real solutions”

Australia’s Civil Aviation Safety Authority (CASA) will establish a dedicated team of full-time staff to address issues raised by the suite of new licensing regulations.

There will be 26 people assigned to the taskforce, whose job it will be to find solutions to issues identified with CASA’s Regulations Parts 61, 64, 141 and 142, CASA said in a statement on November 10.

CASA said the taskforce, which was expected to begin work immediately, would initially focus on reviewing transition arrangements and prioritising issues.

“The taskforce will ensure known or likely safety risks continue to be effectively addressed by the licensing regulations,” CASA said.

“At the same time it will make sure unnecessary costs are not imposed by the regulations and that they are not an impediment to participation in aviation or potential future growth. ” In addition to the taskforce, CASA has also invited representatives from the nation’s key aviation industry groups – The Australian Aviation Associations Forum, the Regional Aviation Association of Australia, the Australian Helicopter Industry Association, the Aircraft Owners and Pilots Association, the Australian Business Aviation Association, the Royal Federation of Aero Clubs of Australia and the Aerial Application Association of Australia – to join a new advisory panel.

The panel will also include representatives from the regular public transport and mustering sectors, flying schools, and the tertiary education sector.

CASA director of aviation safety Mark Skidmore said the taskforce and advisory panel would work “intensively” to address unintended consequences in the licensing suite.

“CASA has already addressed many concerns that have been identified in the new licensing regulations but I understand more needs to be done,” he said.

“This is a priority and that’s why I need a dedicated team of people within CASA working full-time on the issues.

“Just as importantly we need advice and guidance from the aviation community to prioritise actions and verify that successful solutions have been found.

“The advisory panel will meet formally as required and at other times I expect its members to be in close contact with the CASA taskforce as work progresses.

“I require real solutions to the issues with the licensing suite as quickly as they can be delivered. ” CASA said it had already addressed more than half of the 98 licensing issues that came up via feedback from industry and the aviation community.

The aviation safety watchdog has also announced a one-year extension of the transition period for Parts 141 and 142, which cover flying training. The transition now has to be completed by August 31 2018.

“The additional transition time will give CASA more time to arrange a smooth transition by providing additional guidance material and for identified issues to be resolved,” CASA said.

The Australian Aviation Associations’ Forum recently expressed concern with the slow pace of change at CASA and the cost of compliance with new regulations.

And Australian Helicopter Industry Association president Peter Crook has urged his colleagues to “take a stand against the unfair treatment of our industry by the regulator and stop the distraction caused by the mismanaged regulatory reform process”.

“We have been working hard to protect the industry’s existence but it seems CASA is not listening, heeding our suggestions or accepting our offers of assistance,” Crook wrote to AHIA members.

Regional Aviation Association of Australia (RAAA) chairman Jim Davis (pictured) told the RAAA national convention he believed the industry was rebuilding the relationship that was damaged over the previous six years prior to Skidmore’s appointment.

Davis, who is also a director at Regional Express, said recent new CASA directors meant the aviation safety regulator board had relevant industry experience and “knows what it is doing and is determined to exercise proper governance”.

Meanwhile, the federal government’s almost universal acceptance of the recommendations from the Aviation Safety Regulatory Review (ASRR), a new statement of expectations to CASA from Deputy Prime Minister and Minister for Infrastructure and Regional Development Warren Truss and a reinstatement of Just Culture by CASA also offered further encouraging signs. “The challenges are many but with the new attitude in the CASA executive we believe they can be overcome.

There is a light at the end of the tunnel and it is not the approaching train,” Davis told delegates during his opening address at the RAAA national convention at the NSW Hunter Valley on October 22.

“However, there is a long way to go and a lot of work to be done before we get out of that tunnel. ” Despite the encouraging signs, Davis said the past year has also been frustrating for regional aviation as drought and the downturn in the mining sector hit hard along with the burden of “massive new regulation”, which had been the main focus of the RAAA’s activities over the previous 12 months and would continue to be the case in the period ahead.

While the problem was a “legacy of the previous CASA administration”, that was little comfort to RAAA members who had to cope while trying to run their day-to-day operations and make a profit, Davis said.

Davis highlighted the rising cost of training pilots and engineers had choked off the supply of new staff into the industry.

“I have long waited for the day when I could stand up here, talk about the challenges to regional aviation, and not mention the Civil Aviation Safety Authority,” Davis said.

“Today is not that day. ” With Airservices chairman Sir Angus Houston in the audience, Davis also expressed concerns about the air traffic management provider’s proposed new five-year pricing agreement, which would “load up regional centres with high charges while providing some minor relief at the major airports”.

“This will benefit large international carriers like Emirates and Singapore Airlines at the expense of Australian regional operators,” Davis said.

“We fail to see the logic in this as it could lead to the reduction or cessation of services in some regional ports. ” Houston, speaking immediately after Davis, welcomed the RAAA chairman’s open and frank assessment of the state of the industry and described his comments on pricing as “very precise and very focused”.

“I think it is important for people like me to hear that,” Houston said.

The Airservices chairman said pricing was a “very vexed issue”, noting a recent conversation with Etihad Airways chief executive James Hogan about the cost of air navigation services in Australia.

“I was in the Middle East not long ago and Mr Hogan from Etihad brought out his boxing gloves and gave me a hard time about the fact that he was supposedly funding everything that was happening in regional Australia,” Houston said.

“So there is a bit of a balance there. ”

Emirates adds cargo capacity to Australia

Demand remains “quite strong” says cargo chief

Emirates believes the lifting of sanctions in Iran and the easing of restrictions on Cuba represent good opportunities for its freight arm SkyCargo.

Closer to home, the rising demand for fresh meat in China should also support growth in the Australian outbound air cargo market in the years ahead, even with some struggles in the Chinese economy currently.

Those are the views of Emirates divisional senior vice president for cargo Nabil Sultan, who was in Australia recently to meet with local clients and get their perspective on market conditions.

Emirates SkyCargo has just added a fourth freighter service between Sydney and Dubai World Central (DWC) Airport, which operates on a triangular route via either Singapore or Hong Kong with Boeing 777F aircraft.

Sultan said there were many new commodity exports emerging in Australia and New Zealand, with livestock freight an area to watch.

“One of the things we have noticed recently is livestock moving into China,” Sultan told Australian Aviation in an interview on November 4.

“There is going to be massive demand in China for meat. ” And should the sanctions be lifted on Iran as once-frosty relations with the United States begin to thaw, that could spark the resumption of Australian exports to the Islamic republic.

“Iran could be a massive opportunity for Australia to start re-exporting meat into Iran whichused to happen before the sanctions and has stopped completely,” Sultan said.

Sydney is Emirates’ only Australian port which receives dedicated freight services. However, its passenger services to Adelaide, Brisbane, Melbourne, Perth, and Sydney – as well as to Auckland and Christchurch in NZ – carry belly cargo, and Emirates’ global alliance with Qantas does provide access to the rest of the country.

“Australia remains an important market for us and that’s why we continue to invest and commit additional capacity into the Australian market,” Sultan said.

“We’ve seen our volumes grow out of this market which clearly indicates that the demand is still there, it is quite strong.

“There has been depressed yield, partially because of the currency and so on, but other than that this market has done well. ” With the two airlines celebrating the two-year anniversary of their alliance in 2015, Sultan believes the period ahead represented a chance to consolidate the gains made over the previous 24 months as people from Qantas and Emirates bedded down the global partnership.

“Things have matured now and I think we are ready for maybe the next leap where we are able to capitalise on each other’s network and product offering and really work together to really extract quality cargo out of each market,” Sultan said.

“We are looking at optimising it from both our perspectives. It’s been quite interesting, very constructive and a win-win situation for both. ” Emirates has 15 dedicated freighters in its fleet comprising 13 Boeing 777Fs and two 747-400ERF freighters. All operate out of Dubai World Central (DWC) resulting in a split cargo hub that relies on good coordination, efficient processing and reliable transport links to move cargo between DWC and Dubai International Airport (DXB). Goods take between four and five hours to transfer from DWC to DXB, which are located about 70km apart.

Sultan said the lack of congestion at DWC compared with DXB was a big plus for Emirates Skycargo’s operations.

“We have flexibility on slot times for takeoffs and landings to schedule our operation based on our commercial need,” he said.

Figures from the Bureau of Transport, Infrastructure and Regional Economics showed Emirates’ Australian operations carried a little over 10,000 tonnes of cargo in August 2015, the latest month for which data is available.

This represented about 12. 5 per cent of all Australian air freight in the month, was second only to Singapore Airlines (17. 7 per cent)and level with Qantas.

On the international scene, International Air Transport Association (IATA) data showed Middle East carriers posting healthy increases in both demand and capacity in September, with freight tonne kilometres up by 7. 5 per cent compared with the prior corresponding period and capacity measured by available freight tonne kilometres rising by 12. 6 per cent.

This compared with flat growth in freight demand and capacity in the Asia Pacific and declines on North American carriers.

IATA chief executive Tony Tyler says the global trend in cargo was fragile.

“The weakness in air cargo markets largely tracks anemic growth in trade,” Tyler said in a statement on November 4.

Sultan attributes the growth in air freight among Middle East carriers to demand from infrastructure projects in the region and a growing retail industry fuelled, in part, by the strong tourism push.

Emirates SkyCargo has been able to redeploy some capacity from China and other points in Asia to markets such as Africa and North America amid the slowdown in China.

However, China does remain a hugely important piece of the air cargo pie.

“Let’s not kid ourselves, China remains . . . the world’s factory, it is the largest export market in the world therefore it is critical and strategic for exporting things into the rest of the world,” Sultan says.

“Everyone is waiting to see some form of consistency out of China. The indications I’m afraid are not quite positive. The last three months we’ve seen a decline in their exports roughly by about seven per cent, eight per cent.

“Their decline to Europe is almost by 15 per cent which is unheard of and to the US their exports have declined by about two per cent despite the fact that the US economy has been doing fairly well.

“We still need to see how big is this issue and whether China will be able to rebound back from this downturn. It will be quite interesting. ” In North America, US efforts to normalise relations with Cuba could also spur a new wave of consumerism.

And Sultan says Emirates was in a good place to be a player in that market, given the start of passenger service between Dubai and Panama City – one of the world’s longest flights – with Boeing 777-200LRs beginning in February 2016.

“I’m sure Cuba is going to be another emerging market that is going to want to have everything as it opens up to the world’s economy and therefore a lot of demand for commodities from across the world. ”