Budget airlines set for further consolidation, say analysts

 The budget carrier Tigerair Singapore has been refocusing its operations with recent exits from Indonesia and the Philippines.

Amid the challenging environment for low cost airlines, analysts believe that its decision to focus on Singapore is the right move.

Paul Yong, vice president of equity research at DBS Vickers, said: "Their strategy should be to turn around the Singapore operations, which in the past has been quite profitable for them but has been loss-making because of all the capacity they've added.

"I think over the longer term, they will turn around operations in Singapore. Over the last two months, the operating statistics is that the growth in demand has finally caught up with capacity growth."

Industry observers said closer cooperation with Scoot -- the long-haul budget carrier under Singapore Airlines -- could be on the cards for Tigerair.

Brendan Sobie, chief analyst at the Centre for Asia Pacific Aviation, said: "The ties between Scoot and Tiger are very critical for the SIA group, particularly for Scoot to be a larger and long-term viable long-haul low-cost carrier. You need the feed.

"It is also important for Singapore and Changi airport as a whole because they are now going through this period where traffic has stopped growing and opening up low-cost carriers' connections -- in particular Scoot and Tiger -- is the main growth vehicle for the future."

Scoot is expected to take delivery of 20 new Boeing 787 aircraft starting in November 2014.

Analysts believe that it is in a position to scale up in the future, potentially expanding services into North Asia and even Europe.

Overall, the outlook remains challenging for the budget airline industry as a whole. Almost 20 low cost carriers are currently operating in Southeast Asia and industry-watchers said they expect further consolidation as weaker players drop out.

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Mismanaged approach, complex cockpit cited in Asiana crash

A mismanaged approach for landing in a highly automated cockpit was the probable cause of last July's crash of a South Korean airliner in San Francisco, US investigators said on Tuesday.

Three young Chinese citizens died and 182 people suffered injuries when Asiana Flight 214 from Seoul clipped a sea wall with its landing gear, then crashed and burst into flames, in the first commercial airliner disaster in the United States since 2009.

"In this investigation, we have learned that pilots must understand and command automation, and not become over-reliant on it," said acting chairman Christopher Hart of the National Transportation Safety Board (NTSB).

"The pilot must always be the boss," added Hart, a licensed pilot himself, at the end of a day-long NTSB hearing that concluded the federal agency's probe into the July 6, 2013 disaster.

While the Boeing 777 was in the hands of "a seasoned flight crew with a good safety record, they misunderstood the automated systems at their command," Hart said.

The NTSB, which never explicitly assigns blame, refrained from explicitly accusing the Asiana crew of pilot error.

Instead, it cited a long and varied list of contributing factors, from the Boeing 777's automated throttle system to pilot fatigue and jet lag after an otherwise routine 10-1/2 hour trans-Pacific hop.

Investigators testified that captain Lee Kang-Kuk, a seasoned Airbus A320 pilot transitioning to the bigger Boeing 777, cut the autopilot on final approach into San Francisco, where the instrument landing system was out of service on an otherwise clear sunny day.

Doing so put the auto-throttle on hold, meaning it would no longer automatically control airspeed, explained investigator-in-chief Bill English.

When the jet dipped below the correct glide path, Lee reacted by pulling the nose up - but the auto-throttle, still on hold, failed to deliver an expected burst of engine power that would have enabled the airliner to make the runway.

"The Boeing 777 is one of the more sophisticated and automated aircraft in service," Hart said.

"But the more complex automation becomes, the more challenging it is to ensure that pilots adequately understand it," he added.

English said Asiana, established in 1988 as a rival to Korean Air, emphasized "maximum use of automation" by its pilots, including the use of autopilots at as low as 1,000 feet (330 meters) from the ground.

Without mentioning Lee by name, English said the captain lacked sufficient practice in hand-flying the airplane, without the help of instrumentation.

"Pilot skills degrade if not practiced," he noted.

Lee flew into San Francisco with an instructor in the co-pilot's seat, Lee Jung-Min, who himself was freshly certified to train new 777 pilots. A first officer was in a jump seat.

While finding issues in the cockpit, the NTSB hailed the fact that 99 percent of the passengers and crew survived - and that 98 percent "self-evacuated" from the burning wreckage.

Flight attendants had performed "admirably and bravely," said Hart, who stressed the role that seat belts played in saving so many lives.

Of the three fatalities, one was hit by an exit door, while the others - hurled out of the aircraft on impact - had been seen by other passengers not buckling their seat belts for landing.

One of those passengers was later struck by a fire truck as she awaited help beneath the left wing.

For the flying public, Hart said, the lesson is clear: "Pay attention to your cabin crew's instructions. Make sure you are buckled in."

Asiana meanwhile said the NTSB "has properly recognised the multiple factors that contributed to the accident, including the complexities of the auto-throttle and autopilot systems, which the agency found were inadequately described by Boeing in its training and operational manuals."

"We again express our great sorrow for the accident, the loss of life and the injuries sustained by the passengers and crew."

"The NTSB made four training recommendations to Asiana, all of which Asiana has already implemented," the airline added in its statement.

In a statement, Boeing "respectfully" disagreed with the NTSB's suggestion that the complexity of its automated cockpits was a factor in the first fatal accident ever involving its 777 model, in service for two decades.

It said its auto-flight system had been used successfully for more than 200 million flight hours across several airplane models, and for more than 55 million safe landings.

"The evidence collected during this investigation demonstrates that all of the airplane's systems performed as designed," Boeing said.

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Etihad rescues crippled Alitalia with deal to take 49%

Emirates airline Etihad Airways tied up a deal to rescue debt-laden carrier Alitalia on Wednesday by taking 49.0 percent of the Italian company.

The two groups gave no details of the value of the deal or of any conditions, but two key issues are huge debt and overstaffing at Alitalia which has lurched from crisis to crisis for years.

The deal, concluding tough negotiations which began at the end of last year, means that Etihad Airways is in effect rescuing Alitalia, playing a role which Air France once considered but then dropped because of the scale of the problems.

The agreement also marks a big step in the rise of Etihad Airways a young and rapidly growing company, which becomes a key shareholder in one of the old names of European aviation, and increases its reach into European markets and global routes.

Alitalia is now in the hands of private shareholders, but has its roots in the days when most European countries had their own state-owned airlines.

In recent years it has lurched from crisis to crisis, skirting bankruptcy, and beset by restructuring efforts and conflicts with staff.

The debt and staff cuts are believed to have been central sticking points in the negotiations.

Alitalia employs 12,800 and it is believed that about 2,200 jobs will have to be axed.

Etihad Airways has expanded rapidly in recent years, largely on a rise of air travel in the Gulf region of the Middle East.

In a joint statement, which provided no details, the two airlines said they had agreed the "terms and conditions of a proposed transaction whereby Etihad Airways will acquire a 49 percent equity stake in Alitalia."

They said they would tie up the deal as soon as possible subject to approval from regulators.

The chief executive at Alitalia, Gabriele del Torchio, said early in June that Alitalia would have to face a "complex, exhausting and painful" restructuring, but that there was "no alternative".

And he mentioned 2,200 job cuts.

Italian Transport Minister, Maurizio Lupi, in a warning on Monday to Italian trade unions which are strongly opposed to job cuts, said that Alitalia had but two options: "the plan for recovery with Etihad, or the abyss."

On June 11, Lupi mentioned that Etihad might make an initial investment of 560 million euros ($762 million). To this might be added "690 million euros in four years for the development and renewal of the fleet of aircraft."

The outlook with Etihad as a key shareholder is causing deep concern in northern Italy in case it reduces activity at Milan's Malpensa airport.

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Air India joins global aviation alliance

Air India has joined the Star Alliance network of global airlines seven years after its first attempt, the Indian government announced Tuesday, in a major boost for the loss-making state-run carrier.

Civil Aviation Minister Ashok Gajapathi Raju told reporters in New Delhi that Air India would increase its revenue by about five percent by entering the alliance which includes Lufthansa, Singapore Airlines and Air Canada.

"It is a new beginning for Air India and we wish they fly higher than they have already flown," said Raju, according to the PTI news agency.

The deal is expected to be formalised next month and will give Air India access to the 26-member alliance's network, which covers more than 1,300 destinations.

The Star Alliance of global airlines shares a fleet of more than 4,000 aircraft serving an estimated 640 million passengers annually with over 22,000 daily flights.

Negotiations started in 2007 but hit a roadblock three years ago when Air India failed to meet the minimum joining requirements.

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Vietnam suspends crew after jet lands at wrong airport

Vietnam's aviation authority has suspended the crew of a plane operated by budget airline VietJet Air after a flight bound for the tourist hub of Da Lat landed at another airport more than 100 kilometres away.

The scheduled flight VJ 8575 carrying 200 passengers landed at Cam Ranh airport near the coastal city of Nha Trang -- another popular tourist destination -- on Thursday night, instead of the Central Highlands town of Da Lat around 130 kilometres (80 miles) to the southwest.

The incident occurred "because of the flight coordinators and crew members of VietJet Air, who did not correctly follow flight procedures", said the Civil Aviation Authority of Vietnam (CAAV) in an online statement.

The body said it decided "to temporarily suspend the licences" of the crew as well as other staff involved while an investigation was under way. It did not specify how many employees of the airline or airports involved had been suspended.

The CAAV also said that "appropriate measures" towards the airline would be taken at a later stage.

Passengers on the misdirected plane were transferred to another VietJet Air flight later on Thursday.

VietJet Air was not immediately available for comment.

The low-cost carrier, Vietnam's first private airline which launched in 2011, currently serves 11 cities in Vietnam plus Bangkok and Singapore.

It has already cornered around 25 per cent of the domestic market -- taking customers from Vietnam Airlines and low-cost carrier Jetstar, according to state media.

The airline shot to prominence locally when it was fined for staging a racy in-flight bikini dance in 2012 to celebrate the launch of flights to Nha Trang.

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Changi Airport's passenger traffic up 2% in May

Changi Airport saw 4.37 million passenger movements in May, an increase of 2 per cent from a year ago, said Changi Airport Group (CAG) on Monday (June 23).

The growth in passenger traffic was supported by an increase in air travel between Singapore and North-East Asia, South Asia and South-West Pacific, offset by weaker performance on some South-East Asian routes, CAG said.

Among Changi’s top 10 markets, Hong Kong and Vietnam registered double-digit increases. Travel to and from Thailand continued to be affected by the political situation, decreasing by 17 per cent, with Bangkok and Phuket traffic dropping by 24 per cent and 7 per cent, respectively.

In terms of landings and take-offs, the 28,930 registered last month was a 1.7 per cent increase compared with May 2013. On the cargo front, 157,500 tonnes of airfreight were processed at Changi last month, a 3.5 per cent increase year-on-year.

From January to May, a total of 21.95 million passenger movements were recorded at Changi Airport, an increase of 1.8 per cent from the same period a year ago. Aircraft landings and take-offs grew by 3.6 per cent to 143,550, while cargo shipments increased by 0.8 per cent to 755,400 tonnes for the same period, CAG said.

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Tata-SIA joint venture to get licence to fly in July: Report

An air operators' permit (AOP) is expected to be issued to the Tata-Singapore Airlines (SIA) joint venture in July and commercial operations are likely to start in September, according to India’s Financial Express newspaper.

In a report on Friday, the Financial Express cited a company official who said the Directorate General of Civil Aviation's audit process is now in "its final stage". With the last leg of approvals in place, the airline will announce its brand name early in August, and take flight in September, it said.

"We expect to get the AOP by July, and the planes (Airbus A320s) will start coming from August. In the first year of operations, we will have five aircraft, increasing it to 20 over the first four years," the official was quoted as saying.

Tata Sons has a 51 per cent stake in the joint venture, with SIA owning the rest. Company CEO Phee Teik Yeoh and commercial chief Toh Giam Ming, were both drafted from SIA to lead the joint venture, according to the report.

The likelihood of the joint venture getting off the ground appeared to be in doubt earlier this month, when a lobby group representing Indian carriers - the Federation of Indian Airlines - asked the Delhi's high court to quash the approval of the Tata-SIA collaboration. The court reportedly sought advice from the fledgling government led by Prime Minister Narendra Modi.

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Scoot, Nok Airlines agree on structure of joint venture

Scoot and Nok Airlines are taking one key step forward in their plans to set up NokScoot, a low-cost carrier based in Bangkok.

Singapore Airlines said in a statement on Thursday that the two partners have agreed on the final structure of the joint-venture airline. This follows the memorandum of understanding with Nok Airlines which was signed in December 2013.

Scoot is a wholly-owned subsidiary of Singapore Airlines.

Scoot and Nok Air will ultimately each hold a 49-per cent shareholding of the joint venture company.

The final 2 per cent will be held by Pueannammitr Co, a company formed by the management of Nok Air.

The partners plan to set up the joint venture airline by way of acquiring an existing company, Pete Air Co, which holds an air operator's licence.

The joint venture company will be subsequently renamed NokScoot Airlines Co.

The partners have agreed to invest an initial aggregate amount of S$80 million in the joint venture.

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US man trapped in plane toilet on flight to Hong Kong

A 15-hour flight to Hong Kong proved a particular ordeal for one US passenger who accidentally trapped his middle finger in a toilet rubbish bin early Wednesday, police said.

Police said in a statement the 32-year-old suffered the accident on a Cathay Pacific flight.

The passenger on the flight from Newark became trapped more than one hour before landing when he threw away some garbage, the South China Morning Post reported.

He had to stand alone in the washroom during the landing after flying for over 14 hours, it said.

Police said the man was able to free his hand with the help of firefighters after the plane landed and did not need hospital treatment.

The airline refused to comment on the incident.

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SAS airline announces job cuts as losses double

Scandinavian airline SAS announced further job cuts after posting heavy losses in its second quarter as harsh competition pushed down ticket prices.

Between February and April, the beleaguered airline's net losses doubled to 806 million kronor (89.6 million euros, $121.5 million) as revenue dropped by 15 percent to 8.472 billion kronor.

"We are deeply disappointed with the results, which were substantially below our own expectations," chief executive Rickard Gustafson said in a statement.

He said the group would need to step up its cost-cutting programme launched in November 2012 to increase savings "in response to harsher market conditions".

Part of those savings would be made with the loss of 300 jobs in support, administration and management, mainly in Scandinavia.

During the second quarter, the group -- which employs 12,200 -- was hit by "intense competition and greater than expected price pressure in the Scandinavian air travel market", which reduced margins and increased uncertainty, according to Gustafson.

The group's recovery strategy has focused on making its operations more efficient, and has achieved a nine percent drop in unit costs since 2012, excluding fuel.

In early afternoon trading on the Stockholm bourse, SAS shares were down by 0.4 percent while the market gained 0.28 percent overall.

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Tigerair Mandala to cease operations from July 1

The Indonesian budget carrier Tigerair Mandala will cease operations from July 1, 2014 after its shareholders decided to stop funding the airline.

Tigerair Mandala has been struggling to make a profit. It booked six consecutive quarterly losses, with a loss of S$95 million for the first quarter of this year.

Tigerair Mandala is 35.8 per cent owned by Singapore's Tigerair. The other shareholders include Saratoga Group and PT Cardig International.

Tigerair and other shareholders have explored various options for the carrier in recent months but failed to get a buyer.

They concluded that the carrier would not be able to sustain its operations.

Group CEO of Tigerair, Lee Lik Hsin, said Indonesia remains an important market for the airline and it will continue to maintain an active presence there through Tigerair Singapore.

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MH370 search yet to target most likely crash site: Inmarsat

The search for Malaysian Airlines Flight MH370 is yet to target the most likely crash site after being distracted by what are now believed to be bogus signals, British company Inmarsat claimed Tuesday.

Inmarsat's scientists told the BBC's Horizon programme that they had calculated the plane's most likely flight path and a "hotspot" in the southern Indian Ocean in which it most likely came down.

The flight lost contact on March 8 en route from Kuala Lumpur to Beijing with total of 239 passengers and crew on board.

Hourly pings sent by the plane were received by Inmarsat's spacecraft, leading scientists to calculate its likely path.

Australian naval vessel Ocean Shield was dispatched to investigate, but before reaching the likely site it began to detect a signal that it believed was coming from the plane's black box, Inmarsat said.

Two months were spent searching 850 square kilometres (330 square miles) of sea bed northwest of Perth, but the source of the "pings" was not found and a submersible robot found no evidence of the airliner.

"It was by no means an unrealistic location but it was further to the northeast than our area of highest probability," Chris Ashton at Inmarsat told Horizon.

Experts from the satellite firm modelled the most likely flight path using the hourly pings and assuming a speed and heading consistent with the plane being flown by autopilot.

"We can identify a path that matches exactly with all those frequency measurements and with the timing measurements and lands on the final arc at a particular location, which then gives us a sort of a hotspot area on the final arc where we believe the most likely area is," explained Ashton.

Australia's Joint Agency Coordination Centre (JACC), established to manage the search, said the four acoustic "pings" picked up by the black box detector attached to Ocean Shield had to be pursued at the time.

"The four signals taken together constituted the most promising lead in the search for MH370 and it was a lead that needed to be pursued until completion so the search team could either discount or confirm the area as the final resting place of MH370," JACC said in a statement to AFP.

Australian officials agree that a linear arc produced using the satellite messages, or "handshakes", leading to the southern Indian Ocean likely represents the plane's flight path.

But the Australian Transport Safety Bureau said experts were still working to define the area to be scoured in the next phase of the search, which will plunge ocean depths of up to 6,000 feet.

"The search strategy group is continuing its analysis of satellite and aircraft performance data, along with a range of other information, to determine the area that offers the highest probability of finding the aircraft," a spokesman said.

"This is highly complex work that requires significant collaborative effort with international specialists. The revised search zone is expected to be available in the coming weeks."

Malaysia's civil aviation authority and Inmarsat last month released the raw satellite data after coming under criticism from relatives over the fruitless search.

However, its complexity has led to few independent conclusions being drawn about the likely crash site.

Malaysian Selamat Umar, whose son Mohamad Khairul Amri was on the ill-fated jetliner, questioned the motives behind the data release.

"I am not convinced at all by the data," he said. Why are they releasing it now? Before when we asked for it, they did not want to release it. What can we do with it now?" he said.

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MAS retires Boeing 737-400 from its fleet

Malaysia Airlines (MAS) retired the Boeing 737-400 passenger aircraft from its fleet Saturday night, 22 years after it entered the carrier's service in 1992.

The last 737-400 series flight touched down in Kuala Lumpur International Airport (KLIA) at 9.31pm Saturday, after taking off from the Bayan Lepas airport in Penang at 8.41pm.

It carried 85 passengers and was served by 10 cockpit and cabin crew.

Capt Wan Muzainal Wan Mahazir, 42, who piloted the aircraft, said he and his crew had fond memories of the 737-400.

"It has been a good, memorable 22-odd years that the 400 series has been servicing MAS.

"(We) still have vivid, fond memories from when we started our early days training on the 400 series, 20 years ago," he told reporters here.

He added that the 400 series would be replaced by the 737-800 series, of which there are 53 planes currently in service.

MAS chief executive Ahmad Jauhari Yahya said the 737-400 had an exemplary safety record.

"It's like the retiring of an old friend," he said, adding that MAS would be banking on the 800 series to ply the routes previously serviced by the 400 series.

Ahmad said the 800 series saves 15 per cent to 20 per cent more fuel compared to the 400 series, and could fly for five hours one-way.

Ahmad said MAS expected to see more deliveries of the 800 series this year and the next, with a total of 64 of the aircraft by year-end 2015.

MAS had eight of the 737-400 in service before they retired it.

The Boeing 737-400 entered MAS' service in May 1992, and at one point ran 54 of the aircraft, making the company the largest operator of the model outside the United States.

Commenting on the 100-day anniversary of the MH370 incident Sunday, Ahmad said the search was still underway and that efforts were ongoing, by all parties involved.

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Alitalia board gives green light to Etihad deal

The board of struggling Italian airline Alitalia has approved a tie-up proposal with the Emirati carrier Etihad Airways, a company statement said on Friday.

Alitalia chairman Roberto Colaninno and chief executive Gabriele Del Torchio are charged with negotiating details of the deal with the Abu Dhabi airline, said the statement issued after a marathon meeting.

Etihad has for months been negotiating to buy up to 49 per cent of the stricken Italian flag carrier, which is facing bankruptcy.

But talks have have stumbled over Alitalia's heavy debt load and forecast cuts to some 2,200 jobs, out of a total of 12,800, as part of the deal.

Officials in northern Italy have also raised concerns over the potential impact on Milan's Malpensa airport, which they fear could be seriously penalised by the deal.

Detailed talks on all those issues were set to continue despite Friday's green light.

Del Torchio, quoted by Italian news agency ANSA, said after Friday's talks that negotiations with banks on Alitalia's debt burden were "continuing in the right direction."

"It takes time, since it involves a large sum. But everyone clearly wants to reach a solution with Etihad."

On the jobs front, new talks between Alitalia management and unions were set for Monday, Italian media said.

Italian Transport Minister Maurizio Lupi warned earlier this week that negotiations would have to be wrapped up by mid-July on the tie-up with Etihad, which he said was prepared to invest up to 1.25 billion euros in Alitalia by 2018

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China Eastern to buy 80 Boeing 737s

US aerospace giant Boeing said on Friday that China Eastern Airlines has agreed to buy 80 737 aircraft, its biggest single-aisle purchase to date by a Chinese airline.

The deal, a mix of current 737s and the new 737 MAX model, is worth more than $8 billion deal at list prices, Boeing said. Airlines typically receive discounts on orders.

"We look forward to making history with China Eastern as they are poised to make the largest purchase for single-aisle airplanes by a Chinese airline," said Ihssane Mounir, vice president of Boeing's sales and marketing for Northeast Asia, said in the statement.

Boeing did not provide details on the breakdown of the plane models or delivery dates.

In May, Boeing's arch-rival, European aircraft maker Airbus, won an order from China Southern Airlines for 80 single-aisle A320s with a list value of $7.9 billion.

State-controlled China Eastern, headquartered in Shanghai, operates a fleet of more than 430 aircraft, including Boeing and Airbus jetliners.

In a filing with the Hong Kong stock exchange on Friday, China Eastern said it had agreed to buy 80 Boeing airplanes valued at $7.4 billion, citing Boeing's 2012 list prices.

The airline said it received "substantive price concessions" and as a result it was buying the aircraft significantly below the list price and at even more favourable terms than those under a 2012 deal with Boeing to buy 20 777-300ERs.

China Eastern also did not reveal the breakdown of the airplanes, saying only they were "mainly" the energy-efficient 737 MAX series.

The airline said it decided to buy the Boeing aircraft due to market demand and the company's strategy to build a route network with Shanghai as the core hub and Xi'an and Kunming as the regional hubs.

The Boeing airplanes are expected to be delivered in stages from 2016 to 2020, it said.

As part of the agreement, China Eastern said it would dispose of 20 ageing Boeing aircraft -- 15 737-300s and five 757s -- to the Chicago-based Boeing for an unspecified amount of cash.

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Changi Airport unveils S$100m scheme to combat passenger traffic decline

Changi Airport Group (CAG) announced on Thursday (June 12) a wide-ranging Growth and Assistance Incentive (GAIN) programme aimed at boosting passenger traffic and laying the foundation for more efficient operations at Changi Airport in the years ahead.

In a statement, CAG said it will commit S$100 million to the GAIN programme, which will be implemented over the coming year. For its airline partners, CAG will offer an across-the-board reduction in operating costs, including rebates of 50 per cent on aircraft parking fees and 15 per cent on aerobridge fees. This will be applicable from July 1, 2014, to June 30, 2015, it added.

It will also introduce a new package that rewards airlines for growing transfer traffic at Changi Airport, and encourage them to get on its FAST@Changi initiative that offers self-service options for departing passengers.

In order to stimulate traffic demand, CAG will invest in destination marketing campaigns to promote Singapore in major source markets like Australia, China, India, Indonesia and Russia.

“The incentives and support programmes beyond the coming year will be calibrated depending on how traffic patterns at Changi Airport and how the operating conditions of airlines in the region develop,” it added.

DECLINING PASSENGER TRAFFIC

CAG also acknowledged a decline in passenger traffic, saying it has seen year-on-year declines in February and March this year. It attributed market factors such as the rise of the Singapore dollar versus key travel markets such as India and Indonesia, and political uncertainty in Thailand, to the drop.

Reduced Chinese demand for travel to South-East Asia has also dampened passenger traffic to and from these key markets, it said.

CAG CEO Lee Seow Hiang said: “We are cognisant of the market conditions faced by (our airline partners). While we cannot iron out the volatilities of the industry cycle, we believe that GAIN will provide helpful temporary cost relief as airlines implement the necessary measures needed to adjust to the evolving market environment."

Mr Lee added the programme provides encouraging opportunities for its partners to explore new ideas and initiatives - whether to stimulate travel demand or to boost productivity - that will help position CAG "strongly for the next wave of growth".

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AirAsia finally soars in India

 AirAsia India finally took off as the fourth low-cost carrier in the country on Thursday with its maiden flight from Bangalore to India’s smallest state, Goa.

Tickets for the airline's maiden flight were sold out within 10 minutes of opening for sale on May 30.

This development in itself has sent shock waves through the highly-competitive sector in India.

The 49:30:21 joint venture between AirAsia, Tata Sons and Telestra Tradeplace offered a fare as low as 990 rupees (US$16.70) for the flight.

Its 25,000 promotion seats were also taken up within 48 hours.

"Our motto has always been to make everyone fly. We have already begun to show that we are true to our promise," said Chief Executive Officer Mittu Chandilya in acknowledging the brisk sale of tickets.

To keep pace with the airline, others in the fray such as SpiceJet and IndiGo have come up with their own promotional fares.

In announcing the launch of four new flights on its domestic routes, Indigo also proclaimed fares of one rupee (two US cents) on the Bangalore, Chennai and Goa routes, taking on the competition from AirAsia India’s five-rupee fare (excluding airport tax and other applicable fees).

The other low cost carrier in India is GoAir.

Mittu had said the airline’s fare will be 35 per cent cheaper than others in the market.

According to the Director General of Civil Aviation, among the domestic carriers, including the full-services ones, IndiGo dominates the local market with a 31.6 per cent share, followed by Jet Airways-JetLite combined at 21.8 per cent in April.

Air India has an 18.3 per cent share, SpiceJet 17.9 per cent and GoAir 9.5 per cent.

Although no one has got the inside of AirAsia India’s game plan, it is an open secret that it won't be flying into crowded sectors, at least for now.

AirAsia India has placed its interest in second- and third-tier cities.

About 50 per cent of the traffic is in Mumbai and New Delhi combined, AirAsia’s Group Chief Executive Officer Tony Fernandes said when the airline was launched.

There are plenty of markets to be developed, he added, highlighting that AirAsia India’s presence will bring new connectivity, more frequency and redistribution of air traffic.

Other airlines furiously lobbied against AirAsia's entry, even after it secured the Air Operator Permit (AOP) last month. It also faced a court case filed by a political party leader objecting to the clearance given to the airline to start operations.

In his no-holds-barred style, Fernandes had lashed out many times over how vested interest was bogging down the Indian aviation industry.

The Indian aviation industry has a $12.6 billion debt and suffered $8.6 billion in cumulative losses.

Fernandes said he had never experienced a situation where an entire industry tried to block his airline.

"Some airlines are scared of us. We must be doing something right," he tweeted recently.

"Help us people of India. Don’t let cartels win and not let (the) ordinary man fly."

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Emirates cancels order for 70 Airbus planes

Emirates airline delivered a huge blow to European aerospace group Airbus on Wednesday, cancelling an order for 70 new-generation A350 airliners -- a deal that analysts estimate to be worth about a tenth of the aircraft maker's 2014 orders.

The long-distance aircraft, due to go into service this year, is the Airbus flagship project of the moment to compete with the Boeing 787 which has been flying since 2011.

The size of the cancellation is the biggest-ever by a prestigious customer for a civil airliner.

Airbus said that the cancellation followed an order placed by Emirates at the Dubai air show in November for an extra 50 A380 superjumbo planes.

The cancellation decision was made following "on-going discussions with the airline in light of their fleet requirement review", Airbus said.

The deal was said to be worth US$16.5 billion (12 billion euros) when it was announced in 2007, but Airbus said that customers were already interested in taking up the cancelled aircraft.

The sudden announcement by Emirates, a powerful player in the expanding Gulf airline industry, sent Airbus Group shares down 5.5 per cent to 11.22 euros.

And in London, aero-engine maker Rolls-Royce warned that the decision would cut the value of its order book by 2.6 billion pounds (3.2 billion euros, US$4.3 billion).

The cancellation "amounts to eleven per cent of orders which Airbus expects to take in 2014," said analyst Christophe Menard at brokers KeplerChevreux.

The airliner business accounts for the main part of activities by Airbus Group, formerly EADS, and the head of its sales division John Leahy said: "It's not good news commercially but it has no impact financially."

Opening an innovation show by Airbus at its headquarters in Toulouse, Leahy, who has played a major role in the rise of Airbus over the years, said that he had time to find other customers for the cancelled planes which were due to be delivered from 2019.

He had only just heard of the cancellation, he said, so the decision was not a direct counter-balance to the order placed in Dubai.

"I am amazed that we already have enquiries, there is already a queue of people," he said.

In Dubai, Emirates also ordered 150 Boeing very-long-haul 777-8 and 777-9 airliners which are due to enter service from 2020. It also took an option on another 50 of this version.

Emirates was not available for comment on Wednesday.

Airlines had been making massive aircraft orders in anticipation of a pick-up in air traffic as advanced economies recover from a slump and with emerging economies expected to deliver a boost in demand.

The future Boeing 777 series and the Airbus A350 are competitors in what is known as the medium, twin-engined segment, the heart of the market, said analyst Scott Hamilton at Boeing's home base in Seattle in Washington State.

The decision affects nearly 10 per cent of the orders for the new Airbus long-haul aircraft which is going through the processes for obtain airworthiness certification.

Airbus added that it was still very confident in the A350 programme and said that it had orders from 28 airlines for 742 aircraft six months ahead of the plane entering service.

A notable feature of the plane is that the fuselage is made mainly of composite materials.

"The programme of test flights for the A350 is progressing well and is on schedule for certification (by the Aviation Authorities) in the coming months," said Airbus.

Emirates had ordered 50 A350-900 and 20 stretched A350-1000 aircraft in 2007, marking the second-biggest order by volume for the A350 plane after 80 ordered by Qatar Airways.

Singapore Airlines has also ordered 70 A350 planes.

Scott Hamilton said that the cancellation could leave a gap in the Emirates fleet which would give Boeing an opportunity to sell its 777-300R model which is available for delivery from 2017.

Emirates could decide to increase substantially its fleet of these Boeing planes rather than take up a new model.

Menard said that in all probability, Emirates had decided to streamline its fleet and focus on the Airbus A380 and the Boeing 777 series.

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Alitalia may lose 2,200 jobs in tie-up with Etihad

Struggling Italian airline Alitalia will have to shed 2,200 jobs as part of its planned tie-up with Etihad Airways, which has promised to invest 560 million euros ($760 million), the head of the Italian airline said on Monday.

Negotiations have been running for months for the Emirati airline to take a 49 per cent stake in Alitalia, which currently employs 12,800 people and is facing bankruptcy.

The Italian airline will have to go through a restructuring that is "complex, tiring and painful -- there is no alternative," said Gabriele del Torchio, Alitalia's chief executive, on the sidelines of a conference in Rome.

It had previously said as many as 2,500 jobs were on the line.

The airline's management hopes to finalise a deal on the company's debt by Friday.

Del Torchio said talks with banking creditors were "very advanced", and that they were demanding "a sacrifice".

"I think it will take only a few weeks to conclude the deals with Etihad," he said, adding that a successful deal would send "an important signal" about Italy to foreign investors.

AirFrance-KLM also owns a stake in Alitalia, but chose not to pursue taking over the Italian airline after it could not get similar guarantees on deep restructuring to make it profitable.

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So long, SIA: Why Singaporeans are ditching the national carrier

It's budget over comfort for most Singaporean fliers.

Singaporeans are spending more cash on holiday travel, but more and more are choosing not to ride the country’s national carrier.

The CIMB’s Cost of Living Survey revealed why SIA has been struggling with falling passenger yields for 11 straight quarters.

According to the report, falling passenger volumes are not surprising since about 58% of respondents are increasingly using budget airlines for their holiday travel.

Only 24% of respondents are still refusing to give up the comforts of travelling with the national carrier, but 18% are opening up their wallets to Asia-based full-service airlines or Middle Eastern airlines.

But airlines needn't worry much. According to the report, “Airlines as a whole should not worry about growth. Some 30% of our respondents expect to take more flights per year, in the next 3-5 years; only 8% expect to take fewer flights."

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Learn from Google, Airbus chief warns aerospace industry

The aerospace industry must embrace competition from technology companies such as Google and SpaceX which are already having a revolutionary impact on the sector, the head of the Airbus Group told AFP in an interview.

Describing the scale and speed of innovation in Silicon Valley as both "frightening and fascinating," Tom Enders said the increasing digitalisation of the economy was having a profound impact on his company's business.

"I think that in the future, our industry will have to work much more closely with these new high-tech companies ... if only because these guys are increasingly intruding on our territory," said Enders, 55, who is half-way through a four-year mandate as CEO of the European aerospace giant.

Enders cited SpaceX, the space transport company founded by former PayPal entrepreneur Elon Musk, whose Falcon launch vehicles are taking on the market-leading Airbus-built Ariane in the commercial satellite launch market.

SpaceX has also mounted a legal challenge to the monopoly held by Boeing and Lockheed Martin for the launch of US government satellites.

Google in April acquired the drone start-up Titan Aerospace which aims to compete with Airbus in making high-altitude unmanned planes that are meant to take on tasks traditionally done by more expensive satellites.

"Aerospace is still a rather young industry but these people are even younger," he said. "And I think there is no debate as to which of us is the more vibrant industry. They are."

"The speed of decision and risk taking and all that is amazing," said Enders, speaking while in Normandy for events to mark the 70th anniversary of the D-Day landings.

A paratroop officer in the German army reserves who is a 25-year veteran of the European defence and aerospace industry, Enders also complained the European Union was stifling innovation and warned it must cut red tape.

"It should make us think as we look at the software industry, when you look at the IT industry at the Microsofts, Amazons, Facebooks, SpaceXs, Yahoos. It is all coming from the US."

Enders said many successful entrepreneurs in the United States were "bright young Frenchmen and bright young Germans" who had been forced to leave Europe to seek venture capital and a dynamic entrepreneurial environment.

Enders was appointed CEO of European aerospace giant EADS in June 2012 and immediately attempted a merger with Britain's BAE systems, a deal that would have seen the group replace Boeing as the world's biggest aerospace and defence company.

After the deal was blocked by Germany, Enders initiated an overhaul of the group's structure which reduced political influence.

He re-branded EADS into Airbus Group, reorganising the company into three divisions by merging the defence and space businesses. He has since led a push to expand the group's business outside of its home base in Europe, notably in Asia, the United States and the Middle East.

Airbus decided in 2005 to set up a joint venture in China to assemble the medium-range A320 passenger jet and the company plans to open an assembly line in 2015 in the southern US state of Alabama.

Enders said Airbus considered the project in the Chinese city of Tianjin a success and that it was vital the company developed a local identity as it expanded into foreign markets.

He said Airbus had allayed reservations from Chinese airlines about taking a China-made plane.

"We have demonstrated that they are just as good, some people say even better, as those assembled in Europe."

The Airbus Group would continue to embed itself abroad through new assembly lines, engineering centres and supply partnerships. "We clearly have beachheads that I hope we will be able to expand."

Enders said it was inevitable that the proportion of the Airbus workforce employed in Europe - currently 90 per cent of the company's 144,000 staff -- would fall as the international expansion gathered pace.

But he added: "If that one day would be 80 per cent or 70 per cent, we would still be a European company."

Airbus turnover rose by five per cent in 2013 to 59.3 billion euros ($80.9 billion). That compared to a rise of 6.0 per cent to 63.5 billion euros for rival Boeing.

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Tata-SIA collaboration hits snag in India

 India's effort to liberalise its airline sector has just taken a stumble.

The birth of a joint venture between Tata Group and Singapore Airlines (SIA), which was approved last year, now hangs in the balance, because of protests from a key lobby group.

The Federation of Indian Airlines - a lobby group that represents leading local carriers - has asked Delhi's high court to quash the approval of the Tata-SIA collaboration.

Its argument is permitting foreign investment in greenfield airlines will jeopardise the interest of the "existing cash-starved domestic airlines".

The court is now seeking advice from the new government.

Sudip Bandopadhyay, managing director and CEO of Destimoney Securities Private Ltd, said: "I am very hopeful that I think the government will take a positive stance and probably give them approval to go ahead, but assuming there is a negative decision, I think it’ll hurt the sentiment to an extent.

“Here we are trying to welcome foreign investment, wanting foreign airlines to come and invest and if you don't let Singapore Airlines come… that will send a wrong signal out and I hope and pray that doesn't happen."

Higher operating costs are squeezing margins in India’s airline industry, and passenger traffic growth is weak.

In addition, its aviation safety ranking was knocked down this year.

The pressure is on for the government to turn around the sector.

Kannan Siva, executive vice president of operations at Aranca, said: "I think in order of priority, the first one would be really looking at the tax structure for aviation turbine fuel that's at a state level that needs to be rationalised or reduced.

“The second area that they would be looking at is reducing airport charges which are pretty hefty in India compared to rest of the world, and also airport taxes that passengers have to bear."

Experts said that the new pro-business government will hopefully boost growth and that will encourage people to spend on air travel.

With a stronger but friendlier regulatory regime, plus relaxation in taxes, Indian carriers could soon emerge from the current slowdown.

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IATA says aviation safety remains high

Safety in global aviation remains high, the International Air Transport Association said on Tuesday, as it seeks to improve in-flight tracking after the disappearance of a Malaysian passenger jet in March.

There were 0.34 accidents per million flights in the first four months of 2014 compared with 0.32 over the preceding five years, IATA said at its annual general meeting in Doha, Qatar.

"The preliminary rate for the industry as a whole (including non-IATA airlines) is performing strongly," with 0.29 accidents per million flights in January-April against 0.48 in the previous five years, it said.

IATA groups 242 airlines representing 84 per cent of global air traffic.

Its statement noted that the industry recorded three accidents between January and April, including the mysterious disappearance of Malaysia Airlines Flight MH370.

"Aviation stakeholders are united in their desire to ensure that we never face another situation where an aircraft simply disappears," said Kevin Hiatt, senior vice president at IATA's Safety and Flight Operations department.

MH370 disappeared on March 8 en route from Kuala Lumpur to Beijing with 239 people aboard. An extensive search in the Indian Ocean has been unable to locate the plane.

An IATA taskforce on in-flight tracking, formed by the UN's aviation agency, the International Civil Aviation Organisation (ICAO), is to present its findings in September.

"While states work through ICAO to develop and implement performance-based global standards, the industry is committed to moving forward with recommendations that airlines can implement now," said Hiatt.

He acknowledged, however, that airlines alone can decide if they want to implement such standards.

Meanwhile, the company specialising in air transport communications and information technology SITA announced in Doha plans to introduce a new aircraft tracking device.

"The solution, which is currently being evaluated by several airlines for testing, will utilise technology that is already installed in the aircraft to provide advanced tracking capabilities," a statement said.

It said the system known as "SITA AIRCOM Server Flight Tracker solution" will alert airline flight dispatchers "to unexpected aircraft movements" it said.

According to its designers, "the solution does not call for extensive additional cost or investment by the airlines" as it relies on a system that is already installed in many aircraft.

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Qatar Airways wants stake in India's IndiGo

Qatar Airways is interested in buying into India's budget airline IndiGo, the head of the fast-growing Gulf carrier said on Monday.

"We are very keen on investing in IndiGo if it's available," Qatar Airways chief executive Akbar Al Baker said, praising the airline as "the most successful Indian carrier".

IndiGo is "the most efficient Indian carrier and the most progressive Indian carrier... We love to be associated to that success," he told a press briefing on the sidelines of an aviation conference in the Qatari capital.

IndiGo is the only carrier not enduring losses in India, whose aviation sector faces rising fuel costs, a drop in passenger numbers, a slowing economy and a price war triggered by tough competition.

The carrier, which was established in 2006, serves 26 destinations across the subcontinent, and has routes to Nepal, Oman, Dubai in the United Arab Emirates, Singapore and Thailand.

It operates a fleet of 78 Airbus A320s.

Qatar Airways is the flag carrier of the energy-rich Gulf state.

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IATA expects airline profits to hit US$18b in 2014

The International Air Transport Association (IATA) said on Monday that it expects airline companies to record combined net profits of $18 billion this year.

Revenues were forecast to reach $746 billion, IATA director general Tony Tyler said in Doha, pointing out that net margins stood to average 2.4 per cent only.

"It sounds impressive. But the brutal economic reality is on revenues of $746 billion dollars we will earn an average net margin of just 2.4 per cent," he said.

This amounted to less than $6 per passenger, added Tyler, who was speaking at an IATA-organised annual conference of the airline industry in the Qatari capital.

"The good news is that airline profits are improving. The average return on invested capital today is 5.4 per cent -- up from 1.4 per cent in 2008," said Tyler.

"But we are still far from earning the 7-8 per cent cost of capital that investors would expect," he added.

He said there was still huge potential for development in the sector.

IATA said in March that some 240 carriers representing 84 per cent of global air traffic had revised down their profit forecast for 2014 to $18.7 billion from $19.7 billion.

Tyler said the industry was celebrating 100 years of aviation in which 3.3 billion passengers will have travelled and 52 million tonnes of cargo transported.

In total, some 50,000 destinations are linked through around 100,000 daily flights, while the industry generates more than 58 million job opportunities worldwide.

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SIA widens US coverage through expanded Asiana Airlines partnership

 Singapore Airlines (SIA) is providing access to Los Angeles, Seattle and Honolulu in the United States to its customers after announcing an expanded codeshare agreement with Asiana Airlines on Monday (June 2).

In a statement, the airline said it is now codesharing on Asiana-operated flights beyond Seoul's Incheon International Airport to the three US cities. Honululu is a new port of call, while SIA operates flights to Los Angeles and flies to Seattle through another partner airline, a company spokesperson told Channel NewsAsia.

Both parties have been codesharing since September 2005 on flights between Singapore and Seoul-Incheon.

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Air New Zealand orders 14 Airbus planes for US$1.5b

Air New Zealand said on Sunday that it has ordered 14 medium-range Airbus planes, valued at $1.5 billion according to list price.

The order by New Zealand's flag carrier includes three A321neo, 10 A320neo and one A320, said the airline's chief Christopher Luxon at a conference in the Qatari capital.

The neo units will be delivered between 2017 and 2019, while the classic A320 will be supplied early next year, he said on the sidelines of the general assembly of the International Air Transport Association.

The single-aisle aircraft are more fuel efficient than earlier models.

Luxon said that the carrier plans to have a fleet of medium-range airliners consisting exclusively of Airbus planes. Airbus's A320 family competes with Boeing's 737.

In November 2009, Air New Zealand placed an order for 14 A320 jets to replace its Boeing 737-300 planes.

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Week 61: PPL Flight School Week 30 - Completion

Monday
My day started late with my final sim session at 1530hrs. I was left with 3.5hrs and so I entered a very long route into my flight plan flying to many aerodromes and doing all the approaches which were mainly everything I've learnt - NDB, VOR, ILS. Turned on the autopilot during cruising while switching to manual flying during approaches. Even so, I got really bored and tired looking at the G1000 screen.

By the time everything was done, it was already nightfall when I left the school building. At last, I'm finished with all necessary trainings I have to do in Ballarat and the paper work can get started to prepare for my departure back to Singapore.

Lots of things to settle with all the clearance signatures I had to get from a number of key figures in the school, plus tallying all my hours to make sure I didn't fly less than required. Confirmation of my air tickets came on Thursday and I left Australia on Friday noon.

The month of May is the craziest month I had with 23.4hrs of flight and 21hrs of sim hours clocked. I'm glad this rush occured which allowed me to get home by end of the month. I was totally missing the food in Singapore as well as my family and friends. When I touched down in Changi Airport close to 2200hrs, I got greeted by the familiar humid and hot weather, something which I welcome.

It has been a long but fulfilling seven months in Down Under, experiencing Spring, Summer, Autumn and skirting Winter. I left Singapore with zero flight experience under my belt but I returned with 86hrs and armed with a PPL which I'm proud to have achieved. The experience of life abroad is something I'll treasure and remember for the rest of my life.

Now I'm back home, it's time to look forward to the next phase of training in the A320 simulator. It's going to take me another six months; I'm now done with 66% of the whole course and it feels I'm getting closer.

Farewell C172

One last wash before I kiss you goodbye

The morning I left Ballarat was pissing cold

Domestic side of the airport

Meal with a view

Fat bird

CX A333

The bird to bring me home

9V-SKE

Cooked dinner for family for the first time in 30weeks

Airlines meet in Doha under shadow of MH370 disappearance

The mystery of how Malaysia Airlines Flight MH370 flew into oblivion, and the challenge of finding new ways to track aircraft, will hang over the annual conference of airlines that opens Sunday in Doha.

The loss of the Malaysia Airlines plane, with 239 people on board, was a shock to the airline industry, and clouds the event in Doha just as it also celebrates 100 years of commercial aviation.

Aircraft being produced today for the next expected boom in traffic are scarcely comparable to the biplanes which carried mail or seaplanes which later assured many long-distance routes before the age of electronic navigation.

The main purpose of this 70th annual meeting, organised by the International Air Transport Association (IATA), is to enable its 240 members accounting for 84.0 per cent of global air traffic to talk about business prospects for the sector.

But the three-day get-together will open under the shadow of the Boeing 777 airliner which took off from Kuala Lumpur on March 8 bound for Beijing, but flew into danger leaving behind a trail of despair for relatives of the passengers and crew, muddle over what had happened, and mystery over where it had gone.

Various theories emerged about how and why the plane may have veered widely off course, and searches switched direction accordingly, but no debris has been found in the southern Indian Ocean where the aircraft is now believed to have looped far off course.

The drama also revealed to astonished public opinion that in an age of sophisticated civil and military radar scanning and of GPS satellite location and monitoring systems, an airliner can fly into apparent blind spots, leaving little or no trace.

This has led to calls for all airliners to be equipped at modest cost with extra emitters.

When IATA held its last annual meeting in Cape Town, South Africa, in 2013 one of the matters raised was poor air transport safety in Africa.

This year the conference will focus on how to improve the tracking of aircraft using various technologies to monitor their movements or to ensure the transmission of flight data. It is likely to encourage various international initiatives on this.

The International Civil Aviation Organization has just formed a working group which by September is to come up with ways of tracking aircraft.

At the European Aviation Safety Agency, executive director Patrick Ky said: "This meeting of IATA is particularly important in the context of the disappearance of Flight MH370."

He said: "We are mobilised to ensure that such a tragic event doesn't happen again."

At Air France, the director responsible for operations, Alain Bassil, said: "The disappearance of Flight MH370 is a landmark for airline companies as a whole ... The annual meeting of IATA is an opportunity to advance in the procedures for looking for an aircraft and providing emergency help in the event of an accident."

The French airline, the operator of an Airbus 330 airliner which plunged into the Atlantic Ocean on June 1, 2009, was slightly ahead on the issue, he said.

The company had extended the life of signals from the so-called black boxes of data carried on aircraft to 90 days to allow more time for investigators to locate a wreck.

It has also equipped its planes to automatically report their positions more frequently than most other airlines.

"Our airliners transmit their positions every ten minutes," he said, while the average at other airlines is 20 minutes.

"We have developed software so that the plane can report its position automatically, every minute, if it veers from its flight path or otherwise behaves in a way which does not correspond to that part of the flight path, such as a premature descent to a back-up airport."

IATA will also make its forecasts for profits by the sector this year.

In March, it adjusted its outlook down to US$18.7 billion (13.7 billion euros) from US$19.7 billion forecast previously, because of a rise in the price of fuel.

The place chosen for the meeting, in the Middle East where air traffic is booming, is also symbolic. This week a new airport was opened in Doha.

Last year, traffic in the region showed the biggest increase anywhere, expanding by 11.4 per cent compared with an average figure of 5.2 per cent.

In just over a decade, airlines in the Middle East have increased their share of world traffic from 4.0 per cent to 9.0 per cent. And traffic in the region is expected to grow at an average rate of 7.1 per cent a year in the next 20 years compared with 4.7 per cent for the sector globally.

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