Disciplined execution

Net profit for the 12 months to June 30 2017 came in at $852 million, down 17.2 per cent from $1.03 billion in the prior corresponding period. The company noted the drop in statutory profit reflected a one-off gain from the sale of the Sydney Airport domestic terminal in 2015/16.

Revenue fell 0.9 per cent to $16.1 billion, Qantas said on August 25.

After posting the highest profits in its history in 2015/16, Qantas has battled increased competition on international routes and a sluggish domestic market that is weighed down by weakness in the mining and resources sectors.

In response, the airline group has been taking domestic capacity out of states such as Queensland and Western Australia that have been most heavily impacted by the changes in the mining industry and redeploying those aircraft on more profitable routes on the east coast. Nevertheless, Qantas’s domestic operations appear impervious to any challenge from Virgin Australia or market conditions.

Despite a slight 1.4 per cent drop in revenue, Qantas’s domestic underlying earnings before interest and tax (EBIT) powered ahead 12 per cent to $645 million, with operating margins rising 1.4 percentage points to 11.5 per cent.

“The domestic market continues to perform very well and we expect that to continue,” Joyce said.

“We are seeing strength in every sector apart from resources.”

The new capacity on international routes impacted on Qantas International’s financial performance however, with underlying EBIT down by 36 per cent, or more than a third, to $327 million in 2016/17, with operating margins slipping 3.2 percentage points to 5.7 per cent.

Despite this, the Flying Kangaroo has found opportunities to expand its overseas flying with acceptable financial returns such as a seasonal return to Osaka Kansai and new widebody services on Sydney-Auckland following the withdrawal of alliance partner Emirates’ A380 tag flights from the Route.

Further, Joyce said more moderate capacity growth forecast for 2017/18 from foreign carriers would alleviate some pressure on its international operations.

Qantas said Jetstar Domestic had underlying EBIT of $220 million, down nine per cent from $242 million in the prior year.

Overall underlying profit before tax, which removes one-off items and was regarded as the best indication of financial performance, was $1.40 billion in 2016/17, down 8.4 per cent from $1.53 billion and broadly in line with market Consensus.

Moody’s vice president and senior credit officer Ian Chitterer said it was a strong performance in a competitive market.

“Importantly, all segments continued to make a positive contribution, and Qantas’ credit metrics have improved, with lower overall debt because of lower aircraft operating lease expenses,” Chitterer said in a research note dated August 25.

Further, Moody’s noted Qantas and Jetstar had increased their operating margins over rivals Virgin Australia and Tigerair Australia in the local domestic market.

Meanwhile, S&P Global analyst Graeme Ferguson said Qantas had benefited from disciplined capacity growth in the Australian domestic market, structurally lower fuel prices, and past cost-saving Measures.

“The disciplined execution of its strategy has enabled Qantas to deliver stable earnings despite strong competition for high-yielding domestic corporate and government travellers and increased capacity across its international network,” Ferguson said in a research note dated August 25.

The airline group is aiming for cost savings of $400 million a year for the three years to 2019/20 led by its fleet renewal program as the Boeing 787-9 replaces older 747-400s at Qantas and the arrival of the A320/321neos for Jetstar, in addition to the use of new technology and innovation to support a more efficient operation both on the ground and in the air.

In terms of the outlook, Qantas said it planned to cut capacity in the domestic market across its Qantas and Jetstar units by one per cent in the first half of 2017/18, while unit revenues were tipped to increase on stronger demand.

And its international network capacity was forecast to expand five per cent as a consequence of previously announced new routes.

Qantas declared a final dividend of seven cents per share, unfranked. It also announced an on-market share buyback worth $373 million.

Separately, Qantas announced in early September four of its its soonto- arrive 787-9s would be based at Brisbane, potentially opening new international routes from the Queensland capital.

The first four 787-9s will be in the fleet by March 2018 and based in Melbourne. The next batch of four are due to arrive between July and November 2018 and headed for Brisbane.

The eight 787-9s will replace five 747-400s being retired.

While Qantas did not announce any new routes for the next batch of four Dreamliners, its announcement noted the 787-9 was capable of flying from Brisbane to Chicago, San Francisco, Seattle and Vancouver in North America, in addition to operating Asian routes.

Currently, Qantas’s only 747 route from Brisbane is a daily service to Los Angeles, with the aircraft also usually operating a Los Angeles-New York JFK-Los Angeles rotation before returning to Australia.

Its other widebody international destinations from the Queensland capital comprise Hong Kong, Singapore and Tokyo Narita.

Air NZ lands second biggest result

Says external outlook is improving

Air New Zealand chief executive Christopher Luxon says recent moves from international competitors to slow capacity growth to New Zealand augurs well for his airline’s prospects in the period ahead after a doubledigit profit decline in 2016/17.

The airline posted net profit of NZ$382 million (A$351 million) for the 12 months to June 30 2017, down 17.5 per cent from NZ$463 million (A$426 million) in the prior corresponding period. Nonetheless, it was the second highest result in its history.

Revenue fell 2.3 per cent to NZ$5.15 billion, Air New Zealand said on August 23.

Over the past two years, Air New Zealand has been in expansion mode, with long-haul services to Buenos Aires, Houston and Singapore launched and more widebody aircraft used on trans- Tasman routes as part of efforts to take advantage of strong growth in visitor numbers to New Zealand.

Other carriers have also been keen to tap into the local tourism market – Emirates and Qatar commenced non-stop flights from Auckland to their Gulf hubs, while Chinese carriers added new flights to New Zealand from both major and secondary Chinese cities.

However, in recent times there are signs some carriers are pulling back from the New Zealand market – Emirates has ended its Airbus A380 Sydney-Auckland tag flights, American and United have switched their year-round nonstop flights to Auckland from Los Angeles and San Francisco, respectively, to seasonal services.

Qantas-owned Jetstar has also reduced some of its regional flights in New Zealand with Q300 Turboprops.

“They’re encouraging signs,” Luxon told analysts during the company’s full year results Presentation.

“As we look forward to the year ahead we’re optimistic about the overall market dynamics.”

Earnings before taxation, which excludes one-off charges and which the airline regarded as the best indication of financial performance, fell 21 per cent to NZ$527 million, which was down from $NZ806 million.

The company has guided the market to expect improved earnings in 2017/18.

Luxon said that despite a 6.4 per cent decline in revenue per available seat kilometre (RASK) excluding foreign exchange impacts the airline’s “entire network continues to be Profitable”.

Further, RASK reversed their declines in the second half of 2016/17.

“The external environment and our internal outlook certainly improved as we progressed through the second half of 2017 and started to see the market adjust to the additional capacity,” Luxon said.

Air New Zealand said it expected to grow capacity on trans-Tasman routes five per cent in 2017/18, as it upgauged some routes to larger aircraft such as Adelaide-Auckland, which will receive Boeing 787-9 services over summer.

Long-haul capacity was tipped to rise three to five per cent, mainly due to new flights to Tokyo Haneda that commenced in July.

Air New Zealand’s domestic network was expected to grow capacity four to six per cent as it tapped into the popularity of Queenstown as a tourist destination and added more jet services.

Luxon said Air New Zealand’s trans-Tasman network, which it serves as part of a joint-venture alliance with Virgin Australia, was “very challenged for about a year” and suffered a weak first half due to increased competitive capacity and a decline in connecting passengers because of new direct services to New Zealand.

“However, we experienced substantial improvement as we went through the back half of the year,” Luxon said.

“We have seen recent signs of some rationalisation in competitive capacity and we are seeing improved revenue dynamics begin to emerge, albeit from a low Base.”

In terms of the fleet, Air New Zealand said it would take delivery of two 787-9s in a premium-heavy 275-seat configuration during 2017/18, followed by two more in 2018/19. These “Code 2” aircraft have more business and premium economy seats than on the nine 787-9s currently in service.

Earlier in 2017, the airline delayed first delivery of its Airbus A320/321neo narrowbodies by a year to July 2018, with 10 to enter service during 2018/19.

Air New Zealand chief financial officer Rob McDonald said the move to delay first delivery would enable the airline to take advantage of the new 214-seat layout for the A321neo, compared with 209 seats previously.

It would also “smooth out our capital expenditure profile”, McDonald said.

Canada considering RAAF classic Hornets?

The Canadian government is considering the acquisition of soon-to-be-retired Royal Australian Air Force F/A-18 classic Hornets to bolster its own fleet of CF-18A/B Hornets, a September 6 media report claims. The online report in the Globe and Mail says the RAAF jets are being considered as an interim capability boost in lieu of a permanent replacement for Canada’s classic Hornets being selected. It says a Canadian delegation travelled to Australia in August to begin discussions about the possibility of taking some of the RAAF’s jets as they are retired from Service.

The RAAF’s 3SQN is expected to begin swapping its F/A-18A/Bs for F-35As from late next year. As the F-35 enters service, the Hornet fleet will be consolidated. 3SQN will be followed by 2OCU, 77SQN and 75SQN at roughly one-year intervals, and all RAAF Hornets are expected to have been retired by 2022.

Canada remains a founding partner nation of the multinational Joint Strike Fighter program, and had previously stated a requirement for 65 F-35As. But after many years of delays with that program, the current Justin Trudeau-led government was elected on a platform that included an undertaking to halt its F-35 acquisition and to conduct a competitive evaluation of other combat aircraft.

In 2016, Canada requested an interim buy of Boeing F/A-18E/F Super Hornets to complement its ageing CF-18s until the competitive evaluation could be completed. Despite approvals for the acquisition through the US Defence Security Cooperation Agency (DSCA), the Super Hornet deal is yet to be signed, and more recently Canada has threatened to abandon it altogether due to a complaint in the International Trade Commission by Boeing against Montreal-based Bombardier.

Boeing has alleged Bombardier sold a number of its new CS100 regional airliners to Delta Air Lines at heavily discounted prices or below cost price due to heavy Canadian government subsidies. Bombardier and the Canadian government have denied the charge, and in response Canada says it is reviewing the Super Hornet deal.

“Canada is reviewing current military procurement that relates to Boeing, as Boeing is pursuing unfair and aggressive trade action against the Canadian aerospace sector,” a September 5 statement from Prime Minister Trudeau’s office reads.

“Meanwhile, Boeing receives billions in support from US federal, state and municipal governments.”

Canada was the first nation outside of the US to operate the classic Hornet, ordering 138 F/A‑18A/Bs in 1980 to be designated CF-188 in service, but more commonly designated CF-18. The first CF-18 entered service in 1982, and the order was completed in 1988.

The CF-18 fleet underwent a two-phased Incremental Modernisation Program (IMP) starting in the late 1990s, which brought them up to an equivalent of the US Marines F/A-18A/B+ and the RAAF’s F/A‑18A/B HUG standards. About 50 CF‑18s have been withdrawn from service through attrition and fleet consolidation, leaving about 80 in service currently.

Interestingly, just days after reports emerged of Canada’s consideration of buying RAAF jets, the US Defense Security Co-operation Agency (DSCA) announced the potential sale to Canada of Boeing F/A-18E/F Super Hornets has been approved by Congress.

The announcement says the approval covers a US$5.3bn (A$6.45bn) package comprising 10 single-seat F/A-18Es and eight F/A-18F two-seat aircraft, and a long list of support equipment and spares. Key elements of the package includes 28 ALR-67(V)3 EW kits, 15 Lockheed Martin AAQ-33 Sniper targeting pods, eight spare GE F414-GE-400 engines, and associated weapons racks and other support systems. Also included is a comprehensive weapons package which includes 100 AIM-9X AAMs and associated captive carry and training rounds.

Canada has also requested the integration of an instrument landing system (ILS) similar to that fitted to Australian F/A-18Fs and EA-18Gs, and a comprehensive training and initial sustainment package.

The Congressional approval does not mean Canada has committed to buy the Super Hornet.

BAE Systems to operate F-35 regional warehouse at Williamtown

BAE Systems Australia is to operate a regional warehouse for the F-35 Lightning II serving the Asia Pacific from RAAF Base Williamtown.

The assignment of the role by the US government is estimated to be worth more than $300 million to Australian industry over the life of the program, Minister for Defence Industry Christopher Pyne announced on August 19.

“The warehouse will provide spares to all operational units in the region, whether the Joint Strike Fighter squadrons are from Australia or visiting squadrons on deployment from other parts of the world,” Minister Pyne said in a statement. “The regional warehouse will be based at RAAF Base Williamtown near the F-35 airframe depot maintenance facility for the South Asia Pacific also assigned to BAE Systems Australia in December 2014.”

Minister Pyne noted there are further future opportunities available in the F-35 program, including the assignments for the repair of the second tranche of air vehicle components expected to be announced next year.

Sydney Airport cuts the ribbon on Shep’s Mound

Photographers looking to capture the perfect shot at Sydney Airport can now enjoy a new facility overlooking the airfield with the official opening of Shep’s Mound.

Situated near the air traffic control tower at the south-eastern end of the airfield, ‘the mound’ has been a popular location for aviation photographers for many years. In recognition of this, Sydney Airport has built two raised platforms, as well as added undercover shelter and car parking Areas.

It also recognises aviation enthusiast Bruce Shepherd by officially naming the upgraded site Shep’s Mound.

Shepherd, who died in 2005, was a regular presence at the site that now bears his name.

His brother Geoff Shepherd, who was at the official opening, was thrilled to have Bruce recognised in this way.

“We hope that dedicating the tower mound in memory of Bruce will allow his work in bringing aviation spotters together to live on for a very long time to come,” Geoff Shepherd said in a statement.

“Through his dedicated work and sense of community, the family are honoured to see our name associated with Sydney Airport and the aviation community.”

Sydney Airport chief executive Kerrie Mather said Shep’s Mound was part of fostering a strong and enduring relationship with the local Community.

“We’re delighted to provide an improved space for our plane spotting community and honoured to recognise Shep’s legacy,” Mather said.

General Atomics expands teaming for AIR 7003 bid

General Atomics Aeronautical Systems (GA-ASI) has expanded its “Team Reaper Australia” solution for the AIR 7003 armed unmanned aircraft project to nine partners.

Launched at the Avalon Airshow in February 2017, “Team Reaper Australia” is the company’s proposed teaming for the RAAF’s multi-mission remotely piloted aircraft requirement as outlined in the AIR 7003 Phase 1 Medium Altitude Long Endurance Unmanned Aerial System project.

Cobham, CAE Australia, Raytheon and Flight Data Systems were named as members of the original team alongside General Atomics at the formal announcement at Avalon.

On September 6, General Atomics said TAE Aerospace, Rockwell Collins, Ultra Electronics Australia, Airspeed, and Quickstep Holdings had joined the project.

“General Atomics recognises the importance of having a robust team of Australian industry partners to support the Air 7003 requirements,” GA-ASI chief executive Linden Blue said in a statement.

“We are strongly committed to partnerships with Australian industry and to providing a capable, affordable RPA system to the Australian Defence Force.”

The Australian Government’s integrated investment program that was published with the 2016 Defence White Paper outlined a plan to acquire an armed unmanned aircraft to provide an integrated and persistent intelligence, surveillance, reconnaissance and attack capability to support the Australian Defence Force and coalition forces.

General Atomics may put forward either the existing US Air Force MQ-9 Reaper or the Type- Certifiable Predator B (marketed as the SkyGuardian), which the USAF has designated as the MQ-9B.

The expanded teaming announcement comes as a senior executive from Israeli Aerospace Industries (IAI), which is competing with the General Atomics bid for the contract, recently criticised Defence for a lack of transparency over the evaluation process.

“The preference for a US product, in the absence of an open competitive tender, creates an environment in which there is little transparency of how the Australian Department of Defence is managing the project, and how it has arrived at its decision,” IAI executive vice president and general manager for its military aircraft group Shaul Shahar told the ABC’s AM Program.

“With all the risk analysis, all competitive analysis they need to do here, they haven’t done it because no-one has approached us.

“No one has offered to put our data of the system on the table. So … no evaluation can be complete.” IAI is putting forward its medium altitude, long endurance Heron TP for AIR 7003, a more capable development of the basic Heron platform that saw service with the RAAF.

The RAAF leased three Herons in late 2009 to meet an urgent operational requirement to provide surveillance support to Australian and coalition troops in Afghanistan, becoming the first unmanned aircraft to be operated by the RAAF (the Jinidivik target drone aside).

In 2014, Defence extended the lease of two Herons for operations within Australia for a further six Years.

However, the lease extension was cut short, Defence said in August 2017.

All Nippon Airways keen to lift profile in Australia

Japan’s All Nippon Airways (ANA) has teamed up with chef Adam Liaw as it seeks to increase its awareness in Australia and mulls adding additional flights to this part of the World.

Australians’ deepening love affair with Japan has led to a resurgence in the Australia-Japan market, with government figures showing the number of travellers between the two countries jumping 10.3 per cent to 1.3 million in 2016/17.

Japan is Australia’s 10th largest international passenger market, based on uplift and discharge data. Today, the traffic between the two countries is far more evenly balanced, compared with the 1990s when it was almost exclusively Japanese heading Down Under.

ANA vice president and general manager for Oceania Ryo Sadayuki says he is delighted with the performance of the Star Alliance member’s daily Sydney-Tokyo Haneda service since it launched in December 2015.

“I would say it is greater than I expected,” Sadayuki told Australian Aviation in an interview on September 4 after officially unveiling Liaw as the airline’s celebrity culinary ambassador. “Every month we have more bookings than last year, so it well indicates that we are doing great and very happy to see more and more Australian people on our Flights.”

ANA’s return to Sydney at the end of 2015 with Boeing 787 Dreamliners ended a 16-year absence in the Australian market.

Operating as an overnight flight in both directions, the morning arrival into the close-in Haneda airport offers travellers the widest range of domestic connections throughout Japan, as well as connections to a number of destinations in Europe and North America.

“Early morning arrival from Sydney enables everyone to take a morning flight to Sapporo and begin skiing before lunchtime,” Sadayuki said.

“I believe it is definitely ANA’s core mission to assist Australian travellers to experience Japan utilising our extensive domestic network at Haneda.”

Further, an interline agreement with Virgin Australia provides connections beyond Sydney.

Figures from the Bureau of Infrastructure, Transport and Regional Economics (BITRE) show ANA’s daily service carried 134,107 passengers in calendar 2016, the first full year of operation. The inbound service had average load factors of 83.4 per cent, while its Sydney departures took off with average load factors of 85.3 per cent.

Sadayuki noted the number of Australians visiting Japan had exceeded the number of Japanese travelling to Australia for the first time in 2015.

The growth in the market has also led to other carriers adding more capacity on Australia-Japan.

ANA rival Japan Airlines recently added Tokyo Narita- Melbourne nonstop flights – on top of its existing Sydney-Tokyo Narita Offering. Qantas too has added two new Japanese routes – from Brisbane and Melbourne to Tokyo Narita – with a third on the way after announcing a seasonal Sydney- Osaka Kansai schedule over the peak summer holiday period.

Asked for his thoughts about recent moves by other carriers, Sadayuki said there was enough demand to meet the increase in Capacity.

“I don’t think it’s too much,” Sadayuki said.

“The demand has been growing very steadily and I really welcome their decisions to increase frequencies because I believe those capacity increases will again stimulate the demand.”

Moreover, he said ANA was also open to considering further expansion in Australia, noting the airline served both Brisbane and Sydney during those heady days 20 years ago.

“We will carefully look at it. We are always keen on thinking about something additional,” Sadayuki said. “I don’t know what it is and I don’t know when it is. It depends on the market and aircraft availability and so forth.”

“The Australian market is very important for ANA right now because since our inauguration we have had very high load factors and still growing booking tendencies and so forth.

“Many of our senior management are really confident on the Australian market.”

Korean Air first operator of Boeing 747-8I to Australia

Korean Air has become the first airline to operate the latest passenger variant of Boeing’s evergreen 747 to Australia.

The Skyteam alliance member’s Boeing 747-8I HL7642 touched down at Sydney Airport in the early hours of Saturday, September 2 as KE121 from Seoul Incheon.

The aircraft was on the ground for about one hour and 40 minutes before taking off as the reciprocal KE122.

While Cathay Pacific has used the 747-8F freighter to Australia for a number of years, including to Brisbane West Wellcamp Airport, Korean Air is the first airline to operate the 747-8I to Australia.

The only other 747-8I flights to Oceania have been occasional Korean Air flights between Seoul Incheon and Auckland and Air China services between Beijing and Auckland.

Korean Air is one of just three airlines flying the 747-8I passenger variant alongside Air China and Lufthansa, while there are 10 operators of the 747-8F Freighter.

The Boeing website shows the 747-8 program has garnered 133 orders, comprising 88 -8F freighters and 45 -8I passenger aircraft. Of those 115 aircraft have been delivered, with 18 orders (17 freighters and one passenger variant) outstanding.

In July, Boeing said it was “reasonably possible” the company could end production of the 747 should new orders not Materialise.

Further, the production rate of the iconic aircraft was cut to six frames a year at the start of September.

United to launch Sydney-Houston

United will add a third longhaul route from Sydney from January 2018 when it starts nonstop flights to Houston with Boeing 787-9s.

The Star Alliance member says the new Sydney-Houston service will open up more one-stop options for passengers travelling between Australia and the United States.

“Our Houston hub is stronger than ever and it continues to be an absolutely vital part of our industryleading network,” United president Scott Kirby said in a statement on Thursday (US time).

“This new route will serve more than 70 cities across North America making one-stop service to Sydney faster and more convenient than ever before.”

The United statement noted a passenger originating in Charlotte and travelling to Sydney on United would currently fly to Chicago and then San Francisco before making the trans-Pacific flight to Sydney.

When Houston-Sydney services launch on January 18, that passenger would have a one-stop itinerary, transiting over Houston en route to Sydney.

The flights have been scheduled as a lunchtime departure from Sydney and an overnight service from Houston.

Currently, United flies from Sydney to Los Angeles and San Francisco, as well as from Melbourne to Los Angeles, with Boeing 787 equipment.

At 7,470nm, Sydney-Houston will be United’s second-longest nonstop flight alongside its San Francisco-Singapore (7,340nm) and Los Angeles-Singapore (7,621nm) services that are also operated with 787-9s.

The airline’s move to launch flights from Sydney to Houston comes as Qantas evaluates new routes for its soon-to-arrive 787‑9s, as well as plans to serve New York and London nonstop from Australia’s east coast with either the Boeing 777-8X or Airbus A350‑900ULR.

It will also go head-to-head against Qantas’s Airbus A380 Sydney-Dallas/Fort Worth flight. Further, United may also take away passengers from Australia who are travelling to the United States via Air New Zealand’s Auckland hub.

The Kiwi flag carrier has been aggressively targeting the Australian market for its flights to the Americas, where it flies to Los Angeles, San Francisco, Houston, Vancouver and Buenos Aires.

United’s 787-9s feature 48 business, 63 extra-legroom “economy plus” and 141 seats economy seats for a total 252.

Virgin Australia lifts Hong Kong schedule to daily

Virgin Australia has further tweaked its Melbourne-Hong Kong service after securing an extra two landing and takeoff slots at the busy Chep Lap Kok Airport. As a consequence, the current five times a week schedule will move to daily from November 12.

Air Canada schedules yearround flights for Melbourne

Air Canada has upgraded its upcoming nonstop service between Vancouver and Melbourne from seasonal to year-round. The Star Alliance member is scheduled to begin seasonal flights to Melbourne – its third Australian destination alongside Brisbane and Sydney – from Vancouver four times a week during the peak summer holiday period between December 1 2017 and February 4 2018 with Boeing 787-9 equipment. Following a near four-month hiatus, Air Canada will then commence year-round flights on the route three times a week from June 1 2018, with a morning departure from Melbourne and an overnight service out of Vancouver.

Virgin Australia launches flights to Samoa

Virgin Australia will maintain services to Samoa after its Virgin Samoa jointventure with the Samoan government is wound up in November. The airline has launched nonstop flights to Apia from Auckland, Brisbane and Sydney due to kick off from November 13 2017. Under the new schedule, Virgin plans to offer five flights a week on the Apia-Auckland route, two flights a week on Apia-Sydney and a once weekly service between Apia and Brisbane with Boeing 737‑800s featuring eight business and 168 economy seats. The flights are subject to Samoan government approval.

Sydney Airport consults on expansion plans

Sydney Airport says it is in talks with airlines on plans to expand Terminal 1 and introduce international flights at the Terminal 2/3 precinct.

The company floated the proposed expansion at its annual general meeting (AGM) in May, which in addition to new gates, baggage system expansions and apron capacity at Terminal 1 also raised the prospect of a new Terminal 4 offering new international gates adjoining T2/T3.

There were also plans for new aeronautical facilities in the southsouth- east sector, south of General Holmes Drive.

Sydney Airport said the capital expenditure for these projects would be about $500 million, depending on the scope of the work, with a decision to be made based on “stakeholder consultation and the satisfaction of internal business cases”.

“We continue to deliver on our strategy of investing in a significant improvement in customer experience and capacity to support our airline partners’ growth,” Sydney Airport chief executive Kerrie Mather said on August 22 when the company published its calendar 2017 first half results.

“We’ve commenced consultation with our airline partners and stakeholders on the next phase of international capacity expansion, including additional aerobridge gates, more baggage system capacity and aircraft aprons.”

The airport has maintained its capital expenditure guidance of $1.3 billion between 2017-2021, including $450 million in calendar 2017. It said the $500 million for expansion projects was excluded from this guidance.

The slides, first published at the Sydney Airport AGM in May, showed the proposed Terminal 4 would be located where Qantas’s maintenance facilities are currently.

Qantas chief executive Alan Joyce has said previously the airline was in good dialogue with Sydney Airport regarding any move of its jet base.

However, Joyce said any move would be over a long period of time.

“We are working through exactly where the maintenance facility is and what happens to the cargo facilities as well, so there is significant redevelopment of Sydney,” Joyce told reporters on the sidelines of the IATA annual general meeting in Cancun, Mexico in early June.

“We’re talking about over the next couple of decades.”

In terms of the financial results, Sydney Airport reported first half net profit of $167 million, up 4.4 per cent from $160 million in the prior corresponding period. Total revenue rose 7.9 per cent to $714.2 million.

Aeronautical charges, which made up a little over half of the airport’s total revenue and comprised payments from airport users for terminal and airfield infrastructure use, rose eight per cent to $364.2 million.

Revenue per passenger increased 4.2 per cent to $34.10, compared with $32.70 per passenger in the prior corresponding period.

Retail had the largest revenue growth, rising 14.3 per cent to $162.6 million. Rents from duty free shops, food outlets and other advertising made the second largest contribution to revenue at 23 per cent.

Sydney Airport declared an interim distribution of 16.5 cents per stapled security. It also lifted full year distribution guidance for calendar 2017 to 34.5 cents per stapled security, from 33.5 cents previously, thanks to “strong capital management outcomes and excellent operational performance”.

Reflecting the importance of international flights to revenue, Sydney Airport said overseas flying accounted for 15 per cent of landing and takeoff slots but accounted for 70 per cent of passenger-driven Revenues.

To that end, Sydney Airport said the already announced new services and increased frequencies or upgauging to larger aircraft on existing routes from the likes of Beijing Capital Airlines to Qingdao, China Airlines to Taipei and Qantas to Osaka so far in 2017 contributed to the positive growth outlook for the second half of 2017.

Total passenger numbers rose 3.6 per cent to 21 million during the first half of calendar 2017, with international travellers up 7.7 per cent to 7.7 million and domestic travellers up 1.3 per cent to 13.2 million.

In May, Sydney Airport said it would not take up its right of first refusal to build and operate the proposed airport at Badgerys Creek.

The Commonwealth said it would build the airport and has established WSA Co, a government-owned corporation tasked with building and operating Sydney’s longawaited second airport, with a major works contract expected to be awarded in 2019.

Qantas restructures leadership team

Qantas will have new bosses for a number of its business units from November as it shakes up its leadership team following the retirement of a long-time executive.

Among the changes announced on August 28, Alison Webster has been promoted to chief executive of Qantas International. Currently, Webster is executive manager of freight, catering and airports, having held a number of different roles at Qantas previously.

“Alison has close to 30 years’ experience in aviation, including 13 at Qantas. She’s held senior executive roles across commercial, customer and operations here and with British Airways,” Qantas chief executive Alan Joyce said in a statement. Current Qantas International chief executive Gareth Evans will become Jetstar group chief executive, replacing Jayne Hrdlicka.

In turn, Hrdlicka has been appointed chief executive of Qantas’s loyalty and digital ventures business, taking over from Lesley Grant.

Grant has been named Qantas’s group executive for people and culture, following the retirement of Jon Scriven after eight and a half years at the Company.

And Andrew David will add responsibility for freight, catering and airports to his role as Qantas Domestic chief Executive.

In other changes, Olivia Wirth has been named chief customer officer, while retaining her role as group executive for brand, marketing and corporate affairs.

New flight data app launched

Pilots will be able to access their individual flight data with a few easy swipes thanks to GE Aviation’s new app developed in partnership with Qantas.

The FlightPulse app “uses recorded aircraft data and smart analytics to enable pilots to securely access their individual operational efficiency metrics and trends”, GE Aviation said.

Being an app, it offers pilots the ability to access the data anywhere in the world and at any time, allowing pilots to more easily track their flight’s performance in terms of fuel efficiency. It was hoped this would lead to more efficient operations to help save fuel and reduce carbon emissions.

“FlightPulse was designed by pilots for pilots. As a result, the information accessible on this platform helps them understand the operational efficiency of their flight,” Qantas head of fleet operations Captain Mike Galvin Said.

“It provides pilots with flight data in a very visual way, allowing them to see first hand the amount of fuel used at different stages of a flight and how they can help to reduce carbon emissions.”

Captain Galvin said the data available on FlightPulse was only previously available in aggregate or used by analysts.

“Qantas is a great example of Australian innovation at its best, constantly at the forefront of finding better ways to enhance their operations,” GE Aviation vice president and chief digital officer John Mansfield said .

“Through close collaboration, we were able to develop a solution for the industry that connects pilots with individualised operational efficiency data for the first time.”

Jetstar A320 tail strike

The Australian Transport Safety Bureau (ATSB) has released its report into a tail strike incident involving a Jetstar Airbus A320 taking off from Melbourne on May 11 2016.

The tail strike, which occurred when a cadet pilot applied an excessive sidestick input during rotation, took place on Jetstar Airbus A320 VH-VGF which was departing Melbourne bound for Hobart carrying 134 passengers and seven crew.

It was the cadet pilot’s first flight as the pilot flying. Alongside him in the flightdeck was a training captain in the left seat and a safety pilot in the jump seat.

The ATSB’s final report, published on Monday, said the cadet pilot applied the larger than normal sidestick pitch input which resulted in a higher than normal pitch rate and the aircraft rotated “significantly faster than usual”.

While there were no indications in the flightdeck of anything abnormal as the aircraft began its normal climb with standard acceleration, cabin crew seated at the rear of the aircraft alerted the pilots they had heard what may have been the sound of the aircraft tail possibly contacting the runway.

The captain decided to return to Melbourne for the aircraft to be inspected, advising air traffic control of an “engineering issue” and that “ops were normal”, the ATSB report said.

For the landing, the captain was the pilot flying, while the cadet pilot and safety pilot changed seats, with the safety pilot the pilot monitoring for the return to Melbourne.

After landing, an engineering inspection confirmed that a tail strike had occurred.

“Damage to the auxiliary power unit (APU) diverter (air inlet) and APU drain mast was evident,” the ATSB said.

“This damage was consistent with the aircraft tail contacting the runway surface during rotation.”

The ATSB said Jetstar’s flightcrew training manual showed the pilot flying should apply a half forward setting on the sidestick control at the start of the takeoff roll, or full forward in the case of crosswinds, to counteract the pitch up movement during thrust application until the aircraft reaches 80 knots.

The input should then be gradually reduced to zero by 100 Knots.

Rotation should be initiated with a smooth positive backward sidestick input, which was typically one-third to half backstick, with the initial rotation rate about three degrees a second.

The ATSB said information from the flight data recorder showed the “nose-up input reached a maximum value of 12.5° or 78 per cent of a full-scale input”.

“The aircraft rotated with a pitch rate of about nine deg/sec reaching a maximum pitch attitude of 16 degrees. The sidestick input was then reduced and the aircraft’s pitch attitude correspondingly reduced.”

The ATSB said information from aircraft manufacturer Airbus advised that, with the main landing gear fully compressed and wings level, the pitch attitude that would result in ground contact for the A320 is 11.7 degrees. With the main landing gear fully extended, the pitch attitude that would result in ground contact is 13.5 degrees.

The cadet pilot undertook additional training and assessment before returning to flight duties, the ATSB said.

Further, Jetstar also circulated a newsletter to its A320 flightcrew highlighting the need to inform ATC of a suspected tail strike or any failure resulting in damage or Debris.

“The potential tail strike was not adequately communicated to Melbourne air traffic control,” the ATSB said.

“This delayed checking the runway for aircraft debris.”

“When a potential tail strike has been reported, ATC restricts operations on the affected runway and arranges that a runway inspection is carried out to identify any runway damage or aircraft debris. Metallic debris poses a particular hazard to aircraft tyres.”