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Tuesday, October 9, 2012

MAS axes Airbus A380 for Sydney, Melbourne, boosts London & Paris

Malaysia Airlines has cancelled its planned Airbus A380 services to Sydney and Melbourne in favour of boosting superjumbo flights to Europe.
The A380 was set to begin daily Sydney-Kuala Lumpur flights from November 26 this year, with Melbourne tipped to follow from March 1.
Both Australian cities are now off the agenda, with MAS focussing instead on Europe.
A second daily Airbus A380 flight between Kuala Lumpur and London (MH03/04) will commence on November 24, complementing the A380's debut earlier this year on that same route.
MAS will also roll out an A380 on the Kuala Lumpur-Paris route (MH20/21) from March 1 next year.
Malaysia Airlines Chief Executive Officer, Ahmad Jauhari Yahya, said strong response to the first Kuala Lumpur-London A380 service had sparked the decision to implement a second daily flight.
"Encouraged by the success of our current daily A380 operations on this route, we have decided to replace the existing B747 daily flights, with the A380 to make it a double daily on the superjumbo," Yahya said in a statement.
"The introduction of the latest 5-Star product standards on the A380 was also complemented by Skytrax, United Kingdom, renewing our 5-Star Airline status."
The move throws a spanner into the works for Malaysia Airlines' plans for an "A380 all the way" Kangaroo Route between Sydney and London via Kuala Lumpur.

Virgin Australia to share more Singapore Airlines flights in Adelaide

IN BRIEF | Virgin Australia is planning to offer more codeshare flights from Adelaide to the UK and Europe through its alliance with Singapore Airlines.
The new shared SQ services, which come on top of flights to Singapore, will extend to Amsterdam, Barcelona, Copenhagen, Frankfurt, London (Heathrow), Manchester, Milan, Moscow, Munich, Paris, Rome and  Zurich.
With 10 Singapore Airlines flights each week from Adelaide to Singapore, Virgin Australia exec Merren McArthur promises that travellers from the City of Churches "will have access to the greatest frequency of flights of any international airline from Adelaide, allowing connections to Singapore Airlines extensive network to Europe, the United Kingdom, Asia and South Africa" said .
“With a quick one-stop service through Singapore, our customers will be able to connect seamlessly to important business and leisure destinations including London and Paris and earn frequent flyer points and status credits in the process."

Qantas mulls Boeing 787s for international flights from Canberra

Qantas CEO Alan Joyce says he is considering introducing Boeing 787s for international flights from Canberra Airport from 2016.
In a Q&A session following a speech to the National Press Club, Joyce flagged Canberra as a potential long-haul destination, with Boeing's next-gen jetliner as a good fit for the airport and the route.
Although Canberra Airport is being upgraded to handle international flights from 2013, Qantas-badged Boeing 787s wouldn't grace the runways until sometime after 2016, when the airline can take delivery of its first Dreamliners under an 'option to purchase' plan.
Earlier this year Qantas cancelled its 'firm order' for 35 Boeing 787 Dreamliners an an effort to rein in costs, trading down to options and purchase rights on 50 of the Boeing jets "available for delivery from 2016."
(Deliveries of the first 15 Boeing 787-8 Dreamliners for Jetstar will continue on schedule, with the first of the next-gen jets due to arrive in the second half of 2013.)
The proviso, of course, is for Qantas to return to profitability – a situation which Joyce believes the Qantas-Emirates alliance will accelerate.
"There is no doubt this new partnership (with Emirates) is a step‐change for us in terms of the viability of Qantas International, and therefore Qantas itself."
Should the Red Roo find itself back in Joyce's stated 2015 timeframe the airline would start pencilling in 787 routes, with Canberra on the shortlist, Joyce indicated, with the 787-9 being a "right fit" aircraft.
“I have no doubt we will be back here looking at what Qantas long haul can do in Canberra” he said.
At the same time, Joyce once again came out for a second Sydney airport being built at Badgery's Creek rather than using Canberra as a de facto hub.

50 airlines will operate from the Abu Dhabi international airport

In 2012, six new airlines will be operating from Abu Dhabi: ADAC CEO

Abu Dhabi: As many as 50 airlines will operate from the Abu Dhabi international airport by the end of the year, James E. Bennett, chief executive officer for Abu Dhabi Airports Company (ADAC) said on Sunday.
“In 2012, six new airlines will be operating from Abu Dhabi,” said Bennett, speaking at Routes Abu Dhabi 2012 press conference in reply to a question by Gulf News.
He said the future of the commercial aviation industry is closely tied to the development of new routes, which directly benefit the economies of a city or a region.
“The annual economic impact in tourism alone of an additional daily long-haul service into Abu Dhabi is estimated at approximately Dh100 million. ADAC, therefore, understands how the direct and indirect economic benefits of new routes contribute towards the growth of Abu Dhabi’s tourism, trade and commerce. At the same time new routes also strengthen Abu Dhabi International Airport’s position as a global aviation hub,” Bennett added.

He said ADAC sees the World Route Development Forum as a unique opportunity to support the local economy and the aviation industry as a whole, and “looks forward to seeing other airports and airlines develop new partnerships with us here in Abu Dhabi.”
He said the Routes conference will provide a platform to map out plans for growth in the commercial aviation industry, but more importantly, “will allow Abu Dhabi to showcase its world-class airports and aviation services, and to work even closer with airlines in delivering new routes and destinations to Abu Dhabi airports.”
Bennett said the key project ADAC is keen on showcasing to the global commercial aviation industry during the Forum is the construction of our iconic Midfield terminal complex that, when operational in 2017, will transform the travel experience of all passengers travelling to, from or through Abu Dhabi International Airport.
ADAC, in June this year, awarded a Dh10.8 billion contract to a consortium of TAV, Arabtec and CCC for building the midfield terminal. Once ready, it will have the capacity to handle 30 million passengers a year, up from the current 12 million.
“The aviation industry is one of the 12 sectors that underpin the Emirate’s engines of economic growth and diversification in Abu Dhabi’s Economic Vision 2030. The government’s recognition that this sector is essential for connecting the Emirate to the world, has been translated into significant investment in the commercial aviation sector, enabling Abu Dhabi International Airport to become one of the world’s fastest growing international airport hubs,” Bennett concluded.

Lagardere urges rethink of EADS-BAE merger plan

EADS shareholder says plan has not demonstrated value creation

Paris: EADS shareholder Lagardere told the aerospace group on Monday to review the “unsatisfactory” terms of its planned $45-billion (Dh165 billion) merger with BAE Systems, raising the pressure before a British regulatory deadline next week.
The French firm’s demand marks another setback to the politically sensitive plan to create a European defence-and-aerospace giant before the October 10 deadline, and adds to concerns already expressed in Germany.
However, some market-watchers suggested Lagardere was simply seeking better conditions for a future sale of its minority stake in EADS, which makes Airbus jets, rather than fundamentally opposing the deal with the British group.
“Despite the industrial and strategic potential attributed to it, this plan has not yet demonstrated that it was creating value for EADS,” Lagardere said in a statement.

Lagardere expressed dissatisfaction with the terms of the deal, under which EADS is currently due to get around 60 per cent of the combined company.
“Lagardere considers that the merger conditions between EADS and BAE are currently unsatisfactory,” it said. “Lagardere invites the executive management of EADS to proceed immediately with an indispensable review of the tie-up plan of EADS and BAE, taking better into account all the interests of the French reference shareholding in EADS.”
Barring an extension, EADS and BAE have until Wednesday next week under UK takeover rules to set out detailed plans for the merger.
Lagardere holds 7.5 per cent of EADS, half the French government’s 15 per cent, but is the senior partner on the French side of the Franco-German shareholder pact which underpins the group. Germany is represented by carmaker Daimler’s 22.5 per cent voting share.
A spokesman for EADS declined to comment on the Lagardere statement.
EADS and BAE Systems announced last month they were in talks to form what would be the world’s biggest aerospace and defence group, marrying planemaker Airbus with Europe’s largest defence contractor.
“I think they just want the right parity for exit,” one London-based arbitrage trader said of Lagardere’s statement. Lagardere shares were up 0.2 per cent at 07.44 GMT on Monday, while EADS and BAE were both trading around 0.6 per cent higher.
German Reservations
Germany has deep reservations about the proposed merger, including doubts about whether the combined group would be safe from takeovers and could guarantee jobs, according to a ministry document seen by Reuters last week.
A person familiar with the matter also told Reuters previously that Daimler was unhappy about the proposed valuation of the deal.
German magazine Der Spiegel cited high-level civil servants on Sunday as saying that France and Germany had agreed that each should hold a nine per cent diluted stake in the merged entity, equivalent to a 15 per cent undiluted stake in EADS.
The Franco-German agreement would form the basis for their negotiations with the British government in talks this week, the magazine added. A spokesman for German Economy Minister Philipp Roesler declined to confirm or deny the report.
French officials were not immediately available to comment on the Spiegel report, but sources familiar with the matter denied the two sides were in agreement on the shareholding or how their relative interests should be guaranteed.
French and German defence and foreign ministers were due to meet in Germany on Monday.
The bosses of both companies tried in a joint newspaper article published on Monday to reassure investors about the benefits of their planned merger amid what they described as “myths and misconceptions” over the project.
EADS shares have fallen 17 per cent since September 12, when word of the negotiations was leaked. After shedding initial gains, BAE shares are back to where they were beforehand.
EADS Chief Executive Tom Enders and BAE head Ian King argued that the plan to join forces was born out of opportunity, not necessity, and that it would create growth, being better able to ride the cycles of civil aviation demand and defence spending.
EADS came out of a merger of French, German and Spanish interests in 2000 with a unique structure allowing the Paris government and Daimler to cohabit at arm’s length.

Middle East carriers to record $700m in profit this year, says IATA

World’s airlines to make a net profit of $4.1 billion in 2012, up from an earlier forecast of $3b

Dubai:Middle East carriers are expected to turn in a profit of $700 million in 2012, up from the $300 million previously forecast, according to the latest industry forecast for the year released by aviation trade body IATA (International Air Transport Association) on Monday.
Announcing an upward revision to the profit outlook for world’s airlines, the aviation watchdog said that it now expects the global airline industry to make a net profit of $4.1 billion this year, up from an earlier [June] forecast of $3 billion but still less than half the $8.4 billion achieved in 2011.
“Middle East airlines have seen a major improvement in their prospects for the year. They have been very competitive in both cargo and passenger markets. In addition to growing their long-haul business with increasing market share on routes connecting via the Gulf hubs, they have taken the majority of what little growth there has been in the cargo market this year,” said Tony Tyler, IATA’s Director General and CEO.
The region, according to IATA, has shown the strongest passenger traffic growth with a 17.1 per cent increase in demand outstripping a 13.2 per cent increase in capacity, while the cargo capacity has expanded by 13 per cent as demand increased by 14 per cent.

Further, in its first forecast for 2013, IATA said it sees global profits rising modestly to $7.5 billion, boosted by passenger traffic expansion, even as net margins will remain thin at just 1.1 per cent.

Emirates launches daily A380 flight to Melbourne

Future A380 destinations this year include Singapore and Moscow

Dubai: Emirates has strengthened its commitment to both Australia and New Zealand with the launch of a daily Airbus A380 non-stop service to Melbourne and onto Auckland starting on Monday.
Additional A380 destinations that are set to launch this year include Singapore and Moscow with flights starting December 1.
“The introduction of the A380 increases Melbourne’s capacity on the Dubai and Auckland sectors by more than 500 seats per day, which will further stimulate tourism and trade between the UAE, our global network, Australia and New Zealand,” said Salem Obaid Allah, senior vice-president of Emirates Commercial Operations Far East & Australasia.
“It is also in New Zealand that we are continuing our investment and growth, with our latest A380 service continuing on to Auckland and arriving just moments before our daily A380 service from Sydney, which we began operating in February 2009. This second daily A380 service gives our passengers double the opportunity to enjoy this wonderful aircraft; which includes private suites and shower spas in first class, flat-bed seats, all with aisle access, in business class and generous seating on the main deck in economy class,” explained Obaid Allah.

Obaid Allah also added that the A380 was an exceptional aircraft that had been in the pipeline for the Melbourne market for a few years and that the launch kick started an exciting period of growth in the airline’s Australian business.
“From November 1 we launch non-stop flights to Adelaide and from December 1 we introduce a third daily flight to Perth,” he revealed.
“Pending regulatory approval, from April 2013 Melbourne travellers will experience seamless connectivity across the Emirates and Qantas networks, exclusive frequent flyer benefits and the choice of four daily services to Dubai, two of which will be non-stop A380 services connecting to over 70 destinations in Europe, the Middle East and Africa,” added Obaid Allah.

Emirates welcomes 25th Airbus A380 to its fleet

Will be immediately engaged into service across Emirates network

Dubai:Emirates, took delivery of its 24th and 25th Airbus A380 and its 78th Boeing 777-300 on Wednesday.

The aircraft will be immediately engaged into service across Emirates network of 126 destinations in 74 countries; supporting Emirates planned expansion of its network and flights. The delivery of three wide-body aircraft in one day, a record for Emirates, required careful review and advance preparation within all operational units to ensure the availability of the required flight crew, cabin crew, engineers, airport staff in time to ensure a smooth entry into service.

The jubilee Emirates A380 aircraft was handed over to the Emirates aircraft acceptance team by Michael Pflaum, Airbus Head of A380 delivery in Hamburg, during a delivery ceremony at the planemaker’s Jurgen Thomas A380 Delivery Centre. With 25 A380 aircraft now in its fleet, growing to 31 by the end of 2012, Emirates is the largest A380 operator worldwide and with 90 jets on firm order by far the largest A380 customer.

The Dubai-based carrier was the first airline to order the A380 and thus enabled Airbus to proceed with the programme. The further 65 A380s on Emirates’ order book is part of Emirates’ overall 216 aircraft still to be delivered; worth $62 billion (Dh227.67 billion).

Oman Air increases flights in Muscat-Salalah Route

The extra flights accounted for 40 per cent of the total number of people travelling to Salalah

Oman Air increases flights in Muscat-Salalah Route
Oman Air has announced that it has increased flight between Muscat – Salalah route. Nearly 50,000 passengers flew on the route, an increase of more than 20,000 compared with August-September 2011. The extra flights accounted for 40 per cent of the total number of people travelling to Salalah with Oman Air and the extraordinary demand for travel also resulted in an impressive average seat factor of 88% for this festive period. Oman Air has recorded a huge surge in traffic between Muscat and Salalah during August and September this year, resulting from increasing demand at the end of the Holy month of Ramadan, the Eid festivities as well as the natural attraction of the Dhofar Khareef season.

AirAsia X to suspend Iran service citing currency "volatility"

Current four times weekly Kuala Lumpur-Tehran flights will be suspended with the last flight on October 14

Kuala Lumpur: The long-haul arm of budget carrier AirAsia said on Monday it would suspend operations to Iran, citing currency “volatility” as the carrier mounts new profitable destinations across the Asia-Pacific.
Malaysia-based AirAsia X said the current four times weekly flights between Kuala Lumpur and Tehran will be suspended with the last flight on 14 October.
AirAsia X said “the suspension of its services to Tehran Imam Khomeini Airport” was due to challenging economic and business conditions including the “volatility of the Iranian currency”.

The statement did not say when services would be resumed.
Iran, which has been ruled by an Islamic theocracy since the 1979 revolution, is locked in a diplomatic stand-off with the West over its nuclear activities, which Tehran insists are entirely peaceful.
Western sanctions has resulted in the plunge of Iran’s currency.
In a bid to rationalise its operations AirAsia X this year axed its four-weekly flights to Christchurch. It has also ceased service to London, Paris and New Delhi and Mumbai.
Oil-rich Iran has good ties with Malaysia. Tehran and Kuala Lumpur have been trying to grow trade relations. The airline launched flights to Iran in 2010 since Malaysia was a popular tourist destination for Iranians.
AirAsia X operates nine Airbus A330-300s to 12 destinations in six countries — Japan, Korea, Australia, China, Nepal, and Taiwan.
Former record industry executive Tony Fernandes plucked ailing AirAsia from its deathbed in 2001 and quickly turned it into one of the aviation sector’s biggest successes.
Fernandes established a successful template for AirAsia that included flying into secondary airports in major cities, with their lower landing costs.
He launched AirAsia X in 2007, to concentrate on long-haul routes of over four hours while AirAsia and its regional subsidiaries handle shorter flights.
AirAsia X, which carried 2.5 million passengers last year, has targeted seven million passengers by 2014 on the back of the additional capacity. It hopes to be listed soon.

Etihad in codeshare partnership with Air France-KLM

Agreement extends Abu Dhabi-based carrier’s network to 321 destinations

Dubai: Taking its codeshare and partnership strategy a notch up, Etihad Airways on Monday said it has signed a codeshare partnership with Air France-KLM, due to take effective on October 28.
The move comes a day after Etihad said its codeshare and partner revenues grew 51 per cent to $182 million (Dh668 million) in the third quarter, boosting overall revenues by 19 per cent to $1.3 billion.
The deal enables Etihad to further extend its global reach to a combined network of 321 destinations, Etihad said, adding it would see the two carriers offering joint codes on destinations in Europe, the Middle East, Asia and Australia.
Etihad holds equity investments in airberlin, Air Seychelles, Virgin Australia and Aer Lingus.

Etihad also announced the new codeshare agreement between Air France and airberlin.
Etihad holds a 29.21 per cent stake in the German carrier.

The agreement would allow customers of the French and German carriers to fly on all routes they serve.
“Partnerships are delivering a major source of our revenue growth, by extending our network reach. This year to date, they are providing 18 per cent of our revenues and will be a major contributor to our sustained profitability growth this year and into the future,” James Hogan, Etihad Airways’ President and Chief Executive Officer, said in a statement.
“Gulf carriers have now officially changed the face of aviation. It is cheaper for Etihad to do this and build its network this way, and it is the only way Air France-KLM, which is facing high costs and debts to stay in the game and serve large (and growing) parts of the globe, can survive,” said aviation analyst, Andrew Charlton of Aviation Advocacy.
According to Saj Ahmad of StrategicAero Research, in the long term, this move may also open up doors for Etihad “to explore joining the Skyteam alliance”.
Other potential areas of cooperation between Etihad and Air France-KLM include joint procurement, as well as maintenance and repair collaboration, as both carriers identify cost savings and seek to benefit from economies of scale, Etihad stated, adding, the two airline groups expect to collectively carry more than 85 million passengers in 2012.

Photos: Lufthansa's new lounges at Frankfurt Airport

Lufthansa will open five new lounges, including its largest in the world, at Frankfurt Airport tomorrow when the new A-Plus Concourse built for Lufthansa and its Star Alliance chums opens its doors to travellers.
A First Class Lounge, Senator Lounge and Business Lounge are located on the EU Departures and Arrivals level, along with Senator and Business Lounges in the 'non-Schengen' area.
The Senator Lounge in the Non-Schengen area is Lufthansa’s largest lounge worldwide, spanning across almost 2,100 square metres.
And if five lounges isn't enough, Lufthansa promises that "in future, passengers at Frankfurt Airport will have a choice of 13 Lufthansa lounges plus the First Class Terminal with a total floor space of more than 17,500 square metres."
In the first half of 2013 the Senator Lounge in the adjacent Concourse A will be refurbished.
The two Senator and Business lounges are fitted out in Lufthansa's new design, which the airline says was developed in close cooperation with passengers.
One feature: backlit walls with forest motifs, "which generate a relaxing atmosphere", while materials including leather and oak "enhance the welcoming, feel-good atmosphere".
Let's go for a virtual wander through Lufty's new lounges...
The new design is all about clean lines and European elegance.
Forget the frills and bling of some middle-eastern carriers: Lufthansa's all about paring back to create a restrained and very contemporary look.
Being positioned at the apex of the new A-Plus pier affords several great views over the working area of Frankfurt airport.
It's similar to the vibe you get at Cathay Pacific's The Cabin lounge in Hong Kong: there's no way to forget you're at an airport and about to off on a journey.
And you probably won't forget which airline you're flying with, either.
By the way, did you spot the AC sockets on the tables between all those chairs?
The lounges boasts not only plenty of room for travellers but plenty of juice for their tech.
For an alternative view to the runways, there's that forest motif displayed on a backlit wall.
Behind the floor-to-ceiling glass panels lies a seperate area with recliners if you want to get really close to the make-believe green.
Is all that mock nature a bit unsettling? Calm your nerves with a drink or two at the bar.
 And because it's a Lufthansa lounge, smoke 'em if you've got 'em!
The bathrooms borrow much of their design from Lufthansa's other premium lounges.
Look closely and in the background you can see the famous yellow Lufthansa bath duck.
If you head through any of Lufthansa's new lounges at Frankfurt Airport, drop back here and share your thoughts!

Qatar joins oneworld by early 2014 – how Qantas travellers will benefit

Qatar Airways is joining the oneworld alliance and will take its place alongside Qantas, Cathay Pacific, British Airways and other partner airlines by early 2014.
The deal, long rumoured but only officially announced this morning, will eventually see Qantas travellers able to earn and burn frequent flyer points on Qatar flights, enjoy access to Qatar's decidedly upscale lounges and tap into Qatar's own network to add flexibility to their flight schedule, especially from Melbourne and Perth where the airline currently operates.
British Airways is also said to be in discussions with Qatar Airways about a joint venture on routes between Australia and the UK, taking over from the Qantas-BA alliance which will be dissolved in March 2013.
Qatar is the Gulf region's second largest airline, behind than Emirates but ahead of Etihad, and was most recently the travel news for taking delivery of the first of 30 Boeing 787 Dreamliners (a total shopping bill of A$6 billion at list price).
Read: Photo tour – inside Qatar Airways' Boeing 787 Dreamliner
It's also the first of the three Gulf carriers to join an alliance, with both Emirates and Etihad consistently ruling out such a move.
In Australia, Qatar flies to its hub in Doha from Melbourne daily and Perth thrice weekly, with numerous connections on to Europe and Africa.
As for Sydney, while this might seem an obvious next step, last year the airline's CEO nixed Sydney flights, citing high costs and the overnight curfew as deal-breaking restrictions.
Even so, Qatar's network isn't as much about providing new destinations for Australian travellers as it is a chance to add extra schedule options to your flights while still earning Qantas points, and an alternative to the Qantas-Emirates alliance.

Qatar Privilege vs Qantas Frequent Flyer

Qantas Frequent Flyers will enjoy full "earn and burn" for points plus reciprocal access agreements with Qatar Airways' Privilege Club program.
Privilege Club is a four-tier program, starting at the basic Privilege Club level, and ascending through Burgundy, Silver and Gold – here's how the tiers stack up against Qatar's new oneworld siblings.
  • Qatar Gold = Qantas Platinum = oneworld Emerald
  • Qatar Silver = Qantas Gold = oneworld Sapphire
  • Qatar Burgundy =  Qantas Silver = oneworld Ruby
For lounge access, we expect Qantas Platinums to have access to Qatar's Oryx Lounge at Doha, while Qantas Golds will head to the Silver Lounge.

Fully flat beds on the long haul to Doha

Qatar's long-distance A340 and some A330 planes have a three-class first/business/economy layout, while Boeing 777 planes, some A330s and smaller jets carry a two-class (business/economy) configuration.
Business class on the airline's Boeing 777s is a fully flat bed, while angled lie-flat seats are found in business on other planes.
With both Melbourne and Perth flights using Qatar's Boeing 777s, business travellers will find these more appealing than the angled lie-flat seats on Emirates' 777s or Qantas' Airbus A330s – especially when the flight to Doha is a length 14h15 from Melbourne, or 11h25 from Perth.
Need all the details of Emirates' business class offerings to make the comparison? We've got you covered.

Lounging around

Qatar's lounge network around the world is less developed than Emirates', but its home Oryx lounge for first and business passengers in Doha receives rave reviews from travellers.
There's even a Premium Terminal – yes, an entire terminal – exclusively for first and business class travellers with a range of dining options and, naturally, a spa.
First and business travellers stopping over in Doha can take advantage of Qatar's Premium Arrivals lounge.
At London Heathrow, Qatar's Terminal 4 lounge is the first the airline has built for itself outside Doha, and it's certainly dressed to impress.

Qatar Airways to join Oneworld Alliance

Addition will increase Oneworld's global coverage to 856 destinations in 159 countries generating annual revenues of nearly $120 billion

Dubai: Qatar Airways is set to join Oneworld Alliance – one of the world’s three largest airline groups, the company announced.
“Its addition will increase Oneworld's global coverage to 856 destinations in 159 countries, served by a combined fleet of 2,600 aircraft operating more than 9,300 flights and carrying almost a million passengers every day or 342 million a year, generating annual revenues of nearly $120 billion (Dh440 billion),” Oneworld said in a statement.
The Doha-based airline's implementation into Oneworld is expected to take between 12 and 18 months.
The airline, 50 per cent owned by the State of Qatar and 50 per cent by private shareholders, carried 15 million passengers in 2011, generating group revenues of $6.4 billion.

"The big three Gulf carriers have been embraced by millions of consumers the world over – just as consumers have embraced global airline alliances.  Our own analysis clearly demonstrated that Qatar Airways is the best fit for Oneworld's network, requirements, philosophy and strategy,” Bruce Ashby, Oneworld CEO, said.
Qatar Airways is the first of the three major airlines based in the Gulf to sign for any of the global airline alliances.
“Oneworld is delighted to be the first of the global alliances to welcome a member airline from this region, enabling us to be the first to offer consumers the services and benefits offered by both a global alliance and a Gulf carrier,” Ashby said.
An airline alliance is an agreement between two or more airlines to cooperate on a substantial level. The three largest passenger alliances are the Star Alliance, SkyTeam and Oneworld.
A significant number of international airlines have joined these alliances to gain market share while creating operational synergies as bitter competition and high cost of jet fuel and reducing margins are taking a toll on the global airline industry.
"Alliances are playing an increasingly important role in the airline industry today - and that will continue long into the future,” Akbar Al Baker, Qatar Airways Chief Executive Officer, said.
“Qatar Airways has carefully reviewed its strategic options and it is very clear that joining Oneworld is by far the best way forward for us as we look to strengthen our competitive offering and give passengers what they fully deserve – more choice.”
Qatar Airway’s announcement comes a few hours after Abu Dhabi-based Etihad announced a strong partnership with Air France-KLM – one of the world’s biggest airline company and leading partner of SkyTeam – Oneworld’s rival alliance.
However, Etihad fell short of fully joining the alliance, while Airberlin – in which Etihad owns a 29.5 per cent stake – remains an active partner with Oneworld Alliance.
Emirates, the biggest Arab airline and also the biggest carrier of international passengers, is yet to join any of the alliances. While the battle of the skies hots up, it keeps others guessing. "Its unlikely we'll see any kneejerk reaction from Emirates or Etihad," Saj Ahmad, Chief Analyst of StrategicAero Research, an aviation advisory, said.
“As a member of Oneworld, Qatar Airways will fly alongside some of the biggest and best brands in the airline business,” said a Oneworld statement.
British Airways will serve as its sponsor in joining Oneworld, supported by the central Oneworld alliance team, mentoring the recruit through its alliance implementation programme.
Qatar Airways will be Oneworld's second member airline based in the Middle East, alongside Royal Jordanian, which became the first airline from the region to join any of the global alliances when it boarded Oneworld in 2007.
“More significantly, Qatar Airways will substantially strengthen Oneworld's customer offering by providing superior routing alternatives across many hundreds of city pairs,” Oneworld said.
“For example, passengers flying between Asia and Southern Europe or between Asia and Africa will now have convenient one-stop connections not previously available within the Oneworld network.”
Qatar Airways serves a network of 120 destinations in 70 countries with a fleet of 111 aircraft. The carrier is set to move into a new home in 2013 with the opening of the New Doha International Airport, designed to strengthen its position as a premium global hub with an eventual capacity for 50 million passengers a year.
“Not only will Qatar Airways benefit by seeing even more traffic come to and through its hub in Doha, it will have access to a wider range of markets that it currently has limited presence in – especially in North America and Latin America,” Ahmad said.

“Likewise, for the Oneworld members, they will be able to access markets across the Gulf and wider Arabian penninsula that they do not serve. Countries like Iran and Iraq spring to mind, where demand is immense but there aren't nearly enough services available to cater for it.”

Gulf-based airlines extend global reach

Abu Dhabi-based Etihad boosts network with Air France-KLM codeshare deal

Dubai: Despite facing opposition from several countries time and again, Gulf carriers have proved they are unstoppable.
Etihad Airways signed its 40th codeshare deal on Monday – with Air France-KLM, extending the Abu Dhabi-based carrier’s network to 321 destinations.
The first phase of the partnership will begin on October 28, Etihad said in a statement.
Emirates signed a 10-year landmark partnership with Australian carrier Qantas last month giving  UAE passengers access to an additional 50 destinations in Australia.

And that Dubai would become Qantas’ new hub for European flights proved a bonus. The two airlines will jointly offer 98 weekly services between Australia and Dubai as the partnership arrangements take effect in April 2013, subject to regulatory approvals.
And then there have been talks about Qatar Airways mulling joining the Oneworld alliance, anchored by American Airlines and British Airways.

“Gulf carriers are driving change by rolling out ever growing networks to feed into their own services, using their new, efficient aircraft. The European airlines have long regarded the Gulf carriers as a threat; today they conceded defeat,” aviation analyst Andrew Charlton of Aviation Advocacy, told Gulf News.
The codeshare deal will see Etihad and Air France-KLM offering joint codes on destinations in Europe, the Middle East, Asia and Australia.
Collectively, the two airline groups expect to carry more than 85 million passengers in 2012, according to Etihad. At the same time, Air France is announcing a new codeshare agreement with European carrier airberlin in which Etihad holds a 29.21 per cent stake.
“This deal enables us to further extend our global reach and now gives us a combined network of 321 destinations –the largest of any Middle East carrier. It also opens up many new markets for our passengers in Europe,” said James Hogan, Etihad Airways President and CEO.

EU in secrecy spat with U.S. over A350 funding papers

Visitors look at an A350 aircraft miniature at the EADS booth during the ILA Berlin Air Show in Selchow near Schoenefeld south of Berlin on September 13, 2012. REUTERS/Tobias Schwarz

BRUSSELS | Mon Oct 8, 2012 10:00am EDT
 
(Reuters) - The European Union accused the United States of breaching confidentiality surrounding the filing of economically sensitive documents on the funding of the Airbus A350 in the latest twist to a long-running aircraft subsidy dispute.

The EU's executive Commission spoke out on Monday after the U.S. Trade Representative's office confirmed a Reuters report that it had received the documents after requesting them from the World Trade Organization over a month ago.

It is the first time the funding of the A350 - Europe's answer to the Boeing 787 - has been drawn directly into the world's largest trade dispute and comes at a sensitive time as Airbus parent EADS prepares to expand in the United States.

"The EU regrets that the US government has disregarded the confidentiality of WTO proceedings by referring to the EU's submission of documents last week," EU Trade Spokesman John Clancy said, in a rare criticism of the United States for flouting secrecy protocol.

A U.S. embassy spokeswoman in Brussels declined comment.

Washington has called on Airbus to stop receiving loans from its host European nations - Britain, France, Germany and Spain - and argues that the WTO should take loans for the future A350 into account when evaluating penalties for earlier support.

The EU says the A350 is outside the scope of the subsidy dispute which was set up before the European planemaker decided to launch the aircraft, due to make its maiden flight in 2013.
The WTO has found that Airbus and U.S. rival Boeing both benefited from billions of dollars of unfair subsidies in a pair of trade complaints now in their ninth year.

The clash over the A350 risks an escalation of the marathon dispute just as Airbus parent EADS prepares to seek U.S. backing for a potential merger of EADS with Britain's BAE Systems, which has significant interests in the United States.

The $45 billion merger would be subject to thorough vetting by U.S. authorities, including the U.S. Trade Representative's office, and is expected to draw close scrutiny from Boeing and its supporters in Congress.

Critics of EADS fear the combination of BAE's extensive U.S. operations and suspected ongoing subsidies to Airbus might give the group unfair pricing power and damage the U.S. industry.

But most trade specialists doubt the WTO dispute will be drawn into the merger approval process because the panel which vets such moves, the Committee on Foreign Investment in the United States, generally sticks to a pure security mandate.

A U.S. source said outside estimates placed the loans paid to Airbus for the A350 at around $4.5 billion.

Airbus has said any payments would comply with WTO findings.

The two sides have been engaged in legal trench warfare over aircraft subsidies for over eight years, with testimony, rulings and appeal verdicts running to thousands of pages.

After a protracted legal battle over the status of the plane, the U.S. government said on Saturday it had received EU documents on the A350 a month after requesting them.

The EU spokesman said the Geneva-based WTO had asked for the documents merely to decide whether they were relevant.

The United States seeks up to $10 billion in sanctions against the EU for not eliminating European government support mainly in the form of government loans to Airbus.

The EU last month asked the WTO for the right to impose sanctions worth up to $12 billion annually in the largest ever sanctions request, triggered by research aid to Boeing.

Analysts say it could be years before the huge dispute plays itself out in sanctions or a settlement, while hanging over U.S.-European relations as a sporadic irritant in other issues.

(Editing by Tim Hepher and Hans-Juergen Peters)

Garuda to receive two Bombardier aircraft in October

National carrier Garuda Indonesia will take delivery of two CRJ1000 NextGen aircraft from Canadian aircraft manufacturer Bombardier Aerospace in October, an executive says.

The aircraft will be used to serve short-range domestic routes as part of its business expansion in remote areas of eastern Indonesia traditionally served by ailing PT Merpati Nusantara Airlines.

“We will connect five big cities in the country: Medan [North Sumatra], Balikpapan [East Kalimantan], Makassar [South Sulawesi], Denpasar [Bali] and Jakarta to boost connectivity,” Garuda Indonesia vice president for western Indonesia Suranto said in Yogyakarta on Friday.

“We now have 94 aircraft and we aim to increase that to 195 by 2015. The procurement will be carried out gradually,” he continued, adding that the company needed up to Rp 37.6 trillion (US$3.9 billion) to meet the procurement target,” he added.

Separately in Jakarta, senior communications manager Ikhsan Rosan said that the airline would connect Makassar with cities like Balikpapan and Tarakan, East Kalimantan; Ternate, North Maluku; Gorontalo; Sorong and Manokwari, West Papua; ; Mataram, East Nusa Tenggara, and Kupang, West Nusa Tenggara.

“We are going to operate five Bombardier aircraft that will be based in Makassar this year,” Ikhsan told The Jakarta Post in a text message on Friday.

The company signed a contract to purchase 18 Bombardier CRJ1000 NextGen aircraft at the Singapore Airshow in February with an option to buy an additional 18. Besides Makassar, the aircraft would be used to serve its regional hubs: Medan, North Sumatra; Balikpapan, East Kalimantan; Denpasar, Bali; and Biak, West Papua.

He said the aircraft would not only help increase connectivity of towns around these hubs, but also strengthen Garuda’s domestic networks.

The airline’s subsidiary PT GMF AeroAsia corporate secretary Dwi Prasmono Adjie said that Bombardier’s Maintenance, Repair, and Overhaul (MRO) facilities in Makassar has been finished recently.

“Our engineers have the ability to repair Bombardier aircraft and we are assisted by experts from Canada,” Dwi said.

He said the company had started to train its engineers to repair the sub 100-jet since early this year and they have set a target to conduct heavy maintenance on the jets in 2014.

GMF will become the first maintenance and repair center in Asia-Pacific for the Canadian based aircraft manufacturer after both parties signed a letter of intent in June.

Dwi said that the repair center would be an important facility to expand its business by maintaining and repairing aircraft from the Asia-Pacific region, as well as in supporting Garuda Indonesia’s operations.

Besides Garuda, companies that use the Canadian aircraft include Delta Air, BritAir, Lufthansa CityLine, Atlantic Southeast Airlines, American Eagle Airlines, Air Canada Jazz, Scandinavia Airlines, SkyWest Airlines and China Express.

source: http://www.thejakartapost.com/news/2012/10/06/garuda-receive-two-bombardier-aircraft-october.html 

AirAsia X To Suspend Services To Tehran

AirAsia X, the long-haul, low fare affiliate of AirAsia, today announced the suspension of its services to Tehran Imam Khomeini Airport, Iran due to challenging economic and business conditions including the volatility of the Iranian currency.

The current four times weekly flights between Kuala Lumpur and Tehran will be suspended with the last flight on 14 October, 2012 (flight D7 154 from Kuala Lumpur/ flight D7 155 from Tehran).

AirAsia X will offer guests who hold bookings after these dates an option of a full refund or credit shell. All changes will be made at no additional cost to mitigate the inconvenience caused as a result of the withdrawal. All affected guests will receive an e-mail stating the available options.

Affected guests who booked flights via our exclusive sales agents in Iran should contact them directly for service recovery options.

Last update : 8 October 2012

source: www.airasia.com/my/en/latestnews/tehran-flight-cancellation.page