Preflight

On November 2, the airline group reported a statutory loss after tax of $34. 6 million for the three months to September 30 2016, compared with a statutory profit after tax of $1. 7 million in the prior corresponding period.

Virgin said the first quarter result was impacted by restructuring charges from its Better Business program, which aims to cut costs through the reduction in fleet types and improving productivity across the airline group.

The company was also in the red on an underlying basis, which removes one-off items and is regarded as the best indicator of financial performance. The company posted an underlying loss before tax of $3. 6 million in the 2016/17 first quarter, compared with underlying profit before tax of $8. 5 million in the prior corresponding period.

“The result was impacted by subdued industry trading conditions during the quarter, particularly in the domestic market, which affected revenue,” Virgin Australia said in a statement.

Virgin’s domestic network grew capacity, measured by available seat kilometres (ASKs), by a slender 0. 6 per cent in the quarter, while demand, measured by revenue passenger kilometres (RPKs) was up 4. 4 per cent. As a result load factors improved 2. 9 percentage points to 77. 6 per cent.

The company’s low-cost unit Tigerair Australia posted a 30. 4 per cent rise in ASKs due to the start of flights to Bali from Adelaide, Melbourne and Perth earlier in 2016, with RPKs up 34. 7 per cent in the quarter and load factors 2. 8 percentage points higher at 88. 4 per cent.

Virgin’s international flying was impacted by the transfer of some Bali services to Tigerair and the suspension of Sydney-Abu Dhabi services for much of the quarter due to the refurbishment of its Boeing 777-300ER fleet with new B/E Aerospace Super Diamond business class seats, a refreshed premium economy cabin and a new Panasonic inflight entertainment system.

As a result, Virgin’s international ASKs were down 13. 1 per cent in the quarter, with RPKs 13 per cent lower. Load factors were steady at 84. 8 per cent.

“Capacity is being actively managed in response to the trading environment,” Virgin said.

“The group will continue to exercise disciplined capacity management in line with trading conditions. ” As part of efforts to improve its balance sheet and reduce costs, Virgin is withdrawing all 18 Embraer E190 jets and between four and six ATR 72 turboprops over the next three years.

The airline group’s low-cost unit Tigerair Australia will also transition from Airbus A320s to Boeing 737-800s during that time.

Moreover, the company is targeting improving operating efficiencies in crew and ground operations, as well as in maintenance, engineering, procurement and its supply chain.

Virgin said cost per ASK decreased compared with the prior corresponding period, without providing details.

“The program is already generating savings in the 2017 financial year and the group expects to deliver net free cash flow savings increasing to $300 million per annum by the end of the 2019 financial year (on an annualised basis),” Virgin said.

“The group continues to drive structural change in its cost base through ongoing cost-saving activities and new efficiency initiatives under the Better Business program. This includes the fleet simplification program and organisational rightsizing. ” Meanwhile, Virgin said it had “accelerated” its fuel hedging program to take advantage of lower fuel prices. It said 90 per cent of the airline group’s expected fuel needs were already locked in for 2016/17, while hedging for the first half of 2017/18 was already underway.

Qantas reports lower first quarter revenues

Expects reduced first half profit

Qantas says it expects a decline in underlying profit before tax (PBT) and ongoing domestic capacity reductions after reporting a drop in revenue for the first three months of 2016/17.

In a first quarter trading update on October 31, Qantas said underlying PBT for the six months to December 31 2016 was forecast to be in the range of $800 million to $850 million, compared with $921 million in the prior corresponding period.

Qantas said capacity across the airline group, measured by available seat kilometres (ASKs), was now forecast to increase 1. 5-2 per cent in the first half, compared with previously issued guidance of 2-3 per cent.

All of that increase will be in overseas flying, given Qantas said domestic capacity across both its Qantas and Jetstar airlines was expected to decline one per cent in the half.

Qantas chief executive Alan Joyce said the airline group’s cost-reduction transformation program and flexible capacity management across its Qantas and Jetstar brands had the company well-placed to deliver a “strong first half profit result” for 2016/17 amid “a more challenging international revenue environment”.

“Like most carriers globally, we are seeing international air fares below where they were 12 months ago, but the impact of that is tempered by the competitive advantages we’ve been working hard to fortify including our strong domestic position and diversified Loyalty business,” Joyce said in a statement.

Qantas said revenue across the airline group fell three per cent to $3. 98 billion in the three months to September 30 2016, compared with $4. 11 billion in the prior corresponding period.

Meanwhile, revenue per available seat kilometres (RASK), fell 5. 5 per cent in the quarter.

The result was due to “increased competition on international routes and a subdued domestic demand environment in the first two months of the year”.

On a more positive note, Qantas said the domestic market had reverted to more stable conditions in September, following a couple of months of “demand softness” in July and August due to the federal election and other one-off events that positively impacted trading conditions in the prior year.

“Qantas Domestic, Jetstar Domestic and Qantas Loyalty all continue to perform well with high operating margins in a stable market,” Joyce said.

However, the resources market was continuing to act as a drag on RASK, which declined 2. 9 per cent across Qantas and Jetstar domestic in the first quarter.

Further, Qantas said there was a $28 million fall in resources market revenue in the first quarter, primarily from intra-Western Australia and Queensland.

The airline group has been redeploying aircraft out of domestic resources-related markets onto more profitable routes that have primarily been in international markets, as well as getting more out of the fleet through increased utilisation.

Qantas domestic ASKs were down 0. 6 per cent in the first quarter, while Jetstar cut ASKs 2. 4 per cent in the same period.

Meanwhile, Qantas lifted international ASKs 5. 8 per cent, while Jetstar’s international capacity was up 4. 3 per cent.

Qantas has added extra flights to New Zealand and plans to launch Melbourne-Tokyo Narita and Sydney-Beijing in the coming months. It has also scheduled some additional frequencies to its existing Asian network.

The company said those new international routes “continue to meet expectations though have lowered average international unit revenue during their ramp-up phase”.

International RASK across Qantas, Jetstar and Singapore-based Jetstar Asia fell 6. 9 per cent in the quarter.

Qantas said its total fuel bill for the first half was expected to come in at $1. 5 billion, down from $1. 7 billion in the prior corresponding period.

For the full year, fuel costs were forecast to be $3. 15 billion “and no worse than $3. 2 billion”, based on a Brent crude forward market price of A$68 per barrel for the remainder of 2016/17.

“We remain disciplined on cost, continue to manage capacity carefully to match demand, and have secured the benefit of lower fuel prices through our hedging,” Joyce said.

“And at the same time, we will continue to invest in building the Group’s long-term competitive advantages, including our brand, customer service and product. ” Macquarie Securities Australia analyst Sam Dobson said the first quarter report was weaker than anticipated, while the second quarter was expected to be better.

“While today’s quarterly data is worse than we had expected, capacity reductions (vs previous planned growth) will aid in the recovery of unit revenues, specifically in Group Domestic,” Dobson said in a research note dated October 31.

RAAF KC-30 tanker to be modified for VIP transport

$150 million upgrade to support “long-range government transport”

The thinking behind the plan to modify an Airbus A330-200 that is being converted into a KC-30A tanker transport for the RAAF to also meet long-distance government travel needs has been outlined at a Senate committee hearing.

Dennis Richardson, Secretary of the Department of Defence, who branded the 737 Boeing Business Jet currently operated by 34 Squadron as “totally and utterly inadequate” for the task, explained that the idea of using the KC-30A was first raised with former prime minister Julia Gillard in 2013, then with Tony Abbott, and later with Malcolm Turnbull.

“The Force Structure Review that was part of the White Paper identified the need for two additional tankers,” Richardson told the Senate Foreign Affairs, Defence and Trade Legislation Committee.

“Consistent with advice that I have given to successive prime ministers, I suggested that this was an opportunity to have a proper long-range aircraft that could cater for the Prime Minister travelling abroad in the same way as the 707s were utilised under previous governments. ” The RAAF’s Boeing 707, which was retired in June 2008, served three purposes, Richardson said: firstly, air-to-air refuelling; secondly, transporting troops; and thirdly, supporting the prime minister of the day when travelling overseas.

“The purpose of the KC-30 would be precisely the same; it is required for capability purposes,” the Defence Secretary said during the hearing in Canberra on October 19.

“The only reason we are requiring two additional KC-30s is because of the capability need in terms of air refuelling and troop transport. One of them will have a configuration which will be able to be used by a future prime minister travelling abroad. ” The additional cost of the modification work was put at about $150 million, largely to cover equipping the VIP transport configured aircraft with classified and unclassified communications suites.

Modified for the government transport role, the aircraft will have a first-class area for two passengers, business class for 24 and economy for 54, and will be fitted out to a standard that is comparable to that found aboard a Qantas aircraft.

By way of comparison, the two 737 BBJ special purpose aircraft that are based at Defence Establishment Fairbairn in Canberra can each carry up to 30 passengers.

Meanwhile, the baseline KC-30A is capable of carrying 270 passengers in its typical transport role, with five aircraft operated by 33 Squadron based at RAAF Base Amberley.

“In addition to its primary role as an air-to-air refueller, the aircraft will provide the secure communications capability, range and passenger capacity to support long-range travel required to enable international engagement with our partners in, for example, North America, Europe and North Asia,” a Defence spokesperson had told Australian Aviation sister publication Australian Defence Business Review on October 14.

“The modified aircraft will support long-range government transport with accommodation, meeting facilities and communications to allow conduct of normal business in transit. ” The government approved the acquisition of the two additional KC-30A tanker transports in June last year under the AIR 7403 Phase 3 project to expand the fleet to seven aircraft.

These two aircraft, which have been acquired second-hand from a leasing company having previously been operated by Qantas, are being converted by Airbus Defence and Space at Getafe, near Madrid.

Further approval to progress the project to modify one of these aircraft to support the long-range government transport requirement was granted on February 12 this year.

And then on August 3, a contract was signed with Airbus for the modification work on this KC-30A to incorporate the added government transport and communications capability.

“Detailed design for the modification is ongoing,” the Defence spokesperson stated in a written response to questions. “However, in broad terms, the capability will provide accommodation, secure communications, a meeting room, a working area and airline-style seating.

“The modified aircraft would retain its refuelling capability to respond to Australian Defence Force needs, such as Operation Okra in the Middle East, but will also have the flexibility to conduct long-range government transport. ” Airbus has subcontracted the VIP transport modification work to aircraft maintenance, repair and overhaul services provider Lufthansa Technik in Hamburg, and the capability is scheduled to be delivered in 2019.

Airbus Defence and Space referred a request for comment regarding the additional tanker transports to Defence.

Tigerair Australia to add fourth 737

Tigerair Australia plans to add a fourth Boeing 737-800 to its fleet to assist with crew training and for additional domestic flights over the busy summer holiday season.

The 737-800 from parent Virgin Australia is expected to join the fleet in December, a Tigerair spokesperson told Australian Aviation via email.

To be based in Melbourne, the aircraft will be rebranded into Tigerair livery and have its cabin reconfigured.

The arrival of a fourth 737 from parent Virgin is not part of Tigerair’s transition from A320s to 737s that was announced in July, where the 14 A320s will be progressively replaced with Boeing 737s over the next three years as Virgin and Tigerair move to a common fleet type.

Rather it represents additional capacity, with Tigerair’s fleet to increase to 18 aircraft – 14 A320s and four 737s – and is a further sign the airline is continuing to gain traction at the budget or leisure end of the market after delivering its maiden profit in 2015/16.

Currently, Tigerair’s three ex-Virgin 737-800s are used for the low-cost carrier’s flights to Bali from Adelaide, Melbourne and Perth and configured with 180 all-economy seats with five extra-legroom rows available for purchase as an optional extra.

The aircraft are flown by Virgin pilots alongside Tigerair cabin crew and remain on Virgin Australia International’s air operator’s certificate (AOC).

Tigerair has applied to the Civil Aviation Safety Authority (CASA) for two changes to its AOC.

The first is for the addition of the 737 onto its AOC as it transitions from Airbus to Boeing equipment, with pilot training for the 737 already underway. The second is to secure approval to operate international flights.

The Tigerair spokesperson told Australian Aviation the AOC was expected to be updated in time for its own pilots to operate the Boeing narrowbody on domestic routes by the time summer rolls around.

And when the AOC is updated for international flights, Tigerair would be able to to transfer those 737s onto its own AOC.

“The fourth 737 aircraft will initially be used for crew training purposes in order to support our international services to Bali and then for additional domestic flying over the summer months on popular routes,” the spokesperson said.

Tigerair reported full year underlying earnings before interest and tax (EBIT) of $2. 2 million for 2015/16, up from a loss of $37. 1 million a year ago. It was the first full year profit since the airline started flying in Australia under different owners in 2007 and came a year earlier than was targeted when Virgin took full ownership of the airline in 2014.

Figures from aviation thinktank CAPA – Centre for Aviation show Tigerair has about a six per cent capacity share of the domestic market.

While it was a “relatively modest figure”, and up only slightly since the airline’s transformation program commenced in mid-2013 when Virgin took its initial 60 per cent stake, CAPA said it was “sufficient to give the Virgin Australia Group a play in the price-sensitive leisure sector”.

“The current focus may limit growth opportunities but provides a sustainable niche with a strong prospect of continued profitability,” CAPA said in a research note dated August 16.

“As it approaches its tenth anniversary Tigerair Australia is finally profitable, and has a relatively certain future. ” A fourth 737 at Tigerair’s Tullamarine base has also facilitated the transfer of one A320 from Melbourne to Brisbane.

Tigerair said it would have three A320s based in Brisbane from March 2017, up from two currently, allowing the airline to boost its network from the Queensland capital.

The airline will launch new Brisbane-Whitsunday Coast and Brisbane-Perth services on March 23 and June 1 2017, respectively, and add more flights from Brisbane to Cairns and Adelaide, as well as on the Sydney-Whitsunday Coast route.

Tigerair chief executive Rob Sharp said the extra services represented about 225,000 additional seats a year at Brisbane Airport.

“The sunshine state is an integral part of our network with over 70 per cent of all Tigerair domestic services already touching Queensland,” Sharp said in a statement.

“That number is set to increase with all the new services announced.

“We are confident our new services will prove popular with our core market of budget and leisure travellers, whilst at the same time stimulating numerous benefits for the city of Brisbane by way of increased tourism expenditure and job creation. ” Once the A320 is shifted to Brisbane, Tigerair will have six A320s in Melbourne. Its third base, Sydney, has five A320s.

Sunshine Coast Airport looking for more international routes

Sunshine Coast Airport is looking to add more overseas services after being officially designated as an international airport.

Federal Minister for Infrastructure and Transport Darren Chester made the announcement at the airport on October 28.

Sunshine Coast Airport said the official designation means the airport, located about 100km north of Brisbane, would no longer have to seek annual approvals for Air New Zealand’s seasonal Auckland service, with border agency resourcing for these services “assured”.

“For the last five years, our international services have been approved on a season-by-season basis adding a layer of regulatory complexity and uncertainty to what has otherwise been a very successful partnership between the airport, airline and tourism bodies,” Sunshine Coast Airport general manager Peter Pallot said in a statement.

“We are delighted that this complexity is now a thing of the past and we can focus on attracting future international services. ” In March, Sunshine Coast Airport said it planned to build a new runway as part of a $347 million expansion project.

The proposed 2,450m longand 45m wide runway, to be built in a north-west/south-east orientation (Runway 13/31)and operational by 2020, would better cater for existing narrowbody flights and be able to handle potential widebody operations.

Australia secures F-35 component repair work

Australian industry stands to benefit from the US Department of Defense’s assignment of the first component repair responsibilities outside the continental US for the F-35 Lightning II.

From 2021 to 2025, three of the first 65 components have been assigned to Australia to undertake repairs on a global basis for all F-35s around the world, with the UK assigned 48 components and the Netherlands assigned 14.

Then from 2025 onwards, Australia has been handed responsibility for 64 of these 65 components in the Pacific region, leaving a single component assigned to South Korea for repair regionally.

Although contracts are yet to be finalised, this initial work is estimated to be worth between $80 million and $100 million to Australia, according to Minister for Defence Industry Christopher Pyne, who described the announcement as “a major win for the nation’s defence industry”.

BAE Systems Australia will be the lead provider of global sustainment services for life support components, and will play a leading role in regional sustainment work across avionics and digital mission systems and electrical system components, the company stated.

BAE Systems’ services will be delivered in Australia with teaming partners GE Aviation, Martin-Baker Australia, Northrop Grumman Australia and Rockwell Collins Australia.

The assignments of maintenance, repair, overhaul and upgrade (MRO&U) capability for the first 65 of 774 components in total were based on data compiled and analysed by the F-35 Joint Program Office that was collected from partners – of which Australia is one – Foreign Military Sales (FMS) program customers and industry, the US Department of Defense stated.

These initial regional MRO&U assignments supporting near-term component repair requirements are set to be reviewed and updated as the program’s needs dictate. The assignment of repair responsibilities for the remaining 709 parts is expected to occur over the next two to three years.

“As part of the F-35 global sustainment strategy, participating nations were provided with requirements outlining global repair needs for the F-35 component workload,” the US Department of Defense statement read.

“Each country was afforded the opportunity to work with their industrial base to provide the F-35 enterprise work over and above their own F-35 needs. Regional considerations such as forward basing, aircraft phasing and transportation also contributed to initial assignment decisions. ” Demand for repairs from 2021 to 2025 is anticipated to be satisfied for each component by a single repair source globally, the US Department of Defense stated, but eventually demand will increase to a point where this will not be enough, therefore the program is establishing regional repair capabilities in Europe and the Pacific.

“This is the first of many opportunities we will have to assign F-35 global sustainment solutions for component repair work,” said Lieutenant General Christopher Bogdan, program executive officer for the F-35 Joint Program Office.

“As international F-35 deliveries increase and global operations expand, support provided by our international F-35 users becomes increasingly more important. We are grateful for the opportunity to work alongside these nations on a daily basis; this close teamwork enables the US Defense Department to make well-informed, best-value decisions to shape the F-35 global sustainment posture for decades to come. ” And there are further opportunities available to Australian industry in the program, with two requests for information recently issued to Australian companies for non-air vehicle deeper-level repair components and regional warehousing, Minister Pyne stated.

“This announcement today represents just eight per cent of the total sustainment work that the US government will allocate over the next few years,” the Defence Industry Minister said.

“It also comes after my recent trip to Washington, where I advocated on behalf of Australian defence industry for this important work to be done in Australia. It is clear that Australia will be in a prime position to further expand as a regional maintenance hub and build on our local capability. ” MRO&U capabilities for the airframes and engines have already been assigned for Europe and the Pacific. Airframe MRO&U capability was assigned for the Southern Pacific to Australia and BAE Systems, and to Japan and Mitsubishi Heavy Industries for the Northern Pacific, while the initial heavy engine maintenance capability is being provided in the Asia Pacific region by Australia and Queensland-based TAE.

RAAF P-8A sustainment contract signed Defence has signed

a four-year contract with Boeing Defence Australia covering sustainment and support of the RAAF’s forthcoming Boeing P-8A Poseidon maritime surveillance aircraft fleet.

“Importantly Australian defence industry involvement in the sustainment of this aircraft will provide regional support for the global P-8A fleet and has the potential to improve opportunities for Australian defence industry participation in future support activities,” Minister for Defence Industry Christopher Pyne said in a statement announcing the contract.

“This will showcase Australian defence industry capabilities to the world to ensure they have every opportunity to get involved in the longer term global P-8A support program. ” The Minister’s statement said the four-year deal would support “35 jobs in South Australia”.

Fifteen P-8As are set to replace the RAAF’s AP-3C Orion fleet, together with the MQ-4C Triton unmanned aircraft system. They will be based at RAAF Base Edinburgh, north of Adelaide.

The first RAAF P-8A was due to arrive in Australia in mid-November.

Govt open to extending search for MH370 as Canberra hosts three-day summit on missing jet

Federal Minister for Infrastructure and Transport Darren Chester says he is open to extending the search for missing Malaysia Airlines flight MH370 if credible new evidence which leads to the identification of a specific location of the aircraft is found, as a new report suggests the aircraft entered into a steep descent before crashing into the Indian Ocean.

The Australian Transport Safety Bureau’s (ATSB) latest report on the search, published on November 2, has detailed analysis of wing debris that investigators hope may provide more clues on the missing Boeing 777-200ER’s flightpath before it crashed in the Indian Ocean.

The report said the flap from the aircraft’s right wing was “most likely in the retracted position at the time it separated from the wing”.

Further, the ATSB said the right flaperon was “probably at, or close to, the neutral position at the time it separated from the wing”.

The findings, alongside additional analysis of the satellite communications data was “consistent with the aircraft being in a high and increasing rate of descent at that time”, the ATSB said.

“Additionally, the wing flap debris analysis reduced the likelihood of end-of-flight scenarios involving flap deployment,” the report said.

The findings suggest it was unlikely the aircraft crashed into the ocean following a controlled rate of descent.

The ATSB report also looked at drift analysis of the more than 20 pieces of debris that have been found since the Malaysia Airlines jet 9M-MRO carrying 239 passengers and crew lost contact with air traffic controllers en route from Kuala Lumpur to Beijing more than two years ago.

“Preliminary results of a drift analysis by Australia’s top scientific organisation, the CSIRO, also indicated it was unlikely that debris originated from the south of the current search area,” the ATSB report said.

“The northernmost simulated regions were also found to be less likely. Drift analysis work is ongoing and is expected to refine these results. ” A three-day First Principles Review Summit of the search was held in Canberra in early November, bringing together Australian and international experts.

Chester said the gathering would review all the available data and analysis associated with the search so far, including the 20-odd items of debris that have been found off the coast of Africa since the aircraft disappeared in March 2014.

“The experts will also inform the remainder of the search effort, and develop guidance for any future search operations,” Chester said.

“Australia, Malaysia and China continue to work together to find MH370. My thoughts, and the thoughts of all those involved in the summit, remain with the families and friends of the 239 passengers and crew. ” The Minister said any decisions made in relation to the search area were “not those for Australia alone”.

“It’s a tripartite agreement,” Chester said.

“We work in partnership with the Malaysian and Chinese governments on these issues.

“Quite rightly, we will continue to explore every bit of information that’s available, and allow the experts from the ATSB in Australia, also the international experience, to inform our efforts.

“There was an agreement reached in July this year between the three nations involved to focus on and complete a 120,000 square kilometre search area, and in the absence of any further credible evidence leading to any specific location, the search would be suspended at that time. So that is the process we’ve undertaken. ” ATSB chief commissioner Greg Hood said recently the search for MH370 was following up on some sonar “underwater contacts” with an autonomous underwater vehicle.

“We’ve got almost 50 of those underwater contacts where the deep tow sonar has said there’s something there, it looks man made but we don’t know what it is,” Hood told delegates at the Regional Aviation Association of Australia (RAAA) national convention on October 21.

“Potentially we may have found the aircraft, but also potentially that underwater contact, they could be containers for example that have fallen off ships. ”

New orderfor 747-8F

Boeing’s 747-8 program has received a signifiant boost with a new order from United Parcel Service (UPS) for up to 28 aircraft. The global freight and logistics company based in Atlanta has ordered 14 747-8Fs with an option for a further 14. Figures from the Boeing website showed that the 747-8 program had 15 unfilled orders at September – not including the UPS order – comprising six freighters and nine of the passenger variant. As a result, the UPS order almost doubles the backlog for the struggling 747 program.

No plans to privatise Airservices: Minister

Minister for Infrastructure and Transport Darren Chester has reaffirmed the federal government’s commitment to keep Airservices in public hands.

Industry groups such as The Australian Aviation Associations Forum (TAAAF) and the Aircraft Owners and Pilots Association (AOPA) have called for Airservices to be privatised and the proceeds used to fund initiatives designed to support the sector.

The federal government has said previously it did not support the privatisation of Airservices and Chester said there was no change to that policy.

“There are no plans to privatise Airservices,” Chester told ABC Radio on November 1.

“I’ve made those comments publicly before and I am making them here again today. ” Earlier in 2016, a government-commissioned report from KPMG recommended the consideration of “different ownership structures” such as “part-private ownership” for Airservices.

The comments come as Airservices continues its restructuring program, dubbed ‘Accelerate’, that includes about 900 positions being made redundant as part of efforts to cut costs.

The air traffic manager’s chief executive Jason Harfield told Parliament recently the job cuts would come from “back of house operations” and support areas.

“This Accelerate program is not touching our front-line service delivery, which is aviation rescue and firefighting and air traffic controllers,” Harfield told the Senate Rural and Regional Affairs and Transport Legislation Committee on October 17.

“They are actually excluded from the Accelerate program. ” Harfield told the committee about 580 people had left Airservices via redundancy between January 1 and the end of September, with the figure expected to reach 709 by the end of calendar 2016.

“The further projected 200, or thereabouts, will be the result of either voluntary redundancies or potentially involuntary redundancies in areas that are assessed as such,” Harfield said.

AOPA, which represents the interests of the general aviation sector, Civil Air Australia, the professional association for air traffic controllers and the Virgin International Pilots Association have criticised the proposed job cuts citing safety concerns, according to a report on the ABC website.

Further, the ABC reported unions representing the workers had sought a hearing at the Fair Work Ombudsman to stop the job cuts.

Chester said he had “received assurances” from Airservices that the proposed job losses would not impact safety.

“As the Minister responsible I take the safety issue incredibly seriously, and since taking on this role I’ve met with the Airservices chairman, Sir Angus Houston, and the chief executive and sought assurances and received assurances that there’ll be no impact on safety as a result of the restructure,” he said.

“It’s important to note that Airservices Australia isn’t just doing this off its own bat, it’s actually overseen by CASA, the Civil Aviation Safety Authority, and it has been consulted throughout the process.

“Now, if the union has some genuine concerns, they can certainly raise those with Airservices, they can raise them with CASA, or they can come to me directly. ” In August, Harfield told Airservices’ annual Waypoint industry conference the Accelerate program would address what he described as a “relatively fixed and inefficient cost base” that left the organisation unable to “fully offset the first downturn in our aviation revenues in 25 years”.

“Over the next 12 months the Accelerate program will deliver an annualised reduction on our cost base of 15 per cent. This will return Airservices profitability to more sustainable levels and allow for an appropriate dividend back to government,” Harfield said.

Airservices’ 2015/16 annual report showed the organisation posted an underlying net profit after tax of $1. 8 million for 2015/16, which was “broadly in line with the previous year’s results”.

Government launches major study into GA

The federal government has launched what it termed a major study into the general aviation (GA) sector in response to the concerns expressed by industry.

Federal Minister for Infrastructure and Transport Darren Chester said the Bureau of Infrastructure, Transport and Regional Economics (BITRE) would conduct the study, with representatives from industry invited to participate.

“I am keen to remove barriers to growth in this vital part of the aviation industry including reducing costs and regulatory burden,” Chester said in a statement.

“General aviation has a rich history in Australia and I’m confident it can have a prosperous future. This study will help get the public policy right to support growth in the sector. ” The announcement of a major study into general aviation comes after the Aircraft Owners and Pilots Association of Australia (AOPA) presented a nine-point plan to the government in April aimed to turn around a GA sector that was slowly dying and “collapsing under the weight of regulation”.

Part of AOPA’s proposed reforms included changes to the Civil Aviation Act that require regulators to take into account “industry viability, efficiency and sustainability”, and for the Civil Aviation Safety Authority (CASA) to be renamed the Civil Aviation Authority and be absorbed back into the Department of Infrastructure and Regional Development.

There were also calls to enforce rules that provided security of tenure for aviation businesses at airports, for the adoption of a US-style suite of regulatory rules to replace the current Civil Aviation Orders and Regulations, for the reintroduction of TAFE funding to boost aviation apprenticeships and the harmonisation of medical certification for recreational and GA private pilots for all recreational aviation aircraft (those weighing less than 5,700kg).

“AOPA is making what to us is seen as a last stand against inappropriate government industry regulation that has decimated our once thriving GA industry,” AOPA Australia president Marc De Stoop said at the time.

“It may sound melodramatic to those not associated with the industry, but those of us who have been in the industry through the period 1960-1990 feel very frustrated that government bureaucrats, through lack of understanding of the need for businesses to be commercially viable, have failed this industry. ” “As part of the response, I can confirm that CASA will be undertaking a review of the private pilot medical requirements – an area that I know has been a key issue for the GA sector,” Chester said.

“The BITRE study will cover a range of issues, including assessing the key drivers and influences on the sector.

“I will be requesting that the General Aviation Action Group, which was formerly a sub-group of the Aviation Industry Consultative Council (AICC), report directly to me in future. ” The study is expected to be completed by June 30 2017.

Carmody promises “a firm, fair and balanced” CASA

Rather than merely keeping the seat warm until a permanent replacement is named, Shane Carmody says he intends to exercise the full authority of his office to maintain the pace of reform at the Civil Aviation Safety Authority (CASA).

In his first public speech to industry since starting as acting director of aviation safety and chief executive earlier in October, Carmody said the “acting” in his job title had little bearing on how he would conduct affairs at CASA.

“Don’t be fooled by the acting title. I don’t act real well,” Carmody told delegates at the Regional Aviation Association of Australia (RAAA) National Convention at the NSW Hunter Valley on October 21.

“My appointment was agreed by the board and it was agreed by Cabinet.

“As far as I’m concerned I’ve got full authority, which I will use, and I have got full accountability, which I will wear for the decisions that I make and the decisions that go with the position.

“Over the next few months I intend to meet with anyone who is interested in improving aviation safety and I would really welcome [that] opportunity. ” Carmody has replaced Mark Skidmore, who resigned less than two years into his five-year term as CASA director of aviation safety and chief executive, citing personal reasons.

By contrast, Airservices chief executive Jason Harfield said being permanently appointed in March after holding the position in an acting capacity since August 2015 following the departure of Margaret Staib had been liberating for his leadership of the nation’s air traffic manager.

“Dropping one word does make a difference,” Harfield said. “It meant I could lead the organisation without even the slight incidences of reluctance or reticence that adding ‘acting’ to a title can bring. My knowledge of, and confidence in, Airservices as an entity, its personnel, its role and its responsibilities to our industry gave me the firm foundations for the new Airservices. ” It is a period of change at Airservices, which is attempting to become, in the chief executive’s words “match fit” through a cost-cutting program involving the loss of back-office staff.

And there is a new face too at the Australian Transport Safety Bureau (ATSB), with Greg Hood taking his seat as chief commissioner in July.

Hood, whose career includes senior roles at CASA and Airservices, said it had been a busy few months getting across the ATSB’s role across aviation, rail, and maritime while managing his team of hard-working staff.

While the decision on what to investigate was based on risk and the potential to improve safety outcomes, Hood said the agency had to be “very choosy” about what to look at given an annual budget of $21 million.

“When you think of government you think of enormous numbers of people in government departments all sitting there and drinking coffee,” Hood said at the conference.

“In the ATSB there’s 103 staff so we are a very small part of government. ” Meanwhile, long-time RAAA chairman Jim Davis projected a sense of urgency at the conference, telling delegates CASA needed to “get serious” about reform to ensure the local industry could better compete internationally.

“I believe we have only a small window of the next two years to accomplish significant change in these areas or the chance may be missed,” Davis said.

“The past two years have been quite frustrating for both industry and the regulator with a lot promised and not a lot delivered. It is now time for CASA to push the reset button. ” Carmody said CASA was still working its way through the recommendations from the Aviation Safety Regulatory Review (ASRR), which he described as a priority.

“My focus is on delivering a firm, fair and balanced aviation safety regulation system, promoting a positive and collaborative approach,” he said.

“Many would argue that CASA doesn’t always get this right and I agree absolutely. But the industry doesn’t always get it right either and a lot of you would agree with that. ” “So somewhere in between is the reality. ” Carmody said a decision on a permanent replacement to Mark Skidmore was “not expected until well into the new year”.

Qantas mulls over leases of two Airbus A330-200s

Qantas is pausing its Airbus A330 refurbishment program as the airline considers whether to extend the leases of two A330-200s.

The A330-200s – VH-EBL and VH-EBG – are the two remaining aircraft in the fleet of 10 A330-300s and 18 A330-200s yet to be fitted with new Thompson Aero Seating business class seats, an updated economy cabin and new Panasonic inflight entertainment system.

Instead, the pair of Airbus widebodies have angled lie-flat SkyBeds in business class in a 2-2-2 configuration and previous generation Rockwell Collins seat-back IFE.

Australian Aviation understands that because the leases on the two aircraft are close to expiry, Qantas has taken the opportunity to re-evaluate its widebody fleet needs for the period ahead.

While no decision has been made either way, the move to pause the A330 refurbishment program to mull over the future of these two aircraft highlights the ongoing softness in the resources sector, given the A330-200s are predominantly used on domestic trans-continental routes between Perth and Australia’s east coast capitals.

As Qantas has reduced widebody operations out of Perth, it has redeployed aircraft onto international routes. The most recent examples are a return to Sydney-Beijing from January 2017 using A330-200 equipment and a resumption of Melbourne-Tokyo Narita nonstop flights from December.

Further, the impending arrival of Boeing 787-9s from October 2017 and what routes the aircraft might eventually be used on – ultra long-haul flights such as Perth-London, Melbourne-Dallas/Fort Worth and Sydney-Chicago have been regularly mentioned as potential new services with the Dreamliner – has also given Qantas top brass the opportunity to reconsider how many A330s will be required.

Both aircraft are less than 10 years old – VH-EBG rolled off the Airbus production line at Toulouse in late 2007, with VH-EBL following about a year later. Should Qantas decide the pair is required for its future network, the aircraft would then be reconfigured with the same cabin products and amenities that passengers currently experience on the rest of the A330 fleet.

In 2015, Qantas returned two A330-200s – ex-VH-EBH and ex-VH-EBI – to CIT Aerospace upon the expiry of their leases, with the aircraft acquired by the Royal Australian Air Force for conversion to KC-30A tanker-transports. The conversion is being conducted by Airbus Defence and Space at Getafe, Spain.