Luxury air travel soaring to new heights

Keen competition in the luxury air travel segment is seeing an 'arms race' in first class flight, with big commercial airlines overhauling their premium products to expand their suite of offerings. Meanwhile, industry watchers have said private jet travel is also taking off for short-haul flights around the region.

Earlier in November, Air France launched its new first class 'La Premiere' suites in Singapore.

Four individual suites of about three square metres each are on board 19 of the airline's Boeing 777-300 fleet, and they will be available on daily flights between Singapore and Paris by the middle of Jan 2015.

Mr Nicolas Ricard, Country Manager Singapore, Air France-KLM said: "Luxury air travel demand is growing in Asia. This is a target for Air France. Air France is undergoing significant transformation with an investment of €500 million in upgrading all the long haul products, and services. This is not only La Premiere suite, but also other cabins."

In May, Middle Eastern airline Etihad unveiled its new first class suite, the Residence, which will feature a living room, double bedroom and ensuite shower room.

Also within the past month, British Airways announced that it has added Singapore as its fifth destination in its network of A380 service routes from London. The move is part of a £5 billion investment the carrier has made in the last two years to upgrade its products and services.

Mr Robert Williams, Regional General Manager, Southeast Asia, British Airways, said: "The A380 allows us to offer even more space to first class customers than they are already enjoying on the other air craft in the fleet. They have 30 per cent more space in their seat, 60 per cent more personal storage.”

“We maintain Singapore in Southeast Asia as a hub down to Australia as part of the traditional kangaroo routes between Europe and Australia. Those stories demonstrate our commitment to SEA and what we're doing in this market," he added.

DEMAND FOR LUXURY AIR TRAVEL DEPRESSED: ANALYSTS

Despite the 'arms race', aviation analysts said demand for luxury air travel is currently somewhat depressed. According to statistics from the International Air Transport Association (IATA), first and business class travel within Asia contracted around two per cent in September, compared to a year ago.

IATA said overall traffic growth within Asia has expanded only 0.2 per cent during the first three quarters of 2014, compared to the same period in 2013. The slowdown has been related to notable declines in international travel for Thailand and Malaysia, due to geopolitical events and weakness in the Chinese economy.

Internationally, current performance for premium travel is relatively weak, growing by 2.3 per cent year-on-year in September, compared to the overall rate of increase of 3.7 per cent during the first three quarters of 2014.

Changi Airport Group said about 10 per cent of passengers fly on first and business class.

Mr Greg Waldron, Asia Managing Editor, Flightglobal said: "These products tend to be very sensitive to economic issues. So for example, in a weak economy, you might get people trading down from first class to business, and from business class to economy. And certain things have also depressed first class travel recently - the crackdown on corruption in China, that has seen a reduction in some first class usage."

GROWING DEMAND FOR PRIVATE JETS FOR SHORT HAUL FLIGHTS

While airlines largely offer a product for long-haul travel, many do not have a first class cabin for short-haul flights. Instead, aviation analysts said there is a growing demand for private jet chartering for regional travel. Industry players have also said supply is on the rise.

It is estimated that there are more than 30 private jets based in Singapore, up from just about 10 aircraft five years ago. About half of these are available for charter.

Mr Stefan Woods, Sales Director, Singapore Air Charter said: "What that's done is it has brought the price down for the consumer, which is a good thing. A lot of our clients locally are local businesses that use our services as a tool.”

“It's not a luxury at all. It's a necessity to go to some places that the airlines don't service, or they service infrequently. Sometimes airlines don't have business class on board, and it's not as flexible as having a private jet,” he said.

Mr Woods also said first class passengers on ultra-long-haul flights often arrive in Singapore and head straight to a private jet to a destination in the region.

According to Changi Airport Group, business aircraft movements at Seletar Airport have grown at an average annual rate of almost 20 per cent from 2009 to 2013.

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Lufthansa to drop services to Abu Dhabi

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

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

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

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

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

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Etihad Airways sees 29% revenue surge in Q3

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

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

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

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

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

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Etihad Airways to avoid Iraqi conflict airspace

Abu Dhabi's Etihad Airways announced on Saturday (Aug 9) that it will reroute flights over Iraq in the wake of US air strikes on Islamist State (IS) fighters there. "Etihad Airways has announced that it will reroute its flights to avoid conflict airspace in Iraq," a statement by the carrier said.

"The decision follows the deterioration of the security situation in parts of the country. The safety of Etihad Airways' passengers and staff is of paramount importance, and the airline will continue to monitor the security situation closely."

On Thursday, Etihad also said it was suspending flights to Iraqi Kurdistan's capital of Arbil because of fighting in northern Iraq. The first US air strikes on Friday struck IS positions and at least one convoy of vehicles carrying militants west of Arbil. However, "flights to Basra and Baghdad, which have a daily risk assessment, continue to operate as normal," Etihad said on Saturday.

Dubai's Emirates Airline also announced on Saturday that it has "immediately" suspended its flights to Arbil due to the "security situation there," in a statement carried by the UAE's official WAM news agency. Daily flights to Basra and four weekly flights to Baghdad will however continue, the airline said, adding that it is "closely following developments" in restive Iraq.

Emirates had already announced last month that it will no longer fly over Iraq.

The Federal Aviation Administration in Washington banned all US civilian flights over Iraq just hours after American warplanes on Friday bombed positions held by the jihadists, who have occupied swathes of northern Iraq.

British Airways has said it will no longer fly over Iraq, as have Lufthansa and its subsidiaries Austrian Airlines and Swiss - joining Air France, Emirates, KLM Royal Dutch Airlines and Virgin Atlantic, which quietly opted to do so over the past two weeks.

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India's Jet eyes profit by 2017 with boost from Etihad

Jet Airways, India's second-biggest carrier, forecast Wednesday a return to profit in three years through cost-cuts, route-sharing with new partner Etihad Airways and restructuring of hefty debt. The publicly traded airline, which has not posted an annual profit since 2007, has been struggling in an overcrowded market beset by cut-throat fare wars, high fuel costs and shoddy infrastructure.

"The game plan is in place, it's now about delivery," Jet Airways' new chief executive Cramer Ball told reporters in New Delhi. "It's a three-year plan -- 2015 we will reduce losses, 2016 we will consolidate and 2017 we'll have profitability," he said.

Ball was speaking at the airline's first news conference with Etihad since India cleared in May the fast-growing Abu Dhabi airline's purchase of a 24-per cent stake in the Indian carrier for 21 billion rupees (US$330 million). Jet's shares jumped nearly six per cent on the turnaround plan before finishing up 3.5 per cent at 264.95 rupees. Ball, an Australian, said Jet was already profitable on international routes which contribute 43 per cent of revenues, a figure he projected would rise to 63 per cent by 2015.

All six major airlines, except leading carrier IndiGo, have been haemorrhaging money but analysts project a brighter future longer-term thanks to India's fast-growing growing middle class. India's carriers lost a total $1.3 billion in the financial year to March, the Centre for Asia Pacific Aviation consultancy calculates.

Jet's net loss in the last financial year ballooned to 41.3 billion rupees from a 7.8-billion loss the previous year. Debt stood at $1.8 billion.

Etihad's Jet stake enables it to compete better with regional rivals such as Qatar Airways and Emirates which transport a large slice of Indian passenger traffic to the Gulf and beyond. Etihad's purchase of a minority stake in Jet came after the government relaxed foreign ownership rules to allow overseas carriers to buy up to 49 per cent of local airlines.

Jet's hopes of returning to profit come as Indian skies are set to become more congested. Singapore Airlines and Tata Sons are due to launch a new carrier by October. Asia's biggest budget carrier AirAsia launched an Indian airline in June.

Ball said Jet would look at disposing of some planes to staunch losses. Etihad chief executive James Hogan called India one of the "most dynamic markets in the world" with 42 million passengers travelling annually internationally.

Jet and Etihad are using their alliance to increase their global reach through codesharing, selling tickets on each other's routes. Hogan in the last three years has piloted deals taking stakes in seven ailing carriers to help make desert-oil producer Abu Dhabi a thriving passenger hub.

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Etihad pushes to agree Alitalia deal this month: CEO

Etihad Airways chief James Hogan said on Wednesday he aimed to complete negotiations on buying 49 per cent of Alitalia by the end of the month but stressed the company had to be "right-sized" first.

"We're all focussed on the end of this month. With our agreement, more time is allowed but our focus is the end of the month," Hogan said during a visit to Italy, where he was launching a new Etihad route between Abu Dhabi and Rome.

"We are in the final stages of the negotiations. We do need to right-size the airline," he said, as Alitalia management continued talks with unions for around 1,600 job cuts.

"We don't step into these negotiations unless we're convinced the airline will move to profitability.

"If we complete, we'll complete with the right foundation. The key issue is getting the cost base right," he said.

Alitalia "needs to be re-energised and brought back alive," he continued, adding: "A re-energised Alitalia could be one of the most successful airlines in Europe but to achieve that we have to have the right starting point."

Alitalia said it had agreed a job cuts plan with unions representing 80 per cent of the workforce although Italy's biggest trade union, the CGIL, has not given its go-ahead.

It has also negotiated a deal with current stakeholders to renegotiate Alitalia's debt of about 565 million euros ($765 million).

Asked about the future role for Air France-KLM, an existing shareholder, Hogan said: "Air France and KLM and Delta are all very important partners. We expect that relationship to continue."

The Emirates national carrier -- based in Abu Dhabi -- is planning to buy a 49-per cent stake in the debt-laden Italian flag carrier, which currently employs 12,800 people.

Etihad's initial investment is expected to be around 560 million euros ($762 million), and 660 million euros more has been mooted in future to develop the airline.

Etihad has expanded hugely since it was founded in 2003 and now has stakes in India's Jet Airways, Air Serbia, Air Seychelles, Aer Lingus and Air Berlin.

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Etihad rescues crippled Alitalia with deal to take 49%

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

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

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

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

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

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

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

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

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

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

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

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

And he mentioned 2,200 job cuts.

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

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

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

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Alitalia board gives green light to Etihad deal

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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Etihad boss meets Italian PM with Alitalia deal close: Ansa

Etihad Airways boss James Hogan met with Italy's Prime Minister Matteo Renzi on Thursday, as his company nears a deal to purchase a stake in debt-laden Alitalia airline, Italian media reported.

The meeting took place in the prime minister's official residence with Renzi's right-hand man cabinet secretary Graziano Delrio also attending.

The Ansa news agency cited sources saying that a deal on could be in place "within hours".

On Tuesday, Italy's Transport Minister Maurizio Lupi told a Senate hearing that Abu Dhabi-based Etihad had completed its assessment on whether to purchase a stake in Alitalia and that a draft deal could be imminent.

Italian business daily Il Sole 24 Ore also on Tuesday said Etihad was planning to buy a stake of around 40 per cent, which would make it by far the biggest shareholder in the carrier and respect the 49.9-percent limit for non-European airlines.

It also said Etihad could invest between 300 million and 500 million euros ($414 million and $690 million) in return for a restructuring plan that would include up to 3,000 job cuts and an upgrade of infrastructure.

Alitalia in February reached a deal with trade unions for the equivalent of 1,900 job cuts and in September last year shareholders gave unanimous approval for a capital increase to save the airline from bankruptcy.

Etihad is expanding rapidly and has bought minor shares in several smaller carriers including Air Berlin and India's Jet Airways as it competes with larger Gulf rivals Emirates and Qatar Airways.

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Smoke scare on Etihad flight from Melbourne

Investigations were underway on Wednesday after smoke was detected in two toilets on an Etihad Airways flight from Melbourne to Abu Dhabi, forcing a diversion to Jakarta.

The carrier said the drama occurred on flight EY461 on Monday with the captain diverting to the Indonesian capital as a precaution.

The plane landed normally and after a security search of the aircraft, passengers and their carry-on luggage it took off again with the captain enforcing "strict controls over passenger movement in the cabin, particularly passenger access to the toilets".

Then, two hours before arrival in Abu Dhabi, the smoke alarms went off again.

"The smoke was detected and dealt with immediately by the crew," Etihad said.

"The captain decided to position crew members at each of the toilets which meant that normal cabin service was not possible.

"The food and beverage service was discontinued and the crew continued to monitor and secure toilet access for the remainder of the flight."

The airline said all passengers and crew were interviewed by authorities in Abu Dhabi with the investigation ongoing.

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Etihad Airways in discussions with debt-laden Alitalia

Emirati carrier Etihad Airways is in discussions with debt-laden Italian airline Alitalia, spokesman Tom Clarke said on Thursday, without elaborating.

"Etihad Airways is in discussions with Alitalia. We have no further comment at this time," Clarke said in a terse text message to AFP.

Reports have suggested that the Abu Dhabi-based carrier was preparing a big investment in Alitalia, which is in debt to the tune of 1.2 billion euros (US$1.6 billion).

In October, shareholders gave unanimous approval for a capital increase of up to 300 million euros to save Alitalia from bankruptcy

The carrier has been looking for a foreign partner to rescue it.

Earlier on Thursday, Italian media reported that Italy's postal service would take part in a capital increase for Alitalia and chip in 75 million euros.

But postal officials contacted by AFP did not confirm.

Another 225 million euros in the capital increase have already been contributed by Alitalia's existing private sector investors and by banks.

Air France-KLM, which was until now was the main shareholder with 25 percent, has declined to contribute and will see its share greatly diluted.

Alitalia has launched a vast restructuring plan with 300 million euros in budget cuts and the reduction of 1,900 jobs.

The capital increase plan was formulated in October and November under pressure from the Italian government but the postal service's participation has been widely criticised as a possible state subsidy.

Etihad is vastly expanding and has bought minor shares in several smaller carriers around the world as it competes with larger Gulf rivals Emirates and Qatar Airways.

Etihad owns 29 percent of Air Berlin, 40 percent of Air Seychelles, 19.9 percent of Virgin Australia and three percent of Aer Lingus.

In November, India's Jet Airways said it had completed the sale of a 24-percent stake to Etihad after obtaining regulatory approvals.

Analysts said that, for airlines such as Etihad, part of India's allure is the chance to swell passenger traffic on routes to North America, Europe, the Middle East and other parts of the world.

Etihad also announced in mid-November that it was acquiring 33.3 percent of Swiss carrier Darwin Airline, which it plans to rebrand as Etihad Regional.

The acquisition is awaiting regulatory approval.

Etihad is also due to acquire 49 percent of Air Serbia in January.

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Airlines increase baggage allowance: worth the weight?

Hot on the heels of Emirates and Qantas Airways, legacy carriers like Singapore Airlines and Garuda Indonesia recently announced a 10-kilogramme extra baggage allowance for passengers across all classes.

While analysts say other carriers might soon be pressured to do the same in order to keep up, at the end of the day, it still comes down to dollars and cents.

Asia Pacific airlines are hoping to hit the sweet spot with more customers by upping the baggage allowance, starting from at least an extra seven kilogrammes in economy class.

Qatar Airways also added an extra seven kilogrammes for its economy class passengers, from 23 to 30 kilogrammes in September 2013. Emirates extended the baggage allowance in 2009 and Etihad Airways upped theirs in 2012.

"It's ironic that many of these legacy carriers that have been picky with passengers for being overweight in terms of their baggage and suddenly, because of the intense competition from low-cost carriers, they're saying ‘here's another 10-kilogramme allowance’. I don't think it will make much of a difference," said Shukor Yusof, an analyst at Standard & Poor’s capital IQ.

"Most people travelling nowadays travel very lightly. They don't need a lot of baggage. But if you're allowing 10 kilogrammes, I think it is negligible. In the whole context of whether it is going to increase your bottom-line, I don't think it will have any impact at all. What will impact is whether or not fuel prices will stay low."

Travellers typically have to pay for checked-in baggage in a low-cost carrier (LCC). But that playing field is changing with the likes of Thai domestic LCCs such as Nok Air and Thai Lion Air that offer free 15-kilogramme baggage limits, effectively competing with the free 20-kilogramme allowance offered by most legacy carriers.

Besides Garuda Indonesia, Singapore Airlines and Malaysia Airlines, China Southern Airlines and Qantas Airways have also increased their baggage allowance for their customers on certain routes.

But analysts say this will not go very far in terms of increasing the airlines' bottom-line. Rather, they say these full serviced carriers should work on enhancing other product offerings to stand out from the competition.

“There are many other ways to compete. In-flight entertainment is one, more comfortable seating is another, greater choice in terms of selection of the type of services that you want and the type that you don't need, and this should result in a lower-price ticket,” said Paul Ng, global head of aviation at Stephenson Harwood.

"For SIA, they already provide the best service in economy in the region; you've got food, drink service, excellent in-flight entertainment,” said Greg Waldron, Asia managing editor at Flight Global.

“Unfortunately a lot of the time when people choose air tickets, they choose to buy on price and that's always going to be a challenge for airlines like this. You can always throw things at the customer but it's always going to come back to people's wallets. "

Baggage and ticket prices aside, experts say it all boils down to the cost of fuel that will ultimately affect the airlines' bottom-line. 

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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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India's Jet Airways closes stake sale to Etihad

India's Jet Airways has completed the sale of a 24 per cent stake to Abu Dhabi's Etihad, sealing the first deal with a foreign airline since New Delhi eased ownership rules, the carriers said on Wednesday.

Jet in April announced the US$335-million plan to sell the stake to Etihad, taking advantage of government moves a year ago to open up the aviation sector to foreign investment.

"All requisite Indian regulatory approvals" have been obtained, the airlines said in a joint statement, adding they had "closed the transaction".

"India is one of the largest and fastest-growing markets in the world and a key part of the Etihad Airways' growth strategy," James Hogan, Etihad's chief executive, said in the statement.

The sale by Jet, one of India's biggest publicly traded carriers, has been regarded as a key test of India's ability to attract foreign investors to its ailing airline sector.

Indian carriers need money to fund expansion and cut debt after years of losses caused by fierce fare battles and rising fuel costs.

The Congress-led government last year allowed international carriers to buy up to a 49 per cent stake in domestic airlines.

"The infusion of foreign direct investment in the aviation sector will result in economies of scale, grow traffic at our airports, and create job opportunities," said Naresh Goyal, a former travel agent who is Jet's founder and chairman.

The aviation sector, once vaunted as a symbol of India's economic vibrancy, has seen its fortunes stumble in the face of a slowing economy, over-expansion and rundown infrastructure.

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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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Qantas blasts "predatory" rivals

Qantas chief executive Alan Joyce has demanded the government halt what he described as a "virtual takeover" of Virgin Australia by foreign airlines, saying they were working to destabilise the national carrier.

Singapore Airlines, Air New Zealand and Abu Dhabi-based Etihad already own 63 percent of Qantas' main domestic rival and under a A$350 million (US$328 million) capital raising proposal announced last week, that could increase to as much as 72 percent.

In a searing letter to Prime Minister Tony Abbott and all state governments, seen by the Australian Financial Review, Joyce charged it was the "final act" by "predatory" state-owned airlines to cripple Qantas both domestically and internationally.

Joyce's ultimate fear is that the capital raising, "supported and largely underwritten by three foreign governments'', was part of a strategy of subsidising Virgin so it could continue to undercut Qantas on profitable domestic routes.

The domestic sector is a key money spinner for the airline and it has helped prop up its underperforming international network.

In his letter, Joyce said the move by the three airlines had "all the characteristics of predator behaviour (to) substantially weaken a major competitor, Qantas Group, and recoup the costs at a later date", the newspaper reported.

Qantas confirmed in a statement on Monday that a letter had been sent "to express concerns, as the national carrier, about potentially damaging shifts in Australia's aviation industry".

"Virgin Australia's proposed capital raising could see its foreign ownership rise to more than 80 percent without the need for any further regulatory approval," the statement said.

"Despite this, the airline would retain all the traffic rights given to Australian carriers.

"If wholly privatised, Virgin Australia's ability to receive potentially unlimited capital from its government-backed owners would seriously distort the domestic aviation market for the benefit of foreign interests.

"The decision of these shareholders to invest in Virgin Australia's loss-making strategy highlights that these airlines aren't subject to the same commercial realities as Qantas."

It demanded Canberra "fully examine the motives behind the virtual takeover of Virgin Australia by foreign airlines, and to prevent destabilising of the domestic aviation industry, local tourism and jobs".

Qantas said the situation was compounded by the disadvantage it experienced from the restrictions imposed by the Qantas Sale Act when it was privatised in 1995, which limits foreign ownership in the national carrier to 49 percent.

Joyce said the government should urgently revisit the "outdated policy framework".

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Air Serbia names first plane after Djokovic

Serbia's new national airline, Air Serbia, began flying on Saturday with a plane named after favourite son Novak Djokovic, the men's tennis world number two.

The Airbus A319, emblazoned with a double-headed eagle and Serbia's national red, blue and white colours, took off for Abu Dhabi.

Air Serbia said all its future planes would be named after prominent Serb figures.

The airline was formed in August, when the Abu Dhabi-based Etihad Airways acquired 49 per cent in Serbia's sole air carrier JAT.

Etihad has been awarded a five-year contract to manage the carrier.

Earlier, Etihad's chief James Hogan said the company's first 10 new planes will also be A319s, part of Airbus's family of single-aisle medium-haul aircraft that can carry 124 passengers in its normal configuration.

JAT has a fleet of 14 planes, 10 Boeing 737-300s and four ATR 72-200s, all of which are around 20 years old.

Etihad holds equity investments in Airberlin, Air Seychelles, Virgin Australia, Aer Lingus and Jet Airways.

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India's Jet Airways shares slump on worries over Etihad deal

Shares of Jet Airways slid as much as six percent on Tuesday amid new investor worries over whether the Abu Dhabi-based Etihad airline would get final permission to buy a stake in the private Indian carrier.

The Jet-Etihad deal, announced in April, marks the first overseas investment in an existing Indian carrier since New Delhi eased restrictions to allow foreign firms to take up to a 49 percent holding in the country's airlines.

But a request by the prime minister's office on Monday for the plan to be discussed by cabinet raised new worries about the fate of the deal. It sent shares of Jet down six percent before they retraced to trade two percent lower at 455 rupees.

Aviation minister Ajit Singh, who is reported to have threatened to resign if the deal collapses, said: "I don't see a problem in the Abu Dhabi deal going through."

Speaking to India's NDTV, he added: "Ask the prime minister's office if the deal is on hold despite being signed."

Etihad plans to pick up a 24 percent holding in Jet under the 20.5-billion-rupee ($344 million) deal that would allow the Indian carrier to reduce its hefty debt and expand its global reach by using the UAE airline's network.

But the deal, the largest foreign investment proposal in the aviation sector, faces regulatory hurdles, with various ministries raising objections over control of Jet after the deal as well as over bilateral plans for an increase in flights between India and Abu Dhabi.

Many of the new seats would go to Jet and Etihad. India's opposition has alleged that the nearly fourfold rise in flights was aimed at clinching the deal and could divert vital business from ailing state-run flagship Air India.

The Jet-Etihad deal would supply the Abu Dhabi carrier with hundreds of thousands of new passengers on its routes to Europe, Africa and West Asia as the emirate aims to become a hub for intercontinental air traffic.

Ajit Singh said Tuesday the deal's opponents were "long on politics and short on facts".

Federal cabinet secretary Ajit Seth was due to chair a high-level meeting of bureaucrats late Tuesday in a bid to iron out difficulties.

A parliamentary committee last month recommended the bilateral agreement with Abu Dhabi "be reconsidered by the government to protect our national carrier and the airports of India".

The committee charged that the 32 percent premium to Jet's April share price offered by Etihad "could be a backhanded way of obtaining access to the huge civil aviation market in India".

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Still dragging with the government needing more time to understand the deal better. One will wonder what may happen if the deal falls to go through. India wouldn't want a second case of Kingfisher.

India's Jet Airways shares fall as Etihad approval delayed

Shares of India's private carrier Jet Airways slumped nearly 12.3 per cent Monday morning, after authorities last week delayed approval for Abu Dhabi-based airline Etihad to acquire a stake.

Jet shares fell as much as 12.27 per cent to a low of 411.6 rupees at the Bombay Stock Exchange.

The Jet-Etihad deal, announced in April, is the first overseas investment in an existing Indian carrier since New Delhi eased restrictions to allow foreign firms to take up to a 49 per cent stake in the country's airlines.

Etihad plans to pick up a 24 per cent stake in Jet Airways under the agreement.

India's Economic Affairs Secretary Arvind Mayaram said the proposal was deferred as they required more details of the effective control and ownership of the new firm.

The Etihad investment will allow Jet to reduce its hefty debt and expand its global reach by using the UAE airline's network.

In March, India's foreign investment panel cleared a proposal by low cost Malaysia-based AirAsia to set up an airline in India through a joint venture with the Tata conglomerate and another partner.

Indian airlines have been under pressure to grow due to fierce competition among carriers, with India's rapidly expanding middle class starting to favour air travel over the country's main mode of transport by train.

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The delay is not going to do any good now that the share prices of the company is dropping. Such issues should have been ironed out long ago. More communication between the various parties are needed, quickly.