Air India takes possession of its first Dreamliner

New Delhi: State-run carrier Air India on Friday took possession of its first Boeing 787 Dreamliner in the US.

The 256-seater aircraft will touch down at Terminal 3 of Delhi’s IGI airport tomorrow. This is the first of the 27 Dreamliner aircraft ordered by Air India. Ten facts about the Dreamliner

The aircraft has 18 full-flat business class seats with flat-bed recline, and 238 economy class seats.

The carrier will take delivery of two more Dreamliners in the next few weeks.

However, the fate of the delay compensation agreement, which was cleared by the Union Cabinet in August and is being fine-tuned by the Law Ministry, is still not clear, sources have informed NDTV Profit.

The agreement, to be signed between the airline and Boeing, is to finalize the compensation to be given by the US aircraft major for almost four-year delay in deliveries.

The first batch was supposed to be delivered in September 2008 but design and production issues at Boeing delayed deliveries.

With these new aircraft, Air India, which intends to get 14 of them by March next year, would launch flights on several long-haul international sectors, including new services to Australia, later this year. For the next few weeks, the Dreamliner would be operated on the domestic sectors, including Delhi-Mumbai, to enable the pilots and crew get accustomed to its landings and take-offs.

Air India was the second carrier globally to have placed orders for this aircraft, but delay in clearing of the agreement further delayed the plane's deliveries to Air India.

Airlines that have inducted and are already operating this aircraft are Japan's All Nippon Airways, Japan Airlines and Ethiopian Airways.

The plane is made of carbon composite material, which makes it light-weight and therefore is considered less fuel guzzler. Boeing claims the plane consumes 20 per cent less fuel compared with the similar-sized B-767s and better fuel efficiency implies lower flying costs.

According to Boeing, as many as 47 airlines across the world have ordered nearly 900 Dreamliners.

The long-range, twin-engine aircraft has four variants, with the longest-range variant capable of flying over 15,000 kms non-st

Lufthansa flight attendants strike at 3 airports

BERLIN (AP) — Lufthansa flight attendants walked off the job at three major German airports Tuesday, stranding thousands of passengers in an escalating labor battle that comes as the nation's largest airline struggles to stave off threats from budget carriers and government-owned Gulf airlines.

The walkouts at Frankfurt, Berlin and Munich airports followed the Friday launch of the flight attendant union's strike campaign, called after it declared 13-months of talks failed. Late Tuesday, the UFO union threatened a nationwide 24-hour strike starting Friday.
But the airline didn't show any signs of budging, despite already losing millions through the strike. It issued a statement criticizing UFO of waging the labor dispute "at the expense of its customers," noting the union's strategy so far of only announcing strikes a few hours ahead of time makes it impossible for people to make alternate plans.
Lufthansa is trying to implement an ambitious cost-cutting program amid tough competition from European budget carriers and from aggressively expanding government-owned Gulf airlines. Their rise has hurt traditional big airlines such as Lufthansa, Air France and British Airways.
UFO is seeking a 5 percent pay raise for the airline's more than 18,000 cabin crew workers after they did without increases in recent years. Lufthansa has said it is offering a 3.5 percent raise, and is calling for a slight increase in working hours.
The union objects to what it says would be only gradual increases and lower wages for new employees.
The airline and the union also have been at odds over issues such as the possibility of Lufthansa transferring flight attendants to its partner budget airlines with cheaper contracts as part of a cost-saving program, though the walkouts are focused squarely on the pay issue.
"I have the impression both parties want to take it out on the back of the passengers to show their power, and it's a shame, because it is not our fault if employer and employees cannot agree," Olaf Terbeznik, a 38-year-old IT project manager from Berlin, said amid the strike at the capital's Tegel airport.
Lufthansa scrapped around 350 flights Tuesday because of the eight-hour strikes at Tegel and Frankfurt Airports, and an 11-hour strike in Munich.
Most of the cancelled services were on short- and medium-haul routes but about a third of intercontinental flights — including services to and from Los Angeles, Houston, Chicago, Beijing and Mexico City — were also axed.
Juergen Pieper, an analyst with Bankhaus Metzler, estimated the airline is losing around €3 million to €5 million ($3.77 million to $6.29 million) per day on the strike.
"It is not yet a big deal, but it would be a different matter if it went on for days with the entire business shut down," Pieper said, estimating a complete grounding would cost Lufthansa €10 million per day. "Then there would certainly be an effect on quarterly earnings."
The airline blamed high fuel costs and new taxes on air travel in Germany and Austria for a 24 percent decline in second-quarter earnings compared with a year earlier to €229 million ($288 million). Lufthansa announced in May that it will shed 3,500 office jobs over the coming years to cut costs and boost lagging profits.
The cuts are part of a cost-reduction program that started at the beginning of the year and aims to improve the company's operating profit by €1.5 billion compared to 2011 by the end of 2014.
"They have strong finances and a good brand, but the current management is ambitious to achieve more favorable costs and become more profitable," Pieper said. "If they want to be profitable, they have to lower costs."
Both UFO, one of several single-profession unions in Germany that tend to be more militant than the country's traditional large umbrella unions and have caused disruption over recent years, and the airline appear in uncompromising mood.
The chairman of Lufthansa's board of directors, Juergen Weber, was quoted last month as telling the weekly Die Zeit: "It is better to let it come to a big bang before the company catapults itself out of competition."
Lufthansa spokesman Klaus Walther said that "it is time for basic pay to be improved, but we must also (adapt) to changed conditions."

Things have changed over the past five to 10 years, Walther told ZDF television. "The competition situation is completely different and the economic situation is completely different too."

Airlines such as Lufthansa generate a good share of their business by carrying partner airlines' passengers to onward destinations. However, three big government-owned Gulf carriers — Emirates, Qatar Airways and Etihad Airways — have all expanded aggressively, particularly in Europe, to eat in other airlines' long-haul traffic. So rather than transferring in Germany with Lufthansa, passengers from North America or Europe heading to Asia, Africa and Australia are increasingly transiting through the Gulf's gleaming airports.
The Gulf's fast-growing fleets are filled with some of the industry's newest planes, and usually boast generous in-flight meals and entertainment. Dubai-based Emirates has grown into the world's largest carrier if measured in terms of international passenger traffic. It last fiscal year pulled in $629 million in profit despite a big jump in fuel costs.
Abu Dhabi-based Etihad, which only started operations in 2003, posted its first annual profit of $14 million last year. Qatar Airways doesn't disclose its finances.
All three carriers insist they operate on purely commercial terms and do not receive perks such as discounted jet fuel. None of them has a unionized work force, however, so they do not have to contend with strikes.
Etihad late last year when it bought nearly 30 percent of Germany's second-biggest carrier, Air Berlin PLC. It has since amassed stakes in three additional carriers and partnered with others elsewhere.
___
Dorothee Thiesing and David Rising in Berlin and Business Writers Adam Schreck in Dubai, United Arab Emirates and David McHugh in Frankfurt contributed to this report.

Airbus Says Chinese-Built Planes To Be Sold Only In China

PARIS, (AFP) – Airbus planes built in a Chinese factory will  be sold only to Chinese clients, the European plane maker said Monday, although  a leasing exception could see aircraft end up with foreign airlines.

Airbus sought to clarify its China operations after the Chinese press described a deal with a leasing firm as evidence the Airbus factory in Tianjin  was shipping its planes overseas.

"Chinese purchases will fuel the factory in Tianjin, but when a Chinese airline-leasing firm has operating clients elsewhere in the world, it can deliver to those customers," an Airbus spokesman said, adding that such purchases would be "marginal."

Under the terms of a 2005 agreement on the creation of a Chinese assembly line, Chinese-built planes are supposed to be sold exclusively into a domestic  market.

Airbus agreed to the leasing exemption before signing a tentative agreement  last week with its Chinese partner, Aviation Industry Corporation of China,  that would extend the life of the Tianjin line by at least 10 years to 2026 and assemble the newer A320neo model.

Airbus chief Fabrice Bregier told French financial newspaper Les Echoes that the leasing firm ICBC would soon provide an A320 to Malaysian low-cost  carrier AirAsia.

On August 30, China signed a $3.5 billion deal to buy 50 A320 Airbus jets.

Airbus planes are built in Toulouse in France, Hamburg in Germany, and  Tianjin, with parts made in France, Germany, Spain and Britain.

Airbus announced in July it would open its second aircraft assembly plant  outside of Europe in the US state of Alabama.

American to implement new pilots contract

American Airlines received approval from the bankruptcy court to reject its pilots contract and implement a new term sheet today.
US Bankruptcy Court for the Southern District of New York judge Sean Lane approved the Fort Worth-based carrier's revised section 1113 motion to void its pilots contract despite concerns raised by the Allied Pilots Association (APA), which represents the employees, following a hearing in New York.
"Judge Lane's ruling is very important because it will allow us to implement the changes that are necessary for our successful restructuring," says American.
The airline filed the revised term sheet on 17 August following judge Lane's rejection of its original request citing concerns over the proposed codeshare and furlough language on 15 August.
Under the new term sheet, American can enter into unlimited domestic codeshares with Alaska Airlines, Hawaiian Airlines and other carriers with a few exceptions. Routes between Hawaii and Chicago O'Hare, Dallas-Fort Worth, Los Angeles and San Diego would be excluded from a partnership with Alaska, and the Hawaiian agreement would only cover intra-island flights.
New domestic codeshare agreements also cannot exceed more than 50% of American's domestic available seat miles during any 12-month period.
Furlough language from the now rejected contract was kept in the new term sheet. American can furlough up to 2,000 pilots and has a force majeure clause allowing for additional furloughs in the case of unexpected events.
American says that it will share implementation plans with the APA during the next few days.
The APA did not comment by press time.
The union approved a strike vote, which will begin when the new term sheet is implemented, on 22 August.

Precision Conversions now turning 757s with winglets into freighters

Precision Conversions has received US FAA approval to perform 15 cargo modifications for Boeing 757-200s with winglets, marking the first time it has been allowed to carry out the work on winglet-equipped 757s.
The Portland-based conversion specialist has completed the first 757 modification for owner Cargo Aircraft Management, a subsidiary of Air Transport Services Group. Air Transport International will operate the aircraft later this year. Precision Conversions says that it has a commitment for one further aircraft modification with CAM.
Precision Conversions began the engineering and certification process for the winglet approval at the end of 2010, says vice-president of marketing and sales Brian McCarthy. The process included gathering substantial data to analyse how a cargo conversion would affect a winglet, and involved windtunnel modelling and other tests.

Precision Conversions

"It took an enormous amount of knowledge and a very contemporary data set to demonstrate this compatibility," says McCarthy.
The conversion of winglet-bearing 757-200s into freighters does not require any modifications to the aircraft beyond fitting standard cargo capabilities.
But McCarthy characterises the FAA approval as an amendment that will allow for more than 300 757s with winglets to be turned into freighters, which would not have been otherwise possible.
"We do think that there will be an abundance of these airplanes over the next few years," says McCarthy, noting that the 757 market will start to reach an attractive price point for cargo carriers once legacy operators such as United Airlines and American Airlines begin to withdraw more of their passenger 757s.
"These big legacy carriers are releasing airplanes at what we think is an optimum time for freighter consideration," says McCarthy.
Precision Conversions has applied for FAA certification for 757-200 combi conversions, which it expects to receive in December.

FAA grants Gulfstream G650 a type-certificate

The Federal Aviation Administration, on 7 September, granted Gulfstream's G650 business-jet a type certificate, clearing the way for the company to deliver the first aircraft before year-end.

"The G650 is a superlative aircraft with the most technologically advanced flight deck in business aviation and the largest, most comfortable cabin in its class," Gulfstream president Larry Flynn claims.

©Gulfstream

The new aircraft is fitted with a full three-axis, fly-by-wire system and an advanced flight deck with four 14-inch displays and a head-up display. It has both enhanced and synthetic vision as standard features.
The G650 has a cabin measuring 102 inches wide and 77 inches high with a cabin altitude of 4,850 feet at 51,000ft and 3,300 feet at 41,000ft.
The company has accumulated a back-log of 200 orders for the new machine.

ARINC upgrades pilot iPad app and connectivity

ARINC Direct has announced it is adding more real-time functionality to its existing iPad "paperless cockpit" system aimed at business aircraft pilots.

ARINC claims the system is more flexible than when it launched its iPad app a year ago at the Las Vegas National Business Aircraft Association convention.

Through the company's work with Inmarsat as joint distributor of its SwiftBroadband (SBB) service, ARINC Direct director James Hardie says that SBB-enabled in-flight connectivity, combined with the functionality of its iPad app, can provide crews with "a completely dynamic aviation information platform that surpasses traditional means of obtaining flight data".

Hardie says the iPad app/SBB combination will soon enable pilots to flight plan within the system, to perform last-minute weight and balance calculations, and to get a real-time ground weather radar overlay for the route.

ARINC has also incorporated a system to enable pilots to report problems down the route so other crews who use the app can be warned - a kind of self-generated Notam (notices to airmen) system.
Hardie adds that the iPad continues to reduce the amount of paper information pilots need to lug around. "ARINC Direct has a number of customers working on getting approval to go paperless by virtue of using this app," he claims.

If ARINC also provides the operator's flight-management service, the app/SBB combination should provide services as diverse as on-screen GPS positioning and real-time hotel booking confirmation, says Hardie.

Meanwhile in the cabin, ARINC Direct says it can field a combination of SBB and its Cabin Hotspot service to provide total connectivity for passengers' electronic devices. Hardie says this is proving popular because the system allows direct credit-card billing for customers.

Qantas and Emirates enter wide-ranging partnership

Qantas Airways and Emirates have entered an extensive partnership to collaborate on routes and frequent flyer benefits, shifting the Australian carrier's hub for European flights to Dubai from Singapore.
The partnership will commence in April 2013 and run for 10 years, Qantas said in a statement.
While the alliance marks a major strategic shift for both carriers, rumours of the alliance have circulated for two weeks.
"The 10-year partnership will go beyond codesharing and includes integrated network collaboration with coordinated pricing, sales and scheduling as well as a benefit-sharing model," said Qantas.
The deal stops short, however, of the pair taking equity stakes in each other. It will also see Qantas terminate its joint business with International Airlines Group, parent of British Airways and Iberia.

© H. Gousse/Airbus 

 

Qantas will launch daily A380 services from Sydney and Melbourne to London through Dubai. Combined, the two will operate 98 weekly services between Australia and Dubai. Qantas will be the only carrier other than Emirates to operate from Dubai International Airport's Terminal 3.
Qantas passengers transiting through Dubai will gain access to Emirates' destinations in Europe and Africa; Emirates passengers will gain access to Qantas's domestic network in Australia.
The carriers' frequent flyer programmes will be aligned, with passengers having access to lounges, priority check-in, priority boarding and other services offered by both airlines.
This is the most significant partnership the Qantas Group has ever formed with another airline, moving past the traditional alliance model to a new level," said Qantas Group chief executive Alan Joyce. "It will deliver benefits to all parts of the Group."
"We currently have an Asian flying schedule based on travelling via Asia to Europe," Joyce said. "But our Australian business customers want better access to Asia, and we have been looking to address this for some time."
"With European services transiting through Dubai, Qantas's Asian services will no longer be a subsidiary of the 'Kangaroo Route'," he added. "Instead they will be dedicated to connecting Australians with our region, and Asian visitors to Australia."

Boeing upholds 777X end-decade service entry

A senior Boeing executive is resisting a recent wave of pressure to speed up a launch decision and service entry for the proposed 777X, which the airframer believes will "obsolete" the Airbus A350-1000 due for first delivery in 2017.
Several airlines, including Emirates and Qatar Airways, have expressed interest in the 777X, which will stretch the fuselages of the existing 777-200ER and 300ER. The new aircraft will also have new engines and composite wings, changes that will involve a lot more work to the aircraft compared to the 787-10X that Boeing is also studying, says its vice-president of business development and strategic integration Nicole Piasecki in an interview with Flightglobal.
Both Emirates and Qatar Airways have been vocal about their desire for a 777X successor sooner rather than later, but Piasecki says Boeing's customers are comfortable with an end-decade service entry date.
Pointing out that there will always be a trade-off between delivering a product sooner or holding off to include newer technology, she says: "Our customers are really comfortable with our decision to put the most advanced engine technology onto this 777, and that means, by definition, that's really end of [the] decade. Are we comfortable with that? Yes. Because it's going to be so much better. It's going to obsolete the A350-1000 before the A350-1000 is even delivered."
Emirates president Tim Clark has publicly called on Boeing to "get the job done" on the 777X, and is keen on the proposed new aircraft as a replacement for the airline's older 777-300ERs, which will exit Emirates' fleet around 2017.
Both Emirates and Qatar Airways have ordered the A350-1000, which went through an extensive redesign unveiled at the Paris air show in 2011. Cathay Pacific Airways gave the programme a boost earlier this year at the Farnborough air show when it became the first customer to order the aircraft following the changes to increase its range. Four other airlines - Emirates, Qatar Airways, Etihad Airways and Asiana Airlines - had ordered the A350-1000 before the redesign.
Both Emirates and Qatar Airways have expressed reservations about the changes made to the A350-1000, and said they would be keen on the 777X as well.
While former Boeing Commercial Airplanes chief executive Jim Albaugh had said the airframer was targeting a 777X board launch decision by end-2012, his successor Ray Conner has moved away from upholding this timeline.
In a August letter, Teal Group analyst Richard Aboulafia refers to what he calls Boeing's "backpedalling", saying: "Boeing maintains that the 777-300ER is as good, if not better, than the A350-1000, and therefore, it can delay the 777X. The 777-300ER may be a superb plane, but the market still prefers newer models."
Pointing out that Cathay, a major 777 operator, had defected to the A350-1000, Aboulafia adds: "That was a predictable event, and more defections are likely."
Piasecki declines to be more specific with the 777X timing, but believes Boeing will be "more mature" in the production system than its rival will be with the A350-1000. "They have a lot more risk, we are building off a very proven platform," she says.
And although Boeing chief executive Jim McNerney has said the airframer could seek internal launch approval for the 787-10X by end-2012 or early-2013, Piasecki reiterates: "We are not being specific on timing, we do have some more work to do."
Emphasising that Boeing is concentrating on getting the 787 programme's production rate up, she adds that the airframer is not ready to announce anything that will put any risk on the 787-8 and -9 programme. However, she states that the 787-10X will be 25% more fuel efficient than the A330-330s being produced today. "I can't imagine anyone that would want to finance or own an A330-300 in the wake of this airplane," she says.
Boeing is targetting a production rate of five 787s a month by end-2012, and 10 a month by end-2013 across its entire production system. It recently activated a surge line in its Everett facilities to help meet this rate, along with an existing final assembly line in Everett and a second in Charleston, South Carolina.

ANA to launch new routes for H2

Japanese airline All Nippon Airways (ANA) plans to operate its Boeing 787s on a wider range of international and domestic routes in the second half of FY2012.

The airline will launch its five times weekly Narita-San Jose service on 11 January 2013. It plans to use Narita as a hub to improve flight services between North America and Asia.

ANA will also deploy its 787-8s on the Narita-Seattle and Haneda-Beijing routes, starting October. Flights from Narita to Taipei and Hangzhou will be operated with 777-200ERs and 737-700s respectively.

To take advantage of the new Ishigaki airport, ANA will also resume its Chubu-Ishigaki service on 8 January 2013 and Miyako-Ishigaki route from 28 October.

The carrier will add a daily flight on services from Haneda to Sapporo and Yonago, Chubu to Okinawa and Itami to Kumamoto.

Flights between Hiroshima and Sapporo will resume starting 13 December.

On the cargo front, the airline will boost the frequency of services from Narita and Kansai to Bangkok to five times weekly from 28 October.

1000

Boeing forecasts that Indian airlines will receive 1,450 aircraft valued at $175 billion in the next 20 years, with India to surpass China with the world's highest traffic growth. In a presentation to Indian journalists, Boeing cited several factors for this strong growth including Indians' high propensity to travel, improved domestic air services and liberalisation. Between 2012 and 2031, the US airframer predicts annual compound traffic growth (traffic to, from, and within) of 8.4% for South Asia, compared with 7% for China, 6.6% for Latin America and 6.5% for Southeast Asia. Over the same period, it forecasts average world traffic growth of 5%, with Europe having 4.1% growth and North America 2.8%. Of the 1,450 aircraft Indian carriers will obtain, it foresees Indian carriers buying 1,201 single-aisle jets and 234 twin-aisle jets. The airframer paints a bleak market forecast for regional jets of 15 aircraft, and predicts zero demand for large aircraft. This amounts to $500 million for regional jets, $114 billion for single-aisle jets, and $61 billion for twin-aisle jets. ai 787 website © Air India Although it predicts single-aisle aircraft will comprise 83% of deliveries and twin-aisle aircraft 16%, the value of single-aisle aircraft will comprise 65% of the market and twin-aisle aircraft 35%. Boeing suggests that the ailing Indian airline industry may be on the cusp of a turnaround. It notes that domestic capacity and demand are more balanced, with domestic RPKs rising by 1.7% and ASKs rising by 2% in the first quarter of 2012. On the international front, both Air India and Kingfisher have made "significant capacity reductions".

The world's first operational Boeing 787 was forced to return to the gate at Okayama after a leak in a hydraulic pump located in its port-side engine nacelle.

The All Nippon Airways (ANA) 787, bearing registration JA801A, was taxiing before take-off on the Okayama-Tokyo route this morning when the pump failed, ANA said.

The issue came to the pilots' attention when cockpit instruments alerted them to a rapid hydraulic pressure fall. They shut down the port-side engine and taxied to a gate using the aircraft's starboard engine.

A Rolls Royce spokesman clarified that the pump is not part of the Trent 1000, though the engine drives the pump.

There were 88 passengers, six cabin crew and two pilots aboard at the time of the incident. All disembarked safely via an air bridge.

Media reports from Japan suggested that white smoke was seen coming from the engine. ANA attributed this to the heating of engine parts near the pump leakage.

On 22 July, ANA grounded five of its 11 Boeing 787s after the airframer notified the carrier of a possible gearbox defect in the Trent 1000 engine.

All five aircraft returned to service within days after gearbox supplier Hamilton Sundstrand shipped replacement parts to ANA.

India to require 1,450 new aircraft in next 20 years: Boeing

Boeing forecasts that Indian airlines will receive 1,450 aircraft valued at $175 billion in the next 20 years, with India to surpass China with the world's highest traffic growth.
In a presentation to Indian journalists, Boeing cited several factors for this strong growth including Indians' high propensity to travel, improved domestic air services and liberalisation.
Between 2012 and 2031, the US airframer predicts annual compound traffic growth (traffic to, from, and within) of 8.4% for South Asia, compared with 7% for China, 6.6% for Latin America and 6.5% for Southeast Asia. Over the same period, it forecasts average world traffic growth of 5%, with Europe having 4.1% growth and North America 2.8%.
Of the 1,450 aircraft Indian carriers will obtain, it foresees Indian carriers buying 1,201 single-aisle jets and 234 twin-aisle jets. The airframer paints a bleak market forecast for regional jets of 15 aircraft, and predicts zero demand for large aircraft. This amounts to $500 million for regional jets, $114 billion for single-aisle jets, and $61 billion for twin-aisle jets.

© Air India

 

Although it predicts single-aisle aircraft will comprise 83% of deliveries and twin-aisle aircraft 16%, the value of single-aisle aircraft will comprise 65% of the market and twin-aisle aircraft 35%.
Boeing suggests that the ailing Indian airline industry may be on the cusp of a turnaround. It notes that domestic capacity and demand are more balanced, with domestic RPKs rising by 1.7% and ASKs rising by 2% in the first quarter of 2012.
On the international front, both Air India and Kingfisher have made "significant capacity reductions".

Ethiopian Airlines To Bring Dreamliner To Africa

(CNN) -- As the first airline outside Japan to own Boeing 787 Dreamliner, Ethiopian Airlines has an impressive business record despite the global economic crisis. Growing 20 to 30% a year for the past seven years, the airlines' strategic plan is to carry 18 million passengers a year by 2025.
Tewolde GebreMariam, the airline's CEO, says his company is cashing in on Ethiopia's double-digits economic growth and its strategic location."If you draw a line through China, Africa, India and Brazil we are located right in the middle," he says. Read related: Worth the wait: Boeing 787 a hit with first passengersBut the company's future success depends on its ability to deal with Africa-specific pressures. Aviation infrastructure on the continent is lagging behind the rest of the world, and the lack of qualified pilots and technicians means airlines need to invest millions in education and training.Read related: Flier comfort: Boeing 787 myths and factsAs the global airlines continue to suffer from high fuel prices and dropping numbers of passengers, GebreMariam remains confident about the future of the industry in Africa.He sat down with CNN's Jill Dougherty to talk about the company's route to success.CNN: You just flew in on Dreamliner. What do you think is significance of this?Tewolde GebreMariam: Today we got the opportunity to experience what it looks like and what it can offer to customers and to airlines. So I would say to customers, there are a lot of new features. We experienced the amount of humidity at 40,000 above sea level. You feel like you are at 6,000 above sea level so it's more humid. So it reduces drowsiness and dryness, fatigue and jet lag.The windows are much wider than what we have in other airplanes today. From one of side of the airplane you can see the other side. It's 50% composite matter. Much lighter. And as a result of that, it is more fuel efficient -- it consumes 20% less fuel than airplanes in the same category.Read related: Farnborough airshow special coverageCNN: I understand you have a 15 year plan with Ethiopian Airlines and the target is to meet ten billion dollars a year in revenue. What does that goal tell us about Africa's aviation industry?TG: Ethiopia is growing very fast. 11% GDP for the last decade continuously. It's among the fastest growing economies in the world. Africa is growing, so we are growing together. In our vision, 2025, strategy plan is to operate 120 airplanes. To more than 90 destinations, generating about 10 billion dollars, carrying more than 18 million passengers, 720,000 tons of cargo.We've been growing for 20 to 30% per annum compounded for the last seven years. So in seven years, we have multiplied the airline by five times. So this growth is predicted to continue mainly because we are leveraging and harnessing on our strategic location. If you draw a line through China, Africa, India and Brazil we are located right in the middle and we take advantage of this growth because these emerging economies are growing very fast.Video: 787 Dreamliner takes offCNN: What other challenges you face in Africa that companies outside of Africa might not face?TG: We have many challenges. You are right. The first one is infrastructure. Airport infrastructure or aviation infrastructure in the continent. It is not as well developed as the rest of the world so much work is needed there. We're working with African governments to improve on that. The second one is brain drain from Africa to the developed world. And particular to the Gulf, and so this has been a problem for most African carriers. I think for all of us. But going forward we are building a huge aviation academy, the capacity has grown from 150 graduates to 1000 graduates a year. So going forward this program will give opportunity for the country.CNN: Where will this Dreamliner fly? What's the route?TG: This Dreamliner is the first in Africa and also the continent of Africa is first for us. We are a truly African airline. So it will be in Africa for the time being. When we get the second one we will utilize it on the Washington route.CNN: So we can take it! So you have plans to buy two?TG: No. Ten. Already ordered. We'll take delivery of four of them before the end of the year.

Garuda Buka Rute Surabaya ke Mataram dan Semarang

Surabaya - Maskapai penerbangan nasional Garuda Indonesia mengembangkan rute penerbangannya dari Surabaya ke Mataram dan Semarang guna membidik pasar di jalur ini yang dinilai cukup prospektif.

"Untuk itu kami membuka dua rute penerbangan ke Surabaya-Mataram dan Surabaya-Semarang. Kedua rute ini efektif dibuka per tanggal 14 November 2012," kata "General Manager" PT Garuda Indonesia (Persero) Tbk Kantor Cabang Surabaya, Muchwendi Harahap, ditemui di Surabaya, Kamis.

Langkah bisnisnya, kata dia, sejalan dengan rencana operasional pesawat baru jenis CRJ 1.000 NextGen dari perusahaan pembuat pesawat asal Kanada yakni Bombardier Aerospace.

"Pesawat CRJ 1.000 NextGen akan dioperasikan pertama kali pada tanggal 16 Oktober 2012. Bahkan, juga disiapkan untuk melayani rute Surabaya-Denpasar (pergi-pulang)," ujarnya.

Dengan menggunakan tipe pesawat serupa Garuda Indonesia akan menambah frekuensi terbang dari semula empat kali per hari menjadi lima kali per hari untuk melayani rute Surabaya-Denpasar (pp) yang efektif per tanggal 23 Oktober 2012.

"Untuk rute baru Surabaya-Semarang kami yakin dapat mencapai 'load factor' antara 80-85 persen," katanya.

Pilihan membuka rute Surabaya-Semarang karena sampai sekarang sedikit maskapai yang terbang ke Semarang. Bidikan pasarnya yakni kalangan pebisnis dan masyarakat yang gemar pelesir.

"Di sisi lain, untuk rute Surabaya-Mataram kami targetkan bisa mencapai 'load factor' 80 persen. Untuk pasarnya, kami bidik kalangan pelesir," katanya.

Tahun depan, kata dia, pihaknya siap membuka rute baru ke Surabaya-Medan. Bahkan, akan mengoperasionalkan jalur penerbangan Surabaya-Singapura dan Surabaya-Jeddah.

"Masing-masing rute memiliki pasar yang menjanjikan. Apalagi, dari Surabaya banyak masyarakat yang menunggu dibukanya rute tersebut seperti Jedah membidik pasar umroh dan Singapura bidik pasar pebisnis," katanya.

Aalasan menggunakan pesawat CRJ 1.000 NextGen, kata dia, karena memiliki biaya operasional dan konsumsi bahan bakar sangat efisien. Selain itu kapasitas penumpang yang optimal.

"Pesawat dengan sistem pencahayaan kabin berteknologi baik itu memiliki konfigurasi tempat duduk 86 kursi kelas ekonomi dan 12 kursi kelas bisnis," katanya.(*)

Lion and Malaysian firm to announce airline joint venture

Indonesia's Lion Air and Malaysia's National Aerospace & Defence Industries (NADI) are on the verge of forming a new joint venture airline in Malaysia.

"As we continue to grow and develop our business, we will be working with Lion Group, Indonesia's largest privately-run airline, to provide their fleet with MRO services, as well as embarking on a strategic partnership to introduce a new airline to the region," NADI said in an event invitation to celebrate the joint venture on 11 September 2012.

When Flightglobal contacted Lion to learn more, the Indonesian carrier declined to discuss details of the joint venture such as its business model, shareholder structure, aircraft types and routes.
The event will be held in a hotel in Kuala Lumpur and will be attended by Malaysian prime minister, Najib Razak.

The news comes just one week after Malaysia's AirAsia gained approval from the Indonesian government to acquire Batavia Air. The deal, likely to be completed in the second quarter of 2013, will add 33 aircraft to AirAsia Indonesia's current fleet of 19. The move will strengthen AirAsia's competitive position in Lion's home market.
NADI is a conglomerate involved in aerospace businesses such as MRO, engine modifications and upgrades, aerospace parts manufacturing and avionics.

Lufthansa, flight attendants agree to mediation to settle labor dispute

Lufthansa (LH) and the UFO union—which represents 18,000 LH flight attendants—have agreed to mediation to settle their dispute after three days of strikes forced the cancellation of more than 1,000 flights, Reuters reported Friday.

The move came Friday after LH said it would stop outsourcing flight attendant jobs at its Berlin hub and offer permanent jobs to the cabin crews it uses (ATW Daily News, Sept. 7).

According to a Reuters report, UFO union boss Nicoley Baublies told reporters in Frankfurt, “We have signed a preliminary agreement over a mediation on the wage components. Starting tomorrow there will no longer be any strikes until we agree to or reject an arbiter’s ruling.”

Around 1,000 flights in and out of Frankfurt were canceled Friday as flight attendants staged a third day of strikes in the escalating dispute over pay and conditions. LH said 105,000 passengers were affected and that the first two days of strikes cost the carrier €10 million ($12.6 million).

Qantas to launch Boeing’s onboard performance solution for iPad

KUALA LUMPUR: Boeing announces that Qantas will be the launch customer for the its Onboard Performance Tool (OPT) for iPad.
The OPT gave pilots the ideal speed and engine settings for any aircraft, in any weather, on any runway, Boeing said in a statement from Seattle.
It helped to create vast gains in efficiency, range and payload.
This marked the first time the OPT application had run on iPad.
The Australian carrier would deploy the OPT for iPad on 130 of its Boeing airplanes in the fourth quarter of 2012.
The mobile OPT might be used as a standalone solution or as backup to Class 2 or 3 Electronic Flight Bag (EFB) applications http://www.boeing.com/commercial/flightops/efb.html.
An Electronic Flight Bag replaced the pilot’s traditional, heavy flight bag with a light hardware and software package that calculated performance, displayed charts, improved taxi positional awareness, provided video flight deck entry surveillance and allowed electronic access to documents.
Use of an EFB improved flight data accuracy, ground reports and paper handling and storage costs.
The original OPT application for EFB solutions had been available since early 2000 and has over 120 customers.
Per Noren, vice president of Information Services, Boeing Commercial Aviation Services, said the mobile OPT was the latest of the company’s industry-leading airplane applications, part of its Digital Airline solutions suite.
“It was developed to give our customers a marketplace advantage as they serve their customers and run the most efficient operations possible.
“Boeing has a unique portfolio of digital solutions and we’re rapidly expanding it, making use of our existing and new, innovative technologies,” he said.
Captain David Oliver, head of Flight Technical for Qantas, said, “The Boeing mobile OPT is well-aligned with our flight deck mobile strategy.
We especially appreciate the OPT’s remarkable flexibility, which allows us to define unique policies and configurations to suit our needs.” John Maggiore, director of Airline Performance Management, Boeing Commercial Aviation Services, said since the initial offering in mid-July, more than 80 airlines had requested quotes or more information about OPT for iPad.
“We have been very successful in the marketplace with our existing OPT application, but our customers told us they wanted a version for iPad.
“When they talk, we listen, because we want to give them the competitive advantage they need to be successful every day.
“That’s all part of the Boeing Edge,” he said.
Boeing was continuously innovating and transforming a number of its existing and new applications to be deployed via mobile devices, in addition to developing entirely new applications. — Bernama

Read more: http://www.theborneopost.com/2012/09/08/qantas-to-launch-boeings-onboard-performance-solution-for-ipad/#ixzz25xPRSwIa

Chinese firm to entice Air France pilots to head to Asia

Air France pilots are to meet Monday with a Chinese company hoping to recruit them to Asia, union officials said, as the French airline tries to shed staff to regain competitiveness.

Pilots from Air France and two subsidiaries are to attend the informational meeting organised by the French aviation association APNA, where they will be encouraged to volunteer for the contracts.
The pilots would be based in Shanghai and fly regionally under the terms of the two-year renewable contract, according to an APNA document on the website of the SNPL main pilot union.
Air France announced in June it needed to slash over 5,000 jobs, or around 10 percent of its workforce, through voluntary departures by 2014, as part of a larger plan to make the struggling airline profitable.
The move comes as fast-growing airlines in Asia and the Middle East have begun to look for trained pilots in Europe and the Americas, where established carriers there seek to downsize due to a market slowdown.
US aircraft manufacturer Boeing recently estimated that the Asia/Pacific region will require over 185,000 new pilots over the next two decades.

Singapore Airlines to start daily Yangon service

Singapore Airlines (SIA) said Wednesday it will start a daily service to Yangon in October to meet growing business and tourist demand for flights to Myanmar's largest city.

The announcement by one of the world's top airlines comes amid growing international interest in once-isolated Myanmar, which launched political reforms after ending nearly half a century of military rule last year.
"Demand has been growing strongly for both business and leisure travel to Myanmar, and Singapore Airlines looks forward to serving the country for the first time," SIA executive vice president Mak Swee Wah said in a statement.
SIA will take over seven of the 16 flights run every week by its regional wing SilkAir from October 28, using 323-seat Boeing 777-200 aircraft to boost the group's weekly seat capacity to Yangon by 55 percent.
SilkAir uses smaller Airbus A320 planes.
"SIA and SilkAir are constantly looking at new market opportunities and the launch of SIA services enables us to quickly meet the growing demand for travel to this increasingly popular destination," Mak added.
Yangon, the former capital, is the country's biggest city and remains its commercial hub despite the transfer of the seat of power to the remote administrative centre Naypyidaw in 2005.
Myanmar has surprised the international community by freeing political prisoners and launching a series of reforms that have convinced leading Western nations to start rolling back sanctions.

Virgin Atlantic to enter short-haul market

Richard Branson's Virgin Atlantic on Tuesday said it would enter the short-haul market with the launch of a London-Manchester flight following rival British Airways' takeover of bmi.
"Virgin Atlantic Airways Ltd today announced plans to fly from London Heathrow to Manchester Airport (in northwest England) from March 2013 -- providing competition to BA's short-haul service.
"The new route is the airline's first foray into domestic flying; signaling the start of a new network which will provide regional feed to its long-haul service," the company added in a statement.
Virgin Atlantic chief executive Steve Ridgway added: "Flying between Heathrow and Manchester is just the start for Virgin Atlantic's new short-haul operation.
"We have the means to connect thousands of passengers to our long-haul network as well as to destinations served by other carriers. Our new service will provide strong competition to omnipresent BA; keep fares low and give consumers a genuine choice of airline to fly to Heathrow and beyond."
British Airways earlier this year bought regional carrier bmi from Germany's Lufthansa -- angering Virgin Atlantic which said the deal would lead to fewer flights and fare hikes.
Virgin Atlantic's long-haul routes include flying from London and Manchester to the United States and the Caribbean. It also flies between London and Africa, Asia and Australia.
The airline's announcement Tuesday comes after Branson's Virgin Rail Group last week lost a long-held deal with the British government to run a major route linking London with Glasgow via Manchester.
British tycoon Branson hinted that losing Virgin Group's only railway franchise could see him exit the trains business.

Singapore Airlines get in-flight wifi access

Passengers flying with Singapore Airlines (SIA) can now access the internet for a fee, announced the airline Thursday.

SIA passengers will not only be able to send and receive emails on smartphones and other electronic devices during their flight but also send and receive SMS text messages with GSM-compatible mobile phones.
The new In-Flight Connectivity Programme, which cost SIA US$50 million, is now available on 14 aircraft in the fleet, including five Airbus A340-500s which fly long-distance routes between Singapore, Newark and Los Angeles. The service will be progressively rolled out across various long-haul SIA aircraft over the next two years.
From now to November 30, the airline will charge passengers for the wifi service at promotional rates of US$25 for every 30 megabytes of data surfed and US$10 for 10 megabytes of data, before it reverts to the regular tariffs of US$29.95 for 26 megabytes and US$11.95 for 10 megabytes.
SIA Senior Vice President of Product & Services Tan Pee Teck said in a press statement that "there will be much more investment in the months and years ahead to keep our customers both connected and entertained."
SIA recently unveiled new measures to attract more passengers in a bid to stay ahead of its rivals such as Qatar Airways and Emirates. In August, the airline announced plans to develop a new design concept in all of its 15 SilverKris airport lounges worldwide. It also plans to revamp its plane cabins and in-flight entertainment platform.
Singapore Airlines, which started in 1972, was the first airline to offer free headsets and drinks in Economy Class in the 1970s. It was also the first airline to introduce satellite-based in-flight telephone service in 1991.

Lufthansa, cabin crew union take pay dispute to arbitration after flight attendants walk out

BERLIN - Germany's Lufthansa and a union representing its cabin crew have agreed to take their pay dispute to arbitration — a move that will put any further strikes on hold.

Lufthansa said it and the UFO union agreed to the move Friday — after the airline cancelled hundreds of flights after cabin crew walked off the job at German airports.
The flight attendants started their 24-hour walkout midnight Thursday in a battle with the airline, which is struggling to compete against European budget carriers and government-owned airlines from the Persian Gulf.
Lufthansa says the two sides aim to agree by the end of next week who the arbitrator will be. The union will have to refrain from further strikes from Saturday until the end of the arbitration process.

Berlin airport opening pushed back 7 months

BERLIN (AP) — The opening of Berlin's problem-plagued new airport has been put off until October 2013 — a seven-month postponement and the second delay this year.

Airport planning chief Horst Amann said Friday that the Willy Brandt airport, located just outside the city limits, will open on Oct. 27, 2013, rather than March 17 as previously planned.
It will replace the small and aging Tegel and Schoenefeld airports, which served West and East Berlin respectively during Germany's Cold War division. But construction has run into technical and planning problems, and the project has become a growing embarrassment to local politicians.
Previous plans to open the airport on June 3 this year were scrapped with just a few weeks to go.

First Dreamliner aircraft delivered to Air India in the US

Flag carrier Air India Thursday took charge of the first of its Boeing 787 Dreamliner aircraft at Charleston in South Carolina in the US, ahead of flying it down to the Indian capital.

"Our technical team in the US has taken the delivery of the first 787 Dreamliner aircraft. We expect the aircraft to land in India by Saturday evening," a senior Air India official told IANS here.

According to Air India's Chairman and Managing Director Rohit Nandan the new aircraft will allow the airline to operate on new routes and enable it to save fuel cost.


“The 787 aircraft will allow Air India to open new routes in a dynamic marketplace and provide the best in-flight experience for our passengers,” Nandan said.

The 787 plane has the range and capability to allow Air India to deploy it on many routes including the Middle East, Europe, Asia and Australia.

Key airline officials like general manager for the wide-bodied aircraft and director of operations took the delivery and will stay in the US to finish the final modalities of sale and lease before flying the aircraft home.


The development comes after an Aug 3 decision of the cabinet committee on economic affairs (CCEA) which approved the proposal of the civil aviation ministry allowing the flag carrier to take delivery of 27 Boeing 787 aircraft after signing the delay-compensation settlement agreement.

Air India will be the fifth global airline after All Nippon Airways and Japan Airlines to receive the fuel-efficient and eco-friendly aircraft.

Air India had booked 27 Boeing 787s in 2006 in a mega deal. The carrier was to get the delivery in May 2008, but that got pushed forward to the end of the month for a variety of reasons including manufacturing delays.

The aircraft were scheduled to be delivered from September 2008 to October 2011. But due to certain design and production issues, these were delayed and rescheduled to be delivered between June 2012 and March 2016.

The airline plans to deploy the 787 Dreamliner aircraft on domestic routes to save on fuel, train the crew and add flexibility in its winter schedule by flying out to select domestic and overseas destinations.

"A key feature of the aircraft is fuel saving. It consumes 20 percent less fuel than other aircraft. The proposal to deploy the aircraft on domestic routes will help us save on high jet fuel cost," the official said.

The Boeing 787 aircraft is made of composite materials. Its newly-developed engine and advanced flight technologies make it highly fuel-efficient. The plane can fly up to 16,000 km non-stop.

The aircraft comes with a slew of advanced technologies which reduce noise and emission during all phases of flight, including take-off, cruise and landing.

The Air India's 787 will also be equipped with best-in class seats for its 256 passengers from Contour Aerospace and Weber Aircraft.

While Contour Aerospace will equip the 18 business class seats, Weber would provide the other 238 seats.

The official said it would have state-of-the-art in-flight entertainment system from the aviation electronics major Thales. (IANS)

Air India picks 65 pilots to fly Dreamliner

National carrier Air India has selected 65 pilots so far to fly the Dreamliner aircraft.

"The criteria adopted for their selection is that the pilot should be less than 53 years as on 1.5.2012 to be able to serve Air India for a minimum of five years after the training," said Civil Aviation Minister Ajit Singh in Lok Sabha on Friday.

Singh said in order to rationalize manpower for achieving optimum utilization and as a part of Turn Around Plan (TAP), Air India has approved a Voluntary Retirement Scheme (VRS) for all permanent and confirmed employees of the company who are in Indian Scales of Pay and have rendered a continuous service of minimum of 15 years in the company or have reached minimum age of 40 years as on date of the closure of the scheme.

"Employees holding licences/approval from DGCA as part of their job requirements like aircraft engineers, pilot, simulator maintenance engineers, approved flight dispatchers, service engineers etc. are not eligible. The proposed VRS scheme targets a total of approximately 5000 employees," he said. (IBNS)

German cabin crews, Lufthansa agree to mediation

FRANKFURT (Reuters) - German airline Lufthansa and its cabin crew have agreed to seek the services of a mediator to try and settle their dispute which has caused the cancellation of over 1,000 flights into and out of Germany, the union said on Friday.

"We have signed a preliminary agreement over a mediation on the wage components," UFO union boss Nicoley Baublies told reporters in Frankfurt.

"Starting tomorrow there will no longer be any strikes until we agree to or reject an arbiter's ruling," he said.

Boeing sees 20-year need for 5,260 planes in China

CHICAGO (AP) -- Boeing Co. said Wednesday that it expects that Chinese airlines will need 5,260 new commercial jets worth $670 billion over the next 20 years.
Boeing said three-quarters of those new planes will be for growth rather than replacing old planes.
Boeing isn't predicting that it will sell all of those planes. It will face its usual competition from Airbus. And China's own COMAC plans a new plane that will compete with some of the smaller jets made by both companies. More than 300 of the new COMAC planes have been ordered, mainly by Chinese airlines.
Boeing's projection on Wednesday was a more detailed version of its earlier forecast that the Asia Pacific market will need 12,030 planes over the next 20 years. Boeing projected a need for 34,000 planes worldwide during that time, including passenger jets and freighters.
On Tuesday Airbus released its own 20-year projection for 28,200 commercial planes with more than 100 seats, and freighters. The Airbus estimate included 9,620 in the Asia-Pacific region.
Boeing shares rose 86 cents to $71.73 in midday trading.

Air India takes delivery of its first Boeing 787 Dreamliner

CHARLESTON, South Carolina (Reuters) - Air India (AIN.UL) took delivery of its first Boeing 787 commercial widebody airplane on Thursday at Boeing Co's (BA) final assembly plant after a months-long dispute between airline and manufacturer over compensation for a four-year production delay.
Three white 787s trimmed with red and orange Air India colors were parked at the Boeing plant near Charleston, South Carolina and ready for delivery at the end of May. Delivery was held up for months while Air India and Boeing worked out a compensation settlement and waited for Indian government officials to approve it. Terms were not disclosed.
The Dreamliner was also at the heart of a recent Air India pilots' strike. In July, about 500 Air India pilots ended the almost two-month strike over exclusive rights to fly the Dreamliner.
The striking pilots had demanded that their colleagues from the former Indian Airlines, the domestic state-run carrier that merged with Air India, not be trained to fly Dreamliners because they worried it could hurt their own career prospects.
Boeing said Air India is the fifth airline in the world to take delivery of a 787 Dreamliner. The ailing airline has ordered 27 Dreamliners in all.
"I am sure Air India and their customers will be thrilled to experience the revolutionary features on the 787, an airplane that will be the key focus of the airline's turnaround plan," said Dinesh Keskar, senior vice president of Asia Pacific and India Sales for Boeing Commercial Airplane, in a statement.
The airplane delivered today was built in Everett, Washington and flown to South Carolina for delivery.
"The 787 will allow Air India to open new routes in a dynamic marketplace and provide the best in-flight experience for our passengers," said Rohit Nandan, Air India Chairman and Managing Director.
Made primarily of lightweight carbon fiber materials, the new 787 is lighter than standard aluminum widebody jets. It is the first mid-size airplane capable of flying long-range routes, enabling airlines to open new, non-stop routes preferred by the traveling public, Boeing said in a statement.
Air India's Dreamliner is equipped with 18 business class seats and 238 economy class seats. The airplane is scheduled to fly to New Delhi on Friday.
India, one of the fastest growing aviation markets in the world, offers tremendous growth opportunities to planemakers as more newly affluent Indians take to the skies. Boeing officials forecast passenger traffic to grow by 8.4 percent annually in South Asia, which includes India, and by 7 percent annually in China up to 2031.
Boeing Co raised its forecast for the Indian plane market earlier this month, saying the South Asian country would need 1,450 new aircraft worth $175 billion by 2031. "India will have the highest passenger traffic growth in the world, higher than even China's in the next 20 years," Keskar told reporters.

Airbus says delivered 364 aircraft between Jan-August 2012

PARIS (Reuters) - European planemaker Airbus (EAD.PA) said on Wednesday it had delivered 364 aircraft between January and August of this year.

The company won 384 net orders out of 415 gross orders, Airbus said in a statement.

Airbus sees demand for 28,000 planes over 20 years

LONDON (Reuters) - Airbus sees demand for some 28,000 new aircraft worth $4 trillion to cater for air travel growth in the next 20 years, the European planemaker said on Tuesday.

By 2031, the global passenger plane fleet will rise to over 32,550 aircraft from 15,500 today, Airbus said, adding that the Asia Pacific region would account for 35 percent of all new aircraft deliveries in the next two decades.
Passenger traffic will grow at an average annual rate of 4.7 percent in the next 20 years, during which some 10,350 aircraft will be replaced by new efficient models, EADS (EAD.PA)-owned Airbus said.
"Aside from growth in international traffic, by 2031 four of the world's biggest traffic flows will all be domestic - U.S., China, Intra Western Europe and India," Airbus sales chief John Leahy said.
"In 20 years from now, China's domestic passenger traffic will overtake the U.S. domestic traffic to become the number one traffic flow in our forecast. Aviation is not just essential for international commerce, but also for domestic economies too."

China to need over 5,000 new planes by 2031 - Boeing

REUTERS - Boeing(NYS:BA - News) on Wednesday forecast that China will need 5,260 new airliners valued at $670 billion over the next 20 years and expects the country to become the second largest market for new commercial airplanes.
The U.S. planemaker said small and intermediate twin-aisles, such as the Boeing 787 Dreamliner and 777, will account for a significant part of future deliveries in China.
It said in a press statement that tourism in China will also fuel strong demand for single-aisle aircraft, with total deliveries reaching 3,650 through 2031.
"We expect Chinese carriers to experience rapid international expansion over the next 20 years, with an annual increase rate of 8.9 percent on average," said Randy Tinseth, Boeing Commercial Airplanes vice president of Marketing.
Boeing and its European rival, Airbus (PAR:EAD.PA - News), are locked in a global contest for market share and in some cases have halved prices to bolster orders of revamped models of their best-selling narrowbody jets.
Boeing earlier raised its forecast for the Indian market, saying it would need 1,450 new aircraft worth $175 billion by 2031.
Airbus, owned by aerospace group EADS (PAR:EAD.PA - News), said on Tuesday that global airlines will buy a total of $4 trillion of aircraft over the next 20 years as they seek efficient new models to counter high fuel costs and meet relentless demand for travel to and from emerging markets.

Boeing Eyes Chinese Market

The Boeing Company (BA) projects that China will need 5,260 new commercial airplanes, valued at $670 billion, over the next 20 years. Boeing is bullish over the Chinese market since it expects 75% of the new demand will be for growth instead of replacement. The Chinese market will benefit from sustained strong economic growth, growing trade activities and increasing personal wealth.

Boeing predicts that small and intermediate twin-aisles, such as the Boeing 787 Dreamliner and 777, will account for a significant part of future deliveries. These airplanes are expected to be the highest value segment, making up 48% of the market in value with some 1,190 new deliveries anticipated. The expansion of the Chinese market has also unleashed pent-up demand for broader international travel.

Boeing expects Chinese carriers to experience rapid international expansion over the next 20 years, with an annual increase rate of 8.9% on average. Tourism in China will also help fuel a strong demand for single-aisle aircraft, with total deliveries of single-aisle airplanes reaching 3,650 through 2031. Also, the new 737 MAX family will allow Boeing to continue to deliver the most fuel-efficient, capable airplane with the lowest operating costs in the single-aisle market.

Worldwide, Boeing projects investments of $4.5 trillion for 34,000 new commercial airplanes to be delivered during the next 20 years.

Currently, Boeing jets are the mainstay of China's air travel and cargo system. More than 50% of all the commercial jetliners operating in China are Boeing airplanes. Some 6,000 Boeing airplanes fly throughout the world with integrated China-built parts and assemblies. China has a component role on every current Boeing commercial airplane model - the 737, 747, 767, 777, as well as the world's newest and most innovative airplane, the Boeing 787 Dreamliner.

Boeing enjoys a unique position as the largest aircraft manufacturer in the world in terms of revenues, orders and deliveries and is one of the largest aerospace and defense contractors in the world. Besides, its revenues are spread across more than 90 countries around the globe.

Boeing expects its full-year 2012 Commercial Airplanes' deliveries to be between 585 and 600 airplanes, which are already sold out. This includes an expected 70 to 85 787 and 747-8 deliveries. Commercial Airplanes' 2012 revenue is expected to be between $47.5 billion and $49.5 billion with operating margin hovering around 9.0%.

Boeing currently retains a Zacks #3 Rank, which translates into a short-term Hold rating. Considering the fundamentals, we are maintaining our Neutral recommendation on the stock. This is in sync with other aerospace and defense behemoths, General Dynamics Corporation (GD) and L-3 Communications Holdings Inc. (LLL).

Boeing sees 20-year need for 5,260 planes in China

CHICAGO (AP) -- Boeing Co. said Wednesday that it expects that Chinese airlines will need 5,260 new commercial jets worth $670 billion over the next 20 years.

Boeing said three-quarters of those new planes will be for growth rather than replacing old planes.
Boeing isn't predicting that it will sell all of those planes. It will face its usual competition from Airbus. And China's own COMAC plans a new plane that will compete with some of the smaller jets made by both companies. More than 300 of the new COMAC planes have been ordered, mainly by Chinese airlines.

Boeing's projection on Wednesday was a more detailed version of its earlier forecast that the Asia Pacific market will need 12,030 planes over the next 20 years. Boeing projected a need for 34,000 planes worldwide during that time, including passenger jets and freighters.

On Tuesday Airbus released its own 20-year projection for 28,200 commercial planes with more than 100 seats, and freighters. The Airbus estimate included 9,620 in the Asia-Pacific region.
Boeing shares rose 86 cents to $71.73 in midday trading.

India to top passenger traffic growth in 20 yrs: Boeing

NEW DELHI (Reuters) - Boeing Co raised its forecast for the Indian plane market on Tuesday, saying the South Asian country would need 1,450 new aircraft worth $175 billion by 2031.
Last year, the U.S. planemaker had forecast demand at 1,320 planes up to 2030, worth $150 billion.
"India will have the highest passenger traffic growth in the world, higher than even China's in the next 20 years," Dinesh Keskar, Boeing's senior vice president for Asia Pacific and India, told reporters.
Boeing officials forecast passenger traffic to grow by 8.4 percent annually in South Asia, which includes India, and by 7 percent annually in China up to 2031.
Boeing and its European rival, Airbus, are locked in a global contest for passenger plane market share and in some cases have resorted to halving prices to bolster orders of newly revamped models of their best-selling narrowbody jets.
India, one of the fastest growing aviation markets in the world, offers tremendous growth opportunities to planemakers as more newly affluent Indians take to the skies.
However, the Indian market has slowed recently. India's domestic air traffic fell 1.1 percent in July compared to a year ago, the worst performance for any market globally, according to the International Air Transport Association, an industry body representing more than 80 percent of global air traffic.
India's airlines are struggling with surging oil prices, high sales taxes on jet fuel and fierce competition that has resulted in cutthroat pricing, leading to massive losses.
Boeing has also lost several deals in Asia to Airbus recently, including a $7 billion order from Philippine Airlines Inc, despite massive U.S. lobbying on behalf of Boeing.
Boeing has been waiting for months to deliver the first of 27 Dreamliners ordered by state-owned Air India, but the deal has been delayed by more than four years as Air India and Boeing fought over how much compensation Boeing should pay for production delays that disrupted the delivery schedule.
China last month signed an agreement with Germany for 50 Airbus planes worth more than $4 billion during Chancellor Angela Merkel's visit to Beijing, the first significant order since a dispute between Beijing and Europe over emissions trading.
However, the dispute between China and the European Union has frozen earlier deals and China continues to block the purchase of some 35 larger Airbus aircraft.
Airbus booked orders for 1,419 planes worth some 90 billion pounds in 2011, compared with Boeing's 805. Airbus finished last year with a 64 percent market share.

Lufthansa cabin crew threaten further strikes

FRANKFURT (Reuters) - Cabin crew representatives warned Lufthansa (LHA.DE) passengers they face fresh disruption on Tuesday and Wednesday unless the carrier makes concessions in a row over pay and conditions.

Lufthansa canceled almost 200 flights last Friday in an initial strike by flight attendants which stranded 26,000 passengers and cost Germany's biggest airline millions of euros.
The airport, Germany's busiest, was also closed to inbound flights from Europe for several hours due to congestion.
The UFO cabin crew union wants a 5 percent pay increase and guarantees against outsourcing and the use of temporary workers.
Lufthansa is in the midst of a 1.5 billion euro cost-cutting program to combat rising fuel costs and competition from low-cost and Gulf carriers.
The airline has said it will not improve its offer to raise pay by 3.5 percent in exchange for longer hours.
"We will give Lufthansa until Tuesday. Then they must expect more widespread strikes," Nicoley Baublies, the head of UFO, which represents around two-thirds of Lufthansa's 18,000 cabin crew, told German daily Bild.
The union, which has said Frankfurt, Munich and Berlin are all candidates for action, will announce on Monday night where and for how long it intends to strike on Tuesday.
Silvia Quandt analyst Stefan Kick estimated the cost per day of strikes at around 10 million euros ($12.60 million).
Lufthansa said it had a contingency plan for further strikes but gave no details. ($1 = 0.7933 euros)

Lufthansa, cabin crew to resume talks over strikes

FRANKFURT (Reuters) - The union representing striking cabin crew at Lufthansa (LHA.DE) said it would resume talks on Friday afternoon with the airline in a bitter row over pay and conditions that led to a 24-hour strike on Friday, the biggest stoppage to date.
Speaking to protesters through a megaphone at Frankfurt's Terminal 1, UFO head Nicoley Baublies said he had telephoned Lufthansa to try to end what he described as "trench warfare".
Friday's Germany-wide stoppage was the third strike in eight days by cabin crew, which so far have resulted in hundreds of cancelled flights and cost Lufthansa over 10 million euros ($12.6 million).
Lufthansa is resisting UFO's demands for 5 percent pay increases and guarantees against outsourcing as it tries to slash costs in a plan to improve annual earnings by 1.5 billion euros by 2014.
"This dancing around must come to an end at some point, that's why I called up Lufthansa," Baublies said.
He said the union was planning no further strikes for the time being but was prepared to resume industrial action should Lufthansa management not move beyond "tactical game playing".
Germany's labor relations are usually more harmonious than in other countries such as France and Spain, but after years of enduring low wage growth, employees are fighting back.
In May, Germany's largest industrial union agreed to a 4.3 percent pay rise for 3.6 million car and engineering industry workers, their biggest pay rise since 1992.
In Germany's airline industry over the last year, there have been threatened walkouts by air traffic controllers, and a strike by airfield workers in February at Frankfurt airport in rows over pay.
Lufthansa had repeatedly called on the union to return to the negotiating table.
"This invitation is still open and we now hope for constructive talks," a spokesman earlier told a German TV station.
The airline has refused to improve on its offer of 3.6 percent more pay in exchange for longer hours, and has also said it does not see much point to calling in a mediator, which under German law would bring an end to the strikes.
Talks between the two sides broke down last week after 13 months of negotiations. The union went on strike for eight hours at Frankfurt airport last Friday before widening the stoppage to Munich and Berlin on Tuesday this week.
Lufthansa said it hoped to operate about half its daily schedule of around 1,800 flights on Friday, more than previously forecast.
After the 24-hour, Germany-wide strike was announced earlier this week, the airline said it would probably cancel around two thirds of flights.
Unlike previous strikes, where the union gave only six hours' notice of the location and duration, Lufthansa has had time to prepare for the latest action.
Frankfurt airport, Germany's busiest, was relatively quiet on Friday and spared the long queues and crowds of stressed passengers seen last week.
Airlines such as British Airways (ICAG.L), Air Berlin (AB1.DE) and Lufthansa unit Austrian Airlines, which is not affected by the strike action, have said they would operate larger planes on routes to Germany to offer more seats to passengers affected by the strike.

Serbia in talks with AirAsia, carrier says no plan to buy JAT

* Serb minister says "serious talks" held with AirAsia

* AirAsia official says not looking to buy any airline

* Serbia looking to sell indebted JAT Airways


BELGRADE/KUALA LUMPUR, Sept 5 (Reuters) - AirAsia, has held "serious talks" with Serbian officials, Transportation Minister Milutin Mrkonjic said on Wednesday, though Asia's largest budget carrier denied it was considering the purchase of Serbia's indebted JAT Airways.

Mrkonjic declined to go into detail, saying only: "Some things should not be revealed, particularly when it comes to serious companies and serious businesses," the Beta news agency reported.

A government official, speaking to Reuters on condition of anonymity, and a senior AirAsia official both told Reuters that a Tuesday report in Serbian daily Vecernje Novosti that said AirAsia was planning to buy JAT was incorrect.

"There was an invitation by Belgrade, and we went to just explore market opportunity there. But no plans to fly there even in a 2013-2014 timeframe. In short, AirAsia X is not looking to buy any airline," the AirAsia official said.

Shackled with a budget deficit of 7.1 percent of gross domestic product (GDP), Serbia is looking to sell JAT, which posted a loss of 3.2 billion dinar (27.1 million euros) in 2011.

A tender for JAT in 2008 collapsed due to lack of interest, and in 2010 the government failed to reach agreement with Turkish Airlines and Latvian operator Baltic Aviation Systems.

In March, JAT secured government guarantees of 10 million euros ($12.56 million) for a loan to cover short-term liabilities.

In 2010 it borrowed 51.5 million euros from the government to renew its ageing fleet of 14 aircraft and prepare for a new partnership. ($1 = 0.7961 euros)

AirAsia close to major new Airbus deal -sources

NEW YORK, Sept 7 (Reuters) - Malaysia's AirAsia is putting the finishing touches to a deal to buy up to 100 Airbus passenger jets as it expands internationally, sources familiar with the matter said on Friday.

The deal, potentially worth around $9 billion, is designed to fuel the growth of what is fast becoming a cluster of related airlines under AirAsia's founder Tony Fernandes, who placed a record order for Airbus jets last year.

If confirmed, the deal could will a setback to Canada's Bombardier which has tried to persuade Asia's largest budget carrier to choose its alternative new CSeries jet.

Talks are at the final stage but the Airbus deal will probably not be ready in time to be announced at next week's Berlin Airshow, the sources said, asking not to be identified.

Boeing's Q2 profit up on rising plane deliveries

Boeing Co reported an increase in second-quarter profit on Wednesday as rising airplane deliveries offset higher pension costs.

The plane maker and defence contractor reported a profit of $967m compared with $941m in the year-ago quarter.

Sales rose 21 percent to $20bn, boosted by commercial aircraft sales.

"Increased revenues and strong operating performance across both our major businesses drove significantly improved first-half 2012 results for Boeing," said chairman, president and CEO Jim McNerney. 

"Commercial airplane deliveries increased 27 percent in the second quarter, and our defence, space and security business also produced higher revenues and strong margins in a difficult market environment.  

"As a result of this solid first-half performance, we have strengthened our outlook for the year, and our people remain focused on disciplined execution, quality and productivity, and meeting customer commitments," McNerney added.

In June, Boeing delivered the last of six transporter aircraft to the UAE military as part of an agreement signed in early 2010.

The US firm handed over the last of the promised C-17 Globemaster III airlifters to the UAE Air Force and Air Defence earlier in June at an assembly facility in California.

The craft are used for strategic airlift of troops and cargo between military bases, in addition to medical evacuation and airdrop missions.

Air India's first 787 set for Dubai route debut

Air India’s first Boeing 787 Dreamliner, scheduled arrive in New Delhi on Saturday, is set to debut on its Dubai route, it has been reported.

The new aircraft will initially operate on flights to the UAE city before being deployed in flights to Europe, Indian media said.

The first of the 787s is flying from Boeing’s Charleston facility to Delhi via Frankfurt.

For the first 10 days, the plane will be on the ground as paperwork has to be completed.

It will ply on the Delhi-Bangalore and Delhi-Kolkata routes as per regulatory requirements and is then expected to fly the Delhi-Dubai route for a few weeks, reports said.

In November, Air India expects to launch flights to Paris or Frankfurt from Delhi with the new 787s, replacing the existing Boeing 777s, media added.

Air India is only the third airline to induct the 787 after ANA and Ethiopian.

Qatar Airways is set to be one of the first airlines to commercially fly the Dreamliner to the UK as the 787 prepares to make its long-haul debut between Doha and London Heathrow later this summer.

Germanwings switches airports in Berlin

Lufthansa (LH) subsidiary Germanwings (4U) said it will transfer all operations from Berlin Schoenefeld to Berlin Tegel airport (TXL) Oct. 28 due to the delayed opening of Berlin Brandenburg Airport (BER) to Oct. 27, 2013 (ATW Daily News, Sept. 4).

4U said in a statement that it originally planned to coordinate all schedules with LH at BER, but was not able to do so because of the delayed opening. Until then, 4U and LH will operate together out of TXL and then transfer operations to BER.

Mideast carriers need 2,520 planes to 2030, says Boeing

Boeing has forecast a $4 trillion market for new aircraft over the next 20 years with a significant increase in forecasted deliveries.

That’s according to the Boeing 2011 Current Market Outlook (CMO) which sees a market for 33,500 new passenger airplanes and freighters between 2011 and 2030.

Of those, 2,520 will be in demand from carriers in the Middle East, Boeing said in a statement.

Asia Pacific is forecasted to need the most new airplanes over the next 20 years and will represent the largest market by value of deliveries at more than $1.5 trillion while the Middle East will also continue to show "very strong growth", the US-based plane maker added.

“The world market has recovered and is now expanding at a significant rate,” said Randy Tinseth, vice president of Marketing, Boeing Commercial Airplanes.

“Not only is there a strong demand for air travel and new airplanes today, but the fundamental drivers of air travel – including economic growth, world trade and liberalisation – all point to a healthy long-term demand.”

Passenger traffic is expected to grow at 5.1 percent annual rate over the long-term and the world fleet is expected to double by 2030.

Robust growth in China, India and other emerging markets will lead to a more balanced airplane demand worldwide, Boeing said.

It added that the continued growth in long-haul connections will fuel the need for new twin-aisle airplanes due to the increase in new, nonstop markets.

While passengers are getting what they want – more frequencies and nonstop service – rising and volatile fuel prices are expected to continue to challenge the industry, Boeing added.

Boeing projects the world freighter fleet to increase from 1,760 to 3,500 airplanes in the same period.
Additions to the fleet will include 970 new-production freighters (market value of $250 billion) and 1,990 airplanes converted from passenger models.

On average over the next 20 years, air cargo traffic will grow at a rate of 5.6 percent, Boeing predicted.

Qantas to take time over alliance - CEO

The head of Qantas has said that the Australian carrier will take its time on deciding whether to enter into an alliance with Dubai’s Emirates Airline, it was reported.

CEO Alan Joyce said the struggling airline would “only enter partnerships when we have the right arrangement for the long-term”, according to the Australian Associated Press.

Speculation has been rife that Qantas, which is losing money on its international routes, could enter a tie-up with the UAE carrier that would give it greater access to passengers travelling from Dubai.

Speaking last week, Emirates chairman Sheikh Ahmed bin Saeed al-Maktoum told reporters that a code-sharing agreement would likely happen within six months, but would not include any revenue-sharing arrangement.

However, Qantas boss Joyce said the airline was in no rush to strike a deal with Emirates: "In the current economic environment, taking our time with this part of our agenda will clearly not undermine our broader transformation plan," he told a business lunch in Sydney.

Joyce also defended planned job cuts at Qantas, which could see approximately 2,800 staff trimmed from its workforce to create AUD$300m (US$316.1m) in savings per year.

In June, Qantas stated that it expected its full-year profit before tax to plunge by as much as 90 percent to between US$50m to US$100m on the back of losses in the airline’s international business.

In its full financial year 2011, the carrier recorded a profit of US$552m.

Qantas drops BA in favour of Emirates deal

Australia's struggling Qantas Airways has dropped its alliance with British Airways as part of a ten-year alliance with Dubai's Emirates, a move which will see the Sydney-based airline direct its European traffic through Dubai instead of Singapore.

Qantas will replace Singapore with Dubai as its hub for European flights from March 2013 and coordinate pricing, sales and schedules with Emirates under the partnership unveiled on Thursday.

"A key objective is to make Qantas International strong and viable, and bring it back to profitability," Qantas Chief Executive Officer Alan Joyce told reporters. "This partnership will help us do that."

Joyce said the airline remained committed to reaching break-even in its international business in the 2015 financial year.

He declined to comment on analysts' estimates that the alliance would save Qantas AUD$90 to AUD$100m before taxes annually, or provide the airline's own forecasts for cost savings.

"Emirates deal with Qantas is significant in several ways. Aside from allowing Qantas to use the custom built Terminal 3 building in Dubai, that Qantas is now routing its key Sydney and Melbourne connections through the city proves that Emirates competitive edge has forced the ailing Australian airline into joining a partnership that is being driven entirely by Emirates management team,” said Saj Ahmad, chief analyst at StrategicAero Research.

As part of the deal, the Australian airline will end its existing relationship with British Airways at the same time as a result of the new alliance.

“By breaking off its deal with British Airways, the UK flag carrier is now on the rack. It has lost a long-time partner in Qantas on the fabled Kangaroo-route and now faces the spectre of even more competition in Dubai given that Qantas will fly there too from its key Sydney and Melbourne hubs,” Ahmad said.

“If BA were smart, they too would join Qantas and Emirates but whether they do so is unclear as it would leave the oneworld alliance in disarray - it's unlikely BA or Qantas could ever convince Emirates to join since the Arab carrier has often stated that it is not interested in joining any of the global alliances. And frankly, it doesn't need to,” he added.

The long-anticipated deal was received warmly by investors, with Qantas' share price surging more than 6 percent in early trade.

The arrangement will enable Qantas to cut loss-making international routes and focus on its profitable domestic and budget operations, while helping Emirates compete against its main state-backed Abu Dhabi rivals Etihad Airways and Qatar Airways.

The alliance is deeper than a straightforward code-share arrangement - where airlines share some flights - but stops short of a global revenue-sharing deal or equity injection from either side.

For customers, benefits include the pair sharing airport lounges and frequent flyer programmes.

It helps Qantas, nicknamed the Flying Kangaroo, confront its disadvantage in the region as a so-called "end-of-line" carrier. Qantas has to spend more on fuel than other airlines in Asia to carry passengers on inter-continental routes as its aircraft are based in Australia.

The hub carriers can service Europe to Australia routes better by picking up passengers from multiple European, Asian and Middle Eastern departure points.

Qantas will drop its Frankfurt route as part of the deal.

The Australian airline has been stripping costs out of its business after a year troubled by a record fuel bill, rising competition and a labour union that has opposed the carrier's spending cuts.

It last month cancelled orders for 35 Boeing Dreamliner jets to further cut costs after posting a full-year net loss of AUD$244m (AUD$254.8m), its first loss in 17 years, due to its bleeding international division.

Emirates, meanwhile, is looking to increase its business in Australia to counter moves by Etihad and Qatar.

Etihad doubled its stake in Qantas rival Virgin Australia to 10 percent last month and Qatar Airways launched its first service to Perth this month, saying that it also wanted to partner with Australian carriers.

Qantas also faces increasing competition on domestic routes from Virgin, which is benefiting from alliances with Etihad, Singapore Airlines, Air New Zealand and Delta .

Qantas shares were up 5.8 percent at AUD$1.19 at 1244 GMT.
* With Reuters

British Airways to increase flights to Riyadh

British Airways said on Wednesday it is increasing its services to Riyadh in Saudi Arabia, starting later this year.

The UK carrier will increase its frequency from Riyadh to London Heathrow from five times a week to six.

The additional flights will take place for the winter schedule, which starts at the end of October, the airline said in a statement.

Together with its five services a week from Jeddah, British Airways operate a total of 11 weekly flights from the Saudi Arabia to London Heathrow.

Paolo De Renzis, regional commercial manager Middle East said: "June marks two years since we resumed flights to the kingdom, during which time we have enjoyed strong business in all cabins.

"The need for an additional service to Riyadh is a clear indication that demand continues to grow and we are delighted to announce this additional service re-affirming our long term commitment to the market."

In May, British Airways said it was scrapping scheduled flights to the Egyptian Red Sea resort of Sharm El Sheikh after political unrest in the region hurt passenger numbers.

The British airline, which in January merged with Spain’s Iberia to form International Consolidated Airlines Group, said it would retain its flights to Cairo.

British Airways to add capacity on Riyadh route

British Airways said on Saturday it is planning to expand capacity on its Riyadh route.
The UK's national carrier said that from October 28, it will use a larger Boeing 747 on the route, rather than a Boeing 777, which means more than 1,000 extra seats a week.

In addition the flight will be retimed and services will arrive at Heathrow in the early morning, enabling customers to land in time for a full working day in London, and increasing opportunities for connections, BA said in a statement.

Following customer feedback, British Airways added that its Jeddah service will now operate on Mondays, Thursdays, Fridays, Saturdays and Sundays.

It said bmi's Riyadh and Jeddah flights will stop from September 16 as British Airways already serves these routes.

Due to poor revenue performance, bmi's services to Dammam will also be suspended from September 16.

Paolo De Renzis, regional commercial manager, Middle East, said: "Our new winter schedule brings over 1,000 additional seats from Riyadh.

"The increased capacity and new timetable gives business and leisure customers the opportunity to connect with British Airways' extensive global network from Heathrow.

"Saudi Arabia continues to be a strategically important market for British Airways and we are committed to flying from Saudi Arabia."