Malaysia Airlines, AirAsia fined over tie-up

Malaysian authorities on Friday fined Malaysia Airlines and AirAsia for anti-competitive conduct during a short-lived tie-up.

The Malaysia Competition Commission (MyCC) said in a statement that the country's two dominant carriers would each have to pay a 10 million ringgit ($3 million) penalty for collaborating to integrate some routes in which they had earlier competed.

"When businesses agree to share markets, they are agreeing to stop competing, at the expense of the consumers," said commission chairman Siti Norma Yaakob.

AirAsia, the region's largest budget airline, agreed in August 2011 to hand over a 10 per cent holding to a state investment fund in exchange for a 20.5 per cent stake in the ailing flag-carrier Malaysia Airlines.

The deal was aimed in part at eliminating mutually harmful competition on some routes.

But it was unwound just eight months later following pressure from Malaysia Airlines' powerful employees union, which feared it could result in possible job losses and other cost-cutting at the national carrier.

Both airlines recorded profits in the second half of 2012. Malaysia Airlines, however, has been in the red this year while AirAsia has seen sharply lower profits.

MyCC said the penalties were decided based on revenue earned between January to April 2012 on four routes and that it equalled less than 10 per cent of their respective worldwide turnovers.

Both parties have 30 days to respond to the decision.

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Boeing expects China's fleet to triple by 2032

US aviation giant Boeing said on Thursday it expects China's commercial aircraft fleet to triple in size over the next two decades as the country's strong economic growth boosts air traffic.

China will need 5,580 new airplanes worth US$780 billion by 2032, 16 per cent of the world total, the Seattle-based company said at a briefing in Beijing.

The figures mark an increase from the company's forecast last year, when it said China would add 5,260 new airplanes to its fleet by 2031.

"Thanks to strong economic growth and increased access to air travel, we project China traffic to grow at nearly seven per cent each year," said Randy Tinseth, vice president of marketing for Boeing's commercial airplane division.

The company expects worldwide traffic growth to average 5.0 per cent a year over the period.

China's air travel is booming. A total of 319 million air passenger trips were recorded in the country in 2012, up 8.9 per cent from the previous year, official figures show.

The Boeing statement projected that China will have a total of 6,450 commercial aircraft by 2032, up from 2,100 last year.

Tourism within China and intra-Asia travel will help spur strong demand for single-aisle airplanes, with total deliveries in that segment reaching 3,900 through 2032, it said.

Long-haul international traffic to and from China is predicted to grow 7.2 per cent annually, leading to a demand for an additional 1,440 new fuel-efficient wide-bodied jets, it added.

"To compete in the long-haul international market, our Chinese customers are focused on growing their international networks, increasing their capacity and building resources," said Tinseth.

"These trends will shape market demand for airplanes that have high efficiency, low operating costs, environmentally progressive technologies and a great passenger experience."

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Delta Air Lines orders 40 Airbus jets

Delta Air Lines announced on Wednesday an order for 40 aircraft from European aircraft maker Airbus, including 10 wide-body A330-300s and 30 narrow-body A321s.

Delta said the new aircraft, to be delivered over the 2015-2017 period, are part of an effort to renew the US airline's fleet with a focus on enhancing profitability and keeping a close rein on capacity.

"This Airbus agreement is another opportunistic fleet transaction for Delta in which we acquire economically efficient, proven-technology aircraft," Richard Anderson, Delta's chief executive, said in a statement.

"These A330s and A321s will provide tremendous flexibility for Delta to optimally manage our capacity over the next five years while further improving the flight experience for our customers and returns for our shareholders."

The value of the deal at official catalog prices is around $5.6 billion.

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EU ready to compromise over airline carbon tax: EU source

The EU is ready to compromise over its tax on airline carbon emissions if opponents, led by the United States and China, apply a similar levy by 2016, a European source said on Wednesday.

The source said Brussels will put the plan to the International Civil Aviation Organisation (ICAO) later this month in the hope of getting a deal to tackle the carbon dioxide emissions many blame for global warming.

Late last year, after running into a storm of criticism, the EU suspended its CO2 Emissions Trading Scheme (ETS) for intercontinental flights for 2013, saying it wanted to give all sides more time to reach a global accord.

Under the ETS, 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.

In a document seen by AFP, Brussels now proposes that the tax apply only to the part of the flight within EU airspace.

In return, however, the EU wants its partners to introduce their own CO2 levy, said a source who spoke on condition of anonymity and who added that Washington was ready to accept this formula.

"It is necessary that in exchange, the other regions formally commit at the next ICAO meeting to introduce a tax similar to the European levy by 2016," the source said.

"The aim is to agree a system to reduce CO2 emissions in the aviation industry by 2020," the source added.

The EU unilaterally introduced its CO2 tax in January 2012 but 26 of the ICAO's 36 members opposed the move, saying the levy violated international law.

The ICAO meets in Montreal from September 24.

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Changi Coast Road to be replaced

Changi Coast Road, a long scenic route much loved by cyclists, will be replaced by a new surface road that will hug the eastern coastline.

The existing road and park connector beside it will be paved over and become part of Changi Airport's integrated airfield that links Runway 2 and Runway 3.

Currently, it runs alongside the airfield for about 6km.

A new park connector will also be built along with the new road, which will merge with Tanah Merah Coast Road, run along the eastern coastline and then loop back towards Nicoll Drive.

Works on these changes are expected to start in the second half of next year, said the Land Transport Authority's (LTA) deputy chief executive Chua Chong Kheng on Friday.

Mr Chua did not say when the new road will be ready but The Straits Times understands it has to be completed by 2018.

Only then can the airport's Runway 3 be linked to Runway 2, a project observers say would take about two years.

Changi Airport is scheduled to have a three-runway system by around 2020, a move that will reinforce Singapore's status as a regional aviation hub.

Meanwhile, the existing Changi Coast Road will stay open until the new road is ready.

This new road is estimated to run for 5km to 6km longer than the stretch of Changi Coast Road that it will replace.

It is likely to give motorists access to the future Terminal 5.

Mr Chua said it will be wider than the existing road, which has two lanes in each direction.

The LTA earlier considered converting Changi Coast Road into a partially depressed roadway or tunnel, but found that to be less feasible than a new surface road.

Mr Chua noted that aside from the higher cost of going underground, roads below the surface would require ventilation buildings.

These ventilation structures could go up to 40m in height, and would not only take up space but also affect safety.

There are also other safety and security issues to consider if the road runs beneath the airfield, he added. "If there are emergencies in the tunnel, you don't want to be evacuating onto the airfield."

Avid cyclist Jolly Liew, 47, is glad there will be a "replacement road, so our 'playground' will still be there".

Another cyclist, Mr Sidney Lim, 49, wants the authorities to make the new road safer for cyclists.

"If it's a longer route, that's even better. Cyclists here are always looking for a longer loop.

Maybe the LTA can consider setting aside a lane for cyclists at certain times on weekends," he said.

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Singapore Girl more crucial now as icon of quality: SIA

She may be taking a back seat in the latest marketing campaign, but top brass at Singapore Airlines say the SIA Girl is far from over the hill.

They told The Straits Times her role has become more critical as the carrier increasingly relies on top-quality service to distinguish itself from its competitors.

"The essence of the Singapore Girl and her gentle, caring ways remain especially relevant today," said SIA executive vice- president (commercial) Mak Swee Wah. "In this ever-changing world, it is even more important for service excellence to be the key differentiator."

This contrasts with days gone by, when SIA led the pack with superior hardware, new planes, flat beds and the latest in-flight movies. Now, these are offered by all top-tier carriers, including Emirates and Cathay Pacific.

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Growing interest in aviation industry in schools

At Hillgrove Secondary School, aerospace is not just a specialty for a few - every student has a chance to experience what the sector has to offer, be it through instructional programmes, co-curricular activities (CCAs), or learning journeys to aviation centres and training centres to experience the industry first-hand.

And the school - which received special mention by Prime Minister Lee Hsien Loong at the National Day Rally last month for developing aerospace as its niche - has seen its efforts take off.

Since 2007, 43 graduates have gone on to pursue aviation courses at Singapore Polytechnic (SP), Ngee Ann Polytechnic, Republic Polytechnic and the Institutes of Technical Education (ITEs).

Nine went on to take the Basic Flying Course and obtained their Private Pilot Licence with the Singapore Youth Flying Club, while one, Mr Aditya Sharma, is now an RSAF Apache helicopter pilot.

The school's endeavour is part of the wave of growing interest in the aerospace and aviation industry. In July this year, a new scheme to support the setting up of key laboratories by industries in local universities was launched by the National Research Foundation.

The programme is set up by aerospace company Rolls-Royce and Nanyang Technological University, and will focus on three core research areas: Electrical power and control systems, manufacturing and repair technologies, and computational engineering.

Polytechnics, ITEs, universities and industry partners said they have generally seen an increase in applicants for places in aviation and aerospace courses. Out of 10 organisations contacted, seven said intakes have increased. For example, Temasek Polytechnic, which offers a Diploma in Aerospace Engineering, has seen its intake more than double since it rolled out the programme in 2009.

Northbrooks Secondary School, which has also developed aerospace as a niche, has weaved the industry into its curriculum for all Secondary One, Two and Three Express and Normal (Academic) students.

At the Sec 1 level, students acquire basic knowledge in general aerospace topics, such as the discovery of flight and early flight machines, basic aerodynamics of flight and flight control surfaces, as part of the semester's interdisciplinary project work. The school also has Youth Flying Club as a CCA to cater to students with interest and talent in the area.

At Hillgrove, the theories and principles of flight, aero-modelling and kite-making and flying are part of Design and Technology lessons, which is customised and funded by the Civil Aviation Authority of Singapore (CAAS) Aviation Youth Outreach Seed Fund. Sec 2 students learn about flight and aerospace in Science, Mathematics and Social Studies through project work.

The school is currently collaborating with SP and the Education Ministry's Educational Technological Division to further develop flight and aerospace lessons and resources. At the lower secondary level, students will be introduced to elementary science and maths concepts such as speed and area, so they can construct and fly airplane models.

Upper secondary students will learn how to apply physics and mathematical concepts to construct simulations in rocket science. For example, Sec 3 students will apply aero-engineering concepts such as vectors and acceleration to construct computer simulations in the different phases of a rocket's flight.

The school has also offered Youth Flying Club as a CCA since 2001, and the club now has 60 members who get to learn how to fly an aeroplane through a flight simulation programme.

Sec 3 student Iqbal Rosli, 15, a member of the club, said he hopes to be a pilot in future. He participated in the Singapore Amazing Flying Machine Competition this year with two other team-mates, and clinched Silver in the Theory of Flight category.

"We learnt a lot in YFC (Youth Flying Club), like the different parts of a plane and how to fly a remote-controlled aeroplane. I learnt a lot and it helps me (in my path) to be a pilot in future," he said.

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