Debrief

— Qantas and its low-cost carrier (LCC) business Jetstar are aiming to cut the amount of waste they send to landfill by 75 per cent by the end of 2021. The airline group is phasing out plastic frequent flyer cards and removing unnecessary paper such as boarding passes and operational manuals as part of what it described as a major environmental push. Some 100 million single-use plastic items would be removed from its flights and premium passenger lounges by the end of 2020, including plastic wrapping on blankets, headphones, pens and pyjamas. The airline is also changing some of its food packaging to more sustainable materials, such as cutlery sets, coffee cups, plastic cups and headrest covers. Qantas chief executive Alan Joyce said the 75 per cent goal was the highest waste reduction target set by an airline in the world and went well beyond the recent European Union ban on singleuse plastics.

— Qantas has posted a double digit decline in net profit for the 2018/19 first half as higher fuel costs hit the bottom line. The airline group said net profit for the six months to December 31 2018 came in at $498 million, down 16. 3 per cent from $595 million in the prior corresponding period.

Qantas chief executive Alan Joyce said higher oil prices were a “significant headwind” for the airline group in the half, with the total fuel bill increasing by $416 million. “We moved to quickly recover as much of the cost as we could,” Joyce said at the company’s first half results presentation on February 21. “That’s easier to achieve in the domestic market than on longer international routes, where fuel is a much bigger factor, and that’s reflected in the segment results we’re reporting today. ” Looking ahead, Joyce said forward bookings remained strong and noted oil prices had declined from the peaks of late 2018.

‘The resources sector continues to show positive signs. ’ ALLIANCE AVIATION SERVICES

— Cathay Pacific told the Stock Exchange of Hong Kong it was looking into a possible investment in local rival and low-cost carrier (LCC) Hong Kong Express. The statement on March 5 said the company was in discussions to acquire shares in Hong Kong Express Airways (HKE) from HNA Group. “No agreement for the acquisition has been entered into and there can be no certainty that any agreement will be entered into. Further announcement(s) will be made as and when appropriate,” Cathay Pacific said. HNA Group has been undergoing a major corporate restructure and selling assets as part of efforts to reduce debt and improve its financial position.

— Alliance Aviation Services reported net profit for the six months to December 31 2018 rose 40 per cent to $9. 85 million, from $7. 1 million in the prior corresponding period. Revenue rose 17. 5 per cent to $137. 79 million, Alliance said in a regulatory filing to the Australian Securities Exchange (ASX) on February 6. Looking ahead, Alliance said it expected a strong second half amid ongoing improvement in the resources sector.

“The resources sector continues to show positive signs with generally increasing commodity prices,” Alliance said. “The group forecasts an increase in flying activity for contract clients in the second half of the year.

This will be as a result of extensive mine maintenance programs being scheduled during the period. Clients are also continuing to increase existing schedules and request more capacity. ” Total flying hours rose 21 per cent to a record 19,670 hours in the first half of 2018/19, compared with 16,207 hours in the prior corresponding period. The bulk of the increase was in wet lease flying.

— Alliance Aviation Services said February 18 it would operate flights on behalf of Virgin Australia until the end of 2021 under a new expanded contract. The contract extension was announced in a regulatory filing to the Australian Securities Exchange (ASX) and covered wet lease flying, where Alliance supplied the aircraft and crew, on domestic routes and an international service between Brisbane and Port Moresby that began in late February. “Since the signing of our long-term strategic partnership with the Virgin Australia Group in August 2016 both parties have benefitted through the provision of a range of services including contracted wet lease services,” Alliance chief executive Lee Schofield said in the statement. The contract extension with Virgin Australia comes not long after Qantas announced on February 1 it had purchased a 19. 9 per cent stake in Alliance and foreshadowed plans to increase its investment. The ACCC has said it was looking into the deal.

— Virgin Australia has reported a return to profitability in the first half of 2018/19 led by ongoing improvement in its domestic business and despite the burden of higher fuel costs. The airline group said on February 13 net profit for the six months to December 31 2018 came in at $54. 8 million, compared with a loss of $10. 3 million in the prior corresponding period. Revenue rose 10 per cent to $3. 1 billion, Virgin Australia said in a regulatory filing to the Australian Securities Exchange (ASX). Underlying profit before tax, which removes one-off items and was regarded as the best indication of financial performance, rose 37. 1 per cent to $112. 3 million. The figure was above the 20 per cent improvement Virgin Australia forecast in October 2018 and the highest underlying profit before tax result in 10 years.

The airline group, which includes the Virgin Australia and Tigerair Australia operations, said fuel costs rose $88. 2 million in the half due to a weaker Australian dollar and higher oil prices.

Virgin Australia’s domestic operation, which is the biggest contributor to the company’s bottom line, reported underlying earnings before interest and tax (EBIT) of $176. 7 million, up 26. 8 per cent from the prior corresponding period.

— Virgin Australia chief executive John Borghetti said market conditions felt uncertain for the year ahead as the potential impact from global events meant predicting what the rest of calendar 2019 would hold was fraught with difficulty. While the Australian market was in robust health, external events from the price of oil to geopolitical tensions and the upcoming federal election meant Virgin Australia chose not to offer specific profit guidance for the rest of the 2018/19 financial year. Rather, Australia’s second largest airline group guided the market to expect revenue growth of at least seven per cent for the three months to March 31 2019, compared with the prior corresponding period. “It’s certainly uncertain market conditions that we are facing in this financial year and calendar year so I think the best guidance we can give now is for the quarter which is about the revenue,” Borghetti told reporters.

— The Australian Competition and Consumer Commission (ACCC) and Virgin Australia have told Australia’s International Air Services Commission (IASC) a proposed codeshare agreement between Cathay Pacific and Qantas would lead to a lessening of competition on Australia- Hong Kong routes. “While it is a decision for the IASC to make, our main competition concern is that the conduct may soften competition in the Australia-Hong Kong air passengers services market,” the ACCC submission said. Meanwhile, Virgin Australia said the IASC should knock back the application for Cathay Pacific and Qantas to codeshare on a number of each other’s flights between Brisbane, Melbourne and Sydney to Hong Kong “on the basis that the proposed use of the relevant capacity will not be of benefit to the public”.

Qantas had argued that codeshare services, which would only be sold as part of a through journey involving connections either beyond Hong Kong on Cathay Pacific or to other Australian domestic destinations from Brisbane, Melbourne and Sydney on Qantas, was a “pro-competitive expansion of each carrier’s ability to sell and market itineraries”.

— Air New Zealand said on February 28 net profit for the six months to December 31 2018 tumbled 35. 4 per cent to NZ$152 million, from NZ$232 million in the prior corresponding period. The result was in line with expectations, following a profit downgrade announced in January. Air New Zealand chief executive Christopher Luxon said he expected to give an update at the end of April about the airline’s review of its network, fleet and cost-base in response to the slowing domestic market. “While we continue to expect solid growth across our key markets, including domestic New Zealand, we cannot ignore signals that the rate of growth has slowed somewhat from prior years,” Luxon said.

‘Virgin Australia chose not to offer specific profit guidance for the rest of the financial year. ’ JOHN BORGHETTI

— Air New Zealand was forced to turn around a Boeing 787-9 enroute from Auckland to Shanghai after discovering mid-flight the aircraft was incident occurred early on Sunday morning, February 10 2019, about five hours after ZK-NZQ took off from Auckland as the NZ289 bound for Shanghai. At that point, passengers were informed the flight had to return to Auckland because the aircraft did not have the required approvals to operate into China. The passengers were put up either in hotels or lounges at the airport while waiting for the airline to organise a replacement aircraft. They eventually took off to Shanghai for a second time on Sunday evening. The flight landed without incident. An Air New Zealand spokesperson said an administrative issue with ZK-NZQ meant the aircraft did not have the necessary permit to land in China.

— Air Canada and Air New Zealand planned to seek regulatory approval to establish a joint-venture alliance.

The move to broaden the existing codeshare partnership comes as Air Canada announced on February 27 plans to operate a seasonal four times a week Auckland-Vancouver nonstop service between December 2019 and March 2020 with Boeing 787-8 equipment. Currently, Air Canada places its AC airline code on Air New Zealand’s Auckland-Vancouver flights.

Air Canada vice president for global sales and alliances John MacLeod said: “We look forward to deepening our relationship and optimising our far-reaching trans-Pacific network cooperation, offering our customers a choice of more flights, connections and travel opportunities. ” — Regional Express (Rex) has reported net profit for the six months to December 31 2018 of $9. 8 million, an improvement of 7. 7 per cent from $9. 1 million in the prior corresponding period. Rex executive chairman Lim Kim Hai says the airline has “bucked” the worldwide trend to post a rise in net profit amid higher oil prices and geopolitical tensions. Revenue was up 8. 5 per cent to $163. 8 million, Rex said in a regulatory filing to the Australian Securities Exchange (ASX) on February 27. Looking ahead, Rex said conditions were too uncertain to offer a reliable profit forecast, with business conditions potentially slowing down ahead of the likely federal election in May and should the United States and China fail to reach a trade agreement. “The board has grounds to believe that if trading conditions do not deteriorate further, the group could still achieve profit growth for the full financial year,” Rex said.

— The world’s airlines suffered through 11 fatal accidents in 2018, resulting in the deaths of 523 passengers and crew, according to figures from International Air Transport Association (IATA). The totals represent an increase from six fatal aircraft accidents and 19 fatalities in what was a record low year in 2017.

“2018 was not the extraordinary year that 2017 was,” IATA chief executive and director general Alexandre de Juniac said in a statement. “However, flying is safe, and the data tell us that it is getting safer. ” Overall, about 4. 3 billion travellers flew safely on 46. 1 million flights in calendar 2018, with the industry body noting that the 2018 figures for accidents was down from the five-year average between 2013-2017.

— Hong Kong Airlines will exit the Oceania market entirely from May 2019 when it ends nonstop flights to Auckland. The airline confirmed its withdrawal from the Hong Kong- Auckland route in a statement on its website in mid-February. It said the decision followed a review of its network and an adjustment of its business strategy. The last flight from Hong Kong to Auckland was scheduled for May 19, while its last service from Auckland would be on May 21. Hong Kong Airlines has been flying to Auckland since November 2016. In October 2018 it stopped flying to Cairns and the Gold Coast.

— Singapore Airlines (SIA) has reported a drop in third quarter net profit amid higher fuel prices and said ongoing geopolitical tensions across the globe have cast a cloud over the outlook for travel for the period ahead. The warning came as the airline group said in mid-February net profit for the three months to December 31 2018 – the third quarter of its fiscal 2019 financial year – fell 27 per cent to S$284 million, compared with S$389 million in the prior corresponding period. The airline group, comprising flying brands Singapore Airlines, regional wing Silkair and low-cost carrier Scoot as well as an engineering business, said the revenue growth has helped offset a steep 22 per cent increase in fuel costs in the quarter.

Looking ahead, SIA said: “Overall passenger bookings in the forward months are tracking capacity growth, however uncertainties surrounding US-China tariffs and their consequent effects on global trade flows, as well as Brexit, are clouding the overall demand outlook for both passenger and cargo. ”

AIRPORT NEWS

Gold Coast Airport said on March 4 it had appointed Lendlease to build the expanded passenger terminal that is part of the airport’s redevelopment project. The new three-level terminal is located at the southern end of the current facility and earmarked as the primary area for international flights.

‘Rex has bucked a worldwide trend to post a rise in net profit. ’ LIM KIM HAI

It will have twice the floor space of the existing terminal and include aerobridges for boarding and disembarkation.

— Australia’s newest airport will recognise one of this country’s greatest aviators, with the proposed facility being built at Badgerys Creek to be named Western Sydney International (Nancy- Bird Walton) Airport.

The federal government announced the name of the airport on March 4. Prime Minister Scott Morrison said Nancy-Bird Walton (left), who was the youngest Australian woman to gain a pilot’s licence and founded the Australian Women’s Pilots’ Association (AWPA) in 1950, was an inspiring and natural choice.

DEFENCE NEWS

The Royal Australian Air Force (RAAF) has commenced the drawdown of its classic Hornet fleet with the delivery of the first two F/A-18A/Bs to the Royal Canadian Air Force (RCAF). The two F/A-18A single-seat classic Hornets, RAAF tail numbers A21-53 and A21-55, arrived at Canadian Forces Base Cold Lake in Alberta on February 16, following their deployment to Exercise Red Flag 19-1 in Nevada. The sale to Canada, which was confirmed in December, covered a total of 25 aircraft – 18 RAAF Hornets as interim fighters to complement their fleet of similarly-

BOEING CANCELS PUBLIC CEREMONIES FOR 777-X ROLLOUT

Wednesday March 13 2019 was supposed to have been a banner day for Boeing.

The aerospace giant was due to officially unveil the first 777-X at its Everett facility in Washington State just outside Seattle at a public event in front of staff and suppliers, as well as invited guests and media flown in from around the world.

The rollout ceremony represented the latest step in the 777-X program that had, at January 31 2019, accumulated 326 orders since it was launched in 2013.

However, just days before the events were scheduled to kick off, Boeing made the decision to cancel the public ceremonies in response to the crash of an Ethiopian Airlines 737 MAX 8 on Sunday, March 10.

As Boeing explained on its @BoeingAirplanes Twitter page: “Following the tragic loss of Ethiopian Airlines Flight 302, we are respectfully postponing the external 777X global debut activities, including broadcasts on our social media channels. ” The company said it would look for an opportunity to “mark the new plane with the world in the near future”. Work on the 777-X program was ongoing.

777X IS A TWO-AIRCRAFT FAMILY

The 777-X program comprised the 777-8X and 777-9X. The pair is an upgrade from Boeing’s inproduction 777-200LR and and 777-300ER.

The 777-8X and 777-9X will be powered by General Electric GE9X engines. Flight tests for those engines began in March 2018.

Other new features included composite wings with folding wingtips to maintain its Code E rating at airports, as well as in-cabin enhancements such as larger overhead stowage and a wider cross-section.

The 777-9X is 77 metres in length, has a total wingspan of 72 metres and is capable of flying 7,600nm when carrying 400-425 passengers in a twoclass configuration, according to Boeing figures.

It has been pitched as the ideal replacement for the very large aircraft segment of the market.

The 777-9X and Boeing’s 747-8I represented the largest available passenger aircraft on the market today after Airbus’s decision to shut down production of the A380 due to low orders.

Flight tests for the 777-9X were expected to occur later in 2019, with first delivery scheduled for 2020.

Meanwhile, the 777-8X was still in development. The Boeing website lists the aircraft as having a range of 8,700nm and a passenger capacity of 350-375.

The aircraft was expected to enter service in 2022.

Boeing regarded the 777-8X as a potential replacement for the in-service 777-300ER.

The 777-X is a contender for Qantas’s Project Sunrise ambition for an aircraft to operate nonstop from Australia’s east coast to London and New York. It is up against Airbus’s A350 platform.

Air New Zealand is also considering the 777-X for its fleet renewal program as it sought an aircraft able to operate nonstop between Auckland and the east coast of North and South America. An order was expected by June 30 2019.

Airlines that have ordered the 777-X at January 31 2019, according to the Boeing website, included Cathay Pacific (21 777-9X), Emirates (35 777-8X and 115 777-9X), Lufthansa (20 777-9X) and Singapore Airlines (20 777-9X).

Meanwhile, British Airways in February signed for 18 777-9X and options for up to 24 more of the type.

ETHIOPIAN AIRLINES CRASH ROCKS 737 MAX PROGRAM

The Ethiopian Airlines accident led to the global grounding of the Boeing 737 MAX fleet as regulators one-by-one announced they were temporarily suspending operations of the aircraft.

China, Indonesia, Singapore India and the European Union were among the first to act, followed by the likes of Australia’s Civil Aviation Safety Authority (CASA) and Canada.

On Wednesday March 13, the United States Federal Aviation Administration (FAA) joined its global counterparts in grounding the aircraft.

The FAA said its decision was based on new information from the accident site and newly refined data from satellitebased tracking that suggested there could be some similarities between the ET302 crash and that of Lion Air flight JT610 in October 2018.

Further, it said the possibility of a shared cause for the two accidents needed to be better understood and addressed.

Boeing said it supported the FAA order while reiterating it had “full confidence in the safety of the 737 MAX”.

“On behalf of the entire Boeing team, we extend our deepest sympathies to the families and loved ones of those who have lost their lives in these two tragic accidents,” Boeing chief executive Dennis Muilenburg said in a statement.

“We are supporting this proactive step out of an abundance of caution. We are doing everything we can to understand the cause of the accidents in partnership with the investigators, deploy safety enhancements, and help ensure this does not happen again. ” Boeing said there were 371 737 MAX aircraft in service around the world. confi gured CF-18s, and a further seven jets to be used as spares and test articles. All aircraft were expected to be delivered by the end of 2021.

— Northrop Grumman Australia has named Air Vice Marshal (Ret’d) Chris Deeble as its new chief executive.

The company announced Deeble’s appointment in a statement on February 13. He replaces Ian Irving, who left Northrop Grumman Australia in October 2018. Since then, former chief executive of the DMO and member of Northrop Grumman’s International Advisory Board Warren King has been acting chief executive.

Previously, Deeble was at Airservices Australia where he was program executive for OneSky, the joint civil and military air traffi c management project.

— The Royal Australian Air Force (RAAF) is reportedly looking to integrate the Northrop Grumman AN/ AAQ-28 Litening AT targeting and EO/IR pod with its fl eet of 12 C-130J Hercules airlifters. The addition of an EO/IR pod such as the Litening AT would enhance the C-130J’s ability to provide ISR overwatch for forces on the ground, to ensure a designated landing or extraction zone is clear of threats, to geolocate targets of interest or precision airdrop locations, or to even provide fi res support to off-board shooters. There were few details about the timeframe of any possible EO/ IR pod integration work, nor what industry elements would support the integration activity. But it is likely Airbus as RAAF C-130J platform steward, Northrop Grumman as Litening AT OEM, and Lockheed Martin as C-130J OEM will all have roles to play.

INDUSTRY NEWS

The Australian Airports Association (AAA) has launched a Women in Airports Network (WIAN) as part of efforts to support the “participation and advancement of women working in both operational and leadership roles” at airports in Australia and New Zealand. The network was launched on International Women’s Day, Friday March 8.

— On the same day, the federal government announced it would establish a women in aviation initiative designed to encourage more women to pursue careers in aviation. The government said the initiative would receive $4 million in funding and work with relevant industry groups on a range of programs, such as targeting schoolaged students and their parents to better understand the career opportunities of the aviation sector.

— Australia’s biggest four airports have been rated as “good” by the airlines and passengers that use them, the Australian Competition and Consumer Commission’s (ACCC) annual Airport Monitoring Report for 2017/18 has found. Brisbane and Perth retained their good rating, while Melbourne and Sydney lifted their rating to good from satisfactory the previous year. “For the first time over the last decade, all four monitored airports were rated as ‘good’ for their overall quality of service,” the ACCC report said. The airports’ overall quality of service ratings comprised responses of both airlines and passengers, as well as objective measures.

Europe

Paris Air Show
D-Day Landings
Berlin Air lift
La Ferte Alais Air Show
Royal Dutch Air Show
3 – 21 June 2019
ICE Trains

USA

7 Days Oshkosh Incl. Airfares
& accommodation A$2995.
5 other Programs all visiting
EAA AirVenture Oshkosh.
The best of Seattle, Dayton,
Chicago, Oshkosh, New York
& Washington.

WW11 Cruise Tour

Tokyo, Hiroshima, Nagasaki,
Amami Oshima, Okinawa,
Iwo Jima, Marianas, Guam,
Jayapura, Wewak, Madang,
Rabaul, Ghizo, Honiara,
Noumea, Ile des Pins.
This cruise tour is unique
and will never be repeated

— Honeywell Aerospace’s 2019 Turbine- Powered Civil Helicopter Purchase Outlook has forecast a need for about 4,000 new civil-helicopters to be delivered between 2019 and 2034.

The figure was lower than the 4,200 deliveries forecast in the prior year’s survey of about 1,000 chief pilots and flight department managers. “Despite positive impacts of US tax reform on new helicopter purchase plans in North America, an inconsistent economic outlook for international markets has resulted in lower purchase plans worldwide from fleet managers when compared with a year ago,” Honeywell Aerospace president for the Americas Aftermarket Heath Patrick said in a statement.

OEM NEWS

Airbus has thrown its support behind the New Zealand Aerospace challenge, which asks university students and start-up companies to find solutions to environmental problems. The challenge, which was launched in Christchurch on Friday, March 8, was seeking innovative ways to detect, monitor or measure water or soil pollution using satellite and unmanned aircraft technology. The top 20 entrants will be involved in an incubator program and receive access to Airbus satellite data, mentoring and training from specialists and advice for conducting unmanned aircraft flights.

— Rolls-Royce has dropped out of the running to supply engines for Boeing’s proposed new mid-market aircraft (NMA). Rolls-Royce chief executive Warren East said on February 28 the engine-maker informed Boeing of its decision shortly before the end of 2018. “Many of you have heard me talk before about the NMA being potentially an attractive proposition from a strategic point of view and it was all a matter of overlapping our UltraFan development program with the NMA requirements and seeing if we could achieve a sufficient overlap there to make a sensible answer from a commercial and a risk point of view,” East said during the company’s calendar 2018 results presentation.

“We have concluded that there is not sufficient overlap to create an engine out of the UltraFan architecture within the Boeing timescales at a sufficient level of maturity to tick those boxes in terms of risk and commercial common sense. We simply couldn’t find enough hours in the day, even if you threw many more bodies at it and much more money at it, there simply is not enough hours in the day to do all that work in time to get to a sufficient level of maturity in time. ” — Meanwhile, Rolls-Royce said it now expected the total cash cost of the Trent 1000 engine issues that have affected a number of Boeing 787 operators to be 1. 5 billion pounds, an increase of 100 million pounds from the previous estimate. The company said it incurred a cash cost of 431 million pounds in calendar 2018, with the figure forecast to be about 450 million pounds in the current year and 350 million pounds in 2020 before “falling materially” in subsequent years. In terms of a longterm fix to the problem, Rolls-Royce has redesigned the IPC rotor blade for Trent 1000 Package C engines, which were certified in December 2018. Meanwhile, certification for a redesigned IPC rotor blade for Trent 1000 TEN and Package C engines were expected in the third and fourth quarters, respectively, of calendar 2019. And in further positive news, Rolls-Royce said regulators recently changed a hard life limit on a compressor drum on the Trent 1000 TEN engines to an inspection regime, which has also helped reduce the disruption to airlines.

— Airbus has secured its first A220 customer in the South Pacific with Air Vanuatu to operate the regional jet from 2020. The airline signed a firm order for four A220s and purchase rights for a further four aircraft at the 2019 Avalon Airshow on February 26. It is the first time the carrier has purchased Airbus aircraft. It was expected to receive two A220s in 2020, with the remaining two aircraft to be delivered in 2021 and 2022.

Air Vanuatu chairman Joel Lengsau said the aircraft would be used to boost frequencies on existing routes and expand to new domestic and international ports.

— Embraer Executive Jets said it had expanded the size of its fleet in Australia to nine aircraft with the delivery of a Phenom 300E to a New South Wales-based customer.

The aircraft, VH-UYX, is owned by Special Mining Services and will be operated by Flight Options Australia, Embraer said in a statement. It is the second Phenom 300E to be based in Australia. In 2018, Australian travel company Northern Escape Collection took delivery of VH-NSQ, which is operated by Avcair.

— Airbus chief executive Tom Enders said the decision to end production of the A380 in 2021 was painful for everyone involved in the program.

On February 14, Airbus confirmed the closure of the A380 production line amid a lack of orders and after Emirates choosing to cut back on the number of double-decker superjumbos it has on order and instead go for the A350 and A330neo.

“As a result of this decision we have no substantial A380 backlog and hence no basis to sustain production, despite all our sales efforts with other airlines in recent years,” Enders said in a statement. “This leads to the end of A380 deliveries in 2021. Today’s announcement is painful for us and the A380 communities worldwide. ” — Boeing is backing Aerion Corporation’s quest to build a supersonic jet by signing on as an investor on the project. The company said on February 5 it planned to provide engineering, manufacturing and flight test resources to help bring Aerion Corporation’s AS2 supersonic jet to market. “Boeing made a significant investment in Aerion to accelerate technology development and aircraft design, and unlock supersonic air travel for new markets,” Boeing and Aerion Corporation said in a joint statement.

The aircraft, unveiled in 2014, is designed to carry 12 passengers in a business jet style cabin at a maximum speed of Mach 1. 4. First flight was scheduled for 2023.

‘The top 20 entrants will be involved in an incubator program. ’ AIRBUS