Monday, September 30, 2013

SIA temporarily resumes flights to Athens, Greece


Singapore Airlines will be returning to the Greek capital Athens on a temporary basis between June and October 2014 to meet expected demand during the peak summer travel season.

Flights will be operated twice per week, on Mondays and Thursdays, between 9 June 2014 and 9 October 2014. Boeing 777-200ERs will be used for the flights.

Singapore-Athens flights will operate as SQ382, departing at 0205hrs and arriving at 0830hrs. Athens-Singapore return flights will operate as SQ381, departing at 1300hrs and arriving at 0455hrs the following day.

Singapore Airlines took the difficult decision to suspend year-round services to Athens in October 2012 after a prolonged period of challenging operating conditions.

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Airbus delivers first A400M military transport plane


After years of delays and huge cost over-runs, Airbus on Monday delivered its first A400M military transport plane, handing over the huge turboprop to France.

The pan-European aircraft maker hopes the official handover ceremony at the Airbus Military plant in Seville, southern Spain, will launch strong sales to air forces worldwide following a difficult birth.

"It is an extremely high performance aircraft and I am quite proud that France is number one for delivery," French Defence Minister Jean-Yves Le Drian said at a handover ceremony also attended by Spain's Prince Felipe.

Already, though, there are concerns about orders for the plane.

The French minister, who was returning to a military base in Orleans aboard the plane after the ceremony, said France still planned to take 50 of the A400M aircraft, which has propellers more than five metres (16 feet) long.

But the minister, who celebrated the A400M as a "technological feat", said France would take only 15 planes "right now" in its 2014-2019 supply programme currently being debated in parliament.

Originally, France had agreed to take 35 planes up front, and it will likely have to negotiate the downsized schedule to avoid penalties.

But France's minister described the change in plane orders as a minor correction with final objectives remaining the same.

Airbus parent EADS has expressed concern that any decision by France to axe orders could lead other nations such as Spain and Germany to do the same, squeezing the entire programme.

It took 10 years to bring the A400M to the skies in one of the European military industry's most ambitious projects, backed by seven partners: NATO members Belgium, Britain, France, Germany, Luxembourg, Spain and Turkey.

The project was dogged by delays and broken budgets as developers struggled with the complex engine and the divergent requirements of client nations.

Finally, four years late and 6.2 billion euros ($8.3 billion), or 30 per cent, over budget, Tom Enders, chief executive of Airbus owner EADS, officially handed over the revolutionary aircraft to France, its first client, though the plane was actually ready August 1.

Designed at the request of European chiefs of staff after the first Gulf War of 1991, which exposed the need for such a plane, the A400M is a multi-task military air lifter.

"It will transform the way military operations work," Ian Elliott, vice-president of Airbus Military, told AFP.

"For the first time ever, it will allow combat delivery in the point of need," he added.

Equipped with four turboprops, it can transport up to 37 tonnes including armour or helicopters over a distance of 3,300 kilometres (2,050 miles) but also land on unprepared terrain such as sand.

"I have flown about six or seven times and it's fantastic," Elliott said, touting the comfort in the cabin, modelled on that of the Airbus double-decker superjumbo A380, and other assets such as its quietness and its seats, developed with the advice of paratroopers.

The A400M will be the sole plane on the market to challenge the US-made Lockheed Martin C-130 Hercules, which has a capacity of 20 tonnes and was designed more than 50 years ago.

Its other rival, the C-17 Globemaster, which can lift 76 tonnes, will exit production from 2015, US manufacturer Boeing announced recently.

Within a month, France will receive its second A400M and Turkey its first. A third plane is scheduled to be delivered to France by the end of this year.

Airbus Military aims to export 400 A400M planes in the next 30 years, beyond the 174 already ordered in Europe and Malaysia. Germany has ordered 53, France 50, Spain 27 and Britain 22. The manufacturer will assemble 10 planes next year, and then about 30 a year.

Airbus Military is targeting the Gulf and the Asia-Pacific region, where several countries are renewing fleets.

The reaction of French and British air forces will be key, said Airbus Military's Elliott.

"The French Airforce and the Royal Air Force have a great credibility all over the world so if they are really happy about it, their opinion will matter," he said.

"We are already talking to many US military officials," Elliott said, adding that the aircraft would also be "perfect" for humanitarian operations.

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Plane skids off runway at Rome airport


A plane toppled and skidded off the runway as it landed at Rome's Fiumicino airport on Sunday after its landing gear malfunctioned during a thunderstorm, slightly injuring around 10 people.

The plane, an Airbus A320 belonging to flagship carrier Alitalia and flying in from Madrid, had 151 passengers on board, Italian news agency ANSA reported.

The report cited officials as saying there were around 10 "code green" light injuries among the passengers, who were treated by medical staff at the airport.

The pilot realised as he was coming in that the plane's right wheels had failed to deploy and he warned air traffic control ahead of time, the report said.

The plane then toppled on its right wing during landing and could be seen on its side near the runway, it added.

The national air transport safety agency said it had opened an investigation into the incident and dispatched two officers to examine the plane.

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Saturday, September 28, 2013

Singapore signs Open Skies Agreements with 3 countries


Singapore has signed Open Skies Agreements with Sierra Leone, Slovenia and Tanzania.

The signing took place on the sidelines of the International Civil Aviation Organisation Assembly in Montreal, Canada.

The agreements were signed by Tranport Minister Lui Tuck Yew and his counterparts.

A statement from the Transport Ministry said under each of the agreements, designated airlines will be able to fly between Singapore and the other country, as well as via and beyond to any third country, without restrictions in capacity, frequency or aircraft type.

Mr Lui said the agreements underscore Singapore's commitment to establishing a liberal air services framework in Singapore and internationally.

With these agreements, Singapore now has Air Services Agreements with more than 120 countries, of which more than 50 are Open Skies Agreements.

SOURCE


Friday, September 27, 2013

Malaysia Airlines increases capacity across network


Malaysia Airlines is on an expansion mode with capacity and frequency increases regionally and new destinations internationally.

"In the recent weeks, we launched flights to Dubai and Kochi and increased capacity and frequencies to Bandar Seri Begawan (Brunei) and Medan (Indonesia). Soon, we will be flying more often to Singapore, Sydney and Melbourne, as well as putting Darwin back in our network map", says Group CEO, Ahmad Jauhari Yahya.

"People are travelling more, and Malaysia Airlines is strengthening our footprint across Asia and beyond in response to these market needs", added Ahmad Jauhari Yahya.

Malaysia Airlines has seen a steady increase in passenger traffic since the start of 2013 matching the added capacity. Seat loads have also improved, registering 83.3 per cent in July 2013, equivalent to a 9.1 per cent increase from the previous year.

Malaysia Airlines recently celebrated the reinstatement of its Kuala Lumpur - Dubai service in August 2013. Kochi, in south India, became its new destination in September. Darwin in Australia's Northern Territory is the Malaysian national carrier's new destination in November 2013.

Capacity and Frequency increases:

- Bandar Seri Begawan, Brunei - Saw an 11 per cent increase in capacity into and out of Bandar Seri Begawan with the bigger B737-800 series (160-seats) aircraft effective 15 August 2013 which replaces the previous B737-400 series.- Medan, Indonesia - Added a third daily frequency from Kuala Lumpur into the Medan effective 15 September 2013, making it 6,720 seats weekly in and out of Medan.

- Singapore - New daily flights MH623 ex-Kuala Lumpur for Singapore and MH624 ex-Singapore for Kuala Lumpur offer more seamless travel and good connections to popular destinations such as Delhi and Beijing.

- Sydney, Australia - Double daily operations from Sydney will be increased with 4 additional weekly flights bringing it to 18 flights per week from 21 November 2013. This will increase to 21 weekly flights from 5th February 2014.

- Melbourne, Australia - Malaysia Airlines is also increasing its frequency from Kuala Lumpur into Melbourne to triple daily from 21 November 2013, from its current double daily service. The new frequency, MH147 will depart Kuala Lumpur at 7.50 pm daily and will arrive in Melbourne at 6.45 am the following day. MH146 from Melbourne to Kuala Lumpur will depart at 8.55 am and will arrive in Kuala Lumpur at 2.15 pm the same day.

Customers can book their travel on Malaysia Airlines through all distribution channels mainly www.malaysiaairlines.com, Malaysia Airlines 24 hours toll free number 1 300 88 3000, MHmobile, Malaysia Airlines ticket offices and appointed agents throughout Malaysia.

SOURCE


Thursday, September 26, 2013

Lack of accord will hurt long-haul carriers like SIA the most


Singapore Airlines and other long-haul Asian carriers are keeping their fingers crossed that the United Nations can forge a consensus on how to tackle the industry's carbon emissions.

If members of the UN's International Civil Aviation Organisation (ICAO) gathered in Montreal, Canada over the next two weeks do not see eye to eye, it could pave the way for unilateral enforcement action by the European Union and several countries including Australia.

The EU's plan will harm long-haul carriers like SIA and Cathay Pacific the most.

In 2008, the EU spoke of its intention to charge airlines flying in and out of Europe for carbon emissions by adding aviation to the bloc's market-based carbon trading scheme.

Airlines will have to keep to a stipulated amount of carbon emissions or buy extra units from the carbon trading market.

Charges would be based on carbon emitted during the entire flight, instead of just over Europe, which effectively penalises long-haul carriers like SIA.

After an uproar by airlines and countries, most notably the United States, China, India and Russia, the EU backed down, temporarily.

In November last year, it agreed not to extend the scheme to flights starting or ending outside the bloc's air space, to give ICAO time to get its act together.

The concession, referred to as "Stop the Clock", is not a permanent deferment, said industry think-tank, Centre for Asia Pacific Aviation.

In a recent report, the centre quoted a spokesman for Ms Connie Hedegaard, the European climate action commissioner, as saying: "This (ICAO assembly) is a multilateral negotiation where you give and take.

"Only in return for a global deal, the EU has offered to continue emissions curbs for intra-European flights as well as the part of international flights covered by regional airspace up to 2020."

Aviation currently accounts for 2 per cent of man-made greenhouse gas emissions.

Over the years, the industry has invested in more fuel-efficient planes and research on cleaner alternative fuels.

But the general agreement inside and outside the industry is that more needs to be done to ensure long-term environmental sustainability.

It will be a challenge to get the 191 ICAO member states, including Singapore, gathered at the body's 38th Assembly until Oct 4, to sing the same tune.

The issues are complex. Should regulation be for airlines or states? Should there be a different approach for developing and developed nations?

Several options are being considered. They include a mandatory offsetting scheme, where all airlines buy carbon credits from other industries to offset emissions for growth.

The UN is also considering a global version of the EU scheme which gives airlines a stipulated amount of carbon emissions based on their flight networks, with the option of paying for more.

A framework for countries to implement their own market-based measures is also being worked on in the event that no global agreement is reached.

ICAO must move decisively to take a united stand. If it does not, the EU will step in and potentially provoke fresh protests from airlines and governments.

The last time it pushed, China protested by delaying ordering planes from European maker Airbus.

Carriers like SIA, which are already struggling with persistently high oil prices and weakness in the global economy, are hoping that the carbon emission conundrum will not further choke off the industry's growth.

SOURCE


Tigerair widens capacity gap against competitors


Tigerair Group has pulled ahead of the pack, widening the gap between itself and its competitors, according to a latest report on the low-cost carrier (LCC) sector by the Centre for Aviation (CAPA).

The group now accounts for 33 per cent of LCC capacity at Changi International Airport - more than the 26 per cent and 23 per cent LCC capacity share of rivals AirAsia and Jetstar, respectively.

By year-end, Tigerair, including Tigerair Mandala and Tigerair Philippines, will account for almost 11 per cent of total seat capacity at Changi, compared with just under 8 per cent each for Jetstar and Air- Asia, the report said.

Yesterday, Tigerair Group attributed the growth in capacity to its own fleet expansion strategy, which will see a total of six A320 aircraft being delivered by year-end.

Earlier this month, the group increased its stake in Indonesia's PT Mandala Airlines from 33 per cent to 35.8 per cent for some $11.6 million.

CAPA's report last week noted: "Tigerair's forthcoming expansion will drive up the LCC penetration further, to about 32 per cent, but it comes with risks as Singapore's short-haul market could return to the over-capacity situation seen two years ago."

The number of destinations that Tigerair serves from Singapore will increase from 28 at the beginning of the year to more than 38 by year-end, Tigerair said.

"For Tigerair, it is not just about being the largest in our market. It is about leveraging our position to deliver on our promises to customers. Our recently completed brand refresh shows our commitment to do just that, and will help to propel us forward as an organisation with new vigour and zest, while not compromising on our service standards," said Koay Peng Yen, CEO of Tigerair.

Last week, the Tigerair mobile app which was launched in October last year exceeded one million downloads across the across iPhone, Android, iPad and mobile Web platforms, the group said.

"The mobile app is one value-added product that we have successfully rolled out. We have seen a steady growth in customer bookings via our mobile app, and will continue to introduce new user experienceenhancing features in the coming months," said Alexander Knigge, chief commercial officer of Tigerair

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Fly to Hong Kong with budget airline Scoot


Fans of the very famous, newly opened Tim Ho Wan in Singapore can now travel to the restaurant's hometown of Hong Kong to dig into some authentic dim sum with Scoot's new low cost flights.

Scoot has just announced the launch of budget flights from Singapore to Hong Kong for those who plan to fly to that bustling city for cheap food and cool shopping.

Services will start at five times per week, and then will be ramped up to daily flights in December during the peak travel period, so you won't have to fight to fly to Hong Kong - there will be space for everyone. Scoot's Hong Kong flights start from November 15, 2013.

For more information about Scoot and the launch fares, go to www.flyscoot.com. Follow Scoot on Facebook at www.facebook.com/flyscoot to get advance notice on special fares and promotions.

SOURCE


Wednesday, September 25, 2013

VietJetAir orders 62 Airbus A320 jets, takes options on 30


VietJetAir signed on Wednesday a letter of intent with Airbus to purchase 62 A320 medium-haul aircraft worth US$6.1 billion (4.5 billion euros) at list prices as the low-cost carrier starts expanding beyond Vietnam.

The memorandum of understanding was signed by the managing director of the Vietnamese airline, Luu Duc Khanh, during a ceremony in Paris attended by the French and Vietnamese prime ministers.

Khanh told the press that the first airplane would be delivered next year, and the last one by 2022. "That is nearly ten aircraft a year", he pointed out.

The airline just took delivery of a ninth leased A320.

The order is for 14 of the current single-aisle A320 model and 42 of the new A320Neo due to enter into service in 2015, which promises airlines considerably better fuel efficiency.

Another six planes will be the longer A321 version, which can be configured with up to 220 seats.

VietJetAir will lease eight more A320 from third party lessors and the deal includes options for another 30 aircraft, both companies said in a joint statement.

Airbus's executive vice-president for Asia, Jean-Francois Laval, said the whole deal was worth US$9.1 billion at list prices.

VietJetAir began operating in late 2011 and is the first private airline in Vietnam to operate domestic and international flights. It currently serves 11 cities in Vietnam plus the Thai capital Bangkok.

Singapore-based aviation analyst Brendan Sobie said the airline already has a fifth of the Vietnamese market and should attain a quarter by the end of this year.

"They have established a good foothold on the Vietnamese market, it's time for them to expand internationally," Sobie, chief analyst at CAPA Centre for Aviation, told AFP.

VietJetAir's Khanh said his company would open a new route to South Korea by the end of the year, and was looking at expanding to northern Asian destinations like Japan and Taiwan.

"We want to be the first low-cost carrier to fly to those countries," he said.

Taiwan is the richest foreign investor in Vietnam, and there are currently 200,000 Taiwanese businessmen living in Vietnam and 100,000 Vietnamese wives living in Taiwan, said Khanh.

Sobie noted, however, that VietJetAir is now the fifth airline to enter the low-cost segment in South East Asia, behind Malaysia's Air Asia, Lion Air of Indonesia, Singapore's Tiger Airways and JetStar of Australia.

"They're going to have to do some work to build up the brand," he said.

SOURCE


Three Chinese airlines order 68 A320 jets: Airbus


Three Chinese companies have ordered a total of 68 A320 aircraft, Airbus announced on Wednesday as air travel takes off in the world's most populous country.

The aircraft-leasing firm BOC Aviation ordered 25 planes, Qingdao Airlines requested 23 planes and Zhejiang Loong Airlines sought 20, the European planemaker said in statements on the sidelines of an air show in Beijing.

Air travel is rising steadily in Asia and other emerging markets, with passenger trips in China reaching 320 million in 2012, up nine percent from the year before.

The orders marked a "vote of confidence in the long-term appeal of our popular A320 family", John Leahy, the chief operating officer for customers, said in a statement.

BOC Aviation's order includes 12 A320neos, which are designed to cut emissions and fuel consumption, while Qingdao Airlines' includes 18 and Zhejiang Loong Airlines' has nine.

The two latter carriers are both start-up airlines. Qingdao Airlines will begin operations next year and take delivery of the first A320s in 2016, the statement said. Zhejiang Loong will begin business this year.

Singapore-based BOC Aviation is the aircraft-leasing arm of the major state-owned Bank of China. Airbus A320s make up a core part of its fleet, its website says.

A BOC spokeswoman in Singapore told AFP that the list price for the 25 planes it ordered is $2.6 billion.

The company ordered another 50 A320s in January, half of them from the "neo" series, with delivery to begin next year and continue through 2019.

The airline Air China also ordered 100 A320s in May, due to be handed over between 2014 and 2020.

Airbus has a factory in China that assembles A320-series planes.

The company predicted in its annual industry forecast on Tuesday that the Asia-Pacific would overtake Europe and North America in air traffic by 2032.

With overall growth rising 4.7 per cent a year, the world would need another 29,000 new commercial aircraft over the next two decades, it said.

By then two-thirds of people in emerging markets would take a flight each year, compared to one in five now, Leahy said.

SOURCE


AirAsia X now flies to Colombo, Male


Malaysians can now head to Colombo or Male via low-cost carrier AirAsia X.

The airline will begin the two new routes on Saturday and with four weekly flights, passengers will be able to fly from Kuala Lumpur into the Bandaranaike International Airport in Colombo, Sri Lanka, and the Ibrahim Nasir International Airport in Male, Maldives.

"What is unique about this new route is that, guests may opt to hop on our flights to Sri Lanka, or continue on to Maldives, or fly direct to Maldives and vice-versa from the Kuala Lumpur hub.

"With greater connectivity, more of our guests can experience the crystalline blue waters of Male and experience the natural beauty of lush greens in Colombo and its surrounding regions," said AirAsia X CEO Azran Osman-Rani in a statement yesterday.

He expressed confidence that the new routes would stimulate new travel demand and boost tourism and business potential for Malaysia and the two countries.

In conjunction with the launch, the long-haul carrier is offering fares from as low as RM219 on economy and RM959 on premium seats to Colombo, and from RM399 on economy and RM959 on premium seats to Male.

The booking period for the promotion began on Monday and ends on Sunday, while the travel period is between Saturday and March 29 next year.

SOURCE


Tuesday, September 24, 2013

Delta, Virgin win US antitrust immunity for tie-up


The US government on Monday granted Delta Air Lines and Virgin Atlantic Airways antitrust immunity for their proposed transatlantic joint venture, saying it would likely boost competition.

The Department of Transportation said it had approved the request from the two airlines for protection from prosecution over antitrust issues.

"We have concluded that, overall, the alliance and joint venture will be pro-competitive and are likely to generate substantial public benefits to the traveling public," DOT said in its order.

DOT said that it had received no objection to its tentative decision, announced August 30, to grant the antitrust immunity during the public comment period.

The joint venture will team Delta with British airline Virgin Atlantic on routes between North America and Britain.

In June, US and European Union antitrust authorities approved Delta Air Lines' proposed purchase of a 49 percent stake in Virgin Atlantic to build a joint transatlantic service, after determining the deal would not hurt competition.

But the airlines also had sought the Department of Transportation's grant of immunity from any possible antitrust action under US law against the venture.

In their filing to the DOT in April, Delta and Virgin Atlantic noted that nearly 60 percent of the slots at London Heathrow Airport are controlled by British Airways and its joint venture partners, including American Airlines.

Delta and Virgin Atlantic on Monday welcomed the DOT's decision, and unveiled a new schedule for the New York JFK-London Heathrow travel market offering a total of nine daily nonstop flights, beginning March 30.

"The DOT's ruling is confirmation of the clear consumer benefits of the partnership and will allow the airlines to deepen their cooperation, offering more flight choices for travelers on both sides of the Atlantic and in particular improving the travel options for business customers in the New York to London market," they said in a joint statement.

In December 2012 Delta announced it would buy Singapore Airlines' stake in Virgin Atlantic for $360 million, with the Virgin Group retaining its 51 percent share.

Delta and Virgin Atlantic, combined, plan to operate a total of 32 daily non-stop flights between North America and Britain.

Twenty-four of them will operate between London's Heathrow and US cities such as Washington, Los Angeles, San Francisco and Atlanta, Georgia, Delta's most important hub.

SOURCE


Monday, September 23, 2013

Tigerair strengthens position as Singapore's largest low cost carrier


TIGERAIR said its introduction of new capacity and destinations over the past year has enabled it to consolidate its position as Singapore largest low-cost carrier (LCC).

Citing the Centre for Aviation's latest LCC sector report last week, the Singapore-based airline said it accounts for over 33 per cent of total LCC capacity at Changi International Airport, well above the 26 per cent and 23 per cent capacity share of the next closest competitors.

By the end of the year, Tigerair Group, including Tigerair Mandala and Tigerair Philippines, will account for almost 11 per cent of total seat capacity at Changi, compared with its competitors, which will stand at under 8 per cent each, it noted.

The widening gap is driven by Tigerair's fleet expansion strategy, which will see a total of six A320 aircraft being delivered by the end of the year, it said.

SOURCE


Changi Airport handled 4.68m passengers in August, up 9.4% on-year


Singapore Changi Airport handled 4.68 million passengers in August 2013, an increase of 9.4 percent on-year. Changi Airport Group (CAG) said air traffic movements grew correspondingly, with 29,600 landings and take-offs during the month -- or 8.2 per cent more compared to a year ago.

In terms of airfreight, 151,000 tonnes of cargo were processed at Changi Airport last month, down 0.5 per cent year-on-year.

CAG said travel demand during the month was boosted by an extra long weekend that included both the Hari Raya Puasa and National Day public holidays in Singapore.

Travel to and from neighbouring countries such as Indonesia and Malaysia, which also celebrated the Hari Raya festival, also registered strong growth. There was a double-digit increase in traffic between Singapore and China, as well as Japan.

On a rolling year basis, CAG said passenger traffic grew to 53.0 million, up 6.6 per cent on-year, while aircraft movements grew to 336,100 -- up 5.2 per cent.

Airfreight movements were stable at 1.85 million tonnes for the 12-month period.

SOURCE


Saturday, September 21, 2013

Tata-SIA tie-up seen reaffirming India aviation potential


A new Indian airline planned by the giant Tata Group and Singapore Airlines reaffirms the nation's long-term potential as an aviation market, despite the sector's current financial turbulence, analysts say.

Tata Sons, the holding company of tea-to-software conglomerate Tata Group, and SIA said this week they were setting up a full-service airline after two failed joint bids to take to Indian skies.

"This investment affirms India's reputation as a lucrative aviation market in the long-run," Amber Dubey, aerospace head at global consultancy KPMG said.

The $100-billion Tata Group in 1932 pioneered air travel airline in India with Tata Airlines, later taken over by the government and rebranded Air India.

It will hold a majority 51-percent stake in the full-service carrier while SIA will hold 49 percent as they seek to exploit one of the fastest-growing aviation markets globally.

"The proposed airline has applied for Foreign Investment Promotion Board approval," a Tata spokesman said.

However, the joint venture needs a slew of other regulatory approvals and it could be another year before it starts flying, analysts say.

Also, while India's air passenger traffic has doubled over the last seven years, plans for the carrier come as the sector is flying through rough weather.

All but one of the five main airlines is loss-making even though an increasing number of India's population of 1.2 billion are flying.

India's airlines are contending with the region's costliest fuel, a falling currency, cut-throat fare rivalry and rundown infrastructure.

Still, SIA said it was investing in the carrier as "the Indian aviation industry is projected to experience future high growth rates".

KPMG's Dubey said, however, the new airline could prompt more consolidation in the Indian market, without naming carriers which could fall by the wayside.

"With growing competition, only four strong pan-India airlines may survive in two years," he said, adding, "Others may operate in small niche markets and collaborate with the pan-India players."

India's two full-service carriers, Jet Airways and Air India, are seen as being hit hardest by competition from the new airline, analysts said.

Budget airlines account for 70 percent of passenger traffic. India's other full-service airline, Kingfisher, controlled by liquor baron Vijay Mallya, has been idle since last year after running out of cash.

Still, with India's vastly under-penetrated air market, Sharat Dhall, who heads one of India's biggest online travel agencies, Yatra.com, called the new airline "a welcome development... the market has tremendous potential for growth".

Air travel penetration is just 0.04 air trips per capita a year, far behind developed countries such as the US with over two air trips per capita a year, according to government figures.

This marks the third foreign direct investment in the aviation sector since the government said last year foreign airlines could buy as much as 49 percent in local carriers.

The decision, overturning a 10-year ban, was part of a wider drive to draw more investment from abroad.

Earlier this year, the Tatas also announced a partnership with Malaysia's AirAsia for a low-cost carrier in India in which it will own 30 percent.

That airline, to be based in the southern Indian city of Chennai, is awaiting government final clearance to take off.

Now the Tatas will be attacking India's airline market from two sides -- full-service and budget.

Analysts suggested that the Tatas dancing with two partners may cause friction with AirAsia. SIA and AirAsia are keen regional rivals.

But Tata officials ruled out conflict-of-interest between its two airline operations, telling the Times of India the Malaysian carrier "was in the loop about the new venture".

The second foreign investment in the sector came In April when Abu Dhabi's Etihad said it would buy a 24 percent stake in Jet.

In the 1990s, SIA and Tata sought to start an airline but the plan got shelved by government policy changes. In 2000, Tata and SIA partnered again to buy 40 percent of Air India but that proposal collapsed.

"The wheel has come full circle now" for Tata and SIA, said Dubey.

SOURCE


Hollywood stunt pilot killed in China accident


A Hollywood stunt pilot and his Chinese translator were killed when their plane crashed in northeastern China during a practice flight ahead of a local air show, state media reported on Friday.

The body of David Riggs, a US acrobatic pilot, was recovered in a lake where his plane crashed on Tuesday during the trial flight, China's official Xinhua news agency reported.

His Chinese translator was pulled from the water but died later in hospital, Xinhua said.

The cause of the accident, which occurred close to Shenyang, the capital of China's northeastern Liaoning province, was not clear.

The aircraft was recently built and "too small to be equipped with a black box", Xinhua said.

Riggs was to take part in an air-show near Shenyang scheduled for Friday to Sunday, Xinhua said, adding that local aviation authorities were investigating the cause of the crash.

Riggs' recent credits include the 2011 film "Man vs Machine," and an appearance in a TV show called "Sport Science," according to the Internet Movie Database.

China has played host to an increasing number of air-shows in recent years, as economic growth has bought aviation within the reach of a greater number of people.

SOURCE


Pakistan pilot admits being drunk after UK plane arrest


Four airlines will move their operations to different terminals at Changi Airport to optimise capacity utilisation across the airport's terminals.

Asiana Airlines (OZ) will move from Terminal 2 to Terminal 3 from September 30, 2013, while Lion Air (JT) will make the move from Terminal 1 to Terminal 3 on October 18.

Meanwhile, two Filipino airlines - Philippine Airlines (PR) and PAL Express (2P) - will make the move to Terminal 1 from Terminal 2 on October 28.

With the relocation exercise, check-in rows within terminals will also be reassigned for a number of airlines at Changi Airport.

Mr Yeo Kia Thye, Changi Airport Group's (CAG) Senior Vice President for Airport Operations, said, "We review Changi Airport's terminal utilisation regularly as it is important to ensure that our infrastructure is best used to support the development plans of airlines and to ensure smooth airport operations for our passengers."

The exercise takes into consideration the growth plans of the airport's airline partners, and that infrastructure is in place to support the airlines' expansion.

During the transition period, directional signage will be in place to assist passengers, with information also posted on digital platforms to update them. Additional manpower will also be deployed to guide passengers to the correct terminaA Pakistan International Airlines (PIA) pilot pleaded guilty on Friday to being drunk just before he was due to fly to Pakistan, court officials and media said.

Irfan Faiz, 54, was more than four times the legal alcohol limit when he was arrested in the cockpit of a plane at Leeds Bradford airport in northern England, according to media reports of a court hearing.

An official at Leeds Magistrates Court confirmed to AFP that Faiz, a Pakistani national, had pleaded guilty at the hearing and his case was referred to a higher court for sentencing on October 18.

He was arrested shortly after 10:00 pm (2100 GMT) on Wednesday and charged with "carrying out an activity ancillary to an aviation function while impaired by drink", police said.

The court heard that Faiz had been unsteady on his feet before the flight and also smelled of alcohol, according to the BBC and local newspaper the Yorkshire Post.

A spokesman for PIA, Pakistan's national carrier, had told AFP on Thursday that if convicted, Faiz would be sacked.ls and check-in rows.

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Friday, September 20, 2013

Four airlines to move to different terminals at Changi Airport


Four airlines will move their operations to different terminals at Changi Airport to optimise capacity utilisation across the airport's terminals.

Asiana Airlines (OZ) will move from Terminal 2 to Terminal 3 from September 30, 2013, while Lion Air (JT) will make the move from Terminal 1 to Terminal 3 on October 18.

Meanwhile, two Filipino airlines - Philippine Airlines (PR) and PAL Express (2P) - will make the move to Terminal 1 from Terminal 2 on October 28.

With the relocation exercise, check-in rows within terminals will also be reassigned for a number of airlines at Changi Airport.

Mr Yeo Kia Thye, Changi Airport Group's (CAG) Senior Vice President for Airport Operations, said, "We review Changi Airport's terminal utilisation regularly as it is important to ensure that our infrastructure is best used to support the development plans of airlines and to ensure smooth airport operations for our passengers."

The exercise takes into consideration the growth plans of the airport's airline partners, and that infrastructure is in place to support the airlines' expansion.

During the transition period, directional signage will be in place to assist passengers, with information also posted on digital platforms to update them. Additional manpower will also be deployed to guide passengers to the correct terminals and check-in rows.

SOURCE


More miles with Cathay Pacific and Dragonair


Cathay Pacific Airways and Dragonair together with Asia Miles last Friday announced the availability of mileage accrual in more Economy fare classes on both airlines.

From Oct 8, passengers who travel in three Economy subclasses - namely, "S", "N" and "Q" classes - can earn Asia Miles at a rate of 25% of actual miles flown.

These new earning classes are in addition to the Economy fare classes that currently earn 100% of miles flown.

The new mileage accrual opportunity will make it quicker and easier for passengers to accumulate miles, opening up a world of reward tickets and a huge range of other redemption opportunities through the travel reward programme.

James Tong, General Manager Revenue Management, Cathay Pacific, said: "This is an exciting development that will make flying in Economy Class on Cathay Pacific an even more attractive proposition for our passengers."

Patrick Yeung, Chief Executive Officer, Dragonair, said: "Offering Asia Miles accrual in these three subclasses will complement the current suite of Economy Class fares that already earn miles at 100% of miles flown. We are happy to give more Dragonair passengers the opportunity to earn miles."

Stephen S Y Wong, Chief Executive Officer, Asia Miles, said: "We welcome this announcement by Cathay Pacific and Dragonair to provide more earning opportunities for our members."

"Asia Miles has 21 airline partners, and increasing the number of fare classes where Asia Miles can be earned means our memberscan earn and redeem miles quicker.

"This will help to reinforce Asia Miles' position as the travel reward programme of choice for our 5.3 million members worldwide.

"In addition to being able to earn miles in Economy Class, passengers on Cathay Pacific and Dragonair flights earn miles at a rate of 150%, 125% and 110% of actual miles flown when travelling in First Class, Business Class and Premium Economy Class, respectively."

SOURCE


New LA terminal opens


The new Tom Bradley International Terminal at Los Angeles' LAX Airport had a grand opening yesterday.

The US$1.9 billion (S$2.36 billion) terminal will create a new iconic feature for Los Angeles, with its architectural design, world-class dining and retail facilities and other passenger features.

The opening will conclude Phase I of construction, with nine of 18 new aircraft boarding gates built to accommodate larger, new-generation aircraft such as the Airbus 380 and Boeing 747-8.

Phase II of the project includes new boarding bridges and aircraft aprons, and upgraded federal customs and immigration inspection areas by early 2015.

SOURCE


Singapore Airlines, India's Tata to establish new carrier


Singapore Airlines and India's Tata conglomerate announced on Thursday they would set up a new full-service airline based in New Delhi.

Singapore Airlines (SIA) and Tata Sons have signed a memorandum of understanding and applied for government approval for the new carrier, a joint statement said.

Its establishment "will help further stimulate demand for air travel", it said, adding the plan would be subject to regulatory approvals including from India's foreign investment promotion board.

The new carrier "will be based in New Delhi and will operate under the full-service model", the statement said.

Tata Sons will own 51 per cent of the carrier and SIA 49 per cent.

"We have always been a strong believer in the growth potential of India's aviation sector and are excited about the opportunity to partner Tata Sons in contributing to the future expansion of the market," said SIA chief executive Goh Choon Phong.

"Tata Sons is one of the most established and respected names in India. With the recent liberalisation, the time is right to jointly bring consumers a fresh new option for full-service air travel."

Prasad Menon, chairman of the proposed new carrier, said Tata believes civil aviation in India has sustainable growth potential.

"We now have the opportunity to launch a world-class full-service airline in India."

A spokesman for SIA told AFP the new airline will begin with domestic services.

"We would like the airline to operate international services but that will depend on obtaining further regulatory approvals," the spokesman said.

Details of the new carrier's branding, management team and products and services will be announced later.

Mahantesh Sabarad, an analyst with Fortune Equity Brokers, told AFP in Bombay the Tata group had always wanted to be in aviation.

"Maybe their ambitions have been renewed after India relaxed investment norms for the aviation sector last year," the analyst said.

Sabarad said SIA "would be keen to be in India" due to its long-term growth potential.

The new airline would be the Tata group's second venture into India's aviation sector in recent months.

In March, Malaysia-based AirAsia won approval from India's foreign investment panel to set up an airline in a joint venture with the Tata group and entrepreneur Arun Bhatia's Telstra Tradeplace.

AirAsia will own 49 per cent, the Tata group 30 per cent and Telstra the balance of 21 per cent.

Speculation about foreign interest in Indian carriers has been brewing since the government in September last year said it would allow overseas airlines to take up to 49 per cent stakes in domestic operators, as part of a blitz of economic reforms.

The sector, once vaunted as a symbol of India's economic vibrancy, has seen its fortunes fade in the face of aggressive fare rivalry, a slowing economy, over-expansion, rundown infrastructure, high airport charges and expensive fuel.

Indian carriers need money to fund expansion and cut debt after years of losses caused by the fierce fare battles and rising fuel costs.

Only privately held low-cost carrier IndiGo was in profit in the year to March 2012, out of India's six main scheduled carriers.

Kingfisher Airlines, controlled by liquor baron Vijay Mallya and once the second-biggest carrier, remains grounded by a cash crunch.

SOURCE


Thursday, September 19, 2013

Boeing to end C-17 military aircraft programme in 2015


Boeing announced on Wednesday it would end production of its C-17 military transport aircraft in 2015, citing a difficult environment amid government spending cuts.

Boeing said it would close the C-17 final assembly plant in Long Beach, California in 2015, after completing the 22 aircraft remaining to be built.

Nearly 3,000 employees will lose their jobs, including those at the Long Beach plant and in three other states: Arizona, Georgia and Missouri.

The workforce reductions will begin in early 2014 and continue through the shutdown, the Chicago-based company said in a statement.

"Ending C-17 production was a very difficult but necessary decision," said Dennis Muilenburg, president and chief executive of Boeing Defence, Space & Security.

"Our customers around the world face very tough budget environments. While the desire for the C-17's capabilities is high, budgets cannot support additional purchases in the timing required to keep the production line open," he said.

Muilenburg noted that severe US government spending cuts, known as sequestration, had created significant planning difficulties for Boeing's customers and the entire aerospace industry.

"Such uncertainty forces difficult decisions like this C-17 line closure," he added.

The end of the Boeing airlifter programme was expected to have a ripple effect on jobs throughout most of the country, a further blow to the lacklustre economy where the unemployment rate is 7.3 percent and job growth is weak.

Boeing said the C-17 industrial team includes more than 650 suppliers in 44 states and, including Boeing, supports 20,000 jobs.

The C-17's main rival is the A400M, made by European aircraft manufacturer Airbus.

Boeing said it planned to take a charge of less than $100 million in the current quarter for the closure, but noted the decision would not affect its financial forecast for the year.

SOURCE


Air France raises number of job cuts to 2,800


Air France said on Wednesday it was aiming to cut around 2,800 jobs next year through voluntary departures as part of a wide-ranging restructuring drive that has already seen thousands leave the airline.

Air France had initially estimated reducing its workforce by 2,500 posts when it first announced the cuts in July, with French media speculating this week as many as 3,000 jobs could go.

The measure is part of a major restructuring drive called Transform 2015, which has already seen more than 5,600 employees take voluntary redundancy in the two years to June, taking staff down to 100,700 with wages frozen.

Air France chief executive Frederic Gagey said talks with unions on the voluntary redundancy plan would begin next month.

He also outlined greater reliance on external subcontractors and reinforcement of the company's lowcost Transavia unit, and accelerated retirement from its fleet of fuel-thirsty Boeing 747 widebody jets.

Gagey justified the new measures by the fact that the airline won't achieve "its objective of returning to balance" this year and "will record its sixth consecutive year of operating losses."

He added that "job losses are not an end in themselves, they are part of a strategy."

Air France-KLM posted a net loss of 793 million euros ($1.06 billion) for the first half of 2013, against wider losses of 1.27 billion euros in the first half of last year.

SOURCE


Wednesday, September 18, 2013

Boeing's larger 787-9 Dreamliner makes first flight


Boeing's 787-9 Dreamliner aircraft took to the skies on Tuesday in a maiden test flight, a larger version of the company's original 787-8 jetliner.

The 787-9 lifted off from Paine Field in Everett, Washington state at 11:02 am local time (1802 GMT). The test flight is expected to last between four and five hours.

The plane is the second member of the Dreamliner family of mid-size, long-haul aircraft, designed to use 20 percent less fuel than other airplanes of their size.

Compared with the 787-8, the 787-9 has a range that is about 600 kilometres longer, at a maximum of 15,750 kilometres.

It can carry 250-290 passengers, up from 210-250 passengers on the initial Dreamliner, which entered commercial service with All Nippon Airways in October 2011.

The 787-9 is expected to enter service in mid-2014 with launch customer Air New Zealand.

Scott Hamilton, an analyst based in Seattle, noted that Boeing long has introduced new models of existing aircraft.

"The first flight of the 787-9 ordinarily would be a little consequence," Hamilton said.

"But because of the painful birth of the lead variant, the 787-8, and its troubled early service life that included a three and a half month grounding, the 787-9 will have greater scrutiny to see if Boeing has the program troubles behind it."

The 787-8's development program ran three years behind schedule. All 787s in service in January were grounded worldwide over problems with overheated batteries. Since the grounding was lifted in late April, there have been a series of problems with customers' planes.

Boeing says the problems are typical for a new aircraft.

To date, Boeing has delivered 84 787-8s to 14 clients and has orders for 852. The Dreamliner's main rival is the A350 of European aircraft maker Airbus.

SOURCE


Tuesday, September 17, 2013

Soaring demand for pilots and technicians in Asia


THE demand for pilots and aircraft technicians in Asia is flying high and on course to be stronger than in any other region, says US plane-maker Boeing.

Carriers in the burgeoning China market and low-cost airlines such as AirAsia, Tigerair and Jetstar will fuel much of the demand.

Top-tier carriers such as Cathay Pacific and Singapore Airlines (SIA) will also grow over the next two decades.

In a briefing in Singapore yesterday, Boeing's sales director for training and services, Mr Bob Bellitto, said the region will need 192,300 new pilots and 215,300 technicians over the next 20 years - about 40 per cent of global demand.

SOURCE


Bombardier launches new jetliner


Bombardier's new CS100 medium range jetliner took to the skies on its maiden flight on Monday, marking the Canadian manufacturer's entry into airspace dominated by Airbus and Boeing.

Hundreds of employees and guests cheered as the 100-125 seat passenger jet departed from Mirabel airport in the northwest corner of Montreal for a test flight just before 10 a.m. local time (1400 GMT) under a bright blue sky.

"It's the largest aircraft ever conceived and assembled in Canada," Bombardier engineer Stephane Poitras told AFP. "We're witnessing history today."

For the first time, Bombardier will now be competing directly with the smallest airliners from aerospace giants Airbus and Boeing, a move which Poitras described as a "huge leap" for the company based in Montreal.

Bombardier has already secured 177 firm orders for the narrow-body twin-engine aircraft, which consumes 20 percent less fuel than its competitors, and is scheduled to start deliveries at the end of 2014.

Bombardier chief executive Pierre Beaudoin said he hopes to boost that sales figure to 300 over the coming months.

Bombardier, which previously focused on building regional jets and trains, spent $3.5 billion and 10 years to develop the CS100 and its slightly larger sibling, the CS300, which seats up to 160 passengers and is expected to launch in early 2014.

It first announced the venture in 2004 but shelved its plans two years later when demand for medium-range aircrafts plummeted, and then revived them in 2007 when the market started to rebound.

Sales of the CSeries aircraft should generate between $5 billion and $8 billion in annual revenues for the company, as demand for transcontinental jets is forecast to skyrocket, said Beaudoin.

"That's a huge increase for our company when you consider that our annual revenues average $20 billion," he said.

Indeed Bombardier is taking a huge gamble by going head-to-head with the European and American leaders in aerospace, in their most profitable space.

The CSeries jetliners will likely compete with the Boeing 737, Airbus A318 and A319, and Embraer 195.

But Boeing and Airbus appear unfazed by this new entrant, offering instead congratulations to Bombardier on its CS100's first flight. "Such 'firsts' are great for everyone who loves aviation," Airbus said in a Twitter message.

Just getting to this point has not been easy for Bombardier. The company had to push back its CS100 launch, originally set for the end of 2012, several times.

Beaudoin is confident that Bombardier can not only break in to the market for medium-range jetliners, but brazenly push its way into the pole position.

He said airlines are forecast to order approximately 7,000 jetliners capable of seating up to 150 passengers as they upgrade and expand their aging fleets over the next two decades.

Bombardier, he said, hopes to secure a whopping 3,500 of those orders.

Korean Air, Gulf Air, Air Baltic and Atlas Jet are among the first to place orders with Bombardier.

Many airlines are struggling with soaring fuel costs. Bombardier was able to cut fuel consumption by using composite materials instead of aluminium for the wings.

Nico Buchholz, vice president of Lufthansa, who was on hand for the test flight, commented that the CSeries aircraft's range and fuel efficiency are "nicely adapted for the European market."

For Robert Deluze, head of Canada's Porter Airlines, the CS100's quieter Pratt and Whitney engines are key to his airline's future expansion.

Porter currently flies twin turboprop aircraft out of the downtown Toronto island airport, but its plans to expand and use slightly larger aircraft with jet engines has riled nearby waterfront condo dwellers.

He needed to find a quieter jet that wouldn't bother the neighbours and, he said, the CS100 is "clearly a whisper jet."

SOURCE


Pump glitch hits Norwegian-operated Dreamliner


Low-cost carrier Norwegian Air Shuttle said on Monday it encountered a new problem with a Boeing 787 Dreamliner, forcing it to stop 70 passengers from boarding a transatlantic flight.

The incident, this time linked to a hydraulic pump on a plane flying from New York to Oslo, is the latest in a series of technical glitches besetting two Dreamliners recently acquired by the company.

"Due to a problem with the hydraulic pump, the New York-Oslo flight landed today (Monday) four and a half hours late," Charlotte Holmbergh Jacobsson, a spokeswoman for the carrier, told AFP.

"(The problem) also led to weight limitations. Seventy passengers were denied boarding and all their luggage was unloaded from the plane, which took off (Sunday) with 170 passengers," she said.

The passengers who were left behind in New York were put up in a hotel and were expected to be sent home in two groups, to Stockholm on Tuesday and to Oslo on Wednesday, she said.

Boeing technicians were working Monday to solve the technical problem, which also delayed by several hours the departure of a flight to Bangkok with the aircraft on the same day.

Norwegian has ordered a total of eight Boeing 787 Dreamliners, of which two have been delivered so far, with a delay.

Holmbergh Jacobsson said the company had not yet decided whether it would seek compensation from Boeing.

The Dreamliner has encountered several serious difficulties since entering operation, especially with its batteries, causing the entire fleet to be grounded for about four months earlier this year.

SOURCE


Monday, September 16, 2013

SIA's passenger load factor edges up to 82.4% in Aug


Singapore Airlines carried 1.7 million passengers in August.

This was 11.7 percent more passengers than in July.

The carrier's passenger load factor improved by 4.1 percentage points to 82.4 percent in August.

Load factors improved across all regions, thanks to strong leisure travel demand during the Hari Raya holidays.

The returning summer traffic also helped.

But SIA says the operating environment remains challenging.

And ongoing efforts to stimulate demand to boost loads will continue to put downward pressure on yields.

SOURCE


Five-Year-Old in China Latest Child "Pilot"


In the latest “record” attempt  involving very young pilots, a five-year-old boy from China has become the youngest person to fly an aircraft, according to reports from Chinese media this week. Many hundreds of parents of three-year-olds who have briefly let their child take the controls might differ on this point, though.

He Yide, who goes by the nickname Duoduo, remained airborne in an ultralight for a total of 35 minutes during a flight above Hebei province over the weekend. He was accompanied by an instructor, who “only helped a little,” according to the report. The flight, which covered a distance of 30 km, took place after the child completed 20 days of flying lessons.

Writing online about the event, the boy’s father, who has come to be known as “Eagle Dad” as a result of his stern parenting style, said, “His first flight was very successful, and he wasn’t scared at all.”

In 1996 a seven-year-old named Jessica Dubroff died in a crash along with her father and her flight instructor while she tried to become the youngest “pilot” to fly an airplane across the United States. The trip made Dubroff a short-lived celebrity as the national media covered the story extensively. Flying chose not to cover the Dubroff flight. We did report on the tragic aftermath, however, and continue to discourage in the strongest possible way age-related aviation record attempts. The FAI, the organization that oversees international records does not recognize any such attempts.

SOURCE


Bali's airport gets $343m major facelift


When delegates of the Asia-Pacific Economic Cooperation (Apec) forum arrive in Bali for their meetings next month, they will be ushered into a new-look airport with cavernous halls filled with Balinese paintings facing glass panels that let in more light than the old terminal.

Before they land, they may spot the wavy blue roof, representing the ocean, of the new international terminal and the tiered green roof, representing the island's famed padi fields, of the multi-storey carpark.

This is the result of a 3 trillion rupiah (S$343 million) revamp of the old airport, which had not been renovated for more than a decade.

"The main driver of this airport facelift is the extreme lack of capacity we are facing," Mr Yuristo Hardi Anggoro, spokesman for airport operator Angkasa Pura I (API), told The Straits Times.

The old airport served 14 million passengers last year, twice its stated capacity, but the rebuilt one can handle up to 25 million passengers annually.

It is equipped with speedier baggage checking facilities and contains a transit hotel with 224 rooms. The new terminal will welcome its first international passengers at the end of this month.

The upgrading of Bali's airport, the country's third-busiest, is part of the Ministry of Transportation's countrywide airport revitalisation programme that will see 45 airports replaced or revamped in the next decade.

The government will spend a total of US$53 billion (S$67 billion) to upgrade transport infrastructure, including airports, roads, ports and rail links.

Most Indonesian airports are running at overcapacity, following years of robust growth that has made the country's 240 million people more affluent and more able to afford flying - the most practical way of travelling across this archipelago of 17,000 islands.

Last year, 72.5 million domestic passengers flew over Indonesian skies, up from 60.2 million in 2011, said a Centre for Asia Pacific Aviation (Capa) report. This figure is double that in 2008.

But infrastructure has not kept pace with this thirst for flying, leading to a host of problems, from pilot shortage to overcrowding and long queues for airliners at airports which make delayed landings and take-offs common.

Jakarta's Soekarno-Hatta airport, ranked ninth-busiest globally last year, handled 56 million passengers that same year, nearly triple its present capacity of 22 million. An 11.7 trillion rupiah expansion project is under way to build more hangars, a fourth terminal and a third runway and to revamp existing terminals.

Medan's new sprawling airport was built in the outskirts of the city after the 85-year-old Polonia Airport strained to serve double the capacity it was designed for. Completed in July and linked to the city by rail, it can handle 8 million passengers yearly.

Bali's revamped airport will be connected directly to the tourist districts of Benoa, Nusa Dua and Kuta via a 13km toll road built over the sea to avoid traffic jams on normal roads.

However, observers have flagged potential problems in the revitalisation programme.

API's data shows the number of flights to Bali increased 9.7 per cent from 2011 to 2012 and passenger volume rose by 15.6 per cent at the same time.

Flight numbers are predicted to jump to 131,682 next year from 113,639 last year, and passenger volume from 14 million last year to nearly 17 million by the end of next year. That figure is expected to exceed 70 million by 2030.

Capa's chief analyst Brendan Sobie told The Straits Times: "Indonesia is well behind the growth curve. About three-quarters of the major airports are already operating above capacity.

"The projects that are on the drawing board need to be accelerated and in some cases expanded."

New and improved

The old Bali airport served 14 million passengers last year, twice its stated capacity. The revamped airport can handle up to 25 million passengers annually. It has faster baggage checking facilities and contains a 224-room transit hotel.

Jakarta's Soekarno-Hatta airport, ranked ninth-busiest globally last year, handled 56 million passengers that year, nearly triple its capacity of 22 million. An 11.7 trillion rupiah (S$1.3 billion) expansion project is under way.


SOURCE



Saturday, September 14, 2013

Hard for Chinese pilots to leave for better pay


CHINA'S air travel industry is soaring, thanks to rising incomes in the world's No. 2 economy, but the same cannot be said about many of its pilots working at state-owned carriers.

Strict employment rules and the threat of lawsuits prevent them from quitting the three state airlines - Air China, China Southern Airlines and China Eastern Airlines - in search of higher pay, better working hours or just a change of living environment.

Privately owned carriers such as Hainan Airlines, Spring Airlines and Juneyao Airlines are reportedly offering 30 to 40 per cent higher salaries to poach pilots from state airlines.

According to Chinese media, some airlines have held back on plane deliveries because they do not have enough pilots to fly the aircraft.

And some think the higher salaries paid to pilots could be passed on to consumers in the form of higher ticket prices. State airlines say training costs for a captain are between 3 million yuan (S$623,000) and 5 million yuan over a period of at least seven years.

"In a way, it is not unreasonable for state airlines to want to hang on to their pilots," said aviation expert Gao Yuanyang, noting that training of new pilots in China is mostly paid for by airlines, unlike in the United States where trainees foot their own costs.

State carrier pilots are on open-ended employment contracts, unlike pilots with fixed-term contracts at privately owned airlines.

This means that if they try to quit, state airlines can sue them for as much as 3 million yuan in compensation.

Even if pilots pay up, airlines can withhold the employment documents that they need to take up a new job, or bar them from joining rivals for a set period.

According to state media, there have been more than 1,000 lawsuits in China involving pilot resignations since 2005, even as the country rose to become the world's second-largest passenger-travel market behind the US.

In a rare show of open discontentment, some 530 pilots, mostly from state carriers, aired their grievances in a signed petition posted on the Twitter-like Weibo earlier this month.

About half of the petitioners are now unemployed due to lawsuits by former employers, said Captain Zhao Hong, a key mobiliser of the group known as China's Eagles A.

Capt Zhao, 43, is mired in a dispute with his previous employer, Air China. He said he paid 60,000 yuan to be let go but his ex-employer has yet to release his employment documents. He told The Straits Times he has spent at least 200,000 yuan in legal costs.

"It is tough, but I believe I have to persist so as to achieve a better future for all pilots and also to grow the industry," he said.

Because of the shortage of Chinese pilots, airlines have resorted to hiring foreigners, including Singaporeans.

More than half of the pilot openings on global aviation site Flightglobal were posted by Chinese airlines, with some offering captains as much as US$270,000 (S$343,000) in annual pay and benefits, double that in the US.

The number of foreign pilots at Chinese airlines has jumped from 50 in 2005 to 1,800 currently. There are more than 30,000 pilots in China.

The foreigners' higher salaries and better employment terms can be grating for their Chinese counterparts.

Chinese captains working at the Big Three earn around 600,000 yuan yearly, which is about half the 1.2 million yuan paid to foreigners, according to reports. Foreign pilots also get more annual leave and shorter working hours.

Professor Gao believes foreign pilots will continue to be sought after since China does not have the manpower and facilities to train its pilots quickly enough.

Each year, China produces some 2,000 new pilots, which is up from the 600 churned out in 2006 but short of the 3,200 needed yearly.

SOURCE


Pakistan to privatise national carrier


Pakistan's new prime minister plans to sell off a 26 per cent stake in ailing national carrier PIA and hand over management control in a bid to stem haemorrhaging losses.

Pakistan International Airlines (PIA) is one of the poorest performing state-run companies in the country and businessmen were quick to welcome the decision, announced late Thursday.

Prime Minister Nawaz Sharif, who has made repairing the weak economy his top priority, ordered PIA management to slash losses to make the company viable for sale.

The company has incurred heavy losses because of poor management, corruption and inefficiencies.

PIA officially lost US$320 million last year but the deficit would have been much larger if the state had not been pouring money into its coffers in a bid to keep it afloat.

The company has a staggering 18,000 employees for 42 planes, a ratio of more than 400 staff per aircraft, a PIA spokesman said.

"The government is fully committed to reforming and restructuring all ailing state enterprises, including PIA," Sharif said on Thursday.

Under the plan, 26 per cent of PIA's shares will be offered to potential buyers along with the transfer of management control.

The auction is expected to attract international players and could be a milestone for the country's privatisation plan, analysts and businessmen believe.

Pakistan sold its state-run telecom company in mid-2000 by transferring 26 per cent of its shares and management control. The government offloaded another 10 per cent of PTC shares later on.

Arif Habib, chairman of Arif Habib Group of Companies and on PIA's board of directors until last month, said that the airline could attract an international buyer.

"If an investor injects some capital it could be turned around in a short span of time," said Habib, who is a former president of the Karachi Stock Exchange and a business tycoon.

"It would be a good public-private partnership model," he said.

Nevertheless the final sale is likely to face strong opposition from rival political parties and from employees.

Farrah Marwat, head of research at JS Capital Markets, said good financial packages and retirement benefits could help to defuse the complaints.

"We have a big market of 180 million people and no other sizable company to cater them so it would be a good attraction for the buyers," Marwat said.

SOURCE


Wednesday, September 11, 2013

Why Changi Airport must think big


Changi Airport's mega vision for the future, including a jewel of a mall to connect five terminals, expresses well the "aerotropolis" concept of urban planning scholar John Kasarda who sees the airport as a destination in its own right.

He argues for future cities to be built around airports (given the pivotal role of air travel) rather than the reverse.

For Singapore, the two are intertwined as dictated by geography, size and destiny. So integral is this interdependence to the global city - the entire economy depends on connectivity to throb - that the Government has underscored the fact that it will do its utmost to protect Singapore's hub status.

This lends urgency to Changi's task of thinking big and planning well ahead. History bears testimony to this approach with over half of the airport's land area reclaimed from the sea.

Construction in 1975 had 558 buildings and 4,096 graves giving way and swamps being cleared to usher in an era of around-the-clock travel and freighting that global business networks demand.

Since then, the airport has expanded progressively and terminals have been upgraded to cater to growing volumes and higher expectations.

Even greater changes are required now as its status as a connector hub is threatened by long-range aircraft, wrenching competition and traffic growth trends.

Indeed, Kuala Lumpur and Bangkok have a geographic edge in linking travellers from Europe to Asia. Like Dubai (which convinced Qantas to pull its hub out of Singapore), they are keen to expand.

Hence, Singapore's position as a hub is far from "inevitable or unassailable", as analysts have noted. Mr Lee Kuan Yew pointedly warned in 2004 that "Changi will be bypassed and we will lose our air-hub status" if key strategies are misguided.

With such high stakes, half measures might prove woefully inadequate and even disastrous. Studies show that airports that lose their hub status do not easily regain it.

The latest master- plan for Changi involves creating a huge new air terminal, with possibly its own MRT station, building a third runway at Changi East fed by 40km of taxiways - the length of the Pan Island Expressway from Tuas to Tampines - and diverting Changi Coast Road and a 60m-wide canal.

The effort, cost and upheaval will be enormous but there are well-grounded reasons for supporting sky-high ambitions.

With plans for a Moshe Safdie- designed mall (with a five-storey waterfall amid a lush indoor garden), new hotels, dining spots and shopping choices, the airport will offer much to residents and travellers alike.

A locals-friendly airport could certainly help to create more buzz there. But ensuring a smooth flow of all forms of traffic must rank paramount.

SOURCE


Monday, September 9, 2013

14 hurt as plane skids off runway in Bangkok


A Thai Airways plane skidded off the runway in Bangkok after the nose wheel collapsed on landing, slightly injuring more than a dozen passengers, the airline said Monday.

The incident late on Sunday involved an Airbus 330-300 carrying 288 passengers and 14 crew members on a flight from Guangzhou, the carrier said.

The plane was seen resting on grass on Monday morning next to the runway with its evacuation slides still deployed and the Thai Airways name and logo hastily covered up.

"Sparks were noticed from the vicinity of the right landing gear near the engine; the matter is under investigation," the airline said in a statement.

"The captain took control of the aircraft until it came to a complete stop and passengers were evacuated from the aircraft emergency exits. The operation was conducted by the captain and cabin crew strictly according to emergency procedures."

About 14 people were slightly injured when they escaped down the emergency slides, Thai Airways president Sorajak Kasemsuvan told local television.

"They were sent to hospital but most of them received treatment and were discharged," he added.

The carrier said it would take about 24 hours to remove the aircraft, which could cause flight delays.

The incident comes just over a week after dozens of passengers and crew were injured when a Thai Airways A380 superjumbo hit severe turbulence during a flight from Bangkok to Hong Kong.

SOURCE


Norwegian reports new Dreamliner glitch


Low-cost carrier Norwegian Air Shuttle on Sunday announced a new technical problem with one of its Boeing 787 "Dreamliners", as the plane was grounded due to a flaw in its electrical system.

"We've had a problem since yesterday (Saturday) with a Dreamliner, linked to its electrical system," company spokesman Lasse Sandaker-Nielsen told AFP.

"The aircraft is not getting enough electricity."

The plane was scheduled to leave Oslo for Bangkok on Saturday, but after waiting for more than 24 hours, the passengers were transferred to Stockholm, where they boarded a chartered plane.

It is the second incident that Norwegian has had this week with its Dreamliner fleet - which currently consists of two planes.

Norwegian's other Dreamliner was stuck on the tarmac of Stockholm's Arlanda airport from Monday after a light suggested a problem with the brake system.

The plane was finally deemed fit to fly on Friday after technicians concluded the light had lit up by mistake.

"That kind of technical issue tends to happen with new planes," said Sandaker-Nielsen.

"If you think about Airbus A380, it also had all kinds of teething problems," he said, referring to the large European-built passenger airliner.

Norwegian has ordered altogether eight Boeing 787 Dreamliners, of which two have been delivered so far, with a delay.

The Dreamliner has encountered several serious difficulties since entering operation, especially with its batteries, causing the entire fleet to be grounded for about four months earlier this year.

These glitches do not appear to have seriously affected the fortunes of the American aircraft maker, which said on Friday it had received 89 new orders for the plane since the start of the year.

SOURCE


Friday, September 6, 2013

Additional Costs Part 1

A little update on current situation. My batch has be slated to depart for Australia in end-month for six months of flight school. We're now doing the final preparations like applying for student visa, medicals and other paper work.

It gets more exciting as the date gets nearer, but that also mean training will resume after I've been free for more than three months. It will probably take some time for me to regain the momentum. The free time was spent doing some freelance work to earn some money to feed myself, tutoring fellow course mates and keeping the body in shape. Bam, and three months just went by like this.

It has been almost a year since the course started in late October 2012, a journey that takes quite a fair bit of courage to embark on, at least financially. For the benefit of future cadets, I will keep a record of expenses and additional costs so that they can better gauge how much they have to prepare to enroll themselves in a self-funded pilot license course.

The current list so far will includes:-

1. Course Assessment - S$321
This amount varies with different flight schools, so give it an additional $100 just to be safe. This covers the aptitude tests and school interview.

2. Class 1&2 Initial Medical - S$535
You will need to prove that you're able to pass Class 1 medical as it is the requirement of the course.

3. CASA Class 2 Medical - S$204 (depending on exchange rate)
Medical needed by the Australia aviation authority for all pilot students.

4. Exam fees - S$399
This amount is highly variable as it depends on how many times and subjects you fail to pass. S$399 is what I've paid due to my failure in three subjects. A full examination will cost $2064, and this has changed since CAAS has updated the syllabus to JAA, which I heard costs a lot more. I will try to find out what's the updated exam fees.

5. Australia Student Visa - A$535 (S$605 based on 1.13 rate)
Getting a visa to stay in Australia as a student in the flight school.

6. Visa Medical - S$115
To attain the visa to Australia, you will need to go for a body check-up medical.

7. Documents notarization - S$100 (roughly $10 per document)
All personal documents and certificates will need to be notarized for the Australian authorities to view it as genuine and true.

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Above total: S$2279

On top of these, you cannot neglect the daily expenses throughout the course. The zero income situation definitely doesn't help but everyone chose this path with their eyes opened, so the need to plan carefully is very crucial. Take a very conservative amount of S$250 expenditure per month for food, traveling and minimal entertainment, it will add up to roughly 250*11 = S$2750 before I leave for Australia.

Before leaving for Australia, you will usually need to spend some money to buy some stuff for your usage over there. If it's winter season, the amount you spend buying thick clothing will not come cheap. I shall give it a rough estimate of S$500.

Next will be amount needed for yourself to survive in Australia. Housing and transport to&fro school is covered in the course fee, own expenditure will include food, transport and other necessities. A good amount for six months is probably around S$5000, thanks to the weak AUD forex of 1.13 at the moment. You will not be able to get a car, even though cars are way cheaper than Singapore. Set aside an additional A$4000 for the car alone, excluding variables like petrol, parking and maintenance. A good way to beat the cost is to share it with fellow course mates, and the A$4000 can be mostly recovered when you sell it before returning to Singapore, as depreciation is low.

How about the course fee you wonder. It very much depends on your method of financing it. If you're forking out the full cost from your own or whoever's pocket, you don't have much to worry. However if you're getting an education loan from the bank, that is where the scary parts come in. Depending on the bank you approach, interest rates can range from 5-6.5%, and it will start rolling once you start drawing the money to pay your fees. Actually, even before you start drawing funds from the loan, there is already a processing fee which you have to pay to the bank to get the loan done. Standard charge is 2% of approved amount. Let's say you are going for a full loan of S$200,000, 2% of it will be S$4000.

So on top of ALL the money I've stated above, there is still the loan interest to think/plan/worry/cry about. I was very lucky to be able to dig out the initial starting fee from my own pocket which is almost S$25k. If this was drawn from the loan right from the start, you will need to pay S$95/month of interest base on 5% rate. Multiply it with the total number of months of the course; 95*18 = S$1710.

The next course fee installment, before departure to Australia, is close to S$60k, interest(5%) per month is $235. Multiply it with the remaining months of the course; 235*12 = S$2820.

I shall stop here for now since I'm currently at this stage of the course. Upon your return after completion of flight school, there is still a remaining six months for your pockets to endure before you can start applying for a job. I'll leave that part for a later blogpost, the payments do not stop here. Sounds daunting isn't it? It is, unless you have a thick wallet.

Spare Cash needed so far: S$ 19,869 (Add up all the red bold amount above)

This is strictly a rough estimated value, it will fluctuate with variables like loan interest rates, foreign exchange rates, course fee rates, exam failure count etc etc. You must have enough buffer to handle any increment in any of the aspects.

Alright I think I've given you a lot to think about but hopefully not terrible enough to scare you away. It is a far-fetched dream, but not one which is not attainable. Many people save up through years of work to make this possible, it depends on how "desperate" you want this to work out.

Boots to fight the cold and terrain in Aussie

My tools during flight training

Luminous vest is a compulsory wear during flight training

Tutoring fellow course mate

Dreaded Perf A tutoring. Thank god all of them passed.

Protector of my precious eyes. An expensive but essential purchase.