SIA 18th in Fortune Magazine's list of most admired companies

Singapore Airlines (SIA) may be suffering from falling margins but it remains one of the world's most admired companies, according to Fortune Magazine.

SIA came in 18th in the magazine’s ranking of the World's Most Admired Companies, up from 31st a year ago.

It was the only Singapore company in the top 50 ranking, and the number two ranked carrier on the list after Southwest Airlines of the United States.

SIA earlier this month reported a 65 per cent fall in third quarter net profit from a year ago, hurt by one-off expenses incurred by units SIA Cargo and Tiger Airways.

The Singapore flag carrier's operating profit rose 15 per cent, but it warned of tough conditions in coming months "with airlines offering aggressive fares amid increasing capacity and fuel prices remaining high by historical standards".

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Qantas unable to justify 5,000 job losses: unions

Union leaders on Friday said Qantas boss Alan Joyce could not justify why he needs to cut 5,000 jobs during crisis talks as the carrier stepped up pressure on the government to help stem massive losses.

After a posting a A$235 million (US$210 million) loss in the six months to December 31, Joyce met union heavyweights to detail his decision to axe the jobs and freeze wages following complaints of no consultation and threats of strike action.

But Australian Council of Trade Unions secretary Dave Oliver said his explanation was not good enough.

"The company was not able to justify how they came up with the 5,000 jobs number," he told reporters.

Australian and International Pilots Association president Nathan Safe said "there's still a lot of uncertainty and a real lack of clarity".

Transport Workers Union national secretary Tony Sheldon added: "The company has come to the table without the capacity to say what they're actually up to and how this is going to save one single job in the future."

The heavily unionised Flying Kangaroo was crippled by a series of rolling staff strikes in 2011 that culminated in Joyce grounding the entire fleet for two days, stranding tens of thousands of passengers worldwide.

Qantas's drastic restructuring, which also involves deferring delivery of new aircraft, is part of a plan to save A$2 billion over the next three years as it battles record fuel costs and fierce competition from subsidised rivals.

Its major domestic competitor, Virgin Australia, is also suffering, posting its own first-half net loss of A$83.7 million on Friday, blaming its battle with Qantas for domestic market share and economic uncertainties.

Virgin chief John Borghetti urged the government to think carefully about the consequences if it helped bail out Qantas.

"Providing a financial facility to the detriment of the rest of the industry -- as I hope our government and opposition agree -- is wrong. Two wrongs don't make a right," he said.

"It is not our place to tell government what to do, but any government or opposition should think very carefully before it decides to pick winners in an industry."

Joyce wants the Qantas Sale Act, which limits foreign ownership in the airline to 49 per cent, changed so it can access more capital, while appealing for the government to guarantee the carrier's debt.

"Having a national airline is a national interest," said Joyce, who pointed to the carrier previously rescuing Australians in Egypt and Bali during times of turmoil.

"We are there at times of defence needs and there is a national interest for us."

While Canberra said it was open to pushing for changes to allow majority foreign ownership -- a move opposed by the Labor opposition and the Greens which can block it in the upper house Senate -- it appears to be backing away from a debt guarantee.

"Airlines are providing essential services but there is more than one airline, and what you do for one business, you have to be prepared to do for all like businesses," Prime Minister Tony Abbott said Friday.

"That's the issue that we face with the request for a debt guarantee or a line of credit for Qantas."

Joyce said Qantas only wanted "a fair go" on a level competitive playing field and that any debt guarantee would just be a standby facility to be used in an emergency.

"The best way to guarantee the security of Australian jobs is to have a profitable, fit Qantas that can compete in the current environment," he said.

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Virgin Australia posts big first-half loss

Australian budget carrier Virgin slumped to a first-half net loss of A$83.7 million (US$75 million) on Friday, blaming intense competition, subdued demand and economic uncertainties.

The results follow major domestic rival Qantas on Thursday announcing a A$235 million loss over the same six month period to December 31. To cope, Qantas will axe 5,000 jobs and defer aircraft deliveries.

There was no similar drastic action by Virgin Australia, the country's second-biggest airline, despite a significant hit to its bottom line after a A$23 million profit in the same period last year.

"The result reflects the tough trading conditions across the entire industry for the first half of financial year 2014," said chief executive John Borghetti.

"The Australian aviation market continues to be impacted by the significant capacity growth which occurred during the 2013 financial year, compounded by weak economic conditions and the inability to recover the cost of the carbon tax."

The airline said the country's controversial tax -- a levy on each tonne of carbon pollution -- added A$27 million to its costs.

Its underlying pre-tax loss -- the airline's preferred measure of financial performance -- was A$49.7 million.

Virgin, which is majority-owned by state-backed Singapore Airlines, Air New Zealand and Etihad, said that while revenue jumped 6.4 per cent to A$2.2 billion, costs increased 4.5 per cent.

The airline declined to provide any full-year guidance.

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Indonesia's Batik Air to launch international service

An airline owned by Indonesia's Lion Group announced on Thursday it will launch international services with a flight from Jakarta to Singapore later this year.

Batik Air, which is part of the Lion Group that also owns Indonesian budget carrier Lion Air, will start the flights by November or December, said its chief executive Achmad Luthfie.

The airline, which operates as a full-service carrier with meals and drinks and offers business and economy class seating, began operations in May last year servicing domestic destinations in Indonesia.

"Our first international destination will be Singapore and we aim to have more than a daily service on the route," Luthfie said in a statement.

"We chose Singapore as our first international destination because we can see that demand continues to increase," he added.

Speaking at a news conference in Singapore, Luthfie said Batik Air plans to fly next from the Indonesian capital to Kuala Lumpur in Malaysia.

Luthfie said that eventually it is looking to fly to Southern China and Western Australia.

On the domestic front, the airline plans to more than double its network to 22 destinations including Palembang, Solo and Batam.

Luthfie said the carrier is currently filling 90 percent of seats.

Batik Air operates six Boeing 737-900ER aircrafts and is based in Jakarta's Soekarno-Hatta airport.

Six Airbus A320 aircraft and four Boeing 737-800 planes will be delivered by the end of this year, the airline said.

Indonesia, a sprawling archipelago of over 17,000 islands cutting across three time zones, relies heavily on air transport and is experiencing a sharp growth in its aviation sector, thanks to a rapidly rising middle class.

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Qantas to axe 5,000 jobs, end Perth-S'pore route

Struggling Australian carrier Qantas on Thursday said it will axe 5,000 jobs, defer aircraft deliveries and suspend growth at Asian offshoot Jetstar in a major shake-up after deep first-half losses, warning of more pain to come.

The airline, battling record fuel costs and fierce competition from subsidised rivals, posted an interim net loss of A$235 million (US$210 million) in the six months to December 31 as it faces some of its toughest conditions ever.

Underlying loss before tax -- the airline's preferred measure of financial performance -- came in at A$252 million, a figure chief executive Alan Joyce called "unacceptable and unsustainable".

"Hard decisions will be necessary to overcome the challenges we face and build a stronger business," said Joyce, who will take a 36 per cent wage cut as the company works to slash costs by A$2 billion over three years.

Part of the restructure will see 5,000 full-time positions lost from the carrier's 32,000-strong workforce by 2017 with a wage freeze across the network until the airline returns to profit.

"I regret the need for these wide-ranging job losses, but we will do everything we can to make the process easier for employees who leave the business," Joyce said.

"At the end of this transformation, Qantas will remain an employer of more than 27,000 people, the vast majority based in Australia -- and we will be a better and more competitive company."

Australia's Labor opposition called it "the worst day for aviation people since the collapse of Ansett", referring to the former Australian airline that went under in 2001, while unions said workers were being punished for poor management.

"Qantas management has today outlined a demolition job, but failed to follow through with a strategy for how it will grow the business and serve the national interest," said Nathan Safe, president of the influential Australian and International Pilots Association.

The carrier flagged "significant changes" to its fleet plans and network and a reduction in capital expenditure of A$1 billion across the next two financial years.

This will see the selling or deferred delivery of 50 aircraft, including the eight remaining Airbus A380s it has on order.

"Tough decisions" ahead

Qantas will also axe its Perth to Singapore route and suspend new growth plans for Jetstar.

"When it comes to Jetstar in Asia, we need to take the right decisions in accord with current market circumstances and our balance sheet," said Joyce.

"In Singapore, growth has been suspended by the Jetstar Asia board until such time as conditions improve."

Following an interim profit warning in December, Moody's and S&P both downgraded Qantas' credit rating to "junk" status, increasing its financing costs and restricting access for investors who do not put their money in lower-rated companies.

Qantas has since been working to convince the government it deserves a debt guarantee, while lobbying Canberra to relax the Qantas Sale Act which limits foreign ownership in the airline to 49 per cent.

Joyce argues that the cap, which restricts access to capital, is hurting Qantas' ability to compete, particularly against domestic rival Virgin Australia -- majority-owned by state-backed Singapore Airlines, Air New Zealand and Etihad.

Australia's conservative government said this week it was drafting laws to allow Qantas to be majority foreign-controlled and for a single foreign shareholder to own more than 25 per cent.

But the legislation is unlikely to pass through the upper house Senate with Labor and the Greens opposing majority overseas ownership, while remaining open to an assistance package.

Joyce warned of more difficult decisions ahead.

"We must defer growth and cut back where we can, so that we can invest where we need to. We have already made tough decisions and nobody should doubt that there are more ahead," he said.

Qantas shares closed nine per cent lower at A$1.15.5.

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Air New Zealand posts record interim profit

Air New Zealand posted a record first-half net profit Thursday and predicted its full-year result will also scale new highs as the world economy picks up.

The flag carrier said net profit for the six months to December 31 was NZ$140 million ($116 million), up 40 per cent on the same period a year earlier.

Chief executive Christopher Luxon said the airline was reaping the benefits of cost cutting in recent years, including shedding about 700 jobs, which had increased its flexibility when dealing with a changing global environment.

"The journey ahead is shaping up as incredibly exciting, particularly given the positive economic outlook in many of our key revenue markets," he said.

"We are well placed to take advantage of this."

Normalised earnings before tax were up 29 per cent at NZ$180 million over the six-month period, and Air New Zealand said they were expected to hit a new record of NZ$300 million-plus for the full year.

Revenue slipped two percent to NZ$2.33 billion, with the company announcing an interim dividend of 4.5 cents a share, up 50 per cent on the same period a year earlier.

Air New Zealand shares were up 1.71 per cent in early trading on the New Zealand stock exchange, where the overall market was down 0.15 per cent.

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AirAsia reports drop in profit

AirAsia on Wednesday reported a sharp fall in fourth quarter net profit, as the flamboyant boss of Asia's largest budget carrier by capacity called for "creative" ways to slash costs amid stiff competition.

Net profit for the three months ended December fell 19 per cent from a year earlier to 245 million ringgit ($74.6 million), in large part due to Malaysian currency fluctuations, while revenue remained flat at 1.35 billion ringgit.

For the full year, profit fell 55 per cent to 364 million ringgit compared to a year earlier.

AirAsia's 2013 results follow a highly profitable 2012, when the carrier -- growing from a struggling two-plane operation, which Fernandes bought in 2001 -- recorded a 238 percent jump in net profit despite high fuel prices.

AirAsia boss Tony Fernandes said the carrier would continue to focus on slashing costs by selling older aircraft and reducing staff, among other measures.

"The company needs to continue to be creative in driving margins up," Fernandes said in a statement.

"We have deferred seven aircrafts in 2014 and 12 in 2015 to later years with intention to swap those aircraft with the new fuel efficient A320 neo," he said.

Operating profit for the fourth quarter declined two percent to 315 million ringgit due to higher aircraft maintenance costs and lower fares, AirAsia said.

Fierce rival Malaysia Airlines announced last week its fourth straight quarterly loss in the last three months of 2013, accumulating a whopping 1.17 billion ringgit loss for the full year.

The airline, which now has more than 120 A320s and is one of the biggest customers for the European aircraft maker Airbus, is expecting nearly 360 new aircraft to be delivered up to 2026.

It has also set up subsidiary budget carriers in Indonesia, the Philippines and Thailand and plans to launch a no-frills joint venture in India.

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Rolls-Royce unveils future plane engine designs

Rolls-Royce unveiled on Wednesday its next generation of fuel-efficient plane engines to power civilian aircraft of the future.

Two weeks after announcing a shock profit warning with government cutbacks on defence spending impacting its military engines business, Rolls revealed plans to build on its successful Trent XWB engine used to power Airbus A350 passenger planes.

"These new designs are the result of implementing our ongoing technology programmes," said Colin Smith, Rolls-Royce Director, Engineering and Technology.

"They are designed to deliver... even better fuel efficiency, reliability and environmental performance," he said in a statement delivered alongside a media presentation event in Derby, central England, where the Trent XWB is assembled.

Rolls said that Advance, the development name for one of its future engines, will burn at least 20 percent less fuel and CO2 emissions compared with the first generation of Trent engines that entered service in 1995. The Advance could be ready by the end of the decade, it added.

An even more fuel-efficient model, UltraFan, could be ready for service from 2025.

"Both engine designs are the result of the ongoing research and development investment, of approximately 1.0 billion pounds (US$1.7 billion, 1.2 billion euros) a year, which Rolls-Royce makes across its aerospace and non-aerospace businesses," the company added.

Rolls is the sole engine provider for the Airbus A350 XWB, a long-range, wide-body plane which is slated to come into service at the end of the year.

European plane maker Airbus Group announced on Wednesday a 22 percent year-on-year rise in net profit for 2013, despite one-off charges related to its new A350 wide-body aircraft.

Earlier this month, Rolls said that its profit and revenue would flatten in 2014, as government cutbacks on defence spending ends the company's decade of rampant growth.

News also of a 41-percent slump in annual profits had sent Rolls-Royce shares diving earlier in February.

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Airports gear up for increased air traffic with ASEAN Open Skies deal

Airlines and airports in the region are gearing up for increased air traffic when the ASEAN Open Skies agreement takes off next year.

While liberalisation could mean more competitive pressure on Singapore's status as an aviation hub, analysts said this will provide a boost to the country's maintenance, repair, and operations (MRO) cluster.

ASEAN airlines are estimated to take delivery of 3,000 new commercial aircraft by 2032.

This represents a market of around S$630 billion for aircraft equipment manufacturers.

Analysts said the growth in fleet capacity is partly driven by the impending ASEAN Open Skies policy, as airlines position themselves for new routes and increased air traffic.

And this is expected to benefit Singapore's MRO cluster.

Singapore currently accounts for more than a quarter of MRO output in Asia Pacific.

Mr Rajiv Biswas, Asia-Pacific chief economist at IHS, said: "Tremendous momentum is continuing in Singapore, as a hub for the aerospace industry. We've seen the announcement of a number of new manufacturing facilities in Singapore, and also the MRO-related operations in Singapore is also going to be growing very rapidly, because of the growth of the airline industry in Asia Pacific."

Over the next 20 years, almost half of the world's air traffic will be driven by travel to, from, and within the Asia Pacific region.

This means the number of airplanes in the Asian Pacific fleet will nearly triple.

The liberalisation of the aviation market will mean keener competition among regional airlines, in particular low-cost carriers such as Lion Air, Tigerair and AirAsia.

For consumers, this could translate to lower prices.

Analysts said it could also generate greater competition among Southeast Asian airports.

Mr Chris De Lavigne, Global Vice President of Industrial Practice at Frost & Sullivan, said: "Airports in the region have to build facilities, or upgrade their current facilities, to become world-class airports, to ensure a seamless and enjoyable experience for the passengers. So there's no doubt that capacity has got to be there, and secondly, these facilities have to be top-notch to ensure that they attract the passengers to go through them."

While governments, airport operators and airlines gear up for Open Skies - there remains divisions over some issues.

Indonesia, which accounts for almost half the population in ASEAN, appears resistant to fully opening its markets.

Some analysts say the single aviation market is unlikely to be realised in substance by 2015.

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Airbus Group sees profits jump in 2013

European aerospace giant Airbus Group on Wednesday announced a 22 percent year-on-year rise in net profit for 2013, despite one-off charges related to its new A350 wide-body aircraft.

Net profit was 1.5 billion euros ($2.06 billion) while earnings before interest, tax, depreciation and amortisation (EBIT) rose by 21 percent to 3.6 billion euros, it said in a statement.

Full-year revenue was up five percent to 59.3 billion euros, driven by increased aircraft deliveries.

For 2014 the group -- formerly known as EADS -- said it "expects moderate return on sales growth" and "confirms its 2015 return on sales target of 7-8 percent".

The final quarter of 2013 included a 434-million-euro charge "to reflect the higher level of costs on the A350 XWB programme", it said. The A350 XWB is a long-range, wide-body plane which is slated to come into service at the end of the year.

Airbus Group added that it planned to increase production of its popular A320 single-aisle planes from 42 to 46 per month from the second quarter of 2016.

Last month Airbus announced that it took a record 1,503 net orders in 2013, beating US rival Boeing which had 1,355 orders. But it trailed behind Boeing in terms of finished airliners delivered.

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Qantas may cut 5,000 jobs

Struggling Australian carrier Qantas on Tuesday said it was committed to slashing costs by Aus$2 billion (US$1.8 billion) but refused to confirm or deny a report that it will axe 5,000 jobs.

The airline has been battling record fuel costs and fierce competition from subsidised rivals and in December said 1,000 jobs would go while warning it faced a half-year loss of up to Aus$300 million.

Its interim result is due on Thursday and the Sydney Daily Telegraph, citing a Qantas source, said the job losses would be much worse as the airline restructures its finances to convince the government it deserves a debt guarantee.

As well as sacking 5,000 staff, the newspaper said Qantas may sell some of its terminals, while The Australian reported it would accelerate the retirement of older planes and defer new orders.

The airline refused to go into details.

"There is fresh speculation about what things we will or won't announce on Thursday as part of our half-year results. We are not in a position to comment on that speculation," the flag carrier said in a statement.

"We have said that we will be making some tough decisions in order to achieve $2 billion in cost savings over the next three years, which is a consequence of an unprecedented set of market conditions now facing Qantas."

Transport Workers Union national secretary Tony Sheldon said Qantas must come clean on its restructuring plans with staff on edge over potential mass sackings.

"Another day, another rumour of massive job cuts and the sale of planes and terminals," he said.

"Each baggage handler, check-in staff and ramp worker generates a $205,000 return to Qantas above the cost of their employment. Sacking them is like a tradesman selling his tools to pay a one-off bill."

Qantas has said it faces "immense" challenges and has been lobbying the government to ease limits in foreign investment or provide state intervention to help shore up its bottom line.

Canberra has made clear there will be no taxpayer handouts but has flagged support for a relaxation of the Qantas Sale Act, which limits foreign ownership in the airline to 49 percent, or a possible debt facility.

Qantas chief Alan Joyce argues that the cap is hurting Qantas's ability to compete by restricting access to capital, particularly against domestic rival Virgin Australia, which is majority-owned by state-backed Singapore Airlines, Air New Zealand and Etihad.

Transport Minister Warren Truss on Tuesday said the conservative government was drafting laws to allow Qantas to be majority foreign-controlled while allowing a single foreign shareholder to own more than 25 percent.

"The government is philosophically attracted to levelling the playing field," he said, although Labor and the Greens have vowed to block any legislation in the upper house Senate.

They are against allowing majority overseas ownership, but open to the government providing an assistance package.

Prime Minister Tony Abbott said the government accepted the carrier was having to compete with the "ball and chain" of the Qantas Act.

"But in the end Qantas do have to get their own house in order," he said.

Following the profit warning in December, Moody's and S&P both downgraded Qantas' credit rating to "junk" status, increasing the cost of financing for the carrier and restricting access for investors that do not put their money in lower-rated companies.

The carrier pledged to press ahead with cost cutting regardless of whether the government decides to help.

"We've said that we must take steps to reduce our costs regardless of whether the federal government acts on the uneven playing field in the Australian aviation market," it said in the statement.

Qantas shares closed 0.40 percent lower at Aus$1.23.5.

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Week 47: PPL Flight School Week 16

Tuesday

My day started very early with my flight scheduled at 0800hrs. For the first time since I'm here, I woke up before I could see the sun. The morning was cold with temperatures hovering around 15'C. I reported at 0700hrs only to find out the aircraft I was assigned to had a stone chip on its propeller the previous day and is in the maintenance garage.

After a visit to the garage, it was discovered that the engine had other issues other than a simple chip on the propeller and had to be left there for further diagnosis. My luck still haven't change for the better huh? So I went back to the airport and request for an aircraft change with slim hopes that one will be available. But to my surprise, there was actually one.

Thank god for the unused aircraft that my flight didn't get cancelled again. This flight was something very new to me, both in terms of lesson as well as instructor. He was a totally new instructor to me and I had to be extra careful with what I do so as not to leave a bad impression on him. Lesson for the day was instrument flying, which involved me wearing a hood while doing the basics of climb/descend, straight&level and turns. In addition, I will also have to recover from unusual attitudes.

I lifted off the tarmac at about 0840hrs after all the mayhem on the aircraft issue. Conditions were perfect to say the least. Zero turbulence, zero strong winds and zero worries. I was flying effortlessly in VFR. Then, I put on the hood and started my training on instrument flying. It wasn't easy flying with only instrument reference. I had to constantly monitor my engine rpm, IAS, wing balance, AoA, altitude and heading. My eyes had to do this "T-scan" on the G1000 screen to keep my flight in a proper manner. 

I was lucky to be blessed with such great weather conditions, or else I would have to constantly fight the controls to keep my instrument flying respectable. Straight&level was easy, turning at Rate-1 was fine, but climbing and descending can be challenging, especially when I had forgotten the correct procedure to end the climb/desc. For climb, it's Attitude-Power-Trim. For descend, it's Power-Attitude-Trim. I wasn't happy with myself for forgetting these two procedures. My instructor was forgiving and reminded me of them and I ensured these errors were not repeated.

Next came the recovery from unusual attitudes. I had to close my eyes while my instructor brought the plane to some unusual attitudes, asking me to recover it to straight&level with instrument reference when I'm instructed to open my eyes. This is not easy at all. The plane was either very nose high or nose low with angle of bank at 60degrees or more. Holy sheesh, the artificial horizon on my screen never looked so scary before. At times, I even had to recover the plane from the verge of stalling with the horn sounding.

I got a little dizzy after all these practice but was able to bring the plane back to base, removing the hood only when I was near to circuit area. Being under the hood for 1.1hrs, I got a little bit disoriented when I was back flying at VFR conditions. End up my circuit flying wasn't at its best. First try to landing was horrendous with a very poor base turn. Instructor had me do a go-around to show him a better one.

The second landing was  held up by traffic and I did another go-around, but the base turn still wasn't good enough. My third try was better, but I was still too high on finals and my instructor had to remind me to go on idle rpm. I managed to land the plane safely to me relief. To be honest, the instrument flying probably tired me out to have me perform so poorly in the circuit.

The whole lesson lasted 1.8hrs and I managed to meet the standards to pass. More revision on my own will be needed as I realised I had lost touch in area flying after being in the circuits for so long.

The rising sun greets me on the tarmac

Friday
The day was windy and cold with temperatures never hitting above 20'C. My flight was scheduled for 1430hrs, right in mid day but it was still very cold even with the sun shining. Once again, found a crack on the plastic cover of the navigation light. So I had to taxi the plane to the maintenance garage to get it checked. A hole was drilled at the end of the crack to prevent it from spreading.

After that was done, my real flight began. The winds were strong and gusty, but it was mostly headwind. However, headwind on runway means very strong crosswind on crosswind leg and base/final leg. The circuit was full of turbulence and had my plane thrown about so much that my instructor asking me if I was the one oscillating the aircraft.

Well, it was not a good feel right from the start. My reactions were slow, my altitude wasn't consistent and my speed on base/final wasn't very safe as well. It was so unlike me that my instructor said "What's wrong with you today?" three times to me during the whole course of the solo check.

I have no idea what hit me, but it was a crap performance. No complains from me when we eventually made a full stop and he didn't let me go solo. Yes I would like to blame it on the wind, but that's just an excuse. I promise myself to fly better in my next solo check.

Cleaning the windscreen, hoping it will be my final solo, but it was not to be. Try again next time!

The week ended with a bad flight, but I shall not let that dampen my mood. There's always a chance to do better in my next flight. Bad days do happen, the key is to learn from the bad flight and try not to repeat it. Spent the weekend in Melbourne with a visiting friend. Not a bad way to end the week. I really miss my friends back at home.

Lunch at St Kilda Beach

Brighton Beach

Melbourne was mad packed with people during the White Night event.

Chaos at Frankfurt airport as security staff strike

Passengers were advised on Friday not to bother turning up for flights at Frankfurt airport because of a one-day strike by security staff.

"We have asked passengers not to travel to the airport for now. As things currently stand, the legally required security checks cannot be carried out," a spokesman for airport operator Fraport told AFP.

The spokesman said that in total, 65 flights had officially been cancelled so far, out of a total 1,300 scheduled for the entire day.

The number of actual cancellations was comparatively small, because a large part of the traffic going through Frankfurt is transit or transfer traffic where passengers do not need to undergo security checks again.

However, even if flights are not officially cancelled, no other passengers turning up for them can board because no security checks are being carried out.

Germany's main airline, Lufthansa, said around two-thirds of its passengers were transit passengers.

"Flights aren't being cancelled to help keep operations up and running," a Lufthansa spokesman said.

Service industry union Verdi called on members employed by private security contractors to stay away from work between 0100 and 2200 GMT on Friday.

Verdi is fighting for an hourly wage rise to 16 euros ($22), calling an offer by employers of 10-13 euros "far too low".

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Overheating Dreamliner battery hit 660 Celsius

Japan said on Friday the battery in a Dreamliner jet that spewed white smoke last month could have reached temperatures as high as 660 Celsius (1,220 Fahrenheit).

The figure came in a report released by the transport ministry after Japan Airlines grounded one of its Dreamliner planes when the smoke was seen outside the cockpit window during maintenance at Tokyo's Narita airport.

It was the latest in a series of problems that have beset the aircraft, including a months-long global grounding over battery problems last year.

According to the report, one of the eight lithium-ion cells in the plane's battery system "swelled and electrolytic solution was sprayed" out of the battery, a ministry official said.

An image released by the ministry showed some blackened electrolyte solution coming from one of the safety valves.

"We estimate that temperatures inside the cell possibly reached 660 Celsius as the aluminium electrode melted," the official said.

It is still unknown what actually caused the overheating, the official said, adding that the ministry would continue investigating the case with the help of Boeing.

The US aviation giant admitted last April that despite months of testing, it did not know the root cause of the battery problems, but rolled out modifications it said would ensure the issue did not recur.

The measures comprised redesigning the battery and charger system, and adding a steel box to prevent burning.

Since then, Dreamliners have experienced a series of minor glitches, including a fault with an air pressure sensor and the brake system.

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12 injured by turbulence on Cathay Pacific flight

A dozen people were injured when a Cathay Pacific jumbo jet hit "rollercoaster" turbulence over northern Japan, local media reported on Wednesday.

The Boeing 747-400, carrying 321 passengers and 21 crew, was rocked by "sudden turbulence" when it flew over Hokkaido prefecture on Tuesday, the South China Morning Post reported.

Cathay Pacific confirmed to AFP that two crew members were injured along with a number of passengers, without confirming the newspaper's figure.

The flight from San Francisco to Hong Kong landed at the southern Chinese city's airport at 6.26pm local time to be greeted by a fleet of ambulances and emergency vehicles.

One of the injured was taken to hospital on a stretcher.

The turbulence was "more intense than riding a rollercoaster", a passenger was quoted by the newspaper as saying.

The airline said medical assistance was provided to the injured on board before the flight landed.

"Hong Kong Civil Aviation Department has been informed of the incident, and we are collaborating with the authority on the investigation," the spokesman said.

Cathay Pacific is Hong Kong's flagship airline.

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AirAsia boss lets rip at Malaysian Airlines, aviation authorities

Flamboyant AirAsia boss Tony Fernandes savaged state-backed flag carrier Malaysian Airlines (MAS) and the nation's aviation authorities on Wednesday, accusing them of mismanagement that was harming the travelling public.

The budget airline mogul posted the comments on his Twitter feed a day after fierce rival MAS announced it had lost a whopping 1.17 billion ringgit ($355 million) in 2013.

"AirAsia Allstars, take a bow. Malaysia Airlines lost over a billion," Fernandes tweeted.

"So much money wasted. If people were more efficient Malaysians would spend less on travel."

Fernandes bought ailing AirAsia in 2001, quickly turning it around with his no-frills, low-fare formula.

AirAsia has put severe pressure on inefficient MAS, which analysts say is hampered by poor management, bloated and demanding unions and government interference.

On Tuesday, MAS also reported its fourth straight quarterly loss and warned of a "challenging" year ahead.

The airline has bled money in recent years and announced a series of turnaround plans, but the poor earnings have continued.

"I wonder if it's fair that Malaysia Airlines can lose so much money and protect its market share. Can only do that with taxpayers money," Fernandes tweeted.

The outspoken Fernandes also took aim at Malaysian regulators, implying they were seeking to hinder MAS' competition.

"Imagine how many jobs AirAsia could have created if (there was) effective regulation. We have done amazing. Unbelievable. Despite all the roadblocks," he said.

The two airlines briefly buried the hatchet in 2011, when Fernandes agreed to a strategic tie-up aimed at helping to revive struggling MAS.

The deal was called off just months later, with Fernandes faulting "massive" MAS union resistance to reform and hinting at deep problems in the rival airline.

AirAsia is currently at odds with government-controlled airport operator Malaysian Airport Holdings Berhad (MAHB) over a two-year delay and cost overruns in the construction of a new budget terminal outside the capital Kuala Lumpur.

AirAsia is set to be the main presence at the facility. Its current opening date is May 2 but recent media reports have suggested it may yet be pushed back again.

Fernandes said MAHB "spends double what it could".

AirAsia, which has some of the lowest unit costs in the world, has raked in business awards and accolades over the years, while expanding aggressively.

AirAsia reported its net profit fell by $11 million in the third quarter of 2013, mostly on foreign-exchange movements. It will report full-year results at the end of February.

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Smoke scare on Etihad flight from Melbourne

Investigations were underway on Wednesday after smoke was detected in two toilets on an Etihad Airways flight from Melbourne to Abu Dhabi, forcing a diversion to Jakarta.

The carrier said the drama occurred on flight EY461 on Monday with the captain diverting to the Indonesian capital as a precaution.

The plane landed normally and after a security search of the aircraft, passengers and their carry-on luggage it took off again with the captain enforcing "strict controls over passenger movement in the cabin, particularly passenger access to the toilets".

Then, two hours before arrival in Abu Dhabi, the smoke alarms went off again.

"The smoke was detected and dealt with immediately by the crew," Etihad said.

"The captain decided to position crew members at each of the toilets which meant that normal cabin service was not possible.

"The food and beverage service was discontinued and the crew continued to monitor and secure toilet access for the remainder of the flight."

The airline said all passengers and crew were interviewed by authorities in Abu Dhabi with the investigation ongoing.

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Ethiopian co-pilot hijacks plane to seek Swiss asylum

The co-pilot of an Ethiopian Airlines plane hijacked his aircraft Monday and forced it to land in Geneva so he could seek asylum, igniting what one passenger described as "pure fear".

The Ethiopian locked himself in the cockpit when the captain went to the bathroom during flight ET-702 from Addis Ababa, which had been due to fly to Rome.

He was swiftly arrested in Geneva after scaling down a rope out of the cockpit window and prosecutors said the chances of his demands being met were slim.

"We thought the co-pilot had gone mad," Francesco Cuomo, a 25-year-old development economist who was on board, was quoted by Italian media as saying.

"The captain was threatening to open the cockpit door and tried to break it down without success. That's when we understood that something serious was going on.

"When we started circling over Geneva, there were moments of pure fear," he said.

After landing in Rome from Geneva, another passenger, Diego Gardelli, said the passengers did not realise they had been hijacked until the captain told them after landing. They thought there had been a technical problem.

"We thought we were going to plunge into the sea," he said, adding that passengers were also told to wear oxygen masks for half an hour during the flight.

"We feared the worst," said Elda, a 75-year-old passenger, adding that passengers were frisked one by one after coming off the plane "because they thought there could be accomplices".

In an audio recording on Italian media websites, a voice said to be the captain could be heard trying to reassure passengers once they were on the ground.

"The pilot is still locked inside the cockpit but he is not armed," the man was heard saying.

"He threatened to crash the plane. I don't know his motives and I'm not interested. All I'm interested in is the fact that you're safe," he said.

In a smartphone video, passengers could also be seen with their hands behind their heads as a police announcement is heard over the loudspeakers repeating: "This is a police operation. Do not move!"

Addis Ababa identified the hijacker as 31-year-old Hailemedehin Abera Tagegn, who had been working for the airline for five years.

It was unclear why he felt the need to seek asylum, but Geneva's chief prosecutor Olivier Jornot said his chances were "not very high."

Ethiopian Information Minister Redwan Hussein said that as far as it was known, Tagegn was "medically sane."

"We don't see any criminal record... and there was no reason for him to be prosecuted so there was no reason for him to flee," he added.

Tagegn risks a 20-year prison sentence.

A total of 202 passengers and crew were on board the Boeing 767 as the drama unfolded.

Head of operations at Geneva airport, Xavier Wohlschlag, told the ATS news agency the hijacker's request to land was initially denied.

The green light was not given until around 5:30 am (0430 GMT), as the plane, which was first escorted by Italian fighter jets and later reportedly by French ones, circled the region.

It emerged later on Monday that no Swiss fighter jets were scrambled as the hijack happened outside the business hours of the country's air force, which operate between 8:00 am and 5:00 pm.

The plane finally landed in Geneva at 6:02 am, about an hour and a half after it was due in Rome.

"He parked the plane on the taxiway, he cut the engines then opened the cockpit window, threw out a rope and used it to descend to the tarmac," Swiss police spokesman Eric Grandjean told AFP.

"He ran towards the police and immediately identified himself as the co-pilot and hijacker."

The runway was crowded with police and other emergency vehicles as passengers filed out with their arms up in the air or on their heads before boarding waiting buses.

Flights to and from Geneva were either diverted or cancelled during the drama, but operations later resumed, said airport chief executive Robert Deillon.

Up to 30 flights and 4,000 passengers flying during the busy ski season were estimated to be affected.

In all, 14 hijackings have occurred in Switzerland since 1969, when Arab militants seized an Israeli passenger plane at Zurich airport, fatally wounding a pilot.

One hijacker died in a subsequent assault by Israeli special forces and three others were arrested.

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Asian carriers lift Singapore Airshow deals to new high

Singapore Airshow organisers on Friday announced a record high of more than US$32 billion in deals as Asian carriers ordered more aircraft to meet explosive demand for cheap, short-range travel.

European manufacturer Airbus accounted for nearly half of the total, with almost US$15 billion worth of orders for its popular A320 single-aisle plane and flagship A380 superjumbo.

The total figure beats the previous record of US$31 billion set during the 2012 edition of the biennial event, and was more than triple the US$10 billion spent in 2010.

It is Asia's largest combined aviation and defence show, with more than 1,000 exhibitors from 47 countries participating.

Trade days ended Friday and the exhibition will be open to the public over the weekend.

- Growth driver -

Emerging Asian carriers were the stars of the airshow, forging deals that underscored the region's importance as the growth driver of global aviation.

Jimmy Lau, managing director of Experia Events which organised the airshow, predicted an "upward trend" for smaller aircraft plying domestic routes.

"The people who will be likely making good inroads are (firms such as) Embraer and Bombardier who will be selling their regional jets to countries like Indonesia, Thailand and Malaysia," Lau said during a press conference.

Airbus received its first order of the year for the double-decker A380, the world's biggest passenger plane, when British-based leasing firm Amedeo signed an US$8.3 billion deal for 20 of the aircraft.

The purchase agreement put Airbus on track to meet its target of 30 orders for the A380 in 2014.

Airbus had suffered some setbacks last year with the discovery of cracks on some of the giant jetliners' wings.

Airbus also won an order for 63 A320 jets worth US$6.4 billion from fledgling Vietnamese budget carrier VietJetAir.

Apart from the firm orders, the deal covered rights for VietJetAir to acquire or lease 38 more A320s, potentially boosting its current fleet of 11 tenfold.

Airbus also used the event to showcase the new generation A350-XWB wide-body aircraft to Asian buyers. It is on track to come into service at the end of the year.

US rival Boeing secured a commitment from Thai budget carrier Nok Air to buy 15 single-aisle B737s worth US$1.45 billion.

Myanmar's national carrier Myanma Airways signed a deal to lease 10 Boeing 737s that will ply international routes as the once-reclusive country opens up further to the outside world.

Brazilian manufacturer Embraer sprang a surprise when it announced a firm order for 50 of its E-Jets E2 aircraft worth US$2.94 billion from Indian carrier Air Costa, which began operations only in October last year.

The deal with Air Costa also includes purchase rights for 50 more of the aircraft, which can seat between 70 and 130 passengers.

Airline executives say many smaller cities in Asia remain underserved despite the rapid growth in budget air travel, and they will use the new planes to connect such destinations to metropolitan centres.

Economists said Asia's expanding middle class is driving demand following years of steady economic growth in the region.

The United States, which was this year's featured country and showcased both defence and commercial products,said it was satisfied with the results.

"The visitors here are serious about seeking American technology, quality -- and potential partners. These are the customers that change business for our exhibitors and the reason why so many American businesses of all sizes come to this show," said Tom Kallman, who managed the US pavilion at the event.

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Nepal police find plane wreckage, no survivors

Nepalese police Monday found the wreckage of a missing Nepal Airlines plane carrying 18 people in the country's mountainous west but there were no survivors, an aviation official said.

"The plane crashed into a hill, police have found its wreckage in a village, but no survivors," Bimlesh Lal Karna, chief air traffic controller at the country's largest airport in Kathmandu, told AFP.

The plane carrying 15 passengers including an infant and three crew lost contact with air traffic controllers shortly after taking off from the popular tourist town of Pokhara Sunday afternoon, airline officials and police said.

The aircraft from the state-run carrier was travelling to the town of Jumla, 353 kilometres (220 miles) west of Kathmandu, when air traffic controllers lost contact.

Heavy rain hampered Sunday's efforts to locate the plane with two helicopters forced to turn back because of bad weather.

Police finally spotted scattered pieces of the wreckage while conducting an aerial search of Arghakhanchi district, 226 kilometres west of the capital, aviation official Karna said.

One of the passengers is from Denmark, according to airline spokesman Ram Hari Sharma.

The rest of those on board -- including Manab Sejuwal, a local politician from the ruling Nepali Congress party -- are from Nepal.

The crash again raises concerns about the Himalayan nation's aviation sector, which has come under fire from international authorities after a series of fatal accidents.

The European Union in December banned all the country's airlines from flying to the EU.

Nepal, which counts tourism as a major contributor to its economy, has suffered a number of air crashes in recent years, which have usually been attributed to inexperienced pilots, poor management and inadequate maintenance.

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Week 46: PPL Flight School Week 15

Sunday
It was sad that I had to wait till the final day of the week to get back into the plane after I last flew last Friday, which was eight days ago. Two consecutive flights got cancelled due to two consecutive days of haze. My luck has been pretty rotten eh? When I wasn't planned for flight, the weather turns beautiful.

I eventually managed to get a successful flight on Sunday, which was my fifth solo circuit flight. I was assigned to an instructor which I only flew once before and he is also the Flight Safety Manager of the school. I've been hearing his reputation of putting safety as the utmost priority, so to be able to clear his solo check will not be an easy feat.

Flight time was scheduled at 1700hrs with the circuit being quite free of traffic. I made extra effort on the safety aspect to let him have a peace of mind. Haha, not that I'm usually dangerous, but with him I made more double checks to assure him. And up I went, back into the air after more than a week off it. The feeling was familiar right from the start especially with the strong headwind of above 20kts just like my last flight.

I made the corrections needed at different legs of the circuit due to crosswind, and my first landing was beautiful. Instructor was happy, so am I. Subsequent landings weren't as beautiful, but it was to standard and I was allowed to go solo after four rounds of circuit. Since I was the last user of the plane for the day, I was allowed to clock more solo hours and return before sunset.

It was a hot day with the sun shining into the cockpit in the absence of clouds. It gets very glaring especially when I was climbing into a setting sun. One of the landings I did while on solo was scary though. The aircraft wasn't stabilised well enough and had made quite a big bounce upon touching the tarmac. I added a wee bit of power during the bounce but was blown sideways and my wings went off-level. In that split second, I made a call to abort landing and did a go-around. After I was 200ft off the ground again, I was glad I made that decision. If I hadn't, I would have probably ended up on the grass. Phewwwww...

I lost count of the number of rounds I went, but I was in the circuit for almost two hours. Adding on to the solo check duration, I clocked a total of 2.7hrs, effectively my longest flight ever. It was tiring no doubt, but it was good training for me in terms of endurance as future flights will be 2-3hrs long after I'm finished with circuit flying.

I'm now left with my final solo circuit, requiring another 1.4hrs to finish clocking my full 6hrs of solo circuit. Lastly, I hope my luck with the weather turns for the better.

The car needed a new battery. Gotta spend money again.

Smaller players in the Chinese market

Valentine's Day dinner

Mass car wash in the backyard

Flew until the sun set

Passenger plane carrying 18 missing in Nepal

A Nepal Airlines plane carrying 15 passengers and three crew went missing on Sunday afternoon shortly after take-off from a popular tourist resort, police and an airline spokesman said.

"The Nepal Airlines plane with 14 passengers took off from Pokhara airport at 1.30pm and disappeared 15 minutes later," Nepal police spokesman Ganesh KC told AFP.

A total of 18 people were on board, the 14 adult passengers, plus one infant and three crew, an airline spokesman said.

"One of the passengers is from Denmark," spokesman Ram Hari Sharma told AFP. The rest of those on board are from Nepal.

The airline has alerted police to "find the plane's location" and are "preparing for rescue operations," Sharma said.

The state-run carrier was travelling from Pokhara to the town of Jumla, 353 kilometres (220 miles) west of the capital Kathmandu, when air traffic controllers lost contact with the pilot.

The incident highlights safety concerns about the Himalayan nation's aircraft.

Nepal, which counts tourism as a major contributor to its economy, has suffered a number of air crashes in recent years, which have usually been attributed to inexperienced pilots, poor management and maintenance.

A Chinese tourist and a local pilot were killed when an ultra-light aircraft crashed into a hill in the tourist town of Pokhara last October.

The European Union in December blacklisted all the country's airlines, citing their poor safety record, and banned them from flying to the EU.

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46 flights out of Singapore cancelled after volcano erupted

A volcanic eruption in Java, Indonesia has caused 46 flights out of Singapore to five Indonesian cities to be cancelled, as of 7.40pm Friday.

The cities are Semarang, Solo, Surabaya, Yogyakarta and Bandung.

The eruption has killed at least two people and forced mass evacuations, disrupting long-haul flights and closing international airports.

In a Facebook post, Singapore's Changi Airport advised passengers travelling to these cities to check with their respective airlines on their flight's status before going to the airport.

About 215 Singapore Airlines passengers were affected.

Responding to a media query, a SIA spokesperson said that two of its flights have been cancelled -- SQ930 from Singapore to Surabaya and SQ931 from Surabaya to Singapore.

SIA said customers have been rebooked on flights for Saturday and hotel accommodation has been extended to those affected.

The airline will waive administrative fees and penalties for refunds, re-booking, re-routing for customers holding confirmed tickets issued before 14 February 2014 for travel to and from Surabaya, Solo, Yogyakarta and Semarang from now to 18 February 2014.

Passengers are to note that flights to Solo, Yogyakarta and Semarang are operated by SilkAir. They are advised to speak to SilkAir for updates.

Separately an update on SilkAir's website said four flights have been cancelled - SilkAir flights MI 226/225 to Surabaya, MI 102/101 to Semarang, MI 152/151 to Yogyakarta and MI 196/195 to Bandung.

Affected passengers requiring assistance are advised to call SilkAir at +65 62238888.

Meanwhile AirAsia Indonesia has cancelled 16 flights and TigerAir 24.

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Three dead, flights disrupted as Indonesia volcano erupts

A spectacular volcanic eruption in Indonesia has killed three people and forced mass evacuations, disrupting long-haul flights and closing international airports on Friday.

Mount Kelud, considered one of the most dangerous volcanoes on the main island of Java, spewed red-hot ash and rocks high into the air late Thursday night just hours after its alert status was raised.

Villagers in eastern Java described the terror of volcanic materials raining down on their homes, while AFP correspondents at the scene saw residents covered in grey dust fleeing in cars and on motorbikes towards evacuation centres.

Sunar, a 60-year-old from a village eight kilometres (five miles) in Blitar district, said his home also collapsed after being hit with "rocks the size of fists".

"The whole place was shaking -- it was like we were on a ship in high seas. We fled and could see lava in the distance flowing into a river," said Sunar, who goes by one name.

A man and a woman, both elderly, were crushed to death after volcanic material that had blanketed rooftops caused their homes in the sub-district of Malang to cave in, National Disaster Mitigation Agency Spokesman Sutopo Purwo Nugroho said, while another elderly man died from inhaling the ash.

Dian Julihadi, 32, from Blitar district, said: "It was like fireworks. There was a loud bang and bright red lights shot up into the air."

Nugroho confirmed the materials were still raining down on villages within a radius of 15 kilometres from the volcano on Friday, but said that some activities were resuming "as normal".

Some 200,000 people were ordered to evacuate, though some families ignored the orders and others have returned home, with just over 75,000 now in temporary shelters, Nugroho said.

Several men who had earlier tried to return home to gather clothing and valuables -were forced back by the continuous downpour of volcanic materials.

"Too dangerous to fly"

The ash has blanketed eastern Javanese cities forcing seven airports to close, including those in Surabaya, Yogyakarta, Solo, Semarang and Bandung, which serve international flights, officials said, while grounded planes were seen covered in the dust.

"All flights to those airports have been cancelled, and other flights, including some between Australia and Indonesia, have been rerouted," Transport Ministry director general of aviation Herry Bakti said, adding it was "too dangerous to fly" near the plume.

In Singapore, Changi Airport advises passengers travelling to Semarang, Solo, Surabaya and Yogyakarta to check with their respective airlines on their flight's status before going to the airport.

Virgin Australia said in a statement it had cancelled all its flights to and from Phuket, Bali, Christmas Island and Cocos Island on Friday, adding that "the safety of our customers is the highest priority" and that the airline would keep monitoring conditions.

Australian nurse Susanne Webster, 38, was on a late-morning Virgin flight from Sydney to Bali that was turned around.

"About two hours in, the pilot announced over in Indonesia there was a volcano that erupted and that we were turning the plane back," she told AFP, adding they were still in Australian airspace at the time.

Australian airline Qantas postponed Friday flights between Jakarta and Sydney to Saturday, while Singapore Airlines and Cathay Pacific cancelled and postponed flights to Surabaya, a popular destination for golfing tourists.

AirAsia said 21 flights were affected in total, including three between Indonesian and Malaysia, adding several flights over Java were cancelled.

"The ashes could... compromise the safety and performance of the aircraft, such as (cause) permanent damage to the engine," AirAsia said in a statement, adding visibility was also a concern.

On the outskirts of Yogyakarta, authorities closed Borobudur -- the world's largest Buddhist temple, which attracts hundreds of tourists daily -- after it was rained upon with dust from the volcano about 200 kilometres to the east.

Hundreds of people at a temporary shelter in the village of Bladak, roughly 10 kilometres from the volcano's crater, began returning home slowly after spending the night on the floor wearing safety masks.

The Centre for Volcanology and Geological Hazard Mitigation said there was little chance of another eruption as powerful as Thursday night's, but tremors could still be felt Friday as communities began clearing piles of ash up to five centimetres high on roads.

The 1,731-metre (5,712-foot) Mount Kelud has claimed more than 15,000 lives since 1500, including around 10,000 deaths in a massive eruption in 1568.

It is one of 130 active volcanoes in Indonesia, which sits on the Pacific Ring of Fire, a belt of seismic activity running around the basin of the Pacific Ocean.

Earlier this month another volcano, Mount Sinabung on western Sumatra island unleashed an enormous eruption that left at least 16 dead and has been erupting almost daily since September.

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Japan airlines locked in fresh landing slot battle

Japan's two biggest airlines were locked in a fresh battle on Friday over landing slots at a Tokyo airport, with the civil aviation regulator playing referee between the warring carriers.

The spat erupted again as All Nippon Airways (ANA) lodged a complaint over rival Japan Airlines' (JAL) application to launch a new route to Ho Chi Minh City from downtown Haneda airport, the world's fourth-busiest hub.

The request came several months after Japan's transport ministry awarded twice as many Haneda landing slots to ANA, prompting threats of legal action from its key domestic rival which had earlier received a massive bankruptcy rescue from Tokyo.

On Friday, ANA president Shinichiro Ito said JAL's request was giving the airline a "great sense of crisis", and warned it was falling behind its bailed-out rival.

"We are concerned that the business environment would get further distorted," he told reporters in Tokyo Friday, adding that "we hope the Civil Aviation Bureau will make an appropriate decision".

ANA has tried to cut costs and boost productivity to keep up with its rival, Ito said.

"But there is no way we can catch up if this distorted business environment continues," he added.

A bureau official told AFP that a decision on JAL's bid would made be after considering "all aspects of ensuring that there is an environment of fair competition".

A JAL spokesman said the new route was aimed at rising demand from business passengers, but declined to comment on its rival's objections.

The two carriers are looking to boost their international routes -- and lucrative business clientele -- as they fight off competition from a fledging budget sector focused mainly on domestic flights.

ANA has routinely criticised once-bankrupt JAL's bailout, which saw it re-list its shares in Tokyo after a share offering that raised a whopping $8.5 billion, one of the biggest globally in 2012.

The carrier has posted strong earnings since its return to the market, placing it among the most profitable airlines in the world.

In October, the government said ANA would get 11 of 16 new international take-off and landing slots at the airport in Tokyo bay.

JAL, which had expected to share the slots evenly, got just five. The new route to the Vietnamese city was not part of the earlier allocation.

Haneda has better access to the Japanese capital's downtown than suburban Narita airport, which is a major international gateway.

Japan's transport ministry is aiming to boost international flights at both airports in anticipation of big influx of visitors for the 2020 Olympic Games in Tokyo.

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Australian PM says no hand-outs for struggling Qantas

Australian Prime Minister Tony Abbott on Friday said there will be no taxpayer hand-outs for struggling national carrier Qantas but flagged support for lifting foreign ownership restrictions on the airline.

Qantas has been lobbying the government to ease limits in foreign investment or provide state intervention to help shore up its bottom line as it battles record fuel costs and fierce competition from subsidised rivals.

Chief executive Alan Joyce has been in Canberra this week to push for a relaxation of the Qantas Sale Act, which limits foreign ownership to 49 per cent, or a possible debt guarantee.

Joyce argues that the cap is hurting Qantas's ability to compete by restricting its access to capital, particularly against domestic rival Virgin Australia, which is majority-owned by state-backed Singapore Airlines, Air New Zealand and Etihad.

Abbott admitted the law was a problem.

"Qantas have been shackled by legislative restrictions that were put in place by the Labor Party back in the 1990s and I think it would be perfectly appropriate to unshackle Qantas," he said.

"But I do have to say there is no free ride on the taxpayer for private companies."

Since coming to power last year, the conservative government has adopted a hard line on industry assistance, warning only last week that "the age of entitlement is over" when it comes to taxpayer-funded hand-outs.

It refused to offer any incentives to automakers Holden or Toyota, both of whom have now said they will stop making cars in Australia.

Abbott said: "It's not the job of the federal government or the prime minister or the would-be prime minister to rush down the street waving a blank cheque at businesses."

He added: "So, yes, let's have a level playing field for Qantas. Let's not have Qantas competing with Virgin and others with one hand tied behind its back."

As well as limiting foreign ownership in Qantas to 49 per cent, the act also prohibits any offshore entity controlling more than 25 per cent of the carrier.

In December, Qantas said it was facing some of its toughest-ever challenges as it flagged a half-year loss of up to AUD$300 million (US$269 million) and the axing of 1,000 jobs. The airline reports its interim first-half results later this month.

The Labor opposition is against allowing majority overseas ownership of Qantas, but is open to the government providing an assistance package.

Virgin has said it would be happy to see Qantas relieved of its ownership restrictions but disputes the need for government support.

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Bomb scare grounds Indian airliner in Malaysia

An Indian airliner made an emergency landing in Malaysia on Thursday over a bomb scare, but fear turned to puzzlement once authorities discovered the contents of a suspicious package: three gold bars.

The pilot of the IndiGo budget airline flight from Singapore to Chennai in India diverted to Malaysia early Thursday after a crew member found the package in the toilet.

A Malaysian fire and rescue team that inspected the package at Kuala Lumpur International Airport (KLIA) found it contained three bars weighing less than 1 kilogramme (2.2 pounds) combined.

They were believed to be gold but authorities did not confirm that.

After evacuating the more than 100 passengers, a search found nothing dangerous.

"It was not chemicals. It was bars of gold-coloured metal wrapped up in cloth," said Sani Harul, a fire official.

The airliner later resumed its flight to India. The case is being investigated.

"We questioned the crew, but not passengers, as the yellow-coloured items were found in the toilet, not in anyone's possession," police official Zaldino Zaludin said.

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Emerging Asian carriers make presence felt with plane deals

Emerging Asian carriers made their presence felt at a major airshow on Thursday with multibillion-dollar deals that underscored the region's importance as the growth driver of global aviation.

Four relatively small Asian carriers already had a combined order book of more than $11 billion halfway into the six-day Singapore Airshow, with smaller planes as their preference.

Airline executives said many smaller cities in Asia remain underserved despite the explosive growth in budget air travel, and they will use the new planes to connect such destinations to metropolitan centres.

Asia's expanding middle class is driving demand, said Song Seng Wun, regional economist with Malaysian bank CIMB.

"It's really a function of regional economies experiencing spending power of the rising middle class which benefited from so many years of steady growth," Song told AFP.

In the latest deal, Indian carrier Air Costa on Thursday ordered 50 E-Jets E2 aircraft, which can seat 70-130 passengers, from Brazilian manufacturer Embraer worth $2.94 billion.

The deal with Air Costa, which began operations only four months ago, also includes purchase rights for 50 more of the aircraft, both companies announced at the show.

With the orders, Air Costa will become the first customer of the E-Jet E2 in the Indian market when it takes delivery of the first plane in 2018.

Thai budget carrier Nok Air also on Thursday firmed up orders for two Q400 86-seater planes from Canada's Bombardier worth $63 million.

Nok Air indicated it may buy six more depending on its needs.

The Singapore Airshow began Tuesday with an order by Vietnamese budget carrier VietJetAir for 63 Airbus A320 jets worth $6.4 billion.

The deal also covered rights to acquire or lease 38 more A320s, potentially boosting VietJetAir's current fleet of 11 A320s tenfold.

The Vietnamese airline, founded only in 2011, plies domestic routes as well as services to Bangkok, Seoul and Kunming in China with its current fleet of leased planes.

In another deal, US aicraft maker Boeing on Wednesday announced that Nok Air had committed to buy 15 B737s worth $1.45 billion.

Bangkok Airways, which brands itself as a "boutique carrier" that flies to selected tourist destinations, on Wednesday also signed up to buy six 72-600s from European plane-maker ATR in a deal worth $150 million.

Air Costa executives said they would use the E-Jets E2 aircraft from Embraer to serve smaller Indian cities.

"Our focus has been the tier-two and tier-three cities in India," Air Costa chief financial officer Vivek Choudhary told a media briefing Thursday.

"Our philosophy is that we believe that 70 per cent of the population, of the huge 1.2 billion population in India, still reside in these non-metros," he added.

"Basically we are linking the metros to the smaller cities."

Choudhary said the carrier expects the air transport sector in India to grow dramatically in the next 15 to 20 years.

"The huge size of the middle class in India and the profitability levels that are going up adds to the demand in air travel," he added.

Nok Air chief executive Patee Sarasin said his airline was looking to expand into Myanmar following the opening up of the formerly army-ruled state.

"I think Myanmar has really stepped up," Patee told reporters after firming up the two jet orders with Bombardier.

"We think it's a beautiful country and we see a high potential that Myanmar will grow very fast," he said.

"I am sure within the next few years we are going to see Myanmar growing as fast as Vietnam."

Economist Song said such new markets were an "added bonus" as even without them demand for travel in Asia was robust.

"Frontier markets are an added bonus," he said. "Even without the likes of Myanmar, demand continues to grow."

Airbus, Boeing and Embraer -- in their 20-year forecasts for the industry -- all said the Asia Pacific is the key market to enter because of the burgeoning middle class.

Embraer's president and chief executive Paulo Cesar Silva said passenger traffic in the region "is mostly composed by secondary markets with low and medium demand densities of up to 300 passengers daily each way".

"Some 60 per cent of those markets are not served nonstop, and around half of all markets served do not allow for same day return travel," he said.

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Embraer gets US$2.94b order from India's Air Costa

Indian carrier Air Costa on Thursday ordered 50 E-Jets E2 aircraft from Brazilian manufacturer Embraer worth US$2.94 billion, both companies announced.

The deal with Air Costa also includes purchase rights for 50 more of the aircraft, they said at the Singapore Airshow.

With the orders, Air Costa will become the first customer of the E-Jet E2 in the Indian market when it takes the first delivery in 2018, Embraer, the world's third largest commercial aircraft manufacturer, said in a statement.

Air Costa executives said they would use the jets to fly routes in secondary and tertiary markets in India.

Air Costa is part of India's LEPL Group, a diversified company with interests in property and infrastructure development.

The airline started operations in October last year serving several second-tier Indian cities.

The E-Jets E2 aircraft family can seat between 70 and 130 passengers.

"Our focus has been the tier-two and tier-three cities in India," Air Costa chief financial officer Vivek Choudhary told a media briefing.

"Our philosophy is that we believe that 70 per cent of the population, of the huge 1.2 billion population in India, still reside in these non-metros," he added.

"And that is where we feel we need to add value and capitalise on the market... basically we are linking the metros to the smaller cities."

Choudhary said the carrier expected the air transport sector in India to grow at "approximately 15 per cent on a cumulative average for the next 15 to 20 years".

"The huge size of the middle class in India and the profitability levels that are going up adds to the demand in air travel," he added.

Air Costa chairman Ramesh Lingamaneni brushed off concerns that airport infrastructure in the second-tier Indian cities the carrier is targeting may not be up to scratch.

"There is no question on the infrastructure... They (the government) have given a lot of support."

The past two days of the airshow, which runs until Sunday, had been dominated by orders for aircraft from Europe's Airbus and its US rival Boeing.

On Wednesday, Airbus said it received its first order of the year for its flagship A380 superjumbo when leasing firm Amedeo signed an US$8.3 billion deal for 20 of the aircraft.

At the start of the airshow on Tuesday, fledgling carrier VietJetAir also ordered 63 Airbus A320 jets worth US$6.4 billion.

Boeing on Wednesday announced that Thai budget carrier Nok Air had committed to buy 15 B737s worth US$1.45 billion.

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Thailand's Nok Air to buy 15 B737s worth US$1.45b

Thai budget carrier Nok Air on Wednesday committed to buy 15 B737s from Boeing worth $1.45 billion.

The commitment, announced at the Singapore Airshow, is for eight next-generation 737-800s and seven 737 MAX 8s, Nok Air and Boeing said.

"This commitment is a major step in our growth strategy," Nok Air chief executive Patee Sarasin said in a statement.

"The 737 is the backbone of our fleet and will continue to be in the future."

Speaking at a news conference, Patee said that his airline would order more planes in the future but would take a more cautious approach compared to other low-cost carriers.

"There's going to be more aircraft coming in," he said.

"We have a lot of competitors who love to buy 200 or 300 aircraft," he said, citing Tony Fernandes, the chief executive of Malaysian budget carrier AirAsia.

"He bought so many aircraft, and currently he doesn't know where to fly to. Our strategy will not be the same as Tony Fernandes," he added.

"We actually plan our strategy in terms of destinations we fly to first, before we order our aircraft."

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