Japan Airlines orders 31 Airbus A350s valued at US$9.5b

Japan Airlines said Monday it is ordering 31 Airbus A350 planes in a deal valued at $9.5 billion and which challenges Boeing's dominance in the Japanese market as it struggles with its troubled Dreamliner.

The carrier said it had signed a purchase agreement for 18 long-haul A350-900s and 13 A350-1000s, with an option to buy another 25 aircraft.

The deal marks the first time JAL has bought Airbus planes with the slate of new aircraft expected to come into service from 2019, the carrier said.

The push by the European plane maker comes as JAL and domestic rival All Nippon Airways -- whose fleet is also dominated by Boeing -- have been sideswiped by problems with the Dreamliner.

The fuel-efficient aircraft was grounded globally in January after lithium-ion batteries overheated on two different planes, with one of them catching fire while parked.

The Japanese carriers -- the single biggest operators of the Dreamliner -- have put their fleets back into service. But they are seeking compensation from US-based Boeing.

JAL shares rose 3.01 percent to 5,810 yen on Monday as the broader marker fell 1.22 percent.

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First-ever global deal struck on airline CO2 emissions

A first-ever global deal on curbing the airline industry's rising carbon emissions was agreed on Friday, the International Civil Aviation Organisation (ICAO) said, though hammering out the details could take years.

The full agreement is not scheduled to take effect until 2020 but the most contentious issues have been resolved, officials said, as the ICAO's full assembly met behind closed doors in Montreal.

The deal "is an historic milestone for air transport and for the role of multilateralism in addressing global climate challenges," ICAO Council President Roberto Kobeh Gonzalez said in a statement.

Air transport "now becomes the only major industry sector to have a multilateral global market-based mechanism agreement in place to help govern future greenhouse gas emissions," he added.

Leading up to the vote, China and India had joined the United States and Russia in balking at a European Union (EU) push for a carbon levy on flights within three years.

But at midday (1600 GMT), after some 1,400 delegates representing 170 member states voted on the executive committee's resolution, officials said the plan had been passed and details of the accord would follow.

"The good news is (in) having concluded a general agreement that includes China and India," a diplomat involved in the negotiations told AFP.

Aviation accounts for around three per cent of global CO2emissions but the ICAO forecasts that by 2050 emissions will have risen between four and six times the levels they were in 2010.

Last year, the EU suspended its CO2 Emissions Trading Scheme (ETS) for intercontinental flights, after facing a storm of criticism.

Under the EU's ill-fated arrangement, airlines flying in EU airspace were required to buy pollution credits to cover 15 per cent of their CO2 emissions for the entire flight, wherever it originated.

Several nations rejected the scheme that threatened to tip into a trade war.

The ICAO resolution "is a strong message to Europe after it lost three votes on its proposals," a negotiator said.

According to a draft text of the agreement submitted for consideration at the ICAO meeting, countries must agree by 2016 on a global market-based mechanism and reject all regional schemes, according to the negotiator.

The measure is to be accompanied by a series of technical and operational steps to reduce emissions, said a European Commission statement.

Specific proposals under consideration for curbing CO2 emissions include a carbon tax and a carbon trading system.

The EU would thus have to abandon its more ambitious ETS and adhere to the new global system for curbing greenhouse gases linked to global warming.

Even so, European Commission Vice President Siim Kallas praised Friday's outcome.

"I am very pleased that after long and hard negotiations we finally have a global deal on aviation emissions," Kallas said in a statement.

"This is good news for the traveling public, good news for the aviation industry, but most importantly it is very good news for the planet," he said.

Furthermore, he added, the deal averts a "damaging conflict among trading partners."

European Commissioner for Climate Action Connie Hedegaard meanwhile congratulated the ICAO members.

"After so many years of talks the ICAO has finally agreed to the first-ever global deal to curb aviation emissions," she said.

In addition to the mechanism for curbing emissions, the accord also calls for promoting the use of better alternative aviation fuels and fuel-saving navigation.

There is also an exemption clause that provides a "fair and equitable solution" for a number of countries facing "special circumstances or with limited capabilities," said the EU.

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ANA wins most landing slots at Haneda

The transport ministry announced Wednesday it will allocate 11 arrival and departure slots for international flights, scheduled to be added to Haneda Airport in late March, to ANA Holdings Inc. and five to Japan Airlines.

ANA Holdings, which has All Nippon Airways under its umbrella, and JAL currently have the same number of slots for international flights at the airport. But ANA and the ruling Liberal Democratic Party have urged aviation authorities to correct unfairness in the industry caused by the government's bailout of JAL, which filed for bankruptcy protection in 2010. This was apparently reflected in the ministry's decision on the slot allocation.

The Land, Infrastructure, Transport and Tourism Ministry plans to nearly double the annual number of daytime departures and arrivals of international flights at the airport to about 60,000 from the end of March. The number of slots will increase by an average of 40 a day, half of which will go to foreign airlines. The remaining 20 slots will be divided between ANA and JAL. The ministry first decided on the allocation of 16 of the 20 slots, excluding flights departing to and arriving from US destinations, due to a standstill in negotiations with the country.

ANA called on the ministry to fix the disparity between JAL and its rivals resulting from JAL's rehabilitation measures, including a nine-year exemption from corporate tax, insisting that it deserves more slots. JAL had argued that equal slot allocation is reasonable, considering that appropriate fares for customers could result from competition on certain routes.

When Haneda gained an additional 25 slot for domestic flights in late March this year, the ministry awarded eight to ANA and three to JAL, after a government expert panel looked into an operations grading system, which was used in deciding on slot allocation.

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Ryanair hit for 9m euros by French court

 Irish airline Ryanair was on Wednesday ordered to pay nearly nine million euros ($12.2 million) in damages and interest after being found guilty of breaching French labour law.

A court in southern France, which also fined the company 200,000 euros, awarded the damages after ruling that Ryanair had illegally given locally based staff Irish contracts in order to save money on payroll and other taxes.

The company was also charged with preventing workplace councils from functioning and hampering employees' access to unions.

"By refusing to submit to French legislation on social security contributions, the company set up a system of social dumping allowing it to reduce operating costs," the court said in its ruling.

Noting that social charges in France were at a rate of 40-45 percent - against only 10.75 percent in Ireland - the court said Ryanair had created "a situation of unfair competition vis-a-vis other airlines that respected national law."

Ryanair said in a statement that it would appeal the ruling, insisting it had acted "in full compliance with Irish and EU regulations."

If upheld on appeal, the damages will have to be paid to France's social security system, the state pension funds and unions representing airline workers, all of whom were plaintiffs in the action against Ryanair.

Lawyers for the plaintiffs said they were satisfied with the ruling.

"It was recognised that there was fraud," said Jean-Victor Borel, a lawyer for URSSAF, the French organisation that collects social security contributions and was awarded more than 4.5 million euros under the ruling.

The company could have faced even heavier penalties but the judge rejected a prosecution request for an additional fine equivalent to the value of four Boeing 737s that the airline had flown out of the southern French city of Marseille between 2007-11.

The case centres around a facility operated by the company at Marignane, near Marseille and Aix-en-Provence.

Ryanair based four planes and 127 employees at the site without applying French labour law or filling out tax declarations in the country.

Ryanair had argued that it did not have a permanent base in the area and that it was therefore entitled to keep its workforce on Irish contracts, in line with its interpretation of EU rules on mobile workers.

Prosecutors said this claim was not credible since the airline had established offices at the airport and its staff were living locally.

The case echoes a similar ruling for easyJet, which in 2010 was ordered to pay more than 1.4 million euros in damages to unions representing crew for hiring 170 employees under British contracts at a Paris airport.

In its statement, Ryanair said the ruling, based on a 2006 government decree, went against European Union rules.

"Ryanair believes there is a clear contradiction between current EU employment regulations... and the 2006 French decree, which seeks to require airline crews operating in Ireland to pay social taxes and pension contributions in France, despite the fact that they have already paid them in Ireland," it said.

"Ryanair intends to pursue this appeal all the way to the European Courts," it said.

The company has accused French authorities of pursuing budget airlines in a bid to protect flagship carrier Air France, which is partially owned by the state, from competition.

Separately, Ryanair said Wednesday that annual passenger numbers had risen by two percent to 80.4 million in the year to the end of September, despite issuing a profit warning last month.

The airline had warned that annual net profits would come in at the lower end of forecasts, adding it would cut winter capacity due to intense competition and falling fares in Europe.

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Singapore and Uruguay sign liberal open skies agreement

Singapore has signed an open skies agreement with Uruguay that offers both sides more leeway than conventional ones.

In a statement, the Transport Ministry said the agreement goes beyond allowing designated airlines to fly between Singapore and Uruguay, via and beyond to any third country.

It also provides for hubbing and cabotage rights for carriers of both countries.

Under hubbing rights, Singapore carriers will be allowed to base their aircraft in Uruguay and use Uruguay as a hub to operate to any other country without restrictions on capacity, frequency or aircraft type.

Uruguay carriers can do so likewise in Singapore.

The cabotage rights allow Singapore carriers to operate like a domestic carrier in Uruguay and to mount any number of services between Uruguay cities, and vice versa.

Singapore’s Parliamentary Secretary for Transport, Associate Professor Muhammad Faishal Ibrahim and Uruguay's Vice Minister for Foreign Affairs Luis Porto signed the agreement on Wednesday.

The statement said Singapore has entered into air services agreements with more than 120 countries, including over 50 open skies agreements.

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Airlines fill record number of seats as traffic soars: IATA

World airline traffic expanded by 6.8 per cent in August, enabling the industry to match an all-time record of 83.4 per cent of seats filled, the International Air Transport Association said on Wednesday.

"August was a positive month for passenger travel," IATA chief Tony Tyler said in a statement, pointing out that the overall passenger load factor, or percentage of seats filled, matched a record set in July 2011.

Passenger demand that month was up 6.8 per cent year-on-year, with strong growth across all markets, but especially in the Middle East, Latin America and Asia.

"The solid performance was also supported by a stabilisation of emerging market weakness and renewed confidence in Europe and North America," Tyler pointed out.

Traffic on international routes was up 7.5 per cent in August while demand for domestic travel was up 5.6 per cent.

Middle Eastern carriers experienced the strongest year-on-year international traffic growth of 15.1 per cent.

But this number was heavily impacted by the timing of Ramadan, when Muslims tend to travel less, IATA said, pointing out that the holiday fell in August in 2012 but in July this year.

Latin American airlines meanwhile saw international traffic grow 9.8 per cent in August, while carriers in the Asia Pacific region recorded a 8.6 per cent hike.

Modest economic improvements and rising consumer confidence also helped boost airline travel in Europe by 5.4 per cent, while North American airlines saw demand rise 5.1 per cent compared to August a year ago.

Tyler hailed the growth, stressing that "most indications (are) pointing towards an acceleration in the fourth quarter."

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A rare glimpse into the secret SIA training programme

It may seem glamorous, but being part of a cabin crew means needing to deal with many situations, often at the same time.

BENSON ANG gets a rare glimpse into the secret SIA training programme and finds that it's...not all plane sailing.

It is still thought of as one of the more glamorous professions.

But being part of Singapore Airlines' (SIA) cabin crew isn't just about looking good.

The airline recently scored higher than rivals Cathay Pacific Airways, Qantas Airlines and Emirates, in the customer satisfaction index, released earlier this month.

SIA attributes this result to its intensive cabin crew training.

Training that takes in every detail, from the arrangement and serving of meals to the handling of every type of passenger - including the smelly or aggressive ones.

Each year, around 800 trainees - all hoping to make the grade - are put through an intensive 15-week programme.

The training takes place at the SIA Training Centre at Upper Changi Road East Road.

Training includes four weeks of learning about the company, its products and processes, as well as a month of fleet training which teaches safety procedures and how to carry out duties.

Before trainees meet their first real passengers, they have three simulated flights. They have to be prepared for every situation - even how to jump out of a plane while wearing the iconic SIA kebaya.

One of the trainers, Mr Azman Osman, 42, has been flying for 21 years.

The inflight supervisor says: "On a flight, we must always be observant and respond quickly."

He adds that the key to quality lies in the details.

A well-groomed appearance and using formal language like "sir" and "ma'am" are essential.

Crew must always smile and maintain eye contact when addressing passengers.

Mr Azman also shares how to deal with difficult situations.

If someone has body odour, and if moving those around them isn't possible, the crew may use air fresheners to quell the smell. "

Some passengers drink too much.

If they are just merry and not a threat to others, the crew don't cut him off but do delay serving him any more drinks - either by starting a conversation or offering some coffee.

Should arguments happen, Mr Azman advises: "Don't take sides. We just want to make sure others are not affected.

"In general, passengers should feel confident in calling on us for help at any time."

Indeed, the image of the warm, attentive Singapore Girl has attracted trainees like Miss Nurhazwanni Taufik, 20, to pursue this as a career.

Says the polytechnic graduate: "It's my dream. A Singapore Girl is poised, elegant, confident - she can handle anything.

"I've realised the job is not all glamour. We spend a lot of time learning safety procedures and practising first aid.

"But then, while up in the air, passengers only have us to depend on."

'You don't want to sound like a robot'

I will never call cabin crew "trolley dollies" again - not after my brief but intense session with SIA trainees.

They are far more than glamorised wait staff. Why I thought I could just pose my way through those few hours of training on Wednesday, I'll never know.

You have to be "on" at all times.

Without any prior lessons, I had to learn on the spot. And I learnt fast.

While greeting the "passengers" on SIA's simulator - as good as a real flight but without the turbulence - I realised it isn't easy to keep smiling for any length of time.

And there's also more to the seemingly simple task of distributing newspapers than asking: "Newspaper for you?"

"Vary your sentences," Mr Azman, my assessor, told me. "You don't want to sound like a robot."

Repetition, at least for the same row, is out. Yet trying to think of five different versions of the same question temporarily threw me.

Every passenger gets a different line but with the same friendly smile. Likewise with towels and headsets.

Safety belts fastened, seats upright, and tray-tables and window shades up.

As the plane "took off", I had to make sure nothing was blocking the aisles, not least myself.

In the air, it's all about multi-tasking. It's like a memory game, but one where a passenger's comfort is at stake.

As I struggled to remember a drink order, the "captain" made an announcement.

If passengers ask, cabin crew have to be able to repeat the exact message. Amazingly, even with drink orders swirling in my head, I absorbed the captain's words.

And if you think that serving meals is just the cliche of asking "chicken or fish", think again.

Everything has to be exact.

Airline insignia - be it on cups or the creamer - should be upright and facing the passenger. Details make the difference.

Then there's the really scary part - pouring hot tea and coffee.

Try doing it with someone sitting just beside you. One wrong move and a potential lawsuit awaits.

As I focused intently on getting the cup to the passenger without spilling, my assessor told me to maintain eye contact.

My eyes flashed from the cup to the passenger sat before me, a knowing smirk on her face in reply to my worried grimace.

"Please enjoy, ma'am," I said, hands trembling as the cup finally touched down.

Thankfully, the plane soon "touched down" as well.

I left slightly dizzy after taking in so much, but left with a newfound respect for anyone who serves us in the skies.

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