Friday, August 30, 2013

Dozens hurt as Thai airliner hits turbulence


More than 50 passengers and crew were injured on Friday when a Thai Airways A380 superjumbo hit severe turbulence during a flight from Bangkok to Hong Kong, the carrier said.

One stewardess suffered a broken collarbone, while the other injuries were minor such as bruises, a Thai Airways official who did not want to be named told AFP.

About 500 passengers were on board the plane at the time of the incident, which happened as it was preparing to land at Hong Kong's Chek Lap Kok airport shortly after midday.

The injured -- 37 passengers and 15 crew members -- were sent to hospital for treatment, with 22 already discharged, the official said.

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Changi's T5 to cater to 50m passengers per year


The new terminal 5 at Singapore's Changi Airport is set to be one of the largest terminals in the world, with have an initial passenger handling capacity of 50 million per year.

When it begins operations in mid-2020s, it will boost the airport's total handling capacity to 135 million passengers per year.

Changi Airport will also begin operating on a three-runway system from around 2020, instead of the current two.

Minister of State for Transport Josephine Teo, who is chairing the Changi 2036 steering committee, gave these details on the expansion plans for the airport on Friday.

Terminal 5 will be built on a 1,080 hectare reclaimed site at Changi East. It will be linked to the other terminals at Changi Airport to make it easier for transfers and for airfield operational efficiency.

The terminal will also be connected to the MRT network and sited near to hotels and offices.

To the north of the terminal, land has also been set aside for facilities for airfreight and air express operators as well as maintenance, repair and overhaul activities.

The Civil Aviation Authority of Singapore (CAAS) will be seeking views from stakeholders over the next two months to refine the layout of the terminal. A concept plan is expected to be finalised in the first half of 2014, before works begin in the second half of 2014.

To make way for an integrated airfield, the existing Changi Coast Road will be diverted and replaced with a new road and park connector further east, along the eastern coastline.

The existing Runway 3, currently used by the military, will be extended from 2.75km to 4km to handle larger passenger aircraft.

Almost 40km of new taxiways will also be built to connect the runway with the current airport and to allow for efficient aircraft movement.

New facilities such as navigation aids, airfield lighting systems and a fire station will need to be built.

Planning and preparatory works for the project have already started.

Mrs Teo said the developments at Changi East require careful coordination and will stretch over several terms of government.

She said: "For passengers, Changi must mean superior connectivity, convenience and comfort. So these plans are significant because they strengthen our air hub.

"But there is also special meaning for Singaporeans. Changi connects us to the world and the plans open the path to new business and job opportunities. That is really the bigger story to be told."

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Air India resumes direct flights to Australia


An Air India Dreamliner touched down in Australia on Friday, marking the resumption of direct flights by the carrier after a 16-year gap as it seeks to tap a potentially lucrative market.

Air India's country manager Ravi Bodade said he is confident of regularly filling the daily services that also go via Melbourne on the 256-seat Boeing 787-880 Dreamliner planes.

''It is a state-of-the-art aircraft, and we have a large Indian diaspora here -- there is a huge student community and we are confident of filling up the aircraft,'' he said.

According to Sydney Airport, India has been Australia's largest unserved market, with 140,000 passengers last year travelling between New Delhi and Sydney via Asian hubs.

Tourism Australia managing director Andrew McEvoy said direct flights were essential if Australia was to secure its share of the 50 million Indians expected to be travelling outside their own country by the end of this decade.

"India is one of our fastest-growing inbound markets, particularly among leisure travellers, who have Australia high up on their wish list of international holiday destinations," he said.

"With Indian arrivals up nearly eight per cent so far this year, the demand is clearly there and I have little doubt that Air India's re-entry into the Australian market will be widely and warmly applauded by both Indian travellers and by tourism operators here in Australia."

Diplomatic ties between India and Australia have been strained in recent years after a spate of violent crimes against Indian students prompted street protests, but the country remains a key destination for both foreign students and tourists.

The Air India arrival was the first in Australia by a Boeing 787 Dreamliner, which has suffered a series of problems since coming into service, including a global grounding of its fleet this year after overheating problems.

Australian flag carrier Qantas has 14 on order but their delivery has been delayed until later this year.

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Virgin Australia plunges into the red


Virgin Australia on Friday posted an annual net loss of A$98.1 million (US$87.5 million), a sharp reverse as high fuel costs and intense competition led by Qantas hurt the bottom line.

The country's second biggest carrier after Qantas said the result in the 12 months to June 30 compared with a A$22.8 million profit in the previous corresponding period.

It is in contrast to its major rival, which announced on Thursday it had bounced back into the black with a A$5 million profit over the same period following a A$245 million loss in the previous year.

Despite the disappointing numbers, Virgin won support from its three main shareholders, with Singapore Airlines, Air New Zealand and Etihad giving commitments on Friday for unsecured loan facilities totalling A$90 million.

In addition to competition and soaring fuel prices, Virgin said costs including a new ticketing system and Australia's carbon tax had also hit hard.

There were also significant transaction costs related to its acquisition of Skywest Airlines and the purchase of a 60 per cent stake in Tigerair Australia.

Chief executive John Borghetti said while the results did not meet the airline's initial expectations, it had been a "pivotal year".

"We completed our major restructuring and transformation programme and reshaped the competitive landscape of the Australian aviation market, despite a very difficult economic environment and intense competition," he said.

Like Qantas, no future guidance was provided given the uncertain economic times.

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Thursday, August 29, 2013

Stranded BA passengers leave Siberia for Beijing


The passengers and crew of a British Airways flight from London to Beijing who were stranded in Russia for over a day after an emergency landing have travelled on to China in a new plane, airport officials said on Thursday.

"They will be brought to their final destination, Beijing, on a reserve British Airways plane that was brought in from London Heathrow (airport)," the Irkutsk airport said in a statement.

On Wednesday, the 270 passengers and 16 crew were taken to hotels in the Siberian city of Irkutsk after the Boeing 747 encountered technical problems linked to its navigational systems en route.

British Airways sent another Boeing 747 from London to take the stranded passengers from Irkutsk. That plane arrived on Thursday afternoon and departed a few hours later with the passengers for Beijing, the airport said.

It brought two engineers and a company representative to Irkutsk to decide what to do with the original plane, which is still on the tarmac at Irkutsk airport.

The faulty airliner "will remain in Irkutsk until a decision is made regarding its technical state", the airport said, adding that the "plane's navigational system had failed".

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Tourists on SIA plane fight to keep 30 sets of inflight cutlery


A group of tourists from a small town in China’s Zhejiang province surprised Singapore Airlines staff when they refused to hand over 30 sets of stainless steel tableware, reported a Chinese daily on Tuesday.

After a meal provided on board, the Chinese passengers, who were on a tour of Singapore, Malaysia and Thailand, decided to keep the stainless steel knives and forks, said Qianjiang Evening News.

Even though flight attendants told the tourists the stainless steel tableware were to be re-used, the tourists stubbornly refused to hand them over, saying that relatives who had flown with the airline in the past told them that they could keep the tableware.

It was only after repeated warnings from a tour guide on the plane that they agreed to hand them over.

The tour guide reportedly told the tourists that they were hurting China’s image abroad and to “stop hurting the reputation of Chinese people.”

In the same report, the newspaper said Chinese tourists who were waiting to board at Singapore's Changi airport also fought over their airplane seats.

As the plane did not give out seat numbers, the passengers arrived two hours early to queue for their seats. It was reported that those who queued up had specific preferences for seats, such as a window seat or a seat close to the front of the aircraft.

Airport staff told the passengers that since it was still early, they were told to take a seat at the boarding lounge but the tourists refused, saying those who came early would lose their "advantage".
However, a quick-thinking lady said if she could not physically queue for a seat, her luggage bag could.

Following her lead, other passengers, too, began using their bags to queue at the boarding gate, and a line formed again.

When it was time for boarding, and staff announced that the elderly, disabled, pregnant women and parents with infants were entitled to priority boarding, impatient tourists rushed towards their luggage bags,causing a chaos.

Other passengers who witnessed the incident could not help but laugh.

These incidents follows other reports of bad behaviour from Chinese travellers.

A Chinese boy carved his name on a 3,000 year old relic during a trip to Egypt recently. Earlier this year, a mainland Chinese mother asked her son to relieve himself in a bottle in the middle of a crowded Hong Kong restaurant.

China’s deputy premier Wang Yang publicly admonished Chinese tourists in May and told them to improve their behaviour overseas, listing examples of “uncivilised behaviour” such as speaking loudly in public, carving characters on ancient relics and disobeying pedestrian traffic signs.

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Qantas back into black with modest annual net profit


Australian flag carrier Qantas bounced back into the black on Thursday, posting an annual net profit of Aus$5 million (US4.5 million), up from an historic Aus$245 million loss the previous year.

Its underlying profit before tax in the 12 months to June 30 - the airline's preferred measure of financial performance - was Aus$192 million, up from $95 million.

"The market is very tough. But we are focused on the elements we can control," said chief executive Alan Joyce as the carrier recovered from its first annual loss since privatisation in 1995.

"We have Australia's leading airlines and loyalty business - and we have a clear strategy to build an even stronger business for the future."

The group's international division remained a weight on the company, posting a loss of Aus$246 million in the year to June. But that compares with a loss of Aus$484 million in the previous year.

Earnings from Qantas's domestic business totalled Aus$365 million, down from Aus$463 million.

"Our financial position has been strengthened by the actions we have taken over past 12 months: reducing debt, extending our maturity profile and taking a prudent approach to capital expenditure," said Joyce.

"We have also continued our policy of selling non-core assets where appropriate.

"Our focus remains on building long-term shareholder value. We will continue to be disciplined in managing capital expenditure and costs, while improving the customer experience and engaging our people to provide the best possible service."

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Air New Zealand annual profit soars to five-year high


Air New Zealand posted a 156 percent jump in annual net profit on Thursday, the flag carrier's best result in five years.

The airline said net profit for the 12 months to June 30 was NZ$182 million ($142 million), up from NZ$71 million in the previous year.

Chairman John Palmer said the result placed Air New Zealand among the best-performing airlines in the world and the outlook for the current financial year was "encouraging".

"We are focused on further improving on this result in the 2014 financial year," he said in a statement.

"Based on the airline's forecast of market demand and fuel prices at current levels, early results and forward bookings are encouraging."

The airline's revenues were up three percent at NZ$4.6 billion, while operating cash flow was a record NZ$750 million.

Palmer also announced he will step down in September, after almost 12 years at the helm.

"Air New Zealand would not be the airline it is today without John Palmer's leadership of the board for more than a decade," chief executive Christopher Luxon said.

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Wednesday, August 28, 2013

Myanmar airline eyes foreign routes after ANA tie-up


Myanmar's Asian Wings airline said on Wednesday it aims to launch international flights by October 2014, following the announcement of the sale of a 49 per cent stake to Japanese carrier ANA.

"We will start with nearby countries," executive director Lwin Oo told reporters, adding the airline also plans to buy 10 more Airbus A320 jets by 2018 as part of its ambitious expansion plans.

On Tuesday, All Nippon Airways (ANA) said it would acquire a 49 per cent stake in Asian Wings, becoming the first foreign firm to take a stake in aviation in the rapidly-opening Southeast Asian market.

Asian Wings, a domestic carrier, said the deal would give it access to global markets and standards.

"ANA will provide us the assistance to gain international recognised standards of safety and services," Lwin Oo said, adding its workforce will gain skills by working with different cultures in an international market.

Foreign firms have piled into Myanmar since the installation of a nominally civilian government in 2011, eager to make the most of opportunities in a fast-changing country.

Myanmar's government, meanwhile, has called for outside investment.

Visitor numbers have surged, with both tourists and business people flocking to the nation.

Asian Wings CEO Kyi Win said the country's aviation sector has great potential.

"Our aviation sector is still very low in Southeast Asia. We expect the country to boom in the near future and if so, the aviation sector will also develop," Kyi Win said.

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BA London-Beijing flight makes emergency landing in Siberia


A British Airways Boeing 747 flying from London to Beijing on Wednesday made a successful emergency landing at Irkutsk airport in Siberia due to technical problems, Russian officials said.

The 270 passengers and 16 crew have been taken to hotels in central Irkutsk, an airport official told the Interfax news agency. As they do not have Russian visas, they did not go through passport control and will not be able to leave the hotel.

"The passengers' passports have been taken and they have been given copies," the official said, adding that it was not clear how much longer they would be stranded in the city.

The flight information on British Airways' website confirmed the plane had made a stopover in Irkutsk and said the flight would be taking off again for Beijing at 3:00 pm (0400 GMT) on Thursday.

Interfax said that according to initial information, the plane encountered problems with its navigational systems. British Airways engineers were expected to arrive later to inspect the plane.

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Scoot flagged over lack of refunds for duplicate bookings


Budget airline Scoot has been flagged by the Consumers Association of Singapore (CASE) as the sole carrier, out of four examined, which does not provide refunds for duplicate or double online bookings - a finding that was refuted by Scoot.

According to CASE, three other airlines - Jetstar Asia, AirAsia and Tiger Airways Singapore - offer a full refund as long as certain conditions are met, even though they have different policies on this.

From 2010 to last month, CASE handled about 23 cases of duplicate or double booking caused by human or computer system error. They comprised about 10 per cent of all complaints against budget airlines.

Jetstar had the most cases at nine, while Scoot had the least at three, according to CASE Executive Director Seah Seng Choon.

"Consumers should have the opportunity to revise their decision, especially if it was an honest mistake," he added.

CASE said it approached Scoot in January this year and requested the carrier to revise its no-refund policy for double bookings.

According to CASE, Scoot indicated it would review its system.

In response to CASE's statement, Scoot pointed out that its policy is the same as Tiger's.

"As long as the names, flights and travel dates are identical, one of the bookings will be refunded," said the Scoot spokesperson.

Scoot said it has several measures to prevent consumers from double booking by mistake, including a 12-hour grace period during which guests can review and amend their itinerary receipt without penalty.

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Tuesday, August 27, 2013

SIA's a great way to fly: Here's why


Singapore Airlines (SIA) has revealed a strategy in its advertising campaign by shining a spotlight on how it goes the distance to bring its customers what they want.

An ad based on the slogan "The Lengths We Go To" was filmed in various locations worldwide.

It boasts of how the airline gets its jasmine tea from China, arthouse films from Venice and soft leather seats from Scotland.

The ad is expected to be released in the coming week.

A five-minute "Making Of" teaser for the ad was posted on the airline's YouTube channel on Saturday. It shows behind-the-scenes footage and contains running commentaries from stakeholders involved in its production.

Mr Robin Nayak, the head of strategy at TBWA Singapore, the ad agency behind the campaign, said in the video: "We've recognised that, as times change, the brand needs to evolve with those changes."

At first glance, the focus of the new campaign appears to have shifted from the Singapore Girl.

Industry experts My Paper spoke to weighed in on the subtle differences in strategy.

Mr Hari Ramanathan, regional strategy director of Young & Rubicam Group Asia, said: "Earlier ads focused on the overall feel and service, but now it dives into the specifics - the nitty-gritty on why SIA is better."

The Asia managing director of aviation publication Flightglobal, Mr Greg Waldron, said that the Singapore Girl still has a strong presence in the ad.

He said: "It seems to me that (the Singapore Girl) is alive and well. (The ad) continues the trend where the SIA Girl is the main differentiator between (SIA) and other carriers."

The ad campaign comes after SIA Group's operating profit for the 12 months that ended on March 31 was down by about 20 per cent.

Last month, some shareholders raised concern over the airline's falling operating profits, The Straits Times reported.

Mr Mohshin Aziz, an analyst at Kuala Lumpur-based Maybank Investment Bank, said: "(The ad campaign) is a good but futile effort.

"The market now is more cost-conscious. SIA has to do more to sell itself as an airline of value."

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Changi air passenger traffic up 4% in July


Some 4.54 million passengers went through Singapore Changi Airport in July 2013, a four per cent increase compared to a year ago.

Air traffic movements in July also grew by 6.9 per cent, with 29,000 landings and take-offs recorded at Changi.

Changi Airport Group said airfreight movements increased by 1.1 per cent on-year, with 160,000 tonnes of cargo passing through Changi Airport in July.

From January to July 2013, 30.8 million passenger movements were recorded, a 4.9 per cent increase compared to the same period in 2012.

Aircraft movements also increased by 4.9 per cent to 196,000.

Airfreight shipments grew 1.3 per cent to 1.1 million tonnes for the same period.

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Japan's ANA plans to buy stake in Myanmar airline


Japan's All Nippon Airways (ANA) said Tuesday it would acquire a 49 percent stake in a Myanmar airline, the latest foray into the potentially-lucrative Southeast Asian market that is rapidly opening up.

"ANA Group will invest $25 million (2.5 billion yen) for AWA (Asian Wings Airways) as part of its stated strategy of expanding into new international markets," ANA Holdings -- the parent of one of Japan's major airlines -- said in a statement.

"As part of the investment, ANA will also work with AWA to improve its operational and on-time performance and support its expansion into markets outside Myanmar," the company said.

"The acquisition of the stake in AWA represents the first investment in a Myanmar-based commercial carrier by a foreign airline," it said.

"ANA intends to capture an increasing share of the fast-growing Asian airline market and this investment in AWA will support that strategic goal," it added.

Shares in ANA Holdings fell 0.47 percent to 208 yen on the Tokyo Stock Exchange Tuesday after reports of the deal. The formal announcement came after the Tokyo bourse closed, with the benchmark Nikkei index having shed 0.69 percent.

Asian Wings, based in the commercial hub of Yangon, operates domestic flights connecting 13 cities. It will begin an international service this October.

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China's Xiamen Airlines to buy six Boeing 787s


China's Xiamen Airlines has finalised an order for six Boeing 787 Dreamliners to expand its long-haul international service, the companies announced on Monday.

Xiamen initially announced its intention to buy the 787-8s, Boeing's high-tech, fuel-efficient jetliners, in May 2011.

The order is worth $1.3 billion at list prices.

Xiamen is China's only airline with an all-Boeing fleet.

Based in the city of Xiamen on the southeast China coast in Fujian Province, the airline currently serves southeast and northeast Asia.

But with the introduction of the 787 Dreamliners beginning in 2014, Xiamen Airlines said it planned to launch new long-haul routes from Fujian to Europe, North America and Australia.

"Adding 787s to our all-Boeing fleet is a strategic decision to facilitate our international expansion plans," Che Shanglun, president and chief executive of Xiamen Airlines, said in a statement.

"The range and efficiency of the 787 makes it an ideal fit in our new, non-stop international routes."

Founded in 1984, Xiamen Airlines has booked profit for 27 consecutive years. It currently operates a fleet of 97 Boeing airplanes.

It is a member of SkyTeam, the global airline alliance that includes Air France, KLM, Alitalia and Delta.

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Monday, August 26, 2013

Scoot offers a quiet option on its flights


For an additional $18, Scoot's passengers can reserve a seat in the ScootinSilence zone, which is free of noise and of children under the age of 12.

The new service from low-cost airline Scoot, a branch of Singapore Airlines, is sure to appeal to travelers hoping to catch a little shut-eye on their flight. Located just behind the business class cabin, rows 21 to 25 on the airline's flights are now dedicated to peace and quiet.

To ensure the maximum level of quiet, the airline's ScootinSilence zone is off limits for children under the age of 12.

To reserve a seat in the silent zone, customers pay an additional $18 on top of the price of an Economy Class ticket (around $77), making ScootinSilent tickets $4 cheaper than a seat in the airline's version of business class, ScootBiz ($99).

Scoot, which services Seoul, Tokyo and Sydney among other cities in the Asia-Pacific region, isn't the only airline to address the problem of in-flight noise, which many travelers associate with the presence of children in the cabin. In 2012, Malaysia Airlines even went as far as banning children from the upper-level economy class on flights aboard the Airbus A380.

A number of hotels are taking similar measures. The Jade Mountain hotel in Saint Lucia, for example, even went as far as banning all types of noise-making electronic devices (including phones) to ensure peace and quiet for its guests, who can still access the Internet at the reception desk.

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Saturday, August 24, 2013

Changi races against time and rivals


Changi Airport's glass-and-steel Project Jewel will glint in its crown as a centre of retail and recreational indulgence by 2018, but analysts are keenly watching the airport's less glitzy facilities - its terminals and runways.

The mammoth expansion over the next 10 years will be crucial as Changi goes up against its neighbours' own ambitious aviation expansion plans.

While the expansions and new passenger terminals will double Changi Airport's current capacity of 66 million passengers annually in about a decade - it is the third runway, slated for 2020, that some in the industry are focusing on.

"The most pressing issue for Singapore and Changi is runway congestion. It's not necessarily terminal congestion or transit experiences," said Brendan Sobie of Capa - Centre for Aviation.

"They need to move forward with the third runway as soon as possible to catch up and get ahead of the curve again for the next couple of decades."

Since 2009, commercial aircraft movements at Changi Airport have grown at a rapid clip, surging 35 per cent to 324,722 aircraft last year as budget travel took off at a rate for which the aviation industry was unprepared.

In the three years before 2009, the growth rate over the same length of time for aircraft had been only 12 per cent.

Hong Kong, which found itself in the same runway predicament, is now planning its own third runway, to be commissioned in 2023.

When it is completed, Hong Kong International Airport will be able to handle 97 million passengers.

In this respect, Singapore will be ahead of the race for runway capacity, with its new runway slated to be done within the decade.

"A third runway and additional terminal should give them a lot of space for a long time. This should satisfy their growth needs for the next couple of decades, probably," Mr Sobie said.

Where terminal expansion is concerned, the new terminals are being planned following a rakish pace of growth over the last decade.

This year, passenger numbers - already clocking 26.2 million passengers at the midway point of June - look set to surpass last year's.

As part of Project Jewel's development, Terminal 1 will be expanded, with more space for the arrival hall, baggage claim areas and taxi bays, Changi Airport Group said on Monday.

This will increase its current capacity of 18 million passengers a year to 24 million. When Terminal 4 is completed in 2017, capacity will grow to 85 million passenger movements a year.

Terminal 5 - slated to for completion in about a decade - will round out this expansion spurt, doubling today's capacity to 132 million passengers annually.

It has not been revealed how much Terminal 5 will cost, but as a frame of reference, Terminal 4 is estimated to cost about $600 million with another $680 million estimated for additional parking stands and supporting airfield infrastructure, among other things.

On Monday, Changi Airport Group also revealed part of the retail firepower that it has planned for its multi-use complex, Project Jewel, which will link Terminals 1, 2 and 3. The group has signed a memorandum of understanding with a unit of CapitaMalls Asia to develop the concept and plans for the project.

The finalisation of plans and exploration of a joint-venture partnership between the airport group and property developer are expected to be done by year-end.

Changi's ambitions, both in the space and ambience department, are being met handily by competing airports in the region. South Korea's Incheon Airport's plans stretch into 2020, when it envisions having four runways and a passenger capacity of 100 million annually.

While Singapore may be matching its neighbours expansion-for-expansion, it also has more to lose.

"Singapore does not have domestic air travel whereas the rest of our competitors do. We're purely an international gateway, so we're very much dependent on tourist arrivals," said K Ajith of UOB Kay Hian.

As with all expansions in the face of roaring trades, constraints might tighten before they ease.

"Changi, once this massive project opens, will have caught up and be in a competitive position compared to all the other airports, potentially... but in the meantime, it's going to be a situation where for several years, Changi is going to have to be very selective in terms of adding flights," CAPA's Mr Sobie added.

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Thursday, August 22, 2013

AirAsia's net profit slumps 62% in Q2


AirAsia, Asia's largest low-cost carrier by fleet size, said on Wednesday its net profit slumped 62 percent in the second quarter due to higher operating expenses and foreign-exchange losses on borrowings.

Net profit was 58.35 million ringgit ($17.75 million) in the three months ending June 30, falling year-on-year despite a 5.5 percent rise in revenue, according to a filing with Malaysia's stock exchange.

It said challenges remained due to high prices for oil and aviation fuel.

"However, barring any unforeseen circumstances, the directors remain positive for the prospects of the group for the third quarter and the remainder of 2013," it said.

The airline had reported a 39 percent year-on-year drop in profit in the first quarter.

Rapidly growing AirAsia has set up subsidiary budget carriers in Indonesia, the Philippines and Thailand. It said each of the fledgling airlines saw significant revenue increases in the quarter.

AirAsia has grown from two planes, when flamboyant boss Tony Fernandes bought the then-struggling airline in 2001, to a total fleet of more than 120 A320s.

"Our traffic numbers show that the AirAsia brand is strong and that we are still able to stimulate demand and retain loyalty among our existing passengers through our low fares and extensive network across the region," Fernandes said in a statement.

The airline, one of the biggest customers for European aircraft maker Airbus, is expecting nearly 360 more aircraft to be delivered up to 2026.

AirAsia is planning to launch a no-frills joint venture in India later this year.

But it was announced in June that it would terminate a joint venture with Japan's All Nippon Airways to set up a Japanese budget carrier, citing management differences.

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Tuesday, August 20, 2013

Malaysia Airlines in the red again


Struggling flag carrier Malaysia Airlines said Tuesday it has recorded a second consecutive quarterly loss after failing to overcome drag from earlier borrowings.

The airline said it made an operating profit of 7.9 million ringgit (US$2.4 million) in the second quarter ending 30 June but still ended up with a net loss of 175.2 million mainly due to unrealised foreign exchange losses.

This improved on the 348.7 million ringgit loss in the same period a year ago, before the carrier moved into the black for the second half of 2012.

But in a statement the airline said it was confident it would repeat last year's pattern as "traditionally the second half of the year is better compared to the first half".

"We are pleased that we have been able to bring in an operating profit in Q2 this year. Previously in 2012, we only saw an operating profit in Q3 and Q4," said chief executive Ahmad Jauhari Yahya.

The airline added that net loss for the first half of 2013 was down 12.7 per cent to 453.8 million ringgit compared to 520.1 million in the corresponding period last year.

Operating revenue for the quarter increased 12 per cent to 3.59 billion ringgit year-on-year on the back of a 29 per cent increase in passenger traffic to 4.2 million.

Last year, the carrier admitted it was in "crisis", forcing it to implement a cost-cutting campaign centred on slashing routes and other measures.

This left it with a 433 million ringgit net loss for the 2012 financial year, a marked improvement from a record 2.5 billion loss in 2011.

Analysts have blamed a combination of stiff competition, poor management, change-resistant unions and government interference for the carrier's poor performance.

But Ahmad Jauhari insisted the company is "on track with our business plan (unveiled at the end of 2011) to turnaround our group and build sustainable profit by end 2014."

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AirAsia Japan rebranded 'Vanilla Air'


Budget carrier AirAsia Japan is being rebranded as Vanilla Air, the airline announced on Tuesday, with its president saying that vanilla is "loved by everyone in the world".

Executives chose Vanilla Air from over 200 other names, taking a month and a half to decide.

"We chose vanilla as our brand name because it is popular and loved by everyone in the world," the airline's president Tomonori Ishii told a news conference in Tokyo. "I think it is a very cute name."

The name was chosen -- despite its connotations of "boring" or "bland" in the West -- following the break-up of a joint venture between the airline's parent companies, Malaysia-based AirAsia and Japan's All Nippon Airways (ANA), which now wholly owns the carrier.

The airlines announced in June that the joint venture would be terminated by the end of October, just over a year after the carrier began flying out of Tokyo's Narita airport, due to a slump.

Vanilla Air, which will begin flights in late December with two passenger planes to be leased from ANA, is to target travellers heading for resort destinations.

All of AirAsia Japan's 420 staff will now become employees of Vanilla Air.

Ishii said the carrier would remain based at Narita airport, and aims to serve travellers to resort destinations both at home and overseas, mainly in Asia.

"We will begin with short-distance services but want to expand the range to mid- and long-distances in line with ANA's branding strategy," Ishii said, adding that it would also increase the number of airplanes to 10 in 2015.

He said further details about the new operation, including destinations and ticket fees, would be announced in late September.

AirAsia Japan, which was equally controlled by AirAsia and ANA, booked an operating loss of about 3.5 billion yen ($36 million) for the year to March.

Ishii said the slump was partially due to the company's extra focus on online sales -- a key strategy for AirAsia, but many Japanese travellers still book flights through travel agents.

A company spokeswoman said the new company would cooperate with travel agents, while introducing a new online ticketing system that "can be fit to local customers".

AirAsia Japan was one of three budget airlines to come online in Japan over the past couple of years, promising to shake up a sector long controlled by ANA and rival Japan Airlines.

The Japanese aviation industry has been notorious for sky-high landing fees and fuel taxes.

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Monday, August 19, 2013

Changi Airport's "Project Jewel" to be developed by CapitaMalls Asia


Changi Airport will build an iconic mixed-use complex with mall developer CapitaMalls Asia.

Changi Airport Group (CAG), which announced the partnership on Monday, said the project codenamed "Project Jewel" will be a world-class, signature lifestyle destination.

Prime Minister Lee Hsien Loong revealed the plans for Project Jewel at the National Day Rally on Sunday evening.

The project will enable Changi Airport to capture the tourism market and boost Singapore's appeal as a stopover point for global travellers.

Envisaged as the "Gardens at the Airport", Project Jewel will offer more than just green spaces.

Robin Goh, AVP of corporate communications and marketing with the Changi Airport Group, said: "The airport experience is obviously a big part of planning when it comes to travellers while making their travel plans and Project Jewel is at the heart of the Terminal 1.

"Of course at Changi Airport will offer a full myriad of offerings, and that includes exciting attractions like a central waterfall, it is going to have great retail and very exciting aviation facilities as well.

"These will obviously increase the tourism mindshare of Changi Airport and of Singapore in attracting even more tourists -- the numbers to Singapore and tourism receipts as well."

Project Jewel will be constructed on the car park site in front of Terminal 1 (T1), and will optimise the use of the 3.5-hectare plot of land. Construction of the new facility will begin next year.

As part of the redevelopment, T1 will also be expanded to allow more space for the arrival hall, baggage claim areas and taxi bays. These enhancements will increase T1's passenger handling capacity to 24 million passenger movements every year, compared to the 18 million it handles currently.

The terminal will also be served by a new multi-storey basement carpark.

Project Jewel is also being designed to be architecturally iconic, with an impressive view of the complex from both the Airport Boulevard and the sky. It will be designed by a consortium of design consultants led by world renowned architect Moshe Safdie, who designed Marina Bay Sands.

A key feature of the complex will be a large-scale, lush indoor garden with a breathtaking waterfall.

To be seamlessly connected to Terminals 1, 2 and 3, Project Jewel will serve as a node linking the three terminals, improving inter-terminal connectivity.

There are also plans for the complex to provide a central communal facility for the 32,000-strong airport community.

Project Jewel is one of the major infrastructure projects being undertaken at Changi Airport to build its capacity for growth and augment its position as a leading global air hub.

Another key infrastructure project is Terminal 4, a larger and enhanced terminal which will be built on the old Budget Terminal site.

With a planned capacity of 16 million passenger movements a year, the new terminal is in the final stages of planning, with construction to begin by the end of the year.

When completed, Project Jewel, together with Terminal 4 which will be ready by 2017, will boost Changi Airport's handling capacity to 85 million passenger movements a year, to cater for the airport’s growth into the next decade.

CAG also plans to increase its staff strength by about 180 people over the next four years, to staff the teams working on the two developments as well as other upcoming infrastructure projects.

This year alone, around 80 new employees will be recruited, said CAG.

SOURCE


Saturday, August 17, 2013

Tigerair’s Joint Ventures To Benefit From 2013 Narrowbody Delivery Schedule


Singapore-based Tigerair group plans to commit half of its deliveries in the current fiscal year to its offshore joint venture franchises, although it is not revealing how the following year’s deliveries will be allocated.

While Tigerair does not have the same level of orders as the other major Asian low-cost carriers like Jetstar, Lion Air and AirAsia, it does have affiliate airlines that it intends to expand. The group currently has 47 Airbus A320-family aircraft—22 with the core Singapore-based operation, 11 with Tigerair Australia, nine with Indonesian carrier Mandala and five with Tigerair Philippines.

The group is scheduled to receive 10 A320s during the fiscal year through March 2014, and five are allocated to the Singapore carrier. Two of these already have been delivered, a Tigerair spokeswoman tells Aviation Week.

Of the other five aircraft, two already have been delivered to Mandala, and two are scheduled for delivery to Tigerair Australia. The one other yet-to-be delivered aircraft remains unassigned, says the spokeswoman.

Beyond these 10 aircraft, Tigerair has another 15 A320s on order for delivery by December 2015. The airline previously has said that it wants to expand in Asia through new strategic partnerships and organic growth. When asked if the carrier is considering more overseas hubs, the spokeswoman says that for now Tigerair is “focused on growing our existing joint ventures.”

Tigerair Singapore achieved an operating profit for the three months through June 30, although the three joint ventures were all in the red. The carrier says it expects more losses from the Indonesia and Philippines carriers, as they continue to expand.

Tigerair Australia CEO Rob Sharp recently told Aviation Week that the carrier needs to double the size of its fleet of 11 A320s to achieve the scale efficiencies that are expected from a low-cost carrier. This would allow it to reach critical mass and maximize asset utilization.

Virgin Australia bought a 60% share in Tigerair Australia in a deal that was completed in July, with the Singapore-based Tigerair parent owning the remainder. Virgin Australia has stated that the Tigerair Australia fleet is expected to grow to 35 aircraft by 2018.

SOURCE


Friday, August 16, 2013

Philippine budget carrier grounded over safety issues


Philippine budget carrier Zest Air was banned from flying over safety infractions, effective immediately, the country's aviation regulator said on Friday.

The small airline is suspended over incidents that compromised several flights as well as other violations of air safety rules, Civil Aviation Authority of the Philippines deputy director-general John Andrews said in a letter to operator Zest Airways Inc.

"(Your) Air Operator Certificate is suspended and (you are) hereby precluded to engage in air carrier operations ... until this Authority is assured that the necessary corrective actions and compliance with aviation safety standards have been undertaken," Andrews said.

Five Zest Air domestic flights were grounded between 22 July and 13 August due to problems ranging from hydraulic systems issues, fuel overflow, and a missing fuel coupling cap, Andrews said.

A Zest Air plane was also found refuelling on Wednesday while its passengers were on board, he added.

Zest Air pilots, meanwhile, were found to have exceeded the flying time limit of 100 hours per month "due to (a) rise in flight operations and flight crew shortage".

Twenty-four of its pilots exceeded the monthly limit last year, Andrews said.

Meanwhile, the regulator said Zest Air had failed to appoint an "accountable manager" after the resignation of its previous executive on 19 July.

Andrews said the manager is responsible for "ensuring that all flight operations and maintenance activities can be financed and carried out to the highest degree of safety standards".

Zest Air, which operates out of Manila airport, serves the domestic market.

Malaysia-based AirAsia, Southeast Asia's biggest budget carrier, bought a 49 per cent stake in Zest Airways in March.

Zest Air officials could not be reached for comment Friday, while a spokeswoman for AirAsia told AFP the company will make a formal statement later.

SOURCE


Ryanair fires pilot over safety claims


Ryanair has fired a pilot who contributed to a British television documentary that raised fears over its fuel policy, the Irish no-frills airline has announced.

Ryanair added in a statement that it had instructed its lawyers to issue legal proceedings against the pilot, John Goss, who featured in Channel 4's Dispatches programme that was broadcast earlier in the week.

"Since Mr Goss' contribution to the C4 Dispatches programme is contradicted by his prior written confirmations to Ryanair... that he has 'no concerns' about Ryanair's safety, the airline has today terminated Mr Goss' employment with immediate effect," Ryanair said in a statement dated Wednesday.

A Ryanair spokesman added: "We look forward to correcting Mr Goss' defamatory claims in court in due course, but will not be commenting further on this issue which is now the subject of legal proceedings."

The Dispatches programme highlighted three occasions on which the airline's pilots had called in emergency alerts because they were low on fuel.

The programme quoted members of the Ryanair Pilot Group, which later issued a statement defending the testimonies and slamming the airline's 'unprecedented' safety reporting procedures.

Ryanair maintained that bad weather was the cause of the incidents and that its aircraft fully complied with EU regulation, and also charged that the group was in fact not made up of its pilots but was a front for unions not represented at the airline.

SOURCE


Thursday, August 15, 2013

Air traffic controllers go on strike in Peru


Air traffic controllers in Peru launched a three-day strike on Wednesday to press for salary hikes, causing delays to domestic and international flights.

More than 1,000 unionised controllers are also seeking better working conditions.

Union leader Cesar Palacios said the strike was enjoying widespread support among controllers themselves and administrative staff.

Strikers staged a sit-in outside Lima airport on Wednesday to press their case.

Delays were reported in domestic and international flights.

The government is bringing in military air traffic controllers to ease the effects of the stoppage, said Luis Rivera, manager of the civil aviation agency, called Corpac.

SOURCE


IAG airline group announces Airbus orders


International Airlines Group (IAG), parent of British Airways and Iberia, on Wednesday announced firm orders and options for up to 220 Airbus A320 family shorthaul aircraft.

The London-based company said up to 120 of the orders were for Spanish subsidiary airline Vueling, enabling it to "replace some of its existing A320 fleet and expand its business".

The Vueling agreement is made up of 62 firm orders - 30 A320ceo and 32 A320neo - to be delivered between 2015 and 2020, and 58 options.

IAG has also secured 100 options for the A320neo, the family's latest model, which could be used by British Airways, Iberia or Vueling.

"Vueling has managed to successfully expand its business profitably by targeting both growth markets and those areas where weak competitors are reducing capacity," explained IAG chief executive, Willie Walsh.

IAG said it had negotiated "a very substantial discount" from the list prices, which are $81.8 million (61.7 million euros) for the A320ceo and $92.0 million (69.3 million euros) for the A320neo.

Its shareholders will need to approve the firm orders at a meeting later this year.

SOURCE


Wednesday, August 14, 2013

New wiring defect found in Dreamliner: ANA


Japan's All Nippon Airways (ANA) said on Wednesday it had found defective wiring in a fire-extinguishing system on three of its Boeing Dreamliners, prompting rival Japan Airlines (JAL) to abort a Helsinki-bound flight.

The two Japanese carriers are the trouble-plagued Dreamliner's biggest customers.

ANA said it had discovered the faulty wiring on a plane at Tokyo's Haneda airport before a scheduled flight to Frankfurt. The wiring was later fixed and it departed for Germany.

Two other aircraft were found to be affected by the faulty wiring, an ANA spokesman added. The airline has 20 Dreamliners in service.

Following the discovery, JAL said it recalled a Tokyo-Helsinki flight on Wednesday and plans to inspect all 10 of its Dreamliners.

The defective wiring could cause a fire-extinguishing system for the engine to malfunction, ANA said.

The fuel-efficient plane has suffered a series of woes, including problems with its lithium-ion batteries which prompted a four-month worldwide grounding at the start of the year.

In July, there was a fire aboard an empty Ethiopian Airlines Dreamliner at London's Heathrow airport.

Despite a lengthy investigation, Boeing has not identified the root cause of the Dreamliner's battery problems, but said it put safeguards in place to prevent future incidents.

Japan's two biggest airlines are in talks over compensation for what they said was more than $200 million in combined lost revenue from the grounding, that forced the cancellation of hundreds of flights.

SOURCE


Cargo plane crashes in US state of Alabama


A UPS cargo plane crashed Wednesday in Birmingham in the US state of Alabama but there was no immediate word on casualties, officials said.

The Airbus A300 plane was traveling from Louisville in Kentucky and crashed while approaching Birmingham airport, about half a mile north of the runway, said Kathleen Bergen, an official with the Federal Aviation Administration.

She said she had no information yet on injuries. US media said it was not clear how many people were aboard.

Video on a news website called al.com showed flames at the crash site in a green grassy area and columns of gray smoke rising.

Many fire trucks were on the scene.

UPS issued a brief statement saying it would provide details as they become available, but gave no word either on how many people were on the plane.

There were no immediate reports of casualties on the ground.

"As we work through this difficult situation, we ask for your patience, and that you keep those involved in your thoughts and prayers," the UPS statement said.

SOURCE


S'poreans among most well-travelled in region: survey


A recent survey by MasterCard shows that Singaporeans are among the most well-travelled in the region.

Eight thousand consumers were polled across the Asia-Pacific, Middle East and Africa.

Four hundred and forty-two were from Singapore, and of those, 78 per cent travelled internationally for leisure in the last 12 months.

Other "jetset" countries include Hong Kong and Thailand.

Most Singaporeans surveyed said they do not intend to cut back on travel in the year ahead.

Only 1 per cent do not intend to travel.

Thirty-three per cent have definitive plans to travel more in the next 12 months.

Regional destinations remain popular for Singaporeans, who have a penchant for budget airlines.

In the next year, 40 per cent of Singaporeans polled intend to go to Australia, 37 per cent want to go to Japan, while 37 per cent are set for Thailand.

Worldwide, Paris, Japan and London are the top city picks for Singaporeans.

Tokyo remains the top destination in Asia.

SOURCE


Cathay Pacific swings to first-half net profit


Hong Kong's Cathay Pacific Airways swung to a first-half net profit of HK$24 million ($3.1 million) on Wednesday, but warned of continued high fuel prices and a challenging business environment.

The profit for the six months ending June 30 comes after the blue-chip Asian airline suffered a first-half net loss of HK$935 million a year earlier, representing a 103 percent upswing.

Revenue fell 0.6 percent to HK$48.58 billion.

Company chairman Christopher Pratt said fuel costs decreased 8.5 percent compared to the same period last year but remained expensive, accounting for 39 percent of total operating costs.

"We continued to operate in a challenging business environment in the first half of 2013, though there was improvement in our passenger business," he said in a statement.

Passenger numbers increased 1.3 percent to 14.50 million.

"The persistently high price of jet fuel continued to affect our business adversely," he added.

Cathay said it had helped combat high fuel prices by withdrawing older planes and operating more long-haul services using fuel-efficient Boeing 777-300ER aircraft.

The profits fell short of analysts’ expectations of HK$721 million, according to Dow Jones Newswires.

"While we continued to operate in a difficult environment in the first six months of 2013, it was pleasing to see some improvement in our business," said Pratt, describing the business outlook for the rest of the year as "unclear".

SOURCE


Airlines to fight US suit against merger


US Airways and American Airlines said on Tuesday they would fight the US Justice Department's move to block their merger, which would create the world's largest carrier.

US Airways and American parent AMR Corp rejected Justice Department arguments that the merger would limit choices for passengers, push up fare prices and reduce service.

They said in a statement they "intend to mount a vigorous and strong defence" of the $11 billion merger, after it already gained the support of shareholders, creditors and European anti-trust regulators.

"We will mount a vigorous defence and pursue all legal options in order to achieve this merger and deliver the benefits of the new American to our customers and communities as soon as possible," they said.

"We believe that the DOJ is wrong in its assessment of our merger, they said, referring to the Justice Department.

"Integrating the complementary networks of American and US Airways to benefit passengers is the motivation for bringing these airlines together. Blocking this pro-competitive merger will deny customers access to a broader airline network that gives them more choices."

They also rejected the department's allegation that the merger was not critical to completing AMR's bankruptcy restructuring program.

"This merger provides the best outcome for AMR's restructuring. The widespread support from the employees and financial stakeholders of both airlines underscores the fact that this is the best path forward for both airlines and the customers and communities we serve."

In a latter to staff released to the media, US Airways chief executive Doug Parker stressed management's commitment to the merger, while putting off the original target closing date of the third quarter of this year.

"Other companies have found themselves in similar circumstances and gone on to successfully close their merger," he said.

"We are hopeful that the litigation will be successfully concluded and we will close the merger before year end."

SOURCE


Monday, August 12, 2013

Over 1,500 new jobs to be created in S'pore aerospace industry


Over 1,500 new jobs will be created in the aerospace industry in Singapore, as a result of 14 investments by multi-national corporations (MNCs).

In a written reply in Parliament on Monday, Minister for Trade and Industry Lim Hng Kiang said that since the start of 2012, aerospace MNCs have begun operations at eight new facilities and are building another six facilities.

These MNCs include brands such as Bell Helicopter & Cessna Aircraft, Bombardier, Pratt & Whitney and Rolls-Royce.

This was in response to a question by MP for Pasir Ris-Punggol GRC Gan Thiam Poh on new investments in the industry.

Mr Lim added that the aerospace industry has been performing well. In 2012, the industry had a record high output of S$8.7 billion and employed 19,900 people.

Four out of five people employed within the industry are locals and 90 per cent of the jobs are skilled jobs. 

SOURCE


Sunday, August 11, 2013

Asiana offers US$10,000 to crash survivors


Asiana Airlines said on Sunday it was offering an initial compensation payment worth $10,000 to all surviving passengers on board a plane that crashed in San Francisco last month, killing three people.

The South Korean airline recently started offering the cash to help the 288 surviving passengers meet urgent medical expenses and other needs before final compensation amounts are decided later, an Asiana spokeswoman told AFP.

"This is a minimum payment we are offering for all passengers, regardless of whether they were injured or not," she said, adding the amount will be deducted from the total compensation once it is decided.

Those who were relatively unharmed and whose ultimate compensation may come to less than $10,000 will still be allowed to keep the rest of the money, she added.

The latest offer is not a settlement and will not affect ongoing or future lawsuits filed by passengers, the spokeswoman added.

South Korea's second-largest air carrier is faced with a horde of legal battles after the July 6 crash, which left three dead and some 180 injured.

The tail of the Boeing 777 passenger jet from Shanghai via Seoul broke off after clipping a seawall short of the runway, prompting the aircraft skid out of control and catch fire.

Alongside 16 crew members, the aircraft was carrying 291 passengers -- many of them Chinese -- and more than 120 of them escaped unharmed. The cause of the crash is under investigation by US aviation authorities.

A group of 83 passengers on board the flight filed a lawsuit in July seeking millions from Boeing and warned their claim may be expanded to include Asiana later.

Other groups of passengers have reportedly filed separate suits in the US.

SOURCE


South Korean bid wins contract to build Myanmar airport


Myanmar has picked South Korea's state-run airport operator to build a new international hub near it's main city, as the once-isolated nation sees booming tourist and business visitor numbers.

A consortium led by the Incheon International Airport Corp (IIAC) was chosen as the preferred bidder to construct the Hanthawaddy International Airport as a second hub for the country's commercial centre Yangon, Myanmar's Department of Civil Aviation said.

The final contract for the $1.1 billion project will be signed at the end of this year, Seoul's transport ministry said in a statement on Sunday confirming the successful bid.

Myanmar, which emerged from outright military rule in 2011, has seen a surge in tourist and business arrivals as reforms in the former pariah state lure holiday makers and potential investors.

The country's main air gateway Yangon International Airport, which is also set for expansion, currently has a capacity of only 2.7 million passengers annually and authorities warned last year that the number of arrivals was set to exceed that level.

Hanthawaddy International -- to be located about 50 miles (80 kilometres) northeast of downtown Yangon -- will be capable of handling about 12 million passengers a year, the South Korean transport ministry said.

The consortium -- also involving four Seoul construction firms -- will build the airport by 2018 and the IIAC will be allowed to manage the property up until 2067, it added.

The IIAC operates South Korea's biggest hub, which handled nearly 40 million passengers last year and has been several times rated the world's best airport by the Airports Council International.

SOURCE


Aeroflot plans budget airline revolution in Russian skies


A Russian budget airline? The thought may fill some travellers with dread but Russia's flag carrier Aeroflot is now taking serious steps to launch the country's first sustainable low-cost airline.

Aeroflot has made huge strides in recent years to lay to rest its image as a disaster-plagued Soviet carrier, becoming a member of the Sky Team alliance and winning international awards for its service.

And now it wants to take another step by creating a Russian equivalent to EasyJet or Ryanair, whose success transformed travelling habits and the aviation industry in Europe.

Aeroflot announced the plan for a budget subsidiary after a board meeting in late July. But crucially, setting up the budget airline is still dependent on changes to Russia's aviation regulations which are stricter than in Europe.

The airline, which still controls 40 percent of the Russian aviation market, is hoping from 2014 to launch its first budget routes from Moscow to Saint Petersburg and to cities in the south of Russia.

According to the daily newspaper Vedomosti, the new Aeroflot subsidiary, whose name has yet to be unveiled, plans to eventually serve international destinations including Kiev, Yerevan, Istanbul and Barcelona with a fleet that will comprise 40 planes starting with Boeing 737s.

Analysts point to the fact that many Russians are still making long journeys across the vast country by train -- often lasting several days -- and may be easily tempted to fly if the prices are lower.

The budget Aeroflot would likely be based at Domodedovo in the south of Moscow as opposed the airline's main hub at Sheremetyevo airport.

Russia's third biggest airline UTair is also planning to set up its own low cost carrier, pointing to a clear market demand.

"People consider more and more that their time is precious and they are going to want less and less to spend two or three days to get anywhere," its chief executive Andrei Martirossov told Vedomosti.

Russian companies are also keenly aware that low-cost European airlines are already establishing themselves on the Russian aviation market which is enjoying annual growth rates of 20 percent.

EasyJet in March launched its first flights between Moscow and London, while Hungary-based Wizz Air will follow in September with flights between Budapest and Moscow.

"Aeroflot's move, in our view, is strategically sound given strong demand for cheap domestic flights, including from passengers who currently travel by train," Sberbank Investment Research said in a note to clients.

"It is better to jumpstart the process rather than wait for competitors to lead the way in this promising market segment," it added, warning however of the "high risks for Aeroflot".

Aeroflot is seeking to count on a tried-and-trusted method to set up its budget airline -- reduce costs to a minimum, sell non-refundable tickets and only through the Internet, as well as charging for checked-in baggage and food.

The problem is that currently Russia's stringent aviation regulations outlaw many such aggressive cost-saving practices. Russian law also forbids the hiring of foreign pilots, a major problem in a country whose aviation boom had led to a pilot shortage and consequent high salaries.

"As long as the law does not change, absolutely nothing is going to fly. We are not going to take the risk," Aeroflot's chief executive Vitaly Saveliev told state television.

"Aeroflot is not going to invest 100 million dollars in a project which is not going to make us money."

He called it a "paradox" that Russian authorities have allowed Wizz Air and EasyJet to fly into the country but hasn't levelled the regulatory playing field so Russian companies can use the same business model.

The Russian authorities appear however to have understood the necessity of acting after President Vladimir Putin gave his agreement in principle to the creation of a low cost airline last October. But changes have been slow to come.

According to consultancy Bain & Company, all attempts to create a low-cost airline in Russia have failed until now and the price of tickets is three to five times more than those offered by European budget airlines.

One tentative attempt to create a budget airline, Sky Express, lost its licence in 2011 due to financial difficulties. It was absorbed by another operator, Kuban, which itself went bankrupt at the end of 2012.

In 2009, the Alfa holding of billionaire Mikhail Fridman and American fund Indigo opened the Avianova airline but it grounded its aircraft in October 2011 after becoming heavily indebted and plagued by a shareholder conflict.

Analysts at VTB Capital said that given past experience, it seemed that Aeroflot still had an uphill struggle to get the airline of the ground.

"The low-cost airline model does not currently work in Russia, as the track record demonstrates, and we doubt this idea will be implemented any time soon."

SOURCE


Saturday, August 10, 2013

Planes collide at Melbourne airport


Two commercial planes collided on the tarmac at Australia's Melbourne airport on Saturday, officials said, damaging the aircraft but causing no injury to passengers.

The crash, between a reversing Virgin Australia 737 and an A320 Jetstar craft, saw one jet lose part of its tail cone and the other suffer wing damage, according to engineers who witnessed the damage.

"There were no injuries from (an) accident involving two aircraft which made contact while taxiing this morning, (which is) now under investigation," Melbourne Airport said on its Twitter feed.

"Airport operations as normal. Two gates temporarily out of use pending investigation."

The Virgin aircraft, bound for Maroochydore and carrying 175 passengers, hit an empty Jetstar plane as it was leaving the gate for take-off at about 9:30am, Virgin said.

Its wing-tip was damaged but the Jetstar aircraft lost the end of its tail cone, said engineer Paul Cousins, who described it as a lucky escape and put the damage bill at at least A$3 million for each airline.

"They were very lucky that the winglet did not go into the (tail cone's) auxiliary power unit, which is a small jet engine that runs in the back of the aircraft," Cousins, who is president of the national aircraft engineers' union, told The Age newspaper.

"It could have caused that engine to rupture... bits and pieces could have come out it and gone flying everywhere."

Disembarking Virgin passenger Luke Grima said there was a serious thud and exclamations of "Oh my God we've just hit another plane" as the jets collided.

"It was as if we ran over something," Grima told the Herald Sun newspaper.

"When we looked out the wing, we could just see the end of the wing had come off and the other Jetstar plane has got some pretty serious damage to its rear."

The Australian Transport Safety Bureau said there were "very well-practised procedures in place" for aircraft gate manoeuvres and it had launched a probe.

"The ATSB is investigating the ground collision in Melbourne today," the authority said.

"Investigators will arrive in Melbourne this afternoon."

SOURCE


Four killed in Ethiopian military plane crash in Mogadishu


An Ethiopian military cargo plane crash landed and burst into flames on Friday at Mogadishu airport, killing four crew members, officials with Somali security and AU forces said.

"It was a military cargo plane and there were six crew on board," said one security official who asked not to be named.

"Four of them died and two were rescued," the official said.

He said the aircraft, which crashed shortly before 0500 GMT belonged to the Ethiopian military.

A thick tower of smoke was seen billowing up from the crash scene and the airport was temporarily closed.

Sources at the airport said a series of explosions was heard as the fire spread along the plane, suggesting it was carrying ammunition or other inflammable products.

The African Union force in Somalia (Amisom) confirmed on its Twitter feed that the wrecked aircraft belonged to the Ethiopian airforce, expressing "heartfelt condolences to the government and people of Ethiopia following the loss of crew members".

Nick Kay, the UN special representative to Somalia, tweeted that he offered his "condolences" for the "tragic crash".

According to the Somalian government spokesman, Ridwan Haji Abdiweli, the plane suffered difficulties on landing.

However, he added that there "was nothing to indicate any external interference", referring to the possibility of an attack.

Flights at the airport resumed on Friday evening.

Ethiopia sent troops into southwest Somalia in 2011 to fight Shebab Islamist insurgents, alongside the Amisom force.

The Ethiopian troops have been crucial in dislodging the Shebab from a series of key towns.

The Ethiopian government confirmed the accident but said the exact cause of the accident was subject to an investigation.

A spokesman for the minister of foreign affairs, Dina Mufti, said they were unable to confirm the number of dead or injured.

SOURCE


Wednesday, August 7, 2013

Plane stuck in mud closes Thai airport


An airplane that became wedged in mud after skidding off the runway during take-off in southern Thailand has forced the closure of the airport, authorities said on Wednesday.

The Boeing 737, operated by low cost Thai carrier Nok Air, veered onto soft ground on the edge of the runway at Trang airport as it set off for the Thai capital Bangkok with 142 passengers and 7 crew onboard late Tuesday.

No one was hurt in the incident, but a wheel of the plane remained lodged in the mud, prompting authorities to close the airport, Trat provincial governor Teerayut Eimtrakul told AFP.

"The aircraft's front wheel is about 15 metres (50 feet) from the runway's edge and has sunk half a foot (15 centimetres) into the mud," he said, adding that equipment was on its way from Bangkok to help extract the plane.

Staff at Nok Air said it was raining during the accident.

Passengers scheduled to fly with Nok Air and another low cost carrier AirAsia, which also flies from Trang, have been taken by bus to nearby airports.

SOURCE


Indonesian plane skids off runway after hitting cow


An Indonesian passenger jet crashed into a cow and skidded off the runway as it came into land at an airport in the centre of the archipelago, officials said Wednesday.

No one was killed or seriously injured when the Lion Air plane carrying 110 passengers collided with one of three cows wandering on the runway as it arrived late Tuesday in Gorontalo, on Sulawesi island.

The cow, however, was crushed to death under one of the Boeing 737-900's middle wheels, head of Jalaluddin airport Agus Pramuka told AFP.

The pilot, Iwan Permadi, told state-run Antara news agency he could smell "burning meat" as the jet ran over the animal.

He said he thought there were dogs in front of the plane as it came into land, "but it turned out there were three cows wandering in the middle of the runway".

Pictures showed the dead cow under the aircraft's wheel in a field. The plane, which suffered minor damage, had skidded into the field next to the runway, with its tail still on the runway.

All the passengers managed to disembark safely, transport ministry spokesman Bambang Ervan told AFP.

The plane had started its journey in Jakarta and also had a stopover in Makassar, on Sulawesi, according to local media.

The airport was closed following the incident, disrupting travel plans for people heading home for the Eid al-Fitr holiday in Muslim-majority Indonesia.

One small jet managed to take off Wednesday, but the Lion Air plane was still at the edge of the runway, Pramuka said.

Indonesia, which relies heavily on air transport to connect its more than 17,000 islands, has one of Asia's worst aviation safety records.

In April, a Lion Air passenger jet carrying 108 people crashed into the sea after missing the runway as it came into land on the resort island of Bali. No one died but dozens were injured.

Lion Air could not be immediately reached for comment.

SOURCE

Huge fire closes Nairobi international airport


A "massive" fire shut down Nairobi's international airport Wednesday with flights diverted to regional cities, officials said, as firefighters struggled to put out the blaze in east Africa's most important transport hub.

"There is a serious fire at JKIA (Jomo Kenyatta International Airport), but we are doing everything possible to avert a crisis," said Mutea Iringo, a senior official at the interior and national coordination ministry.

Firefighters were tackling the blaze but were "running dangerously low on water", the interior ministry said in an appeal to traffic to give way to trucks ferrying water to the airport.

"Apart from emergency landings, all flights into and out of JKIA have been cancelled ... (the) airport has been shut down," added Iringo.

The fire broke out shortly before dawn.

There were no initial reports of casualties, but Iringo said the fire was "massive", adding that the arrivals and immigration sections were "totally damaged".

Flights were being diverted to other airports, including the port city of Mombasa, the interior ministry added.

Images on Kenyan media showed flames rising high in the sky and billowing clouds of black smoke out of the main arrivals and departures terminal, with dozens of police and fire trucks at the scene.

The airport serves as a regional hub for east Africa, with many long-distance international flights landing there to connect to countries across the region.

Kenya National Disaster Operation Centre, in an update given at 0500GMT, said that while the blaze had been brought under control in the international departures areas, fire was still burning at the arrivals terminal.

All roads around the airport had been closed except to emergency traffic, it added.

"This is a major crisis," said senior transport ministry official Michael Kamau.

The blaze comes two days after aircraft were delayed for several hours after the failure of a fuel hydrant needed for refuelling the planes.

SOURCE

Monday, August 5, 2013

Virgin Australia expects loss of US$98m for year


Virgin Australia said Monday it was expecting a full-year loss of A$95 million to A$110 million (US$84 million to US$98 million) due to a range of factors, including the tough economic environment and restructuring costs.

In updated guidance for the financial year ended June 30, 2013, Virgin said its performance had been hit by the "difficult economic and competitive environment", costs associated with its transformation, and Australia's carbon tax.

"As a result of these factors, Virgin Australia expects a statutory loss after tax in the range of $95 million to $110 million," it said in a statement.

Virgin Australia said costs included the transition to the new Sabre booking and check-in system, transaction costs related to the acquisition of Skywest Airlines and the acquisition of 60 per cent of Tiger Airways Australia.

It also confirmed that the pre-tax costs of the carbon tax, a levy on Australia's biggest polluters, for the 2013 financial year would be $45-$50 million.

It said the carbon tax cost was "unable to be recovered due to weak economic conditions and the competitive environment".

Virgin Australia, the country's second largest carrier after Qantas Airways, last year posted a full-year net profit of A$22.8 million.

"Although today's update is disappointing and notwithstanding a challenging environment, we have made significant progress on the execution of our game change programme," Virgin Australia chief executive John Borghetti said.

"We now have the right platform in the Australian market to generate sustainable earnings benefits."

The airline said forward domestic bookings as at 30 June, 2013 were about six per cent higher than the same time last year and it expected domestic capacity growth in the first half of the 2014 financial year to be within three to four per cent.

SOURCE


Friday, August 2, 2013

Boeing exec avoids Dreamliner questions, touts new jets


A Boeing executive on Friday declined to answer questions about Dreamliner's growing list of problems less than two weeks after another grounding, as he touted the troubled aircraft's new models.

A Qatar Airways 787 Dreamliner resumed flights on Wednesday after being grounded due to what the US plane manufacturer said was the replacement of "technical components".

The plane was out of action from July 22, an industry source told AFP.

The fuel-efficient plane has suffered a string of woes largely tied to its lithium-ion batteries, including a four-month worldwide grounding at the start of the year and a fire onboard an empty Ethiopian Airlines plane at London's Heathrow airport last month.

On Friday, Scott Fancher, vice president and general manager of airplane development at Boeing, told a Tokyo press briefing that the firm was preparing to introduce new versions of its 787 Dreamliner as well as the long-range 777 and smaller 737.

The company was planning a test flight of its larger and more energy-efficient 787-9, due to come into service next year, he said, adding that its successor would likely be in the air by 2018.

But Fancher declined to discuss the current Dreamliner's problems or the battery system on its revamped model. Japanese battery maker GS Yuasa has been the global supplier for power packs in Boeing's Dreamliner.

"It is a detailed design question, not the sort of thing we are talking about," Fancher said in a response to a reporter's question about the Dreamliner battery.

"I'm not going into a lot of detail on design details," he added.

Despite a lengthy investigation, Boeing has not identified the root cause of the Dreamliner's battery problems, but said it put safeguards in place to prevent future incidents.

Japan's two biggest airlines, All Nippon Airways and Japan Airlines, were sideswiped by the grounding of Boeing's new aircraft that began in January, forcing them to cancel hundreds of flights until the plane was allowed to resume flying in June.

The pair, which have been the Dreamliner's biggest customers, have so far stuck with the plane, saying it was key to their expansion drive.

But the carriers are in talks over compensation for what they said was more than $200 million in combined lost revenue from the grounding.

SOURCE