Preflight

Qantas chief executive Alan Joyce has confirmed the board would consider further capital returns, including a potential dividend, in 2016/17.

Shareholders have not received a dividend since 2009. Any consideration of a dividend would also take into account the company’s level of franking credits, given its tax losses in previous years.

“The board will get together at the end of the full year and look at the appropriate ways of capital management. All the options are still on the table, and the company will look at if it’s optimal to issue a dividend or if it’s optimal to do another buyback,” Joyce told reporters in early June.

“We have the ability to issue around a nine cent dividend with the franking credits we have. Given the cumulative tax losses, particularly going back a few years, we are rapidly going through them because the company is making good profits. ” The benefits of lower fuel prices, a stable domestic capacity environment and reduced cost base thanks to job cuts and improved operational efficiency has spurred Qantas to what is forecast to be a $1. 1 billion statutory net profit after tax for the 12 months to June 30 2016, according to a median of 10 analysts’ estimates.

The result, if in line with market consensus, would be more than double the $557 million net profit in 2015/16.

Meanwhile, underlying profit before tax, which removed one-off items and was regarded as the best indication of financial performance, was expected to come in at $1. 6 billion for 2015/16 according to market estimates, up from a reported $975 million in the prior year.

Despite the big improvement from the prior year, there are headwinds in the period ahead.

In April, Qantas said there was some softness in demand due to weaker consumer confidence and the uncertainty at the time in response to the federal election. As a result, Qantas put the brakes on domestic capacity growth over April to June in an effort to arrest falling revenue per available seat kilometre.

There is also more new international capacity from overseas carriers due to arrive later this year, particularly from Chinese carriers. Tourism Australia’s latest market update noted Hainan Airlines, part of HNA Group which has signed a strategic commercial alliance with Virgin, planned to serve Melbourne from Xian and Changsha from October, while Beijing Capital Airlines has scheduled Shenyang to Melbourne flights via Qingdao from September and Air China has filed applications to start daily Shenzhen-Melbourne services in October.

Further, oil prices have been rising from lows of about US$26 a barrel to be closer to US$50 a barrel in recent times.

And with the local market continuing to display signs of fragility amid turmoil in Europe from the recent Brexit referendum in the UK and the ongoing threat of terrorism, both Qantas and domestic rival Virgin Australia look set for a tricky period ahead.

In the six months to June 30, Qantas’s share price fell by 31 per cent from $4. 09 to $2. 77, although it has recovered slightly since, as analysts downgraded profit forecasts following the airline’s commentary on market conditions in April.

In contrast, the broader Australian stock market was down a little over one per cent over the same period.

“A lot of the benefit of that cheaper oil has rolled off and the pressure that we are seeing on airline prices is, not solely, but largely reflective of those increased energy costs,” CMC Markets chief market strategist Michael McCarthy said.

“That, and the concern that international business for airlines will be hurt by what is going on in the UK and Europe. ” Qantas and Virgin were certainly not alone in being out of favour on the share market. An International Air Transport Association (IATA) report noted global airline share prices had fallen 21 per cent since the start of 2016, with European carriers hit the hardest.

“The uncertainty of the Brexit vote, along with lingering impacts from recent terrorist attacks, has only added to existing investor concerns about the impact of falling unit revenues on profitability,” IATA’s Airlines Financial Monitor report said.

“All told, global airline shares made the worst start to a year since 2008, and have underperformed the wider equity market by 21 per cent so far in 2016. ” The profit estimates for Qantas stand in some contrast to the numbers over at domestic rival Virgin Australia, which was expected to post a statutory loss for 2015/16 when it delivered its full year results on August 5.

“Qantas took a lot of the pain a couple of years ago and are now getting the benefits. Virgin may still have some pain to go through,” McCarthy said.

Qantas, which has not offered profit guidance, was due to publish its 2015/16 results on August 24.

Cobham gets QantasLink contract extension

Cobham Aviation Services will fly Boeing 717 aircraft on behalf of QantasLink for a further 10 years under a new A$1. 2 billion contract extension.

The new deal, announced on July 4, has Cobham continuing to supply pilots and cabin crew for QantasLink’s fleet of 20 717s, as well as line maintenance engineering services in some locations.

Cobham said in a statement to the London Stock Exchange the 10-year contract was worth A$1. 2 billion.

QantasLink chief executive John Gissing said Cobham was an “expert operator” of the 717 in Australia.

“I’m pleased they will continue to provide safe operations and exceptional service to our customers in line with Qantas standards,” Gissing said in a statement.

“Cobham has also shown a commitment to deliver further efficiencies that align with the Qantas Group’s Transformation program. ” In addition to serving regional routes mainly in Western Australia, Queensland, the Northern Territory and to Canberra, Qantas has in recent years utilised the 717 fleet on other capital city services, such as Hobart to Melbourne and Sydney, and Adelaide to Sydney.

Most of the 717s feature a 125-seat all-economy layout while seven feature a two-class (12 business, 98 economy) configuration.

Cobham has flown 717s for QantasLink since 2005 and the company’s chief executive Peter Nottage said he was delighted to be able to extend the relationship with the regional wing of Qantas for a further 10 years.

“Qantas is a very important and long-term customer for Cobham and this is a significant contract extension, providing a valuable contribution and scale to our overall commercial passenger flying operations in Australia through 2026,” Nottage said in the Cobham statement to the London Stock Exchange.

The Qantas-Cobham relationship stretches back 25 years, given Cobham previously flew BAe 146 aircraft for QantasLink and Australian Airlines.

Cobham previously also performed heavy maintenance work on QantasLink’s 717s at its Adelaide base. However, Qantas took back that work in 2015 when it established a 717 heavy maintenance base in Canberra.

Qantas chief executive Alan Joyce said recently the airline was looking to buy the 717s it currently had on lease as those leases expired and was on the lookout for further acquisitions in what was a scarce market.

“We’ve been out there hunting for more,” Joyce told reporters on the sidelines of the International Air Transport Association AGM in Dublin in early June.

“They are a great aircraft. If there was a possibility of getting a few more of them, we’d be keen on them.

And while Joyce said he was open to the possibility of Embraer E-jets or Bombardier CSeries being the answer to the eventual replacement for the 717 or Fokker 100, that call won’t have to be made for a while.

“Obviously we are keeping an eye on the Embraers, the CSeries. They have the potential to be longer-term replacements but we are a long way away before we have to replace the 717s and the F100s,” Joyce said.

“The F100s have very low utilisation. That’s going to continue, that’s why we bought them. The capital costs are low. We believe that they have a good life ahead of them. We are actually buying 717s. We obviously believe they have a long life as well. ”

American, United touch down in Auckland

In the space of a week, both American Airlines and United commenced nonstop flights to Auckland, the former from LA, the latter from San Francisco.

American’s inaugural New Zealand service, flight AA83, operated by Boeing 787-8 N814AA, took off at about 2300 (local time) on June 23 from Los Angeles and landed in Auckland a little over 12 hours later just after 0620 Saturday June 25.

The inaugural service was greeted with a water cannon salute, while passengers and invited guests were met with a traditional welcome in the terminal.

The return service to Los Angeles is scheduled as an afternoon departure from Auckland for a morning arrival in Los Angeles.

American alliance partner and fellow oneworld member Qantas is placing its QF airline code on the new service as part of the joint-venture partnership between the two carriers.

The US carrier’s daily Auckland- Los Angeles offering breaks Air New Zealand’s monopoly on the route and follows the airline launching flights to Sydney with its own aircraft just before Christmas.

American vice president for global marketing Fernand Fernandez said Auckland was a destination the airline had “admired for a long time”.

“This new route is critically important for American’s strategic expansion in the Asia Pacific region and a key part of our partnership with Qantas,” Fernandez said.

Qantas International chief executive Gareth Evans said American’s daily service brought competition on the route for the first time in many years.

“The bigger, stronger partnership we’re building with American Airlines is all about giving our customers more options and better experiences, and we’re expecting that to translate into more tourism and trade for the New Zealand economy,” Evans said.

Qantas dropped its Airbus A330-200 Auckland-Los Angeles offering in May 2012.

Meanwhile, United has returned to New Zealand for the first time in more than a decade with the arrival of flight UA917 at Auckland Airport on July 2.

The San Francisco-Auckland service, operated by Boeing 787-8 N27908, landed in Auckland just before 0645 local time on July 2 after a 12 and a half hour journey from Northern California.

The aircraft was on the ground for about seven hours before taking off as the reciprocal UA916 back to San Francisco at about 1400.

The airline has said previously the new service would initially operate three times a week with Boeing 787-8s before increasing to daily from October, with the larger 787-9 Dreamliner.

United, which is flying to Auckland in partnership with fellow Star Alliance member Air New Zealand as part of a joint-venture revenue-sharing agreement, last served New Zealand in March 2003.

“Our customers wanted new ways to access New Zealand and destinations beyond and our relationship with Air New Zealand allows customers to plan seamless travel throughout the South Pacific,” United vice chairman and chief revenue officer Jim Compton said in a statement.

On the other side of the Tasman, United flies from Sydney to Los Angeles and San Francisco, as well as from Melbourne to Los Angeles. All its Australian services are flown with Boeing 787 equipment.

Virgin Australia hires aviation consultant to run ops

Virgin Australia has appointed a US-based aviation consultant to run its airline business under a new management structure.

The airline confirmed media reports that John Thomas, an Australian, would join Virgin as group executive of Virgin Australia Airlines, with responsibility for its domestic and international operations.

Based in Boston, Thomas was a managing director and partner of consulting firm LEK and head of Asia Pacific. The veteran executive also heads LEK’s aviation and travel business, according to the consulting firm’s website, and was a commercial instrument-rated pilot.

He is expected to start with Virgin in September.

“John has worked with many leading airlines on their business strategies for more than 25 years and has played a key role in personalising the customer experience and building new ancillary revenue streams in the US aviation market. John is also a keen recreational pilot,” Virgin chief executive John Borghetti said in a memo to staff, according to a report from The Australian Financial Review.

Currently, Virgin’s chief commercial officer Judith Crompton is responsible for alliances, network, revenue management and sales for the airline’s domestic and international network; chief operating officer Gary Hammes looks after the day-to-day running of Virgin mainline covering areas such as engineering, ground, flight and network operations, among other tasks; while chief customer officer Mark Hassell oversees product and service development, marketing, brand management, customer relations, lounges, cabin crew and customer service.

The Australian Financial Review reported the three executives would report to Thomas under the new management structure.

The appointment comes as Virgin moves to reduce costs and improve its financial performance through the withdrawal of aircraft and staff cuts.

Virgin Australia’s freighter aircraft take off

Virgin Australia has commenced its cargo operations with dedicated freighter aircraft ferrying parcels, food, documents and machinery for its major customer TNT and other clients.

The airline’s cargo business was launched in July 2015, when its eight-year contract with Toll ended and was not renewed. As a result, the selling and managing of the belly space in its passenger fleet of domestic and short-haul international aircraft was brought back in-house.

Its cargo unit was boosted with a five-year deal with TNT signed earlier in 2016 that has led to a fleet of dedicated freighter aircraft flown on behalf of Virgin by other operators and the opening of a cargo shed at Sydney Airport.

The first flights with those dedicated cargo aircraft kicked off on Monday July 4, with VH-PDW, a Convair CV-580, operating up and down Australia’s east coast and to Adelaide on behalf of Virgin by Pionair Australia.

At the same time, a Boeing 737-300F from Airwork also started flying between Melbourne and Perth. Some overnight freighter services have also been flown by Virgin’s Airbus A330-200 fleet.

A BAe 146-200QC, VH-SIF, flown by Pionair, started operating in mid-July, a Virgin spokesperson said, while a second BAe 146-200 was due to arrive from Europe in the next couple of months.

The Virgin spokesperson added the Boeing 737-300F would be operated until August, when it would be replaced with another 737 freighter, also to be flown by Airwork.

Virgin hoped its cargo division would bring in between $150 million and $200 million in annual revenue by 2017.

Meanwhile, Qantas’s dedicated freighter fleet of six aircraft for its new contract with Australia Post began flying on July 1.

The Australian reported the aircraft, comprising two Boeing 737-300Fs, three BAe 146-300Fs and one Boeing 737-400F, have been repainted into StarTrack livery.

Swiss takes delivery of first CS100

Bombardier has delivered the first CSeries CS100 to launch customer Swiss, with the newest entrant into the 100-149-seat market due to enter commercial service in mid-July.

Swiss’ inaugural flight with the CS100 was scheduled for July 15, with the aircraft, HB-JBA, to operate LX 638 departing Zurich at 1230 bound for Paris Charles de Gaulle.

Swiss chief executive Thomas Kluhr said the airline was proud to be the first operator of the aircraft.

“The aircraft performed exceptionally well during its acceptance flight, as expected,” Kluhr said in a statement.

“Along with the CS300 aircraft that we’ve also ordered, the C Series fleet will allow us to perfectly tailor our capacity to demand on various European routes, while providing an excellent travel experience for our passengers. ” Swiss has firm orders for 15 CS100s, with options for a further 30 of the type. The Lufthansa subsidiary also has orders for 15 of the larger CS300.

The aircraft planned to replace its Avro RJ100 fleet with the CSeries, as well as use the type for future growth. The Star Alliance member has configured its CS100 with 125 all-economy class seats pitched at 30in.

Bombardier Commercial Aircraft CSeries program vice president Rob Dewar said: “A new aircraft program like the CSeries aircraft comes around once in a lifetime and it’s a proud achievement that belongsto many. ”

COMAC ARJ21-700 enters commercial service

After years of delays, Commercial Aircraft Corporation of China’s (COMAC) ARJ21-700 regional jet has entered service with launch customer Chengdu Airlines.

The low-cost carrier’s first flight with the aircraft, registration B-3321, took place on June 28, with service from Chengdu to Shanghai. Local media reported the maiden flight took off from Chengdu Shuangliu Airport just before 0930 local time and landed at Shanghai Hongqiao Airport about two hours later, carrying about 70 passengers.

“Today is a big day for us and for the entire Chinese aviation industry as well,” Chengdu Airlines vice president Shuai Zhiyong said in a statement.

“We’re proud to be the launch operator of this new aircraft and feel this flight is a shining moment in aviation history for all of China as we fly the first regional jet manufactured in our own country into the sky.

“We believe this aircraft will bring good economics to our operation and great comfort to our passengers. ” Although about eight years late following 12 years of development, including six years of flight testing, the ARJ21-700 entry into service was regarded as a major breakthrough for the Chinese civil aviation sector given the aircraft was the Middle Kingdom’s first locally designed and manufactured civil turbofan regional jet.

The ARJ21-700 was powered by two GE CF34-10A engines. The aircraft received type certification from the Civil Aviation Administration of China (CAAC) in late 2014.

GE global vice president and president of GE Aviation Greater China region Weiming Xiang said: “We are proud to power this aircraft, and we are committed to provide our fullest support for the success of its operation. ” COMAC has received about 340 orders for the ARJ21-700 from lessors and operators in China, Indonesia, the US, Laos, Myanmar and the Republic of Congo.

Chengdu Airlines has firm orders for 30 ARJ21-700s and planned to use them on domestic routes from Chengdu to Beijing, Guiyang, Kunming, Nanjing, Shanghai, Wuhan and Xi’an. The airline has configured the aircraft with 90 seats.

Chengdu Airlines received its first ARJ21-700 in November 2015.

ARJ21-700 – Asian Regional Jet for the 21st Century – components such as the nose, fuselage, and tail were the same as those used on the Douglas DC-9 and McDonnell Douglas MD-80.

SIA, Virgin apply to renew alliance, flag use of data analytics to enhance customer experience

Singapore Airlines (SIA) and Virgin Australia say they will develop systems to better recognise their high value guests travelling on each other’s flights as they seek a 10-year reauthorisation of their alliance.

In their application to the Australian Competition and Consumer Commission (ACCC) to renew their alliance, SIA and Virgin flagged the use of data analytics to offer an improved customer proposition and services to travellers, helping increase passenger numbers and earned revenue.

“Over the next period of reauthorisation, the Applicants intend to work to further enhance the benefits available to high value and elite members, such as the implementation of automated high value guest recognition with reciprocal frequent flyer status automatically populated in various systems,” the application to the ACCC said.

“This will allow passengers to more easily accrue status benefits and be prioritised during disruptions. This will further enhance the alliance’s seamless travel proposition for guests across both airlines. ” One particular frustration raised repeatedly on frequent flyer forums has been the difficulty in selecting seats by passengers who purchased tickets for Virgin codeshare flights operated by SIA.

The ACCC first authorised Singapore Airlines and Virgin’s alliance in December 2011 for a five-year period. The partnership offered 124 codeshare destinations under their alliance covering Australia, Asia Pacific, Europe and South Africa, and involved coordination on pricing and revenue management, sales, distribution and marketing, as well as purchasing and procurement.

There were also reciprocal frequent flyer benefits such as priority boarding, priority check-in and priority luggage. Members of Virgin’s Velocity frequent flyer program and SIA’s KrisFlyer were able to earn and redeem points on eligible Virgin, SIA and Silkair flights.

The airlines’ application said the alliance had resulted in a 30 per cent increase in frequencies on Australia- Singapore routes and a 12 per cent rise in available seats from calendar 2011 to calendar 2015.

There were also new routes, including Silkair’s Singapore- Darwin and Singapore-Cairns services, while Virgin has boosted frequencies to SIA’s Australian gateways Adelaide, Brisbane, Melbourne, Perth and Sydney. And SIA is scheduled to commence Singapore-Canberra-Wellington flights from September.

The application said SIA and Virgin would focus on growing capacity on existing routes through using larger aircraft and adding extra frequencies in line with market demand.

“The alliance has been successful in a highly competitive environment, resulting in significant commercial benefits for the applicants and valuable public benefits,” the application said.

“Reauthorisation will enable the applicants to continue to provide a compelling joint offer to both leisure and corporate passengers in competition with Qantas and its alliance partners.

“Going forward, the applicants will be able to provide passengers with more destinations and frequencies and better products, leading to a further increases in choice and competition in the relevant markets. ” The application said the alliance had helped Virgin and SIA better compete against Qantas, particularly in terms of corporate accounts. However, figures highlighting the increase in revenues from corporate and government customers, as well as the number of accounts won and retained, over the past five years were redacted in the public version of the application.

“Singapore Airlines has seen substantial revenue growth over this period as a reflection of the acquisition of such corporate accounts,” the application said.

“Virgin Australia’s earned revenue has grown significantly over the last three years as a result of this growth in corporate accounts. ” The application said the top five beyond gateway destinations in Australia for SIA passengers were the Gold Coast, Hobart, Canberra, Ayers Rock and Townsville. Meanwhile, Virgin Australia passengers’ top five connections beyond Singapore were London, Delhi, Phuket, Ho Chi Minh City and Mumbai.

Virgin secures traffic rights for Hong Kong, Beijing

Virgin Australia has secured the necessary traffic rights to mount flights to Beijing and Hong Kong from June 1 2017.

The International Air Services Commission (IASC) has approved the Australian carrier’s request for 1,925 seats a week of capacity to China and seven flights a week to Hong Kong.

The determination, published on June 17, is valid for five years.

The daily flights to Beijing and Hong Kong would be operated with Airbus A330-200s as part of an alliance with China-based HNA Aviation, Virgin has said previously.

However, the airline is yet to confirm which Australian city the two new services would be flown from.

The IASC determination said the Australia-China route had grown by an average of 12 per cent a year over the past five years, adding the route was “highly competitive”.

“The Commission considers that Virgin Australia’s proposed operation of services between Australia and Beijing would provide more options to Australian travellers and promote further competition on the Australia-China route,” the IASC said.

Meanwhile, in its Hong Kong decision, the IASC noted BITRE figures which showed the Hong Kong route has grown by about four per cent per annum over the past five years.

Currently, Virgin places its VA airline code on Singapore Airlines’ (SIA) services from Australia to Hong Kong via Singapore.

In addition to traffic rights, Virgin will also need to obtain the necessary takeoff and landing slots at busy Beijing and Hong Kong airports.

Air NZ defers Auckland-Manila launch

Air New Zealand’s efforts to grow its Pacific Rim network have suffered a setback, with the airline delaying the start of nonstop flights between its Auckland hub and Manila.

The Star Alliance member said in April it planned to serve Manila from December with Boeing 767-300ER equipment. While flight schedules and a specific launch date were not disclosed at the time of the announcement, the airline said ticket sales would begin by the middle of the year.

However, those plans have now been shelved.

“Air New Zealand has elected to defer the launch of its direct service to the Philippine capital of Manila,” the airline said in a note to travel agents.

“Administrative delays in being able to make the new route available for sale, coupled with the traditionally longer booking window for this market, have led to the deferral decision.

“The service was to launch in December 2016, but has now been deferred until further notice. ” Currently, there are no nonstop flights between New Zealand and the Philippines. Philippine Airlines serves Auckland from Manila with a one-stop offering through Cairns using Airbus A320 narrowbodies. There are also other one-stop options through Sydney or various Asian hubs.

Alliance adds three extra aircraft

Alliance Airlines says it is adding three aircraft to its local operations in order to take advantage of market opportunities.

The company said one Fokker 70 and one Fokker 100 from the 21 aircraft Alliance purchased from Austrian Airlines in late 2015 would join the fleet, while another Fokker 70 currently in storage would be activated.

In November 2015, Alliance said it had acquired the entire Austrian Fokker fleet of 15 Fokker 100s and six Fokker 70s as part of a US$15 million deal that also resulted in the Lufthansa-owned subsidiary being a 12 per cent shareholder in the company.

At the time, Alliance said the transaction would help it diversify its operations into Europe, as well as secure a cost-effective long-term supply of parts for its all-Fokker fleet.

“Whilst not originally intended for the Australasian operation, market opportunities consisting of existing and future FIFO contracts, general and tourism charter services and geographic expansion has led to this amended strategy,” Alliance said.

Meanwhile, Alliance said it had purchased 16 Rolls Royce Tay 625-15 engines from KLM Cityhopper, which would be used as spare engines and spare parts for its Fokker 70 fleet or on-sold. The engines would be delivered over the next two years.

“This is the largest single global inventory of these engines and will provide additional opportunities to support the company’s Fokker 70 fleet, lower operating costs and open opportunities to continue to develop the sales of parts to other Fokker operators,” Alliance said.

In addition to its fly-in/fly-out and charter work, Alliance also does some wet lease flying including for Virgin Australia on the Brisbane-Emerald route.

Alliance said it currently operated a fleet of 15 Fokker 100s, eight Fokker 70s and five Fokker 50s.

Separately, Alliance said it had signed a three-year contract extension with South32 covering the resources company’s operations in Queensland and the Northern Territory.

Jetgo shifts Melbourne-Dubbo from Avalon to Essendon

Jetgo has shifted its Melbourne- Dubbo service from Avalon to Essendon airport following the installation of necessary security screening facilities at the close-in Melbourne airport.

The regional carrier had planned to fly from Dubbo to Melbourne Tullamarine starting in October 2015, but was unable to secure terminal space at the airport.

Efforts to operate into nearby Essendon Airport then hit a roadblock because of a lack of passenger screening facilities and regulatory requirements from the Office of Transport Security (OTS).

OTS regulations require passengers on regular public transport service (RPT) with Jetgo’s ERJ-135 regional jets go through security given they have a maximum takeoff weight of 20,000kg.

Eventually, the regional carrier launched its Melbourne service at Avalon Airport, which accommodated Jetgo’s three flights a week from Dubbo on a temporary basis.

However, on July 3, Jetgo’s inaugural flight landed at Essendon.

“Finally the wait is over and Jetgo would like to thank the patience of their customers who have supported the services for the last eight months,” Jetgo said.

“Essendon Airport has constructed a temporary terminal to accommodate Jetgo’s services while the heritage-listed Essendon Airport Terminal is undergoing a $20 million refurbishment.

“Once completed in early 2017, the refurbished terminal will help Essendon Airport become Australia’s premier corporate jet and regional services airport. ” Currently, Essendon Airport, has regular public transport (RPT) services from Free Spirit Airlines and Sharp Airlines, according to the airport’s website, serving regional centres such as Flinders Island and Merimbula. Alliance Airlines also operates charter flights from the airport.

Those services do not require passenger security screening.

Fly Corporate to expand RPT network

Fly Corporate is expanding its regular public transport operations (RPT) with new services from Brisbane to Armidale, Narrabri and Moree set to launch in August and September.

Canberra-based charter operator Corporate Air, which has been in operation since 1972, moved into the RPT market in April, establishing Fly Corporate and launching Brisbane-Coffs Harbour as its inaugural route.

Fly Corporate has a fleet of four Saab 340Bs and two 19-seat Metro 23 turboprops for its RPT services.

The company said in a statement on July 8 it had received Civil Aviation Safety Authority approval to add Narrabri and Moree to its airline Air Operators Certificate.

Although no firm dates have been set, Fly Corporate chief executive Andrew Major said the new flights from Brisbane to Narrabri and Moree were likely to start either in late August or early September with Metro 23 aircraft.

Major said the services would support businesses in the regions, as well as make it easier for people to travel to Brisbane for medical treatment.

The airline is also starting nonstop Brisbane-Armidale flights from August 1.

BFTS marks 250,000 flying hours

A formation flight of 16 CT-4B Airtrainers on July 12 has marked 250,000 flying hours by the type with the ADF’s Basic Flying Training School (BFTS).

Based at Tamworth, BAE Systems Australia has operated BTFS under contract since 1999 to provide initial pilot training and pilot screening for all three arms of the ADF, with the CT-4B fleet averaging approximately 15,500 hours flying time per annum.

More than 5,600 ADF students have graduated from the facility, BAE Systems stated.

“This achievement is a credit to the skill and dedication of our experienced pilot trainers at Tamworth,” said Steve Drury, director for Aerospace at BAE Systems Australia. “Working alongside the ADF, we are proud of our role in preparing Australia’s next military pilots. ” The company also provides training services to the Republic of Singapore Air Force, Royal Brunei Air Force and Papua New Guinea Defence Force. In total, the facility has delivered about 360,000 training hours over almost 25 years.

“Our company also remains focused on securing additional work in Tamworth,” Drury added. “We are working hard to obtain new contracts in order to provide a sustainable future for our military flying training business here beyond 2019. ” BAE Systems will continue to provide the ADF with basic pilot training until the end of 2019. Under Project AIR 5428, the CT-4B as well as the Pilatus PC-9/A, which provides advanced training for RAAF and RAN trainee pilots, will be replaced by the Pilatus PC-21, with basic flying training to be delivered from RAAF Base East Sale and advanced training continuing at RAAF Base Pearce.

CASA lifts restrictions on Jabiru engines

Australia’s Civil Aviation Safety Authority (CASA) has issued a new direction on the operation of aircraft with Jabiru engines, offering relief from operational restrictions provided certain requirements were met.

“The maintenance-related actions set out in the direction include adopting the manufacturer’s maintenance schedule, inspecting certain engine components and replacing engine through bolts in accordance with the relevant Jabiru service bulletin,” CASA said in a statement.

“The timing of through bolt replacement varies if the aircraft has been used in flying training.

“Operators must continue to observe the limitations if they do not take the actions set out in the CASA direction. ” In December 2014, CASA issued limitations on operators of Jabiru-powered aircraft, including restricting the flights to daylight hours and away from populated areas.

CASA also required trainee pilots to have successfully completed engine failure exercises before attempting solo flights.

The regulator said at the time there had been about 40 identified incidents of Jabiru engine problems in 2014, ranging “from full and partial power loss and inflight engine shutdowns to rough running and oil leaks”.

In July 2015, CASA has eased one of the regulations regarding carrying passengers.

Bundaberg-based Jabiru makes four-cylinder 2200cc and six-cylinder 3300cc aircraft engines. Figures from CASA indicated about 1,100 aircraft in Australia were fitted with Jabiru engines.

CASA director of aviation safety Mark Skidmore said the new direction was developed in collaboration with Jabiru and Recreational Aviation Australia.

“CASA’s engineers have looked very carefully at engine failure data and analyses and worked with Jabiru’s engineering adviser,” Skidmore said.

“CASA and Jabiru now have a better understanding of the problems involved and this has led to the development of the new direction.

“I am pleased operators of Jabiru-powered aircraft can now resume normal operations once the appropriate maintenance-related actions have been taken. ”

CASA postpones ATO changes

The Civil Aviation Safety Authority (CASA) has postponed changes to the regulation of Approved Testing Officers (ATO).

As a result, ATOs have another year to surrender their delegation and obtain a Flight Examiner Rating (FER).

“In response to the concerns expressed by members of the industry about the insurance-related implications of this change, CASA has decided to extend the expiration date of current ATOs for a further year – from 30 June 2016 to 30 June 2017,” CASA said on June 19.

“This means that ATOs who have not yet surrendered their delegation and obtained a FER under Part 61 of the Civil Aviation Safety Regulations 1998 (CASR) in its place do not need to do so immediately, and may continue to perform their functions as ATOs for a further year.

Indemnity protection offered to all CASA delegates and authorised persons will also continue to apply to ATOs until June 30 2017.

For those who have already surrendered their ATO delegation and obtained a FER, CASA was proposing a legislative amendment to retain their status as an ATO until June 30 2017.

CASA noted on its website that many who had already transitioned from having an ATO delegation to a FER would have made arrangements to obtain their own insurance coverage.

However, the legislative amendment would include the indemnity protection that having an ATO delegation provided.

“Until that change can be made flight examiner rating holders are not covered by the CAAP Admin-1 indemnity,” CASA said.

“Please note that until the legislation has been amended, FER holders who were previously ATOs are not now ATOs (delegates), and the benefit of CAAP Admin-1 indemnity protection has not yet been extended to these people.

“CASA will ensure that affected former ATOs who now hold FERs are advised when the legislation is amended, and what further action may need to be taken so they can obtain the retrospective benefit of CAAP Admin-1 protection. ”

CASA extends deadline for Cessna 100 inspections

The Civil Aviation Safety Authority (CASA) has extended the deadline for a series of inspections of Cessna 100 series aircraft for a further two years.

The inspections, contained in Supplemental Inspection Documents (SID), were developed by Cessna and the US Federal Aviation Administration due to concerns that critical principal structural elements of the aircraft, including wing spars, wing attachment points, wing struts attachments as well as horizontal and vertical stabiliser attachment points, were susceptible to fatigue or corrosion damage.

CASA said some components had not been adequately inspected since the aircraft were manufactured decades ago.

The SID inspections now had to be completed by June 30 2018, CASA said in a statement on June 21. The previous deadline was June 30 2016.

CASA director of aviation safety Mark Skidmore said owners and maintainers of these aircraft had indicated the original June 30 2016 completion date “was causing problems such as a backlog of work and ordering replacement components”.

“We have listened to feedback from both owners and maintainers about the need for extra time to complete SIDs on Cessna 100 series aircraft in private operations,” Skidmore said.

“The extra two years for SIDs completion will allow Cessna 100 series aircraft owners and maintainers to plan to spread out the work and the costs over a longer period with no unacceptable risks to safety. ” CASA said the extension was “subject to a number of conditions designed to ensure continuing safety of flight and progressive compliance with the SIDs requirements”.

“Cessna 100 series aircraft SIDs must begin at the next annual/100 hourly inspection after 30 June 2016 and a compliance plan must be submitted to CASA as a revised logbook statement,” CASA said.

“Aircraft principal structural elements must be inspected by a licensed engineer to ensure a satisfactory level of structural integrity is apparent in the airframe.

“This inspection either needs to have been done at the most recent periodic/100 hourly inspection or before 30 June 2016. If not completed by 30 June 2016 an inspection will be required before further flight after that date. ” CASA previously extendedthe deadline in April 2014.

Airbus, Boeing forecast 33-40,000 commercial aircraft required through 2035

Airbus predicts 33,000 commercial aircraft will be required, while Boeing’s crystal ball suggests a market of nearly 40,000 new commercial aircraft – valued at, Airbus reckons, US$5. 2 trillion, while Boeing estimates US$5. 9 trillion – over the next 20 years, the airframers said at the Farnborough Airshow on July 11.

These regular commercial market outlooks take into account (on Boeing’s list) emerging markets, competitive landscape, market liberalisation, fuel price, economic growth, airplane capabilities, infrastructure, the environment and airline strategies and business models to give an idea of the scale of production, suggest how its fleet meets demand, and highlight trends in the industry.

It is, perhaps, a sign of just how much any change in assumption or inclusion of certain data can change these forecasts — that Airbus’s and Boeing’s can differ by nearly a fifth. Nevertheless, the way in which both companies see the future is telling for their product strategies.

Both airframers highlight the rise in emerging markets, particularly in Asia, with Boeing noting the rise of LCCs in China (where its 737 NG and 737 MAX generations of aircraft are doing well in sales and operations) would be key, while Airbus focused on the rising middle class in India (where its A320 and A320neo families are showing significant success). “Middle classes in emerging markets will double to 3. 5 billion people by 2035,” Airbus’s forecast suggests.

Yet growth in more mature markets will be no slouch: “In economies like Western Europe or North America, air traffic growth will be 3. 7 per cent” over the next 20 years, Airbus estimated.

Both Boeing and Airbus see nearly three quarters of demand in the single-aisle market. “There’s no question the heart of the single-aisle market is around the new Boeing MAX 8 and the current 737-800. Airplanes that size already account for 76 per cent of the global single-aisle backlog, and our products have the clear advantage in that space,” Boeing vice president of marketing Randy Tinseth said.

Boeing’s announcement was marked by an unusual amount of sledging of the Airbus product line, with Boeing fighting from a relatively weak narrowbody position given the capabilities of its Boeing 737 MAX, which is to an extent hamstrung on the next-generation larger turbofan engines it can take on account of being lower to the ground than the competition.

Airbus returns to megacities in reminder that A380 before its time

Perhaps unsurprisingly as the airframer with the better Very Large Aircraft proposition in the A380, Airbus’s widebody focus was 9,500 compared with Boeing’s 9,100. Given the comparatively fewer aircraft expected by Airbus, and the fact that its narrowbody family serves longer and larger routes than Boeing’s, it’s notable that proportionally more of its forecast is composed of aircraft larger than narrowbodies.

Airbus suggests that the number of “aviation megacities” with over 50,000 daily passengers will rise from 55 to 93 by 2035, and with many of those cities’ airports being constrained by slots and runways, and airport development unpopular among residents, the answer to which the European planemaker is pointing has two decks and a new #iflyA380 hashtag. (And a new flight search-come-aspirational marketing website that lets passengers search for A380-only itineraries. ) “Boeing projects a continued shift from very large airplanes to small and medium widebodies such as the 787, 777 and 777X,” Airbus said, although it’s not clear how or why a 777X is counted as a medium widebody.

Boeing’s shift is also somewhat counter to the fact that larger widebodies today hold fewer passengers than larger widebodies of the past, thanks to more spacious business class seats requiring more real estate, more premium economy, and in North America particularly the rise of extra-legroom economy cabins.

Airbus sees mature Australia but surging Asia

Airbus’s Fabrice Valentin, head of market research and forecasts in the airframer’s strategy and future programmes section, sat down with Australian Aviation to talk Australia, NZ and Asia Pacific (which, for Airbus, is everything east of the Middle East with the exception of Russia and the CIS).

Growth in Australia “will be what connects the country to the rest of the region. You can tell Australia is extremely well placed, economically, in terms of air transport, and also for tourism. We have strong growth between Australia and the region behind. The purely domestic market will not grow as fast as what we see between Asia. The links between Australia and Asia are the mirror of the economics links, which are getting stronger, and you have the traffic growth getting stronger”, Valentin said.

“We see a lot of growth obviously in China and India. When you look at where the traffic will grow the fastest, it’s clearly going to be India. Domestically, that’s where we see the highest growth in terms of traffic. In terms of volume, China will be the number one market. Today it’s already pretty close to one of the largest flows, and over the next 10 years it will overtake even the US. You also have a lot of what we call intra-regional traffic growth.

“One thing we have observed recently which has really fuelled this growth is the liberalisation in those areas – the ASEAN and cross-straights liberalisation. You have a boost in terms of traffic. We’re focused on finding where that liberalisation might happen, because it is one of the strongest factors in growth. ” Regardless of which set of airframer tea leaves ends up matching closer to the future in 20 years’ time, the general direction the world’s largest airplane manufacturers think it will take is clear.

Boeing said its Australia and APAC-specific forecast would be released in September.