TAAG Angola Airlines to strengthen network, cut staff

TAAG Angola Airlines is planning to strengthen its network and cut staff as it strives to hit breakeven within three years.
TAAG operates a fleet of 13 aircraft, comprising five Boeing 737-700s, three 737-200s, three 777-200ERs and two 777-300ERs. It has a further three 777-300ERs on order, plus three options.
Jacinto Junior, TAAG Angola Airlines international relations and commercial agreements director, told ATW, “We are not looking at new routes, but we will grow and increase frequencies to some of our existing destinations.”
He explained that TAAG will boost services to Dubai, Lisbon and Oporto in Portugal, Brazil’s Sao Paulo and Rio de Janeiro, and Havana.
In the longer-term, TAAG is also considering operations to Houston, Texas by taking over 3X-weekly Luanda-Houston flights, which are currently operated by fuel company SonAir as a charter service.
“TAAG temporarily transferred these flights to SonAir to operate the flights on our behalf. When we have means, we will take over from them because this is our right. It is a temporary agreement.” The flights would then be opened to scheduled traffic.
TAAG is also eyeing service to Paris. The Angolan carrier was forced to stop services when it was blacklisted in 2007. “We might resume flights, with at least two frequencies a week.” The new routes would be added when the three Boeing 777s arrive in 2015.
TAAG has reduced its staff in recent years from 6,000 to around 3,500, but this needs to be cut to 2,600-2,800, according to Junior. However, this may grow again as the carrier acquires the new aircraft.
“As the company grows and we bring in more aircraft, we may end up with around 3,000 because of the extra pilots and technicians,” said Junior. “We are not profitable, but we could be. We need time to get a return on investment. We hope to be able to break even in three years.”

China Airlines orders six Boeing 777s, leases four more

Computer rendering of 777-300ER in China Airlines’ livery. Courtesy, Boeing

Boeing has confirmed a $2 billion China Airlines order for six 777-300ERs, marking the entry of the 777 into the Taiwan carrier’s fleet. ATW first announced the order earlier this month.

China Airlines is in the middle of a long-haul fleet renewal and said it plans to operate the 777-300ERs on new transpacific flights between North America and Asia.

Boeing also said China Airlines also will lease four 777-300ERs from GE Capital Aviation Services (GECAS).

The carrier operates 23 Boeing 747-400s and 737-800s, and 21 747-400Fs.

Lufthansa, UCH offer slots for antitrust approval

Lufthansa and United Continental Holdings may give up airport slots in Frankfurt and New York to call off an antitrust probe of their A Plus-Plus transatlantic venture. Air Canada is also part of the venture.

According to a European Commission statement, European Union regulators are seeking comments from competitors and customers on the offer that would allow rivals to launch up to seven weekly flights between Frankfurt and New York JFK or Newark.

In 2009, the EC opened antitrust investigations into the A Plus-Plus transatlantic cooperation between the Star Alliance members.

A Lufthansa spokesperson told ATW, “This has nothing to do with Star Alliance, it is a topic of our A Plus-Plus transatlantic joint venture. While we do not share the concerns raised in the preliminary assessment, the A Plus-Plus carriers prefer a pragmatic resolution and have thus been discussing with the Commission commitments for the Frankfurt-New York route that are similar to commitments given in other alliance cases.”

Lufthansa operates daily Boeing 747-400 service on the Frankfurt-Newark route; United Continental operates 2X-daily Boeing 767-400 service. Lufthansa also operates a 2X-daily Airbus A330/A340 Frankfurt-New York JFK service. Delta Air Lines operates Boeing 767 Frankfurt-New York JFK service; Singapore Airlines uses one Airbus A380 on its New York JFK route.

Competitors may choose which arrival and departure slots at Frankfurt and New York they take on to allow as many as seven additional weekly flights, the offer states. This could rise to 21 weekly flights if a rival pulls out of the route.

The airlines’ rivals and customers have one month to tell regulators whether the offer would answer antitrust concerns.

IATA: air travel growth showing signs of stabilizing

IATA said weakening air travel growth is showing signs of stabilizing, with a 2.3% year-over-year lift in premium traffic for October, down from the 3.8% in September.

In its latest premium traffic monitor, IATA estimated that Hurricane Sandy, which disrupted travel to and from the US northeast at the end of the month, negatively impacted total air travel by just half a percentage point. Economy travel in October was up 4.4% from the prior year period, a slightly lower result than September’s 5%.

“Looking ahead, the soft demand environment that has weakened air travel growth over recent months is showing some signs of stabilizing,” IATA said in a statement. “Although world trade growth remains slow, the decline in business confidence seen throughout the third quarter has now reversed, with current levels indicating stability in the business environment in the months ahead.

Consequently, we would expect the downward pressure on growth in air travel, particularly in premium markets, to stabilize over coming months.”

The only region to record a decline in its premium traffic growth for the month of October was South America, falling 6.6% year-over-year. IATA noted the results could be partially due to Brazil’s weak third quarter GDP growth results.

Portugal scraps TAP sale

Portugal has reportedly abandoned plans to sell TAP Portugal to Synergy Aerospace, the owner of Colombian carrier Avianca.

According to local media reports, the Portuguese government rejected the bid from Synergy Aerospace because it failed to provide sufficient financial guarantees.

Portugal was aiming to complete the deal by the end of 2012. It plans to re-start the TAP privatization by 2014 and the sale of airports operator ANA will continue.

Portuguese daily Diario Economico claims Portugal is also now considering the closure of TAP Maintenance & Engineering Brazil at a cost of €300 million.

TAP Portugal could not immediately be reached for comment.

Air Bagan Fokker 100 crashes in Burma

An Air Bagan Fokker 100 crashed near Heho airport in Burma Dec. 25, killing one passenger and a person on the ground.

Air Bagan confirmed the crash and fatalities on its website, saying that flight W9-011 crashed during landing at 08:50 a.m. and was carrying 65 passengers and six crew.

“The emergency exit was opened as soon as the aircraft landed in the nearby field and passengers were evacuated by our cabin crew.  Eight passengers were injured as the aircraft caught fire and were taken to the nearest Sao San Tun hospital in Taung Gyi for treatment,” Air Bagan said.

The Burmese carrier identified those killed as a tour guide who was onboard and a motorcyclist who was hit by the aircraft.

“Air Bagan in collaboration with the Ministry of Transport is investigating into the cause of the accident.  We will take full responsibility for all passengers and will release further information as we receive it,” Air Bagan said in its statement.

Air Bagan operates one additional Fokker 100, two ATR 42s and two ATR 72s.

Bangkok Airways welcomes Two A320 to the fleet

Recently, Bangkok Airways by Mr. Puttipong Prasarttong – Osoth, Airline’s President, welcomed its Two latest A320 named “Maha Mongkol” and “Sawadee Umporn” at Suvarnabhumi Airport.

Bangkok Airways has progressively achieved with the arrival of its 20th and 21st aircraft. This type of aircraft consists of 162 economy class seats and will be served both domestic and international routes such as Chiang Mai, Phuket, Yangon (Myanmar), Siem Reap (Cambodia), Mumbai (India), and Dhaka (Bangladesh).

Presently, Bangkok Airways’ fleet consists of 21 aircrafts; 8 ATR72s, 5 A320s, and 8 A319s.

Abu Dhabi International Airport Registers 10% Increase in Passenger Traffic During November

Abu Dhabi Airports Company (ADAC) revealed today the traffic report for Abu Dhabi International Airport during the month of November 2012. The report indicated that the Capital’s airport registered a 10% increase in passenger traffic for the month of November 2012 compared to the same period in 2011, reaching 1,211,464 passengers.
Aircraft movements increased by 7.9% reaching 10,711. Cargo traffic figures were also on the rise, with over 49,896 tonnes of freight handled throughout the month, recording 18% increase.
The growth registered in November is in parallel to the airport’s performance in the preceding months. Last October, Abu Dhabi International Airport saw a 17.3% surge in passenger traffic compared to the same month last year. This traffic growth recorded throughout the airport’s diverse network was driven by the Hajj and Eid season along with the start of the F1 season at the end of October. Cargo traffic was also on the rise, with over 52,777 tonnes of freight handled throughout the month of October, recording a 18.4% increase over the same month in 2011.
Commenting on the airport’s performance, Eng. Ahmad Al Haddabi, Chief Operations Officer of ADAC, stated:
“As we are approaching the end of the year, it is apparent that 2012 will continue to maintain the growth trend in passenger traffic witnessed in the past years at Abu Dhabi International Airport, as shown by the 19.3% increase in passengers passing through the airport in the last 11 months compared with the same period in 2011, to reach 13.4 million passengers. Such figures are an indication as to the position of the Capital’s airport as a major international aviation hub. ADAC looks forward to sustaining this dynamic growth, and to continue providing passengers with award-winning customer service combined with high level of efficient and safe operations.”
Bangkok, Doha, London Heathrow, Manila and Bahrain were the top five routes for November, collectively claiming 21% of the total passenger traffic for the month.

Jet Airways introduces new Mangalore-Dubai service, effective January 3, 2013

Effective January 3, 2013, Jet Airways, India’s premier international airline, will fly six times a week on the Mangalore-Dubai sector. The airline will deploy a Boeing 737-800 aircraft with 170 Economy seats on this route, offering guests warm service and delectable cuisine.

The new flight 9W 532 from the port city of Mangalore will depart at 2000 hrs and arrive Dubai at 2230 hrs (Local Time) on Mondays, Wednesdays, Thursdays, and Sundays.

On the return leg, flight 9W 531 will depart Dubai at 2330 hrs (LT) on Mondays, Tuesdays, Wednesdays, Thursdays and Sundays, and arrive Mangalore at 0430 hrs (LT) next day.

On Fridays, flight 9W 532 will depart Mangalore at 1900 hrs and arrive Dubai at 2130 hrs (local time). On the return, flight 9W 531 will depart Dubai at 2230 hrs (LT) and arrive Mangalore at 0330 hrs (LT) the next day. On Tuesdays, flight 9w 532 will depart Managalore at 1940 hrs and arrive Dubai at 2210 hrs (LT).

Jet Airways currently operates daily direct flights to Dubai from Delhi, and four services a day from Mumbai.

Sudheer Raghavan, Chief Commercial Officer, Jet Airways, said, “Jet Airways’ new Mangalore-Dubai service will provide a much-needed link between the chief port city of Karnataka and Dubai, catering to the large number of Indians settled in the United Arab Emirates.The introduction of this new service, the first from a Tier II Indian destination to the Gulf, will further strengthen Jet Airways’ presence in the Gulf, where it has emerged as one of the leading carriers.”

The additional services from Mangalore will now complement the airline’s existing Gulf operations to Abu Dhabi, Bahrain, Dubai, Doha, Kuwait, Muscat and Sharjah, as well as Jeddah, Riyadh and Dammam from several cities in India.

Turkish Airlines begins service to Kermanshah (Iran)

With Tehran, Tabriz, Mashad, Shiraz and Isfahan already in the network, Turkish Airlines, the best airline in Europe, today added its 6th destination in Iran, Kermanshah.

Flights from Istanbul to Kermanshah will be operated twice weekly in both directions, with introductory round trip fares available from Istanbul starting from 99 Euros (Including taxes and fees).

Air Bagan accident during landing near Heho airport

An accident happened to Air Bagan flight W9-011 during landing near Heho airport at 08:50 a.m. on 25 December 2012. The Fokker 100 aircraft was carrying 65 passengers, 6 crew members including a pilot and a co-pilot.

The emergency exit was opened as soon as the aircraft landed in the nearby field and passengers were evacuated by our cabin crew. Eight passengers were injured as the aircraft caught fire and were taken to the nearest Sao San Tun hospital in Taung Gyi for treatment.

Ma Nwe Lin Shein, a tour guide, was identified as the only fatality on board. U Pyar who was travelling on a motor cycle on the ground was hit by the aircraft as it landed and was killed.

Twenty six of the passengers were brought back to Yangon on a special flight arranged by Air Bagan and were taken to Victoria hospital for medical check-up. They will be accommodated at the Kandawgyi Palace Hotel after being discharged from the hospital tonight. All remaining passengers including the eight injured ones will be arriving Yangon tonight on Air Bagan special flight.

Air Bagan deeply regret the deaths of two persons and tender its condolences to the bereaved families.

We apologize to all passengers and their families for the inconvenience caused by the accident. We will provide every help and assistance that the passengers might need during their time at Kandawgyi Palace Hotel.

Air Bagan in collaboration with the Ministry of Transport is investigating into the cause of the accident. We will take full responsibility for all passengers and will release further information as we received it.

UTair Raises Effectiveness of Engine Stock Management

As part of UTair Aviation’s cost optimization program, the airline has concluded an agreement with the British TES Aviation Group for the management of the airline’s engine stock.
Total Engine Support (TES) will provide monitoring of the operational and performance status of power plants in UTair aircraft, planning regular and unscheduled maintenance operations, choosing subcontractors for service and repairs, purchasing spare parts and securing leasing for engines.
The outsource company will manage a stock of 117 engines with the aim of reducing operational costs and providing optimal service schemes for high flight regularity.
“The partnership with TES, the market leader in the field of power plant maintenance management, will contribute to helping UTair achieve objectives in the area of cost optimization management,” said UTair CFO Igor Petrov. “Progressive introduction of fundamentally new schemes for engine stock maintenance will help UTair realize a more effective control in this activity as well as in forecasting and planning expenditures.”
Stephen Taylor, senior vice president of sales and marketing at TES, adds: “We are honored to work with UTair’s professional and prudent team and to establish important partnerships for the effective management of engine stock. UTair strives for success, and we equally intend to facilitate UTair in achieving key goals in the management of residual value in assets and for reducing operating costs. We look forward to working with the airline.”

DXB’s annual passenger traffic to surpass 2012 target

Dubai, UAE – December 24, 2012 – Passenger traffic at Dubai International is all set to surpass the projected target of 56.5 million for the year, as the world’s fourth busiest hub for international passengers racked up another month of double digit growth this November, according to the monthly traffic report issued by Dubai Airports. The airport operator revealed that traffic is forecast to reach 66 million in 2013.
With monthly traffic in November reaching 4,875,003, up 10 per cent over 4,431,673 in the corresponding month in 2011, the airport continued to enjoy double-digit growth in passenger numbers in all but two months of the year so far. The year to date traffic (November) totalled 52,363,589 compared with 46,287,234 during the same period last year, an increase of 13.1 per cent.
Western Europe recorded the largest increase in total passenger numbers* in November (153,089 passengers), followed by the Indian subcontinent (94,876), Asia (48,237), and Africa (42,683). Contraction in traffic on Middle Eastern routes continued (-53,444) owing to the impact of the ongoing situation in certain parts of the region.
The strongest markets in terms of percentage passenger growth were South America (98.9 per cent) driven by new Emirates airline’s operations to destinations there, followed by Russia and CIS (22.6 per cent), Australasia (21 per cent ) and North America (+20 per cent) as a result of increase in demand on US routes launched during the year.
Aircraft movements in November increased by 2.3 per cent to 29,749 from 29,093 recorded during the same month in 2011. The year to date movements totalled 313,300, up 5.6 per cent from 296,799 movements between January and November 2011.
Dubai International handled 200,060 tonnes of cargo in November, an increase of 4.4 per cent compared to 191,658 tonnes recorded during the same month in 2011. The year to date freight volumes reached 2,077,676 tonnes compared to 2,004,671 tonnes handled during the corresponding period last year, an increase of 3.6 per cent.
Paul Griffiths, CEO of Dubai Airports said, “We are very glad with the traffic growth this year and are all set to surpass our target of 56.5 million passengers by a margin, taking us closer to operating Dubai International at full capacity. It is no coincidence that Concourse A, the A380 facility that underwent operational readiness trial recently, will open in early 2013 providing much needed capacity.”
Concourse A is part of the Terminal 3 complex which will increase Dubai International’s annual passenger capacity from 60 million to 75 million when it opens next year.

EASA CONFIRMED AEROFLOT CERTIFICATE FOR BOEING AND AIRBUS AIRCRAFT MAINTENANCE

December 20, 2012, Moscow.– JSC “Aeroflot” received confirmation from European Aviation Safety Agency (EASA) for prolongation of certificate for Boeing and Airbus aircraft maintenance until August 2014.

JSC “Aeroflot” received certificate for foreign aircraft maintenance in 1996 for the first time.

During the regular inspections by EASA auditors Department for aircraft maintenance confirms the right to service complex aviation equipment, demonstrating high professional skills of specialists for quality maintenance, aircraft technicians, engineers, mid- and high-level executives, employees of all professions.

Las Vegas Airline Back On The Horizon

LAS VEGAS, Dec. 22, 2012 /PRNewswire/ — The airline promising Las Vegas thrills, holographic image safety briefings, as well as full reclining luxury beds in first class is back on the horizon. Armed with over $35 million, a soft aircraft market, and an experienced management team at the helm, LV Air makes strides towards a launch in 2013. The company will have offices in Las Vegas and New York City.
“We’re completely on track for 2013,” says CEO and Founder Eneliko Sean Smith . “An offer has been made to acquire a fully certified carrier. Our designer Edese Doret has begun designs and features for First Class to include state of the art reclining beds, a live plant wall and a shower/changing room. In Club Class, translucent bulk heads, a Circle Bar, and 3D Surround Sound will be the norm. Every flight will feature an online and private network gaming experience.”
Leading the LV Air launch team is Andrew Cowen , Managing Director of Mango Aviation partners (The company which helped launch other luxury airlines such as Silverjet, Eos and Duo) “I feel sure that with a properly structured offering, LV Air could become very successful…I would also highlight that Eneliko Sean Smith , LV Air’s founder, is a successful entrepreneur focused on bringing fresh thinking and innovation to the airline market. Aviation is liberalizing fast bringing much needed competition to established carriers.”
Smith, originally from the hotel industry, is known for his creative style, intense work ethic and willingness to think outside of the box. Interest from private investors, gaming companies, and celebrities worldwide have surged the company forward with publicity, products, and cash. “It’s a new strategy,” says Celebrity Public Relations Director George Cotton Jr. “Think of Jay Z’s synergistic effect on the Barclay Center, and multiply it by 10.” Cotton has received numerous calls from celebrities that see brand and product sales value in the LV Air association with youthful, high tech, luxury customers and its innovative handheld and social media 1 to 1 marketing focus. “It’s not about Degrees anymore, it’s about creative minds and innovative ideas,” says Derrick Ellis , VP, Social Media of LV Air. The airline expects to hit the ground running with an intense social media campaign in early 2013.

Etihad Airways strengthens cargo team

Etihad Airways continues to strengthen its global team with the announcement of key appointments within the Etihad Cargo division.
The appointments, all based in Abu Dhabi, come against the backdrop of what has been a very successful year for Etihad Cargo, as tonnage, revenues, routes, product innovation and new fleet arrivals have pushed the UAE flag carrier forward at an impressive pace.
Robert Fordree has been promoted from Senior Network Performance Manager to Head of Cargo Handling. Mr Fordree joined Etihad Cargo’s European operations in 2009 and prior to that worked for well known industry players such as Menzies and Lufthansa Cargo. He will be responsible for the carrier’s global Cargo Handling operations and will also work closely with the Abu Dhabi Cargo Company to enhance hub capabilities.
Rory Black has been appointed Head of Cargo Commercial Planning and joins Etihad Cargo from Gulf Air. Mr Black has more than 22 years experience in the aviation industry, both cargo and passenger divisions. He will lead development of Etihad Cargo’s strategy and manage implementation of key initiatives in product development, e-freight and customer service.
Roberto Casabianca joins Etihad Cargo from British Airways and takes up the role as Head of Cargo Sales. Mr Casabianca is a seasoned industry professional with 16 years international experience in the cargo business. He will be responsible for Etihad Cargo’s expanding global sales team, including the Key Account Programme, the industry vertical segment (pharmaceuticals, valuable goods, perishable commodities) as well as independent forwarder networks.
Etihad Airways Vice President Cargo, David Kerr, said: “As we move into 2013 and the exciting opportunities that lie ahead, these appointments reflect Etihad Cargo’s unwavering commitment to its customers, by building a strong, dynamic and customer-focused senior management team.
“Combined with proven track records within the industry and a huge sense of passion they have for the job, we welcome them warmly to the Etihad Cargo family and look forward to the contribution they will make to our division and our customers’ businesses now and in the future.”

Korean Air to Introduce Direct Flights to Sri Lanka and Maldives Starting Next March

Seoul, Korea (10 December, 2012) – Starting next March 9, Korean Air will expand its network to Southwest Asia with the launch of a direct service from Seoul Incheon to Sri Lanka and Maldives.
Korean Air will commence the direct service three times a week, flying from Seoul/Incheon first to Colombo in Sri Lanka and then onto Male in Maldives. The Seoul/Incheon-Colombo-Male flights will operate every Monday, Wednesday and Saturday.
KE 473 will depart Seoul/Incheon at 22:40 and arrive in Colombo at 04:10 the next day. The flight continues its journey departing from Colombo at 05:40, arriving Male at 06:40 the same day. On the return, KE 474 will depart from Male at 15:30 and arrive in Colombo at 17:30; then the flight will depart from Colombo at 18:50 and arrive in Seoul/Incheon at 06:10 the next day.
Korean Air’s new Seoul/Incheon-Colombo-Male route will be operated with an Airbus 330-300, seating 276 passengers and equipped with Korean Air’s premium seats. First Class has 6 Sleeper Seats; the 180 degree full-flat beds with 83-inch pitch and 20.6-inch width guaranteeing comfort and freedom during the flight. The Prestige (business) Class has 18 full-flat sleepers with 74-inch pitch and extra-large seat partitions offering comfort and privacy. Passengers in all classes can enjoy the new AVOD system that offers upgraded in-flight entertainment in high resolution and with top processing speed.
The new Korean Air route ensures travelers from the Americas, Japan, China and other Asian countries hassle-free journeys to Colombo and Male via Incheon International Airport, allowing them to enjoy the various touristic resources in Southwest Asia.
Set in the Indian Ocean in Southwest Asia, Sri Lanka is a nation where the original soul of Buddhism still flourishes and nature’s beauty remains unspoiled. There is an array of tourist attractions which fascinates many tourists; ‘Polonnaruwa’, ‘Anuradhapura’ and ‘Kandy’, historic places for Buddhism; Sinharaja Forest Reserve, a national park and a biodiversity hotspot in Sri Lanka designated as a World Heritage Site by UNESCO; and Nuwara Eliya, the most famous district for Ceylon Tea.
Additionally, the beautiful gold sand beaches in Galle and Hambantota and exciting Safari tours at the Yala National Park and Bundala National Park are popular destinations in Sri Lanka chosen by tourists from around the world.
Located in the South West of Sri Lanka, Maldives also known as the “heaven on earth” is a perfect country for honeymooners and families to visit and enjoy marine sports or savour relaxation. Described as the “flower of the Indies” by Marco Polo, Maldives consists of 1,192 small coral islands with white sandy beaches and emerald colored sea.
By connecting Korea, Sri Lanka and Maldives through Korean Air’s new direct flight, the demand for both business and leisure travel is expected to increase.
In order to gain growth momentum, Korean Air has actively launched new routes since the beginning of 2012 including Da Nang Vietnam in January, London Gatwick in April, Kenya Nairobi in June, Yangon Myanmar in September and Riyadh and Jeddah Saudi Arabia in November.

Red Wings Tu-204 crashes in Moscow

A Red Wings Airlines Tupolev Tu-204 overshot a runway at a Moscow Airport and crashed into a road Dec. 29, killing at least four people.

Initial reports said there were eight crew members onboard and that four were killed and four seriously injured.

The aircraft, serial number RA-64047 and operating as Red Wings flight 9268, was landing at Vnokovo airport. A BBC report said the aircraft could be seen split into several pieces, with the cockpit on the road.

Red Wings is based in Moscow and is owned by Russian tycoon Alexander Lebedev. It operates a fleet of eight Tu-204s.

EU edges closer to external aviation policy to boost competitiveness

European Union transport ministers have adopted a series of conclusions reached by the Council of Ministers that provide a framework for the EU’s future external aviation policy.

The Council conclusions are based on the European Commission's recent communication, "The EU's external aviation policy—addressing future challenges," and acknowledge that global aviation is changing dramatically.

The actions proposed by the Commission and endorsed by the Council recognize that Europe has been harder hit by the recession than many other regions and are aimed at boosting the international competitiveness of the EU's aviation industry. They include opening negotiations with key partners to access new business opportunities in growing markets such as Turkey, India, and Russia; developing new tools to fight unfair competition; and creating the right regulatory conditions to stimulate investment.

European Commission VP-Transport Siim Kallas said: "Aviation plays a crucial and strategic role in the European economy both in terms of jobs, growth and connectivity. The new framework that the Council adopted represents a major step forward toward a fully coordinated EU external aviation policy.

The Commission, EU member states and industry have to work together in an increasingly concerted manner to meet the serious challenges facing the EU aviation sector in the global market place. An effective and early implementation of the new EU external aviation policy will make a significant contribution to enhancing the competitiveness of the EU aviation industry and to the recovery of the European economy."

Juneyao leases A320s from GECAS

GE Capital Aviation Services (GECAS) is leasing five new Airbus A320 and two new A321s to Chinese carrier Juneyao Airlines, the US lessor announced.

GECAS said it delivered the first two A320s in September and October. The remaining A320s are scheduled for delivery in 2013 and the two A321s are scheduled for delivery in 2014. All seven aircraft come from GECAS' existing order book with Airbus.

Juneyao started operations in 2006 as one of China's private airlines. It operates more than 30 aircraft to some 50 destinations in China, serving mainly business travelers between Shanghai and the manufacturing region of the Pearl River Delta.

The carrier is planning to launch an IPO on the Shanghai Stock Exchange.

Uruguay implements nationwide IP controller-pilot communications

Indra has deployed what it claims to be the first controller-pilot communications network completely based on Internet protocol (IP) technology.  The system has been implemented in Uruguay, in collaboration with the country’s air navigation services provider (ANSP) DINACIA, and provides full national coverage for air traffic.

In a statement, Indra said DINACIA has become the first ANSP to start using the new generation of systems based on IP technology, with controller-pilot voice communications no longer based on analogue systems.

The new digital network has enabled DINACIA to achieve its goal of having a single primary frequency, plus another secondary frequency, to serve the entire finite impulse response.

Indra said the new architecture would “guarantee the future interoperability of the systems adopted in other countries, facilitating the coordination of air operations.”

A test flight was conducted in mid-November during which communications were established between commercial flight number TAM8023 and the Carrasco air traffic control center in Montevideo, Uruguay using the digital system. This flight was used to validate the IP communications network for commercial operations.

Indra is a member of the European Organization for Civil Aviation Equipment working group that was created to define IP communications standards.

Air France to offer high speed train links on Strasbourg-Paris route

Air France will offer high speed train links as well as flights between Strasbourg in North East France and Paris Charles de Gaulle Airport from April 2.

Passengers connecting across Paris Charles de Gaulle to or from Strasbourg will be issued with a single ticket for both aircraft and train sectors of their journey, and they will be able to check-in up to 15 minutes before the train departure time for their entire trip. Air France agents will be on hand to greet passengers, and a free baggage loading and unloading service and dedicated baggage drop-off counters will be available.

On the train, all passengers will travel first class, irrespective of their class of travel during their flight.

Air France operates non-stop scheduled flight from Strasbourg to 13 destinations: Paris Orly, Paris Charles de Gaulle, Bordeaux, Lille, Lyon, Marseille, Nantes, Nice, Toulouse, Amsterdam, Rome, Vienna and Venice.

QATAR AIRWAYS TO FILE US$ 600 MILLION LEGAL ACTION AGAINST GERMAN EMIRATI JOINT VENTURE COMPANY LINDNER DEPA OVER DELAYED OPENING OF NEW DOHA INTERNATIONAL AIRPORT

Doha, QATAR – Qatar Airways is filing a US$600 million legal claim against German Emirati joint venture construction company Lindner Depa Interiors (LDI) for causing a significant delay to the opening of the New Doha International Airport (NDIA) by up to a year.
LDI had undertaken to complete the construction of 19 airport lounges at NDIA by the summer of 2012 in a contract worth over US$ 250 million, but failed to complete the project on time. The airport was due to have opened in December 2012.
Qatar Airways, set to be the airport operator, said LDI had badly defaulted with the delayed airport opening seriously affecting the airline’s expansion plans, causing huge revenue losses, increased construction costs and delay penalties, and more importantly, inconveniencing passengers.
LDI was described as having performed extremely poorly in executing the project and failing to meet construction targets.
The US$15.5 billion new state-of-the-art airport, which will have Doha-based Qatar Airways as its primary customer and operator, is now expected to open in the second half of 2013. The new facility is destined to be an iconic world-class airport that is expected to set high standards in excellence.
Qatar Airways is one of the world’s fastest growing airlines, currently operating 116 aircraft to 122 destinations worldwide with plans to fly over 170 aircraft to more than 170 destinations by 2015.
The current Doha International Airport handles almost 20 million passengers a year, with over 80 per cent of the passenger traffic generated by Qatar Airways alone. Had it been completed on time, the new airport would have accommodated the rapid expansion of Qatar’s national airline.
Qatar Airways Chief Executive Officer Akbar Al Baker cited ‘extreme poor performance’ and inability to execute the work within the time required for the project as the reasons for LDI’s contract being terminated, resulting in the legal action estimated at up to US$600 million now being taken.
“We are extremely disappointed by the poor performance of LDI which has failed to carry out the contract in a timely manner which in turn has forced a delay of the opening of the New Doha International Airport by nearly a year,” said Al Baker.
“We have been badly affected as an airline with the delay impacting Qatar Airways’ expansion plans that include new aircraft deliveries and opening up new routes at the rate we want to and more importantly causing a lot of inconvenience to our passengers in addition to the revenue losses to the airline and its subsidiaries.
“Our subsidiaries have been also affected by this delay including Qatar Duty Free, the food outlets and the ground handling which had a negative impact on the revenues of the airline.
Added l Baker: “The current airport we are operating from is already full to capacity with virtually no room to grow. We relied on moving to our new home, the New Doha International Airport this month, but this has not happened.”
“Operational trials of the new airport have been ongoing since the summer as everything was in place, but incomplete airport lounges proved a serious setback.”
Phase One of NDIA is slated to handle over 28 million passengers a year, with the capacity expected to more than double by the time the airport is fully operational in 2018.
Al Baker added that further claims against LDI were expected from other entities affected by this delay.

Brand new A320 aircraft “I.Tamm” was set in operation by Aeroflot

On December 29, 2012 Aeroflot took delivery of A320 airplane made by Airbus. The aircraft is named in honor of Igor F. Tamm, an outstanding Russian theoretical physicist awarded the Nobel Prize in physics in 1958.

Now the Aeroflot fleet counts 80 A319/320/321 aircraft with the average airplane age of 4.8 years.
All Airbus aircraft are received by Aeroflot directly from Airbus manufacturing plants. The airplanes are designed in two class composition and can carry 116 (A319), 140 (A320) and 170 (A321) passengers. These aircraft provide services to European cities and Russian domestic destination points.

Airbus A320 family airplanes satisfy the highest reliability, safety and comfort standards and are one of the best for mid-range flights.

Belavia to operate Minsk-Barcelona non-stop

New Belavia route Minsk-Barcelona was inaugurated in Minsk International Airport on December 26, 2012. The capital of Catalonia has become the 41st destination in Belavia network.

New Embraer-175 aircraft are ready to transport passengers between the two cities twice a week in just 3 hours and 45 minutes.

Anatoly Gusarov, Belavia General Director: “For many years we had been operating summer charter flights between Minsk and Barcelona. That is why the new scheduled route to the Catalonian capital is a logical step forward. Barcelona is a major tourist destination, which will be interested for our passengers all the year round”.

The route will be aimed both on travelers starting their journey in Minsk and transit passengers from Russia and CIS. During the winter season the destination will also attract tourists going to Andorra mountain ski resorts.

Belavia general sales agent has already begun operating in Barcelona El Prat airport (Terminal 2, Departure Hall) and is available on the phone number +34 93 1768546 and email spain@belavia.by .

Allegiant Travel Company Announces the Cessation of the Cebu Pacific A319 Transaction

LAS VEGAS, Dec. 28, 2012 (GLOBE NEWSWIRE) — Allegiant Travel Company(Nasdaq:ALGT) today announced its proposed transaction to acquire ten Airbus A319 aircraft from Cebu Pacific Air has been terminated as a result of the parties’ failure to satisfy certain conditions to proceeding with the transaction. The potential transaction was made public on July 30, 2012 after the signing of the letter of intent.

“We are disappointed that we were not able to finalize this agreement on which we spent a substantial amount of time and effort,” said Andrew C. Levy, Allegiant President. “Unfortunately we were unable to come to terms on some of the economic provisions of the transaction and as we have demonstrated in the past, we will not purchase aircraft just for the sake of growth. Our disciplined approach in asset purchases is a core competency that we will not compromise.”

“We continue to have fleet flexibility in 2013 even without the Cebu A319s. Seven of the nine A320 aircraft, which we announced the intention to acquire on December 19, 2012, are expected to be delivered in 2013 and we now plan to introduce these aircraft into service at a faster pace so as to offset the capacity that had been planned with the Cebu A319s,” concluded Levy.

Allegiant is now expecting 2013 total CAPEX to be between $170 and $180 million. The company has signed operating leases for nine A319 aircraft with GECAS and purchase agreements for nine A320 aircraft formerly operated by Iberia. Allegiant will remain active in the market for the purchase or lease of additional Airbus aircraft.

Canadians to benefit from expanded air transport agreement with Saudi Arabia

OTTAWA, Dec. 28, 2012 /CNW/ – The Honourable Denis Lebel, Minister of Transport, Infrastructure and Communities, and the Honourable Ed Fast, Minister of International Trade and Minister for the Asia-Pacific Gateway, today announced that the existing bilateral air transport agreement between Canada and Saudi Arabia has been expanded. The amendments, which were recently negotiated during the ICAO Air Services Negotiation Conference in Jeddah, Saudi Arabia, will give additional flexibility for airlines of both countries to determine routings and pricing, and allow them to respond to market developments more rapidly.
“This expanded air transport agreement will facilitate the movement of people and goods and will provide new business opportunities for Canada’s air industry to the benefit of consumers,” said Minister Lebel. “I am pleased to announce these amendments which allow airlines of both countries to introduce new direct services.”
Under the expanded agreement, there is a fully open framework related to air services using the flights of other airlines, commonly referred to as code-sharing, which supports efforts by Canadian air carriers to expand services. In addition, the expanded agreement now includes dedicated cargo rights which will support trade links with Saudi Arabia.
“This expanded air transport agreement will support Canada’s international trade objectives with Saudi Arabia, a priority country under the Global Commerce Strategy,” said Minister Fast. “This will help Canadian companies to expand their business in that part of the world.”
“Today’s announcement is yet another example of how our government’s broad and ambitious trade plan will benefit Canadian workers, exporters and businesses,” added Minister Fast. “An expanded air transport agreement with Saudi Arabia supports Canada’s trade objectives and helps our overall efforts to strengthen economic ties with the Gulf Cooperation Council region as a whole.”
Canada’s Blue Sky policy encourages long-term, sustainable competition and the development of new or expanded international air services. Under this policy, the Government of Canada has concluded new or expanded air transport agreements covering close to 70 countries, including:
Open Skies-type agreements with 16 countries: Ireland, Iceland, New Zealand, Barbados, the Dominican Republic, Costa Rica, South Korea, El Salvador, Switzerland, Trinidad and Tobago, Jamaica, Brazil, Honduras, Nicaragua, Sint Maarten and Curaçao;
Expanded agreements with 12 countries: Mexico, Japan, Jordan, Singapore, the Philippines, Morocco, Cuba, Egypt, Algeria, China, India and Saudi Arabia;
New “first-time” agreements with 11 countries: Kuwait, Serbia, Croatia, Panama, Turkey, South Africa, Ethiopia, Tunisia, Qatar, Colombia, and Senegal;
A comprehensive air transport agreement between Canada and the European Union’s 27 member states.
First-time agreements are new agreements with countries with which Canada previously had no bilateral air transportation relationship. Expanded agreements build on existing bilateral air transportation rights between two countries. Open skies-type agreements are very broad and include no restrictions in terms of capacity or cities to be served.
Additional and up-to-date information on the Blue Sky policy and its implementation can be found at: www.tc.gc.ca/bluesky.

Changi Airport registers more than 50 million passengers in 2012

SINGAPORE, 28 December 2012 – Singapore Changi Airport will end 2012 with a new milestone in its history, registering more than 50 million passenger movements for the year. This traffic record is reached just two years after Changi Airport crossed the 40- million milestone in 2010.

In the past two years, passenger traffic at Changi Airport has continued to grow strongly due to an increasing number of low cost travel options and booming demand for intra- Asia travel. The number of passengers departing from, arriving at and transiting through Changi Airport rose 10.7% in 2011 and increased by another 10.1% in the first 11 months of 2012.

To commemorate this significant occasion, Changi Airport Group (CAG) today held a celebratory event, in partnership with Indonesia’s national carrier Garuda Indonesia, to welcome the arrival of Flight GA824 from Jakarta to Singapore, the second busiest international air route in the world.
GA824 touched down at Changi Airport at 1018 hours to a water canon salute and lively fanfare.

Some 200 members of the airport community and travel industry partners gave a warm welcome at Terminal 3 to the more than 160 passengers on board the flight. Each passenger received a special gift pack containing shopping vouchers and souvenirs, as well as a commemorative certificate of the occasion.

Five lucky passengers were also selected to take part in an exciting game show at Changi Airport’s Departure Transit area. One of them, Ms Prayanto Inkarani, a 24 year- old lawyer from Jakarta, walked away with the top prize of S$50,000 worth of shopping vouchers and retail products from Changi Airport, as well as a pair of Singapore-Jakarta Executive Class air tickets sponsored by Garuda Indonesia. The other four passengers each received S$1,000 in Changi Dollar Vouchers.

Ms Inkarani’s prize comprises S$10,000 in Changi Dollar Vouchers and 37 items available at Changi Airport’s more than 330 retail stores. These include an OSIM uDivine Massage Chair, an Omega watch, an Apple MacBook Pro, a Samsonite suitcase, beauty products from SKII and La Mer, fashion items from Bottega Veneta, Gucci, Bonia, Longchamp and Tiffany & Co., apparel from Desigual and Adidas, as well as Chupa Chups and M&M’s candies. The full prize list is in Annex A.

“I am so surprised and excited; it’s like a great dream! I can’t believe there are all these wonderful prizes, which I’m definitely going to share with my family, such as the OSIM chair for my father, bags for my mother and shoes for my brothers,” said an ecstatic Ms Inkarani, who is visiting Singapore for a week-long holiday with her family to celebrate the new year.

Record annual passenger traffic

Changi Airport handled 46.3 million passengers from January to November 2012. This 11-month figure is already close to the 46.5 million passenger movements achieved for the whole of 2011.
Robust double-digit growth in travel to and from Northeast Asia and South Asia contributed to the increase in passenger traffic since the start of the year. Traditionally strong markets such as Southeast Asia, Southwest Pacific and Europe also continued to grow healthily, accentuating Changi’s status as a major air hub in the Asia-Pacific region.

In the month of November alone, 4.37 million passenger movements were registered, a 12.2% increase year-on-year. The operating indicators for November 2012 are provided in Annex B and are also available at http://www.changiairportgroup.com/cag/html/the- group/air_traffic_statistics.html.

As at 1 December 2012, Changi Airport serves 109 airlines operating some 6,400 weekly scheduled flights to and from more than 230 cities in 60 countries and territories worldwide.

Growth made possible by strong airline partnerships

Mr Lee Seow Hiang, CAG’s Chief Executive Officer, said “Despite a sluggish global economy and an uncertain outlook for air travel, Changi Airport has risen against the challenges to deliver another record breaking year in 2012. This is the outcome of our strong partnerships with airlines like Garuda and concerted proactive efforts with them to grow air links and increase flight frequencies.

“We thank our many airline partners, the airport community and the tens of millions of passengers who have given us their solid support this past year. CAG will continue to invest in infrastructure at Changi Airport to ensure that we keep pace with future growth and that we continually provide passengers with a first class Changi Experience.”

Indonesia remains Changi’s top market

In terms of passenger traffic, Indonesia remains Changi Airport’s top country market, accounting for 13.4% of total traffic handled at Changi from January to November 2012. During this period some 6.2 million passenger movements to and from Indonesia were registered, representing a healthy 8.6% growth for the market on a year-on-year basis.

There is strong connectivity between Indonesia and Singapore, with a wide network of air links to 16 Indonesian cities1 via 1,000 weekly flights operated by 16 airlines. From
1 Balikpapan; Bandung; Denpasar; Jakarta; Lombok; Makassar; Manado; Medan; Padang; Palembang; Pekanbaru; Pontianak; Semarang; Solo; Surabaya; Yogyakarta
2 AirAsia Indonesia; Batavia Air; China Airlines; Garuda Indonesia; Jetstar Airways International; KLM; Lion Air; Mandala Airlines; Philippine Airlines; Qatar Airways; SilkAir; Singapore Airlines; Sriwijaya Airlines; Tiger Airways; Turkish Airlines, Valuair

 January to November 2012, there were 3.7 million passenger movements on the Jakarta-Singapore route, making the Indonesian capital Changi’s busiest city link out of a total of over 230 cities links worldwide. Two other Singapore routes – to Kuala Lumpur and Bangkok – are also among the world’s five busiest international routes based on seat capacity3.

Garuda at Changi Airport

As the national carrier of Indonesia, Garuda Indonesia has been a long time partner of Changi Airport, playing a significant role in growing traffic between Singapore and Indonesia. The airline’s first flight to Singapore was in 1966 to then Paya Lebar Airport, from Jakarta. Its operations moved to Changi Airport when the latter opened in 1981.

Mr Nicodemus Lampe, Vice President, Area Asia, Garuda Indonesia said, “Garuda Indonesia has had a strong presence in Singapore, with our operations dating as far back as the early days of the country’s independence. Singapore is an important market for Garuda Indonesia and also the largest international destination in our global network. Today, we operate more than 130 weekly flights to and from Changi to Jakarta, Bali, Balikpapan and Makassar with more destinations to follow in 2013.

“We are honoured to be part of Changi Airport’s 50-million passengers’ celebration today. Going forward, we will continue to work closely with CAG to achieve growth together, as we capitalise on the opportunities presented within the Asia Pacific region.”

Atlantic Airways to provide wet lease service in Chile

Atlantic Airways has signed a contract with Chilean carrier DAP to provide the Chilean carrier with capacity. Initially Atlantic Airways will wetlease one AvroRJ 85 to DAP during a period of three months, which then will be converted to a dry lease. The aircraft will be based in Santiago de Chile and services will commence beginning of January 2013. Atlantic Airways has also agreed to provide DAP with further Avro RJ capacity later in 2013 as the company expect to phase out further Avro RJ aircraft. Atlantic Airways has previously delivered one BAe 146 to DAP in Chile.

Aeroflot and the Federal Tax Service of Russia Signed a Pricing Agreement

On December 27, 2012 Aeroflot and the Federal Tax Service of Russia entered into a pricing agreement in accordance with the recently introduced financial rules.

From now on, Aeroflot Group companies will send all the necessary information and documentation to the Federal Tax Service before determining prices and applying their pricing methods in order to provide more coordination and improve the quality of airlines’ financial forecast.

The main goal of this agreement is to enhance the cooperation and information interchange between Aeroflot Group companies and the Federal Tax Service of Russia, which will secure the Tax Code observation and increase the tax administration quality. Now it will be possible to give more accurate forecasts of tax payments, simplify the tax control procedure for controlled transactions and reduce potential costs.

Aeroflot is the largest tax payer in the national transportation industry, providing more than 30 % of taxes proceeds of the Russian Civil aviation sector. Proving its role as a leading national air carrier, Aeroflot is the first Russian transportation company to enter in such an agreement with the Federal Tax Service, thus demonstrating its high standards of social responsibility, corporate management and business transparency.

Woodward, Inc. Signs Agreement to Acquire Hydraulic Thrust Reverser Actuation Systems ("TRAS") Business from General Electric

FORT COLLINS, CO—(Marketwire – Dec 28, 2012) – Woodward, Inc. (NASDAQ: WWD) today announced that on December 27, 2012, it signed a purchase agreement with GE Aviation Systems to acquire the assets of its hydraulic thrust reverser actuation systems business located in Duarte, California (the “Duarte Business”) for $200 million in cash, and the parties have entered into a preferred supplier agreement for thrust reverser actuation systems. The transaction is expected to close later today.

“The acquisition of the Duarte Business by Woodward’s Aerospace segment provides us with expanded motion control technologies and platforms, more specifically Thrust Reverser Actuation Systems,” said Thomas A. Gendron, Woodward Chairman and Chief Executive Officer.

The Duarte Business, which employs approximately 350 people, serves customers such as Boeing, GE, Safran and the U.S. government. Its products are used primarily on commercial aircraft such as the Boeing 737, 747 and 777, and Airbus A320.

The Duarte Business’ sales for fiscal year 2013 are anticipated to be approximately $150 million. The Duarte Business will be integrated into Woodward’s Aerospace business segment. Woodward believes there will be operating synergies and significant opportunities for both organizations to share technologies and leverage the customer base.

Woodward has committed financing and available cash sufficient to fund the payment of the purchase price and also provide short-term liquidity after closing. Woodward currently has a $400 million revolving credit facility in place, substantially all of which is currently available.

The addition of the Duarte Business is expected to be slightly accretive to Woodward’s earnings per share for fiscal year 2013.

CAE issues approximately US$350 million of senior unsecured notes

MONTREAL, CANADA—(Marketwire – Dec. 27, 2012) – (NYSE:CAE)(TSX:CAE) – CAE today announced that it has issued approximately US$350 million in a series of unsecured senior notes in a private placement.

The notes are issued in several US and Canadian dollar denominated tranches with floating and fixed interest rates, the latter ranging from approximately 3.6 to 4.2 percent annually with maturities ranging from seven to 15 years.

The offering includes 11 large institutional investors in both the United States and Canada with an aggregate of approximately US$350 million in a series of notes being issued to mainly refinance existing debt.

“We are very pleased to have entered into this notes offering, which locks in our interest costs at attractive rates for up to fifteen years,” said Stéphane Lefebvre, CAE’s Vice President, Finance and Chief Financial Officer.

“The refinancing enhances CAE’s capital structure with a mix of currencies, terms and interest rates that align well with our long-term strategy and allow flexibility to further strengthen our balance sheet in the periods ahead. The private placement includes some of our long-time institutional investors and several new investors, which is a good reflection of the market’s confidence in CAE.”

RBC Capital Markets, Scotiabank and TD Securities are acting as joint bookrunners on this transaction.

AMES AND CCPA TO BUILD TWO-BAY HANGAR FACILITY

WILMINGTON, OH – December 27, 2012 – Airborne Maintenance and Engineering Services, Inc. (AMES) and the Clinton County Port Authority have completed the necessary arrangements to proceed with the financing and construction of a new hangar facility at the Wilmington Air Park.
After nearly two years of careful planning, construction of the facility is scheduled to begin in January and will take approximately 12-14 months to complete. Preparation of the construction site is already underway. When finished, the 100,000-sq-ft facility will be capable of housing multiple aircraft as large as a Boeing 747-400 or Boeing 777-300ER. The hangar will be owned by the Port Authority and occupied by AMES.
“This is a complex project that required extensive coordination between state and local entities, both public and private,” said AMES President Brady Templeton.
The project, negotiated with JobsOhio, Air Transport Services Group, Inc. (ATSG), AMES and the Port Authority, represents not only the development of a new $15.5 million hangar at the Wilmington Air Park, but the creation of 259 new jobs. In addition to the State of Ohio financing package of over $14 million that was negotiated, the Port Authority agreed to additional financial incentives and other donations amounting to just over $3 million, from its own resources. Local grants from the City of Wilmington, Clinton County and the Wilmington Community Improvement Corporation for this project amounted to $525,000.
Port Authority Chairman David Hockaday said, “In the spirit of cooperation we have been able to negotiate this complex deal with the Company and the State of Ohio. We are especially grateful to the City, the County, the Wilmington CIC and the Wilmington City School District for their contributions to this project. The creation of 259 new jobs by AMES will provide a much needed boost to our local economy.”
The project represents an expansion in hangar capacity of almost 50 percent for AMES, and will result in the eventual creation of hundreds of new jobs. “We are already recruiting additional personnel,” noted AMES Director of Human Resources Debbie Loveless, “and we will continue to ramp up employment through the construction phase.” At the end of a three-year period, it is anticipated that AMES employment at the Wilmington Air Park will exceed 640 individuals.
JobsOhio – in collaboration with local county, city, and school entities – formulated a nearly $14.6 million financing package to assist the Port Authority in construction. The financing will be repaid though a long-term lease of the facility. AMES’ parent company, ATSG, has agreed to guarantee this lease.
The new hangar will be located in the center of the Air Park, adjacent to the existing hangar complex which is currently being utilized by AMES. The location was chosen because of its close proximity to the existing hangars, the availability of utilities and the ability to utilize existing ramp space at the Air Park.

Canada ratifies the Cape Town Convention and Aircraft Protocol

OTTAWA — The Honourable Denis Lebel, Minister of Transport, Infrastructure and Communities and Minister of the Economic Development Agency of Canada for the Regions of Quebec, today announced action to strengthen the airline industry through the Cape Town Convention and Aircraft Protocol.

These agreements could help Canadian airlines achieve important savings on aircraft financing.
“The Government of Canada is focused on the economy and working to create a more competitive business environment in Canada,” said Minister Lebel. “The Convention and Protocol help to strengthen the airline and aerospace industries through an international legal framework for the financing of their aircraft equipment.”

The Jobs and Growth Act, 2012, which was passed by Parliament earlier this month, includes amendments to the International Interests in Mobile Equipment (aircraft equipment) Act and other legislation that introduce necessary policy and regulatory changes to support Canada’s participation in the Convention and Protocol.

This federal legislation, in conjunction with legislation adopted in Alberta, British Columbia, Newfoundland and Labrador, Northwest Territories, Nova Scotia, Ontario, Quebec and Saskatchewan, implements the Convention and Protocol.

Further to today’s announcement, the Convention and Protocol will take effect in Canada on April 1, 2013. They are more formally known as the Convention on International Interests in Mobile Equipment and the Protocol to the Convention on International Interests in Mobile Equipment on Matters specific to Aircraft Equipment.

Participation in the Convention and Protocol was confirmed with the deposit of Canada’s instrument of ratification with the International Institute for the Unification of Private Law (Unidroit) in Rome on Friday, December 21, 2012.

For more information on the Convention: http://www.unidroit.org/english/conventions/mobile-equipment/main.htm

For more information on the Protocol: http://www.unidroit.org/english/conventions/mobile-equipment/main.htm#NR2

GE Capital Aviation Services To Lease Two New Boeing B737-800s to New Customer Transavia France

SHANNON, Ireland, December 21, 2012 – GE Capital Aviation Services Limited (GECAS), the commercial aircraft leasing and financing arm of GE, announced it will lease two new Boeing 737-800 aircraft to new customer Transavia France. Delivery of the aircraft is scheduled for early 2013 and will expand the airline’s fleet.

The low-cost carrier operates a fleet of 10 Boeing 737-800 aircraft to more than 30 destinations.

Boeing, Aeromexico Finalize 787 Dreamliner Order

SEATTLE, Dec. 27, 2012 /PRNewswire/ — Boeing (NYSE: BA) and Aeromexico finalized an order for six 787-9 Dreamliners, with reconfirmation rights for four additional Dreamliners. The order by Mexico’s largest airline, which was first announced as a commitment in July, is valued at more than $1.46 billion at published list prices.

“The acquisition of these Boeing 787-9 Dreamliners, part of the 100 aircraft announced earlier this year, represents a fundamental step that strengthens the international position and leadership of Grupo Aeromexico,” said Andres Conesa, Aeromexico’s CEO. “It also reaffirms the company’s commitment to provide the best service to our clients, assuring they will be treated with the best crew and will fly with the best aircraft ever built.”

“With this successful purchase, Grupo Aeromexico will have a total of 19 Boeing 787 Dreamliners in its fleet, whose first delivery is expected to be in the summer of 2013. The arrival of these aircraft will surely increase the added value of our assets and will also reinforce our operative structure, giving us the flexibility to continue growing,” said Conesa.

“Aeromexico continues to show it is an aviation leader in Latin America and across the globe,” said Van Rex Gallard, vice president of Sales for Latin America, Africa, & Caribbean, Boeing Commercial Airplanes. “These additional 787s will help Mexico’s largest airline expand its international presence with a stellar product for its valued customers. The Dreamliner will allow Aeromexico to provide the highest level of service to its passengers, while taking advantage of the airplane’s unmatched economics.”

Made primarily from composite materials, the Boeing 787 Dreamliner is the first mid-size airplane capable of flying long-range routes and will allow Aeromexico to replace older aircraft on its European, Asian and South American routes. As a result of innovative technologies, the airplane offers unparalleled operating economics, fuel efficiency and passenger comfort. More than 800 787s are on order by 58 customers, a testament to the airplane’s unique capabilities.

Aeromexico operates an all-Boeing fleet of airplanes larger than 100 seats. Grupo Aeromexico, the parent company of Aeromexico, operates its main hub out of the Mexico City International Airport. In 2011 the Group transported more than 14 million passengers and offered close to 600 daily flights to cities in Mexico, the United States, Canada, Central and South America, as well as Europe and Asia.

Transaero Airlines and UTair Aviation Sign Multilateral Agreement on Interline Connections via Vnukovo International Airport

Moscow, December 27, 2012 – Transaero Airlines has taken an important step to enhance travel possibilities for its passengers at Vnukovo airport through a multilateral agreement signed with UTair Aviation on establishment of interline connections and application of through fares for transportation via Vnukovo Airport in Moscow. Vnukovo Airport and Transport Clearing House are also participants in the agreement. Combining the route network potentials of Transaero and UTair, already the leading flight operators at Vnukovo Airport, creates an extraordinary level connecting flight opportunities in the interests of the majority of passengers using the airport.

Passengers of both airlines will now be able to take advantage of special through fare rates for connections at the new Terminal A at Vnukovo to dozens of cities in Russia, the CIS, the US and Western Europe.

The multilateral agreement also enhances the potential of Vnukovo Airport where Transaero Airlines is to establish yet another transit center in Moscow. Today Transaero operates flights to 13 destinations from Vnukovo, including St. Petersburg, Yekaterinburg, Astana, Almaty, Tel Aviv, Rome, Milan, Paris, London, Pardubice, Barcelona and Vienna. In the near future, Transaero will launch flights to New York, Miami, and Frankfurt, as well as to destinations in Kazakhstan, Uzbekistan and Ukraine from the airport. New domestic routes will also be included in this route expansion, the first of which will be to Novosibirsk.

THAI Takes Delivery of its Third Airbus A380-800

Thai Airways International Public Company Limited recently took delivery of its third Airbus A380-800 aircraft, royally bestowed the name “CHAIYA”.

At a delivery ceremony in Toulouse, France, the aircraft was handed over to Dr. Sorajak Kasemsuvan, Thai President by Mr. Chris Buckley, Airbus Executive Vice President, Europe Asia, which was witnessed by members of THAI Management, and members of Airbus Management.

Thai ordered a total of six Airbus A380-800 aircraft, which are fully equipped with the most modern technology, products and services, which aim to meet passenger satisfaction in all classes of service.

As of 6 October 2012, Thai’s first A380-800 operated on the route Bangkok to Hong Kong and Bangkok to Singapore. With its second A380-800, Thai operated the aircraft roundtrip from Bangkok to Frankfurt and Bangkok to Hong Kong beginning 15 December 2012. The third A380-800 which was recently delivered will operate on the route Bangkok to Narita as of 1 January 2013, while the fourth A380-800 will operate on the route Bangkok to Paris in the Summer Programme 2013, and the fifth and sixth A380-800s will be delivered in the last quarter of 2013.

Southwest Airlines Announces New Service Between Denver And San Jose Del Cabo/Los Cabos, Mexico Operated By Airtran Airways

DALLAS, Dec. 26, 2012 /PRNewswire/ — It’s already time to put a bow on Spring Break travel plans and set sights South of the Border as Southwest Airlines and wholly owned subsidiary AirTran Airways announced today new international flights between Denver International Airport and SJD Los Cabos International Airport in Baja California, Mexico.

AirTran daily service on the new route begins March 10, 2013, and is open for sale now at both airtran.com and southwest.com with introductory fares as low as $189 one-way. These fares must be booked by 11:59 p.m. PST on Jan. 1, 2013, for travel between March 12, 2013, and April 24, 2013 (sale fare valid for travel Tuesdays and Wednesdays). See full fare rules below.

“As we continue preparations to connect the Southwest and AirTran route networks beginning early next year, we are excited to add another nonstop travel option to Mexico alongside our strong portfolio of domestic nonstop service in Denver,” said Bob Jordan , Southwest Airlines’ Executive Vice President and Chief Commercial Officer and AirTran Airways President. AirTran began nonstop flights between Denver and Cancun in April.

AirTran Airways also currently serves SJD Los Cabos International Airport with daily service to/from Orange County (increasing to twice-daily as of June 2, 2013) and has flights between other destinations in the US and both Cancun and Mexico City.

Southwest Airlines began service to Denver on Jan. 3, 2006, with 13 daily departures to three destinations. The airline currently operates 163 daily flights to 54 destinations from Denver.

Southwest recently demonstrated its LUV for the state of Colorado by dedicating Colorado One, a specialty aircraft painted with the colors of the Colorado state flag. Southwest also is actively engaged in the community through sponsorships of the Downtown Denver Partnership, the Denver Nuggets, Red Rocks Amphitheater, Denver’s Road Home, the Mile High Pedicab Company, and many more local organizations.

To learn more about Southwest’s dedication to Denver, visit: southwest.com/denver.

ANA Increases Tokyo-Chicago and Resumes Nagoya-Shanghai

TOKYO December 25, 2012 – ANA, Japan’s largest airline group, today announces that it will double the number of flights it operates between Tokyo (Narita) and Chicago, from 7 flights a week to 14 as the Group looks to capitalize on the growth in demand for connections between Asia and North America.

This change will take place from June 29 2013. The move is part of ANA’s rapid route expansion between Japan and North America this fiscal year, including the launch of the Tokyo – Seattle route in July 2012, the increase in capacity on the Tokyo – New York route which became a double daily service in October 2012 and the introduction of Tokyo – San Jose services from January 11, 2013.


ANA also today announces that it will resume its Nagoya (Chubu) – Shanghai service during the summer timetable (from March 31 until October 26, 2013). The flight will operate with a convenient timetable, departing Nagoya in the morning and the return flight departing Shanghai in the afternoon.

Reservation and sales for both routes will begin from December 26.

These flights are based on the approval of the relevant authorities.

Phoenix buys another ATR 42-500, MSN 559

Phoenix buys another ATR 42-500. MSN 559 was purchased from Eurolot (LOT Poland). She has been ferried from Warsaw to France where she is currently undergoing some upgrade modification work before being dlevered to her new home in Feburary 2013.

First Sukhoi Superjet 100 Delivered to Sky Aviation

On December 29, 2012 Sukhoi Civil Aircraft Company (SCAC) and Indonesian air carrier Sky Aviation signed in Ulianovsk (Russia) Act of Delivery & Acceptance for the first Sukhoi Superjet 100 on completion of technical acceptance procedure.

Flight of the aircraft with MSN 95022 (PK-BCL) from Ulianovsk Delivery Centre to its base airport in Indonesia is planned for January 2013. The same month the airline is going to put SSJ100 into commercial operation.

The document, signed by the parties, states that the aircraft is technically sound and fully meets the performance criteria. The Act of Delivery & Acceptance also confirms that the SSJ100 is transferred to the carrier with a full set of required operational and maintenance documentation and flight kit. The aircraft is ready to start commercial operation on Sky Aviation route network.

Earlier Indonesian aviation authorities validated the Type Certificate for the Sukhoi Superjet 100 aircraft. This validation confirms compliance of the SSJ100 to the certification requirements of the Indonesian Aviation Authority, allowing its export to Indonesia and operation by Indonesian airlines without restrictions.

Sky Aviation was established in 2010. It is based in Halim Perdanakusuma International Airport (Jakarta, Indonesia). The airline operates scheduled and charter flights in Indonesia.


http://sukhoi.org/eng/news/company/?id=5041 

4 dead as Russia plane crashes into motorway

MOSCOW: Four crew were killed yesterday when a Russian airliner crashed into a motorway and broke up into three pieces after overshooting the runway at an international Moscow airport. The Red Wings airlines Russian-made Tu-204 jet – empty of passengers and carrying just its eight crew – caught fire after crashing through the perimeter fence of Vnukovo airport in the west of the city, officials said. Wreckage was strewn across the motorway, but there were no immediate reports of any injuries among road users.

The aircraft was returning from the Czech Republic after flying passengers from Moscow to Pardubice airport outside Prague, a Czech airport official said. The stricken white-and-red liner ended up with both its nose and tail sections separated from the main body, images broadcast on state television showed. The plane’s nose was left on the highway with only a tangle of wreckage linking it to the aircraft’s body, which was slumped on the motorway embankment with its disconnected tail lying further down.

“According to updated information, four people were killed and four more were injured,” the interior ministry said in a statement published on Russian news agencies. The emergencies ministry confirmed the jet was carrying no passengers and eight crew, although earlier reports had said 12 people were on board. “All the injured are in a serious condition with head injuries,” a health ministry official told the Interfax news agency.

Interfax said that two of the dead were the flight captain and second pilot, whose corpses were found at the site of the crash. The identities of the other dead are not yet known. The crash took place during high winds and a snowstorm in Moscow, but the cause of the accident was not immediately clear. The state aviation security watchdog Rosaviatsya said it had sent a letter to the jet’s Tupolev maker on Friday about possible problems with the break system of the Tu-204 jet, RIA Novosti reported. The letter was sent after another Tu-204 experienced problems with its breaks during a previously unreported incident on Dec 21, said the news agency.

Czech officials said the plane was in fine working order when it landed at an airport 100 km east of Prague earlier in the day. “The plane brought passengers to Pardubice, then returned empty. When taking off, the plane was absolutely okay,” the Czech News Agency quoted Pardubice airport director Vit Malek as saying. Russian Investigative Committee spokesman Vladimir Markin said all options including bad weather, pilot error and a technical malfunction – were being explored as possible causes. State television quoted reports saying that the pilot had been circling Vnukovo and had also looked into the possibility of landing at another airport.

Before it was extinguished, the fire around the busy Kiev Highway reached a maximum of 100 square metres (1,000 square feet), the emergencies ministry said. A spokeswoman for the emergencies ministry said: “The Tu-204 overshot the landing strip. As a result, the plane partially fell apart and its right engine caught fire.” President Vladimir Putin has been informed of the accident and Prime Minister Dmitry Medvedev has ordered an investigation into its causes.

The emergencies ministry said a total of 204 ministry staff and 12 pieces of equipment were deployed to the scene. Traffic on the Kiev Highway next to the airport was halted as a result of the accident and Vnukovo airport was also closed. But by late evening the airport said it had resumed working.

However the incident risks causing travel chaos as Russians depart the capital in hordes for the country’s lengthy New Year holidays. Aviation disasters remain a scourge across the former Soviet Union due to ageing hardware that often has not been replaced since the fall of the Soviet regime, as well as human error.

The Tu-204 is a modern Russian-made passenger jet. Seventy-two have been made and 51 are in operation, nine of which belong to Red Wings. Red Wings is a new Russian airline that started operating out of Vnukovo this summer. It serves destinations in Russia and abroad as well as offering charter flights. The company is owned by Russian businessman Alexander Lebedev, who also owns Britain’s Evening Standard and Independent newspapers. The accident came days after all 27 people on board a Kazakh military jet were killed in a crash in the south of the ex-Soviet Central Asian state. – AFP

Russian plane crashes into road outside Moscow

Two pilots, a flight engineer and an air stewardess were killed in the crash

A Russian passenger plane has crashed into a main road after overshooting a runway at a Moscow airport, killing at least four people, police say.

Reports said there were between eight and 12 crew on board the Red Wings Tupolev-204, flight number RWZ9268, which was landing at Vnukovo airport.

Images of the scene show the aircraft split into several pieces, with the cockpit on the road.
Four people were severely injured, emergency officials said.

The dead were two pilots, a flight engineer and an air stewardess.

The plane's tail and cockpit had broken off but the fuselage was largely intact.

There were fire engines at the scene and smoke could be seen rising from parts of the wreckage.

The plane had arrived in Moscow from the Czech Republic, government officials said.

Russian Prime Minister Dmitry Medvedev has ordered an investigation into the cause of the crash.

There was light snow in the area on Saturday afternoon, though it was not known if that played any role.

The BBC's Steve Rosenberg, in Moscow, says investigators are looking into three possible causes - bad weather, technical failure and pilot error.

The Tupolev-204 is a modern Russian passenger jet with a good safety record and a capacity to hold more than 200 passengers.
 

Boeing To Use 747-8 Dropped By Lufthansa To Complete Test Work

Lufthansa and Boeing have agreed that a 747-8 previously allocated for delivery to the airline will now become a dedicated test aircraft for a set of airframe, system and engine improvements due for delivery in late 2013.

The aircraft, Line Number 1435, first flew in April 2011, but already has been used for some upgrade testing and now will continue in this role rather than be refurbished for Lufthansa. The move, which was triggered by the need to flight test a revised tail fuel system for activation on later aircraft, means that Lufthansa’s 747-8 firm order book backlog is reduced from 20 aircraft to 19, though the airline hints that this may only be a temporary reduction.

Lufthansa still is scheduled to take five 747-8s as planned in 2013, and 10 more aircraft by the end of 2015 that will incorporate the lighter structure and improved systems and engines. The airline currently has four 747-8s in service.

Explaining the decision, the German carrier’s 747-8 chief pilot Elmar Boje says the extensive flight test modifications already made to the aircraft would mean that, even after post-test refurbishment, the unit would be a non-standard “white elephant” in the Lufthansa fleet. However, he adds the airline’s long-range fleet group is due to decide on adding additional aircraft by the third quarter of 2013, some of which could include 747-8s.

Although the decision effectively shrinks Boeing’s total 747-8 backlog to 71, the manufacturer is putting on a brave face because a variety of upgrade testing, including the General Electric GEnx-2B performance improvement package (PIP), can now be bundled into one dedicated certification effort.

“The plan was to use a 747-8F freighter for the PIP flight test, but when we de-activated the tail fuel we needed an -8 Intercontinental” to flight test the revised system, says 747 VP and General Manager Elizabeth Lund. “That’s when we started our conversation with Lufthansa.”

The aircraft, originally destined to be Lufthansa’s fifth 747-8, will be used for flight testing throughout 2013 and refurbished for onward sale in 2014 as either a standard airliner or for possible business jet modification.

“Lufthansa opted to take a new aircraft instead in 2014,” says Lund. “So as a result, we had to pull this one out and delay delivery to next year. Lufthansa reserves the right to add another at the end. We asked to use it, and it was already instrumented for tail fuel testing. So all in all it’s a good business decision by them,” she adds.

Improvements to be tested next year are concentrated on the upgraded engine configuration and tail tank fuel system, though the effort also includes updates to the flight management computer (FMC) to incorporate additional required navigation performance features and a “quiet climb” function.

The 747-8 passenger model’s 3,300 gal. tailplane fuel tank was de-activated before the first aircraft entered service after analysis indicated that, under certain fuel load circumstances, the tail tank could induce flutter.

Re-activation of the tail fuel tank will provide added range and improve the aircraft’s performance, says Lufthansa’s Boje. The extra weight of the fuel in the aft of the aircraft can be used to assist in trimming the 747-8 to lower cruise drag. The 747-8’s fuselage extension “tends to be nose heavy so we might gain performance,” he adds.

Lufthansa also plans to ask Boeing to study minor software changes to the fuel transfer system which would extend the length of time the fuel remains in the aft tank, which would increase the trim benefit.


http://www.aviationweek.com/Article.aspx?id=/article-xml/avd_12_21_2012_p03-01-531189.xml&p=2  

Boeing might finally top Airbus this year

Boeing might do something this year that it hasn't done in a decade: beat rival Airbus on deliveries.
Boeing might just reclaim the title of number one airplane-maker this year. With just a few days to go, The Seattle Times reports Boeing is on pace to beat its rival Airbus on the number of airplanes delivered and ordered this year.

Boeing expects to deliver 585 commercial planes this year, slightly above Airbus. Heading into the final weeks of the year, Boeing had already received more than 1,100 orders.

Boeing also added 5,000 jobs in Washington this year to create its largest workforce in the state since 1999 with nearly 87,000 workers here.


http://mynorthwest.com/11/2162788/Boeing-might-finally-top-Airbus-this-year 

Indonesia's Citilink Ordering 25 ATR 72-600s

Garuda Indonesia’s low-cost carrier Citilink has decided to order ATR 72-600s after the manufacturer agreed to help provide foreign pilots and maintenance technicians.

The airline will be ordering 25 ATR 72-600s, with options for 25 more, and first deliveries will be in September, Citilink CEO, Arif Wibowo, tells Aviation Week.

He says five aircraft will be delivered in 2013. The delivery schedule for the first 25 aircraft runs “up to 2015” and if the 25 options are converted into firm orders, the delivery schedule goes “up to 2017”, says Wibowo.

Prior to selecting the ATR 72-600, Citilink also considered the Bombardier Q400. Some industry sources had expected that Citilink would choose the Q400 to more clearly differentiate itself from its nearest competitor, Lion Air’s Wings Air, which is one of the largest ATR 72 operators in the world.

Wibowo says there were three key considerations to selecting the aircraft type: economic, such the purchase price; financing; and aircraft performance. “With these three considerations in mind, our target was to be the most competitive in the market.”

The aircraft’s fuel-burn and runway performance was important, Wibowo says, although ATR’s offer to help Citilink to get support from European export credit agencies also helped.

In the request for proposals, Citilink required bidders to present plan to provide pilots, and ATR has agreed to this condition, says Wibowo. He adds that Citilink likely will rely on foreign pilots for the first two or three years until enough locals can complete ab initio training at flying schools and then be type-rated for the ATR 72-600.

The type-rating will conducted at ATR’s new simulator training centre in Singapore, he notes.

Citilink is unable to source pilots from Garuda for the turboprop operation, says Wibowo, because of demand to supply parent company Garuda’s growing Boeing 737 operation.

“ATR also has agreed to fully support Citilink on the maintenance side for the first two years and to cooperate with Garuda’s maintenance, repair and overhaul company GMF AeroAsia,” says Wibowo.

Under this agreement, ATR will providing maintenance technicians to ATR for the first two years, says Wibowo, adding that while it is normal practice for an aircraft manufacturer to assign one or two field representatives to a new customer, this deal will involve several more technicians.

Wibowo says Citilink plans to operate its ATR 72-600s from five hubs—Balikpapan, Batam, Jakarta, Lombok and Surabaya—across 45 routes. The number of daily frequencies will reach 300 in five years, he adds.

Services from Batam, an island near Singapore, will include international destinations such as Johor Bahru, Kuala Lumpur and Penang in Malaysia, Wibowo, while the ATRs will open domestic tourist destinations from Lombok.

Balikpapan is a hub for Kalimantan, one of Indonesia’s largest provinces, although Wibowo says the turboprops also will to link Balikpapan to Kota Kinabalu in Malaysia’s Sabah province.

Wibowo says turboprops are ideal for low density, high yield routes. Garuda will code-share on some of Citilink’s turboprop flights, he adds.


http://www.aviationweek.com/Article.aspx?id=/article-xml/awx_12_27_2012_p0-532247.xml&p=2

Leeham on-line poll: 61% expect no contract agreement with SPEEA, Boeing; 57% expect strike

We put two polls into the public domain this week, asking whether SPEEA and Boeing will reach an agreement next month; and if not, will SPEEA strike (a target date is Feb. 1).
The results are in: 61% expect no agreement when talks resume Jan. 9 and 57% expect SPEEA to strike. (These figures reflect results as of this writing. The data may change after this post because polling is still open.)
The percentages are a significant drop from the 96% vote that rejected the Boeing contract offer in October, but it should be noted there is no new offer on the table for SPEEA members to read and evaluate.
Additionally, this poll is of our readers and not specific to SPEEA.
Clearly the expectations are not good.
SPEEA’s executive director, Ray Goforth, is on record expecting talks to fail immediately when they resume because the gap between the union asks and the Boeing positions are so far apart. A strike vote will be solicited once talks break off.
Unlike the IAM 751, which requires a two-thirds affirmative vote for a strike, SPEEA requires only a simple majority.

“We have no specific target [for a strike vote] other than that,” Goforth tells us. ” SPEEA is a democratically run union.  Decisions are made by majority vote as supplemented by broad consultation with the membership (townhall type meetings, polls, feedback from the elected councils).

“In the run-up to the October 1st vote the Boeing management negotiating team confidently predicted that the contract would be adopted because they knew what the employees wanted better than the union,” Goforth wrote us.

“Today, we at hearing the same language from Boeing management.  Today, we are experiencing the same dismissiveness and disregard from Boeing management.

“Boeing management is still proposing across-the-board pay and benefit cuts for engineers and techs while increasing compensation for themselves and the shareholders.  We expect any such proposal to be rejected by the membership.”

 

 

 

http://leehamnews.wordpress.com/2012/12/28/leeham-on-line-poll-61-expect-no-contract-agreement-with-speea-boeing-57-expect-strike/ 

Deutsche Telekom looks to become global connectivity leader across the travel chain

Deutsche Telekom’s T-Mobile is currently working with seven airline customers of Panasonic’s inflight Internet solution – Transaero, Japan Airlines, Lufthansa, Gulf Air, Turkish Airlines, American Airlines and Etihad. The German company manages the Internet gateway and handles passenger billing and customer support for Wi-Fi services. In the following interview with the APEX editor’s blog Deutsche Telekom SVP multinational corporations Martin Schlieker discusses how the firm plans to leverage its broad experience in telecommunications to become a global leader in “seamless” connectivity across the travel chain.
 
Why is Deutsche Telekom (DT) with its international brand T-Mobile uniquely placed to play a pivotal role in bringing inflight connectivity to passengers?

Around the world 131 million mobile customers and 50 million fixed customers trust in Deutsche Telekom/T-Mobile as a reliable and innovative telecommunications company. Our international brand presence with more than 50,000 ‘HotSpots’, together with our significant and long-running experience in providing high-quality networks, forms the ideal basis for extending our business to aircraft.

We are the first global telecommunications company to provide seamless connectivity right across the travel chain – at home, on the train, at the airport, in the aircraft and in the hotel. Additionally, DT is one of the leading innovators in providing future-proof technology. Specifically in-flight, DT makes the high-speed surfing experience accessible for any type of user. Multiple payment options are available as well as a large number of roaming agreements around the globe.

Tell us about your partnership with Panasonic Avionics – how did it get started, and what does each party bring to the table?

Back in 2010 Lufthansa asked Panasonic to equip its entire long-haul fleet with Panasonics´ ‘eXConnect’ inflight Internet system [which forms the basis of its global communications suite (GCS)]. This was our starting point to step into a long-term strategic partnership, even extending the Lufthansa cooperation and targeting further airlines. To put it simply, Panasonic is responsible for the entire airline business, including the provision of hardware and equipment, technical support and service, as well as for the satellite capacity and so on. T-Mobile is in charge of the customer/passenger touch point. On the one hand, we are enabling the mass market with our 181 million residential customers, while on the other hand we also enable our business customers and their employees with customised solutions that provide flexible and easy access to Wi-Fi services.

It has been reported that you’re working with seven GCS customers: Transaero, Japan Airlines, Lufthansa, Gulf Air and Turkish Airlines, as well as new customers American Airlines and Etihad. Do you work one-on-one with each airline? What are your deliverables beyond providing passenger billing and customer support? 

Panasonic and DT work closely together to service the needs of our airline customers. Our standard solution is modularly designed. With this flexible concept we are able to meet the bespoke needs of each airline, and provide customised solutions to meet their various requests. Aside from these core competences we are a network provider that boasts all of the latest state-of-the-art technologies, in-depth experience in marketing telecommunications services towards consumer and business customers, and excellent customer service. We want to make these assets available to any airline interested in this new service.

What other airlines are you poised to work with in the near-term?

Our goal is to become a global leader in seamless connectivity. Within the last three years – even as a “newcomer” – we positioned ourselves as a trusted partner in the airline industry. Together with our strong partner Panasonic we exceeded our targets and will shortly launch our Wi-Fi service with Aer Lingus, and Air France-KLM for a total of nine airline customers. And there will be additional announcements within the first half year 2013. We think this is a strong commitment from the industry towards Deutsche Telekom as a trusted partner with a strong international brand.

When you talk to airlines, what are their biggest concerns about installing inflight connectivity? 

Airlines want to understand the needs of the market in terms of mobile connectivity in order to get a better understanding about the benefit of investing money [in inflight connectivity]. Our goal is to share our experiences, and show how much an airline can benefit by offering a high-speed Internet service in terms of meeting passenger demands and ensuring a direct and immediate return on investment. Additionally, airlines are concerned about whether the technology being offered in-flight can keep up with the trends and demands that passengers are used to experiencing on the ground.

And this is where DT with its long experience and internationally well-known brand really excels; airlines always feel more relaxed about our solution once they get a better feeling about how it’s a future-proof solution. Showing airlines how innovative and transnational is Deutsche Telekom under its T-Mobile brand completes the big picture with respect to the guarantee [to airlines] that both the partners and the technology will be the right choice to stay competitive.

More broadly, do you believe the airline industry has reached a watershed moment in terms of inflight connectivity equipage? Please explain. 

What we see is that most of the airlines are recognising the need for offering high-speed Internet services for passengers in order to stay competitive, regardless of whether an airline positions itself as a low-cost or as a premium flag carrier. The need of the ‘always on’ generation is getting greater and greater. We as Deutsche Telekom have a very good insight and understanding about the entire Wi-Fi market and the future prospects and we strongly believe that offering this service above the clouds follows clear customer demands. That is one of the reasons why we are continuously investing in our technology and why we stepped into this business.

Do you think the industry will gravitate towards a free inflight Wi-Fi model or not? Please explain.

Generally free Wi-Fi is an exception rather than the rule, even on the ground. And even if the service is free-of-charge for the consumer, the service is generally funded one way or another e.g. sponsored, or advertising supported. We strongly believe that airlines especially can benefit [from inflight connectivity], and will have the opportunity to implement value-added services that customers are willing to pay for. Customers understand very well that this is a specific service, provided in a specific area. Therefore, most of the airlines are using the opportunity for connectivity as an additional revenue source. If an airline did wish to offer the service for free, Deutsche Telekom has various business models in place to support that request.

What type of usage rates are you seeing for inflight Wi-Fi? 

Since we launched high-speed Internet access above the clouds the take up rates have increased significantly. We bring in a huge amount of customers and therefore we are reaching the so called “critical user mass” right from the beginning and each and every airline can benefit right from the start from this. It’s safe, it’s easy to use and the speed is the best you can get up in the air.

Do you believe passengers are becoming insatiable when it comes to eating up available bandwidth?

First of all we believe that the bandwidth we are providing today gives passengers an equal experience like on the ground. Due to the fact that the Ku-band [satellite] service is a scalable service we can proactively and quickly fit the need for further bandwidth. We set up a specific reporting that enables us to have a complete overview about usage rates and the market needs. According to several survey results, our customers validate the performance rates as excellent.

Are you open to partnering with other inflight connectivity providers in the future? Have you started any talks with other players?

As mentioned before we are very satisfied to have our strong partner Panasonic on our side. This is a long term and strategic partnership. There is no need to share our expertise with other suppliers.


http://blog.apex.aero/ife/deutsche-telekom-global-connectivity-leader-travel-chain/