Dreamliner: Boeing 'may never find battery fault cause'

Boeing has admitted that it may never know what caused the battery malfunctions that resulted in all its 787 Dreamliner aircraft being grounded.

The admission came from Boeing's Larry Loftis, the general manager of the company's 787 division.
Replacement battery systems are now being fitted to all 50 Dreamliners that had been in operation with airlines around the world.
Boeing expects the planes to resume service in the coming weeks.
'Best practice' On Friday, US aircraft regulators approved a revamped battery design for the aircraft, paving the way for the fleet to return to the skies.
Speaking at a media briefing in London, Mr Loftis said: "It is possible we will never know the root cause.
"It is not uncommon not to have found the single root cause. So industry best practice is to look at all the potential causes and address all of them."
The groundings of all Dreamliners in January followed two major incidents concerning the plane's two lithium-ion batteries.
Firstly, on 7 January, a battery overheated and started a fire on a Japan Airlines 787 at Boston's Logan International Airport.
Nine days later, an All Nippon Airways 787 had to make an emergency landing in Japan after a battery started to give off smoke.
'Exhaustive study' The two lithium-ion batteries are not used when the 787 is in flight.

Mr Loftis said Boeing had addressed all "potential causes" and expected the 787 to remain popular

Instead they are operational when the plane is on the ground and its engines are not turned on, and are used to power the aircraft's brakes and lights.
Mr Loftis said Boeing had put 200,000 engineer hours into fixing the problem, with staff working round the clock.
Improved batteries are now being introduced. Mr Loftis explained that the newer batteries did not have to work so hard, and therefore operated at a cooler temperature.
In addition, the new batteries are enclosed in stainless steel boxes which have a ventilation pipe that directly goes to the outside of the plane. So Mr Loftis said that any future "rare cases" of battery failure would be "100% contained", with any smoke immediately leaving the plane.

Continue reading the main story

Analysis

Richard Westcott BBC transport correspondent

I flew on the Dreamliner when it first came to the UK last year.
It's one of those planes that breaks the mould, taking airliners to a new level technologically, but all of that state-of-the-art kit is what's caused Boeing so much grief.
The 787 is the first airliner to use lithium-ion batteries. They're smaller, lighter, and pack a bigger punch than other batteries, but they have a history of overheating.
Airbus was planning to use them in its new plane, the A350, but has decided against it after watching Boeing struggle to prove they are safe.
The general manager of the Dreamliner programme, Larry Loftis, told me recently that he's seen no compelling reason to move away from lithium-ion, and many compelling reasons to stay with the technology.
Still, Boeing's decision to try something new has cost them hundreds of millions of dollars and put a big dent in their reputation.

He added: "We did an exhaustive study of potential causes, and addressed all of them. We do feel that with all the work we have done, we have tackled the potential problems."

Expanding production A total of 300 Boeing engineers, pooled into 10 teams, have now started fitting the replacement batteries and battery systems to the 787s in service around the world, and also to those that have been built by Boeing since January.
Mr Loftis said it would take five days per plane to do the necessary work, and that it would be carried out by the order in which airlines first received the planes. For this reason, Japan's All Nippon Airlines will be the first to get its 787s fixed.
Boeing is likely to release details of how much fixing the battery problem has cost the company when it releases its latest quarterly results on Wednesday.
Mr Loftis said he did not expect the issue to have any lasting negative impact on the popularity of the Dreamliner among either airlines or passengers.
He said that Boeing had continued to make five 787s per month, and that the company was about to increase that to seven, raising output to 10 per month by the end of this year.


http://www.bbc.co.uk/news/business-22251756 

REFILE-Dubai flights rely on fuel refined from Iranian oil

(Refile corrects spelling of countries in third paragraph)
* Emirates National Oil Company refinery uses Iranian condensate
* Refinery supplies Dubai airport via pipeline
* Oil not considered Iranian under sanctions once refined abroad
By Daniel Fineren
DUBAI, April 23 (Reuters) - Fuel made from Iranian oil is legally powering thousands of flights a year out of Dubai's booming airport, despite U.S. pressure on buyers to shun Tehran's petroleum exports.
It may even fuel U.S. allied military jets in the Middle East.
Washington and the European Union have slashed Iran's exports in half over the last year by leaning on importing countries to find alternative feedstock for their refineries.
Meanwhile, close U.S. ally Dubai, long a major user of Iranian light oil known as condensate, continues to process tens of thousands of barrels a day at an Emirates National Oil Company (ENOC) refinery, according to oil industry sources and shipping data.
ENOC then pumps the resulting fuel to Dubai airport, the world's second busiest.
ENOC's chief executive declined to comment this week on how much Iranian oil the company was still importing and ENOC media relations did not respond to repeated requests for comment.
U.S. and European companies are not allowed to buy any Iranian refined oil products, under tough sanctions imposed by Washington to force Tehran to stop its nuclear activities.
But any airline is free to use fuel made from Iranian oil in other countries, because once it passes through a refinery outside Iran it is no longer considered of Iranian origin under sanctions.
"In our view jet fuel from an Emirati refinery is Emirati jet fuel, it is not Iranian no matter what it was made from," a U.S. government official in Washington said.
ENOC says it is the largest provider of jet fuel at Dubai International Airport (DXB) and that its portfolio boasts a growing number of military customers.
One such customer is the U.S. Defense Logistics Agency (DLA) which supplies planes at the Al Minhad airbase near Dubai, a hub for U.S.-allied forces in the Middle East.
"DLA Energy does contract with ENOC International Sales, LLC to supply jet fuel to Al Minhad Air Base," a spokesman for the U.S. Department of Defense said. "The contract was let in August 2011. This contract expires in August 2013."
It is not clear whether or not some of the fuel ENOC supplies under contract to the DLA come from ENOC's Jebel Ali refinery near Dubai. A western government source said ENOC also buys some fuel produced in refineries in Bahrain and Kuwait.
ENOC did not comment on whether some or all the fuel it supplies to the DLA is produced at Jebel Ali.
But ENOC's website says most of the jet fuel it supplies to the airport is pumped through a 60,000 barrel per day (bpd) pipeline from the refinery, and demand at the world's fastest growing airport is rising so much that it is laying a second pipeline.
EXECUTIVE ORDER
Iran exported about $7.5 billion worth of condensate from its main export facility at South Pars in the year ended March 20, 2013, according to Iranian media reports.
ENOC was the biggest buyer of Iranian condensate in 2012, when its imports rose to an average of 127,000 bpd, according to analysts' estimates.
An executive order issued on July 31, 2012, gives U.S. President Barack Obama the option to impose sanctions on buyers of Iranian condensate, but only if the U.S. believes there is sufficient alternative supply to permit a significant reduction in volumes from Iran.
ENOC announced in February it had secured about 20,000 bpd of condensate from Qatar to feed its 120,000 bpd refinery and said it was working to find more alternatives.
The company has not announced further substitution deals, suggesting it has not yet found long-term alternative supplies.
Ship tracking data on Reuters shows a vessel able to carry around a million barrels of oil shuttles between the refinery and South Pars once a week. A full tanker would carry enough to run the refinery at capacity for about a week.
With shrinking export options, traders say Iran is likely to be selling its condensate fairly cheaply, helping ENOC offset multi-million dollar loses it has to take because it is obliged under UAE law to sell gasoline at a subsidised rate.
Dubai has been a key trading partner for Iran for decades, but the UAE is also one of Washington's closest allies.
The UAE is the largest export market for the United States in the Middle East, with Dubai flagship airline Emirates alone having placed a $24 billion order with Boeing in 2011, according to the website of the UAE Embassy in Washington.
U.S. Defense Secretary Chuck Hagel is touring the Gulf this week, with the U.S. close to finalizing a deal to sell the UAE 25 F-16 Desert Falcon jets worth nearly $5 billion.
MORE ON THE WAY
Unless ENOC can find another 100,000 barrels per day of alternative supplies at competitive prices, the opening of a second pipeline due later this year could take more fuel made from Iranian oil into the tanks of international airlines.
The existing pipeline can carry around 9.5 million litres of jet fuel a day - enough to fill up 44 Boeing 747s a day or 16,000 a year, although most routes do not use a full tank.
ENOC is not the only jet fuel supplier, because its refinery and existing pipeline are not big enough to meet demand at DXB, where an average of around 470 flights a day took off in 2012.
Several western oil companies also supply jet fuel to the airport - Royal Dutch Shell, BP and Chevron - but they say they source it outside the UAE and in full compliance with sanctions on Iran.
Some U.S. and European airlines said they do not use ENOC when they call at Dubai, with some having global purchase deals with other suppliers.
But for many of the 130 airlines flying into Dubai, the fuel derived from Iranian oil that ENOC offers is indispensable. (Additional reporting by Timothy Gardner in Washington; Editing by Anthony Barker)

Polish LOT expects to have 3 Dreamliners in service in June

(Reuters) - Poland's troubled flag carrier LOT expects to have its two grounded Boeing Dreamliners returning to service by mid-June and to receive the third Dreamliner around the same time, the airline said on Tuesaday.

LOT, the first European airline to take delivery of Boeing's trouble-plagued jets before they were grounded due to battery issues, said it would seek damages from the U.S. manufacturer.

"We estimate directly losses at several dozen million zlotys. There are also other more difficult ones to asses, such as the damages to our brand," LOT spokesman Marek Klucinski said.

U.S. transport safety board chairman says 787 hearing went well

(Reuters) - Deborah Hersman, chairman of the U.S. National Transportation Safety Board, said the first day of an investigative hearing into battery issues on Boeing Co's 787 Dreamliner went well, with cooperative and forthcoming statements from the various parties involved.

She said it was too early to come to any conclusions or derive lessons from the hearing.

She said it was normal for the Federal Aviation Administration and regulated companies like Boeing to work closely together, but the NTSB wanted to ensure there was sufficient oversight of that process. That was an issue that would be addressed more during Wednesday's hearing, she said.

She said she was glad to hear "forthcoming" statements from Boeing about its testing regime for the new battery technology.

European regulator approves Boeing 787 design change

(Reuters) - European safety authorities approved design changes to batteries on board the 787 Dreamliner on Monday and said the aircraft could return to service once the new systems were installed.

"The applicable airworthiness directive will now be updated, which will allow the European-operated aircraft to return to service as soon as the modification (is) installed," the European Aviation Safety Agency said in an emailed statement.

The U.S. Federal Aviation Administration approved the battery modifications on Friday. On Monday, Reuters reported its European equivalent was backing the decision.

Boeing says it thought 787 battery short would not lead to fire

(Reuters) - Boeing Co said on Tuesday that it did not believe during design and testing that a fire could occur in the lithium-ion battery system that failed on its 787 Dreamliner.

Under questioning at an investigative hearing by the National Transportation Safety Board in Washington, Mike Sinnett, Boeing's chief 787 engineer, said: "Any form of internal short circuit could lead to venting of that cell and release of electrolyte, but nothing more than that."

He added: "The only time we were ever able to make a cell vent with fire was with significant overcharging."

Separately, Ali Bahrami, the transport airplane manager for the Federal Aviation Administration, said the special conditions the agency established for the battery addressed safety concerns for the aircraft "quite eloquently."

He added: "We did the best we could under the circumstances and the knowledge that existed" at the time to develop standards for the battery.

Dreamliner: The modern aircraft plagued with problems

Cockpit Brakes Engines Fuel tanks Electronics

When Boeing's 787 Dreamliner completed its first test flight in December 2009, it was hailed as the future of commercial aviation.

But the project was plagued with problems from the start and was 30 months behind schedule at the time of its maiden flight.

Here are some of the innovations that made the Dreamliner the most eagerly anticipated aircraft for decades.

Technical information

• It can fly between 7,650 to 8,200 nautical miles (14,200 to 15,200 kilometres). Boeing says it is the first mid-size aircraft to be able to carry passengers distances normally only reached by big aircraft
• It flies at Mach 0.85, which is a similar speed to most of today's fastest passenger planes

• Half of the plane is made from lightweight composite materials, including carbon fibre. That compares with 12% on the 777 model. The rest of the Dreamliner is made up of 20% aluminium, 15% titanium, 10% steel and 5% from other materials
• Lithium-ion batteries are being used on a large scale for the first time. The Dreamliner requires powerful batteries because there is more of a reliance on electrical systems than in previous aircraft
• The combination of lightweight materials and new engines from General Electric and Rolls Royce means that the Dreamliner is 20% more fuel efficient than equivalent aircraft being used today

• Boeing says it is also 60% less noisy

• Approximately 70% of the aircraft parts are made in the US

History of the Dreamliner

Continue reading the main story

Timeline

• 2004: Dreamliner programme launches with the aircraft billed as the most environmentally friendly plane ever designed. It is Boeing's first new aircraft since 1995. Japan's All Nippon Airways (ANA) places an order for 50 Dreamliners

• 2006: Boeing takes a record order for new planes, powered by the popularity of the Dreamliner

• 2009: The first test flight takes place on 15 December, 30 months behind schedule

• 2011: Boeing delivers the first Dreamliner to ANA on 26 September - three years late

• 2012: In July, a fan shaft on an engine fails during runway tests at Charleston International Airport, South Carolina

• 4 Dec, 2012: A United Airlines 787 makes an emergency landing in New Orleans after electrical problems

• 13 Dec, 2012: A Qatar Airways 787 is grounded after electrical power distribution problems


• 17 Dec, 2012: United Airlines finds an electrical problem in a second aircraft

• 2013: On 7 Jan, a fire starts in a lithium ion battery pack of a Japan Airlines 787 in Boston

• 8 Jan, 2013: United Airlines found faulty wiring to battery

• 8 Jan, 2013: Take-off aborted after about 150 litres of fuel spills from Japan Airlines Dreamliner in Boston

• 9 Jan, 2013: ANA cancels a flight after a computer wrongly reports a brake problem

• 11 Jan, 2013: An oil leak is found in an engine of an ANA 787 flight

• 11 Jan, 2013: A cockpit window on an ANA Dreamliner cracks during a Japanese domestic flight. The plane lands safely with no injuries

• 13 Jan, 2013: The same aircraft experiences another, separate fuel leak while undergoing tests in Tokyo

• 15 Jan, 2013: Another Dreamliner operated by ANA makes an emergency landing at Takamatsu in Japan after a smoke alert goes off

• 16 Jan, 2013: Japan's two main airlines, ANA and Japan Airlines, ground their Dreamliners

• 17 Jan, 2013: All Dreamliners are grounded amid safety concerns

• 13 March 2013: The US airline regulator approves a plan to redesign the problematic lithium-ion batteries

Aircraft orders

There are two Dreamliner models. Model 787-8 has already been delivered and has been experiencing technical difficulties. The average price in 2012 was $206.m (£128m). The first delivery of the bigger Dreamliner, model 787-9, is expected in 2014.

Below are the numbers of 787-8 models ordered and how many have been delivered between January 2004 and December 2012.

Dreamliners ordered and delivered (787-8)
Airline	Number ordered Jan 04-Dec 2012	Number delivered
Source: Boeing http://www.bbc.co.uk/news/business-21060541#panel4
Aeroflot - Russian Airlines	22
Aeromexico	2
Air Astana (Kazakhstan)	3
Air Berlin	15
Air Canada	37
Air Europa	8
Air India	27	6
Air Niugini (Papua New Guinea)	1
ALAFCO (Kuwait)	8
All Nippon Airways	36	17
Avianca (Colombia)	15
Aviation Capital Group	5
Azerbaijan Airlines	2
Biman Bangladesh Airlines	4
British Airways	8
Business Jet / VIP Customer(s)	3
China Southern Airlines	10
CIT Leasing Corporation	10
Delta Air Lines	18
Ethiopian Airlines	10	4
Gulf Air	16
Hainan Airlines (China)	10
Icelandair	1
International Lease Finance Corporation	33
Japan Airlines	25	7
Jet Airways (India)	10
Kenya Airways	9
LAN Airlines (Chile)	22	3
Lion Air (Indonesia)	5
LOT Polish Airlines	8	2
Norwegian	3
Oman Air	6
PrivatAir (Switzerland)	2
Qantas (Australia)	15
Qatar Airways	30	5
Republic of Iraq	10
Royal Air Maroc (Moroccan)	4
Royal Jordanian	7
Transaero Airlines (Russian)	4
Travel Service (Czech Republic)	1
TUI Travel PLC (UK)	13
Unidentified Customers	7
United Air Lines (US)	36	6
Uzbekistan Airways	2
Total

Lufthansa strike causes flight cancellations

German airline Lufthansa has cancelled the majority of its flights scheduled for Monday due to a strike over pay.

The airline said only 32 of its flights would run as planned, out of more than 1,700 originally scheduled.

Flights to and from London, Manchester, Birmingham, Newcastle, Glasgow, Dublin, Aberdeen and Edinburgh will be hit. German airports affected are Frankfurt, Munich, Dusseldorf and Hamburg.
The airline said the strike, the second in two months, was uncalled for.

"It's completely out of proportion," a Lufthansa spokesman was quoted as saying by the Reuters news agency.

"Especially given that four further dates for pay talks had already been agreed upon."

Only 20 of its planned 1,650 short-haul flights are to go ahead, while 12 of its 73 scheduled long-haul flights will do so.

Common tactic Ground staff have called a one-day strike amid an ongoing pay dispute with the airline.

Like many airlines, Lufthansa is looking to cut costs in the face of stiff competition from low-cost carriers and big Gulf airlines, as well as rising fuel prices.

Last week, Lufthansa rejected union demands for a 5.2% wage increase over the next 12 months.
Strikers are also looking for guarantees over job cuts.

Unions staged a similar one-day strike last month. Short "warning strikes" are a common tactic among German unions, designed to put pressure on wage negotiations.

In a statement on its website, Lufthansa said passengers should expect "massive" flight cancellations and delays that will start to affect long-haul flights from Sunday.

The airline said it was offering free alternative bookings.


http://www.bbc.co.uk/news/business-22238511

Sasar Jamaah Umrah, Garuda Gunakan Pesawat Baru

REPUBLIKA.CO.ID, JAKARTA -- Maskapai penerbangan Garuda Indonesia mengoperasikan dua pesawat baru Boeing 777-300ER dengan menyasar para pengguna jasa layanan penerbangan yang akan beribadah umrah.

"Untuk layanan umrah, kami akan datangkan dua pesawat pertama Boeing 777-300ER yang tiba pada Juni mendatang untuk melayani rute Jakarta-Jeddah mulai Juli 2013," kata VP Corporate Communications Garuda Indonesia, Pujobroto, di Jakarta, Senin (22/4).

Menurut dia, armada Boeing 777-300ER tersebut akan dilengkapi dengan pelayanan First Class yang dihadirkan untuk memberikan kenyamanan lebih kepada penumpang ketika melakukan penerbangan jarak jauh.
Pesawat itu sendiri, ujar dia, memiliki kapasitas kursi sebanyak 314 penumpang. Dari jumlah tersebut, kata dia, dapat dikonfigurasikan atau terdiri atas 8 kursi untuk First Class, 38 kursi untuk kelas bisnis, dan 268 kursi untuk kelas ekonomi.

Ia mengungkapkan, untuk dua pesawat kedua Boeing 777-300ER berikutnya akan tiba pada akhir tahun 2013. "Nanti direncanakan akan melayani rute Sydney-Jakarta-London mulai kuartal keempat tahun ini," katanya.

Pada tahun 2013, Garuda Indonesia akan mendatangkan sebanyak 24 pesawat, terdiri atas empat Boeing 777-300ER, tiga Airbus A330, 10 Boeing 737-800NG, dan tujuh Bombardier CRJ1000 NextGen.

Pujobroto memaparkan, sesuai dengan program Quantum Leap 2011-2015, Garuda pada tahun 2015 mendatang akan mengoperasikan sebanyak 194 pesawat dengan rata-rata usia di bawah lima tahun. Sedangkan saat ini, Garuda mengoperasikan sebanyak 106 pesawat dengan rata-rata usia 5,8 tahun.

Boeing to Begin Modifying 787s as FAA Approves Battery Improvements

- Modifications to existing fleets to begin; deliveries to resume soon

- Boeing to provide customers support for return to service

 

EVERETT, Wash., April 19, 2013 /PRNewswire/ -- Today's approval of battery system improvements for the 787 Dreamliner by the U.S. Federal Aviation Administration (FAA) clears the way for Boeing (NYSE: BA) and its customers to install the approved modifications and will lead to a return to service and resumption of new production deliveries.
"FAA approval clears the way for us and the airlines to begin the process of returning the 787 to flight with continued confidence in the safety and reliability of this game-changing new airplane," said Boeing Chairman, President and CEO Jim McNerney. "The promise of the 787 and the benefits it provides to airlines and their passengers remain fully intact as we take this important step forward with our customers and program partners."
The FAA's action will permit the return to service of 787s in the United States upon installation of the improvements. For 787s based and modified outside the United States, local regulatory authorities provide the final approval on return to service.
Approval of the improved 787 battery system was granted by the FAA after the agency conducted an extensive review of certification tests.  The tests were designed to validate that individual components of the battery, as well as its integration with the charging system and a new enclosure, all performed as expected during normal operation and under failure conditions. Testing was conducted under the supervision of the FAA over a month-long period beginning in early March.
"The FAA set a high bar for our team and our solution," said McNerney. "We appreciate the diligence, expertise and professionalism of the FAA's technical team and the leadership of FAA Administrator Michael Huerta and Secretary of Transportation Ray LaHood throughout this process.  Our shared commitment with global regulators and our customers to safe, efficient and reliable airplanes has helped make air travel the safest form of transportation in the world today."
Boeing, in collaboration with its supplier partners and in support of the investigations of the National Transportation Safety Board and the Japan Transport Safety Board, conducted extensive engineering analysis and testing to develop a thorough understanding of the factors that could have caused the 787's batteries to fail and overheat in two incidents last January.  The team spent more than 100,000 hours developing test plans, building test rigs, conducting tests and analyzing the results to ensure the proposed solutions met all requirements.
"Our team has worked tirelessly to develop a comprehensive solution that fully satisfies the FAA and its global counterparts, our customers and our own high standards for safety and reliability," said Boeing Commercial Airplanes President and CEO Ray Conner. "Through the skill and dedication of the Boeing team and our partners, we achieved that objective and made a great airplane even better."
Boeing also engaged a team of more than a dozen battery experts from across multiple industries, government, academia and consumer safety to review and validate the company's assumptions, findings, proposed solution and test plan.
The improved battery system includes design changes to both prevent and isolate a fault should it occur. In addition, improved production, operating and testing processes have been implemented. The new steel enclosure system is designed to keep any level of battery overheating from affecting the airplane or even being noticed by passengers.
"This is a comprehensive and permanent solution with multiple layers of protection," said Conner.  "The ultimate layer of protection is the new enclosure, which will ensure that even if a battery fails, there is no impact to the airplane and no possibility of fire. We have the right solution in hand, and we are ready to go.
"We are all very grateful to our customers for their patience during the past several months," said Conner. "We know it hasn't been easy on them to have their 787s out of service and their deliveries delayed. We look forward to helping them get back into service as quickly as possible."
Boeing has deployed teams to locations around the world to begin installing improved battery systems on 787s. Kits with the parts needed for the new battery systems are staged for shipment and new batteries also will be shipped immediately. Teams have been assigned to customer locations to install the new systems.  Airplanes will be modified in approximately the order they were delivered.
"The Boeing team is ready to help get our customers' 787s back in the air where they belong," said Conner.
Boeing will also begin installing the changes on new airplanes at the company's two 787 final-assembly plants, with deliveries expected to resume in the weeks ahead. Despite the disruption in deliveries that began in January, Boeing expects to complete all planned 2013 deliveries by the end of the year. Boeing further expects that the 787 battery issue will have no significant impact to its 2013 financial guidance.
More information is available on our special 787 website.
Forward-Looking Statements
Certain statements in this release may be "forward-looking" within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as "expects," "forecasts," "plans," "projects," "believes," "estimates," "targets," "anticipates," and similar expressions are used to identify these forward-looking statements. Forward-looking statements are based on our current expectations and assumptions, which may not prove to be accurate. These statements are not guarantees and are subject to risks, uncertainties, and changes in circumstances that are difficult to predict. Actual outcomes and results may differ materially from what is expressed or forecasted in these forward-looking statements. As a result, these statements speak to events only as of the date they are made and we undertake no obligation to update or revise any forward-looking statement, except as required by federal securities laws. Specific factors that could cause actual results to differ materially from forward-looking statements include, but are not limited to, the effect of economic conditions in the United States and globally, and general industry conditions as they may impact us or our customers, as well as the other important factors disclosed previously and from time to time in our filings with the Securities and Exchange Commission.
Contact:
Marc Birtel
Boeing Commercial Airplanes Media Relations
+1 425 266 5822
marc.r.birtel@boeing.com
SOURCE Boeing

Boeing Adjusts 747-8 Production Rate

EVERETT, Wash., April 19, 2013 /PRNewswire/ -- Boeing (NYSE: BA) announced that it will adjust the production rate for the 747-8 program from two airplanes to 1.75 airplanes per month because of lower market demand for large passenger and freighter airplanes.
Boeing will continue to monitor market conditions and their effect on production rates moving forward. The company expects long-term average growth in the air cargo market to resume in 2014, and forecasts a demand for 790 large airplanes (such as the 747-8 Intercontinental) to be delivered worldwide over the next 20 years.
The 747-8 family provides airlines with double-digit improvements in fuel burn, operating costs and emissions, while being 30 percent quieter and adding more capacity. To date, there are 110 orders for passenger and cargo versions of the 747-8, 46 of which have been delivered.
The first delivery of an airplane at the new production rate is expected in early 2014. The production rate change is not expected to have a significant financial impact.
Forward-Looking StatementsCertain statements in this release may be "forward-looking" within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as "expects," "forecasts," "plans," "projects," "believes," "estimates," "targets," "anticipates," and similar expressions are used to identify these forward-looking statements. Forward-looking statements are based on our current expectations and assumptions, which may not prove to be accurate. These statements are not guarantees and are subject to risks, uncertainties, and changes in circumstances that are difficult to predict. Actual outcomes and results may differ materially from what is expressed or forecasted in these forward-looking statements. As a result, these statements speak to events only as of the date they are made and we undertake no obligation to update or revise any forward-looking statement, except as required by federal securities laws. Specific factors that could cause actual results to differ materially from forward-looking statements include, but are not limited to, the effect of economic conditions in the United States and globally, and general industry conditions as they may impact us or our customers, as well as the other important factors disclosed previously and from time to time in our filings with the Securities and Exchange Commission.
Contact:
Doug Alder
Boeing Commercial Airplanes Media Relations
+1 206-544-1814
doug.alder-jr@boeing.com
SOURCE Boeing

Tail section for Qatar Airways’ first A380 rolls out of paint shop

 

22 April 2013 Press Release

 

The vertical tail section for the first A380 for Qatar Airways has been painted with the airline’s trademark oryx logo at Airbus facilities in Hamburg. The painting was completed earlier this week and the assembly of the airline’s first A380 is set to begin this month, for delivery in early 2014. 

The distinctive Qatar Airways logo is comprised of a violet oryx with silver streaks and the paint was applied over a period of 10 days. 

Qatar Airways will become the eleventh operator of the A380 when it takes delivery of its first aircraft in 2014. The airline has firm orders for ten A380s and will operate the aircraft on its most premier routes.

airbus.com

IAG and British Airways select the A350

A350-1000 to take major role in British Airways future long-haul 

22 April 2013 Press Release

After a thorough selection process, International Airline Group (IAG), and British Airways have signed a Memorandum of Understanding (MoU) to buy 18 Airbus A350-1000 aircraft plus 18 options, as part of the airline’s on-going long-haul aircraft fleet renewal and modernisation strategy.

IAG, owner of both British Airways and Iberia, has also secured commercial terms and delivery slots that could lead to firm orders for Iberia. Firm orders will only be made when Iberia is in a position to grow profitably, having restructured and reduced its cost base.

The choice of the A350-1000 follows British Airways’ decision in 2007 to buy 12 Airbus A380s, the first of which will be delivered this summer. Operating the A380 and A350 together delivers real value to the world’s leading airlines because it allows them to match aircraft capacity to traffic demand on any route.

“The A350-1000 will bring many benefits to our fleet. Its size and range will be an excellent fit for our existing network and, with lower unit costs, there is an opportunity to operate a new range of destinations profitably. This will not only bring greater flexibility to our network but also more choice for our customer,” said Willie Walsh, IAG Chief Executive.

Across all its aircraft families Airbus’ unique approach ensures that aircraft share the highest commonality in airframes, on-board systems, cockpits and handling characteristics. This reduces significantly operating costs for airlines. In addition, with only minimal additional training, pilots can transition between these aircraft more efficiently.

“This is an important announcement from one of the world’s most respected and influential airline brands,” said John Leahy, Chief Operating Officer, Customers. “The A380 and the A350 are perfectly matched for greener long haul operations and demonstrate environmental leadership. We are simply delighted that British Airways has chosen the A350 to spread its global wings and its iconic livery.”

The A350-1000 is the largest member of the A350 XWB (Xtra Wide-Body) Family seating up to 350 passengers in three classes, with a range capability of 8,400 nautical miles (15,500 km). The A350 XWB Family includes the A350-900 and A350-800 seating 314 and 270 passengers respectively, offering airlines the ability to match the aircraft to their network needs and thereby guaranteeing optimum revenue potential. Compared to its nearest established competitor, the A350 XWB Family reduces fuel burn by 25 per cent.

British Airways currently operates a total of 112 A320 Family aircraft. It is one of the world’s only airlines to operate all members of the A320 Family (A318, A319, A320 and A321). British Airways first became an Airbus operator in 1988, when it began flying A320s. The airline added the A319s to its fleet in 1999 and the A321 in 2004.

airbus.com

US safety board seeks lesson in Boeing 787 battery fire

(Reuters) - The top U.S. transportation safety agency said on Tuesday it is looking beyond what caused a Boeing Co (BA.N) Dreamliner battery fire in January to find larger lessons that can be applied to the airplane certification process and to new technologies.
A two-day public hearing by the National Transportation Safety Board that began on Tuesday delved into what Boeing and the Federal Aviation Administration knew about volatile lithium-ion batteries when they proposed their use on the Dreamliner and how they addressed the risks.
Questioners also examined how the batteries were tested and how the FAA and Boeing responded when better tests became available after the system was approved.
The hearing is part of the NTSB's probe into what caused a battery to catch fire and burn on a parked 787 Dreamliner in Boston in January. The battery fire, one of two failures that month, took more than an hour to put out. Video at the hearing showed smoke billowing from the cabin when fire fighters opened the plane's rear door. The first fire crew arrived within a minute of the report of the blaze, officials said.
"We are looking for lessons learned, not just for the design and certification of the failed battery, but for knowledge that can be applied to emerging technologies," NTSB Chairman Deborah Hersman said in opening the hearing.
With witnesses discussing voltage, impedance and other battery properties, the hearing was often highly technical. Simultaneous translation for officials from France and Japan occasionally made it difficult for questioners to pinpoint answers, discern meaning and ask follow-ups.
During the hearing, Hersman sometimes played the role of referee, asking questioners if they got their answers and warning Boeing executives against "obfuscation." Participants even struggled to agree on a definition of "thermal runaway" to describe how a battery overheats.
But the hearing revealed that the FAA and Boeing stand by their design and certification decisions.
Asked what, in hindsight, Boeing would do differently, Mike Sinnett, Boeing's chief 787 engineer, said the system worked by preventing a catastrophe and "from that perspective, that validates our process."
He added the incident taught Boeing it should challenge test assumptions, use tougher test criteria and "seek to understand the test criteria a little bit more."
The FAA, answering the same question, said it needs to ensure it can "dig deeper to find out what (an incident) is telling us, so that we can absorb that information and roll it into future designs," said Ali Bahrami, the transport airplane manager for the FAA.
Under the current FAA approval process, however, the agency stays at a high level, approving how Boeing will comply with requirements, but leaving it up to Boeing and its suppliers to conduct tests and analysis. The FAA does not conduct its own tests, but serves as "an independent set of eyes," Bahrami said.
The NTSB plans to delve more deeply on Wednesday into the close ties between the FAA and the companies it regulates, Hersman said.
Much of the discussion on Tuesday focused on tests that Boeing and its partners performed on the battery. Officials from GS Yuasa Corp (6674.T) of Japan, which makes the 787 battery, and Thales SA (TCFP.PA) of France, which makes the battery system, were on hand to help answer those queries.
The tests had predicted the chance of a fire failure was one in 10 million flight hours, but those results were proved wrong when two batteries overheated and emitted smoke within two weeks on two airplanes. The second incident, during a flight in Japan, is being investigated by the Japanese. The entire fleet of planes had less than 60,000 hours of flight time.
Boeing said that, during design and testing, it did not believe fire could occur in the lithium-ion battery system on the Dreamliner.
"Any form of internal short circuit could lead to venting of that cell and release of electrolyte, but nothing more than that," Sinnett said.
Speaking after the hearing, Hersman said that some of the testing done on the battery "really didn't replicate the worst-case conditions that we saw in the events of January."
Bahrami, the FAA manager, said that special conditions the agency established for the 787 battery addressed safety concerns for the aircraft "quite eloquently."
"We did the best we could under the circumstances and the knowledge that existed" at the time, he said.
The NTSB also released a timeline of the FAA's approval for the Dreamliner battery and a less extensive lithium-ion system for the Airbus A380 superjumbo jet.
The timeline showed the FAA approved Boeing's system before Airbus, even though both applied in the same year, and that Boeing's use was much more extensive.
It also showed that the FAA asked an outside industry group known as RTCA to develop standards for lithium ion batteries just after a fire broke out at SecuraPlane, the company making the charger for Boeing's Dreamliner system.
The industry group finished the standard, known as DO-311, five months after the FAA approved Boeing's battery system. But Boeing and the FAA never applied it to the Dreamliner.
"Why didn't you rebaseline" using the new standard? Hersman asked.
Steve Boyd, an FAA manager, said the RTCA tests were "in some cases more severe than they needed to be."
Boeing has redesigned the system in recent months and tested it to DO-311 standards as part of the FAA certification.
Last week, the FAA approved the new system, clearing the way for Boeing to install it in the 50 aircraft it has delivered to airlines around the world.
Commercial flights are expected to start as early as this month.

NTSB looks for cause, larger lessons in Boeing 787 battery fire

(Reuters) - The top U.S. transportation safety regulator is looking beyond what caused a Boeing Co Dreamliner battery to fail in January at larger lessons that can be applied to the airplane certification process and new technologies.
A two-day hearing at the National Transportation Safety Board headquarters in Washington that began on Tuesday is part of the agency's investigation into what caused a battery to catch fire and burn on a parked 787 Dreamliner in Boston in January. The battery fire occurred after passengers had deplaned, and workers noticed smoke in the cabin. It took firefighters more than an hour to put the fire out.
"We are looking for lessons learned, not just for the design and certification of the failed battery but for knowledge that can be applied to emerging technologies," NTSB Chairman Deborah Hersman said in opening the hearing. "It's imperative to understand how to best oversee their development and certification."
The proceeding is being simultaneously translated into French and Japanese to accommodate journalists and observers from Europe and Japan. In addition to Boeing and the Federal Aviation Administration, the NTSB has called witnesses from GS Yuasa Corp of Japan, which makes the 787 battery, and Thales SA of France, which makes the battery system.

Boeing says may apply tighter test criteria for new technologies

(Reuters) - A senior Boeing Co executive on Tuesday said his company may apply tighter test criteria for new technologies to be used on new aircraft after problems with lithium ion batteries that have grounded the entire fleet of 787 Dreamliners.

"Looking back, I would challenge our test assumptions," Mike Sinnett, Boeing's chief 787 engineer, told an investigative hearing of the National Transportation Safety Board in Washington. "In retrospect ... we may apply tighter test criteria or seek to understand the test criteria a little bit more on areas of new technology."

Too soon to say if 787 battery issues were design error: Boeing

(Reuters) - A top Boeing Co executive said on Tuesday it was too early to determine whether problems with the lithium ion batteries on its new 787 Dreamliner that led to the plane's grounding in January stemmed from a design error or some manufacturing problem.
Mike Sinnett, Boeing's chief 787 engineer, told an investigative hearing of the National Transportation Safety Board that the batteries had been through thousands of hours of testing before the new airliner began flying, plus additional hours during flight testing.
He said the batteries were part of a layered system that sought to avert a safety problem on board the airplane. He said there was no evidence that the batteries involved in two issues in Japan had been subjected to any abuse.
(Reporting By Andrea Shalal-Esa; Editing by Gerald E. McCormick and Grant McCool)
(This story was refiled to correct the spelling of Boeing executive's name to Sinnett from Sinnette in the second paragraph)

Japan's government: Permission to resume Boeing's 787 may come Thursday

(Reuters) - Japan's Civil Aviation Authority said final permission to resume Boeing Co's grounded Dreamliner flights may come as early as Thursday.

Boeing engineers on Monday began installing reinforced lithium-ion battery systems on the Boeing 787 jets in Japan, starting with launch customer All Nippon Airways. That should make the first 787 ready to restart flights in about a week.

CORRECTED-Too soon to say if 787 battery issues were design error -Boeing

(Corrects spelling of Boeing executive's name to Sinnett from Sinnette in 2nd paragraph)


(Reuters) - A top Boeing Co executive said on Tuesday it was too early to determine whether problems with the lithium ion batteries on its new 787 Dreamliner that led to the plane's grounding in January stemmed from a design error or some manufacturing problem.
Mike Sinnett, Boeing's chief 787 engineer, told an investigative hearing of the National Transportation Safety Board that the batteries had been through thousands of hours of testing before the new airliner began flying, plus additional hours during flight testing.
He said the batteries were part of a layered system that sought to avert a safety problem on board the airplane. He said there was no evidence that the batteries involved in two issues in Japan had been subjected to any abuse.

Dreamliner set to fly in a week as Boeing fixes battery

(Reuters) - Boeing began installing reinforced lithium-ion battery systems on five 787 jets in Japan on Monday, starting a process that should make the first commercial Dreamliners ready to fly again in about a week.
Boeing's Dreamliners have been grounded since regulators ordered all 50 planes out of the skies in mid-January after batteries on two of them overheated. U.S. regulators approved a new battery design on Friday, clearing the way for installation.
The grounding has cost Boeing an estimated $600 million, halted deliveries and forced some airlines to lease alternative aircraft. Several airlines have said they will seek compensation from Boeing, potentially adding to the plane maker's losses. Investors expect to learn more about the costs when Boeing reports second-quarter earnings on Wednesday.
The first five jets to receive the new strengthened battery system all belong to All Nippon Airways, the airline that launched the first commercial Dreamliner service in 2011.
"Our first priority is to get the existing fleet back into the air," Larry Loftis, vice president and general manager of the 787 program at Boeing, told European reporters.
Ten teams of some 30 engineers each have been dispatched by Boeing worldwide to install the stronger battery casing and other components designed to prevent a repeat of the meltdowns that led to the first U.S. fleet grounding in 34 years.
The plan approved by the Federal Aviation Administration calls for Boeing to encase the lithium-ion batteries in a steel box, install new battery chargers, and add a duct to vent gases directly outside the aircraft in the event of overheating.
European authorities are expected to follow suit in approving the battery design, a spokesman for Europe's aviation safety body said.
ANA is the world's biggest operator of the lightweight carbon-composite aircraft, with 17 of the planes. The next-biggest is Japan Airlines Co with seven jets, followed by United Airlines and Air India with six each.
ANA plans about 100 to 200 round-trip test flights in May of its repaired aircraft before carrying passengers again in June, sources knowledgeable about ANA's operations have said.
The flights will check the safety of the aircraft, and allow ANA's 180 Dreamliner pilots to get accustomed to flying it again and renew their licenses after more than a three-month break.
United, the only U.S. airline with Dreamliners, currently has 787 domestic flights set to start May 31. A person familiar with the matter said United expects work on its 787s to begin as early as this week.
In Addis Ababa, a source at Ethiopian Airlines, which had taken delivery of four 787s before the grounding, said they could be flying in a matter of days. Boeing says each battery modification takes about five days to install.
Richard Aboulafia, of consulting firm Teal Group, said that although most airlines have large enough fleets to adjust in case the 787s were delayed further, the FAA go-ahead gives them the ability to proceed with new routes, like United's Denver-Tokyo Narita service planned for June 10.
WHAT WENT WRONG?
Although the plane is deemed safe to fly, investigators in the U.S. and Japan have yet to unravel what caused a 787 battery onboard an ANA jet in Japan and one on another JAL Dreamliner parked at Boston's Logan Airport to overheat.
The National Transportation Safety Board is due to hold public hearings on Tuesday and Wednesday to advance its probe into the cause of a fire that destroyed a 787 battery in Boston in January.
Loftis said Boeing believed it had anticipated "the whole universe of possible causes" after exhaustive studies and testing to devise the battery fix.
"We went to great lengths to question every assumption we made in the initial design and greatly expanded the thought process for what could be potential causes," Loftis said.
"It is possible we will never know the real cause," he added. "If we learn anything new we will make changes as required."
Loftis said the crisis would not affect the development of other jets and would not derail Boeing's plans to double 787 production to 10 a month by the end of the year. Nor would it delay the next version of the 787, known as the 787-9.
"We aren't changing forecasts for future (787) orders because of this incident," he said.
Boeing has continued to produce Dreamliners at the rate of five a month during the three-month grounding. Deliveries are likely to resume within weeks, Loftis said.
The 787 is the first jetliner to be fitted with lithium-ion main power batteries, which are lighter and smaller but potentially more volatile than the nickel-cadmium sources used on most planes. The batteries are mainly used for ground power, rather than functions critical to maintaining flight.
Loftis said the extra steel housing and other accessories fitted to the batteries to keep them safe weighed about 150 lbs (68 kilograms), cancelling out the batteries' weight savings.
Boeing gave some thought to switching back to traditional nickel-cadmium as rival Airbus has done, but found no reason to do so, he said.
Some aircraft industry sources say space limitations where the batteries are installed on the Dreamliner might have reduced Boeing's options.

UPDATE 2-US safety board seeks lesson in Boeing 787 battery fire

(Reuters) - The top U.S. transportation safety agency said on Tuesday it is looking beyond what caused a Boeing Co Dreamliner battery fire in January to find larger lessons that can be applied to the airplane certification process and to new technologies.
A two-day public hearing by the National Transportation Safety Board that began on Tuesday delved into what Boeing and the Federal Aviation Administration knew about volatile lithium-ion batteries when they proposed their use on the Dreamliner and how they addressed the risks.
Questioners also examined how the batteries were tested and how the FAA and Boeing responded when better tests became available after the system was approved.
The hearing is part of the NTSB's probe into what caused a battery to catch fire and burn on a parked 787 Dreamliner in Boston in January. The battery fire, one of two failures that month, took more than an hour to put out. Video at the hearing showed smoke billowing from the cabin when fire fighters opened the plane's rear door. The first fire crew arrived within a minute of the report of the blaze, officials said.
"We are looking for lessons learned, not just for the design and certification of the failed battery, but for knowledge that can be applied to emerging technologies," NTSB Chairman Deborah Hersman said in opening the hearing.
With witnesses discussing voltage, impedance and other battery properties, the hearing was often highly technical. Simultaneous translation for officials from France and Japan occasionally made it difficult for questioners to pinpoint answers, discern meaning and ask follow-ups.
During the hearing, Hersman sometimes played the role of referee, asking questioners if they got their answers and warning Boeing executives against "obfuscation." Participants even struggled to agree on a definition of "thermal runaway" to describe how a battery overheats.
But the hearing revealed that the FAA and Boeing stand by their design and certification decisions.
Asked what, in hindsight, Boeing would do differently, Mike Sinnett, Boeing's chief 787 engineer, said the system worked by preventing a catastrophe and "from that perspective, that validates our process."
He added the incident taught Boeing it should challenge test assumptions, use tougher test criteria and "seek to understand the test criteria a little bit more."
The FAA, answering the same question, said it needs to ensure it can "dig deeper to find out what (an incident) is telling us, so that we can absorb that information and roll it into future designs," said Ali Bahrami, the transport airplane manager for the FAA.
Under the current FAA approval process, however, the agency stays at a high level, approving how Boeing will comply with requirements, but leaving it up to Boeing and its suppliers to conduct tests and analysis. The FAA does not conduct its own tests, but serves as "an independent set of eyes," Bahrami said.
The NTSB plans to delve more deeply on Wednesday into the close ties between the FAA and the companies it regulates, Hersman said.
Much of the discussion on Tuesday focused on tests that Boeing and its partners performed on the battery. Officials from GS Yuasa Corp of Japan, which makes the 787 battery, and Thales SA of France, which makes the battery system, were on hand to help answer those queries.
The tests had predicted the chance of a fire failure was one in 10 million flight hours, but those results were proved wrong when two batteries overheated and emitted smoke within two weeks on two airplanes. The second incident, during a flight in Japan, is being investigated by the Japanese. The entire fleet of planes had less than 60,000 hours of flight time.
Boeing said that, during design and testing, it did not believe fire could occur in the lithium-ion battery system on the Dreamliner.
"Any form of internal short circuit could lead to venting of that cell and release of electrolyte, but nothing more than that," Sinnett said.
Speaking after the hearing, Hersman said that some of the testing done on the battery "really didn't replicate the worst-case conditions that we saw in the events of January."
Bahrami, the FAA manager, said that special conditions the agency established for the 787 battery addressed safety concerns for the aircraft "quite eloquently."
"We did the best we could under the circumstances and the knowledge that existed" at the time, he said.
The NTSB also released a timeline of the FAA's approval for the Dreamliner battery and a less extensive lithium-ion system for the Airbus A380 superjumbo jet.
The timeline showed the FAA approved Boeing's system before Airbus, even though both applied in the same year, and that Boeing's use was much more extensive.
It also showed that the FAA asked an outside industry group known as RTCA to develop standards for lithium ion batteries just after a fire broke out at SecuraPlane, the company making the charger for Boeing's Dreamliner system.
The industry group finished the standard, known as DO-311, five months after the FAA approved Boeing's battery system. But Boeing and the FAA never applied it to the Dreamliner.
"Why didn't you rebaseline" using the new standard? Hersman asked.
Steve Boyd, an FAA manager, said the RTCA tests were "in some cases more severe than they needed to be."
Boeing has redesigned the system in recent months and tested it to DO-311 standards as part of the FAA certification.
Last week, the FAA approved the new system, clearing the way for Boeing to install it in the 50 aircraft it has delivered to airlines around the world.
Commercial flights are expected to start as early as this month.

Garuda Indonesia Sewa Pesawat Secara Syariah

TEMPO.CO, Jakarta - Maskapai penerbangan nasional Garuda Indonesia menjalin kerja sama dengan perusahaan leasing dan financing asal Kuwait, Aviation Lease and Finance Company (ALAFCO), untuk mendatangkan dua pesawat Boeing 777-300 ER pada Juni dan Juli 2013. Kerja sama ini dijalankan dengan prinsip-prinsip syariah.

"Perjanjian ini merupakan milestone penting bagi Garuda karena ini pertama kali kami menggunakan syariah," kata Direktur Utama Garuda Indonesia Emirsyah Satar dalam sambutannya di acara penandatangan kerja sama Garuda Indonesia-ALAFCO di Cengkareng, Jakarta, Senin, 22 April 2013.

Ia menambahkan, pesawat didatangkan dengan sistem sewa dari ALAFCO selama 12 tahun. "Untuk kerja sama ini kami menggunakan sistem ijarah," kata Emirsyah.

Ijarah adalah salah satu prinsip dalam syariah di mana pihak pertama menyewakan barang kepada pihak kedua tanpa laba. Dalam hal ini, pesawat Boeing 777-300ER dibeli oleh ALAFCO untuk kemudian disewa oleh Garuda Indonesia senilai US$ 315 juta per unit.

Bagi ALAFCO ini adalah kali ketiga pihaknya bekerja sama dengan maskapai dari Asia. Sebelumnya, ALAFCO sudah bekerja sama dengan maskapai dari Malaysia, Vietnam, dan Cina. Tahun ini, Garuda Indonesia akan mendatangkan 24 pesawat, terdiri dari empat Boeing 777-300ER, tiga Airbus A330, 10 Boeing 737-800 NG, dan tujuh Bombardier CRJ1000 NextGen.

Garuda secures sharia loans to fund new aircraft purchase

National flag carrier Garuda Indonesia signed a loan agreement with Kuwait-based aviation lease and finance company Alafco on Monday to finance new aircraft that will help strengthen the airline’s international network.

The agreement was signed by Garuda president director and CEO Emirsyah Satar and Alafco’s chairman, Ahmad A. Alzabin, in Cengkareng, Banten.

Alafco will finance two Boeing 777-300 Extended Range (ER) aircraft worth US$630 million for delivery in June and July.

The two B777-300ERs will be the first in Garuda’s fleet.

“The two aircraft are part of 10 B777-300ERs that were ordered from Boeing, four of which will be delivered this year. The first two will serve Jakarta–Jeddah [Saudi Arabia] in July, and the next two will serve Sydney [Australia]–Jakarta-London [the UK] in the fourth quarter of this year,” Emirsyah said in a statement sent to The Jakarta Post, adding that the new planes would replace the carrier’s aging fleet of B747-400s.

The Kuwaiti firm will finance the wide-body planes through a sale and lease-back scheme.

From the operations point of view, the new fuel-efficient and state-of-the-art aircraft would provide more inflight comfort to passengers and allow Garuda to maintain more efficient operations, he said.

Each B777-300ER can carry more than 300 passengers and offers first-class service.

Emirsyah said that this was an important milestone for Garuda Indonesia since this was the first time the publicly listed firm had entered a new partnership in accordance with sharia principles.

Alzabin said that Alafco was very proud to have Garuda as a new client.

He said the airline’s management and board had been doing a remarkable job in turning the airline around and making it the pride of Indonesia.

“We are confident that the airline will continue to reach new heights in the coming years because Indonesia is a country where the aviation industry is growing rapidly on the back of a strong economy that is forecast to grow at an average rate of 6 to 7 percent annually until 2017 and be among the top six global economies by 2030,”
Alzabin said.

He added that the B777-300ER was the best aircraft in its class today and would provide Garuda and its customers with years of reliable service and comfort.

He expected to enter into more transactions with Garuda and support its future growth plans.

The airline will take delivery of 24 new aircraft at a cost of $1.57 billion throughout 2013 to support expansion of its domestic and international flight service.

This year’s deliveries comprise the four B777-300s, 10 B737-800 Next Generation (NG) aircraft, two Airbus 330-320s, one A330-300 and seven Bombardier CRJ1000 NextGen aircraft.

Apart from London’s Gatwick Airport, Garuda wants to expand its international service from Jakarta to Brisbane, Australia and Auckland, New Zealand.

The airline expects to fly each of the routes four times a week by the fourth quarter of 2013, increasing to seven times a week in the coming years.

Garuda currently operates 106 aircraft with an average age of 6.23 years, serving 34 domestic and 19 international destinations in Southeast Asia, the Middle East, North Asia, Australia and Europe.

To expand its international routes, the full-service carrier has signed code-share agreements with 11 international airline partners serving 35 international destinations.


http://www.thejakartapost.com/news/2013/04/23/garuda-secures-sharia-loans-fund-new-aircraft-purchase.html

GARUDA Raih Pembiayaan Syariah Ijarah dari ALAFCO Kuwait Rp6,12 Triliun

BISNIS.COM, TANGERANG--PT Garuda Indonesia Tbk mendapat bantuan pembiayaan berbentuk syariah ijarah untuk dua pesawat Boeing 777-300ER senilai total US$630 juta (sekitar Rp6,12 Triliun) dari perusahaan leasing asal Kuwait, Aviation Lease and Finance Company (ALAFCO).

Pemberian pembiayaan untuk dua pesawat B777-300ER ini ditandai dengan penandatangan perjanjian kerjasama antara Direktur Utama Garuda Indonesia Emirsyah Satar dan Chairman ALAFCO Ahmad A. Alzabin.

"ALAFCO merupakan salah satu perusahaan leasing company besar, kita kerjasama untuk pembiayaan dua pesawat B777-300 ER. Ini pesawat pertama bagi Garuda dan maskapai dunia," kata Emirsyah disela-sela acara penandatanganan perjanjian kerjasama di kantor Garuda, Cengkareng, Tangerang siang hari ini, Senin (22/4/2013).

Emirsyah menjelaskan untuk pembiayaan berbentuk syariah, merupakan yang pertama  bagi Garuda. Hal ini menjadi langkah awal bagi Garuda untuk meraup dana dari Timur Tengah dengan metode syariah.

"Sumber pendanaan di Timur Tengah itu banyak, dan bentuknya syariah. Kita akan coba meraup dana dari sana," ucap Emirsyah.

Dia menjelaskan pada tahun ini Garuda akan mendatangkan empat pesawat Boeing 777-300ER untuk melayani penerbangan jarak jauh. Empat pesawat ini merupakan bagian dari 10 pesawat Boeing 777-300ER yang sudah dipesan hingga 2015.

"Untuk kali ini baru dua pesawat Boeing 777 kami yang mendapat pembiayaan, untuk dua pesawat lagi yang ditarget datang hingga akhir 2013 masih dicari sumber pembiayaannya," ucap Emirsyah.

Ahmad A. Alzabin mengucapkan terimakasih Garuda mengajak kerjasama dengan ALAFCO. Dia menilai Garuda berhasil melaksanakan proses transformasi bisnisnya melalui program Quantum Leap 2011-2015, dan diharapkan akan terus berkembang dengan armada-armada barunya.

Pembiayaan dua pesawat Boeing 777-300ER berbentuk syariah ijarah, atau sewa-menyewa senilai US$315 juta per pesawat yang dimulai pada Juni dan Juli 2013.

"Pesawat Boeing 777-300ER merupakan pesawat dengan spesifikasi terbaik di kelasnya saat ini. Dengan spesifikasi ini, pengguna jasa Garuda akan mendapatkan kenyamanan lebih melalui pengoperasian armada tersebut," ucapnya.

Alzabin menambahkan penandatanganan kerjasama antara Garuda Indonesia dan ALAFCO untuk mendatangkan dua pesawat Boeing 777-300ER merupakan transaksi pertama yang dilakukan pihaknya di Indonesia. Dia berharap, kerjasama tersebut dapat terus berlanjut seiring dengan rencana pertumbuhan Garuda Indonesia di masa yang akan datang.

Direktur Keuangan Garuda Indonesia
Handrito Hardjono mengatakan kerjasama pembiayaan dengan ALAFCO untuk dua pesawat Boeing 777-300ER berbentuk syariah ijarah. Yakni bentuk pembiayaan sewa-menyewa.

"Pembiayaannya syariah ijarah, atau sales and lease back selama 12 tahun," kata Handrito.

ALAFCO and Garuda sign agreements for the sale and leaseback of 2 B777-300ER aircraft

ALAFCO Aviation Lease And Finance Company and PT Garuda Indonesia (Persero) Tbk jointly held a ceremony today in Jakarta to commemorate the signing of agreements for the sale and leaseback of 2 new Boeing 777-300ER aircraft. 

 

Under the transaction, Alafco shall acquire the aircraft from Garuda and lease them back to the airline for a period of twelve years. The aircraft are expected to be delivered from Boeing in June and July 2013.

Present at the signing ceremony were Alafco's Chairman, Mr. Ahmad A. Alzabin, and Garuda's Chief Executive Officer, Mr. Emirsyah Satar.

In a statement released after the ceremony, Mr. Alzabin said "ALAFCO is very proud to have Garuda as a new customer. The airline's management and Board have done a remarkable job in turning this airline around and making it the pride of Indonesia, and he is confident the airline will continue to reach new heights in the coming years. This transaction is the first for Alafco in Indonesia, where the aviation industry is growing rapidly on the back of a strong economy that is forecasted to grow at an average rate of 6-7% annually until 2017 and be among the top six global economies by 2030". He went on to say "the B777-300ER shall be the first in Garuda's fleet and is the best aircraft in its class today that will provide the airline and its customers years of reliable service and comfort. The leases for these two aircraft are structured in accordance with Islamic Shariah principles".

Finally, Alzabin said, "He looks forward to more opportunities to support Garuda's fleet expansion plan."

Alafco is a Shariah-based aircraft leasing company with its headquarters in Kuwait. The company is listed on the Kuwait stock exchange and its ticker symbol is ALAFCO. Alafco has in its portfolio 50 Boeing and Airbus aircraft that it leases to airlines around the world. 

 

 

Chairman of ALAFCO Mr. Ahmad Alzabin shaking hands with President & CEO of Garuda Indonesia after the signing ceremony

Enlarge »

 

 

http://www.ameinfo.com/alafco-garuda-sign-agreements-sale-leaseback-338617 

 

Qatar to seek compensation from Boeing for 787 grounding

Qatar Airways plans to seek compensation from Boeing over the grounding of its 787s, even as the airline remains "optimistic" that the twinjet will be cleared to fly soon.
"I will not be honest if I say we will not take any compensation from Boeing. We will," says the carrier's chief executive Akbar Al Baker today at an event in Chicago marking the airline's inaugural flight to the city on 10 April.
"What will be the compensation? What will be the size, I rather not discuss this in public," he adds.
Qatar Airways' expansion plans have been "severely disrupted" by the 787 grounding, says Al Baker. "We had to reschedule several expansion plans, downgrade capacity into markets in order to keep the integrity of our network," he adds.
The carrier, for example, had planned to launch its Doha-Chicago route with daily flights initially but is operating thrice weekly because its 787s are grounded. Qatar Airways plans to increase flight frequency on the route to a daily flight from 15 June.
Despite the disruption caused by the 787 grounding, Al Baker says he is optimistic that the 787 will return to commercial service soon. "I'm always an optimistic person, I always see the bright side. I'm confident that the 787 will fly soon," he says. "They [Boeing] have resolved all the teething problems."
Boeing has already placed engineers in Doha and are "pre-positioning" 787 spare parts "so they can change all the required hardware to enable the aircraft to get into the sky again soon", says Al Baker.
Qatar Airways had five 787s in its fleet before the type was grounded, following a move by the US Federal Aviation Administration (FAA) to ground the 787 on 16 January over issues relating to the aircraft's lithium-ion batteries. The Doha-based carrier has firm orders for 25 additional 787s and 30 options.
Boeing completed a final certification demonstration flight of the 787 with an improved battery design on 5 April and was expected to present data from its ground and flight tests to the FAA as the next step to get the twinjet back in commercial service.
Once the improved battery design is recertified by the FAA, Boeing will deploy it across the aircraft that had been delivered followed by aircraft awaiting delivery, before integrating the change into the 787 production line.


flightglobal.com

FAA clears 787s to re-enter service within a week

The Boeing 787 grounding could be lifted with 100 days of the US Federal Aviation Administration's order on 16 January, or within a week.
The US FAA approved on 19 April Boeing's solution to the thermal and electrical failures that caused lithium-ion batteries on two 787s to dangerously overheat. Boeing was preparing to release a service bulletin a few hours later that authorised airlines to install an improved battery. Installation kits pre-positioned in bonded Boeing storage facilities around the world could now be released to the 50 787s currently parked in nine different countries.
The next step in the process requires the FAA to issue a new airworthiness directive (AD) to supersede the order that grounded the 787s until the battery problem was resolved to the agency's satisfaction.
That step will be followed by a short waiting period to allow the public to submit comments. Boeing officials, however, believe the comment period on the superseding AD could be closed out within the five-day window it takes to install the battery kits, allowing the 787's to resume passenger-carrying flights almost immediately.
But a few important details about the return to flight process are still unclear. While the FAA's new AD will clear United Airlines to resume flights in the USA, other air transport regulators around the world must also accept the US regulator's decision on approving Boeing's solution.
The airlines also may have different procedures to return the aircraft to service. By complying with the new service bulletin, the 787s will be cleared by the FAA to resume operations as soon as the kits are installed. However, some airlines may want to perform their own flight tests before allowing passengers on board with the redesigned batteries, says Mike Sinnett, Boeing's 787 chief project engineer. Some airlines also have pilot and crew training requirements to meet that could extend the return to flight process.
"I think it's going to be in the near-term," Sinnett says.
Despite the few murky details, the future appears bright for the 787 programme for the first time since the auxiliary power unit battery overheated on a Japan Airlines 787 at Boston Logan airport on 7 January.
"It's been a long haul, that's for sure," Sinnett adds.
The overall financial impact on the programme has yet to be counted. Boeing amassed 300,000 labour hours alone to recertify the aircraft with redesigned batteries, to say nothing of the contractual fees it owes to the eight airlines operating the 787 and the several more whose aircraft have been even further delayed.
But Boeing has several reasons to be confident. The company never stopped buildings 787s during the grounding, and indeed quickened the pace to double the production rate to 10 aircraft per month by the end of the year. That means Boeing believes it can still deliver 65 787s in 2013, as it predicted shortly after the battery crisis began in January.
Perhaps most importantly, the FAA has cleared the 787 to re-enter service with 180min extended operations (ETOPS), allowing airlines to fly the same long-distance routes up to 3h flying distance from an emergency landing site.
The 180min ETOPS standard was reviewed by the FAA due to the battery and other electrical system failures that plagued the 787. in repsonse, Boeing used the grounding period to roll-in reliability improvements in several systems, including in power distribution panels and hydraulic tubing, Sinnett says.
The 787 was the first airline fleet to be grounded by the FAA since the DC-10 in 1979, but Boeing insists the type has enjoyed a service reliability standard that exceeds the introduction of the 777 in 1995.
Sinnett showed a chart that compared the number of "reportable events" to the FAA during the first 15 months of service for the 787 and 777. The 787 had 119 reportable events during that period, compared to 280 for the 777. The 777, of course, was never ordered grounded across the fleet despite the disparity in the nubmer of reportable events.


http://www.flightglobal.com/news/articles/faa-clears-787s-to-re-enter-service-within-a-week-384930/