All Nippon Airways' first-half net profit jumps 78% to US$328m

Japan's All Nippon Airways (ANA) said on Thursday (Oct 30) its half-year net profit soared 78 per cent as an expansion of one of Tokyo's airports boosted the carrier's international business. The airline earned ¥35.77 billion (US$328 million) against a ¥20.07 billion net profit a year earlier, while April-September sales rose 9.1 per cent to ¥854.82 billion, it said.

ANA increased its international services after a major development of Tokyo's downtown Haneda Airport, which it said helped offset a jump in operating expenses that mainly came from higher fuel costs. A sharp decline in the yen has sent the price of fuel - often an airline's single-biggest expense - surging for ANA and rival Japan Airlines (JAL), which reports its earnings on Friday.

Operating profit for the first half year rose 33 per cent to ¥57.94 billion, ANA said, while it also booked a one-off profit of ¥9.9 billion after changing the structure of its corporate pension scheme. For the full-year to March, the airline kept its estimate of a ¥35 billion net profit on sales of ¥1.7 trillion.

ANA has enjoyed improved fortunes after Haneda, which is much closer to the capital than rival Narita airport, increased capacity to handle more international flights. The airline has added services to major cities including London, Paris, Munich and Jakarta. ANA said its international business saw strong demand, while on the domestic side more flexible price-setting and a fare rise this summer boosted sales.

ANA and rival Japan Airlines (JAL) are increasing their use of the lighter weight Boeing Dreamliner to contain costs, but the fuel-efficient aircraft has been hit by a series of technical problems that forced a months-long grounding last year.

"Competition inside and outside Japan is expected to intensify, in addition to various risks such as fluctuations in foreign currency exchange rates, slowing of foreign economies and other international event risks," it said "We will proceed with multiplying our businesses, and reform our cost structure to maximise our group's profitability."

In contrast, smaller domestic rival Skymark Airlines booked a net loss of ¥5.74 billion in the April-September period, against a profit of ¥1.70 billion a year earlier. It also warned of a full-year net loss of ¥13.68 billion, against a previous forecast of a ¥354 million profit.

The carrier was born out of deregulation measures in the 1990s that were aimed at challenging ANA and JAL's control of the market. However Skymark has been seen ballooning losses owing to new entrants into the budget sector. The struggling airline was sideswiped when Airbus in July said it had cancelled its US$2.2-billion jet order, apparently over concerns about payment.

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Virgin Australia chairman to step down

Virgin Australia chairman Neil Chatfield said on Tuesday (Oct 28) he would leave after seven years spent guiding the airline through a turbulent time in the challenging domestic market.

Chatfield, who joined the board of Australia's second largest carrier in May 2006 and became the firm's chairman in 2007, said he believed it was the right time to step down. "I believe the board, CEO and executive team are in a strong position to successfully guide the company into the future," he said in a statement.

Virgin has been engaged in a bruising war with rival Australian carrier Qantas over the domestic aviation market. The battle saw both Virgin and Qantas record annual net losses in August of A$355.6 million (US$313 million) and A$2.84 billion respectively.

Virgin - which is majority owned by Singapore Airlines, Air New Zealand and Etihad - took full control of budget carrier Tigerair Australia earlier in October when it paid A$1 for the remaining 40 per cent it did not already own.

Chatfield said he had would stay in the job until a replacement is found.

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ASEAN Open Sky policy spells bad weather for Indonesian airlines

As early as January next year, ASEAN carriers will fly freely across the region to any airport and as often as they want, as part of the ASEAN Open Sky policy. Ahead of that, the Indonesian government is taking steps to make sure Indonesian airlines can compete with other airlines in the region.

ASEAN is moving towards a single aviation market, with the aim of higher efficiency, better connectivity and cheaper fares. In Indonesia, the biggest economy in the bloc, the open sky policy is expected to create almost 30,000 jobs and add almost US$500,000 to the country’s GDP.

Yet, Jakarta has not signed off on the deal on concerns about competition, because Indonesia charges more than its regional peers for aviation services.
Djoko Murjatmodjo, Acting Director General for Air Transport at the Ministry of Transportation, said: “We are aware there are problems regarding the high price of aviation fuel as well as import tariffs for airlines and aircraft spare parts. The airline association and the Transportation Ministry are taking steps to reduce these tariffs.”

Currently, aviation fuel in Indonesia is 13 per cent more expensive than Singapore. The policy also calls for Medan, Jakarta, Surabaya, Denpasar and Makassar to open their airports, but those airports and cities do not have the capacity to accommodate a swell in passenger numbers.

Indonesia said efforts are underway to address fuel costs, infrastructure development and personnel training to manage aviation traffic. However, AirAsia CEO Tony Fernandes said a key problem is the government itself. “The trouble is in ASEAN - government owns a lot of businesses. So there’s a huge conflict. Am I regulating AirAsia or is he my competitor? That’s the real problem. When I criticise governments, they say I’m criticising them. I’m criticising the airline or the regulator, so this is the Jekyll and Hyde situation. Governments need to decide what’s good for my people.”

So far, eight ASEAN member states have ratified the agreement. Indonesia has only ratified the ASEAN’s Multilateral Agreement on Air Services but has not ratified the agreement on cargos and passengers. As the Open Sky policy will take into effect only when all agreements are ratified, it may be up to the next administration to pick up what the current government has left off.

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Week 74: A320 Type Rating Week 13

It has been a hectic week, with two sim sessions sandwiching one very exciting observation flight arranged by the airline. I shall write about the two sim trainings before I go on to the astonishing experience in the real A320 cockpit.

First session was on Monday, with the lesson plan exactly the same as the previous lesson. It was good practise as we were able to polish our manual flying so as to fly more accurately on the SID, which isn't an easy feat. After the weird descend profile from the previous session, I calculated the full descending profile and realised we flew wrongly the previous round.

Armed with a new set of distances with their respective heights, I was determined to get it right this time round. However before we were able to get to the descending phase, we were surprised with a different way of programming the FMGC to get to a holding point. Instead of using the DIR (direct to) button, we had to amend the flight plan and change a point into it so as to key in the holding point we were given, into the flight plan. The main difference was that there won't be a track drawn in the ND to guide us to the holding point. As a result, we had to make use of the VOR needle to home into the station. That requires some skill to do some on-the-go calculation to get to the point.

After the hold came the descend phase using the CANPA principle. I'm glad to say my calculation worked and the whole profile was much neater and stable. With my height sorted out, I'm still bugged by my poor control in flying to the runway's centreline. Getting really frustrated, I elaborated my flying and consulted my helpful sim partner. He gave me some pointers which made me realise that my turning reaction may be too stiff. Such epiphany got be excited to try it out in the next sim session. My instructor also wrote in my grade sheet that more practice is needed for approach.


Second session on Friday, the day after my observation flight which was almost 10hrs long. Needless to say, I was quite tired but had done all necessary preparation before the lesson. Lesson plan was unchanged like the previous two sessions, With an SID, holding and VOR approach. After the observation flight, I can better handle the radios and SOPs in my training. The lesson was well flown with no major issues to correct. My approach was also accurately flown both vertically and laterally after my realisation on Monday. Finally I've got it sorted out and what I need now will be more hours in the sim to perfect it.

Simulator powered by Windows haha!!

Here comes the interesting part: observation flight on a real A320. Ever since I embarked on this journey 24months ago, I have been dreaming on the day I can step into the A320 cockpit and experience flight as a flight crew, controlling the multi-million dollar machine through great heights, bringing my passengers to their destination safely and comfortably. Well the day isn't here yet, but it was pretty close to that.

I reported for flight two hours before scheduled departure, with the first hour spent in the crew room and the second hour in the plane/tarmac. In the crew room, a few documents will have to be printed, namely the flight plan, voyage report, weather, NOTAMs etc. Airport charts are to be prepared and iPads to be fully set up for the flight. Fuel requirements must be double checked, NOTAMs  and weather examined, find out on aircraft's serviceability along with the MEL if applicable. Lots of things to do within an hour I'd say, much like the days in Ballarat when I had to report early for my navigation flights.

Next, we head to the aircraft, which we have to find out its location. With the airport this huge, getting to the wrong gate will mean a very long walk. Upon reaching the cockpit, the FO will carry out the pre-flight walkaround, and I must say it's hell lot more extensive than the one I did on the C172 haha. Landing gears, engines, wings, flaps, stabilizers, pitot tubes, static ports, nose and finally setting the fuel required on the fuel cap.

Heading back into the cockpit sweating, all details on the flight plan had to be input into the FMGC with a few data awaiting the load sheet's arrival. When it was here, all passenger, cargo, baggage load will have to be taken into account, plus fuel weight. After some Picasso drawing, the trim and speeds can finally be keyed into the FMGC and we're all set to go.

Keeping my eyes and ears fully opened, I observed the captain and FO's every action and I'm satisfied to say that it's very close to what the school has been teaching me, and that's assuring. Push back, engine start, a crazy fast taxi speed and before I knew it, we took off from RWY20C. I was overwhelmed with the amount of radio works involved. Switching frequencies once every few minutes and you have to be fully alert to catch the controllers calling out your sign.

Our destination was Chiangmai, and we flew through numerous different control zones in Malaysia and Thailand. The radios were crazy, making me super amazed at the efficiency of the pilot monitoring. I don't know how well I can deal with the radios when my time comes.

Our flight was blessed with great weather, and having made some shortcuts along the way, we reached our destination earlier than scheduled even when our departure was a bit later than planned. Chiangmai airport was small with one active runway. It was a simple ILS approach with AP disengaged at about 500ft AGL. I can learn a lot with a real life landing as compared to the one I do in the simulator. However at my current stage of training with no automation involved, it's still unfamiliar grounds for me.

After a quick unloading and loading, we were back on the runway for departure back to Singapore. Everything happens very quickly with no time to waste. The return flight was quieter in the cockpit as most of the chats were done during the outbound flight. I asked a few questions to clear my doubts and then time flew by, ironically. By sunset, I was on approach to changi airport RWY20C and landed safely back home. Shut down the aircraft and that concluded my virgin cockpit experience.

It was enriching, fun and a great eye opener. I look forward to my second observation flight next week to Ho Chi Minh City.

Flight plan and prep work at crew room

Took off from WSSS RWY20C, overflying Batam for a left turn to South China Sea

At destination and mid air

Home bound on approach

SIA's mooted Tigerair takeover: Competition watchdog calls for public feedback

The Competition Commission of Singapore (CCS) is seeking feedback on the proposed acquisition of additional shares in Tiger Airways (Tigerair) by Singapore Airlines (SIA).

CCS on Friday (Oct 24) said it received notification from the two carriers on the proposed deal a week ago. On Oct 17, Tigerair had reported an after-tax loss of S$182.4 million for the fiscal second quarter and said it will raise up to S$234 million via a rights issue.

SIA is already the biggest shareholder in the Singapore-based budget carrier and is seeking to raise its stake in Tigerair from 40 per cent to approximately 55 per cent. If the deal goes through, it would make Tigerair a subsidiary of SIA, on top of the Singapore flagship carrier's low-cost airline Scoot.

More information can be found at ccs.gov.sg. The closing date for the submission of feedback is Nov 7.

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Jetstar Asia takes over Valuair flights to Indonesia

Budget carrier Jetstar Asia will take over operations of Valuair flights between Singapore and its four ports in Indonesia from Sunday (Oct 26).

This follows the lifting of operating restrictions for foreign low cost carriers (LCCs) by the Indonesian government, Jetstar Asia said in a press release on Friday (Oct 24).

It added that it will continue operating up to 52 return services between Singapore and Indonesia, with no changes to the current schedule. Flights operated under the Valuair "VF" flight code will now be operated with the Jetstar Asia "3K" code.

“It’s business as usual for our flights between Singapore and Indonesia,” Jetstar Asia CEO Barathan Pasupathi said.

“Operating under the one brand with one airline code will further streamline and simplify customer communications particularly for our growing number of Indonesia passengers travelling with us through Singapore to one of the other 18 Jetstar Asia destinations.”

Jetstar Asia currently has a fleet of 18 180-seat Airbus A320 aircraft, and flies from Singapore to Jakarta, Medan, Surabaya and Denpasar (Bali). Valuair when launched in 2004 was the first low-cost airline in Singapore, but was acquired the next year by Jetstar Asia.

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Qantas expects to report pre-tax first-quarter profit: CEO

Qantas' chief executive Alan Joyce on Friday (Oct 24) said the Australian carrier expects to post a pre-tax profit in the three months to September following a record net loss, and was on track to complete its major cost-cutting programme.

Speaking at the airline's annual meeting in Melbourne, Joyce said preliminary figures showed Qantas had made an underlying profit before tax for the first-quarter of the 2015 financial year. "In four months we expect to deliver a first half-profit for 2015," Joyce said, reaffirming earlier guidance. "By the end of June next year we will have completed 80 per cent of our (5,000) announced job reductions. And by the end of June we also expect to have paid down A$1 billion (US$880 million) worth of debt, significantly de-leveraging the balance sheet."

The projected return to profitability followed Qantas' record annual net loss of A$2.84 billion for the 2014 financial year, driven by restructuring costs and a writedown of its ageing international fleet. It reported an underlying annual loss before tax of A$646 million.

The firm has embarked on a A$2 billion transformation programme, with chairman Leigh Clifford saying on Friday that "there can be no let up or slow-down in this process". Joyce said the airline was benefiting from the weaker Australian dollar - which hit a four-year low in early October - and falling oil prices, even as domestic demand remained weak. He said domestic market capacity growth, which was earlier projected to be about 1.0 per cent, was expected to be flat for the first-half, as a brutal battle with rival Virgin Australia eases.

Clifford told shareholders the immediate outlook for the company was mixed as the Australian economy transitions away from mining-led growth. "There is still a general cautiousness among consumers that is affecting all sectors of the Australian economy," he said. "Government traffic has been weaker, as a result of the tighter fiscal environment." He said the recovery in earnings from the domestic business would be driven by cost reductions in the short-term.

Several Qantas employees who are also shareholders challenged the board's transformation strategy at the annual meeting, with a member of the ground staff telling the board that morale was low.

Qantas' woes has also attracted criticism from the Transport Workers' Union, which said in a statement on Friday that management needed to "stop waging war on its workforce and instead engage with them to turn the airline around".

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Boeing profits up on higher commercial deliveries

US aerospace giant Boeing on Wednesday (Oct 22) reported higher quarterly earnings and raised its full-year profit forecast for the second quarter in a row on increased commercial aircraft deliveries. Earnings for the third quarter came in at US$1.36 billion, up 17.6 per cent from the year-ago period.

Key drivers included a jump to 186 commercial aircraft deliveries, up from 170 in the 2013 period. Boeing booked 501 net orders during the quarter, with Irish carrier Ryanair signing a deal for 100 Boeing 737 airplanes.

In its government-oriented defence, space and security segment, Boeing scored higher profits in its military aircraft unit, in part due to increased deliveries of the P-8 vehicle developed for the US Navy. But revenues fell in the government satellite and global services businesses.

Boeing raised its full-year profit forecast to US$8.10-US$8.30 per share "core" earnings from the prior range of US$7.90-US$8.10.

"With three solid quarters behind us and confidence in our ongoing performance, we are increasing our earnings per share outlook for 2014," said chief executive Jim McNerney.

The third-quarter results translated core profits of US$2.14 per share, much above the US$1.98 forecast by analysts. Revenues rose 7.5 per cent to US$23.78 billion, more than the US$23.02 billion projected by analysts. Boeing shares dipped 0.1 per cent to US$127 in pre-market trade.

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Boeing and Chinese firm to turn 'gutter oil' into jet fuel

US aircraft maker Boeing has set up a facility with a Chinese firm to transform waste cooking oil - the source of repeated food safety scandals - into jet fuel, it said on Wednesday (Oct 22).

Boeing and the Commercial Aircraft Corp of China (COMAC) have set up a plant in the eastern city of Hangzhou to convert "gutter oil", a Chinese term for used cooking oil, according to a statement.

A series of scandals involving "gutter oil" being re-used for human consumption has featured in Chinese media. The two companies estimate that waste oil in China could yield 1.8 billion litres (500 million gallons) of biofuel annually. "Sustainably produced biofuel ... is expected to play a key role in supporting aviation's growth while meeting environmental goals," the statement said.

China is a key market for Boeing, which estimates China will need 6,020 new airplanes valued at US$870 billion through 2033. COMAC is the country's main commercial aircraft company, and could eventually compete with the US firm. It is building a regional jet and narrow body airliner, the C919.

Boeing rival Airbus and Chinese energy giant Sinopec said in 2012 that they would also develop renewable aviation fuel production for regular commercial use in China.

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Lufthansa pilots extend strike to long-haul services

Lufthansa pilots, on strike since Monday (Oct 20), extended their industrial action to include long-haul flights on Tuesday, grounding almost all inbound and outbound services at Germany's usually busy Frankfurt airport.

In the ninth walkout by its pilots since April, the German airline said it has cancelled 1,511 flights over the two days of the stoppage, with some 166,000 passengers affected.

Nevertheless, the situation in Frankfurt, Germany's busiest airport, was relatively calm because around 90,000 passengers had been informed in advance via email or text message, a Lufthansa spokesman said.

The strike started on Monday at 1pm (7pm Singapore time), initially on short and medium-haul services, but was extended to include long-haul flights at 6am (noon) on Tuesday. The walkout was scheduled to end at 11.59pm on Tuesday (5.59am Wednesday).

The pilots are striking over plans by management to raise the age at which pilots are able to take early retirement. At present, pilots are allowed to retire at 55 and receive up to 60 per cent of their pay until they reach the statutory retirement age.

Travellers in Germany already faced separate strikes by train drivers at the weekend.

In an interview with the mass-circulation daily Bild, transport minister Alexander Dobrindt complained that the repeated strikes were "killing" the economy. "Our transport axes are our country's central nervous system ... a long-lasting blockade will cause a greal deal of damage to the economy," the minister said.

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German pilots strike after weekend rail chaos

Lufthansa pilots launched a strike on Monday (Oct 20), deepening Germany's travel chaos after train drivers stopped work at the weekend just as school holidays began in much of the country.

The top-selling Bild daily complained that "ping-pong strikes are crippling our economy", Europe's biggest, as about 10,000 pilots and 20,000 train drivers had "taken hostage" 80 million Germans.

The German Industry Federation charged that the pilots strike, following the "disproportionate" railway stoppage, "harms the entire economy" by hitting logistics, tourism and business travel.

The government said the strikes will certainly "impact some sectors of the economy", though there was no reason to change Germany's 2014 growth forecast, which was lowered this month to 1.2 percent.

Pilots for Lufthansa, Europe's biggest airline, said they would broaden strike action to long-haul flights on top of previously announced stoppages on short- and medium-length routes.

The industrial action on Monday and Tuesday was expected to affect more than 200,000 passengers on 1,400 flights, said Lufthansa, advising passengers to check for updated information on its website.

Pilots stopped short- and medium-haul flights departing between 1100GMT Monday and 2159GMT Tuesday (between 6pm Monday and 4.59am Wednesday Singapore time), as well as intercontinental flights scheduled to leave Tuesday between 0400GMT and 2159GMT (between 11am Tuesday and 4.59am Wednesday Singapore time).

The strike will not affect Lufthansa subsidiaries Austrian, Swiss and Brussels Airlines or Germanwings, the low-cost carrier whose pilots staged a 12-hour strike last week.

Pilots union Vereinigung Cockpit (VC) launched its eighth action in recent months in a bid to keep an early retirement scheme that management wants to phase out to reduce costs.

INFRASTRUCTURE PARALYSED

The stoppages come as autumn school holidays start in seven of Germany's 16 states and are ongoing in two more. "Now, during the holiday period, I think this is pretty brazen," one affected air passenger told NTV television, though he said he understood that "everyone has interests they want to promote".

Lufthansa accused the union of bringing Germany to "a standstill" and sought to draft in pilots working in management positions to ensure a third of scheduled services still operate. The airline labelled the strike "incomprehensible and disproportionate" and demanded legislation against actions that cripple large parts of Germany's travel infrastructure.

Lufthansa spokesman Andreas Bartels said the company wants new "rules of the game for such labour disputes, which are needed especially in infrastructure-critical" sectors of the economy. Berlin is working on legislation to stop small groups of employees from paralysing large parts of the transport system, and a draft law is expected in November.

The flight chaos compounded weekend disruptions when train drivers halted at least two-thirds of passenger and cargo services nationwide. The GDL train drivers' union launched their biggest stoppage since 2008 in demand for more pay, shorter hours and the right to also represent conductors and other rail personnel.

GDL chief Claus Weselsky announced a seven-day pause, but warned of more stoppages after that if rail operator Deutsche Bahn (DB) does not offer "real negotiations". His union earlier rejected an offer of a five-percent wage increase over 30 months.

DB said the strike had caused damage "in the tens of millions of euros" due to lost business, reimbursement payments, extra staffing for a customer hotline and hotel and taxi vouchers for many customers.

As train carriages stood idle, it said, "vandals took advantage and sprayed graffiti on 69 suburban train cars at eight stations in Berlin alone", also defacing trains in Hamburg, Leipzig and elsewhere. DB personnel chief Ulrich Weber charged that the small union "has not moved one millimetre, has applied pressure, angered millions of customers and damaged the company".

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SIA flight hit by turbulence; 22 hurt

Eight passengers and 14 crew members were injured on Saturday (Oct 18) when a Singapore Airlines (SIA) flight from Singapore to Mumbai was hit by turbulence on descent.

An SIA statement said: "Singapore Airlines flight SQ424 from Singapore to Mumbai experienced sudden turbulence during descent on 18 October. There were 408 passengers and 25 crew on board."

"Eight passengers and 14 crew sustained injuries and were attended to by medical personnel on arrival at Mumbai Airport. Of the 14 crew, 10 required hospitalisation. They have been cleared and discharged by the medical personnel. All 8 passengers were hospitalised and 6 have been discharged by the medical personnel after examination," it added.

"Our immediate concern is for the well-being of our passengers and crew. Singapore Airlines will provide full assistance to the authorities in their investigations," said the statement.

A passenger on the flight told Channel NewsAsia that his experience on SQ424 was "scary".

Harsh Nayyar, 30, from Australia was travelling to Mumbai to visit his family when the plane hit turbulence. In a Facebook post on the SIA page, he described the incident as "the plane losing altitude in the air". He also said that during the turbulence, passengers in the main deck, including cabin crew, "were thrown into the air" and "hit the roof of the plane".

He added that throughout the ordeal, the pilot "did not speak any word as to what had happened until the end."

SIA acknowledged Mr Nayyar's comments on its Facebook page and said that "investigations are underway". Information regarding the incident will be released "as soon as it is available", the airline added.

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Airlines adopt new rules to avoid crew fatigue

New flight rostering rules have been imposed on all Singapore carriers, in line with a global push to ensure accidents do not happen because of crew fatigue.

The Civil Aviation Authority of Singapore (CAAS) introduced the changes in June, following a major review which included discussions with Singapore Airlines (SIA) and other local carriers, The Straits Times has discovered.

The move comes at a time when Asia is experiencing a growing number of flights, which experts believe could put a strain on manpower resources. Among the revisions is one which demands that pilots do not handle more than two night flights a week.

When determining rest periods in between flights, airlines must also consider whether the flights before and after are operated in the day or night.

The rule takes into account the fact that the body does not react and adjust to situations in the same way throughout the day.

Airlines are now also required to monitor their crew closely to ensure that they are performing at the highest level of alertness during duty hours, and submit regular reports to the CAAS.

Before the changes, airlines' typical approach to managing crew fatigue had been to set limits on maximum daily, monthly and yearly flight and duty hours, and mandate minimum breaks within and between duty periods.

The general rule of thumb was a minimum 10 hours' rest after being on duty for under 10 hours. For longer flights, the rest period had to be at least as long as the duty time.

Setting such arbitrary limits that are not founded on research and science is an ineffective way to manage crew, according to the United Nations' International Civil Aviation Organisation and the International Air Transport Association which are leading the global move for airlines to review their policies.

A CAAS spokesman said this is an important area of focus "as fatigue is recognised as a major human factor element that affects crew members' (flight and cabin crew) ability to do their job".

So far this has not been the main cause in any incidents at Changi Airport but it has been a "contributory factor in some", though the spokesman would not elaborate further.

SIA spokesman Nicholas Ionides said the airline supports the changes, calling them a step forward in ongoing initiatives to enhance operations and ensure an "appropriate level of alertness for crew". He added that rosters have already been adjusted to reflect the changes.

The Tokyo-Los Angeles flight, for example, used to be operated by one captain and two first officers, with all three crew required to be in the cockpit throughout the flight. Now, it is two captains and a first officer, with two of them on the flight deck at any one point while the third rests.

The changes do not impact the overall number of pilots needed, Mr Ionides said.

Captain William Teng, chairman of the SIA branch of the Air Line Pilots Association (Alpa-S), said: "The changes are timely, given that we now operate more longer sectors with planes that can fly farther than when the rules were first drawn up several decades ago."

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Week 73: A320 Type Rating Week 12

After the completion of Phase 2A, I had a 2.5wks break before my next sim session. In the midst of this break, we had a brief for Phase 2B training. It's been revealed that more sophisticated flying will be introduced to us and that consist of CANPA, Go-Around, Circle-to-land as well as SID/STAR/Holdings with VOR/NDB approaches. Everything will still be flown manually which makes the workload pretty high.

The only sim session I had this week was at Saigon airport, the very first time I'm not taking-off and landing in Singapore's Changi Airport. New stuff had to be input into the FMGS' flight plan now that an SID will be flown. The Standard Instrument Departure(SID) isn't an easy one to fly as it involves turning tracks rather than straight forward tracks to the next waypoint.

Upon the last waypoint of the SID, we were given radar vectors to "disorientate" us so that we do not know where we were physically and had to rely on the VOR indication on the ND to guide us back to which circling point we want. It wasn't easy to get the technique though, as we need to do some sort of geometry measurement on the ND to fly the plane back before the PM keys in the point in the FMGC to be displayed on the ND.

Upon reaching the holding point, we had to figure out which sector entry and enter the hold correctly, this being done at green dot speed of close to 200kts. Flying accuracy definitely wasn't as good as what we want. We had to do approach brief and chart brief before we get into the hold, lots of stuff to do with too little time.

When do we want to extent flaps, when will gears be lowered, all these while monitoring the rate of descend so as to check whether the plane is in the correct 3-degrees profile for landing. A lot of adjustments had to be made on the ND in terms of view range and view modes. Flying a VOR CANPA approach manually takes lots of skills. Matching distance with height as well as keeping aligned with the station, massive scanning frequency is needed, which can get very exhausting.

The issue with CANPA, in full terms Constant Angle Non-Precision Approach, is the need to make height calculations at different distances to the threshold. Following the aerodrome chart will no longer be considered a CANPA. As our first lesson, we made the mistake of using the miss-approach point as threshold and the approach profile was incorrect according to our calculation as we found out when we flew it. Every approach ended up too high and last minute quick descends had to be flown to make the landing.

I found it confusing but it was too late to make any calculation changes anyway. When I got home, while referring to the airline SOPs, I made the corrections and is determined to get it right in the next CANPA training. Next week will be pretty eventful as I'm scheduled for two sim sessions as well as an observation flight to Chiangmai in the real aircraft. Can't wait!!

New model in the school, can you guess the aircraft?

New stuff

VVTS RWY25L VOR approach, it's been very long since I last studied an aerodrome chart

Japan to unveil first passenger jet in four decades

The first made-in-Japan passenger aircraft in nearly four decades is being unveiled on Saturday (Oct 18) as its maker pushes into the booming regional jet sector with an eye to taking on industry giants Embraer and Bombardier.

Mitsubishi Heavy Industries, a military contractor best known for its "Zero" World War II fighter, is set to pull back the curtain on its new Mitsubishi Regional Jet (MRJ), a fuel-efficient, next-generation aircraft that claims to offer more passenger comfort with lower operating costs.

The jet, which will be delivered to customers from 2017 and was built with assistance from aviation giant Boeing, is being unveiled at a ceremony in the central city of Nagoya on Saturday.

"The MRJ programme has been making steady progress, and its state-of-the-art aerodynamic design, and a game-changing engine will significantly cut fuel consumption, noise and emissions, helping airlines enhance competitiveness and profitability in the future," Teruaki Kawai, president and chief operating officer of Mitsubishi Aircraft, said in a recent statement.

The plane marks a new chapter for Japan's aviation sector, which last built a commercial airliner in 1962 - the YS-11 turboprop. It was discontinued about a decade later.

Japanese firms were banned from developing aircraft by US occupiers following its defeat in World War II. The country slowly started rebuilding its aviation industry in the 1950s, starting with supplying repair work for the US military, before expanding its scope to start licensed production of US-developed aircraft for Japan's Self-Defence Forces. Japanese firms have also long supplied parts to Boeing.

Mitsubishi's short-to-medium haul regional jet, which comes in a 70 and 90-seat version, was backed by the Japanese government and a consortium of major firms including Toyota with research and development costs of around 180 billion yen ($1.7 billion).

EYE ON 2020 TOKYO OLYMPICS

The company has secured 375 orders and options from carriers including All Nippon Airways (ANA), US-based Trans States Holdings, and SkyWest. Japan Airlines (JAL) has also signed a Letter of Intent for 32 MRJs, which have a list price of $40 million, to be used on domestic flights.

The MRJ project got off the ground in 2008 after ANA agreed to buy two dozen of the planes. But it quickly flew into turbulence as the global economic downturn battered the aviation industry, forcing many carriers to slash jobs and routes.

The project took flight again as Tokyo tries to lure more overseas visitors to Japan ahead of the 2020 summer Olympic Games in Tokyo. The Japanese government is also aiming to expand firms' foothold in the global aviation and military sectors as the domestic market shrinks due to a rapidly ageing population.

The jet will compete with small aircraft produced by Brazil's Embraer and Canada's Bombardier, as well as jets designed by Russian and Chinese firms.

Its maker pointed to expected global demand of 5,000 regional jets over the next two decades.

"Five thousand is not a small number," Kawai told the Wall Street Journal in an interview published this week. "I'm claiming we can get 50 percent of that. That's what we are aiming at right now. But in 20 years, I'm saying, not in three to five years, if our research is correct. We have to be ambitious."

Automaker Honda is also developing a business jet, with its first delivery expected next year in North America and Europe.

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Virgin takes full control of Tigerair Australia for US$0.88

Virgin on Friday (Oct 17) took full control of budget carrier Tigerair Australia, buying the remaining 40 percent it did not already own for A$1 (88 US cents) from its Singapore-listed parent.

Virgin Australia purchased a 60 percent stake in mid-2013 for A$35 million and said Tiger Holdings had agreed to sell the rest of the carrier, which has struggled to reach profitability, for the tiny sum, effectively ending their joint venture. Tiger will continue to licence its brand to Virgin.

Virgin Australia chief John Borghetti said the acquisition would allow it to fly to a number of new short-haul international destinations, providing growth opportunities for the business, while accelerating Tiger's drive for profitability.

"Given the ongoing subdued consumer demand in the Australian domestic market, the growth of the Tigerair Australia domestic fleet is likely to be reduced," he said. "Under this proposed transaction, we will benefit from the economies of scale and achieve profitability ahead of schedule by the end of 2016, by leveraging the resources of the wider Virgin Australia Group."

Tiger, the local subsidiary of Singapore Airlines' Tiger Airways, has a history of poor financial and operational performance.

The move, which is subject to Foreign Investment Review Board approval, comes after a difficult 12 months for Australian airlines as intense battle for market share saw both Virgin and Qantas suffer heavy losses. Virgin posted a full-year net loss of A$355 million, while Qantas suffered a record loss of A$2.8 billion.

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Tigerair reports S$182.4m Q2 loss, announces rights issue

Budget carrier Tigerair posted on Friday (Oct 17) an after-tax loss of S$182.4 million for the fiscal second quarter and said it will raise up to S$234 million via a rights issue.

Tigerair, whose biggest shareholder is Singapore Airlines (SIA), said the huge loss for the quarter ended Sep 30 was due primarily to one-off charges amounting to S$161.1 million, resulting from the subleasing of surplus aircraft and exit from Tigerair Australia.

To strengthen its balance sheet, Tigerair plans to raise up to S$234 million in a renounceable non-underwritten 85 for 100 rights issue. The rights shares will be priced at S$0.20 each, representing a 39 per cent discount to the one-day volume weighted average price of S$0.33 per share on Thursday (Oct 16).

SIA has committed to subscribing for its share of the rights, and will also subscribe for excess rights shares up to a total of S$140 million. Prior to the rights issue, SIA will also convert its perpetual convertible capital securities holdings in Tigerair into ordinary shares.

The conversion will raise SIA’s stake in Tigerair from 40 per cent to approximately 55 per cent before the rights Issue, effectively making Tigerair a subsidiary of SIA.

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Lufthansa to drop services to Abu Dhabi

German airline Lufthansa announced on Thursday (Oct 16) that it will pull the plug on its once-daily flights between Frankfurt and Abu Dhabi due to competition from its Gulf rival Etihad.

"Substantial capacity has arisen in recent years on services between Germany and the United Arab Emirates because state-subsidised Gulf carriers have massively increased their presence," Lufthansa complained in a statement.

"This development has been further exacerbated by the fact that Etihad Airways has unfairly been allowed to offer and market code-sharing flights with Air Berlin," the German airline continued.

"In face of huge over-capacity, the service between Frankfurt and Abu Dhabi has become increasingly uneconomical for us. We are now taking the consequences and will drop the service from our timetable starting from summer 2015," Lufthansa said.

The carrier complained that the unfair competition from state-subsidised airlines in the Gulf region puts jobs at risk in the German airline sector.

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Lone profit-maker IndiGo among India's big airlines

India's biggest carrier IndiGo, which announced on Wednesday (Oct 15) a deal to buy 250 Airbus aircraft, has consistently racked up profits as rivals have drowned in red ink from cut-throat fare wars.

No-frills IndiGo has posted six straight years of profits - even with India's high fuel taxes, ramshackle airport infrastructure and vicious fare fights - thanks to its zealous cost controls, analysts say.

Billionaire airline co-founder Rahul Bhatia is legendarily tight-fisted, telling Forbes magazine in 2010 his credo is "thinking before spending a single dollar" and asking himself, "Do I need to spend it? Can I get away without it?"

The New Delhi-based carrier, co-founded by Bhatia, who is group managing director, and former US Airways chief executive Rakesh Gangwal in 2006, is unlisted. But analysts say IndiGo, which depends a lot on word-of-mouth recommendations rather than advertising, could stage a debut share offer in mid-2015.

IndiGo's stylish flight attendants and spotless plane interiors give the budget airline a premium feel while its strong on-time performance has wooed business and other customers, giving it a one-third market share.

The purchase of the 250 single-aisle A320neo aircraft - Airbus;s single largest order by number of jets - marks Indigo's bet that air travel is only just taking off in the country of 1.25-billion people, analysts say.

The draft order "reaffirms IndiGo's commitment to the long-term development of affordable air transportation" in India, said airline president Aditya Ghosh. The planes' total list price is €20 billion (US$25.6 billion) but Airbus' discounts will likely cut the cost.

"The deal is a strong indicator of the long-term potential of the Indian civil aviation market," Amber Dubey, partner and India head of aerospace and defence at global consultancy KPMG, told AFP.

For decades, Indians depended on the nation's bone-jolting railway but cheap air fares have encouraged tens of millions of increasingly affluent Indians to fly.

Still, air travel is low per person compared with Americans who make over two flights a year. Indians, by contrast, take just 0.4 airplane trips annually, according to government figures.

The plane order is also part of Indigo's drive to keep its fleet young - it retires its aircraft after six years - to minimise maintenance and fuel costs.

Analysts say IndiGo has taken a leaf from budget US carrier Southwest Airlines in containing costs by keeping operations simple.

It flies to fewer destinations than rivals but offers more flights on those busy routes to maximise plane-capacity and uses just one make - Airbus. Just three years ago, IndiGo ordered 100 A320ceo and 180 A-320neos.

IndiGo, which operates over 500 daily flights with a current 83-plane fleet, has also pared costs by keeping planes aloft longer, fast landing-and-takeoff turnarounds and maintaining a lean staff-aircraft ratio.

Still IndiGo has not been immune to India's sharp economic slowdown, reporting profit last year nosedived by 60 percent to 3.17 billion rupees (US$51.6 million).

But IndiGo outperformed other big carriers. Budget SpiceJet, for instance, posted a record 10.03-billion-rupee (US$162.6 million) loss last year while full-service Jet Airways lost 36.67-billion rupees (US$594.5 million).

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Etihad Airways sees 29% revenue surge in Q3

Abu Dhabi's Etihad Airways said on Tuesday (Oct 14) it posted a 29 per cent surge in revenue to US$1.8 billion in the third quarter, thanks to rising numbers of passengers and cargo volume.

The fast-growing carrier said 3.9 million passengers flew with Etihad between July and September, a 30 per cent increase on the same period in 2013. Etihad cargo also transported 144,498 tonnes of freight and mail, a nine per cent rise on last year's third quarter last year. The government-owned carrier did not say whether it registered any profits or losses.

"We are confident about sustaining our profitability in 2014," Etihad chief James Hogan said in a statement. He said the carrier's codeshare partnerships and minority investments in other airlines have continued to produce strong results despite "industry challenges such as volatile oil prices, economic and political instability, overcapacity in the market, and access constraints".

The company is turning Abu Dhabi into a major travel hub between the West and Asia and Australasia. Etihad carried 11.5 million passengers last year, earning US$6.1 billion in revenue, of which it kept US$62 million as profit. The company agreed in June to acquire 49 per cent of Italy's debt-laden Alitalia, widening its reach into the European market.

Launched in 2003, Etihad is expanding rapidly and has bought minor shares in several smaller carriers around the world as it competes with larger Gulf rivals Emirates and Qatar Airways. Etihad owns 29 per cent of Air Berlin, 40 per cent of Air Seychelles, 19.9 per cent of Virgin Australia and three per cent of Irish carrier Aer Lingus. It also has a 24 per cent stake in India's Jet Airways.

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Indonesia's Garuda makes US$5b plane order: Boeing

Indonesian flag carrier Garuda has placed an order for 50 planes worth almost US$5 billion, US plane giant Boeing said, as competition heats up for passengers in Asia's increasingly crowded skies.

Garuda ordered 46 of Boeing's new 737 MAX 8 jets and is converting existing orders for four 737-800s to 737 MAX 8s, the plane manufacturer said. The purchase is worth US$4.9 billion at current list prices, although airlines typically receive large discounts for big orders. "This order helps continue our commitment to offer the people of Indonesia and Southeast Asia the most comfortable, most efficient air travel in the region," said Emirsyah Satar, Garuda chief executive officer.

The aviation sector in Indonesia, the world's fourth most populous country with 250 million people, has grown rapidly in recent years as an economic boom creates a new class of consumers. Garuda, a state-owned, full-service airline, is facing stiff competition from budget carriers in the region, such as fellow Indonesian outfit Lion Air - which has expanded rapidly - and Malaysia's Air Asia.

The announcement marks the latest phase in an impressive turnaround for the airline. In the 1990s and early 2000s the airline was plagued by problems, including heavy debts and a poor safety record, but Satar has successfully turned it around since his appointment in 2005. It was the first Indonesian firm to be allowed back into European Union airspace in 2009 after a ban was imposed across the country's airline industry.

The 737 MAX family of aircraft are single-aisle jets that carry around 200 passengers. Boeing says they are the most fuel-efficient 737s to date, a key selling point as airlines struggle with high fuel prices. Garuda currently operates 77 Boeing 737s, Boeing said in a statement announcing the purchases on Sunday. It did not say when Garuda would start to take delivery.

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Airbus says China to buy 70 A320 planes worth $6.6b

Airbus said on Friday (Oct 10) that China Aviation Supplies Holding Company (CAS) has signed an agreement to buy 70 A320 family aircraft, an order worth US$6.6 billion at list prices.

The order reflects the strong demand from Chinese carriers for single-aisle aircraft for domestic, low cost, regional and international operations, the European aircraft manufacturer said.

"We are grateful to China for its strong vote of confidence in our leading A320 family aircraft, and are happy to see them assembled at our Chinese facilities," Airbus chief executive Fabrice Bregier said in a statement.

Airbus has already assembled and delivered 190 A320 aircraft from a facility in China's Tianjin Free Trade Zone. It said it had also signed a letter of intent with its Chinese partners to build a similar facility for A330 family aircraft, wide-body planes that can carry over 400 passengers.

"In its 30 years history the Airbus partnership with China keeps on growing and expanding," Bregier said.

The letter of intent was signed Friday in Berlin with the heads of the Tianjin Free Trade Zone and the Aviation Industry Corporation of China in a ceremony witnessed by German Chancellor Angela Merkel and visiting Chinese Premier Li Keqiang.

"The intended establishment of an A330 Completion and Delivery Centre will add a new exciting chapter to our longstanding track record of mutual achievements," added Brieger.

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SIA pilot in NZ car crash ordered to pay injured colleagues S$10,000 each

The Singapore Airlines (SIA) pilot who pleaded guilty to reckless driving in an accident in New Zealand in which two of his co-workers were seriously injured has been ordered to pay NZ$10,000 (S$9,998) to each victim, according to reports in New Zealand.

Benjamin Yonghao Wu, 32, was also banned from driving for 18 months.

During his sentencing at the Christchurch District Court on Friday (Oct 10), Judge Stephen O'Driscoll said Wu was lucky to be alive, Radio New Zealand reported.

Wu was driving a rental car on Oct 1 with four of his colleagues when he ran a stop sign and crashed into a four-wheel drive towing a horse float near Rolleston, south of Christchurch.

According to APNZ, he managed to slow down to about 40 to 50kmh, but later told police that he did not make an abrupt stop because it would have been “uncomfortable” for his passengers.

Two of the passengers, chief steward Chew Weng Wai and stewardess Vanessa Leonara Savio Coelho, suffered serious injuries in the accident. Both were sitting in the backseat and not wearing seatbelts, the court heard.

Mr Chew, who suffered swelling to the brain and significant internal bleeding, had to be cut free of the wreck, APNZ reported. Ms Coelho suffered a fractured arm and shattered pelvis as well as spleen and bladder injuries. She has since been discharged from Christchurch Hospital, according to the report.

Two other passengers were unhurt and have returned to Singapore.

“TRAGIC ACCIDENT WITH TRAGIC CONSEQUENCES”

Wu’s lawyer Kerry Cook described the incident as a "tragic unintended accident with tragic consequences". APNZ quoted Mr Cook as saying that Wu was unfamiliar with the roads and was taking directions from the GPS system. He saw the stop sign “very late” and "made a split-second decision that was to have unfortunate long-term ramifications".

Judge O'Driscoll noted it would have been "prudent" for Wu as the driver to ensure his passengers were all wearing seatbelts, although there was no legal responsibility for him to do so.

The report also quoted Mr Cook as saying that Wu, who was not injured in the accident, tried to help his colleagues at the scene and immediately took responsibility for the accident. He is “genuinely remorseful”, and has apologised to Ms Coelho and Mr Chew’s wife, who “don’t hold any grudges against him”.

"He is significantly upset and distraught at the harm. He has a significant burden to carry," Mr Cook said.

Before the court’s ruling on Friday, Wu had already paid NZ$15,000 into the court’s trust account for “emotional harm reparation”, the report said.

In a statement released to APNZ after sentencing, Wu said he took responsibility for the accident. "I sincerely apologise for all that has happened. It was never my intention for any of this to happen. I take responsibility as the driver of the car and I am truly sorry for what has happened.

"I am thankful that everyone involved in this accident is showing signs of improvement and recovery and I just wish we can move on from here so my friends and colleagues can focus on becoming healthy and well again."

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Tigerair to right-size operations with sublease of aircraft to IndiGo

Tigerair has signed a deal to sublease 12 of its surplus aircraft to the Indian budget carrier IndiGo. In a news release on Thursday (Oct 9), Tigerair said this will help the budget carrier "reduce excess capacity significantly and hence lower related leasing cost".

Most of the aircraft were previously operated by Tigerair Philippines and Tigerair Mandala which were either sold or folded earlier this year. The aircraft will be subleased to IndiGo for a period of between three and four years and Tigerair expects the agreement to reduce its cash flow burden by S$162 million over the sublease periods.

The Singapore-based airline has been struggling to turn in a profit. It booked a net loss of S$65 million for the quarter ended in June 2014.

In its news release, the budget carrier said its liquidity "remains at a healthy level", but that it would be reviewing various funding options, including the possibility of a rights issue to strengthen its balance sheet.

"The sublease agreement resolves our excess capacity issue and puts us in a better position to focus on our Singapore operations. We will actively explore options for the placement of the surplus aircraft subsequent to their return from IndiGo," said Mr Lee Lik Hsin, Group CEO of Tigerair.

The budget carrier has taken other steps as part of its turnaround blueprint. These include the sale of 'non-performing cubs' and cancellation of nine aircraft ordered in 2007, and due for delivery this year or the next. Tigerair will continue to review its network operations and may trim its fleet by a further two to four aircraft if need be, the release added.

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Australia shifts MH370 search zone further south

Investigators Wednesday (Oct 8) confirmed that the priority search area for missing Malaysia Airlines flight MH370 has moved further south as end-of-flight scenarios indicated it may have spiralled into the Indian Ocean.

Seven months after the Boeing jet disappeared with 239 people onboard, the Australian Transport Safety Bureau, leading the hunt for the jet, said ongoing analysis had helped refine the zone where an underwater search began this week.

"The latest analyses indicates that the underwater search should be prioritised further south within the wide search area for the next phase of the search," it said.

Despite an extensive hunt for the plane, which was en route from Kuala Lumpur to Beijing when it mysteriously turned southwards on Mar 8, no sign of it has been found.

Aviation experts had little to go on besides the satellite communications from the plane, information they have used to pinpoint a search area in the vast ocean off western Australia.

They believe the best hope of finding the plane is within the seventh arc, or the final satellite "handshake" from the plane, estimated to be when it was in descent. The ATSB said Wednesday that when all elements of the analysis so far were taken into account, it indicated that the aircraft "may be located within relatively close proximity to the arc", although further south than initially thought.

An ATSB report in June had put the priority search zone above an underwater feature named Broken Ridge, more than 2,000 kilometres west of Perth. But the new analysis puts it south of this feature, confirming earlier suggestions.

Analysis of the satellite data and end-of-flight simulations was ongoing, and this work could result in further changes to where the search was conducted, the ATSB added.

"The simulator activities involved fuel exhaustion of the right engine followed by flameout of the left engine with no control inputs," it said in an update on the flight path analysis. "This scenario resulted in the aircraft entering a descending spiralling low bank angle left turn and the aircraft entering the water in a relatively short distance after the last engine flameout."

The analysis of communications and flight data has been used to determine the first underwater areas to be scoured, with the first ship starting its scan of the ocean depths this week.

The Malaysia contracted GO Phoenix is using sophisticated sonar technology experts hope will detect large pieces of debris such as an engines or fuselage. It will be joined by two other ships in the weeks ahead.

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Air France estimates strike cost at US$632m

Struggling French flag carrier Air France on Wednesday (Oct 8) said last month's two-week strike would have an impact of around €500 million (US$632 million) on its bottom line for this year.

Taking into account the lost revenue during the strike and the knock-on impact of disgruntled passengers staying away in future, the impact over 2014 will be "in the order of €500 million", said financial director Pierre-Francois Riolacci. "We need a few more days to finalise completely our estimates. But we think the impact on the third quarter will be in a range of €320 to €350 million," Riolacci said.

He warned the knock-on consequences were harder to put a figure on but said there would be an impact both on the last quarter of the year and the first part of next year as Air France, Europe's second-largest airline, battles to win back its reputation.

"We made some savings (like in aviation fuel) because the planes were not flying," he noted. "On the other hand, we had additional costs: putting passengers up, compensation or buying tickets from our competitors for some of our passengers, which we did not always get at the best price," he said.

Pilots at Air France waged the longest strike in the company's history between Sep 15 and 28 in protest at the group's plans to expand its low-cost subsidiary Transavia France. The airline sees the development of Transavia France as crucial to compete in the cut-throat world of aviation which has been revolutionised by the arrival of low-cost operators like easyJet and Ryanair.

But the pilots, some of whom earn up to €250,000 per year, were worried their flights could be replaced by Transavia services or that the company would seek to use the cheaper Transavia pilots.

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Virgin Atlantic to shut down UK short-haul service

Richard Branson's Virgin Atlantic will shut its short-haul domestic service in Britain, the airline said on Monday (Oct 6), partly owing to a lack of demand for connections with its long-haul operations.

The carrier said in a statement that it will cease its so-called "Little Red" service next year.

The operation was launched in March 2013 and has since flown more than one million passengers between London, Manchester and Scotland.

"Demand has been predominantly from point-to-point customers rather than connecting traffic," the airline added in the statement.

"High levels of connections onto Virgin Atlantic's long haul network have always been important to the success of Little Red."

The company said daily services between London Heathrow and Manchester will continue until the end of March 2015, while flights between London Heathrow and Edinburgh and Aberdeen will continue until September 2015.

British tycoon Branson owns 51 percent of Virgin Atlantic, with the rest in the hands of US group Delta Air Lines.

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Japan's Skymark surges on possible Airbus 'penalty deal'

Shares in Japan's Skymark Airlines soared Friday (Oct 3) after the company said it was negotiating with Airbus to reduce a breach-of-contract penalty tied to the collapse of a US$2.2 billion jet order.

The carrier's Tokyo-listed shares closed 8.37 per cent higher at ¥220, after jumping as much as 15 per cent earlier in the day on reports that a deal was imminent. "Our company is negotiating with Airbus, and we're aiming to reach an accord by the end of October," Skymark said in a statement.

But the firm declined to comment on a report in the Asahi newspaper which said Airbus had agreed to cut the penalty to about ¥20 billion (US$183 million), well below its original ¥70 billion demand - which some feared would put Skymark out of business.

The struggling airline was sideswiped when Airbus in July said it had cancelled its US$2.2-billion jet order, apparently over concerns about getting paid. Skymark shares had lost more than 40 per cent at one stage following the collapsed deal.

At the time the carrier said Airbus had threatened it with "overpriced" penalties and called on it to merge with a bigger airline, a proposal which Skymark's top executive flatly rejected. The deal for six Airbus A-380 jets was signed in 2011, but Skymark missed a payment deadline earlier this year.

The carrier was born out of deregulation measures in the 1990s which were aimed at challenging All Nippon Airways and rival Japan Airlines' control of the market. However Skymark has been reporting ballooning losses as new entrants into the budget sector hurt its business.

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Five SIA crew members involved in NZ car crash

Five Singapore Airlines (SIA) crew members were involved in a car crash in Christchurch, New Zealand on Wednesday (Oct 1) morning, with one of them in critical condition and another seriously injured, according to The New Zealand Herald.

The collision at 10.40am local time in Rolleston, about 22km southwest of Christchurch, was between the car with the crew members and a 4x4 vehicle towing a horse float – a trailer used for transporting horses.

Responding to TODAY’s queries, an SIA spokesperson said all five crew members were sent to the hospital for treatment.

“Our immediate concern is for the welfare of our staff and we shall accord them and their families the highest standard of care and assistance,” the spokesperson added.

A statement posted on the New Zealand police department’s website said five ambulances and three response vehicles were dispatched to the scene.

The Fire Service helped to free at least one person, while four people were taken to Christchurch Hospital with two in a serious condition and two with moderate injuries, it added.

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