Debrief

In other Virgin Australia news, Scurrah said at the opening of a new premium passenger lounge at Brisbane Airport’s international terminal on September 4 the airline would continue to invest in the customer experience as it worked to turnaround recent losses. “It is incredibly important that whilst we go through change, while we restructure the business and we set it up for future profitability, that we continue to evolve our product. This wonderful lounge that we are opening today is a symbol of our seriousness about continuing to invest.” Designed to seat about 100 people, “My Lounge Home of Virgin Australia” is a partnership between the airline and the No1 Lounges company.
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Also, Virgin Australia has become the first Australian carrier to introduce the Split Scimitar winglets into service. The first of five Boeing 737-800s to feature the updated winglets, VH-YIV, began flying in mid-August with the aircraft to be used on international flights to New Zealand, the Pacific Islands and Bali. “We’ve estimated the winglets will save us approximately 160,000 kilograms of fuel, which equates to 200,000 litres and a reduction in carbon dioxide emissions of approximately 515 tonnes per aircraft, per year,” Virgin Australia acting chief operations officer Stuart Aggs said in a statement on August 8.

Qantas news

Qantas said on August 22 net profit for 2018/19 fell 6.5 per cent to $891 million as higher fuel prices and a weaker Australian dollar hit the bottom line. The company said the full year result included a $617 million increase in the airline group’s total fuel bill, as well as a $150 million impact from a weaker Australian dollar. “It’s a particularly strong result when you consider some of the headwinds we managed in the year,” Qantas chief executive Alan Joyce said in prepared remarks. “We’re pleased with how the business is performing.”
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While Qantas did not provide profit forecasts for 2019/20, it said capacity across the airline group was expected to increase by one per cent in the first half of 2019/20. The Jetstar and Qantas domestic network capacity would be “flat to slightly down”, while international capacity was tipped to rise 1.5 per cent.
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Still on Qantas news, Joyce said the airline would cut capacity on its flights between Australia and Hong Kong by seven per cent by down-gauging existing services in response to falling demand and political unrest in the Special Administrative Region. “The Hong Kong market has taken a hit. We have seen volumes down in the immediate future by up to 10 per cent,” Joyce said at Qantas’s full year results. He said he expected demand to return once the crisis was over.
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Qantas is planning three “research flights” from New York and London to Sydney in the final three months of calendar 2019 as part of its Project Sunrise evaluation. The flights will use new Boeing 787-9s positioned to New York and London after being delivered to the airline. About 40 people – mainly Qantas staff – will be on board to evaluate different approaches to crew and passenger wellbeing. The airline is expected to make a decision on whether to place an aircraft order for Project Sunrise by the end of calendar 2019.
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Qantas’s Boeing 747-400 fleet will be reduced to six aircraft in mid-October, when VH-OJU Lord Howe Island is due to be withdrawn from service. The airline said on August 26 VH-OJU’s final commercial flight on October 13 2019, would be a special one-off service from Sydney to Los Angeles with flight number QF99. Qantas has said previously all 747s would be withdrawn by the time the airline group celebrated its centenary at the end of calendar 2020.
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Qantas said on August 10 it would introduce the Airbus A321 for its freight business from the second half of 2020 as part of an expanded agreement with Australia Post. The A321s would be passenger-to-freighter (P2F) conversions. On August 19, aircraft support company Vallair said Qantas had signed a letter of intent (LOI) to lease the first A321P2F, adding the aircraft would be MSN835 that was formerly flown by BMI and Onur Air.

Airline news

Air Niugini has established a maintenance, repair and overhaul (MRO) facility for third-party work at Jacksons International Airport at Port Moresby offering heavy maintenance checks on aircraft such as the De Havilland Dash 8s and Fokkers, along with other types. Chief executive Alan Milne said on September 6 Papua New Guinea’s (PNG) location, coupled with existing engineering expertise and infrastructure, made the country a good option for airlines in Australia, Asia and the Pacific Islands to service their fleets. Further, the income from the MRO work would support the financial security of the government-owned airline while generating new jobs for local workers.
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New Zealand regional carrier Air Chathams has restored nonstop flights between Auckland and Norfolk Island. The inaugural once weekly service with Convair 580 turboprops took off on September 6, with Air Chathams owner and chief executive Craig Emeny the Captain of the flight alongside his son Duane Emeny – the airline’s general manager – as first officer. Auckland lost a nonstop flight to Norfolk Island in early 2018 when Norfolk Island Airlines ended a short-lived operation on the route.
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Japan’s Ministry of Land, Infrastructure, Transport and Tourism (MLIT) has allocated Australian and Japanese airlines four new slot pairs for nonstop flights between Australia and Tokyo Haneda Airport. The allocation, announced on September 2, comprised two new slot pairs for Japanese carriers – one for All Nippon Airways (ANA) and one for Japan Airlines – and two new slot pairs for Australian carriers. The slots would be available from March 29 2020 and were for daytime services – notionally between 0600 and 2255 – as air traffic managers opened up more airspace in the Tokyo area to support the additional flights.
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On September 1, All Nippon Airways (ANA) became the first airline to fly nonstop between Perth and Tokyo since Qantas exited the route in 2011. ANA is operating 184-seat, three-class Boeing 787-8s on the route. It is the Japanese carrier’s second Australian destination alongside daily Sydney-Tokyo Haneda flights that began in December 2015.
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On August 27, regional airlines Air Link and FlyPelican launched regular public transport (RPT) flights to four western New South Wales towns that will be supported by the state government. FlyPelican planned to commence nonstop flights from Sydney to Cobar, as well as between Cobar and Dubbo, from September 24. Meanwhile, Air Link said it would offer two routes – Dubbo-Bourke and Dubbo-Walgett-Lightning Ridge – from November 4. Cobar lost air services when Brindabella Airlines collapsed in 2013, while towns such as Bourke and Walgett have been without scheduled passenger flights for more than a decade.
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Regional Express (Rex) said on August 23 it was bracing for tough times ahead amid a deteriorating global economy after reporting net profit of $17.5 million for 2018/19, up 3.6 per cent from $16.9 million in the prior corresponding period. Rex executive chairman Lim Kim Hai said it was a harsh operating environment given higher fuel prices and as the ongoing trade tensions between China and the United States had hit economic growth in Australia and around the world. “Rex will not be spared the full brunt of the global headwinds in the new financial year, and our profits could be eroded by 15-20 per cent as things stand,” Lim said in a statement.
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Air New Zealand on August 22 reported net profit fell 31 per cent to NZ$270 million (A$268 million) in 2018/19 amid what the company described as a lower growth environment. The airline said slower passenger growth and a temporary increase in operating costs as the airline sought to improve network resiliency for its customers in the wake of global Rolls-Royce engine issues for the Boeing 787 took their toll on the bottom line. “While we are disappointed we did not meet the expectations we first set for ourselves at the start of the financial year, the fact is we are operating in a different demand environment than we were 12 months ago,” Air New Zealand chairman Tony Carter said.
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In other Air New Zealand news, the airline said chief financial officer Jeff McDowall would be acting chief executive once Christopher Luxon stepped down on September 25. Further, Air New Zealand director Dame Therese Walsh, who is leading the search for Luxon’s successor, said in a statement on August 21 that given the calibre of the candidates being considered it was possible the new chief executive would not start until the first quarter of 2020. Global recruitment specialist Spencer Stuart was helping the airline with the search for a new chief executive.
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Korean Air said on August 20 its nonstop Seoul Incheon-Brisbane service would move to daily from October 27, up from the current four times weekly, with two-class Airbus A330-300s. The change would bring Brisbane in line with Korean Air’s other Australian route from Seoul Incheon to Sydney, which runs daily with a mixture of A330-300, A380 and Boeing 747-8I equipment, depending on the time of the year. Brisbane was one of several route changes Korean Air announced in response to what the airline described as decreasing demand on Japanese routes “due to Korea-Japan tensions”.
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Cathay Pacific has a new chief executive and will soon have a new chairman after the departure of Rupert Hogg and retirement of John Slosar as the airline continues to feel the impact of ongoing turmoil in Hong Kong. Hogg announced his resignation on August 16 and was replaced by Augustus Tang. Then, on September 4, Slosar announced he would be retiring in November , with Patrick Healy named as his successor.
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Malindo Air chief executive Chandran Rama Muthy said the Malaysian-based carrier was looking for further expansion in Australia after starting flights to Sydney, its fifth destination in the country. The Malaysian-based carrier’s inaugural Kuala Lumpur-Denpasar (Bali)-Sydney service OD171 touched down on August 15. “We are looking at the possibilities to add maybe two flights a week or three flights a week to get more people to Bali and also to Kuala Lumpur. We want to go into the secondary destinations, Cairns for example,” Muthy said.

Industry news

Aviation sales and support company Hawker Pacific has won a contract to conduct heavy maintenance checks on Alliance Aviation Services’ fleet of Fokker aircraft at its Cairns workshop. “Having a local solution for heavy maintenance support will provide added reliability and availability for our fleet of aircraft, which ensures better support for our customers, and promotes job growth in Queensland,” Alliance chief executive Lee Schofield said in a statement on August 30. Alliance has existing agreements with Lufthansa subsidiary Austrian Airlines Technik Bratislava, KLM UK and Rolls-Royce for heavy maintenance work.
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Cobham Aviation Services officially unveiled its first De Havilland Q400 turboprop at Perth Airport on August 19. Chief executive Ryan Both said the aircraft – a second was due to be delivered in September – represented a growth platform for the future. “We are seeing all the signs that the industry is beginning to accelerate again which is fantastic.”

OEM news

Boeing’s 777-X program received a setback on September 5 when a cargo door separated from the fuselage on a 777-9X static test aircraft during a high-pressure test. The incident at Boeing’s Everett facility occurred in the presence of representatives from the United States Federal Aviation Administration (FAA), US media reported. Boeing confirmed in a statement the 777-9X static test aircraft “encountered an issue that required suspension of the test”, without offering specifics.
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In other 777-X news, Boeing said it had pushed back the timeline for the entry-into-service of its 777-8X ultra long-range widebody to “reduce risk” in the program. The company said the decision to delay first delivery of the 777-8X from a previously expected 2022 followed a review of the “development program schedule and the needs of our current 777X customers. The adjustment reduces risk in our development program, ensuring a more seamless transition to the 777-8,” Boeing said in a statement on August 15.
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Embraer said on August 13 it had received the type certificate for its Praetor 500 midsize business jet from Brazil’s civil aviation authority, Agência Nacional de Aviação Civil (ANAC). Powered by Honeywell HTF 7500E turbofan engines, the Praetor 500 was built to carry between seven and nine passengers up to 3,340nm, according to figures from the Embraer Executive Jets website, and had a high-speed cruise of 466KTAS and a takeoff distance of 4,222ft (1,287m).
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Airbus said on August 13 it had delivered two H145 helicopters for the New Zealand market configured for emergency medical services. The official handover event between Airbus Australia Pacific and New Zealand Helicopter Emergency Medical Services took place in Christchurch. The H145 helicopter – previously known as the EC145 – can seat nine passengers, had a maximum range of 352nm and features a Fenestron shrouded tail rotor and twin Safran Helicopter Arrius 2E engines.

Airport news

Sydney Airport has reported a double-digit improvement in net profit for the first half of calendar 2019 in what chief executive Geoff Culbert described as challenging conditions. The company said net profit after tax attributable to security holders for the six months to June 30 2019 rose 14.8 per cent to $199.8 million, from $174 million in the prior corresponding period. Revenue improved 3.4 per cent to $797.1 million.
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In other Sydney Airport news, the airport has welcomed its one billionth passenger in its centenary year. The lucky traveller was 10-year-old Katinka from Sydney’s Blue Mountains, who was traveling home from Amsterdam with her mother Sara and brother Andy. While it has taken 100 years to reach the one billion milestone, Sydney Airport estimated it would be only 20 years before it reached two billion passengers.
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Canberra Airport’s draft master plan for the next two decades has forecast the number of passengers passing through its terminal to approach nine million a year by 2039/40, more than double the 3.3 million total for 2018/19. It said the prospects for future growth were strong, as the airport focused on attracting more international airlines, including low-cost carriers. “We continue to collaborate with the ACT and NSW Governments, who support our plans for growing our aviation business, and we are optimistic about future growth,” Canberra Airport head of aviation Michael Thomson said in a statement on August 22.

Defence News

Three candidates publicly declared their intentions to bid for the Australian government’s Project LAND 4503 armed reconnaissance helicopter (ARH) replacement request for information (RFI) by the August 30 2019 deadline for submissions. Project LAND 4503 sought a total of 29 airframes to replace the existing 22 Tiger ARH fleet. It specified that 24 aircraft would be operational at a single location and five airframes will be assigned to training.
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Airbus Helicopters said on August 30 it had proposed a mid-life upgrade of the Australian Army’s current Tiger ARH fleet, with the work to be undertaken in Australia at Airbus’s Pinkenba facility in Brisbane. “We see ourselves as the perfect bridging capability to whatever is the next capability that Defence would consider. And publicly, the indicators are that is likely to be the future vertical lift (FVL) capability. So for us, that would mean extending Tiger by a further 15 years beyond 2025,” Airbus Australia Pacific Managing Director and Head of Country Andrew Mathewson told sister publication ADBR.
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Boeing said in a statement on August 30 it has put forward the AH-64E Guardian Apache attack helicopter. The aircraft was the latest version of the AH-64D Longbow Apache and featured an enhanced combat system and the ability to be integrated with unmanned systems. “The benefits of Apache for Australia are more significant than continued platform upgrades. Boeing plans to deliver support services in-country and engage local suppliers to maximise Australian industry involvement for the ARH replacement program,” Boeing Defence Australia vice president and managing director Darren Edwards said.
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And the third candidate for the contract, Bell, has extolled the virtues of its AH-1Z “Viper” helicopter as a potential replacement for the Australian Army’s Tiger ARH. Although Bell did not directly confirm it had responded to the RFI, the company issued a statement listing the capability and performance attributes of the AH-1Z, which neatly aligned with those of the RFI. “The combat proven Bell AH-1Z Viper is the only marinised attack helicopter in the world that is specifically designed and built for expeditionary and maritime operations,” the Bell statement said.
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Lockheed Martin Australia Joe North replaced Vince Di Pietro as the company’s chief executive on September 1. North was most recently Lockheed Martin vice president for rotary and mission systems operations for Australia and New Zealand and had a background in rotary, mission systems and maritime program management.
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Still on Lockheed Martin, the company said on August 29 its Brisbane-based Sikorsky Australia operations would be closed and all of the operations re-located to its sustainment facility adjacent to HMAS Albatross at Nowra in NSW. The consolidation would be completed by January 31 2020. Lockheed Martin Australia said it would support its Brisbane workforce of 103 people through the consolidation process, including offering the option of redeployment to other Sikorsky and LMA facilities in Australia.