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

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

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

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

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

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

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

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

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

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

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

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

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

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

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China needs 6,000 new planes by 2033: Boeing

China will need more than 6,000 new aircraft over the next 20 years, US manufacturer Boeing forecast on Thursday - an increase of almost 500 on its equivalent prediction last year. Flight demand in the world's most populous country and second-largest economy is increasing and diversifying, Boeing said in its new Current Market Outlook for the country.

Chinese new aircraft demand will reach 6,020 planes worth US$870 billion (S$1,089 billion) during the 2014-2033 period, it said, compared to last year's 20-year demand forecast of 5,580 planes. Underscoring the dramatic increase in passenger demand, Boeing said that a total of 6,930 passenger aircraft will be plying China's skies in 2033, three times the current 2,310.

"China's domestic market has been strong and resilient for many years, and continues to be strong," Randy Tinseth, vice president of marketing at Boeing Commercial Airplanes, told reporters in Beijing. During the 20-year period Chinese carriers will take delivery of 16 per cent of the world's airplane production, the company said.

Boeing, maker of the 737 MAX and 787 Dreamliner, competes with Europe's Airbus for global dominance in the aircraft market. The US firm says it made more than half the current Chinese commercial fleet, while Airbus says it has an almost-50 per cent share.

"The market is changing, evolving," Tinseth told reporters in Beijing, saying demand for more direct flights to more destinations was being driven by factors including low-cost carriers. "It's good for passengers, and ultimately it will be good for the aviation market here."

Only 1,400 of China's new aircraft in the next 20 years will replace existing airplanes, Boeing said, while 4,620, or 77 per cent, will be additions to the fleet.

In July, Boeing raised its forecast for global aircraft demand by 4.2 per cent from last year's projection, saying it expected 36,770 planes to be delivered over the next two decades in deals worth US$5.2 trillion.

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Air China shares lose early gains after H1 profit fall

Shares in Air China slipped in Hong Kong Wednesday (Aug 27) after the flag carrier reported a 55 per cent drop in first-half net profit. Based on international accounting standards, the company recorded 510.4 million yuan (S$103.6 million) in net profit for the first six months, it said late Tuesday in a filing to the Hong Kong exchange, where it is listed.

Although revenue grew 8.5 per cent year-on-year to 49.9 billion yuan in the first half, passenger yield -- a measure of the average fare paid per mile by passengers - dropped 3.33 per cent to 0.58 yuan from a year earlier, it said. The results were in line with a profit warning issued in July, when it warned of a drop of 55-65 per cent caused by foreign exchange losses as the yuan weakened. Using Chinese standards net profit was 474.38 million yuan (S$96.3 million), down from 1.12 billion yuan from the in same period last year.

Shares in the Chinese flag carrier jumped in the morning 1.43 per cent but by early afternoon were trading up 0.2 per cent. A 2.5 per cent decline in the yuan resulted in a net exchange loss of 721 million yuan, compared with a net gain of 1.1 billion yuan for the same period last year, the airline said.

Higher jet fuel costs, which rose 4.99 per cent to 17.2 billion yuan, and intensified competition also contributed to the decrease in profits, the statement said. "The exchange rate volatility of the (yuan) against the US dollar was the primary factor that led to the overall decline of our first half results," the airline said in the filing. It said it had faced a "complex and volatile economic environment both internationally and domestically" for the reported period, as it faced increasing competition in the aviation market.

China's air industry is undergoing a rapid expansion with a slew of new start-ups now competing with older stablemates. Chinese airlines carried 350 million passengers last year, up nearly 11 per cent from 2012, according to official figures, while the civil aviation authority said the country will have more than 230 airports by 2015, up from 193 last year.

Air China said it saw moderate growth in the domestic passenger market, and a moderate recovery in the air cargo market for the first half of the year. Exchange rates and oil prices are expected to remain uncertain for the remainder of the year, it added. Air China took delivery of 28 new aircraft in the reported period including Boeing 777-300s and Airbus 330s, and retired 13 old aircraft to reduce operating and maintenance costs.

The International Air Transport Association in June said airline profits are improving and that it expects companies to record combined net profits of US$18 billion for 2014, down from its earlier forecast of US$18.7 billion made in March.

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Snoozing China air traffic controllers force jet to delay landing

A Chinese aircraft was forced to delay its landing after two air traffic controllers nodded off, reports said on Tuesday (Aug 19), sparking a wave of online anger about airline safety.

The Boeing 737 was preparing to land at Wuhan airport in central China but had no response from the air traffic control tower for 12 minutes, reports said. Contact was eventually made and China Eastern Airlines flight MU2528 from Sanya landed safely, the Sina.com news portal said.

"Because air traffic control was asleep on duty, (the plane) called many times," civil aviation authorities said in a statement quoted by Chinese business magazine Caijing. "But there was no reply, and no contact could be made with the control tower."

A separate investigation report cited by Caijing said two controllers had fallen asleep. The incident happened on July 8 and the statement was dated July 29. There was no explanation for the delay in making it public.

"Air control work is truly exhausting, but it is unforgivable to sleep on duty," a post on Sina Weibo, China's version of Twitter, said on Tuesday. "Hundreds of people's lives depend on the actions of flight tower controllers. We entrust our lives to you," the post continued.

Another netizen added: "Such serious consequences. Should let him sleep as much as he wants in prison."

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Asia tourist boom fuels airport binge

Faced with snaking queues at immigration, overflowing baggage carousels and expensive flight delays, Asian nations are rushing to build hundreds of new airports to cope with surging demand for air travel in the region.

From China and India to the Philippines and Indonesia, the fast-growing middle classes are looking to spend their cash by spreading their wings, leading to a boom in the Asia-Pacific region's tourism sector. Airlines have responded by setting up several new budget carriers and flying new routes -- but many airports are unable to cope, forcing governments to either expand or simply build new airports.

"Through the next 10 years, we see more than 350 new airports in the Asia-Pacific and the investment cost will be well over $100 billion," said Chris De Lavigne, a global vice president at business consultancy Frost & Sullivan Asia Pacific.

"China is building over 100 airports, India is building over 60 airports and Indonesia will also have to follow suit with investments in its infrastructure," said De Lavigne, who closely tracks Asia's aviation industry.

Upgrades of existing airports could cost an additional $25 billion, he told AFP by telephone from his office in Jakarta. International tourist arrivals in Asia-Pacific grew an annual 6.0 per cent to 248 million last year, the strongest of any region worldwide, according to the UN World Tourism Organization. To cope with this, construction is being ramped up.

The Canada-based Airports Council International (ACI) said in a report that Indonesia plans to build 62 new airports in the next five years, in addition to its existing 237. Soekarno-Hatta in Jakarta is improving capacity after handling 60 million passengers last year, nearly three times what it was designed for, ACI said.

And Kuala Lumpur aims to double capacity to 100 million a year by 2020, while Hong Kong wants to handle 97 million annually by 2030, up from 60 million in 2013. In Beijing -- which already has a hub servicing 80 million people -- a second, $11 billion airport is being built to open in 2018 and handle 40 million passengers, Sydney-based consultancy Centre for Aviation said.

There are also plans for a full replacement of Manila's Ninoy Aquino International Airport, one of Asia's most notorious for overcrowding and backward facilities. Its Terminal 1, which is undergoing a major makeover, was built in 1981 to handle six million passengers a year. Together with two extension terminals, the airport handled around 30 million passengers in 2013.

Even Singapore's Changi -- regarded by many as one of the world's best -- is expanding, with a $1.0 billion Terminal 4 opening in 2017 that will raise capacity to 82 million passengers from the current 54 million. Plans are already being made for a Terminal 5.

Shukor Yusof, an analyst with Malaysia-based Endau Analytics, said airport infrastructure in many countries has lagged well behind travel growth.

"Many governments have paid scant attention to developing new terminals and new tarmacs, that's why you find that many of the airports are bursting at the seams," he said.

The focus is not just on capitals. The need for more space means much of the new construction is taking place in secondary cities, with some facilities potentially becoming hubs.

De Lavigne cited the Kualanamu International Airport in Indonesia's Medan, which opened last July and could become a hub for flights to Malaysia, Thailand, Myanmar, India and China. It was designed to handle eight million passengers a year but is already at capacity, he said.

"By 2025, they're forecasting 24 million passengers out of Medan, or a three-fold increase in just over 10 years," De Lavigne said, adding that Indonesia's aviation sector alone is growing 14-15 per cent a year.

Even less developed tourist destinations are pressing ahead with building. Myanmar -- returning to the global fold after decades of isolation -- is looking to upgrade 39 airports as tourist and domestic air passenger figures are seen surging to 30 million in 2030 from 4.2 million in 2013, the ACI said.

The government is also building a new $1.5 billion Hanthawaddy International Airport to serve as Yangon's second airport, it added.

Bangladesh is constructing a new airport costing up to $7.2 billion about 60 kilometres (37 miles) from Dhaka, ACI said. Funding from governments and the private sector does not appear to be a problem.

"There's a lot of liquidity out there. There's a lot of money in project financing," Shukor said.

Airports are now even targeting non-travellers, with the current trend for "aeroparks and aerotropolises" integrating lifestyle amenities, attracting diners and shoppers who won't even board flights.

"You get people who don't fly to come into the airports for food, shopping and other lifestyle activities. That trend which started in the West is increasingly finding its way into Asia," De Lavigne said.

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Hainan Airlines commits to 50 Boeing 737 MAX jets

China's Hainan Airlines is finalising a deal to buy 50 fuel-efficient 737 MAX passenger planes from US aircraft maker Boeing, the two companies announced on Wednesday.

The commitment for the single-aisle 737 MAX 8s, worth a total of more than $5.1 billion at catalogue prices, is subject to approval by the Chinese government, the companies said at the Farnborough airshow.

"The new 737 MAX will help our airline grow, become more efficient and offer five-star service for our passengers," said Hainan Group chairman Adam Tan.

Boeing said Hainan was "finalising terms and working toward a purchase agreement for 50 737 MAX 8s".

"The commitment, valued at more than $5.1 billion at current list prices, will be subject to the approval of the Chinese government," a statement added.

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China's Okay Airways buys Boeing jets worth US$980m

Okay Airways, the first privately-owned Chinese carrier, has agreed to buy 10 single-aisle Boeing planes worth US$980 million at current list prices, the US planemaker said on Monday.

Boeing and Okay Airways announced an order for six 737 MAX 8s and four Next-Generation 737-800s at the Farnborough airshow near London.

Okay Airways is also converting five 737-800s from a previous order into 737-900ERs, a statement added.

"The 737 is the backbone of our fleet and has fueled our growth with its proven reliability and efficiency," the statement quoted Okay president Liu Weining as saying.

"The addition of the new 737 MAX airplanes will help us explore new regional markets while strengthening our existing domestic routes," he added.

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China's own dreamliner prepares for takeoff

The cavernous building that will house the final assembly line of China's own passenger plane is virtually empty, except for an enormous Chinese flag and slogans to rally the workers who will one day produce the C919.

It is a huge engineering challenge but, if the project proceeds on schedule, a prototype of the single-aisle plane will take to the skies by the end of next year.

Its mission is to compete with US aircraft maker Boeing's 737 and the A320 of European consortium Airbus.

The vast 300-metre (330-yard) long hangar where it will be put together, next to Shanghai's Pudong airport, can hold six planes at a time.

But, despite the ambitious goal, the first major parts have yet to arrive.

The plane's builders, the Commercial Aircraft Corp. of China (COMAC), said they recognise the issues, but they have the full financial and political backing of the Communist state and believe they will ultimately be successful.

"We will try (for the first flight) at the end of next year," said Zhang Zhengguo, of COMAC's publicity team.

Total spending on the project is unknown.

Chinese airlines will need nearly 6,000 new planes valued at $780 billion over the next 20 years, according to Boeing, and the government wants some of the huge market to go to its own passenger plane.

China has dreamed of building its own civil aircraft since the 1970s when Jiang Qing, leader Mao Zedong's wife and a member of the notorious "Gang of Four", personally backed an attempt to do so. But the Y-10's heavy weight made it impractical and only three were ever built.

Today, China is the world's second largest economy. It has built an auto industry by leveraging joint ventures with foreign companies for technology, developed the world's largest high-speed rail network, and sent humans into orbit.

A patriotic song specially commissioned for COMAC compares the C919 to a "Great Wall in the sky".

The roar of jet engines from Boeing and Airbus planes flying over the sprawling factory serve as a reminder of the technological complexities involved.

"We are like a child, Boeing and Airbus are adults," said another COMAC official, who declined to be named. "We may fall down, or walk unsteadily.

Although China claims the C919 is self-developed and manufactured, foreign companies are playing key roles in the project by supplying systems as well as newly developed engines made by French-American venture CFM International.

The narrow body plane, with a range of up to 5,555 kilometres (3,444 miles), can seat a maximum of 174 passengers, according to COMAC.

The first major C919 part to be completed, a single forward fuselage piece, came off the assembly line at a factory in the central province of Jiangxi in May, state media reported.

At a separate sub-assembly line in Shanghai, there are signs of life as workers put together the Spanish machinery which will make the central wing box -- which secures the wing in the body -- and the horizontal part of the tail.

Banners on the wall speak of "storming the gate" and "eating bitterness", echoing political slogans from China's past.

At a development centre for the project, the C919 exists only as a model of the cockpit and the "iron bird", a flightless testing platform for control, landing gear and other systems.

The project received a boost in May when Chinese President Xi Jinping visited the company and sat in the model's pilot seat.

"We must, and will, make our own large jetliner," he said, according to state-run media.

COMAC already claims 400 orders for the C919, most from domestic leasing companies and only one from a foreign customer, GE Capital Aviation Services -- a subsidiary of General Electric, the US firm that co-owns engine provider CFM.

A smaller regional jet also under development, the ARJ21, has 253 orders but first deliveries have been delayed by years.

Airlines remain reluctant to order the C919 as it has not been certified by the US Federal Aviation Administration - a crucial step which would enable it to fly in US skies and assure passengers about its safety.

But Marwan Lahoud, director of strategy for Airbus, warned: "The Chinese threat should not be taken lightly."

"The Chinese will make good aircraft and will sell them," he told France's Tribune newspaper this week. "We will not be able to compete with the financial packages they will be able to offer airlines. Only our technological lead will preserve our advantage."

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Taiwan's airline to boost flights to China

Taiwan's largest carrier China Airlines said Wednesday it would increase the number of flights to China by around 18 per cent before mid-July to meet rising demand.

The company said in a statement it would fly to four new destinations on the mainland -- making a total of 32 -- and add flights to three cities to increase its weekly flights to China to 152 from 129.

The airline said it hopes the additional flights would enable tourists from both sides to arrange their trips more conveniently and boost the tourism market.

China has replaced Japan as the biggest source of visitors to Taiwan after relations improved markedly between the former bitter rivals in recent years.

Last year a record 2.85 million Chinese nationals visited Taiwan, up ten per cent from 2012.

The number of tourists visiting Taiwan from the mainland has shot up ever since Taipei lifted a ban on Chinese group tourists in 2008 and allowed solo tourists in mid-2011.

However, Beijing still considers Taiwan part of its territory awaiting reunification, by force if necessary, even though the two sides have been governed separately since the end of a civil war in 1949.

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China Eastern to buy 80 Boeing 737s

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

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

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

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

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

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

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

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

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

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

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

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

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China Southern orders 80 Airbus A320 planes

China Southern Airlines, which has the biggest fleet of aircraft in China, on Friday ordered 80 medium-haul Airbus A320 planes with a list value of $7.9 billion, Airbus said.

The deal, worth a headline equivalent of 5.8 billion euros, is for 30 of the existing models of the A320 and for 50 of the more energy-efficient A320Neo planes, Airbus said.

China Southern Airlines, in a statement to the Hong Kong stock exchange, said that it had obtained a discount from the list prices, as is usual in the airline industry.

The aircraft are to be delivered from 2016 to 2020.

China Southern Airlines already has a fleet of 249 Airbus aircraft, including five superjumbo A380 planes.

The airline, in its stock market statement, said that the latest planes ordered would increase its capacity as measured by tonnes carried per kilometre by 12.0 percent.

Airliner manufacturers, principally Airbus and its US rival Boeing, took bumper orders for new aircraft last year as airlines looked to renew their fleets after the financial crisis, and to gear up for forecast strong growth in airline traffic, particularly in emerging markets, in Asia and in China.

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China budget airline Spring plans US$400m IPO

Chinese budget carrier Spring Airlines said it plans to raise 2.5 billion yuan (US$400 million) in an initial public offering (IPO) in Shanghai to fund fleet expansion in the country's rapidly expanding aviation sector.

The company plans to sell up to 100 million new shares for listing on the main board of the Shanghai Stock Exchange, according to a draft prospectus released late Thursday.

Proceeds will be used to help purchase up to nine Airbus A320 aircraft and three A320 flight simulators, as well as to replenish working capital, it said in a document filed with the China Securities Regulatory Commission (CSRC).

It already had 39 A320 jets in service and operated 64 inbound and outbound routes at the end of 2013, according to the document.

Spring Airlines first announced plans for an IPO in 2009, seeking to raise more than 1.0 billion yuan, but delayed several times due to sluggish conditions and weakness in the domestic aviation sector, state media has reported.

China's commercial airline industry is dominated by the "Big Three" -- flag carrier Air China, China Eastern Airlines and China Southern Airlines -- but a move towards greater competition has seen the growth of smaller players.

The aviation industry in Asia, especially China, is booming with growing middle class keen to take to the air.

This week Shandong Airlines, one of China's smaller carriers, said it has agreed to buy 50 passenger planes from US manufacturer Boeing as it looks to tap that demand.

Spring's share offer plan must still pass several rounds of review by the CSRC before approval.

Based in the commercial hub of Shanghai, Spring Airlines was set up in 2004 with registered capital of 300 million yuan. The firm recorded a net profit of 732.2 million yuan last year, up 17.2 per cent from 2012, the prospectus showed.

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China Southern Airlines issues profit warning

China Southern Airlines, the country's largest carrier by fleet size, warned of a loss of more than $50 million in the first three months of the year as it was hit by exchange losses caused by a weaker yuan.

In a filing to the Hong Kong Stock Exchange the firm said it would lose 300-350 million yuan ($48.2-$56.3 million) in January-March. That compares with a net profit of 57 million yuan in the same period last year, the filing said.

"The financial expenses of the company substantially increased as compared with the corresponding period of 2013 due to the exchange losses... resulting from the substantial depreciation of renminbi," the company said.

The yuan -- which China's central bank allows to rise and fall only within a controlled band -- slid in March its lowest level against the dollar in nearly 13 months. Analysts have said Beijing has moved to weaken the currency to control speculative funds betting on its continued rise.

The US Treasury on Tuesday warned that the recent fall of yuan could "raise particularly serious concerns" if it represents a reversal in Beijing's commitment to a more free-floating currency. However, it did say China was not a manipulator.

A weak yuan adds pressure to the bottom lines of Chinese airlines that depend on debt measured in foreign currencies, particularly in US dollars, to finance purchases of new aircraft.

China Southern's Hong Kong-listed shares were down 1.62 percent at HK$2.43 in by the break on Wednesday, while the benchmark Hang Seng Index was up 0.63 percent.

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China's Zhejiang Loong Airlines confirms order of 20 A320s

China's Zhejiang Loong Airlines has ordered 20 Airbus planes of the A320 series, firming up a deal made in September, Airbus announced in a statement Sunday.

The carrier which is based in Hangzhou, east China, had been given the green light for the transport of passengers when it signed the Memorandum of Understanding with Airbus at the 15th Aviation Expo China 2013 in Beijing.

Zhejiang Loong Airlines's order concerns 11 A320ceo and nine A320neo.

Zhejiang Loong Airlines "made its first commercial flight with a leased A320, thereby becoming a new Airbus user", the aircraft manufacturer said.

The carrier is "determined to contribute to the economic and social development of Zhejiang province offering efficient transport services," Airbus quoted company chief Liu Qihong as saying.

The airline plans to offer services within a range of four hours around Hangzhou.

Airbus markets the A320 family, a single-aisle jetliner (composed of the A318, A319, A320 and A321) as "the world's most eco-efficient single-aisle product line".

The manufacturer says it had 2,523 firm orders of the aircraft at the end of November.

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Tigerair launches direct flights to Ningbo, China

Budget airline Tigerair has launched direct flights between Singapore and the port city of Ningbo in China, starting Thursday.

The flights depart thrice every fortnight, on alternate Tuesdays, Thursdays and Saturdays. One-way fares are available from $214, inclusive of taxes and other charges. With this latest addition, Tigerair now serves eight destinations in China - Hong Kong, Macau, Shenzhen, Taipei, Guangzhou, Haikou, Lijiang and Ningbo.

"We are proud to be the only airline making a direct Ningbo call from Singapore, and look forward to better serving our customers with this new Tigerair destination," said the airline's chief operating officer, Mr Ho Yuen Sang.

Ningbo was named seventh in Forbes China's 2012 Best Cities for Business, and is connected to major cities like Nanjing and Hangzhou via high-speed rail. It is also part of China's 'Golden Industrial Triangle' economic zone with Shanghai and Hangzhou.

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Airlines dangle sweet deals for off-peak travel

THERE is no better time to take off on a trip.

From less than $300 for short flights on Singapore Airlines (SIA) and other full-service carriers to about $500 for flights to cities in India and China, there are deals galore for budget-conscious travellers considering a vacation.

As the year-end holiday break draws to a close, full-service airlines are dangling sweet deals, with discounts of up to 40 per cent on normal fares, to get people to travel during the slow season from January to March.

Although airlines often offer discounts during off-peak seasons to fill seats, the deals have grown more attractive, said travel agents and aviation analysts.

Fare Deals

Airlines are cutting fares by about 20-40 per cent for off-peak travel.

Air France	⬛ $1,131-$1,360 to cities in Europe
Cathay Pacific	⬛ $281 to Hong Kong
Garuda Indonesia	⬛ $120-$250 to Bali, Jakarta, Surabaya and other Indonesian cities
Jet Airways	⬛ $366 to Chennai ⬛ $520 to Mumbai and Goa
Qatar Airways	⬛ $270 to Bali ⬛ $1,185 to Paris ⬛ $1,850 to Washington
Singapore Airlines	⬛ $238-$278 to Jakarta, Bangkok, Bali and other regional cities ⬛ $698 to Tokyo, Sydney, Melbourne, Seoul ⬛ $1,288 to Europe
Thai Airways	⬛ $428 to Hong Kong, Macau, Yangon ⬛ $1,038 to London, Paris, Milan, other cities in Europe

Source: Airline websites

The main reason is stiff competition not just among full-service airlines but also from budget carriers such as Tigerair and AirAsia.

Travellers keen to bask in the sun and sand in Bali, for example, have many options.

SIA is offering a promotional return fare of $278 while Qatar Airways has a $270 deal. Garuda Indonesia is offering an extra-special $130 fare.

These promotional fares are 20 to 40 per cent lower than the usual rates (see sidebar).

There are good deals for Europe too, travel agents and airlines said.

Thai Airways, for example, is offering starting fares of $1,038 on its website for travel to London, Frankfurt and Paris, among other European cities.

Qatar Airways is doing a special promotion for travellers here to mark a decade of flights to Changi Airport, said Mr Jonathan Zhang, its country manager for Singapore. Discounts are available for selected destinations such as New York and Paris, he said.

Mr Sentot Mujiono, Garuda Indonesia's vice-president for South-east Asia, said: "Usually, travel bookings are slower in the first quarter of the year - many Singaporeans have just returned from their year-end holidays and are easing back into work."

But there are folks who prefer to avoid peak periods, he said, noting that travelling off-peak means cost savings from discounted travel and fewer crowds.

Ms Alicia Seah, marketing communications director at tour agency Dynasty Travel, said: "There is a lot of capacity being added to the market with new flights and destinations, so you do find that airlines are offering good deals to attract travellers."

In addition, airlines are competing with cruise operators, which are bringing new and larger ships to Singapore, she said.

"The big winner here is the traveller," she added.

One traveller who is mulling over the offers is civil servant Amy Tham, 39, who is single.

"I have no kids and the last thing I want is to travel during the school holidays when everything is so expensive and it's crowded everywhere. I think the off-peak deals are great."

Said customer service manager Catherine Kueh, 50, who paid about $1,200 for a week-long package tour to China next month: "It's a good deal - three cities, meals, accommodation."

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Tigerair, Scoot in JVs to set up Taiwan, Thai budget airlines

Taiwan's China Airlines and Singapore's Tiger Airways plan to set up a Taiwan-based budget carrier.

This will allow Taiwan's biggest airline to tap into Asia's low-cost aviation market.

Tigerair, in which Singapore Airlines owns about a third stake, will also extend its presence into the new and largely untapped markets of Taiwan, Japan, and Korea.

In a media release on Monday, Tiger said the new carrier will operate under the Tigerair brand and be independently managed. Tigerair's website will be the main sales and distribution platform.

Tigerair will initially hold 10 per cent of the start-up, while China Airlines will hold a 90 per cent stake.

The start-up will have a registered capital of T$2 billion (about S$85 million).

The partner carriers will be submitting applications for regulatory approvals.

Tiger Airways also announced an agreement with Indian budget carrier SpiceJet, allowing both to connect passengers on each other's flights.

Tigerair currently flies to Hyderabad in India and the agreement with SpiceJet will allow the two to connect 14 Indian cities from there.

Tiger Airways and Scoot -- the long-haul, low-cost unit of Singapore Airlines -- also agreed to work together on joint operations, and sales and marketing on parallel routes.

In a separate announcement, Scoot said the company plans to establish a new Bangkok-based low-cost carrier with Thailand's Nok Airlines.

The new airline will be named NokScoot and will be based at Don Mueang International Airport. It will operate wide-body aircraft on medium and long-haul international routes.

Nok will have up to a 51 per cent stake in the new carrier and Scoot will hold a 49 per cent stake.

The initial investment will be THB2 billion (about S$80 million).

The establishment of the new airline is subject to regulatory approvals.

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Japanese airlines stop obeying China's air zone rules

Japanese airlines said Wednesday they had stopped following rules set by China when it unilaterally declared the right to manage the skies over the East China Sea.

The reversal comes after pressure from the Japanese government, which insisted China's announcement was invalid, and after governments around the world lined up alongside Tokyo.

Japan's two major airlines had previously said they had been submitting flight plans to Chinese authorities for any plane that was due to pass through the area, a key demand Beijing set out on Saturday when it said it had established an Air Defence Identification Zone (ADIZ).

The move heightened tensions in the region, where temperatures were already running high over the ownership of the Tokyo-controlled Senkaku islands, which Beijing says it owns and calls Diaoyu.

On Tuesday it was roundly condemned by Japan and its allies, including the United States, which flew two US B-52 bombers over the disputed islands in a show of force.

"After the Japanese government said private airlines don't have to follow Beijing's claims on Tuesday, our industry body held a meeting on Tuesday and decided we won't follow" Beijing's demands any more, a spokesman for former flag carrier Japan Airlines told AFP.

"JAL has stopped submitting flight plans since 0000am Wednesday (1500 GMT Tuesday)," he said.

JAL's rival All Nippon Airways also said it has stopped complying.

"The Scheduled Airlines Association of Japan, an aviation industry body, made the decision after it received assurances from China, through the Japanese foreign ministry, that Beijing has no intention of obstructing the flights of commercial airline carriers," the JAL spokesman said.

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Firefighters caused death of Asiana crash victim: coroner

One of the victims of this month's Asiana Airlines jet crash in San Francisco survived impact but was killed on the tarmac when she was run over by an emergency vehicle, officials said on Friday.

Results of the autopsy on 16-year-old Chinese student Ye Mengyuan, one of three people killed in the July 6 disaster, had been keenly awaited after firefighters admitted a tarmac accident was possible.

The girl, who was "alive at the time," died due to "multiple blunt injuries that are consistent with being run over by a motor vehicle," San Mateo county coroner Robert Foucrault told reporters.

San Francisco fire chief Joanne Hayes-White offered her "condolences and apologies to the family... in light of the coroner's findings in this tragic accident."

"Obviously this is very difficult news for us -- we're heartbroken," Hayes-White said. "We're in the business of saving lives."

The city fire chief said the entire emergency operation was still under review.

"I continue to be very proud of all the men and women of our department. Many of our members risked their lives to save passengers and crews that day," she said, lamenting the "tragic accident."

A police inquiry found that Ye was hidden under a layer of white foam, used by firefighters as a flame retardant in the wake of the crash upon landing of Asiana Flight 214.

Hayes-White said the vehicle involved was likely "one of the specialized rigs at the airport," adding: "There were many surrounding the aircraft."

She said fire department personnel were cooperating with both a police probe and the one led by the US National Transportation Safety Board.

The two other people killed in the crash were also female Chinese youths.

More than 180 others injured in the crash of the Boeing 777, which had left Shanghai and made a stop in Seoul before heading to San Francisco.

Two of them were still in critical condition on Friday, with "spinal cord injury, abdominal injuries, internal bleeding, road rash and fractures," San Francisco General Hospital said in an update.

The passenger jet had 307 people on board, including 16 crew members. More than 120 people escaped unharmed.

The crash was the carrier's first passenger jet crash in 20 years.

According to preliminary findings from the NTSB, the plane crashed because it was flying too low and too slowly as it approached the runway.

The tail of the aircraft broke off as the plane clipped a seawall short of the runway, skidding out of control and quickly catching fire.

It has also emerged that the otherwise experienced pilot was undergoing his first major training on the Boeing 777, and it was his co-pilot's first time working as instructor.

Asiana has argued the pair were "competent" veterans with around 10,000 flying hours including dozens of flights to San Francisco.

Officials in South Korea have said that Asiana, the country's number two airline, will be subject to a weeks-long government investigation.

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Not a nice thing to know when your motto is to save lives yet you caused the death of a young life. The white foam didn't help matters and in the chaotic scene after the crash, such an incident is unfortunate, my condolences to the girl's family.