Qantas, Virgin row turns ugly

Virgin Australia chief John Borghetti on Wednesday lashed out at "offensive" allegations made by Qantas in an escalating row over foreign ownership, with reports that lawyers had been called in.

It follows Qantas chief Alan Joyce this week blasting what he called a "virtual takeover" of Virgin Australia by foreign airlines, claiming they were working to destabilise the national carrier.

On Tuesday, Qantas launched an online campaign against a capital raising by Virgin that could leave 72 percent of the carrier in the hands of Singapore Airlines, Air New Zealand and Abu Dhabi-based Etihad.

Joyce, who was in Canberra Wednesday to lobby politicians, said it would result in an "unfair playing field".

He claimed the foreign backing allowed Virgin to run at a loss by setting uncompetitively low prices to win customers from Qantas, an allegation Borghetti denied.

"To say that Virgin Australia is driven by a strategy of uncompetitively low prices and irrational behaviour is offensive and absurd," he told the company's annual general meeting in Brisbane.

"The airline is run rationally with good management and a view to creating a long-term sustainable and profitable business."

He added: "We have embraced change and competition and adapted our business to it."

Borghetti is so furious that he is seeking legal advice on whether there are grounds to sue Joyce for defamation, Fairfax Media reported, although the airline could not immediately confirm this.

Singapore Airlines, Air New Zealand and Etihad already own 63 percent of Qantas' main domestic rival.

Joyce wrote to Prime Minister Tony Abbott and all state governments this week demanding they "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.

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Brussels Airlines' pilots suspend 2-day strike

Brussels Airlines' pilots on Tuesday suspended a two-day strike that grounded scores of flights in and out of the Belgian capital after reaching an agreement in principle with the carrier.

Traffic was to resume gradually after the cancellation of 100 flights on Monday, or over half the traffic, and of 71 flights on Tuesday, mostly across Europe but also connections with New York and Nairobi.

"We will negotiate with management until Friday, meaning the strike is suspended and not stopped," warned trade unionist Jean-Marc Lepied.

The agreement in principle reached in conciliation talks calls on management to "re-employ should they agree" pilots aged over 58 that management was pressing to retire in order to employ younger pilots in order to cut back on spending.

The airline is 45 per cent owned by Lufthansa and last year agreed a 100-million-euro (US$135 million) raft of savings with the unions.

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British Airways celebrates 80 years of flying to Singapore with special offers

It has been eight decades since British Airways made its inaugural flight to Singapore, on Dec 9, 1933.

To celebrate this milestone, the carrier is offering its Singapore customers special fares to over 30 destinations in the world.

Fares to London start from $1,280, Paris from $1,247, Sydney from $680 and New York from $1,780.

The sale ends on Nov 28 for the travel period between Nov 18 and June 30, 2014, subject to terms and conditions.

British Airways will also host a reception and fashion show of cabin crew uniform over the years at the home of the British High Commissioner, Eden Hall.

Singapore has historically been an integral part of British Airways' network, linking the UK with both Australia and the rest of Southeast Asia.

In 1933, the inaugural flight to Singapore on what was then Imperial Airways departed from Croydon, London, and travelled via Paris, Brindisi, Alexandria, Cairo and Karachi.

That same journey originally took 10 days.

A one-way fare to Singapore then cost £180 (S$361 now) which was just below the average yearly salary at the time.

Robert Williams, British Airways regional general manager, South East Asia, said: "Serving this region for 80 years is a fantastic milestone for British Airways. We have come a long way since our first flight to Singapore in 1933 - offering our customers more destinations, state-of-the-art cabins and aircraft, and the very best in comfort and luxury. Yet, what hasn't changed is that we continue to seek inspiration from our original, historic ethos, 'To Fly. To Serve.' which is about putting the customer at the heart of everything we do.

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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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Easyjet announces soaring profits

British no-frills airline Easyjet on Tuesday announced a leap in annual profits as increased demand for its flights across Europe offset higher costs.

Net profit surged 56 percent to 398 million pounds (US$641 million, 474 million euros) in the year to September 30 compared with the group's performance in 2011/12, Easyjet said in an earnings statement.

It added that 308 million pounds would be returned to shareholders via dividend payments.

Pre-tax profit jumped 50.9 percent to 478 million pounds, in line with the airline's own raised forecast given last month.

Revenue rose 10.5 percent to 4.258 billion pounds in the reporting period. Costs excluding jet fuel grew to 2.598 billion pounds, while fuel charges climbed to 1.182 billion pounds.

"As evidence of our continued confidence in the future prospects of the business, the board has recommended to return 308 million pounds to shareholders through the combination of an ordinary and special dividend," Easyjet chief executive Carolyn McCall said in the statement.

"We will continue to deliver our strategy of offering our customers low fares to great destinations with friendly service so that we can continue to win in a more competitive market. This means we are well placed to continue to deliver sustainable returns and growth for our shareholders," she added.

Easyjet had said in October that annual profits would be at the upper end of expectations, and cited keen demand for flights during July and August.

The carrier had revised higher its pre-tax profits forecast to between 470 million pounds and 480 million pounds. That compared with its prior July guidance of between 450 million pounds and 480 million pounds.

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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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Passenger jet crashes in Russia, killing 50

A Boeing 737 operated by a Russian airline crashed on Sunday while attempting to land in the city of Kazan, killing all 50 on board, Russia's emergency situations ministry said.

"According to preliminary information, all the people on board the flight, 44 passengers and six crew members, were killed," a ministry spokeswoman told AFP.

"The Boeing 737 that flew out of Moscow's Domodedovo airport with 44 passengers crashed onto the runway at Kazan airport on landing and burst into flames," Russia's Investigative Committee, which probes serious incidents, said in a statement.

The emergency situations ministry posted photographs of fragments of the plane scattered across the runway of the airport in Kazan, which is around 720 kilometres (450 miles) east of Moscow.

The plane, owned by Tatarstan Airlines, was making a second attempt to land, the spokesman for Russia's civil aviation authority, Sergei Izvolsky, told the Interfax news agency.

"We know for sure that when the plane tried to make a second landing, for some reason, the plane hit the surface of the runway near the air traffic control tower, as a result of which the plane crashed and burnt."

The plane's black boxes have not yet been found, Izvolsky said.

Russian President Vladimir Putin expressed his "deep condolences to the relatives and loved ones of those who died in the plane crash at Kazan airport," the Kremlin said in a statement.

"After receiving a report on the air crash, the head of state ordered the government to urgently form a commission to investigate the reasons and circumstances of what happened."

The emergency ministry published a list of the names of 44 victims, while saying that six were still being identified. The airline named the chief pilot as 47-year-old Rustem Salikhov.

Among the dead was the 24-year-old son of the leader of the Tatarstan region where Kazan is located, Irek Minnikhanov, the RIA Novosti news agency reported, citing the region's deputy prime minister.

The airline named an 11-year-old girl, Darya Artashina, as among those on the flight.

The head of the region's FSB security service, General-Lieutenant Alexander Antonov, also died in the crash, a member of the disaster management team told RIA Novosti.

The Investigative Committee said an inquiry had been opened to determine whether there had been any "violation of aviation security rules" and added that several inspectors had been sent to the scene of the crash.

"Investigators are looking at different versions of what happened including a technical problem, pilot error and unfavourable weather conditions," it said.

"According to preliminary information all 50 bodies of the victims were found at the scene of the crash," said an official at the local emergency medical centre.

The plane, which had been flying since 1990, had last year made an emergency landing at the same airport, Russian television reported.

Its owner, the Tatarstan Airlines, in a brief statement on its website said that "the circumstances are being clarified."

The airline, founded in 2000, has a fleet of eight planes, including two Boeing-737s.

The Life News website reported that the plane had originally been flown by Air France before being operated by airlines in Uganda, Brazil, Romania and Bulgaria.

Tatarstan Airlines bought the plane in 2008, Life News reported.

Air safety in Russia is a major issue for the authorities following a severe deterioration in the quality of domestic services after the collapse of the Soviet Union.

Officials blame most problems on pilot inexperience as well as poor maintenance by the small and poorly regulated airlines that have sprung up across Russia in the past two decades.

Kazan is the capital city of the Russian republic of Tatarstan, which has a large Muslim population and is seen as an example of peaceful integration of different ethnic groups.

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