Next-generation Airbus A350 plane gets EU green light

EU authorities gave the green light Tuesday (Sep 30) for Airbus's new long-haul A350 plane to enter service, opening the way for delivery of the next-generation aircraft to first client Qatar Airways.

Designed to help the European manufacturer catch up with its American rival Boeing in the market for long-haul, fuel-efficient planes, the A350-900 makes extensive use of light composite materials which reduce fuel consumption and costs.

"Airbus demonstrated that the aircraft complies with the regulatory safety and environment requirements defined by EASA (the European Aviation Safety Agency) for the European Union," the EU aviation watchdog said in a statement. Airbus has positioned its A350 between the Boeing's popular 777 and its 787 Dreamliner, hoping to eat away at both planes' markets.

"Every new type of aircraft needs to obtain a ... certificate before it can be delivered to an airline," EASA said in its statement. "This EASA certificate guarantees that the A350-900 is set for delivery from a safety and environment point of view."

The plane can carry 315 passengers over a distance of 14.500km, and to date, 750 A350 aircraft have been ordered by 39 customers worldwide. In August, Airbus had announced that the plane had completed its "route proving", a round-the-world in 20 days trip aimed at testing the aircraft's readiness for airline operations, during which it flew 180 hours and stopped off in 14 airports.

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Finnair says Airbus A350 could reach Asia skirting Russia

Finnish airline Finnair said on Wednesday (Aug 13) that the Airbus A350 could skirt Russia in its Europe-Asia routes if Moscow carries out a threat to close its airspace to European flights.

"The additional freight capacity of this airplane makes me think that it has the reach, that it's technically possible," Finnair chief executive Pekka Vauramo said at a press conference in Helsinki.

Finnair presented the A350 XWB after one of the new European aircraft landed in Helsinki on Tuesday evening.

The Finnish company, which has ordered 11 planes, will be the first European airline to operate the A350 XWB. The first delivery is expected in late 2015.

In response to the economic sanctions from the West, Russian Prime Minister Dmitry Medvedev threatened on August 7 to prevent airlines with routes between Europe and Asia from flying across Russian airspace in Siberia, which is the shortest distance.

Vauramo said he was unsure of the seriousness of the threat. "I don't want to speculate about Russia ... We know too little about it," he said.

Finnair relies heavily on Asia for its future plans. According to Vauramo, the strategy is to "double the revenue coming from Asian traffic by around 2020" compared to 2010.

The Finnish airline plans to have 46 spacious seats in business class and touch screens in all economy class seats. According to the Finnish interior designer in charge of the first aircraft, Vertti Kivi, the A350 will feature a "dynamic lighting, with a colour and atmosphere that matches the time, the destination and the season".

"The extra-large cabin permits to offer the passengers extra comfort," Airbus spokesman Mike Bausor said.

In order to stay in profit, Finnair is trying to cut costs, which remain high compared to the competition. The company has tried for several months to reach an agreement with its staff to lower salaries, but the efforts have so far proved fruitless.

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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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Airbus reports profit leap, shares jump

Airbus Group, formerly EADS, reported on Tuesday a near doubling of quarterly net profit, a rise in sales driven by helicopters, but a fall in new orders after an exceptional performance last year.

Net profit for the quarter rose by 93.0 per cent to 439 million euros (US$604.5 million).

The price of shares in the group rose by 4.91 per cent to 51.92 euros in early trading in Paris. The overall French market as measured by the CAC 40 index was up 0.20 per cent.

The value of orders taken fell by more than half to 21.1 billion euros from 49.5 billion euros.

This reflected orders taken for 103 aircraft on a net basis, after allowing for cancellations.

That was far short of the figure of 410 in the first quarter of 2013 which was an exceptional year for aircraft manufacturers, notably Airbus and its main US rival Boeing, as airlines rushed to renew their fleets after the financial crisis and in readiness for a forecast boom in air travel, mainly in emerging economies led by countries in Asia.

Airbus has already said that it will not be able to match the 2013 figures for orders taken.

However, Airbus Group held to its forecast that orders taken this year would exceed the number of aircraft delivered, and that its operating margin would be 7.0-8.0 per cent in 2015.

In the first three months of the year the group achieved an operating margin of 5.5 per cent.

Sales revenue by the group, which builds mainly Airbus airliners but also has wide interests in the aerospace sector from making helicopters to satellite equipment, fell by 5.0 per cent in the quarter from the equivalent figure last year to 12.6 billion euros.

Meanwhile, Airbus Helicopters, formerly Eurocopter, increased its number of orders taken by half.

Airbus Helicopters also increased the number of aircraft delivered to 74 from 58, and so raised sales by 14.0 per cent.

The Airbus Defence and Space division, grouping the two activities formerly known as Astrium and Cassidian, held new orders at about the previous level.

The group said that the overall performance meant that earnings per share had doubled from 28 euro cents to 56 cents.

Chief executive Tom Enders said that the group was holding to its forecasts but still had much to do by the end of the year, with the emphasis being on applying restructuring programmes.

The company is due to put its new A350 airliner into service by the end of the year. This aircraft is a long-haul plane with a fuselage made of composite materials.

The group changed its name to Airbus Group at the beginning of this year in a major refocusing of activities after a failed attempt to merger with British group BAE Systems.

It is now restructuring its defence and space activities to face increased international competition at a time of cuts in defence budgets by governments in the West.

At stock brokers Aurel BG in Paris, analysts said that Airbus had published solid results with sales exceeding expectations. They noted that the group had fallen behind Boeing in recent months but remained confident.

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Airbus Group sees profits jump in 2013

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

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

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

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

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

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

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

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Airbus expects more wide-bodied aircraft for Asia Pacific carriers

Airbus forecasts that Asia Pacific carriers will need more wide-bodied aircraft over the next 20 years, led by an increasingly affluent middle class in Asia.

And as air traffic looks set to double every 15 years, other non-Asian airlines are also keen to capture some of that traffic.

Vietnam's VietJetAir just firmed up its order for 63 A320 aircraft on Tuesday to meet the rising demand for air travel in Vietnam.

Founded in 2011, the Vietnamese Airline plies domestic routes as well as international routes to Bangkok, Seoul and Kunming in China with its current fleet of 11 leased planes.

And that pace shows no signs of slowing down across Asia.

Airbus say Asia Pacific will take delivery of 10,940 aircraft over the next 20 years, valued at US$1.8 trillion.

With air traffic set to double every 15 years, Airbus forecasts that 37 per cent of all new aircraft will be delivered to the Asia Pacific region over the next 20 years.

And with increasing urbanisation, Airbus believes there will be greater demand for wider body aircraft to transport more people more efficiently.

Certainly Airbus' ultra-wide A380 aircraft has proven a hit with Middle Eastern customers, a trend the company hopes will be followed by Asian carriers.

Mr John Leahy, COO of Airbus, said: "In terms of our backlog right now, it's the Middle East, but we are well represented out here. We have China Southern, We've got Singapore, Qantas, Malaysian and Thai and there are quite a few airlines here operating the A380."

But on Monday, Airbus' biggest competitor claimed otherwise, predicting smaller, single-aisle craft would prove most popular in Asia.

It's a theory some industry analysts agree with.

Mr Shukor Yusof, analyst at Standard & Poor's Capital IQ, said: "Notwithstanding demand for A380s, which I think will remain flat and stagnant, the way to go for Airbus is to really push for the A350 which in our view is the airplane of the future with its lower operating cost and lower maintenance, and its very fuel efficient."

Big planes or not, Middle Eastern carriers are hoping to cash in on the growing Asian market.

Mr James Hogan, CEO of Eithad Airways, said: "Asia is very important. There are strong links between Singapore and Abu Dhabi daily, and you see good traffic flow coming out of the Gulf states to Singapore. We also operate twice a day down to Jakarta, we codeshare and work with Garuda, and we have three flights a day to Bangkok. We have a good presence in Asia and we continue to build with our codeshare partners."

Still, some analysts warn of overcapacity in the region as deliveries accelerate in this region.

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SIA resumes flight training for grounded cadet pilots

Singapore Airlines has resumed flight training for about 80 cadet pilots who were grounded last year amid a business downturn.

Among the measures to manage excess crew, the recruits were pulled out midway through their training and assigned administrative and other non-flying related duties.

This went on for six to seven months on average, and up to eight months for some of the cadets.

Flight training resumed last week, The Straits Times found out.

It will take about 16 months for the cadets to complete their course and become first officers, SIA spokesman Nicholas Ionides said.

Meanwhile, the airline is still not accepting fresh recruits.

It has not been decided when the hiring freeze, which was imposed in early 2012, will be lifted, Mr Ionides said.

Last year, SIA, which now has about 2,200 pilots, let go of 76 expatriate pilots who were on three-year contracts.

Pilots were also asked to consider unpaid leave.

The decision to resume flight training for the cadet pilots signals that things may be picking up in the sluggish premium air travel market, industry analysts said.

Captain William Teng, chairman of the SIA branch of the Air Line Pilots Association-Singapore (Alpa-S), said: "It is a positive development for pilots in general and for the cadets in particular."

Going forward, SIA is expected to take delivery of its first Airbus 350 twin-aisle plane next year.

The airline has an order for 40 A-350s and five more Airbus 380 superjumbos.

In its latest update on the premium air travel market, the International Air Transport Association (Iata) said that the downward pressure on demand in the segment has eased in recent months.

While challenges remain, global business confidence is the strongest it has been since the first quarter of 2011, with Europe and the United States - both key markets for SIA - showing signs of economic improvement, Iata said.

As it holds out for full recovery in the high-end long-haul segment, SIA is preparing to launch its new Indian carrier later this year. The New Delhi-based start-up is a joint venture with Indian conglomerate Tata.

SIA also continues to focus on the more buoyant regional air travel and low-cost sector.

Its subsidiary, SilkAir, will take delivery of its first new Boeing 737 jet - part of an order for 54 new Boeing planes - in a few weeks' time.

Long-haul budget arm Scoot, which started operating about 18 months ago, has announced plans to set up a new carrier in Bangkok jointly with Thai Nok Air.

NokScoot, which will be 49 per cent owned by Scoot and 51 per cent by the Thai carrier, is expected to start flying in the middle of this year.

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Kuwait Airways to buy 25 planes from Airbus

Kuwait Airways Co has signed a Memorandum of Understanding (MOU) with Airbus to buy 25 planes with an option for 10 more and to lease 12 planes, its acting chairman said on Tuesday.

"We have signed a Memorandum of Understanding with Airbus to purchase 25 planes to replace the existing ageing fleet," Jassar al-Jassar told a press conference.

He declined to reveal the value of the deal citing a confidentiality clause but local media, when talks of the deal first surfaced in May, estimated the cost at around $3 billion.

State-owned KAC, which is undergoing privatisation, signed a letter of acceptance for the deal in May.

He said the airline has obtained all the necessary authorisations from the government.

Financial consultant for the deal Amani Buresli, a former minister of commerce, said the agreement includes the purchase of 15 A320neo and 10 A350-900 planes with the option to buy 10 more, five from each category.

She said delivery of the purchased planes would start in 2019 and the last planes would be delivered in 2020.

In the meantime, KAC will lease 12 planes, seven A320 and five A330-200, from the European manufacturer.

The final contract for the deal, the first plane order by KAC in more than 20 years, will be signed after a month, she said.

Part of the financing will be done through a syndicated loan by international and local banks and for the other part KAC will issue bonds or Islamic Sukuk, she said.

In addition to modernising its fleet, the loss-making KAC wants to make the airline profitable before offering a local or foreign investor a 40 percent stake.

Kuwait Airways has posted losses in all but one of the past 21 years, amounting to a total of more than $2.7 billion, which has been covered by the government.

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Boeing dominates Airbus with US$101.5b orders at Dubai show

US aerospace giant Boeing on Wednesday announced up to US$101.5 billion in aircraft orders at the Dubai Air Show, as its new 777X model propelled total demand to more than twice that booked by European rival Airbus.

More than US$95 billion of the Boeing orders were for the 777X long-haul aircraft, making it the "largest product launch in commercial jetliner history by value", said the firm.

European giant Airbus meanwhile totted up orders worth US$44 billion, with Emirates placing the biggest by value worth US$20 billion for 50 A380s.

The total takings of about US$145 billion by the two rivals at Dubai were about twice those recorded at the Paris Air Show in June, when Airbus announced US$39.3 billion in orders and Boeing unveiled US$38 billion for a total of about US$77.0 billion.

Boeing's performance in Dubai was underpinned by demand for its new 777X, which was snapped up by Middle Eastern airlines.

Dubai's flagship Emirates placed an order worth US$55.6 billion for 115 777-9X aircraft designed to carry more than 400 passengers. It also ordered 35 777-8Xs, which has a capacity of 350 passengers.

Etihad Airways ordered 17 of the bigger model and eight of the smaller 777-8X, while Qatar Airways bought 50 777-9Xs worth US$18.9 billion.

Boeing claims that the aircraft, which is to enter service around 2020, would be 12 per cent more fuel efficient than the Airbus A350.

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Boeing, Airbus clinch mega orders at Dubai

Dubai Airshow took off on Sunday with huge aircraft orders and commitments worth around $141.5 billion for Boeing and Airbus from Gulf carriers, with the US manufacturer well in the lead.

The biennial show began brightly for Boeing's 777X, a long-range wide-bodied airliner featuring lower fuel consumption and composite wings.

The new 777 is scheduled to be operational in 2020.

Etihad Airways began the show with an $18.2-billion order for Boeings including 25 777Xs and one 777-200 freighter, Boeing said.

The deal also included an order for 30 787 Dreamliners, making the fast-growing carrier the largest single customer for the medium-body plane.

The Abu Dhabi carrier also announced it was taking an option to buy another 26 aircraft from Boeing.

The total value of the order, including engines and options, amounts to $25.2 billion, according to Etihad.

Emirates Airline followed shortly afterwards by placing orders with both the rival US and European manufacturers, in twin deals valued at $99 billion.

Of this sum, 80 per cent is destined for Boeing's coffers if commitments are confirmed.

The Dubai-based airline ordered 150 777Xs -- 35 777-8Xs and 115 of the 777-9X variant.

Boeing said the Emirates orders were commitments worth $55.6 billion.

The Middle East's largest carrier also boosted the Airbus sales sheet with a firm order for 50 A380 superjumbos worth $20 billion at book value, in the double-decker's first sale this year.

The order cements the status of Emirates as the single largest operator of the long-haul airliner, its chief Sheikh Ahmed bin Saeed Al-Maktoum said.

"Emirates has understood from the start the A380's advantages in terms of efficiency, economics and passenger comfort," Fabrice Bregier, Airbus chief and president, told the signing ceremony.

Airbus has been struggling to sell its A380 superjumbo.

Sales of the world's largest commercial aircraft suffered in 2012 after hairline cracks were discovered on A380 wings. Just nine were sold last year, down from an initial order of 30.

Airbus also clinched a $19-billion deal with Etihad, which ordered 87 aircraft including 50 extra-wide-body A350 XWBs.

The order comprises 40 long-haul A350-900s, 10 A350-1000s, one A330-200 freighter, in addition to 26 A321neo and 10 A320neo single-aisle planes, in addition to an option for 30 more aircraft.

Emirates budget sister company also made a commitment to buy up to 100 Boeing single-aisled 737 MAX and 11 Next-Generation Boeing 737-800s, in a deal valued by Boeing at $8.8-billion.

Qatar Airways also chipped in by signing a letter of intent to buy 50 Boeing 777Xs worth $19 billion.

The Doha-based airline said it had also ordered five A330 freighters from Airbus, valued at about $1 billion according to list prices.

The order was accompanied by an option to add eight airliners, which would put the overall price of the deal at $2.8 billion, chief executive Akbar Al-Baker said.

The Qatar Airways chief praised Boeing's 777 long-haul workhorse as he made a surprise appearance at the joint Emirates-Boeing briefing.

The Triple Seven has been a bestseller since it was launched in the 1990s, with 1,473 sold by November 12.

Boeing is fielding the 777X to counter Airbus's long-haul A350-1000.

This aircraft is anticipated to enter service in 2017 with a passenger payload of 350, threatening Boeing's predominance in the long-haul market.

Etihad on Sunday also announced it is acquiring a 33.3 per cent stake in Swiss carrier Darwin Airline which it plans to rebrand as Etihad Regional after the deal receives regulatory approval.

At the 2007 Dubai Airshow, sales of $155 billion were announced, and analysts have projected that orders this time could nudge that record.

In June, the Paris air show at Le Bourget racked up $115 billion in announced sales at catalogue prices.

The 13th Dubai Airshow, which runs until Thursday, is being held for the first time at the just opened Al-Maktoum International, the emirate's second airport and touted to become the world's biggest when complete.

With some 150 aircraft on the tarmac and 1,000 exhibitors, the show cements the Gulf region's hard-won position as the global hub for 21st century travel, spearheaded by booming airlines whose reach encompasses the world.

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Airbus urges Berlin to unfreeze 600m euro loan payment

Airbus on Saturday urged the German government to pay out a promised final loan instalment of 600 million euros (US$830 million) for the construction of the A350, after the aircraft manufacturer said it had created German jobs in return.

Airbus chief operating officer Guenter Butschek told the German daily Tagesspiegel that the firm was offering 4,000 jobs - 250 per cent more than originally planned - in a bid to unfreeze the last loan tranche, which has been blocked for months by Berlin pending agreement on German-based manufacturing and research jobs.

"We have clearly kept our promises and are of the opinion that there is no reason to withhold the remaining amount," Butschek was quoted as saying. "The ball is now in the government's court."

But he added that Airbus, a subsidiary of France-based EADS, was capable of completing the A350 development programme even without the outstanding loan amount.

"We have proved with our first flight, and with 400 flight hours since then, that we can finance and develop such a project according to plan, even without the rest of the government loan."

The first A350 XWB wide-bodied passenger jets are scheduled to be delivered by the end of next year. The next-generation plane carried out its first test flight in June.

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Malaysia's AirAsia X ends flat on market debut

Shares in long-haul budget carrier AirAsia X ended flat on their market debut in Malaysia on Wednesday, despite the firm's chief executive promising a spending spree on new planes to boost frequency and target more routes.

The carrier was trading at an intra-day high of 1.28 Malaysian ringgit, up from an initial valuation of 1.25 ringgit, but at close failed to match overall gains in the wider market, which was up 0.13 per cent.

"I think it looks like we priced it right," chief executive Azran Osman-Rani said at a news conference.

He added that the Malaysia-based carrier would use cash from last month's $308.6 million initial public offering to increase its fleet and seek out new destinations.

"Planes, planes, planes. Bigger network, more destinations, more frequencies," Azran said.

The carrier, founded by aviation tycoon Tony Fernandes, has said the funds would largely be used to triple its fuel-efficient Airbus fleet from the current 10 aircraft and repay bank loans.

AirAsia X will take delivery of 23 Airbus A330-300 planes over the next four years with a further order for 10 A350-900s as it aggressively expands routes to meet demand in the Asia-Pacific.

The International Air Transport Association said the region is the world's fastest growing market, with passenger traffic more than doubling since 1998, despite fuel costs surging 55 per cent in the past seven years.

The airline, launched in 2007, reported a net profit of 33.8 million ringgit ($10.8 million) for the year ended December 31, 2012.

Charting an ambitious growth path, AirAsia X plans to increase services to existing destinations and carve out lucrative new routes in Australia, Japan and China.

Analysts said the successful listing of the long-haul arm of AirAsia -- Asia's largest budget airline by fleet size -- showed that a low-cost long-haul business model was viable.

Total demand for the institutional tranche of the public offering was more than 10 times the number of base shares available, the company said.

"Investors may want to pay close attention to this stock because it is one of a handful of airlines in the world that has been innovative and committed to opening new markets," said Shukor Yusof, a Singapore-based aviation analyst with Standard & Poor's.

He told AFP that AirAsia X's listing would encourage other regional carriers, such as fast-growing Indonesia-based Lion Air to follow suit.

The key challenge AirAsia X would face was keeping a lid on fuel costs, which account for about 49 per cent of operating costs, he said.

"The main challenge obviously is to rein in costs. Jet fuel price has started to increase due to uncertainties in the Middle East," Shukor added.

AirAsia X's IPO comes as at a time when several companies in the region have withdrawn from such a move.

In June alone, four companies in Hong Kong either dropped IPO plans or cut their their sizes.

Ooi Chin Hock, a brokerage dealer with Malaysia's M&A Securities, said AirAsia X's "strong management and credible growth plans" was attracting investors at a time when regional markets are choppy.

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Ouch, a punch in the face for Tony even though he has given big plans ahead of the launch of the IPO. Now will it stay limp or have a revival in coming weeks? The market is very volatile at the moment and it won't be easy for it to perform.

New Airbus plane takes off with big orders at Paris Air Show

The Airbus next-generation A350 plane took centre stage at the Paris Air Show on Wednesday, winning multi-billion-dollar deals ahead of a much-anticipated possible fly-over.

The news comes just days after the new plane took to the skies in its first ever test flight on Friday, stealing the limelight before the start of the air show - a key event where Airbus and Boeing compete fiercely for plane orders.

The European plane maker is currently ahead of its arch-rival at the show - US$53.2 billion in new plane orders or agreements for Airbus versus US$45.2 billion for Boeing.

Air France-KLM on Wednesday confirmed an order for 25 A350 planes - which make extensive use of lighter composite materials to reduce fuel costs - in a deal worth US$7.2 billion at catalogue prices.

"Despite the difficulties that Air France-KLM is facing, we are in significant good shape to be able to plan for the renewal of our long-haul fleet for the long term," said Alexandre de Juniac, head of the airline group.

The agreement comes with an option for a further 25 planes, and the aircraft will come into service in 2017, he told reporters. The airline group had first announced its intention to buy the planes in September 2011.

SriLankan Airlines, meanwhile, took an option to buy four of the new planes - an option expected to be exercised within two weeks - and placed six firm orders for Airbus's popular A330 aircraft in a deal worth US$2.6 billion at list prices.

The A350 took off on Wednesday on its second test flight in the southwestern French city of Toulouse, where Airbus is headquartered, and if all goes well could fly over the Paris Air Show on Friday.

The plane pushed Boeing out of the limelight on Wednesday, but the US firm had stolen the thunder on Tuesday with the launch of a long version of its next-generation Dreamliner - the 787-10.

Intended as a message that it is firmly back on track after a slew of technical problems forced the grounding of its entire Dreamliner fleet worldwide earlier this year, Boeing announced more than 100 orders for its newest plane.

On Wednesday, it said plane leasing firm CIT Aerospace had ordered 30 of its new, medium-haul 737 MAX planes in a deal worth US$3 billion at catalogue prices.

Ryanair also confirmed a huge order for 175 medium-haul 737 planes worth US$15.6 billion, and Czech private airline Travel Service announced a commitment to buy three of its 737 MAX aircraft valued at US$301.5 million.

The 737 MAX is a modernised version of Boeing's older 737 and has yet to come into service. It is part of a new generation of planes emerging onto the market which consume less fuel and enable airlines to reduce costs.

Other smaller competitors have also made a mark at the air show - the world's biggest - with ATR, a joint venture between European aerospace giant EADS and Italy's Finmeccanica, announcing big orders.

On Tuesday, Nordic Aviation Capital ordered 35 ATR-600 aircraft, with an option on 55 more in a deal worth US$2.1 billion, and the firm announced another US$482-million contract Wednesday.

Brazil's Embraer has also come up trumps with the launch of a new family of regional jets and 100 orders, with 215 other intentions to purchase the aircraft.

But the Paris air show, in its 50th edition this year, is not just about commercial battles, with the long-awaited A400M military transport plane taking to the skies as well as Russia's Su-35 fighter jet.

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Airbus to have the last laugh? Not just yet when Boeing introduced the 787-10 during the show. Ryanir's order just threw the battle right to the wire. We won't know the victor until the very last day.

Boeing launches new Dreamliner with over 100 orders

Boeing launched the biggest version of its Dreamliner plane at the Paris Air Show on Tuesday with over 100 orders worth about $30 billion and a clear message - after a run of technical blows, the US firm is back on track.

The announcement failed to steal a march on arch-rival Airbus on the second day of the show with the European plane maker soaring ahead on new plane orders or agreements worth $36 billion compared to $26.2 billion for the US firm.

Smaller regional plane makers such as European manufacturer ATR also made their presence felt with multi-billion-dollar contracts propelled by demand and opportunities in Asia and South America.

"Boeing today officially launches the 787-10," Boeing head Jim McNerney told reporters, with commitments to buy the new aircraft from United Airlines, Singapore Airlines, British Airways, and leasing firms ALC and GECAS.

Boeing did not say how much the deals for the 787-10 -- the biggest of the three fuel-efficient Dreamliner planes -- were worth, but each aircraft costs $290 million at catalogue prices.

That would mean the contracts were worth $29.6 billion, although hard negotiation in the airline industry usually results in big discounts from list prices.

ALC also said it would buy three 787-9 planes and Korean Air ordered 11 long-haul aircraft.

The announcements put Boeing firmly back in the running after a slew of recent technical problems forced the grounding of the entire Dreamliner fleet worldwide for three months in a huge blow to the US firm -- and its bosses.

"If I took off my shirt you'd see a lot of scars from the 787," Patrick Shanahan, general manager of airplane programmes, said recently in Seattle where Boeing factories are based.

Ray Conner, head of Boeing's commercial airplanes division, told reporters earlier this week that executives at the firm were "battle-tested" after the experience.

In just over four years, Boeing should have all three versions of the Dreamliner on the market and possibly two newer versions of the 777, against just three types of A350, Airbus's direct competitor.

Undeterred, the European plane maker got off to a roaring start at the air show -- though most of its orders so far arise from the medium-haul market, which it already dominates.

Low-cost airline easyJet on Tuesday announced a deal to buy 135 of the Airbus A320 passenger planes -- one of the firm's most popular and profitable models -- including 100 of new generation and more fuel-efficient neo aircraft.

And Syphax Airlines, a new carrier based in Tunisia, signed an agreement to buy three of Airbus's new A320neo planes and three of its classic A320 aircraft.

But the European firm is seeking to unseat Boeing in the more lucrative long-haul segment with its own next-generation A350 plane, which flew for the first time on Friday ahead of the show, where it could make a brief fly-by.

The aircraft -- which like the Dreamliner makes extensive use of lighter, carbon-based composite materials that reduce fuel consumption -- will seek to compete with the 787 as well as Boeing's older 777 model.

So far, though, there have been no new orders for the A350 at the air show.

Overall, if catalogue prices are used as a barometer and only firm new orders and agreements counted, Airbus has taken the lead with orders worth $36 billion so far, compared to $26.2 billion for Boeing.

Other smaller competitors in regional transport markets have also made a mark, with ATR -- a joint venture between European aerospace giant EADS and Italy's Finmeccanica -- announcing one of its biggest orders.

Leasing firm Nordic Aviation Capital (NAC) signed up for 35 ATR-600 aircraft built by the firm, with an option on 55 in a deal worth $2.1 billion, ATR said.

Brazil's Embraer has also come up trumps with the launch of a new family of regional jets and 100 orders, with 215 other intentions to purchase the aircraft.

ATR said there were numerous opportunities in emerging markets in Asia and South America, adding that 30 percent of passengers worldwide travel on distances inferior to 550 kilometres (342 miles), which regional planes cover.

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The Paris Air Show is piling on the orders flick and fast on all plane manufacturers, from small boys like Embraer to bigger ones like Airbus and Boeing. There is still a long way to go before the show ends, and it is still unsure which one of the two biggest plane makers will be the ultimate winner. The key shall lay in the hands of the A350 and B787.

Boeing-Airbus dogfight dominates top airshow

The world's biggest air show takes to the skies on Monday, with a battle between Boeing and Airbus for orders in the lucrative market for wide-body planes set to dominate the Paris event.

European manufacturer Airbus managed to steal a march on its American rival before the show -- at Le Bourget just north of Paris -- with a successful maiden flight of its new A350 long-haul plane.

Airbus is pinning its hopes on the fuel-efficient A350 to compete in the long-haul sector after gradually winning more than half of the market for medium-haul, single-aisle planes that carry an average of 150 passengers.

The A350 is expected to conduct a fly-by of the air show towards the end of the week, hoping to woo potential customers.

During the show, famous for high-profile announcements of big-money deals, Airbus hopes to add a slew of orders for the plane -- set for delivery at the end of 2014 -- to confirmed contracts with Qatar Airways, British Airways and Hong Kong's Cathay Pacific.

Nevertheless, Boeing is also entering the show in bullish mood as it seeks to move on from its difficulties with the trouble-prone 787 Dreamliner.

Technical problems with overheating batteries forced the worldwide grounding of the Dreamliner fleet in a major setback for the Seattle-based manufacturer.

Boeing will showcase the Dreamliner at the event and the firm is expected to announce the launch of its 787-10X, a longer version of the original Dreamliner, which can accommodate up to 330 passengers.

The US firm is also set to announce in the coming months an up-to-date version of its existing 777, with wings made of fuel-saving composite material like the Dreamliner.

Boeing boss Ray Conner said it was going to be a "great competition" and said that airlines would "benefit from the fact that both companies are going to have a good wide-body product line."

"I think we have the better products and at the end of the day, hopefully the better product wins," Conner told reporters on Sunday.

Airbus has positioned the A350 for the market between the popular 777 and the 787, hoping to steal share away from both planes.

The European firm argues that its craft will consume six percent less fuel than the 787 and a quarter less than the 777.

Boeing's strategy, on the other hand, is to offer its clients a wider choice of long-haul airliners but Tom Enders, boss of Airbus parent company EADS, said "the jury was still out" in terms of the firms' respective market situation.

"It's premature to draw any conclusion and it's not necessarily the one who has more products who is also better positioned on the market," said Enders.

And analysts warned that Boeing's recent technical troubles may yet haunt the US firm.

"Airbus can, and will, argue that Boeing's ability to execute is questionable and that the A350 is a better bet in terms of timing and availability," said Richard Aboulafia, a US-based aviation expert.

Another expert, Christophe Menard, from Kepler Capital Markets in Paris, also noted that Airbus had developed the A350 faster than the Dreamliner which suffered three years of delays before finally taking off.

At last year's Farnborough show in Britain, Boeing came out on top, securing orders worth around $35.5 billion, more than double the Airbus haul of $16.9 billion.

However, while the big two still dominate the shows, other players are entering the market, with Canada's Bombardier hoping to win orders in the medium-haul segment with its CSeries, a plane with 110 to 130 seats.

"The duopoly is definitely over," acknowledged Randy Tinseth, marketing vice-president at Boeing.

The Paris air show, in its 50th edition this year, is not just about commercial battles and the long-awaited A400M military transport plane will also likely provide a highlight as it takes to the skies.

The market in unmanned surveillance drones will also be in focus after three top European defence companies urged the creation of a European programme to manufacture the craft, currently available only from Israel or the United States.

The Paris Air Show runs from June 17 to 23. It is expected to welcome some 350,000 visitors through its cavernous show halls.

The event, which has become the global aviation industry's largest in terms of surface and number of exhibitors, will throw open its doors to the public on June 21 after first welcoming professionals.

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 The battle is sure to heat up now that Airbus has successfully tested the A350 on its maiden flight without any issues at hand. It was the Dreamliner's show in 2012 but I reckon it will be the A350's turn this year. Its numbers and fuel efficiency sure looks very attractive.

New Airbus A350 comes through first test flight

Airbus's new A350 plane glided smoothly through its maiden flight on Friday, leaving company executives relieved and brimming with confidence for the battle with Boeing that lies ahead.

Designed to help the European manufacturer catch up with its American rival in the market for long-haul, fuel-efficient planes, the new Airbus completed a faultless test flight from an airport close to the company's headquarters in southern France.

After just over four hours in the air, the new plane touched down to jubilant cheers from thousands of Airbus employees and aviation enthusiasts who had assembled to watch the landmark flight.

"We were on time and everything went perfectly," relieved Airbus boss Fabrice Bregier said after watching his "new baby" cruise past the crowds on the ground at a height of just 100 metres (yards) before looping round against clear blue skies and coming in to land.

Although the flight was only the first in an intensive year-long testing programme, Airbus needed Friday's showcase to pass off without any hiccups in order to maximise the potential for further orders at next week's Paris Air Show.

"I'm confident it will be a roaring success in the market," declared Tom Enders, the chairman of Airbus's parent company EADS.

Peter Chandler, Airbus's chief test pilot who was at the controls when the plane took off for the first time, sounded like he had just climbed down from a thoroughbred.

"We received the airplane from the final assembly line almost exactly two weeks ago and for the last week or so it has been quite obvious the plane is ready to fly and wanting to fly," the British pilot said.

"That was obvious this morning as it was clearly much happier in the air than it has been running down the runway and stopping all the time."

Boeing expressed its congratulations to its rival. "A new airplane is a very complex endeavour and this is a milestone the industry can celebrate together," it said.

Much like its competitor - Boeing's new 787 Dreamliner, in service since September 2011 - theA350 makes extensive use of light composite materials that significantly reduce fuel consumption and costs.

Arnaud Verneau, one of the flight engineers on board on Friday, revealed that the flight had been smoother and quieter than anyone had hoped for.

"We were even able to put it on auto pilot on after two hours, which we had not anticipated doing," he said, adding that the plane's lighter materials had not resulted in more noise inside the cabin.

"We will see as the tests progress but for the moment, it is the same (as a traditionally constructed plane)," he said.

More than 10,000 hours of ground tests had been done on the airliner before the flight, and over the next year five test planes will criss-cross the globe in the warmest and coldest regions, at low and high speed.

If all goes well, first delivery is expected at the end of 2014.

Confirmed customers so far include Qatar Airways, British Airways and Hong Kong's Cathay Pacific, and Airbus is hoping for a slew of new orders next week.

Boeing still dominates the long-haul market, and Airbus has positioned its A350 between the US firm's popular 777 and its new 787, hoping to eat away at both planes' markets.

The test flight may cast a shadow over Boeing at the Paris Air Show, where the US firm is hoping to prove its Dreamliner is back on track after recent technical problems with overheating batteries - one of which caught fire - forced the worldwide grounding of the fleet.

Christophe Menard, aerospace and defence analyst at Kepler Capital Markets in Paris, said that despite its own delays on the A350, Airbus was getting the plane out faster than Boeing managed with the Dreamliner.

Still, the 787 is ahead of the A350 in terms of orders - 890 versus 613.

Airbus says the A350 will consume six per cent less fuel than the 787 and 25 per cent less than the 777, and the year-long test flying phase will help verify that claim, as well as diagnose any problems.

"The risk is they find other things that they hadn't expected," said Nick Cunningham, an aviation analyst at the London-based Agency Partners.

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A new plane, another step forward in aviation. With its touted fuel saving capability, it will be a great saviour to our environment if it is proven to be true. Orders may still be lagging behind the Dreamliner but the Paris Air Show will prove to be a test bed of the saleability for both of them.

Airbus A350 to take maiden flight

French aircraft maker Airbus on Tuesday said its new long-haul carrier, the A350, is scheduled to make its maiden flight on Friday after having successfully passed a series of tests.

The company said in a statement the flight would take place at 0800 GMT at the Toulouse-Blagnac airport in southwestern France, "weather conditions permitting".

Flight test teams were however carrying out a final round of controls before giving "their final green light".

Airbus hopes the 314-seater will compete with Boeing's 787 Dreamliner by being both lighter and more fuel-efficient than previous models.

The first deliveries of A350s to airlines are scheduled for the second half of 2014. So far, Airbus has received 613 firm orders for the aircraft.

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Finally the zorro plane takes flight!! Let's all hope everything goes well and no further delays will occur.

AirAsia X plans huge fleet expansion with US$418m IPO

Malaysian long-haul carrier AirAsia X said on Monday it plans to use funds of up to US$418 million from a public listing to more than triple its Airbus fleet and expand routes to meet demand in Asia-Pacific.

The budget carrier founded by aviation tycoon Tony Fernandes hopes to raise the proceeds in an initial public offering (IPO) ahead of its July 10 debut on the Malaysian bourse.

"The estimated amount based on the 1.45 ringgit (US$0.47) per issue share is between 1.1 billion ringgit and 1.3 billion ringgit," Nazir Razak, head of banking group CIMB which is running the IPO, told reporters after the prospectus launch.

AirAsia X had earlier cited a conservative amount saying the IPO could raise RM859 million (US$277 million) from the sale of 592.6 million new shares for between 1.15 to 1.45 ringgit each.

Analysts have said with last month's general election over, investors are looking for a wide range of stocks in Southeast Asia's third largest economy, sparking a fundraising fever in Malaysia.

AirAsia X chief executive Azran Osman Rani said the proceeds from the IPO would finance fleet and route expansion to cement its position in its core markets in Australia and Asia.

The carrier will take delivery of 23 Airbus A330-300 planes over the next four years beginning in July, while it has also placed a firm order for 10 A350-900s.

Detailing the airline's strategy, Azran said it will bolster its position in lucrative markets like Australia, China, Taiwan, Korea and Japan.

It would be followed by adding frequencies to current routes, opening new destinations including to Adelaide in Australia, Nagoya and Fukuoka in Japan and Busan in South Korea.

AirAsia X previously scrapped London flights because of the European debt crisis and focused on serving routes within Asia-Pacific, where sustained economic growth has swelled the middle class.

AirAsia X currently has 10 Airbus A330-300 planes and serves 14 routes across the region, including destinations in Australia, China, Japan and Saudi Arabia.

Azran also said with the arrival of more aircraft it would allow the airline to set up hubs in Thailand and Indonesia.

A hub in Thailand will allow AirAsia X to operate regular services from Bangkok to lucrative markets such as Australia, Japan and South Korea.

A third of the funds raised in the listing will be used to repay debt while another third is slated for capital expenditure, with the balance going to working capital and listing expenses.

Shukor Yusof, an aviation analyst with Standard & Poor's Equity Research in Singapore, has predicted the AirAsia X listing will be a success and the cash raised was "a good start to fund their fleet expansion".

The International Air Transport Association (IATA) has described Asia-Pacific as the world's fastest growing market, with passenger traffic more than doubling since 1998, despite fuel costs surging 55 percent since 2006.

Meanwhile Fernandes dismissed the threat posed by Malindo Airways, an affiliate of Indonesia's budget carrier Lion Air, citing AirAsia's position as Asia's largest budget carrier with a strong balance sheet.

"We are in a very strong position. It will be tough for new airlines or future entrants into the market," he said.

Malindo Airways, however, has already sparked a price war by offering competitive fares with free snacks and luggage allowance. It currently serves domestic routes.

Profit-making AirAsia was Asia's first low-cost carrier to complete an IPO in 2004.

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AirAsia X survives and is ready to fight all competition in its ways. Fleet expansion with A330 and A350 will mean more ambitious plans ahead but one will also have to see how many of the old fleet are they de-registering upon receiving the new orders gradually. This big order will more or less put them on par with Scoot in terms of fleet size when Scoot starts receiving its order of 20 B787 starting 2014. The days ahead will mean better and more comfortable flights in big aircraft but not pay a premium price for it. The mainstream consumers will gain the most out of it.

Singapore Airlines places US$17b order for Airbus, Boeing aircraft

Singapore Airlines (SIA) announced on Thursday it will buy 30 Airbus and 30 Boeing aircraft in an order worth more than US$17 billion as it seeks to maintain market leadership using the next-generation fuel-efficient planes.

"Singapore Airlines has agreed to order 30 more Airbus A350-900s and 30 Boeing 787-10Xs in deals valued at more than US$17 billion," the airline said in a statement.

For Airbus, the deal includes an option to purchase 20 more planes in addition to the 30 firm orders. The options can be converted to firm orders for bigger A350-1000s, it said.

SIA said the latest Airbus order is SIA's third for the A350-900s and will raise to 70 the number of firm orders in place for the aircraft type.

The agreement with Boeing comprises 30 firm orders and is conditional upon the US aircraft maker formally launching the B787-10X programme.

"Today's aircraft orders are among the biggest in Singapore Airlines' history, helping to ensure that we retain our industry leading position," said chief executive Goh Choon Phong.

"They demonstrate our commitment to the Singapore hub and our confidence in the future for premium full-service travel."

SIA is battling strong competition in the premium segment from Middle Eastern carriers and on the economy side from budget airlines, which have grown in number in the region.

Like other airlines its net profit has also been hurt by the global economic slowdown, which has hit both passenger and cargo demand, as well as high oil prices.

The fresh orders "underscore SIA's response to the Gulf carriers' aggressive approach", said Shukor Yusof, an aviation analyst with Standard and Poor's Equity Research.

"This is perhaps to show that the airline still has the capacity and certainly the deep pockets to mount a challenge for the future," he told AFP.

"SIA has almost no debt. It has cash of over US$3.0 billion, so the war chest is huge and it's one of the most well-managed airlines in the world."

The orders are also a "resounding vote of confidence for the Airbus A350-900, especially coming from an airline that is widely considered the benchmark in the market", Shukor said.

"I think it also assures SIA's commitment of retaining its reputation as market leader in the premium sector as well as its ability to shape the future landscape of next-generation fuel-efficient aircraft," he added.

The A350-900 model is due for its first take-off this summer, with the first deliveries to airlines scheduled at the end of 2014.

Airbus hopes the 314-seater will compete with Boeing's 787 Dreamliner by being both lighter and more fuel-efficient than previous models.

The Boeing 787-10X has still to be launched, with Shukor saying the US firm could announce the launch date at the Paris Air Show in June.

An SIA spokesman could not confirm if the airline is the first to order the Boeing 787-10X.

The Airbus firm orders will be delivered from the 2016/2017 financial year and the Boeing planes from the 2018/2019 fiscal year, SIA said in its statement.

Rolls-Royce's Trent XWB is the sole engine type for the A350-900, while an engine selection for the B787-10Xs will be made later.

SIA said it would use the Airbus planes for its medium and long-range routes and the Boeings for medium-range services.

"Between the two orders, Airbus will be uncorking the champagne earlier than Boeing," Shukor said, noting that Boeing's model is still on the drawing board.

SIA shares fell 0.46 percent to S$10.84 on Thursday before the deals were announced.

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Finally some positive news from the airline? This is the biggest plane order in the airline's history, and they showed they are not lying there waiting to be trampled all over. All these long range fuel saving planes will make the airline more lean, and mean. Seems that they are scaling down on the A380 and also boosting its SilkAir network. Smaller planes will be much easier to fill and are more efficient. These slew of new planes will make the future more exciting.

Airbus will not use lithium batteries in A350: source

Airbus will not use lithium batteries in the A350 long-range liner under development, a company source told AFP on Friday, as investigations continue into battery fires that have grounded rival Boeing's 787 carriers.

"The first planes will be delivered with cadmium, not lithium batteries," the source said, adding that the airliner's first test flights will nevertheless take place with the lithium batteries.

The announcement comes as Boeing's 50 Dreamliners in service around the world have been grounded since January, after battery smoke forced an emergency landing of one plane and a battery fire was reported on a parked plane.

US air safety investigators have since zeroed in on how a battery fire occurred on the parked plane -- a Japanese Airlines 787 at Boston's Logan airport -- saying that evidence pointed to a single cell on the eight-cell lithium-ion battery, which short circuited, leading to a rise in temperature.

Investigators do not yet know what specifically caused the short circuit.

The Airbus A350 is due to enter service in the second half of 2014, with the company hoping the liner will make it competitive in the long-haul market, where its planes have found it hard to challenge Boeing's 747s and 777s.

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Preventive measure by Airbus to avoid the same issue plaguing Boeing currently? If it is as simple as that, then it will be a simple solution. Maybe the Dreamliner should try flying with nickel batteries first to prevent more loss, while at the same time, try to find out the problem with the lithium batteries. But then, I guess the FAA wouldn't allow that, because it might not be as simple as a battery issue.