Debrief

However, the A330-800neo program was dealt a significant blow in early March when its only customer Hawaiian Airlines dropped plans to operate the type and instead signed a non-binding letter of intent (LOI) to order 10 787-9s, as well as purchase rights for a further 10 aircraft. The aircraft will be powered by General Electric GEnx engines, with deliveries to begin in 2021.

The Boeing 737 MAX 10, the largest member of the MAX family of aircraft, has reached firm configuration, bringing the aircraft one step closer to the start of production. Following this milestone, 737 MAX 10 program would now move into the “detailed design phase”.

Australia’s Adagold Aviation is part of a new joint-venture with Portuguese charter and defence aviation services company HiFLy, to be called SkyTech, that has signed a letter of intent to buy up to six Embraer KC-390 transports. The aircraft have been earmarked for multiple defence projects.

Turboprop maker ATR, which offers the 42-600 (46-50 seats) and the ATR 72-600 (68-78 seats), has Australia’s ageing regional fleet in its sights as it seeks new opportunities in this part of the world following the reduction of Virgin Australia’s turboprop operations. ATR managing director Jean-Pierre Clercin says “all the turboprops actually are potential targets”, including the Saab 340, the Dash 8 100, 200, 300, 400 and even the Metros.

Airbus is targeting about 800 commercial aircraft deliveries in calendar 2018. However, it said in mid-February achieving that goal depended on “engine manufacturers meeting commitments”, noting issues with the Pratt & Whitney’s PurePower PW1100G geared turbofan and the CFM International LEAP-1A has affected A320neo deliveries in calendar 2017, when it delivered 718 commercial aircraft.

Boeing’s 737 MAX 9 has received its amended type certificate from the US Federal Aviation Administration (FAA) following a 10-month flight test program, paving the way for first delivery to launch customer Indonesia-based Lion Air Group.

Still on Boeing, thousands its employees gathered at the company’s Renton facility in Washington State to celebrate the delivery of the 10,000th 737 to Southwest Airlines and a new world record on March 13. The milestone aircraft is a 737 MAX 8, N8717M.

Embraer’s E190-E2 regional jet has received certification from authorities in Brazil, Europe and the United States, the final hurdle before first delivery to launch customer Wideroe. The Scandinavia-based carrier’s inaugural service with the E190-E2 has been scheduled for April 24 from Bergen to Tromso.

Still on Embraer, the Brazil-headquartered manufacturer expected to deliver 85-95 commercial aircraft in 2018, compared with 107 commercial aircraft delivered in 2017. The company said the lower delivery target was due to 2018 being the “first year of transition from the E1 to the E2 family of commercial jets”.

QANTAS NEWS

Qantas has posted net profit of $607 million for the six months to December 31 2017, up 17.9 per cent from $515 million in the prior corresponding period, as strong growth in its domestic network helped offset some declines on international routes. Qantas chief executive Alan Joyce said the result was achieved in a challenging first half amid higher fuel costs, a competitive domestic market and international capacity growth.

Qantas plans to commence daily nonstop Bali-Melbourne services with Boeing 737-800s from July 23 2018. The move follows its low-cost-carrier (LCC) unit Jetstar boosting its schedule on the route to twice daily 787-8 services in February, from 10 times weekly previously.

Airbus head of A350 marketing Marisa Lucas-Ugena says the airframer is in an “extremely good place to work on this challenge” of meeting Qantas’s Project Sunrise requirements for ultra long-haul flights from Australia’s east coast to London and New York. Airbus had its A350-1000 in Sydney for a promotional visit in mid-February.

Similarly, Boeing Commercial Airplanes vice president of marketing Randy Tinseth says the manufacturer’s still-in-development 777-8X is the ideal candidate for Project Sunrise, adding that the “baseline of the 8X is a much better place to start than any of our competitor’s baselines”.

And a likely contender Project Sunrise has broken cover, with the first Airbus A350-900ULR (Ultra Long Range) aircraft emerging from the manufacturer’s final assembly line at Toulouse on late February. The aircraft is the first of seven Singapore Airlines (SIA) has on order for the resumption of Singapore-New York and Singapore-Los Angeles nonstop services.

In a draft ruling, the Australian Competition and Consumer Commission (ACCC) has approved an extension of the Emirates and Qantas global alliance for a further five years. However, the competition watchdog has called for Emirates and Qantas to provide it with regular reports on seats and passengers flown, fares and profitability on its Sydney-Christchurch services, given its concerns about the pair’s potential to “significantly impact competition” on the route.

Qantas plans to establish a new pilot training academy with the capacity to train up to 500 pilots a year. To be called the Qantas Group Pilot Academy, the school will open its doors in 2019 and is initially for direct entry cadets joining the Qantas Group, including Jetstar and QantasLink. A location is yet to be announced.

‘To be called the Qantas Group Pilot Academy, the school will open its doors in 2019.’

Qantas is seeking to expand its codeshare agreement with Air Niugini on Australia-Papua New Guinea (PNG) routes. It applied to Australia’s International Air Services Commission (IASC) to add its QF code on Air Niugini’s nonstop Cairns-Port Moresby and Townsville-Port Moresby services and continue existing codesharing arrangements on the Sydney-Port Moresby (operated by Air Niugini) and Brisbane-Port Moresby routes (operated by both Qantas and Air Niugini). Virgin Australia opposed the application and told the IASC the codeshare would “jeopardise” its ability to maintain a presence in the market.

Clear skies and Australia’s rugged outback have greeted the arrival of Qantas’s fourth Boeing 787-9, which features a special indigenous livery inspired by the work of artist Emily Kame Kngwarreye. The aircraft touched down in Australia following its delivery flight from Seattle at Alice Springs on March 1 2018.

The future of Qantas’s nonstop Sydney-Dallas/Fort Worth (DFW) service and American Airlines’ Sydney-Los Angeles flight are at risk should they be unable to secure anti-trust immunity for an expanded alliance, the two carriers said in their application to the US Department of Transportation for a revenue-sharing, metal-neutral, joint business agreement (JBA).

The first of two former Jetstar Airbus A320s has been repainted into Qantas colours has arrived in Perth, where it will operate under the QantasLink brand at subsidiary Network Aviation on resource industry fly-in/fly-out charter services in Western Australia.

VIRGIN AUSTRALIA NEWS

Virgin Australia has posted a net profit after tax of $4.4 million for the six months to December 31 2017, compared with a loss of $21.5 million in the 2016/17 first half. The result was underpinned by an improved domestic market and a pickup in the resources sector. Underlying profit before tax more than doubled to $102.5 million.

Virgin Australia chief executive John Borghetti says his airline is in no hurry to place an order for new widebody aircraft, pointing to the relatively young age of its six Airbus A330-200s and five Boeing 777-300s. Borghetti says it would be the “early- to mid-2020s” before the airline would look at replacing those aircraft.

Meanwhile, Virgin Australia has reaffirmed its commitment to begin taking Boeing 737 MAX aircraft from the final quarter of calendar 2019. However the airline declined to break down its current 737 MAX order into the various sub-types. Further, chief financial office Geoff Smith said the airline was “constant contact with Boeing on the delivery dates on the whole order book, including those lead aircraft”.

Virgin Australia chairman Elizabeth Bryan said in a statement the board had decided not to privatise the company. However, it launched a buy-back scheme where shareholders holding less that $500 worth of shares can sell those shares back to the company for $0.30 a share.

In other Virgin Australia news, the airline plans to commence daily nonstop Sydney-Hong Kong services with Airbus A330-200s from “mid-2018. No start date as announced. It will be the airline’s second route to the Special Administrative Region, having started Melbourne-Hong Kong flights in July 2017. Melbourne-Hong Kong will drop back from daily to five times weekly once its Sydney-Hong Kong flights start.

Virgin Australia has told a Senate Committee inquiry into regional air services many of the regional routes it operates “do not deliver acceptable commercial returns at current levels of pricing”, noting regulatory restrictions and high airport charges acted as roadblocks preventing more flights to regional communities.

Virgin Australia has signed a six-year deal with catering company Gate Gourmet to be its “sole service provider” for the airline’s 450 daily domestic and international flights. The new deal would expand the current portfolio of work Gate Gourmet does for Virgin Australia by about 40 per cent and lead to 100 new jobs.

JETSTAR NEWS

Jetstar will take delivery of 18 long-range Airbus A321neoLR aircraft from the mid-2020 to the end 2022 under the latest restructure to its A320neo order book. The A321neoLR will be used domestically and from Melbourne and Sydney to Bali, helping free up Boeing 787-8s for use to other destinations in China, Thailand and Vietnam, as well as Honolulu in the United States.

BUSINESS JET NEWS

Textron Aviation announced at the Singapore Airshow its midsize Cessna Citation Latitude business jet has been certified by Australia’s Civil Aviation Safety Authority (CASA) and the Civil Aviation Administration of China, bringing to 43 the number of countries for which the aircraft has now received certification.

INDUSTRY NEWS

The Royal Flying Doctor Service South Eastern Section (RFDS SE) announced an order for two modified Beechcraft King Air 350 cargo heavyweight aircraft at the Singapore Airshow. The two aircraft will replace older King Air B200s currently in the fleet.

Australia-based Permagard Aviation, which supplies antimicrobial shields for aircraft interiors and protective exterior coating for aircraft exteriors, has secured a partner in the fast-growing Asian aviation market through a partnership with aviation consultancy and services company RISE Aerospace. The aerospace antimicrobial coating market is forecast to grow to US$31.2 million by 2022, from S$22.4 million in 2017, according to figures from ASDReports.

The aerospace arm of Singapore-based ST Engineering plans to begin trials of the Fountx_AsR wearable assisted technology developed by Australian firm TAE and the CSIRO, it was announced at the Singapore Airshow. Fountx_AsR comprises a headset that includes a camera, microphone and eye-level display screen powered by a computer inside a backpack.

Sydney Airport has posted a nine per cent improvement in net profit for calendar 2017 to $349.8 million, underpinned by strong international passenger growth. Sydney Airport chief executive Geoff Culbert said the company would continue to “develop new and underserved routes and markets and support the growth of aviation in Sydney, NSW and Australia”.

The Australian Local Government Association (AGLA) is the latest organisation to join forces with the Australian Airports Association (AAA) “Protect Regional Airports” campaign, which calls for a broadening of government support to fund improvements to regional airstrips to the tune of $160 million over four years.

Airservices Australia, the Department of Defence and Thales have signed final contracts to build Australia’s new joint civil and military air traffic management system, known as Onesky. Parts of the new Onesky system, now valued at $1.2 billion, are expected to be operating by 2018, with full operating capability expected in 2023, two years later than the original 2021 completion date.

New Deputy Prime Minister Michael McCormack has taken on responsibility for aviation matters as Minister for Infrastructure and Transport. McCormack won a party room ballot in Canberra on February 26 to become the leader of the Nationals and with it the position of Deputy Prime Minister. He replaced Barnaby Joyce.

Hobart Airport is looking for new flights to Asia and to consolidate its position as the gateway to the Antarctic after the completion of its runway extension project where Runway 12/30 was lengthened by 500m to 2,751m, with a 150m extension at the northern end and 350m at the southern end. This would enable aircraft such as the Boeing 777 or Airbus A330 to takeoff with a full payload of passengers and fuel

DEFENCE NEWS

Minister for Defence Industry Christopher Pyne officially opened Lockheed Martin Australia’s new head office in Canberra’s parliamentary triangle, close to its main customer, the federal government and Defence.

Royal Australian Air Force F/A-18F Super Hornet and EA-18G Growler aircrews have experienced “physiological episodes”, which are caused by “complex interactions between human physiology and the aircraft breathing air system”, while flying the aircraft, the Department of Defence has confirmed. The statement from Defence comes after it was thought the F/A-18 and EA-18G aircraft’s onboard oxygen generating system (OBOGS) had triggered a number of hypoxia-like physiological events for US Navy aircrews, as well as some decompression events, in the past decade. The issue was raised in US Congressional hearings in February.

The combat effectiveness of the RAAF’s Super Hornets and Growlers could be the beneficiary of a US Navy decision to fund the development of range-extending conformal fuel tanks. The US Navy in February awarded Boeing a US$219.6 million contract to develop the conformal fuel tanks – or CFTs – for the Super Hornet airframe, covering the “design, development, test and integration” of the conformal fuel tank. The work was expected to be completed in mid-2022.

Canada’s Public Works and Government Services agency has approved the US aerospace giant as a potential bidder for its long-overdue CF-18 Hornet replacement fighter program, which has been delayed several times after the Canadian government put on hold its commitment to the F-35 JSF program following the election of the Trudeau government in 2015.

Engine component failure has been identified as the most likely cause of the catastrophic engine failure and subsequent fire onboard an RAAF EA-18G Growler that was taking off for a famil flight over the Nellis Test & Training Range in preparation for the commencement of Exercise Red Flag 18-1 at Nellis AFB on January 28, Defence said.

GOVERNMENT NEWS

Dassault Falcon Asia Pacific president Jean Michel Jacob says the Falcon 7X and 8X tri-jets have the flexibility to meet the Australian Government’s aircraft requirements, as the clock ticks down to a decision following a long evaluation process for the replacement of its VIP fleet.

AIRLINE NEWS

Regional Express (Rex) has reported a 46.8 per cent improvement in 2017/18 first half net profit to $9.1 million as passenger numbers and yields improved amid more activity in the resources sector. The company is forecasting a 20 per cent improvement in 2017/18 full year profit compared with the prior corresponding period.

Still on Rex, the airline has signed a deed of arrangement with the West Australian government to operate the Perth-Canarvon and Perth-Monkey Mia for a five-year term beginning July 2 2018. Rex replaces Skippers Aviation, which held the previous WA government contract

Singapore Airlines (SIA) has sounded a note of caution about the recent rise in fuel prices after posting a 42.5 per cent increase in net profit for the nine months to December 31 2017 to S$711 million. While there was stronger passenger and cargo flown revenue, the airline group noted fuel prices had been trending higher, with volatility expected to persist in the months ahead.

In more SIA news, Australia will welcome the Boeing 787-10 to these shores for the first time in May 2018 when the airline commences flights to Perth with the next generation widebody. One of SIA’s four daily flights between Perth and its Singapore hub would switch to the 787-10, replacing either the Boeing 777-200 or Airbus A330-300 which currently operate on the route. SIA’s 787-10s feature 36 new, yet-to-be-revealed, regional business class seats offering direct aisle access for every passenger and 301 economy class seats in a 3-3-3 layout for a total of 337.

International Air Transport Association (IATA) chief executive and director general Alexandre de Juniac said 2017 was a very good year for aviation safety”, with the industry body’s annual Safety Performance report showing the world’s airlines suffered six fatal accidents in the year that resulted in the deaths of 19 passengers and crew. The figures were down from nine fatal aircraft accidents and 202 fatalities in 2016..

Air New Zealand has flagged an improved financial result for the full 2017/18 year despite first half net profit falling 9.4 per cent to NZ$256 million due, in part, to higher fuel prices.

In other Air New Zealand news, the airline said it was targeting the replacement of its Boeing 777-200ER fleet of eight aircraft from 2022, with the selection process currently underway. The airline’s chief executive Christopher Luxon has spoken previously about having an aircraft capable of operating nonstop from Auckland to New York.

Qatar Airways has added a fifth Australian destination to its international network, with the commencement of flights to Canberra on Monday, February 12 2018. Canberra as part of a Doha-Sydney-Canberra-Sydney-Doha routing. The capital joins Adelaide, Melbourne, Perth and Sydney in Qatar Airways’ Australian network.

Still on Qatar, the airline has become the first airline to operate the A350-1000. Qatar took delivery of its first A350-1000, A7-ANA, in February, and the aircraft has been deployed on the Doha-London Heathrow route.

Business aviation start-up Airly, where members can book seats on available business jet flights operated by charter companies, says it has experienced steady growth since launching in the middle of 2017.

New Zealanders will have a new nonstop option to Bali from June when Emirates Airline commences flights between Auckland to the popular Indonesian tourist destination. The airline will operate Dubai-Bali-Auckland flights with Boeing 777-300ERs starting on June 14 2018. Emirates already flies Auckland-Dubai nonstop with the Airbus A380.

Cobham plc said its Aviation Services division suffered a 43 per cent fall in operating profit to ￡22.8 million (A$40.6 million) and a near halving of operating margin to 6.2 per cent in calendar 2017. Cobham plc chief executive David Lockwood said the operating profit was affected by the “adverse impact” from the first full year of its new “repriced” contract with Qantas to operate regional services.