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The jumbo jet faces a make or break year at Boeing, Airbus

The jumbo jet, for many years the workhorse of modern air travel, could be close to running out of runway.

Last year, there were zero orders placed by commercial airlines for new Boeing 747s or Airbus A380s, reflecting a fundamental shift in the industry toward smaller, twin-engine planes. Smaller planes cost less to fly than the stately, four-engine jumbos, which can carry as many as 525 passengers.

The slump in sales of the jets has raised questions over how long manufacturers can sustain production. It has also fueled internal debate in both companies over the future of the planes, sources said.

The outcome of those discussions will affect the value of existing fleets and thousands of production jobs at the plane makers and their many parts suppliers.

Sales forces at Airbus Group NV and Boeing Co are fighting for potential orders plane by plane as they seek to keep production going beyond the end of the decade, said other aviation market sources. The aircraft makers are offering discounts of at least 50 percent from catalog prices of around US$400 million for a jumbo jet, those sources said. Airbus has said it is also considering a revamp to make its 'superjumbo' more attractive to buyers.

Boeing in September plans to slow the pace of production of its latest 747-8 model to an average of 1.3 planes a month from 1.5 currently. At that rate the orders it already has in hand will only keep the production line going for 2 1/2 years.

The crunch, though, will come earlier because it can take up to two years from ordering the first part to finishing a jet, and no one wants to start the process if it is unclear whether the plane will be completed and delivered to a customer.

"I can see demand for the 747-8 in small numbers, but you have got to ask if they can keep the production line open if they don't get some new orders," said Tony Whitty, chief executive of UK-based aircraft re-marketing firm Cabot Aviation, which trades, manages and leases jets. "You also wonder at what price they are selling."



LONG DESCENT
Use of the 747 has dropped steadily over the last two decades, reflecting the rise of two-engine jets that have come close to matching its range. Over the same period production of large twin-engined jets like the Boeing 777 has risen seven-fold. Last year, Boeing booked 283 new orders for the 777 and now has a backlog of 547 orders.

Airbus is more upbeat than Boeing about the prospects for jumbo jets but both now agree it has become a niche category. Airlines still need jumbo jets but only for certain polar flights - where a two-engine jet may be less safe than a four-engine jumbo because of the lack of places for an emergency landing - and busy routes where landing slots are scarce.

The risk is most visible for Boeing, where investors could face a US$1 billion accounting charge if 747 production is shut down, according to company disclosures.

Boeing recently received a high-profile boost with a provisional order for two new jets to serve as Air Force One for the U.S. President but the 747's future depends a lot more on sales of the much-less glamorous windowless freight model. That has a unique hinged nose and can carry very large equipment, such as oil drilling rigs.

So far this year, Boeing has sold three. Atlas Air Worldwide recently said it plans to order more for its cargo fleet, but wouldn't say when or how many. The world's biggest 747 freight customer, Cargolux , also says it likes the plane, but has a pending order for only three.

A sustained upturn in air freight traffic could secure the 747 a longer future. International freight traffic rose 4.8 percent last year, but volume has only just recovered from a collapse in 2009 during the financial crisis.



CARGO HAULER
Boeing reckons some 143 older freighters will need to be replaced, stretching demand for the 747 through the 2020s, the program vice president, Bruce Dickinson, said in an interview.

"We know there is a long-term market for this airplane and some of the unique things it can do," Dickinson said from his office overlooking the 747 production line at the giant Everett plant near Seattle.

But Boeing’s effort to sell new 747s is overshadowed by the many older 747s available for lease, which have suddenly been made more attractive because of a big slide in fuel prices since the middle of last year. Leasing companies say there is scant interest in new 747-8s when 82 freighters are baking in desert parking lots.

The older planes can be leased for as little as US$400,000 a month, compared with up to US$1.4 million in monthly lease payments for a new 747-8 freighter, experts say.

"That's a pretty big difference," said Gueric Dechavanne, vice president at Collateral Verifications, a Connecticut-based aircraft appraisal firm.

Some companies have extended 747 leases for three to four years, said Aengus Kelly, chief executive of leasing company AerCap .

"It's a challenge to lease a freighter," Kelly told Reuters. "It's definitely a challenge to sell them."

Airbus’s A380 is a newer plane – its first flight was almost exactly 10 years ago - and has become a mainstay of Middle East carriers that offer opulent suites to first class passengers. But the drop in demand is prompting Airbus to weigh whether to revamp the plane with new engines, or carry on with the existing model.

Airbus has 161 orders for the planes in hand, or more than five years of production. But it acknowledges that not all of those jets will be delivered, leaving it with barely three years of guaranteed output. Given the long lead times, Airbus must bring in more orders soon to avoid having to taper production.

“We are always looking at product improvements, but there is so much untapped potential in the existing aircraft,” said Airbus marketing head Chris Emerson.

Airbus could announce an A380 revamp as early as the Dubai Airshow in November, but must first find a way to assure investors it can recover several billion dollars of development costs, sources said. Analysts say on option could be to apply for more European government loans, though that risk

s exacerbating trade tensions with the United States.

Top customer Emirates is offering to double its planned purchase of 140 A380s if Airbus carries out the improvements, which the Dubai carrier’s Chief Executive Tim Clark tells Reuters will be "extremely good for the (airline’s) bottom line."

But Airbus’s board is unlikely to back a new A380 model for just one customer.

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Airbus confirms decision to cancel jet order from Skymark Airlines

Airbus on Thursday (July 31) said its decision to cancel a $2.2 billion jet order from Skymark Airlines was final, rejecting the Japanese carrier's suggestion that talks were still ongoing.

The European aircraft maker said this week it had informed Skymark that its purchase of six A380 superjumbos "has been terminated", just hours after the airline said it was still locked in tough negotiations over the order. Skymark's Tokyo-listed shares plunged in the wake of Airbus announcement, wiping out a quarter of its market value in just two sessions.

"We will not talk about the issue of the shipment anymore, as we have cancelled the order," a spokesman for the European firm's Tokyo unit told AFP on Thursday. He added that Airbus would now be working on a compensation deal over the failed deal, which was inked three years ago.

The carrier's shares were down another 1.85 per cent to 212 yen in Tokyo morning trade. Skymark, which reports its latest financial results later on Thursday, had on Tuesday (July 29) acknowledged that the deal was in trouble as a sharp decline in the yen since late 2012 jacked up the cost of purchasing the jets, while it faced increasingly fierce competition.

The carrier said Airbus had threatened it with "overpriced" fees to cancel -- or slim down -- the order as it suggested the small airline be merged into a bigger carrier, which it flatly rejected.

Skymark has posted its first net loss in five years as stiff competition in the domestic market dented its books. The company, which was launched in 1998 in a bid to offer more choice in a market long controlled by Japan Airlines and All Nippon Airways, flies dozens of domestic routes with a fleet of thirty aircraft.

However, the emergence of a handful of low-cost carriers in recent years has offered up stiff competition to the major carriers, and dented Skymark's finances. The airline posted a net loss of 1.85 billion yen ($18 million) in its last fiscal year, after seeing profits drop by more than half in the prior year.

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Qantas flight turns back to LA after leak 'floods aisles'

A Qantas A380 superjumbo flight from Los Angeles to Melbourne turned back an hour after take-off when a water leak flooded the plane's aisles, the airline and passengers said Thursday.

Flight QF94 returned to Los Angeles International Airport on Wednesday with a passenger describing a "raging torrent of water" running down the two-deck aircraft's stairs.

Qantas said while there were no safety concerns following the leak, the captain decided to turn back "in the interests of passenger comfort".

"Crew on board did everything they could to help customers, including moving them to unaffected areas and providing spare blankets so they could stay dry," Qantas said in a statement.

"We are liaising with Airbus to understand what caused this fault."

A Qantas spokeswoman added that passengers were put up in hotels for the night and engineers were working to fix the problem.

An Australian on the flight, Ken Price, told Fairfax Media "all the passengers in the middle rows, all the middle rows towards the back, started jumping up" an hour into the journey.

"We just saw all this water just flowing down from the overhead compartments. We were right at the back of the plane and the stairs to go up were just a raging torrent of water."

Hollywood actress Nicole Yvette Brown, who was also on the flight, told broadcaster CNN it was the "scariest thing I've ever seen" as the initial trickle of water turned into a gushing stream.

"All of a sudden it looked like a trickle at first and I thought someone had spilled like a soda or a pop or something," the star of cult comedy TV show Community said.

"And then it just got bigger and bigger and filled up both aisles and it literally was like a river running down the aisles of the plane."

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SIA plane turns back mid-flight due to cargo door alert

A Singapore Airlines flight from Singapore to Hong Kong was forced to turned back to Singapore on Friday after pilots received a warning about a problem with a cargo door, the flag-carrier said.

The Airbus A380 superjumbo, carrying 263 passengers, left Changi Airport just after 1pm (0500 GMT) and was scheduled to arrive in Hong Kong at about 5pm.

Flight SQ866 landed safely at Changi Airport at 2.20pm.

Passengers were then transferred to a replacement flight to Hong Kong, which took off at 5pm.

"The Airbus A380 Flight SQ866 from Singapore to Hong Kong returned to Changi Airport this afternoon as a result of a cockpit warning relating to a cargo door," a Singapore Airlines (SIA) spokesman said.

"SIA engineers are currently troubleshooting to find out the cause of why the warning came on," he added.

SQ866 is a daily flight from Singapore to Hong Kong that usually departs at 1pm.

Singapore Airlines has 19 A380s with five others on order, operating on routes from Singapore to various destinations including Hong Kong, Frankfurt, London and Los Angeles.

In January, one of the airline's A380 fleet was forced to make an emergency landing in Azerbaijan after suffering a drop in cabin pressure. The flag-carrier subsequently said its investigation into the incident was focusing on a main deck door that appeared to have suffered a leak.

More than 120 A380s are in operation worldwide following the launch of the Airbus flagship superjumbo in 2007.

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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 grounds A380 after scratches found on fuselage

Singapore Airlines said Wednesday it had grounded an Airbus A380 superjumbo for further inspection after scratches were found on its fuselage.

The scratches were discovered after the double-decker plane, the world's biggest passenger aircraft, arrived in Frankfurt on Sunday from New York, SIA said in a statement.

There were 126 passengers and 26 crew onboard.

"The aircraft was subsequently grounded for checks and passengers were either transferred to other airlines or accommodated in hotels," the statement said.

"Following inspections by engineering teams in Frankfurt, it was determined that the scratches posed no safety issue and the aircraft was cleared for departure."

The plane arrived in Singapore on Tuesday after a 23-hour delay and has been grounded for further checks.

SIA said the cause of the scratches has yet to be established.

"Our engineers are currently performing further checks on the aircraft, and it will resume service once cleared," the airline said.

It was the second incident for SIA in less than a month involving an A380.

On January 6, an SIA A380 en route from London to Singapore lost cabin pressure, forcing the pilot to make an emergency landing in the Azerbaijan capital of Baku.

Oxygen masks were activated during the emergency procedure which some passengers described as "frightening".

The stranded 467 passengers and 27 crew on board were flown back to Singapore with a replacement aircraft.

The plane involved in the Baku incident was back in service, SIA said Wednesday, but added that the "root cause" of the incident remained under investigation.

SIA had previously said that focus of the probe was a door on the main deck that appeared to have suffered a leak, leading to the change in cabin pressure.

There are 119 Airbus A380s in operation globally, according to latest data from the company.

Singapore Airlines currently has a fleet of 19 A380s, with five others on order.

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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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Singapore Airlines, Air New Zealand announce tie-up

Singapore Airlines (SIA) and Air New Zealand on Thursday announced an alliance to expand services to both countries and boost their global reach as they look to capitalise on growing tourism traffic.

The alliance will enable SIA to operate its Airbus A380 superjumbos to New Zealand for the first time, progressively replacing daily services using the smaller Boeing 777-300ER, the firms said in a joint statement.

Air New Zealand will launch daily services between Auckland and Singapore using newly refitted Boeing 777-200ER aircraft, the statement said, replacing five flights currently operated by SIA.

Air New Zealand last operated flights to Singapore in 2006.

Singapore's affluent population has become a key target for global tourist destinations.

"Singapore's luxury travel market appears to offer a huge opportunity for New Zealand, with local demand for high-end travel matching the Asian-wide upswing," Tourism New Zealand said on its website.

The two carriers are aiming to boost their capacity between Singapore and New Zealand by up to 30 per cent.

SIA's daily Singapore-Christchurch service will continue as part of the alliance.

The deal will also expand Air New Zealand's connectivity to the rest of the world through SIA's extensive network.

Air New Zealand passengers will be able to access codeshare travel on the SIA network to Europe, Southeast Asia and Africa, as well as on the network of SIA's regional subsidiary, SilkAir.

SIA customers will in turn enjoy codeshare travel across the Air New Zealand domestic network and to the Pacific islands.

"This alliance is another example of our commitment to the important Southwest Pacific market, and our commitment to the further enhancement of our network," said SIA chief executive Goh Choon Phong.

Air New Zealand chief executive Christopher Luxon said the tie-up "clearly fits our business objectives of working with the right partners in the right markets to deliver seamless customer journeys".

He told reporters the partnership with SIA is the "cornerstone" of Air New Zealand's business strategy because of its international scope.

Air New Zealand's alliance with Cathay Pacific is limited to serving Hong Kong and southern China and its partnership with ANA is restricted to the Japanese market, Luxon noted.

The two carriers are seeking approval for the deal from the Competition Commission of Singapore and the New Zealand Minister of Transport, and said flights under the new alliance could start as early as December this year.

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'Leaky' A380 door focus of probe in SIA emergency landing

A malfunctioning door is the focus of an investigation into why a Singapore Airlines Airbus 380 superjumbo was forced to make an emergency landing in Azerbaijan, the carrier said on Wednesday.

Nearly 500 passengers arrived in Singapore on Tuesday in a A380 relief jet after their original flight from London to Singapore was forced to land in capital Baku due to a loss in cabin pressure.

"The root cause of the incident is being investigated and a team of specialists from Airbus will be assisting," an airline spokesman said in a statement.

"We are focusing on a door on the main deck that appears to have suffered a leak, leading to the change in cabin pressure," he said.

"A replacement door will be fitted to the aircraft in Baku before it returns to Singapore for a more thorough inspection."

Passengers had spoken of noise coming from one door as the aircraft came in to land in the central Asian republic.

The A380 is the world's largest commercial aircraft and Singapore Airlines was its debut customer in 2007.

Sean Lee, the Asia spokesman for Airbus, told AFP on Wednesday that the European manufacturer is "participating fully in the investigation to determine the cause of this incident".

"I confirm that we have a team of specialists travelling to Baku. At this time we cannot confirm the root cause of the incident," he said.

There are 119 Airbus A380s in operation globally, according to latest data from the company.

Singapore Airlines currently has a fleet of 19 A380s, with five others on order. It uses the planes for flights from Singapore to various destinations including Frankfurt, Hong Kong, London and Los Angeles.

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SIA passengers in S'pore after emergency flight landing in Azerbaijan

Singapore Airlines will offer a refund to passengers who were on board flight SQ317 from London to Singapore. The flight had to make an emergency landing in Azerbaijan on Monday after it suffered a loss of cabin pressure.

The 467 passengers arrived in Singapore on Tuesday afternoon.

Mohinderjeet Kaur, whose daughter had texted on the flight when the emergency happened, said: "We first got to know about this around 2am, that there was going to be an emergency landing. We had not slept since then, worrying and traumatised by the whole thing that's happened."

Rajween Kaur, who was on the flight, said: "I'm glad to be home. I wasn't feeling well so they really took care of me on the way back. So I'm really grateful for that."

Melanie Carter, a passenger with two young children, said: "The air hostesses were very good and tried to help but it was very difficult to hear what they were saying.”

It was quite an ordeal for the passengers and crew, even after they landed safely in Baku.

All 467 passengers were eventually moved to a hotel, but this was only 15 hours after reaching the Baku airport.

Singapore Airlines said this was because it took a long time to get approval from local authorities to let passengers leave the transit area.

Steve Barnes, a visitor from London, said: "They couldn't get us into the hotels until we were four hours till we were due to leave, so we only spent 41 minutes in our room."

Those with relatives and friends on board said communication from the airline could have been better.

Annetta Mullen, whose friends were on SQ317, said: "When my husband rang them last night, and again this morning, the person on the other end said they didn't know what was going on and they needed to go find someone who did know. Eventually they came back this morning and said the flight was due to land early this afternoon."

Debra Lim, who was waiting for her parents, said: "We had to try and contact the airline and we couldn't contact Singapore Airlines because they don't have a person to talk to, it's just an automated voice. So I had to call the reservations hotline - the customer service officer there was very nice, she found out what was going on."

Responding to queries from Channel NewsAsia, SIA said the hotline was for its 24-hour call centre, and it apologises if the centre was not able to provide immediate information to the relatives of those affected.

The airline also noted it was only able to provide information when details could be confirmed as it was a developing situation.

It also pointed out it had been providing updates on its Facebook page and Twitter.

SIA said in a letter to passengers that it will offer a refund for the London-Singapore flight.

It has also made arrangements for onward flights for those who missed their connecting flights.

Ground services teams also met passengers on arrival at Changi to make hotel arrangements where needed.

Investigations into the cause of the depressurisation are ongoing.

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SIA plane headed for Azerbaijan to pick up stranded passengers

A replacement Singapore Airlines (SIA) aircraft is on its way from Singapore to Baku, Azerbaijan, to pick up passengers and cabin crew who are stranded at the airport there.

They were all on board an SQ plane that had to make an emergency landing there due to depressurisation.

The aircraft lost pressure about six hours into the flight.

A passenger related on what actually happened during the incident.

Nathan Phelps, a passenger, said: "I think we were just going over the mountainous area of Pakistan... and then all of a sudden, the plane just literally dropped real, real fast. As I had it, I had the map on the screen and you could see the altitude dropping rapidly. I think we dropped about 20,000 feet in less than two minutes.

"Then the mask dropped and then "Emergency, Emergency" came on the tannoy and then we were told to put our masks on. There was a bit of panic, I wouldn't say they were overly panicked. To be honest if anything, it was quite quiet, it was eerily quiet, the plane was quite dark. The captain just basically said there was a pressurisation problem on the plane."

Flight SQ317, an Airbus A380 aircraft, was travelling from London to Singapore before it had to be diverted to Baku.

There were 467 passengers and 27 crew members on board the plane. No one was injured.

SIA said the aircraft landed "uneventfully" at Baku Airport at 1.03am local time.

The replacement aircraft is expected to reach Baku at 11pm local time there and arrive back in Singapore on Tuesday afternoon.

SIA said it doesn't operate regular flights to Baku.

Staff from both Istanbul and Moscow have been deployed to provide assistance on the ground.

An aviation expert explained the likely causes of depressurisation.

Assoc Prof Randy Chue, School of Mechanical and Aerospace Engineering at Nanyang Technological University, said: "Most common ones are such as, you have leak in the doors, there may be cracked windows.

"The more serious cases would be the systems maintaining the cabin pressure (that) are not working properly, but usually those are very rare. It is usually the seals of the door that are the culprits. Although it may be panicky for the passengers, usually it does not cause any injuries."

Earlier, SIA said it is seeking clearance from local authorities to transfer affected customers to a hotel while waiting for a replacement aircraft to arrive.

But passengers said they were not allowed to leave the airport as they did not have a visa.

And they said it took about two-and-a-half hours before food was brought out from the plane.

Singapore Airlines has apologised to affected customers for the inconvenience and said it is investigating the cause of the depressurisation.

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SIA flight makes emergency landing in Azerbaijan

A Singapore Airlines (SIA) flight from London to Singapore made an emergency landing in Azerbaijan on Monday after the cabin depressurised on board the Airbus A380.

Oxygen masks were deployed and no injuries were reported, according to SIA's Facebook page.

SQ317, with 467 passengers and 27 crew members on board, landed in the Azerbaijani capital of Baku "uneventfully" at about 1.03am local time (5.03am, Singapore time), SIA said.

The airline is currently seeking clearance from local authorities to transfer the affected customers to a hotel until a replacement aircraft arrives from Singapore.

Customers can contact the reservation and ticketing office in Singapore at +65 6223 8888 for assistance.

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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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Cracks in oil feed pipe blamed for 2010 Qantas engine blast

Cracks in an oil feed pipe caused an engine to explode on a Qantas A380 over the Indonesian island of Batam in November 2010, Australia's transport safety watchdog said on Thursday in its final report on the incident.

The airline grounded its entire Airbus A380 fleet after one of the Sydney-bound double-decker super-jumbos was forced to make a dramatic return to Singapore with smoke trailing from its Rolls-Royce Trent 900 engine and damage to its wing.

The mid-air blast sent debris raining down over Batam island in Indonesia, before pilots guided the plane carrying 469 passengers back to Changi Airport.

The Australian Transport Safety Bureau (ATSB) released its third and final report into the accident Thursday, which found that oil feed pipes in the A380's No. 2 engine did not conform to design specifications.

"The ATSB found that the engine failure was the result of a fatigue crack in an oil feed pipe," it said, calling the investigation one of the most complex it had ever undertaken.

"The crack allowed the release of oil that resulted in an internal oil fire. The oil fire led to one of the engine's turbine discs separating from the drive shaft.

"The disc then over-accelerated and broke apart, bursting through the engine casing and releasing other high energy debris."

The ATSB also found that the oil pipe, together with a number of similar pipes in other engines, had been made with a thin wall section and did not comply with design specifications.

"The thin wall substantially increased the likelihood of fatigue cracking," it said.

Since the incident, Rolls-Royce, aviation regulators, and operators of Trent 900-powered A380s have taken a range of steps to ensure that engines with incorrectly manufactured oil feed stub pipes were removed from service or fixed so aircraft could operate safely.

Rolls-Royce also introduced software that would automatically shut down a Trent 900 engine before its turbine disc over-speeds to prevent a similar occurrence, while improving their quality management systems.

The ATSB report absolved the plane's crew of any error, saying they completed the required actions for the multitude of system failures and safely landed.

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The root of the problem finally fished out after almost three years. It is heartening to know that a similar incident will not occur again now that a new software has been installed to arrest the problem. Salute to the pilots onboard that plane to bring it back to ground safely when they were so near to total disaster.

Doric orders 20 Airbus superjumbos

European aircraft maker Airbus made a big breakthrough for its flagship A380 superjumbo airliner on Monday, taking the first order for the plane this year after a setback over cracks in the wings.

The provisional order, worth about $8.0 billion (6.0 billion euros) at list prices, came from Doric Asset Finance, a leasing group which will make the A380 giant accessible to many airlines via rental agreements.

The deal, important for Airbus in its efforts to boost sales of the aircraft, the giant of the skies, comes just three days after another milestone, the maiden flight of its new long-range A350 aircraft.

Airbus head Fabrice Bregier told the Wall Street Journal newspaper on the opening of the Paris Air Show at Le Bourget on Monday that the firm hoped to more than double its operating profit in the next two years.

It intended to raise the operating margin from 4.0 per cent to 10.0 per cent, he said, adding that this target excluded the launch costs of the A350.

Last year was a difficult one for the A380 superjumbo because micro cracks were detected where the wings join the fuselage.

Airbus is correcting the problem, but the manufacturer had taken no orders for the A380 since the beginning of 2013.

Boosting sales of the A380 is of particular importance to Airbus, which said in a statement that with this investment Doric would be able to offer the aircraft on tailor-made terms for airlines.

This would facilitate use of the plane by airlines around the world, Airbus said.

Doric Asset Finance has provided finance for orders by airlines such as Emirates and Singapore Airlines.

Under leasing arrangements, an airline enters into a rental agreement with the leasing company, thereby avoiding having to find the purchase capital from its own resources.

Airbus said that Doric was the third-biggest such company in the world, in terms of value, providing leasing arrangements for jumbo aircraft and was the biggest in terms of managing such deals for the A380 superjumbo.

Doric currently manages aircraft worth $6.0 billion, including 18 A380 airliners purchased under sale and leaseback agreements, so the latest deal represents a substantial increase for the leasing group.

The latest agreement in principle, or outline deal, is expected to be confirmed in a few months.

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More A380s available for lease from Doric after this purchase, and it is a real huge one, after Airbus receiving naught order for a good half a year of 2013. Perhaps this should kick start the ball and keep it rolling through the rest of the airshow.

Qantas, Emirates tie-up takes off

Australia's competition watchdog on Thursday gave Qantas and Emirates Airlines permission to launch their global alliance although final approval is still pending.

The Australian Competition and Consumer Commission, which gave the carriers preliminary approval in December to combine operations for an initial five years, said that practical sales, marketing and other steps could now start.

"The ACCC is allowing Qantas and Emirates to start implementing their alliance because of the long lead time required to market and sell tickets before the commencement of long-haul services," said ACCC chairman Rod Sims.

"In making its decision, the ACCC has accepted written assurances from the parties that should the ACCC ultimately decide not to allow the alliance to go ahead, the airlines will accommodate consumers' bookings."

The regulator said it anticipated making a final decision in March.

Under the proposal, which will be fully implemented from April, the airlines will coordinate ticket prices and flight schedules and Qantas will shift its hub for European flights to Dubai from Singapore.

It also means an end to Qantas's partnership with British Airways on the so-called kangaroo route to London, which has spanned nearly two decades.

The tie-up is seen as vital to the sustainability of Qantas, which last year posted its first annual deficit since privatisation in 1995 due to tough regional competition and high fuel costs for its international arm.

Sims said the ACCC had determined in December that "the public benefits resulting from the alliance are likely to outweigh the public detriment ... where Qantas and Emirates offer overlapping services".

But he said New Zealand had been identified as a key market where competition could be eroded by the Qantas-Emirates deal and the ACCC had therefore exempted it from the new permissions for now.

"The ACCC is granting interim authorisation on the condition that the applicants do not engage in the conduct for which authorisation is sought in relation to services between Australia and New Zealand," Sims said.

He added that the regulator "may review its decision on interim authorisation at any time and it should not be taken to be indicative of whether or not final authorisation will be granted".

Qantas chief Alan Joyce said the decision meant pricing, capacity and scheduling could now be coordinated with Emirates and one-stop trips could be booked across their combined networks, boosting tourism.

Once final approval is granted, Qantas will fly daily Airbus A380 services from Sydney and Melbourne to London via Dubai, meaning that the two airlines will operate 98 weekly services between Australia and the Emirates Gulf hub.

For Emirates customers, the alliance opens up Qantas's Australian domestic network of more than 50 destinations and nearly 5,000 flights per week.

Dubai Airports has earmarked $7.8 billion to further expand the capacity of the international travel hub and expects to handle 75 million passengers by 2015 and 98 million by 2020. Some 57 million passengers were expected to use Dubai International in 2012.

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Final approval will be made in March and both airlines can start the new collaboration in April. Exciting days ahead for both of them, a big change for Qantas in hope that this will turn their fortunes switching the hub to Dubai from Singapore.

As for Singapore's Changi Airport, a huge void will be left behind after Qantas switches over to Dubai. This space can probably be used to house more low cost carriers.

SIA firms up order for another 25 widebody aircraft from Airbus

Singapore Airlines (SIA) has firmed up an order for 25 more widebody aircraft from Airbus.

Five of the aircraft are the A380.

SIA has placed three consecutive orders for the A380 - making it the second largest customer of the A380 - and now has 19 such aircraft in service.

The remaining 20 aircraft are in the mid-size category - the A350-900s, which will be used on medium- and long-haul routes.

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The five A380 are probably more for replacement rather than fleet expansion. The same goes for the A350, probably to replace the A330 and B777 since SIA no longer has B787 on order for itself after pushing the 20 orders to Scoot.

Emirates begins flights from Dubai superjumbo concourse

Dubai's Emirates Airlines began operations Wednesday from a $3 billion new concourse dedicated to Airbus' A380 superjumbos at the Gulf city-state's rapidly-expanding airport.

Concourse A, which cost $3 billion (2.3 billion euros) to build, gives Emirates -- one of the fastest-growing carriers -- an additional airport capacity of 15 million passengers a year, the company said.

The expansion takes place as the CAPA Centre for Aviation said Emirates could become this year the world's second-biggest carrier in terms of capacity, right after United Airlines, and way ahead of legacy European carriers.

Flight EK003 took off to London Heathrow from Concourse A, which will become "home of the Emirates A380," and add a capacity to handle 15 million passengers a year, said a statement by Emirates -- one of the world's fastest-growing carriers.

The new extension to Terminal 3, featuring 20 gates specifically designed to accommodate Airbus' longhaul airliners, will open gradually, with just four gates operational on Wednesday, Dubai Airports chief executive Paul Griffiths said in another statement.

"This is a historic and momentous occasion, marking another world first from Emirates," said Sheikh Ahmed bin Saeed Al-Maktoum, chairman of Emirates and of Dubai Airports.

The government-owned carrier is the largest operator of A380, with a fleet of 31 and another 59 units on order.

The new concourse spreads across 11 floors with a total area of 528,000 square metres (5.7 million square feet). It cost $3 billion to build.

Dubai Airports has undertaken a $7.8 billion to further expand the capacity of the international travel hub, as it expects to handle 75 million passengers by 2015 and 98 million passengers by 2020.

It expected the number of passengers who used Dubai International airport in 2012 to be around 57 million.

The new facility will be available to A380 flights to Europe operated by Australia's Qantas, as per the global partnership announced recently and awaiting the approval of the Australian Competition and Consumer Commission, Emirates said.

Emirates had moved its operations to Terminal 3 in 2008, when the new complex opened dedicated to the national carrier of Dubai, leaving the older Terminal One to foreign airlines.

The new facility will be available to A380 flights to Europe operated by Australia's Qantas, as per the global partnership announced recently and awaiting the approval of the Australian Competition and Consumer Commission, Emirates said.

Emirates has a fleet of 195 wide-body Airbus and Boeing, and has some 204 units on orders worth more than $74 billion, it said. It flies to 128 destinations in 74 countries.

The carrier, which began operations in 1985 with two leased planes, has become a major competitor of legacy airlines, turning Dubai into a major transit hub for travel between Europe, Asia and Australasia.

Sydney-based CAPA said this week Emirates remained last year third in global ranking of world's airlines by capacity, with 4.993 billion available seat kilometres (ASKs), compared to 6.15 billion ASKs for United Airlines thanks to its merger with Continental, and 5.64 billion ASKs for Delta Air Lines.

But Emirates registered a whopping growth of 18.4 percent in ASKs last year, compared to a drop of 0.3 percent by Delta.

This put Emirates ahead of many traditional airlines, including British Airways, which was ranked seventh with 3.049 billion ASKs, and Air France, which followed with 2.825 billion ASKs.

Other Gulf carriers, vying to grab a chunk of the trans-continental travel market, followed behind. Qatar Airways rose to 17th place, with 1.798 billion ASKs, and Abu Dhabi's Etihad advanced to 28th, with 1.135 billion ASKs.

In addition to Dubai International Airport, the busiest regional hub, the city-state is developing another airport.

Dubai World Central-Al Maktoum International has been open for cargo since 2010, but passenger operations have been repeatedly delayed.

The airport, launched at the height of Dubai's rapid economic growth, is touted to become the world's largest with a capacity to handle 160 million passengers annually.

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One huge step towards making Dubai an impressive travelling hub, where people in Asia and Europe connect. I would love to see the sight of many A380s being clustered in one area as that will actually be pretty spectacular.

Will SQ's A380 be allowed to use the concourse too? I guess CAG is currently facing the heat after Qantas dropped many European routes from Aussie via Singapore. The middle eastern airlines are picking up fast.