Boeing trims vacated 787 delivery slots to reduce risk

Boeing has trimmed the pace of future 787 deliveries to reduce the risk of over-burdening the production system as it executes a swift and critical ramp-up.
Ray Conner, president of Boeing Commercial Aircraft, also is reviewing plans to ramp up to two 747-8 deliveries per month, and taking a less strident approach than his predecessor on speeding up delivery rates.
But Conner remains "cautiously optimistic" that the company's across-the-board production increases can still be executed. The ramp-up is the basis for the company's guidance for revenue and profitability.
"If we hit these ramp rates we're going to do very well, and we're going to hit them," Conner said at a Morgan Stanley conference on 14 September.
Qantas Airways' decision on 23 August to cancel delivery slots for 35 787-9s created rare vacancies on Boeing's production skyline, but the airframer has chosen not to accept requests for those slots from other customers.
"I've been getting calls all the time to get those positions," Conner says. But "we're using that as an opportunity to de-risk our rate ramp," he added.
Making Boeing's task more of a challenge is the company's schedule to introduce the 787-9 variant in 2014, he said.
By the end of 2013, Boeing plans to deliver 10 787s per month from three assembly lines and the engineering modification centre, or twice the output today. Only 3.5 787s were delivered per month less than a year ago.
Over the same period, Boeing also is increasing monthly output on the 777 from seven to 8.3, and the 737 from 35 to 42. Jim Albaugh, Conner's predecessor, indicated in May that he wanted to push output even faster, complaining that a seven-year order backlog is "too much".
Conner, however, declined an invitation by a Morgan Stanley aerospace analyst to echo Albaugh's philosophy. Instead, Conner spoke of maintaining rates for the 737 at 42 per month and for the 777 at 8.3 per month at least for a certain period.
But Conner seemed less optimistic about prospects for maintaining plans to grow the 747-8 output to two per month.
"The cargo market has flattened," he said.
But he added that high fuel costs are driving cargo carriers to park less-efficient freighters, and continue taking delivery of 777Fs and 747-8Fs.

Lion Air, Malaysian partner launch Malindo Airways

Indonesian low-cost carrier Lion Air will start a hybrid airline in Malaysia in a joint venture with the country's National Aerospace and Defence Industries (NADI).
The new carrier, named Malindo Airways, will start operations in May 2013 with a fleet of 12 Boeing 737-900ER aircraft.
The airline will offer a "hybrid product" using aircraft with a two-class configuration – 12 in business and 168 in economy. The aircraft will also be equipped with in-flight entertainment systems and in-flight connectivity, Lion Air president director Rusdi Kirana said at a press event in Kuala Lumpur, ahead of the signing ceremony.
Under the agreement, NADI will hold a 51% stake in the new carrier and Lion Air 49%. The airline has named Kirana's personal assistant, Chandran Ramamuthy, as its chief executive.
Malindo will be based at Kuala Lumpur International airport's terminal two and focus on routes between Malaysia and Lion Air's hub in Indonesia before operating to other cities such as Bangkok, Manila, Hanoi and Guangzhou. It will also operate on domestic routes.
The carrier intends to add 12 aircraft to its fleet each year, including the Boeing 737 Max and 787. These aircraft will come from Lion Air's current order book, says Kirana.
The five 787s Lion Air has on order – originally set for its premium carrier Batik Air – will instead go to Malindo in 2015. Lion Air is now in talks with Boeing to order an additional 10 787s, said Kirana.
To compete as a newcomer, the new airline will offer ticket prices lower or at least on par with that of Malaysian low-cost carrier AirAsia, said Kirana, adding that Malindo will have a low cost base owing to the involvement of NADI.

Air India takes delivery of 2nd 787 from Boeing SC

Air India has taken delivery of its second 787 Dreamliner and is scheduled to fly it away from Charleston International Airport this afternoon, a Boeing spokesman has confirmed.

The plane, one of two assembled in Everett, Wash. and flown to North Charleston in early July, was officially delivered to the Indian national carrier Tuesday, Wilson Chow, the spokesman, wrote in an email.

According to the flight-tracking website FlightAware, the jet is scheduled to leave for Frankfurt, Germany at around 3 p.m.

The second 787 delivery and flyaway from Boeing South Carolina comes a week and a half after the first. The first jet, which also was made in Washington and then sat parked on the North Charleston flight line for more than two months, was paid for and signed over on Sept. 6 and flew to Frankfurt on Sept. 7. It continued on from there to New Delhi, India, where it was welcomed with a water cannon ceremony.

Tuesday’s delivery comes amid a continuing investigation into the General Electric engines that power Air India’s Dreamliners.

Two GEnx engines have failed this summer, including one in North Charleston, and cracks were found in the drive shaft of a third engine. That series of events led the National Transportation Safety Board on Friday to urgently recommend regular inspections of all in-service GEnx engines. Also on Friday, the Federal Aviation Administration said it “will soon issue an emergency airworthiness directive,” but the FAA has not yet taken any such action.

Follow the Air India 787’s flight from Charleston to Germany on FlightAware here: http://flightaware.com/live/flight/AIC170

Boeing 787 Dreamliner to join Etihad in 2014

The first Boeing 787 Dreamliner will join Etihad in the last quarter of 2014. Etihad Airways, the national airline of the United Arab Emirates, recently announced its plans to take delivery of more 777s and awaits the arrival of the 787 Dreamliner. Last December, Etihad Airways announced it was taking its total order book for the Boeing 787-9 Dreamliner to 41. The order, valued at 9.3 billion dollars, will make Etihad Airways the largest operator of the aircraft type in the world.

The airline owns almost 30 percent of airberlin, Europe's sixth largest airline. In March, the two carriers announced plans to strengthen their partnership by integrating their respective Boeing 787 Dreamliner programmes. Together, Etihad Airways (41) and airberlin (15) have 56 Dreamliners on order.

Etihad Airways' President and Chief Executive Officer, James Hogan said: "It is exciting to see these aircrafts take shape and we look forward to taking delivery of nine more 777s over the next 15 months. For both carriers, the Dreamliner's arrival will be a positive milestone for two strategically aligned partners, who are looking to successfully work with Boeing on our integrated fleet programme. Together, we are sharing infrastructure, streamlining our purchasing activity for engines, rotables, avionics and in-flight entertainment systems, and working on common onboard product specifications for our respective brands which will give passengers a consistent product experience."

Boeing Commercial Airplanes' President and Chief Executive, Ray Conner said: "Boeing is very proud of its partnership with Etihad Airways and the confidence they have in our 777 and 787 airplanes. We are encouraged by the high-level of performance and operational efficiencies that the 777 provides to Etihad Airways' current operations. And as one of Boeing's largest 787 Dreamliner customers, we look forward to when this market-leading airplane becomes part of Etihad Airways' award-winning passenger-service offerings."

Copyright Business Recorder, 2012

Garuda Indonesia Eyes US and Additional European Routes by 2014

Indonesia's national carrier Garuda Indonesia plans to start serving US routes by the end of 2014, a Transportation Ministry source said.

The national carrier has made strides in its safety record in recent years, Transportation Ministry spokesman Bambang S. Ervan said. Garuda Indonesia is expected to be allowed to fly in US airspace once the ban on all Indonesian airlines is lifted.

The ministry expects Indonesian airlines to climb from the US Federal Aviation Administration's category two (banned) to category one (safe) by 2014.

“Garuda is ready to fly to the US with new airplanes that will arrive in 2014,” Bambang said.

Garuda president director Emirsyah Satar confirmed Garuda’s plan to fly to the US, with Los Angeles to be the first city it would fly to.

He said flying to the US would be part of Garuda’s Quantum Leap program, where the airline is targeting to increase its fleet from the current 94 planes to 244 units by the end of 2015.

Garuda spokesman Pujobroto told The Jakarta Globe that not only was Garuda targeting US routes, it also hopes to open more flights to Europe — Garuda currently has one route to Amsterdam.

“In the long run, Garuda will also fly to London, Paris, Frankfurt and Rome or Milan,” Pujobroto said. “The development of the routes/flights will be in line with the arrival of planes that will serve long flights, namely B 777-300 ER, although it will also depend on the global economic situation, especially in Europe and America,” he added.

Emirsyah had earlier said that Garuda expected to boost the number of its passengers from last year’s 17.1 million to 45.4 million by 2015, including 16.4 million forecasted to fly with Garuda’s subsidiary, low-budget carrier Citilink.

[The Jakarta Globe erroneously reprinted an error made by Bisnis Indonesia in the original version of this story. Garuda Indonesia expects to begin flights to the United States by 2014, not 2015. We regret the error.]

ANA's Boeing 787 gets celebrity treatment in Asia

TOKYO -- As the Boeing 787 Dreamliner nosed upward into the clouds, the engines purred rather than roared.
The recent All Nippon Airways domestic flight was anything but a routine route for many passengers. A year after ANA launched the world's first 787 flights, Japanese travelers are still agog. Passengers craned necks to glimpse the big bird at Haneda Airport. And as they boarded, many whipped out digital cameras and iPhones and started shooting pictures like paparazzi setting upon Justin Bieber.
In an era when flying is more about diminished expectations than adventure, airlines like ANA hope the technologically advanced midsize 787 will put some of the thrill back into the air at 35,000 feet. So far, it seems to be working.
"Many, many people are excited," ANA flight attendant Shoko Yoshimura said aboard the recent 787 flight from Tokyo to Fukuoka on the island of Kyushu.

Silicon Valley travelers will get their chance to board the Dreamliner when ANA begins its five-day-a-week 787 route between Mineta San Jose International and Tokyo's Narita International airports on Jan. 11.
San Francisco International spokesman Michael McCarron said "two or three" carriers he declined to identify expect to start flying 787s out of that airport next year. But an Oakland International Airport official who asked not to be identified said none of its carriers has indicated plans to use 787s in the near future.
The 787's high-ceiling cabin glows with pastel colors. Its spacious interior, increased cabin pressure and higher humidity are aimed at making cross-the-world journeys less taxing on bodies. And its fuel-sipping technology and ability to cover long distances allows airlines to tear up old business models that left smaller market airports like San Jose out of their flight paths. It hasn't been profitable for airlines to try to fill larger aircraft -- such as a 368-passenger Boeing 777-300 -- flying into secondary airports. ANA is outfitting its long-haul 787 with only 46 business-class and 112 economy seats.
"It gave us the opportunity to open up new markets -- even secondary markets," said Kohei Tsuji, ANA's director of network planning. Once ANA gets more 787s delivered -- it has so far received 13 of the 55 ordered -- the airline plans to expand its San Jose-Tokyo service to seven days a week, he said. ANA anticipates having 20 Dreamliners by the end of March.
The plane has quickly become the envy of the industry. In a spring survey by ANA of 800 passengers who had flown its 787 between Tokyo and Frankfurt, Germany, 98 percent said they wanted another chance to fly the Dreamliner, no matter what airline's logo was on the plane. A quarter of them said they'd go out of their way to board the new aircraft again.
"The 787 offers an emotional experience," said Robert Herbst, an aviation industry consultant who operatesAirlineFinancials.com . "That's something passengers haven't had for a very long time."
It offers perks that even those who sit in the back of the plane in economy can enjoy. Passengers stepping onto an ANA 787 are greeted by flight attendants standing in the chamber-like entrance with a high ceiling -- creating a sense of airy space rather than the feeling of entering a cramped tube.
"It's a very beautiful plane and very comfortable to ride on," said one passenger on the Tokyo-Fukuoka flight, who would only give his first name, Takahiro.
He was particularly taken with the lavatory enhancements -- toilets equipped with bidet spray options. Two bathrooms also have windows.
"The bathrooms are especially wonderful," the 29-year-old gushed. "The ceilings are high. You feel so much air. It feels good. And it's environmentally kind."
Overhead bins are so high that steps are built into the base of seats so flight attendants can reach the compartments without the risk of falling onto passengers. The plane boasts one of the largest galleys in the sky.
The plane doesn't have shock absorbers to smooth out bumpy air and you still have to fasten your seat belt. But as the 787 lifts off, the rumble of engines is muffled. The twin engines are equipped with noise-reducing chevrons -- jagged edges on the nozzles of the engines -- that lower the sound of jet blasts by controlling how air passes through and around them.
"It was quiet. I was surprised," Gonzalo Guerri, a Chilean tourist visiting Fukuoka, said after he gathered his luggage from the 787 flight. He liked the aircraft's overall ambience and new features, including the iPhone chargers built into seats.
"It's much more comfortable than other planes," Guerri said. "And there are no blinds on the windows. You just push a button. It was pretty cool."
Indeed, the electronic shades are among the most talked-about attractions of the 787, whose windows are at least 20 percent larger than those on other jetliners. With a touch of a pillowy button, passengers can darken the windows like giant sunglasses that change hues -- soft sky blue to dark aqua.
The e-shades, Boeing says, are a feature in specially designed windows embedded with a gel sandwiched between two thin sheets of plastic. When a very low voltage is applied to the gel, the windows change colors.
Airlines around the world, which have ordered more than 800 of the new planes, view the 787 as an industry game-changer. Half of the plane is made of lightweight composites -- high-strength fibers embedded in resin -- allowing it to be 20 percent more fuel-efficient than other jetliners. With the cost of jet fuel soaring some 300 to 400 percent in the past decade, airlines are desperate to get the new plane. Fuel accounts for 35 to 45 percent of an airline's costs, consultant Herbst said.
Boeing's 747 -- once called the Queen of the Skies -- opened up long-haul travel for the masses in the 1970s by lowering per-seat costs. The fuel-guzzling four-engine behemoth, though, now weighs on airline profits.
The new 787, Herbst added, "will have an economic impact that is greater than any other aircraft in modern history."
Even pilots are excited about the new plane, whose cockpit is equipped with a one-piece window that offers better views, ANA network planning director Tsuji said. It also comes with a dual heads-up display -- or HUD -- a sheet of glass mounted in front of pilots that allows them to simultaneously read flight instruments and scan the horizon.
Contact John Boudreau at 408-278-3496; follow him atTwitter.com/svwriter .
All Nippon Airways, the launch customer of the 787, has 13 Dreamliners and plans to use the aircraft on its new San Jose-Tokyo route, which begins Jan. 11.
Japan Airlines has five Dreamliners, and Ethiopian Airlines, Chile's LAN Airlines and Air India each has one.
United Airlines is expected to receive its first 787 soon and should have five by December. Its initial 787 domestic route includes a temporary run between George Bush Intercontinental Airport in Houston and San Francisco International Airport, November to January.Source: Boeing and United Airlines

Copyright 2012 San Jose Mercury News
All Rights Reserved

Boeing, American Airlines, FAA collaborate on 737 ecoDemonstrator Airplane

Testbed jet to advance progressive environmental technology

 

WASHINGTON, Sept.18, 2012 /PRNewswire/ -- Boeing (BA) and American Airlines today showcased a Next-Generation 737-800 airplane known as ecoDemonstrator in Washington, D.C., to highlight testing of environmentally progressive technologies. The visit to the nation's capital follows extensive flight testing in Glasgow, Montana, where it flew a series of missions designed to test and accelerate advanced technologies that increase fuel efficiency and reduce airplane noise.
Top officials from Boeing, American Airlines, and the Federal Aviation Administration (FAA) held a joint news conference at Reagan National Airport to highlight innovation and collaboration among government and industry.
"The ecoDemonstrator illustrates how we're pursuing technologies and advanced materials that make airplanes operate more efficiently and produce fewer emissions and less noise," said John Tracy, Boeing chief technology officer. "I am proud of the leadership role that Boeing is playing in advancing the science of aerospace and demonstrating the value of these technologies to our airline customers, the flying public, and to society at large."
American Airlines is loaning a new Next-Generation 737-800 to Boeing to serve as the testbed for these advanced technologies.  The flight testing completed in Glasgow allowed Boeing engineers to gather volumes of data about the viability of each technology. After testing is complete, the airplane will be returned to standard configuration and delivered to American later this year.
"At American Airlines, we are working diligently to improve our carbon footprint. Reducing noise pollution, conserving fuel and waste minimization are just a few of the areas where we are making progress," said David Campbell, vice president of Safety, Security, and Environmental for American Airlines.  "This is why it is so crucial for us to participate in programs like the ecoDemonstrator, so that we can test technologies that will continue to improve not only American's environmental performance, but our entire industry as well. We remain committed to doing our part to be good stewards for the environment."
The FAA program known as CLEEN (Continuous Lower Energy, Emissions, and Noise) provided funding for the adaptive trailing edge on the airplane as well as some flight test costs.
Other technologies on the 2012 ecoDemonstrator airplane include variable area fan nozzles, active engine vibration reduction, a regenerative fuel cell, and testing of flight trajectory optimization to enable more efficient routing for fuel savings. With fuel now the leading operating expenditure for airlines worldwide and increasingly stringent environmental regulations, improving fuel efficiency and reducing carbon and noise emissions is a top priority for the aviation sector.
"Boeing is fully committed to helping airlines operate more efficiently, with reduced environmental impact," said Tracy. "We are committed because it is the right thing to do, and because meeting the environmental challenges we face will enable our industry to grow and broaden the benefits that aviation provides to global economic growth."
The 2012 ecoDemonstrator is the first of several test platforms.  Boeing plans to have one per year, with each airplane testing a new set of technologies.  In 2013, a wide-bodied airplane will serve as the testbed.
The FAA CLEEN program is also participating in the 2013 program, providing cost-share funding for a ceramic matrix composite engine nozzle and its related flight test costs.
Contact:
Bret Jensen
Engineering Communications
Telephone: 1 425-266-3674
bret.r.jensen@boeing.com
Contact:
Andrea Huguely
American Airlines Communications
Telephone: 1 817-938-3999
Andrea.Huguely@aa.com
Photo and caption are available here: http://boeing.mediaroom.com

 

 

Boeing plans to deliver first S. Carolina-built 787 next week

ISLE OF PALMS, South Carolina (Reuters) - Boeing Co (BA) plans to deliver the first Dreamliner 787 made in South Carolina next week, a jet equipped with an engine model that recently experienced failures and has drawn federal scrutiny.
The North Charleston-built jet, for Air India (AIRID.UL), is "ticketed" and certified by the Federal Aviation Administration, which means it is ready for delivery, a Boeing official said on Wednesday. Its General Electric Co (GE) GEnx engines also have undergone special inspection, the official said, after the failures raised concerns.
Delivery from the second Boeing plant to make Dreamliners marks an important milestone for a jet that has been beset by assembly problems that caused huge cost overruns and delays.
Carbon composites that replaced aluminum on the jet reduced its weight and cut fuel consumption 20 percent compared with other planes its size on similar routes - savings prized by airline customers eager to tame soaring fuel bills. But the delays have damaged Boeing's credibility with customers, making the first delivery from the second line all the more meaningful. The engine problems could have caused further delays.
The special engine inspections came after recent incidents in two Boeing 787s in which the fan midshaft on General Electric GEnx-1B engines fractured or showed cracks. [ID:nL1E8KDHDF] On September 14, the National Transportation Safety Board recommended immediate safety inspections.
One of the incidents took place in July at Charleston International Airport when debris from the engine of a Boeing 787 sparked a grass fire near the runway where it was taxiing.
Earlier Wednesday, the FAA told Reuters it would stop short of issuing an emergency directive on the engines, sticking instead to more routine safety notices.
"We have done the checks on all our GE engines," Jack Jones, vice president and general manager of Boeing South Carolina, said Wednesday at an international trade conference near Charleston.
"We're clear and we're good," he told Reuters. "GE has done a great job of figuring out quickly what we have to do to ensure the integrity of the engine. We know that and we've implemented it."
Jones said the engine issue had not affected its schedule of delivering planes. "It obviously didn't stop deliveries. That is absolutely critical."
"Trust me, with GE, FAA, regulatory, Boeing, we would never have let that engine go on an airplane if we even slightly suspected it. So we know it's safe." He said the plane maker "is in probably one of the most highly regulated industries in the U.S."
The plane was finished and the planned delivery next week was timed to suit the customer, Jones said.
Two 787s built at Boeing's Everett, Washington, plant have already been delivered to Air India - one earlier this month and one on Tuesday, both from the South Carolina facility.
Boeing South Carolina, which is currently building a 787 widebody jet every 18 days at its North Charleston final assembly plant, has 6,100 employees including about 200 on the flight line, Jones said.
The production rate will rise to three-and-a-half airplanes a month "later," Jones said. The plant also builds 787 aft fuselages for Boeing's Puget Sound final assembly plant.
"Not just here in South Carolina but in Puget Sound, we're all really focused on production rate because the production rates in several of our plants are going up to unprecedented levels," he said.
Boeing shares fell 0.8 percent to close at $69.90 on the New York Stock Exchange on Wednesday.

reuters

Air India’s Dreamliner to fly initially on short, medium haul routes

New Delhi: With the first Boeing 787 Dreamliner for Air India landing here tomorrow, the airline plans to fly it on select domestic and international routes for the next two months before it flies long-haul.
The new 256-seater aircraft, made out of light-weight carbon composite materials, would be flown on routes like Delhi-Dubai on the international sector, Delhi-Kolkata, Delhi-Bangalore and Delhi-Amritsar, airline sources said.
The flights on these short and medium haul routes would be undertaken till October-November for the crew, who are already trained to fly the airplane, to practice more landings and take-offs, the sources said. So far, 65 pilots have been trained to fly this plane.

A Boeing 787 Dreamliner.

Then onwards, the Boeing 787s would be deployed on the new long-haul routes to Australia, Europe, Japan and the US. While the first aircraft arrives here tomorrow, the next two would fly out of Boeing facility in Charleston, South Carolina in the US in the next two weeks.
Air India, which has ordered 27 Dreamliners six years ago, plans to get a total of eight of them till March next year, including five by December. In 2013-14, the national carrier would get six more.
The aircraft would become the mainstay of Air India’s global operations as more numbers are inducted in its fleet and become the key focus of the airline’s turnaround plan. A major factor would be that it would lower flying costs as it consumes less fuel than other similar-sized airplanes.
“The B-787s will allow Air India to open new routes in a dynamic marketplace and provide the best in-flight experience for our passengers,” Air India CMD Rohit Nandan has said.
The mid-size plane has four variants, with the longest-range one capable of flying over 15,000 kms non-stop. The aircraft for Air India has been configured to accommodate 256 seats– 18 full-flat Business Class seats and 238 Economy Class seats.
It features a host of sophisticated technologies, including mood-lighting inside the cabin and large LCD display screens for in-flight entertainment.

Qatar Airways launches new in-flight dining concept

Four Michelin-starred chefs have devised dishes to be prepared for first and business class passengers

Doha: Qatar Airways on Monday officially launched in-flight menus created by four international celebrity chefs which began rollout in business and first class cabins this month.

Japan’s Nobu Matsuhisa, Lebanese TV star Ramzi Choueri, Britain’s Tom Aikens and India’s Vineet Bhatia were chosen by the airline to create dozens of dishes to be served on long- and short-haul routes, with option of choosing a chef-designed dish or a standard menu item. The dishes created by the team of chefs, who have accumulated nine Michelin stars between them, will be prepared by Qatar Airways’ catering and finished off in-flight by specially-trained cabin crew.

“In Qatar Airways, we always choose the best and that is why we have chosen these four chefs. We are always innovating ideas and products,” said Akbar Al Baker, Qatar Airways’ CEO.

Reacting to comparisons with on-board chefs who cook for passengers on other airlines, Al Baker said they are “just a gimmick”.

Emirates to launch A380 service to Singapore from December

Carrier to be first to serve Singapore route with an A380 and will increase capacity for route by 46%

Dubai: Starting December 1, Emirates will become the first carrier globally to serve the Singapore route with an Airbus A380 service.

“Emirates will boost its Dubai-Singapore route with the introduction of a permanent Airbus A380 service,” the carrier said in a statement on Tuesday, adding that the move comes on the back of “strong passenger demand” in both directions.

The new A380 service on the route will replace the current 354-seat Boeing 777-300ER aircraft, increasing the capacity by 46 per cent — to 1,659 seats daily, Emirates said.

The move, according to Emirates, further confirms Changi Airport’s status as Emirates’ “South East Asian hub” with over 1,100 seats daily connecting through to Brisbane, Melbourne and Colombo.

“Emirates is currently operating a two week ad-hoc Airbus A380 service between Dubai and Singapore which has received extremely positive responses from our passengers. In light of this we have decided to bring our flagship aircraft to Singapore on a permanent basis,” Salem Obaidullah, Emirates’ Senior Vice President, Commercial Operations Far East & Australasia, said in a statement.

He added that despite the current global economic uncertainty, “we remain committed to the Singapore market adding significant seat capacity — over 2,200 seats a week — which is set to foster tourism and trade between Singapore, Dubai and beyond”.

As the largest operator of the superjumbo, Emirates has 23 A380s in its fleet currently serving 19 destinations worldwide. Additional A380 destinations set to launch this year include Melbourne (from October 1) and both Singapore and Moscow (from December 1).

Emirates last year increased the frequency of flights on the Singapore-Dubai route with seven additional weekly flights, bringing the total number of flights out of Singapore to 28 — “the most number of direct Singapore-Dubai flights offered by any airline”, Emirates said.

Qatar Airways makes small net loss in the last financial year due to high oil prices

Airline carried 14.3 million passengers last financial year

Doha: Qatar Airways made a small loss last year because of high fuel costs. The airline posted a small net loss in the 2011/12 financial year that ended March 31, because of high oil prices, compared with a profit the year before, Qatar Airways chief executive Akbar Al Baker said on Monday. He didn’t give further details.

Qatar Airways expects to fly close to 17 million passengers in 2012/2013, up from 14.5 million the year before, he said.

New airport delayed

The opening of the first phase of Doha’s new airport, valued at $11 billion (Dh40.4 billion), has been delayed to around June next year, according to Al Baker, after a major contractor’s contract was terminated because they fell behind schedule.

The airport was originally due to open this December.

Al Baker declined to give the name of the new contractor, but said it would be responsible for construction of all 18 airport lounges. The planned airport is to be opened in three phases and completed by 2015, with eventual capacity to accommodate 50 million passengers.

He further said Qatar Airways will study last week’s decision by the Indian government to allow foreign airlines to invest in its struggling aviation sector.

Days ago, India lifted foreign ownership restrictions in its aviation sector, allowing overseas airlines to buy up to a 49 per cent stake in domestic carriers. Gulf airlines have long been touted as potential investors in India where a lack of international investment has stunted growth, in spite of huge growth opportunities.

Investment hurdle

Al Baker said bureaucracy remained a hurdle for investment there and more time was needed to study the details of the new law.

He further dismissed claims of alliance talks with British Airways or any other airline after reports earlier this month said BA parent International Airlines Group (IAG) had held discussions with Qatar about a partnership focused on Asia.

Al Baker further admitted it was embroiled in a spat with Boeing Co over the quality of cabins onboard its new 787 Dreamliner. He said the problem was “technical”, but there were also issues with the quality of the cabin in Boeing’s much-delayed lightweight fuel-efficient jet that promises passengers more comfort and space than other aircraft.

“Qatar Airways is very meticulous about our cabins and we will not take our cabin even if there is just a scratch,” Al Baker told reporters in Doha Monday.

Meanwhile, as a customer, Al Baker said he was in favour of a potential $45 billion merger between Europe’s EADS and BAE Systems to form the world’s biggest aerospace and defence company. The firms revealed last week that they were in talks on a merger.

“It will enhance their product, and it is good for an airline to have two major contributors to the Airbus aircraft getting together as one company. This would bring efficiency and reduce the cost of the product. Of course I’m in favour of it,” he said.

[CREDIT: Zawya Dow Jones/Reuters]

Emirates starts flights to Arbil

Iraqi city is the 11th destination launched by the airline this year

Arbil: Emirates Airlines on Monday commenced its new non-stop service between Dubai and Arbil city in Iraq, making it the 11th destination launched by the airline this year and the third gateway in Iraq after Baghdad and Basra.

Speaking to Gulf News, Andrew Jones, commercial development advisor for the Arbil International Airport, said that today marks an exciting day for the fast-growing airport.

“Emirates Airlines’ supreme focus on quality customer service helps us raise our own standards,” he said. Travelling aboard the inaugural flight, which follows the operational start of services on August 12, were Shaikh Majid Al Mualla, Emirates’ senior vice president, commercial operations, Gulf, Middle East & Iran, Hiran Perera, Emirates’ senior vice president, cargo planning and freighters, Abdullah Ebrahim Al Shehi, UAE Ambassador to Iraq, Esmat Seddiqi, Iraq’s Ambassador to the UAE, other government officials, prominent members of the business community and representatives from the media.

Arbil is said to be the world’s oldest continually inhabited settlement, established, some believe, almost 6,000 years ago. Aided in recent years by the construction of Arbil International Airport, the city of around 1.3 million people is fast becoming a flourishing business and tourist hub.

“Arbil’s free trade zone, similar to the Dubai model, is attracting foreign investment with opportunities across numerous sectors, including construction, property development, oil and gas,” Shaikh Majid said. “This is a good time for us to enter this market and once again Emirates will be a catalyst for trade and tourism.”

Attractions

One of Arbil’s most notable attractions is the mysterious Citadel or Qala’t Arbil, containing a collection of bazaars, an ancient bathhouse and a labyrinth of narrow alleyways. Other sites of interest include the Bradost Mountains, the Sami Abdul Rahaman Park and the Shar Garden Square with its cooling fountains, trendy cafes and charming teashops.

Emirates SkyCargo, the air freight division of Emirates, has been operating freighters out of Arbil since February 2011. With the demand for transporting machinery and parts for the oil and gas industry, the airline operates three weekly B777F freighter services, each with a capacity of 103 tonnes. Combined with the 13 tonnes of belly-hold capacity on each passenger flight, the overall weekly cargo capacity rises to over 400 tonnes.

Passengers in all cabin classes aboard the A340-300 can expect gourmet-chef prepared cuisine, served by multi-national cabin crew donning one of the world’s most iconic airline uniforms.

EK949 departs each Sunday, Monday, Wednesday and Thursday from Dubai International Airport at 06.45hrs, arriving in Arbil at 08.45 hrs. The return flight, EK950, departs Arbil at 10.10hrs and lands in Dubai at 13.50 hrs. Emirates currently operates a daily flight to Baghdad and four weekly flights to Basra.

Aside from Arbil, Emirates has launched flights to a host of exciting new destinations this year: Dublin, Rio de Janeiro, Buenos Aires, Dallas Fort Worth, Seattle, Lusaka, Harare, Ho Chi Minh City, Barcelona, Lisbon and Washington DC. Adelaide, Lyon, Phuket, Warsaw and Algiers will also join the Emirates’ network in the coming months.

Emirates celebrates 7th destination to US

Formal celebration held at historical National Building Museum

Washington: Emirates airline was the toast of the town as it rolled out the red carpet to diplomats, politicians and senior administrators in a special gala dinner to commemorate its inaugural Dubai to Washington flight on Wednesday.

As many as 285 guests spilled into the historical National Building Museum in the D.C. core for a formal celebration on Thursday evening to mark Emirates’ seventh new service destination in the United States adding to a growing list of cities such as Seattle, Dallas and New York.

Emirates served poached Maine lobster and beef tenderloin as a live orchestra performed live during dinner.

Emirates President and CEO Tim Clark told the US nation’s capital set in a gala address that “tomorrow arrived just before 9am yesterday morning when our American-made, GE-engine powered Boeing 777 aircraft landed on the Dulles tarmac”.

Along with the 266 passengers and 16 tonnes of cargo on the historic flight, Clark said that the flight also brings a “wealth of new possibilities…competition and a new level of service to this region”.

Clark said that Emirates now flies 56 flights per week from Dubai to the United States, a fast-growing market for the airline firm.

Roughly $3.8 billion (Dh13.95 billion) in new investments by Emirates into the US market in 2011 helps “produce several billion dollars of local economic benefits each year” in the United States, he said.

Noting that Emirates is the largest operator of Boeing 777s and Airbus A380 in the world, Clark pointed out that “last year, we signed an order for 50 Boeing 777s worth $18 billion at list price and a deal for American-made GE engines and maintenance worth more than $6 billion.

“It’s estimated that our recent aircraft and engine orders will support over 100,000 skilled American jobs in more than a dozen US states.”

On a lighter note, American pop star Lionel Ritchie gave a private performance at the gala noting that he often travels to Dubai and cherishes the friendships he has made in the UAE.

During his one-hour high-energy concert, Ritchie said he expected to see a lot of his Washington friends travelling soon to Dubai now that a direct non-stop route is available to the Middle East.

Emirates to launch Algeria route from March 2013

Algeria to mark Emirates’ 130th destination and its fifth point within North Africa

Dubai: Starting March 1, 2013, Emirates will operate daily nonstop flights to Algiers, expanding further its African network, the carrier said in a statement on Thursday.

“The launch of our third African route in just 13 months is a further demonstration of the huge potential of this fast-expanding economic region. As a key oil and gas supplier, Algeria has an abundance of natural resources and Emirates’ new service will help to grow trade routes and create new markets for imports and exports,” Shaikh Ahmad Bin Saeed Al Maktoum, President of Dubai Civil Aviation and Chairman and CEO of Emirates airline and Group, said in a statement.

Algeria will mark Emirates’ 130th destination and its fifth point within North Africa, following the resumption of services to Libya in November 2012.

Emirates’ Washington service to boost trade

Exports for the first six months of 2012 up 60 per cent more than the same period last year

Washington: The Wednesday’s launch of a new non-stop daily Emirates flight service from Dubai to Washington, DC will bring hundreds of millions of dollars into the regional economy as well create jobs, say business and government officials in the US capital.

It will also open up new business opportunities for the UAE which consumed more than $16 billion (Dh58.75 billion) in American exports in 2011, a number that is expected to jump considerably again by year’s end given that exports for the first six months of 2012 are up 60 per cent more than the same period last year.

Jack Potter, President and CEO of Metropolitan Washington Airports Authority, considers the airline’s new route — its seventh to the US — to be good for business and “another milestone for the airport authority at Dulles”.

Francisco Sanchez, Under Secretary of Commerce International Trade, said, the new flight service would “strengthen economic ties between the United States and the UAE”.

Emirates commitment to Washington DC will also help create new jobs, Sanchez said because it will help support Boeing exports abroad, namely the UAE.

“Emirates has the largest Boeing 777 fleet in the world,” Sanchez said, referring to its 116 Boeing aircraft of different types now in operation with a further 83 on order.

Robert Buchanan, chairman of 2030 Group which helped establish the new flight service, said, research shows that Washington businesses demand 50 per cent more air services than the national US average.

“This new service will add to that,” Buchanan said.

He pointed out that economic models have determined that in the first year of a new flight service being established in a major metropolitan city, the influx of visitors can bring anywhere from $200 million to $300 million.

Yousef Al Otaiba, UAE Ambassador to the United States, said, he is pleased with the new service not only because he can now take a direct flight home, but also because of the huge economic potential the new link stands to benefit both the US and the UAE.

As both countries engaged this week in an economic policy dialogue, Al Otaiba said the new Emirates flight “paves the way for prosperity. This means more business, more exports, more visits”.

Emirates President, Tim Clark, said at a press conference at Dulles International Airport that opening the new route will bring the two countries closer.

“Landing here is a landmark in the airport’s history,” he said, referring to the 50th anniversary of the airport opening by President John F. Kennedy.

Dulles records more than seven million passengers a year, he said.

Orhan Abbas, senior vice president Commercial Operations in the Americas, told Gulf News that Emirates highly values the American market.

The new service, he said, “shows our commitment to the trade relations between our two countries”.

Emirates has carried a total of 5.8 million passengers on its flights from Dubai to the US since 2004, according to a WAM report. The carrier has also transported 300,000 tons of cargo since 2004, which contributed to facilitating the flow of trade from the US, opening new markets in the Middle East and Indian Subcontinent for American exporters. The report added that Emirates currently has a shipping capacity of 790 tons of cargo per week to the US.

BAE, EADS talks may spur mergers

Boeing CEO says company not threatened by merger

London/Washington : In the biggest shake-up in Europe’s aerospace and defence sector in more than a decade, Britain’s BAE Systems and Airbus-owner EADS

said they are in advanced talks to create an industry giant that would overtake rival Boeing in sales and contend with defence cutbacks in Europe and the United States.

The proposed deal, the biggest since a 2000 pan-European merger created EADS under joint French and German control, could kick-start a wave of consolidation in the sector, as companies vie for shrinking defence budgets.

Linda Hudson, chief executive of the US arm of BAE Systems, said the deal made sense given the downturn in US and European defence spending, but would also insulate the combined company against the inevitable cycles of the aerospace sector.

“It’s a win-win proposition for both companies in this environment,” Hudson told Reuters after a speech at Johns Hopkins University in Washington on Wednesday evening.

Boeing CEO Jim McNerney said the Chicago-based aerospace leader was not threatened by such a merger, which he predicted would mark the start of global consolidation in the industry.

“I don’t see this as something that is going to threaten us fundamentally,” McNerney told Reuters after a speech to the Council on Foreign Relations in Washington.

Executives at Lockheed Martin Corp declined comment.

An EADS-BAE merger would create an entity with more balanced commercial and military operations, a model that Boeing has followed for some time, McNerney added.

While the complex deal faces obstacles, US government officials were not likely to block it, according to multiple sources close to the matter who were not authorised to speak publicly.

These sources said the companies have already held direct discussions with US officials, though no formal proposal has been put forward yet.

 

Anti-trust concerns in the US would be minimal, given the modest amount of US military revenue generated by EADS and BAE’s trusted role on some of the most sensitive US military and intelligence programmes.

“I can’t see anything that’s going to be problematic,” said Darren Bush, a veteran of the Justice Department who teaches law at the University of Houston Law Centre. “All the US-based companies will grouse but from an anti-trust perspective I’m not sure what they can do about it.

The deal would give BAE shareholders 40 per cent and EADS investors 60 per cent of a combined group with a dual stock listing. It likely would lower costs, and the group’s products would range from Airbus commercial jets and military transport planes to the BAE-made Eurofighter Typhoon jets and its Astute class nuclear-powered submarines.

“In a difficult spending environment it makes sense,” said Neal Dihora, an analyst at independent researcher Morningstar in Chicago. “EADS has been saying they would like to have a better balance between commercial and defence.”

It also would simplify a complicated and politically fraught ownership structure for EADS, while reducing its reliance on the cyclical civil aircraft business. BAE, largely a defence company, would obtain breadth in civil aircraft.

Geographically, BAE’s strength in the United States, Britain and Saudi Arabia would complement EADS’ operations in Europe.

Sources familiar with the discussions said talks began in earnest in June, and one source close to EADS said they were the brainchild of Marwan Lahoud, who is in charge of strategy and marketing at EADS.

In March, analysts and sources close to EADS said the cash-rich company was exploring acquisitions and large-scale alliances or mergers to help it achieve its long-standing goal of quintupling revenues in the United States, the world’s biggest arms market.

At the time, Sean O’Keefe, the chief executive of EADS North America, told Reuters the company was looking at “the full range” of options, including a significant transatlantic tie-up.


Regulatory hurdles


Despite its advantages, the deal faces numerous regulatory, security and cultural hurdles and its fate is far from certain.

French Finance Minister Pierre Moscovici issued a terse statement saying the French state would decide as a shareholder when the time comes and according to EADS governance rules.

“No one is counting their chickens just yet as it is a very complex transaction with lots of possible pitfalls, especially government related ones,” said a British defence source close to the talks.

The two companies have a long history of collaboration and are partners in a number of projects, including the Eurofighter and the European MBDA missile joint venture.

A deal would also bring BAE back into having a direct interest in Airbus and the France-based planemaker’s British plants, having sold its 20 per cent stake in 2006.

The merger would mark a turning point for BAE, 13 years after it was accused of turning its back on Europe in choosing to concentrate on building its US business with the takeover of GEC Marconi in preference to merging with Germany’s main aerospace and defence group, Daimler Aerospace (DASA).

Spurned by BAE, DASA decided in the same year, 1999, to instead go ahead and create EADS through a merger with French group Aerospatiale and Spain’s Construcciones Aeronautica (CASA).

The companies propose issuing special shares in BAE and EADS to each of the French, German and British governments to replace the existing shares held by the British government in BAE and the stakeholder deal in EADS.

If the deal goes through, EADS would also pay £200 million (Dh1.18 billionto its shareholders prior to completion to reflect the fact that the two groups have traditionally had different dividend policies.

BAE shares jumped 10.6 per cent to 353 pence, giving it a market value of nearly $19 billion (Dh112.25 million), while EADS fell 5.6 per cent in Paris to give it a market value of $29.8 billion (Dh176.06 million), reflecting the 60-40 split.

One large British institutional shareholder said it was unclear “how appropriate the 60-40 split is”. But he added: “The businesses being put together probably makes sense from a cost-cutting point of view, particularly in a time when constrained government budgets will preclude top line growth in defence spending.”

Political ties

 

A tie-up could also allow EADS to break free from its shareholder agreement, which dictates a Franco-German balance of power at the group.

Tensions between the two sides have been simmering this year, notably over plans to refocus more of the group’s activities near the Airbus headquarters in Toulouse.

And a move by the German carmaker Daimler to sell its stake in EADS has exacerbated the issue. Plans by the German government to buy the stake, for a lack of other investors, have reportedly drawn ire from the French side and from EADS management, which wanted less state involvement.

If the tie-up goes ahead, the shareholder pact as it stands would likely become obsolete.

For political and national security reasons both BAE and EADS, which respectively contribute to British and French nuclear deterrent capabilities, will be preserved as separate structures and a new umbrella group would be created, likely to be run by representatives of EADS.

EADS seeks BAE merger to build European Boeing counterweight

Washington: European Aeronautic, Defence & Space Co and BAE Systems Plc are reviving a decade-old plan to build an equal to Boeing Co that would balance civil and defence operations in an era of shrinking military budgets.

EADS stock slumped as much as 10 per cent in Paris, while BAE declined as much as 9.2 per cent in London on concern that a combined company will struggle to achieve savings and penetrate the US defence market. EADS, the parent of Airbus SAS, would control 60 per cent of the new entity, with London-based BAE owning the rest, the companies said on Thursday.

“This will be a very complex organisation and there is a risk of synergies coming only much later,” said Yan Derocles, an analyst at Oddo Securities in Paris. “Airbus is big growth story and will be heavily diluted in the new company. And there’s also the problem of significant constraints on the defence business in the US”

The new company would have a combined market value of about $45 billion (Dh165 billion), sales nudging $100 billion and 220,000 employees, with assets spanning civil jets, Eurofighter warplanes and nuclear submarines. A merger would revive plans for a single European aerospace business that were abandoned more than a decade ago when the formation of EADS and BAE split the industry in the region along civil and defence lines.

Significant benefits

BAE slumped as much as 33.6 pence to 330 pence, reversing an 11 percent surge on Thursday after the companies confirmed that they are in talks. Thursday’s drop, which stood at 5 per cent as of 8.41am in London, clipped BAE’s market value to about £11.3 billion ($18.2 billion). EADS dropped as much as 2.89 euros to 25.11 euros in Paris, valuing it at 21 billion euros ($27 billion).

The deal would add Toulouse, France-based EADS’s revenue of about 49 billion euros last year to BAE’s £17.7 billion. That compares with $68.7 billion at Chicago-based Boeing and $46.5 billion at Bethesda, Maryland-based Lockheed Martin Corp, the world’s biggest defence company.

“BAE Systems and EADS believe that the potential combination of their two businesses offers the prospect of significant benefits for customers and shareholders,” the companies said in a statement after markets closed.

EADS Chief Executive Officer Tom Enders, who took over in June, has been revamping senior management positions and switched the leader of the Cassidian defence business this month. Enders, a German reserve army officer, previously ran the Airbus business, which is EADS’ biggest sales contributor and the world’s largest maker of civil aircraft ahead of Boeing.

Airbus dependence

The companies, who cooperate on the Eurofighter warplane, first explored scenarios for a combination in early June, followed by the first outlines of a combination a month later in Munich that included the 60-40 split, a person familiar with the talks said. Besides Enders, EADS chief strategist Marwan Lahoud has been a driving force behind a deal, said the person, who asked to remain anonymous because the information isn’t public.

The companies didn’t say where the combined group would be based, or who would lead it. EADS is moving its headquarters from Paris and Munich to Toulouse in order to be on the same location as Airbus. Besides Airbus, EADS also has helicopter, space and defence operations.

“EADS has been seeking to reduce its dependence on Airbus and achieve a better balance between commercial aerospace and defence,” said Zafar Khan, an analyst at Societe Generale in London. “A combination with BAE would certainly achieve that.”

European schism

The British government’s Department of Business, Innovation and Skills said it was aware of the merger proposal and that while any business benefits are “a matter for the companies,” it will ensure that the public interest is protected in any deal.

BAE was created in 1999 when British Aerospace Plc, which had been exploring a merger with Daimler’s Dasa unit in Germany, opted instead for an all-UK combination with the Marconi Electronic Systems unit of GEC in 1999.

That prompted Dasa first to acquire Construcciones Aeronauticas SA of Spain and then to combine with France’s Aerospatiale Matra SA to form EADS. The sequence of events gave EADS control of 80 per cent of airliner manufacturer Airbus, which BAE exited in 2006, while allowing the UK company to dominate the European defence sector.

Morgan Stanley, Goldman Sachs Group and Gleacher Shacklock LLP are advising BAE, with Freshfields Bruckhaus Deringer LP as legal counsel. EADS is being advised by Evercore Partners, Perella Weinberg Partners LP, Lazard Ltd and BNP Paribas SA, and Clifford Chance LLP is acting as counsel, according to two people familiar with the matter.

Credit Suisse Group AG will probably be asked to compile a fairness opinion, said one of the people, who asked to remain anonymous because the advisers have not been publicly announced.

Emirates takes off to Washington, DC

Route is airline’s 12th to join its international network in 2012 and its seventh US destination

Dubai: Washington, DC became Emirates’ seventh US destination on Wednesday as the carrier launched its non-stop daily service to the destination from its Dubai hub.

The Washington, DC route is also the airline’s 12th to join its international network in 2012, Emirates said in a statement on Wednesday.

Gradually strengthening its hold over the American market, Emirates already serves key US gateways such as to Dallas/Fort Worth (DFW) — launched in February 2012, followed by Seattle-Tacoma (SEA) launch in March. Other American routes include New York, Los Angeles, Houston and San Francisco.

Besides providing further impetus to the growing trade relationship between the UAE and the US, the new route is expected to boost exports and imports between the two countries while also increasing opportunities for business, industry and tourism.

According to an earlier Emirates statement, trade between the two countries reached a record high of $18.34 billion (Dh37.3 billion) in 2011, marking an increase of over 40 per cent from 2010.

Itinerary

Connecting the American capital by a Boeing 777-300 ER aircraft, Emirates EK 231 will leave Dubai daily at 2.20am and arrive at Washington Dulles International Airport (IAD) at 8.50am, while EK 232 will depart Dulles at 10.55am arriving in Dubai at 8.00am the following day, Emirates said.

The delegation on board Wednesday’s inaugural flight from Dubai included Tim Clark, President of Emirates airline; Michael Corbin, US Ambassador to the UAE; Francisco Sanchez, Under Secretary of Commerce for International Trade; Orhan Abbas, airline’s Senior Vice President Commercial Operations, The Americas; and Pradeep Kumar, Senior Vice President, Revenue Optimisation and Systems, Emirates SkyCargo.

Amongst other Gulf carriers, Etihad Airways is expected to launch services to Washington, DC in March 31, 2012, subject to regulatory approval, while Qatar Airways already operates scheduled services to the destination.

Etihad Airways chief visits Boeing plant and prepares to take delivery of more 777s, awaits arrival of 787

First 787 arrives in the last quarter of 2014

Abu Dhabi: As Etihad Airways counts down to Boeing 787 Dreamliners, the airline’s President and CEO, James Hogan, along with airberlin [owned 30 per cent by Etihad] executives, on Wednesday visited Boeing’s Everett production facility, the carrier prepares to take delivery of more 777s and awaits the arrival of the 787 Dreamliner. Etihad has 41 Boeing 787-9 Dreamliners on order, valued at $9.3 billion (Dh34.1 billion), the first of which arrives in the last quarter of 2014. The carrier has options and purchase rights for an additional 25 aircraft.

White elephants land in Berlin

Boeing’s last deal for its 747-8 came in July 2011

Berlin: Berlin, building an airport that is underappreciated and over budget, is hosting two aircraft to match.

Airbus SAS and Boeing Co. put their flagship jumbo jets on display this week at the Berlin air show adjacent to the yet-to- be opened airfield. While the gleaming white aircraft are crowd pleasers at any event, they’re getting less affection from the audience that matters most: airlines.

Airbus has won orders for just four A380 superjumbos in 2012, and sales chief John Leahy said on Monday he’s running out of time to get to his target of 30. Boeing’s last deal for its 747-8 came in July 2011, raising the prospect that this year would be the first shutout since the plane’s initial purchase in 1966 heralded the age of intercontinental travel.

“The theory was that the combination of rapid growth and airport constraints would force carriers to up-gauge and go to very large aircraft,” said Robert Mann, a former American Airlines fleet manager who is now an industry consultant in Port Washington, New York. “But for any given airline it becomes a daunting prospect to fill 500 seats with every departure.”

Boeing and Airbus are the only commercial planemakers offering four-engine jets. The 747-8 is the world’s longest airliner, measuring 250 feet (76 metres) from nose to tail, while the A380 boasts a full-length double-decker cabin.

The two manufacturers, which are presenting their biggest planes at the same venue for the first time in more than a year, remain confident they will overcome the lull, and that the success of aircraft programs is measured in decades.


Not over


“One or two or three years in which the demand for very large aircraft is not so strong does not mean you can prematurely call the end of such aircraft,” Tom Enders, chief executive officer of Airbus parent European Aeronautic, Defence & Space Co., said in an interview in Berlin.

Emirates flew in the A380 in Berlin, while the 747-8 is operated by Deutsche Lufthansa AG, which accounts for 20 of the 36 orders for the variant of that plane. Europe’s slump, cooling growth in Asia and a slowdown in global air-traffic gains are keeping most airlines at arm’s length from jumbo jets.

Virgin Atlantic Airways Ltd. Chairman Richard Branson said in July that he would again delay his six orders for A380s because of the adverse environment. Turkish Airlines, a long-running potential buyer for jumbo jets as it beefs up its network, has pared its ambition to six planes from 15.


List prices


The A380 has a list price of $390 million and typically seats about 525 passengers in a three-class configuration. The 747-8 lists for $351 million and seats about 467 travelers in three classes.

“What is happening isn’t so much demand has changed but airlines are thinking more carefully about spending that level of money,” said Rupinder Vig, a London-based analyst at Morgan Stanley.

While the jumbos are popular on routes they serve, Boeing and Toulouse, France-based Airbus must still win over airlines whose passengers prefer flexibility when they travel. That drives demand for more, smaller jets than a single large one.

Performance advances on twin-engine wide-bodies such as the Boeing 777 are also eroding the market for very large aircraft. At 7,725 nautical miles (14,305 kilometers), a 777-200ER can fly almost as far as the 8,000-nautical-mile range of the 747-8, according to specifications on Boeing’s website.


Bigger planes


Leahy said demand for the largest types will be supported by the doubling of megacities in the next two decades that generate 10,000 long-haul passengers daily. Those cities will represent more than 90 percent of long-haul traffic, requiring bigger planes, he said.

Jim Proulx, a Boeing spokesman, said the Chicago-based planemaker has identified prospective buyers, and “we can expect to see some activity” in 2012. Airlines that need to fly more than 400 passengers or heavy cargo loads have to buy the biggest jets, he said.

“There’s enough of a market there that we can sell a lot of airplanes for a lot of years,” Proulx said in interview from Everett, Washington, where Boeing builds 747s.

The A380 was designed to dethrone the 747 as the jet with the greatest range and capacity. Leahy scored a victory two years ago at the last Berlin expo when Emirates topped up its A380 order book and bought an additional 32. The Middle Eastern carrier now has 90 A380s on order, using its Dubai base as a hub to connect any two points on the globe with one stop.


Past successes


Emirates showed off the A380 in Berlin as it tries to pry open a market where local regulations make it difficult win access. Berlin is building the new airport next to the old airfield that serves as a low-cost hub, and has extended the life of the Tegel aerodrome that’s popular with travelers who can slip directly from a taxi into their departure gate.

Following construction delays and protests about excess noise, the city was forced to delay the opening by more than a year to October 2013. Critics say the airport will struggle to siphon traffic from the established Frankfurt and Munich hubs.

China and India, the world’s two most populous countries, will be pivotal markets to make or break the future of superjumbos.

China Southern Airlines Co. is the only Chinese carrier with an order so far, for five A380s. Air China Ltd. committed to five 747-8s, without signing a deal yet. In India, Kingfisher Airlines Ltd. is the only customer, also with five A380s.


‘Huge market’


“China is not yet there, but China will be a huge market for the A380,” Airbus CEO Fabrice Bregier said in Berlin. “It will take some time.”

Both manufacturers may struggle to ever recoup their investment to develop the A380 and 747-8. Airbus remains far off break even after the program ran 6 billion euros over budget and the aircraft maker has scrapped the goal of boosting output to four A380s each month. Costs have piled up after cracks emerged in the A380’s wings, which Airbus must now fix.

Barclays Plc estimates that by the time the 747-8 program breaks even on a cash basis, Boeing will have poured in more than $8 billion after delays. The planemaker, which doesn’t disclose detailed investment costs, took $2.04 billion in charges as postponements pushed back the jet’s debut by two years before the cargo version entered service in 2011.

Slow 747-8 sales centre on weakness in global air-cargo shipments, while the A380 order drought stems from Airbus’s manufacturing and service issues, said Carter Copeland, a Barclays analyst in New York. Four-engine planes still serve an industry niche, he said.

“I don’t think the market is non-existent,” Copeland said. “Two or three years will give us a lot more data to judge its health.”

Airbus says AirAsia will be first operator of low-fuel model

The sharklets will also be used on Airbus’s A320neo model, which is due to hit the market in late 2015

Berlin: Malaysian no-frills airline AirAsia will be the first operator of Airbus A320 planes equipped with “sharklets”, a more fuel efficient variant of the European group’s best performing model.

“AirAsia, the world’s largest customer of the A320 family, will also become the first operator of the A320 with sharklets,” a wingtip device intended to reduce fuel burn, Airbus chief commercial officer John Leahy told reporters at the ILA Airshow here.

“This airplane will be delivered in December of this year.”

AirAsia said it was “proud” to be the first operator of the sharklet-equipped model, which is touted to reduce fuel consumption by four per cent as airlines worldwide seek to drive down their costs.

The sharklets will also be used on Airbus’s A320neo model, which is due to hit the market in late 2015 and use 15 per cent less fuel than the current version.

The neo series is going head to head with US rival Boeing’s upcoming 737 MAX planes in the battle for short-haul aircraft orders.

AirAsia’s customer experience and technology manager, Zaman Ahmad, said that the airline had ordered a total 375 Airbus planes to replace old aircraft and support its growth including 200 A320neo planes.

AirAsia said it is negotiating the purchase of another 100 neo aircraft but no further announcements were expected at the ILA show.

Suspension of EU emission plan sought

Britain’s Fallon warns of clear and present danger

Berlin: Aerospace officials of the European countries where Airbus makes its planes will push for a suspension of the European Union’s Emission Trading System (ETS) for airlines to avert retaliation from China, officials said on Tuesday.

“Airbus has left us with no doubt that the threat of retaliatory action is a clear and present danger to its order list,” Michael Fallon, new business minister in Britain, said at the ILA Berlin Air Show on Tuesday.

There is harsh opposition to the ETS from European air travel companies and countries outside the EU such as the United States, Australia and Brazil that have said they want a global agreement to curb carbon emissions rather than a European law that extends to non-EU companies.

China has threatened retaliation — including impounding European aircraft — if the European Union punishes Chinese airlines for not complying with its emissions trading scheme (ETS), intended to curb pollution.

The dispute between China and the EU froze deals worth up to $14 billion (Dh51.4 billion), though China signed an agreement with Germany for 50 Airbus planes worth over $4 billion during Chancellor Angela Merkel’s visit to Beijing last month.

If the dispute is not resolved, Airbus will have to cut its production target for the A330 “pretty soon”, Airbus chief executive Fabrice Bregier said late on Monday.

“We are very much aware that the clock is ticking. We have very little time left,” Fallon said, referring to airlines’ first EU deadline in April 2013 to pay for their emissions.

He was speaking at a joint news conference of the four government officials from Britain, Germany, Spain and France — the so-called Airbus ministers — who usually meet at air shows to discuss matters related to Airbus.

Chris Davies, the Liberal Democrat environment spokesman in the European Parliament, described the UK minister’s remarks as “a stab in the back” for EU negotiators.

“Europe’s negotiating strength depends on our unity and our determination. Nothing will be achieved by showing weakness in the way this poorly informed junior minister would like,” he told Reuters.

Discrimination

The airline industry has said the ETS distorts competition, forcing European carriers to pay more simply because of the fact they are based in the EU.

“We feel we are being discriminated against,” Germany’s aerospace policy coordinator Peter Hintze said. “We demand a global solution from an industrial policy point of view because we could otherwise put ourselves at a disadvantage in major markets.”

Hintze, Fallon and their French and Spanish counterparts will urge their national governments to push for a suspension of the EU’s ETS until the next general meeting of global trade body ICAO — the United Nations’ International Civil Aviation Organisation — in September 2013.

Hintze said no decision had been made yet on what a global agreement on emissions trading could look like.

“The goal must be that the contribution of aviation is not just limited to one continent but is agreed worldwide,” he said.

Airbus sales chief John Leahy suggested at a separate news conference on Tuesday that one possible solution could be that all airlines around the world pay a tax to ICAO for carbon emissions, regardless of where they are based.

Emirates to fly twice daily to Jordan

New schedule to start on October 1

Dubai: Emirates will fly double daily to Jordan from October 1, providing greater access to one of the most popular tourism destinations in the Middle East. Amman is one of Emirates’ longest established routes. The airline has been flying to the Jordanian capital since 1986, the year after Emirates was launched.

On September 1 last year, Emirates marked 25 years of flying to Jordan, a service that began with just three flights per week. The current 13 weekly flights to Amman will increase to 14 per week — an extra flight on Friday — from October 1. The 14th weekly flight, EK901, will leave Dubai at 07.25hrs each Friday and arrive in Amman at 09.20hrs — a journey of just under three hours.

Air Arabia’s passenger traffic grows

Seat load factor stood at 83 per cent

Sharjah: Air Arabia on Tuesday announced that it welcomed 379,092 passengers in August 2012, an increase of over 22 per cent compared to the corresponding month in 2011. The airline also reported that the average seat load factor - passengers as a percentage of total seats available – for the month stood at 83 per cent, registering an increase of three per cent over the figure for August 2011.

In the second quarter of this year, the low-cost pioneer carried 1.3 million passengers, an increase of over 15 per cent compared to the corresponding period in 2011. The airline attributes this impressive growth to its ever growing customer demand for its value-for-money services.

Air Arabia recently announced the launch of service to Odessa in Ukraine, marking the airline’s 76th destination worldwide. In addition, the airline also increased frequency to New Delhi to double daily from its Sharjah hub. 

Lion Air challenges AirAsia with LCC

Likely to have about 100 planes within a decade

Kuala Lumpur: PT Lion Mentari Airlines will set up a low-cost carrier in Malaysia, challenging AirAsia Bhd, the region’s biggest discounter, in its home market.

Malindo Airways will begin flights in May and may have about 100 planes within a decade, Ahmad Johan, president of National Aerospace & Defence Industries Sdn, told reporters in Kuala Lumpur on Tuesday. National Aerospace will own 51 per cent of the new airline, with Indonesia-based Lion Air holding the rest.

The carrier pits Boeing Co.’s record customer against the biggest buyer of Airbus SAS narrow-body planes as Lion Air and AirAsia compete for budget travellers in Asia. The region’s total air-travel may grow 6.4 per cent a year through 2031 because of economic growth, according to Boeing.

“We are looking at selling tickets at AirAsia’s pricing or may be lower,” Lion Air President Director Rusdi Kirana said today. Malindo Air plans to fly to countries including Thailand, China, India, Japan and Australia, besides offering services within Indonesia and Malaysia, he said.

Lion Air signed a record order for 230 Boeing 737s in February, which was worth $22.4 billion at list prices. The deal, which also included 150 options, was Boeing’s biggest in terms of dollar value and plane numbers. The carrier flies to more than 36 destinations within Indonesia and overseas, according to its website.

The airline has forecast passenger growth rates of 15 per cent a year as it adds more planes. Its fleet may expand to 470 planes by 2025, Kirana said in November. The carrier has 100 planes now. Malindo Air will draw its fleet from planes Lion Air Group has ordered, including the 787s for possible Europe flights, Kirana said on Tuesday.

AirAsia has grown into Asia’s biggest discount airline since begin take over by Tony Fernandes and partners in 2001. The carrier, based in Sepang, Malaysia, has subsequently set up ventures in the Philippines, Japan, Thailand and Indonesia.

The airline last year ordered 200 Airbus A320neo aircraft valued at $18 billion in the biggest order for the French planemaker. It may sign a deal for as many as 100 more A320s at the Berlin Air Show, which starts today, Chief Executive Officer Aireen Omar said last month.

Jetstar, the budget arm of Qantas Airways Ltd, is also building up a network of low-cost carriers across Asia. The airline already has ventures in Singapore, Vietnam and Japan, and it’s setting up another in Hong Kong.

Batik Air, Lion Air’s long-haul carrier, will begin operations in March with six Boeing 737s and five 787s, the company said today.

Berlin airshow to give glimpse of delayed airport

About 270 aircraft to be on display

Berlin: The ILA Berlin Air Show this week will bring some long-awaited action to the city’s new airport, a source of embarrassment to Germany’s capital following multiple delays to its opening.

A spotless new runway, so far unused for commercial flights, will finally feel the burn of rubber as flying displays show off aircraft including the Eurofighter jet and Eurocopter’s new high-speed helicopter X3.

Over 1,200 exhibitors are expected to attend the world’s oldest air and space trade fair, half of them from outside Germany. Attendees include European planemaker Airbus and US rival Boeing, whose civil aircraft arm is returning to Berlin’s air show after a hiatus of more than 10 years.

Less touted as a deal-making event than the Farnborough or Paris industry showcases, ILA will nonetheless draw a prominent crowd with money to spend.

AirAsia, Asia’s largest low-cost carrier, is putting the finishing touches to a deal to buy up to 100 Airbus jets, sources close to the matter said on Friday, although they added an announcement was unlikely in Berlin.

But as much as the deals, the chatter around the chalets is likely to centre on fears the faltering global economy is finally catching up with the civil aircraft industry.

Airbus and Boeing, which battle for the bulk of a jet market estimated at $100 billion a year, have long trumpeted their resilience, arguing airlines need to modernise their fleets to cope with high fuel costs and that growth in Asia and the Middle East can offset weakness in the United States and Europe.

Last week, Airbus raised its 20-year forecast for deliveries, citing strong Asia-Pacific markets.

But the Farnborough Air Show in July, the quietest for years, suggested the good times might be coming to an end as the euro zone debt crisis drags on, banks become wary of financing long-term, costly aircraft orders and Chinese growth slows.

That has turned the spotlight on Airbus and Boeing’s ability to deliver on a record backlog of orders, and on whether any of these might be delayed or cancelled.

“If you look at ... some of the names of ordering companies, you have to wonder whether they have the financing to pay for all these planes. It just doesn’t seem credible, and I believe that some of that order backlog will most certainly drop out,” KPMG aerospace expert James Stamp told Reuters.

Tom Enders, the chief executive of Airbus’s parent company EADS, told journalists on Monday that airlines in Europe were under “immense pressure,” though he remained upbeat about demand from Asia and the Middle East.

Boeing and Airbus have orders for over 8,000 aircraft, enough to keep them busy for the next six years even without any new deals, and analysts predict the industry must increase annual output volume by 45 percent by 2015 - a huge challenge.

PAST AND FUTURE

The newly-built ILA site is adjacent to Berlin-Brandenburg Airport, which was originally due to open in 2011 but the opening has been delayed three times already.

The scheduled opening for June 3 was scrapped at short notice earlier this year due to problems with fire safety systems, and officials said on Friday they were further pushing back the opening to October 2013.

More than 20 years since German reunification, the capital is still making do with two small airports, Tegel and Schoenefeld, that date back to the Cold War era.

“At least we will have the (new) south runway all to ourselves,” EADS’s Enders said.

About 270 aircraft will be on display at ILA, from an historic Messerschmitt Bf 109 to the world’s two largest passenger aircraft, Airbus’s A380 and Boeing’s 747-8.

All eyes will also be on whether EADS’s A400M military transport plane will take part in the flying displays after engine problems forced it to sit out the popular stunts at Farnborough in July for a second year running.

Emirates, which has been lobbying unsuccessfully since 2004 for landing rights in Berlin, said on Sunday it will bring one of its 23 A380 mammoth jets to the show, which runs from September 11 to 16.

The airline said the delays and cost overruns at the new airport only strengthen its case for being allowed to fly to Berlin. “The new airport needs to increase revenue to balance some unplanned costs,” Emirates passenger sales boss Thierry Antinori told Reuters. “And we want to spend money.”

Airbus seeks technical experts

Planemaker concerned about finding engineers with experience in niche areas of expertise

Toulouse: Airbus SAS, which plans to hire 4,000 people this year, said it’s now more concerned about attracting the technical experts to design next-generation aircraft than losing talent to higher-paid banking jobs.

“What we miss is people who have enough knowledge of new technologies in order to help us integrate them on board aircraft,” Charles Champion, Airbus’ executive vice president for engineering, said in an interview. “We are not in a critical mode today, but if we do not engage the next generation of students, we might have a problem.”

That’s a change in emphasis for the Toulouse-based company, the world’s biggest maker of passenger jets. For years, management at Airbus and its parent European Aeronautic, Defence & Space Co. (EADS) have been concerned about engineering graduates abandoning aerospace careers in favor of higher paying jobs in the financial services industry.

Airbus’ most immediate concern is finding engineers with several years of experience in niche areas of expertise such as composites, Champion said. Composites represent an increasing share of aircraft structures, with more than 50 per cent of Airbus’ newest aircraft, the A350 twin-widebody, made of plastic.

Airbus is keeping up its push to interest students in aerospace, even though there are fewer engineers heading into finance, Champion said at an event outlining a concept for future air travel.

Recruitment drive

Airbus, with assembly lines in Toulouse, Hamburg and Tianjin, China, has been recruiting thousands of engineers and other employees in recent years as it ramps up production of single-aisle and widebody planes. Last year, Airbus hired 4,500 people. Half of this year’s intake had been achieved by mid-July, according to human resources director Thierry Baril.

In the US alone, where a new assembly line will begin delivering planes from 2016, Airbus and EADS expect to hire 1,000 people in the next five years. About a third of those will be destined for the planemaker.

Another area of focus is finding skilled electrical engineers. Airbus and Boeing are moving to aircraft using more sophisticated information technology and relying increasingly on electrically driven subsystems to save weight and reduce fuel burn.

“For more electric aircraft, we need to attract very good electrical engineers that would rather go to other types of industries rather than aviation,” Champion said. “We want to attract the talent on technologies that we will need in the future for the next generation of aircraft.”

First domestic flight takes off from Abu Dhabi airport

Move follows recent announcement by RAK Airways to launch to launch its first domestic flight to Abu Dhabi

Abu Dhabi: Rotana Jet on Wednesday took off with the UAE’s first domestic flight from Abu Dhabi International Airport to Fujairah International Airport, according to airport body, Abu Dhabi Airports Company (ADAC).

With plans to expand its domestic route network, the domestic carrier will start operating double daily flights to Al Ain starting September 26 with flights to Sharjah to follow soon after. Besides, the Abu Dhabi-Fujairah route would be served with a frequency of two flights a day.

The new routes will be operated by 50-seater Embraer ERJ145 aircraft, Rotan Jet said. The carrier also said recently that it expects to start services to Ras Al Khaimah and Ruwais soon, without divulging a specific time period.

“The inaugural flight follows last week’s announcement about the launch of twice-a-day services to Fujairah, Al Ain and Sharjah from Abu Dhabi International Airport, in an initiative by Rotana Jet to extend its domestic route network,” ADAC said in a statement.

The move closely follows last month’s announcement by RAK Airways to launch its first domestic flight to Abu Dhabi. The Ras Al Khaimah-based carrier is expected to launch the service from October 3, in an attempt to strengthen its foothold in the regional aviation market.

Rotana Jet currently has a fleet of two aircraft that is expected to grow to four by the end of this year and to eight by next year.

Meanwhile, according to industry experts, demand for domestic flights in the UAE is unlikely to take off enough to make the venture economically viable. According to Peter Morris, chief analyst at aviation consultancy, Ascend Worldwide, flying domestically tends to be “less profitable” than international flights around the world. “On a domestic business route, you need frequency, frequency and frequency. That’s the single mantra that defines what is successful,” he recently told Gulf News.

LAN Airlines announces routes for Boeing 787 fleet

Santiago, Chile, Tuesday, March 27, 2012. - The Boeing 787 Dreamliner - modern aircraft that LAN will incorporate into the company’s fleet starting late 2012 and that will revolutionize the airline industry by having the latest technology- landed for the first time in Chile today, March 27, becoming a major attraction of the current International Air and Space Fair, FIDAE.

LAN announced –during the opening ceremony of the company’s display in the Fair that the destinations the 787 will fly to during its first year of operations will be Santiago, Buenos Aires, Lima, Los Angeles, Madrid and Frankfurt. These routes will gradually integrate through the aircraft’s first year of service.

The configuration of the cabin on the first LAN 787-8 aircraft will include 217 economy class seats and 30 seats for Premium Business class.

LAN will be the first airline in Latin America, and one of the first in the world, to incorporate this aircraft, receiving the first 787 in late 2012 (expecting to receive 32 in the first 10 years), in one of the largest investments of its history, U.S. $ 3,500 million.

"The incorporation of the Boeing 787 to LAN’s fleet will further ensure the company's sustainable growth while preserving the environment and incorporating modern technology to deliver the best travel experience for LAN's passengers. LAN looks forward to incorporating this new generation of technology in late 2012” said LAN Chief Operating Officer, Ignacio Cueto.

“We are proud to be the first in the region to operate it, as this aircraft incorporates substantial benefits to our passengers, besides it being a highly efficient aircraft in every way”.


“We are very proud to join LAN Airlines at FIDAE with the 787 Dreamliner World Tour airplane to showcase one of the pillars of LAN’s long-term fleet as they grow to one of the world’s leading airlines,” said Van Rex Gallard, Vice President of Sales for Latin America, African, & Caribbean; Boeing Commercial Airplanes.

“By choosing both the 767 and 777 airplanes, LAN has recognized the advantage that Boeing airplanes provide. Those advantages will continue with the 787 as it offers new opportunities in both passenger and cargo capabilities. The technology introduced on the 787 is truly a game-changer and we are happy to showcase it next to such an important and valued customer.”

“We are looking forward to supporting LAN when the 787 Dreamliner enters into service in late 2012 with an engine that delivers both financial and environmental benefits. The Trent 1000, designed exclusively for use on this aircraft” said Peter Turner, Rolls-Royce, Vice President – Customers, Civil Aerospace.

LAN in FIDAE 
LAN’s stand for the show is interactive and is specially designed so that the public who attends FIDAE can experience some of the properties that the new model offers, such as its windows, which have 40% more surface area than the current ones and are darkened by an electronic system.

The passenger’s experience on the Boeing 787
Committed to caring for our customers and the environment, this aircraft offers:
• An innovative, modern and harmonious design.
• With electronic auto-dimming windows and dynamic lighting to create a better atmosphere. Thus, preparing the passenger for the different stages during the flight (day, night, etc.), and for the time zone to which it is arriving.
• Larger windows: the windows of this aircraft have up to 40% more surface area than current windows, which will allow all passengers (in all rows) more visibility during the flight, giving them a better view.
• Overhead bins with 30% more storage space for carryon luggage.
• The aerodynamics of the Boeing 787 incorporate technology that reduces the impact felt by the passenger due to turbulence. In addition, the pressurization of the cabin to a lower altitude (6,000 feet instead of 8,000) would result in the reduction of headaches or other symptoms a passenger might experience when flying.
• The cabin includes new air humidification techniques, significantly reducing fatigue and dryness associated with long trips.
• The passenger may have a more enjoyable trip thanks to the technology in their engines that make them less noisy from both inside and outside the aircraft.

Some of the environmental benefits of the 787
• An emission of up to 20% less of CO2 than similar aircraft.
• Up to 40% less noise footprint than similar aircraft on takeoff, the period of greatest noise in flight.
• 50% of the structure is a carbon fiber composite material, which makes it a first in the industry, this material being more resistant to fatigue and corrosion. This allows, moreover, that the manufacturing process will produce less non-recyclable waste.

About the engine for LAN 787 fleet 
• The Rolls-Royce Trent 1000 has been designed and optimized exclusively for operation on the Boeing 787 Dreamliner. In October 2011, it became the first engine to power the 787 Dreamliner in service.  New technologies in aerodynamics, materials and coatings were incorporated to support Boeing’s low emissions requirement.

source: http://www.lan.com/en_us/sitio_personas/news/official-press-release/lan-airlines-announces-routes-for-boeing-787-fleet