JAL says nine-month net profit slips, ups year forecast

Japan Airlines (JAL) on Monday said that its net profit in the nine months to December slipped 3.7 percent to $1.52 billion, but the carrier boosted its full-year profit estimate.

JAL, which re-listed its shares in Tokyo last year after a high-profile bankruptcy restructuring, said it booked a 140.64 billion yen ($1.52 billion) net profit in the nine-month period, while upping its profit estimate for the year to March to 163 billion yen from an earlier 140 billion yen forecast.

Sales over the nine-month period were up 3.6 percent at 942.04 billion yen.

JAL credited the upward full-year profit revision to an expected income boost "from new products and services as our business in Europe and the United States as well as Southeast Asia are performing well, despite concerns over the suspension in service of the Boeing 787".

JAL and rival All Nippon Airways (ANA) have been hit by the worldwide grounding of Boeing's Dreamliner following an emergency landing by an ANA domestic flight earlier this month.

The carriers, major Dreamliner customers with over 100 combined orders, have each cut hundreds of flights that affected tens of thousands of passengers.

Aviation regulators are focusing on the next-generation plane's lithium-ion battery system as the cause of a problem that forced an ANA flight to make an emergency landing in mid-January, setting off probes and the international no-fly order.

US regulators have said they will not allow the 787 to fly again until they are sure the problems around the battery system are fixed.

The Japanese carriers have also been affected by a row between Tokyo and Beijing over sovereignty of a group of islands in the East China Sea, which triggered anti-Japan rallies across China and a consumer boycott of Japanese brands.

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Currently still in the green despite a drop in profits. It hasn't been an easy year for Japanese operators. The conflict with China, the grounding of the Dreamliner and the introduction of low cost carriers. With the fiscal year ending in end of March, their profits will definitely take a huge hit, depending on when the FAA will clear the B787 for flight.

More services as Qantas broadens reach in Asia

Australian flag-carrier Qantas Monday announced plans to broaden its reach in Asia as part of a strategy to turn around its struggling international arm, with several extra destinations being considered.

The move is a consequence of its global alliance with Dubai-based Emirates, which means its services to Asia will no longer be tied to onward links to Europe.

New direct destinations from Australia being considered include Beijing, Seoul, Mumbai, Delhi and Tokyo-Haneda, while increasing capacity and frequency of flights to Hong Kong and Singapore.

Qantas International chief executive Simon Hickey said Asia was a key pillar of the company's future.

"Our first step has been to restructure existing services to Asia now that they are no longer tied to onward links to Europe," he said.

"The number of dedicated seats on Qantas services to Hong Kong and Singapore is increasing significantly, because capacity previously set aside for customers going to Europe via these hubs can be freed up.

"The joint Qantas-Emirates network into Asia gives our customers a fresh set of options, including double daily services to Singapore from Melbourne, Sydney and Brisbane," he added.

"The maturing Jetstar network gives travellers another set of alternatives once they land in Asia."

As part of the plan, from March 31 arrival times into Hong Kong, Bangkok and Singapore will be brought forward by up to three hours to increase the number of onward connections while Kuala Lumpur will added as a destination.

The other new destinations are not likely until 2016.

Other changes will see Qantas cease its Adelaide-Singapore and Perth-Hong Kong services but boost Brisbane-Hong Kong flights from four per week to seven, and add four additional weekly Sydney-Singapore services.

The airline has also brought forward the end date for its loss-making Frankfurt flights by six months to 15 April.

Australia's competition watchdog last month gave Qantas and Emirates permission to launch their global alliance in which the airlines will coordinate ticket prices and flight schedules.

Qantas will shift its hub for European flights to Dubai from Singapore while ending its partnership with British Airways on the so-called kangaroo route to London.

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.

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With the seats freed up after the collaboration with Emirates, Qantas can now sell now tickets on flights to Asian destinations namely Singapore and Hong Kong. This doesn't sound too good for Cathay Pacific and SIA unless their fares can be competitive to Qantas'. However, there will also be flights from Adelaide and Perth which will be cancelled by Qantas, and that means they SIA and CX will be capitalizing on the demand from these two destinations.

SIA cabin crew unhappy with allowance changes

A strong Singapore dollar and protracted negotiations between Singapore Airlines (SIA) and its staff union have caused unhappiness among some cabin crew, who have to pay back a significant portion of their location meal allowances.

These allowances are pegged to currency exchange rates and hotel menu prices in different regions. They are adjusted every two years to take into account changes in menu prices and every six months for currency exchange rate movements.

In a circular sent to SIA cabin crew last month, the carrier noted that there had been concerns about how the allowances were calculated.

It explained that the cut in meal allowances between July and December last year was based on hotel menu prices in different regions and currency exchange rates.

Allowances for January to June this year will be adjusted based on exchange rates alone.

While allowances are usually negotiated and agreed upon by the company and airline unions before the effective dates, negotiations last year did not conclude in time. As a result, cabin crew were paid an interim allowance from July to November last year, based on the previous rate.

With the agreement signed on Nov 20, the carrier said it would be making deductions and payments to salaries of cabin crew members, as a “retroactive adjustment” for the allowances already paid out from July to November.

The adjustments would also apply to technical crew, namely pilots.

“I assure you that the adjustment is not a ‘pay cut’ but is made necessary because of the delay in arriving at an agreement on the new rates,” said Mr William Koh, SIA’s Divisional Vice-President for Cabin Crew in the circular to staff.

According to SIA cabin crew TODAY spoke to, the allowances received for working on flights to European countries and the Americas were the hardest hit by the adjustment — by as much as 20 per cent. For example, the allowance for a five-day trip to London used to be about S$900 but has now decreased to about S$650.

Meanwhile, allowances for Asian countries such as China and India have been adjusted upwards by an average of 25 per cent.

The last time cabin crew members had to return a portion of their allowances was in 2004.

A 24-year-old flight stewardess who gave her name as Anastasia said: “They are affecting our morale yet they still expect us to give our best.”

Added a flight steward who wanted only to be known as Mr Lim, 30: “The fact that they did not take inflation into view, I feel that it’s poor judgment and the timing was just bad. They have not increased location meal allowances for a long time — in the five years I have been with the airline, they’ve already adjusted (allowances) downwards three times.”

Those who have left the company would not have to pay the company back, nor will they receive any back payments, said SIA spokesman Nicholas Ionides.

When contacted, SIA Staff Union Chairman Tony Sim said that the union — which represents more than 7,000 cabin crew — will be meeting with them to clarify that the adjustments do not mean a pay cut.

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After fixing the pilots, SIA turn their attention to the cabin crew, the very people they depend their image on; The Singapore Girl. Nobody likes it when their allowances get cut, and if it is true that a London flight allowance have been cut from S$900 to S$650, the crew must be really infuriated.

But SIA as it is, is still a company many would love to work for. For those who think their allowances is not good enough, they can always seek alternatives in other airlines like Emirates and Qater Airways. There is definitely no lack of replacements judging by the throng of people who goes for the walk-in interviews every other month.

Three injured as plane veers off Rome runway

A Romanian plane carrying 50 passengers veered off the runway while landing at Rome's Fiumicino airport on Saturday, injuring three people who were rushed to hospital, authorities said.

The ATR 72 turboprop plane of the Romanian airline Carpatair arriving from Pisa finished up at an angle on grass with its landing gear damaged, emergency services and airport officials said.

One of the three people hospitalised, a Romanian flight crew member, was said to have suffered spinal injuries but his condition was not life-threatening.

Another of those hurt had pelvic injuries.

Investigators were attempting to establish the cause of the accident, with bad weather -- winds and rain may have made the landing difficult -- or pilot error suspected.

A passenger on the plane told Ansa that the plane had touched down twice. "The second time the landing gear was bent out of shape and we ended up off the runway."

He described scenes of panic and screaming.

The Rome airport remained open though one of its runways was closed.

According to Italian media, several recent incidents have shed an unfavourable light on the partnership between Alitalia and Carpatair.

The Carpatair plane involved in Saturday's accident was carrying out an Alitalia flight.

In a statement Alitalia said that "strong winds" had forced the plane off the runway and announced the suspension of all its flights operated by Carpatair from Pisa and Bologna.

Last month, a Carpatair flight between Ancona and Rome made an emergency landing soon after take-off.

Earlier in January, another of the Romanian company's planes was forced to make a U-turn following cabin pressure problems which obliged passengers to use oxygen masks.

On January 10 the company issued a statement, denying any reliability problems and denouncing a "media campaign" against it fuelled by "Italian trade unions and pilots" unhappy with Carpatair's partnership with Alitalia.

Carpatair signed the flight-sharing deal with Alitalia last September.

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Not exactly a smooth landing by the pilots but it is very fortunate that there was no catastrophic consequences. Bad weather landing is never easy and if the pilot doesn't have 100% confidence in landing it safely, then he should have done a go-around. For this case, the "second touchdown" was probably too heavy which broke the landing gear.

Week 14: ATPL Ground School Week 14

Lessons are coming in flick and fast. Surprise tests now and then to keep us on our toes. I'm still coping alright for now, soaking up all the knowledge bit by bit. Meteorology has also been started this week. It's harder to understand but it's mainly memory work I must say, just like HPL.

I also turned 28 in age on Thursday. How time flies, and I didn't expect myself to be still studying at this age, but I'm very glad that this opportunity came along. If there is a birthday wish to be made, it will be to pass all crucial exams with my fellow batch mates, on the ground as well as in the air. This time next year, we will all probably be back in Singapore after our flight training in Australia.

T-tail aircraft at Seletar

A little exercise to show that we know the geography of the earth

Finally we have our own pantry. It's a life saver when we need a break

All of us paying full attention to our dear instructor

My super fantastic birthday cake courtesy of a great batch mate and his gf.

Hundreds stranded after budget airline Scoot hit by flight delays

Budget airline Scoot has been hit by another string of flight delays.

The latest comes less than two weeks after a similar situation was triggered by technical reasons.

Hundreds of passengers have been affected and more delays are expected on Saturday.

At Changi Airport on Friday morning, a flight bound for Qingdao and Shenyang, China, was due to take off at 1.30am.

But it turned out to be a nearly 15-hour wait, before the flight left at about 4.30pm.

More than 400 affected passengers were given meal vouchers.

Scoot said the aircraft was on scheduled maintenance and could not be released on time.

More delays were triggered after another aircraft fell behind schedule due to adverse weather conditions in Tianjin, China, on Thursday.

Departure times for flights between Singapore and Bangkok and Gold Coast to Singapore on Friday have also been pushed back.

Those travelling between Singapore and Tianjin on Saturday will also face delays.

Scoot said it has notified all passengers via email on the revised flight timings.

Passengers who encounter flight delays of more than four hours - other than those triggered by the weather - will be given $50 vouchers.

Some passengers bound for Bangkok, who experienced a four-hour delay, wished they had been better informed.

"I have to rearrange the time all over again, because they changed the time to 9.40pm and now I will arrive, according to them, about 11pm. I think it will be a better choice for them to email us or give us a call," said one frustrated passenger.

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This is what happens when you have a small fleet with high utilisation. A small delay some where will have a snowballed effect for the rest of the flights after it.

Scoot airlines to increase fleet, expand routes

Scoot, the low cost long haul subsidiary of Singapore Airlines, has flown about 600,000 passengers after seven months of operation.

This means carrying about 85,000 travellers per month.

The carrier also has a passenger load factor of about 81 per cent and currently flies to eight destinations, including Tianjin, Shenyang and the Gold Coast.

Speaking at the "world's low cost airlines" conference on Thursday, CEO of Scoot Airlines Campbell Wilson was asked if the airline will be increasing its fleet and expanding its routes to cope with the ever growing demand for low cost travel in Southeast Asia.

Mr Wilson said: "We're taking a fifth aircraft this year end of May, early June, and we'll use that to add two or three more routes to the network. In terms of partnership, currently we work most closely with Tiger Airways, they have affiliates in other countries that we would look to expand our routes to. And furthermore there are airlines outside of Singapore and indeed outside of Southeast Asia that are quite interested to work with us. But its too premature to reveal who."

Scoot has introduced ScooTV, streaming inflight entertainment for passengers, and was the first to introduce iPads for rent.

Mr Wilson said it does not add to their costs at all.

"We only introduce these where there is a business benefit to us. We target to get over 20 per cent of our revenue from ancillary products of which entertainment is one. But as well as earning us money, it also helps the passenger. It's a win-win all round," he said.

Mr Wilson also commented on Boeing's Dreamliner despite the latest safety hiccups.

"The next aircraft we take this year is a 777-200 and the ones after that are 787s. Boeing is keeping us fully informed of what's happening with the 787 investigations and rectification and we are confident in their ability to resolve the issue under the purview of the regulators, and we look forward to taking the aircraft on schedule in November 2014. We have commitment for 20 Dreamliners," he said.

Several Scoot flights were recently hit by a series of passenger complaints stemming from flight delays and alleged technical faults.

Mr Wilson said: "The challenges are real. When you have a small fleet flying high utilisation. Anything whether its a weather delay, whether its a typhoon, fog in Tianjin today or storms in Gold Coast on Monday, they do affect aircraft schedules and sometimes have consequential effects. There's no avoiding that with a small fleet, but the high utilisation of aircraft is what allows us to offer low fares, so it's a bit of a quid pro quo.

"We're very clear to people what it is that we offer, we also make no secret what it is that we give in terms of compensation. The compensation is not just S$50, it can be more ranging to a full refund depending on the circumstances.

"Clearly, unit costs is unavoidable for operating an airline, unit revenue and engagement. You can't operate a business if you don't have low cost, you can't cover those cost if you don't have decent revenue and you don't have revenue if people don't like you."

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Scoot seems to be doing pretty well as compared to its principal owner SIA. One more plane in mid year to expand its fleet to a total of five before receiving its first new aircraft in late 2014. Things are going well except for some hiccups with flight delays.