Qantas restructure splits domestic, international operations

The Qantas Group (QF) announced it will split the carrier’s international and domestic operations into two distinct businesses as part of its five-year transformation plan launched in August 2011.

 “Qantas International and Qantas Domestic—currently combined as ‘Qantas Airlines’—will be formally managed as two distinct businesses,” a QF statement said. “Each will have its own CEO and its own operational and commercial functions with financial results to be reported separately.” The new structure will be effective July 1.

The restructure will strengthen the Qantas Group’s portfolio and help deliver its previously agreed strategic goals, CEO Alan Joyce said.

The Group also announced a number of executive management changes, including appointing former QF Frequent Flyer CEO Simon Hickey to CEO-QF International; QF Airlines-operations group executive Lyell Strambi to CEO-QF domestic; Group executive, strategy and technology Jayne Hrdlicka to CEO-Jetstar Group; Group executive-international strategy Lesley Grant to CEO-QF Frequent Flyer; and Gareth Evans to CFO.

Article Source : ATW Daily News

Southwest to sublease all 88 AirTran 717s aircraft to Delta

Southwest Airlines (SWA) has reached a tentative agreement with Delta Air Lines (DL) and Boeing Capital Corp. to sublease all 88 AirTran (FL) Boeing 717 aircraft to DL, transitioning three aircraft per month over a three-year period beginning in the second half of 2013.

DL and SWA are still in talks to reach a final agreement with all parties related to aircraft leases. Once final, all 717s would depart the fleet by 2015.

"This is a very complex transaction that requires time and close coordination with multiple parties,” SWA EVP and COO Mike Van de Ven said. “While we do have a tentative agreement with Delta, final details must be completed with all parties before a binding agreement between Delta and Southwest can be completed."

SWA said it currently plans to keep its total fleet count “relatively flat” as the 717s transition to DL, and will replace FL 717 flying with 737 aircraft. It will maintain service to all previously announced airports, it stressed.

“All pilots would train and transition directly into the airline's 737 fleet as the 717s are reduced,” SWA said. “AirTran flight attendants and maintenance personnel are currently trained on both aircraft types.”

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Thai Airways removes president

Thai Airways International (TG) president Piyasvasti Amranand was removed from his post by the state-run carrier’s board Monday. Executive VP-Strategies and Business Development Chokchai Panyayong was appointed as acting president.

TG’s board said it removed Piyasvasti on the grounds he was a poor communicator, which led to disunity in carrying out the company’s marketing strategies.

Thailand’s Prime Minister said the government had nothing to do with Piyasvasti’s dismissal, Thailand’s national news bureau NNT reported.

Piyasvasti has publically said his dismissal is motivated by politics or internal corruption and is calling for a clarification. He has also threatened legal action, NNT reported, if the cause of his dismissal is damaging to his reputation. 

The selection process for a new president is expected to begin within the next three months, NNT said.

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SuperJet International: SSJ100 crash ‘does not alter our belief in the aircraft or its safety’

Subdued representatives from SuperJet International (SJI) told reporters at the Regional Airline Assn. (RAA) annual convention in Minneapolis Tuesday that the recent crash of a Sukhoi Superjet SSJ100 has not significantly altered plans to manufacture and market the Russian-built regional aircraft.

Declining to provide a full press briefing on the SSJ program, the representatives instead read a statement from SJI CEO Nazario Cauceglia, who expressed both sadness and a determination to move the program forward. Cauceglia said the crashed SSJ100, which was on a demonstration flight in Indonesia May 9, lost radio contact about 20 min. after takeoff. He noted that the crashed aircraft made its first flight in July 2009 and had accumulated more than 800 flight hr. “No serious technical issues” ever arose during previous flights, he said.

“Every effort is being made to determine what went wrong and why,” he added. “It does not alter our belief in the aircraft or its safety. The sadness we feel … will remain with us forever.”

SJI said Superjet production has not been slowed in the aftermath of the crash, which killed all 45 people on board the aircraft.

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Air India pilot strike overshadows 787 delivery

Indian flag-carrier Air India’s (AI) long-haul flights on international routes continued to be crippled as the pilot strike enters the 15th day, overshadowing the carrier’s Boeing 787 delivery later this month.

Pilots from the Indian Pilots Guild (IPG) have hardened their position and so has the government. The minister for civil aviation Ajit Singh invited the airline’s other 13 unions to a meeting but refused to talk to the striking pilots group. More than 100 pilots have already been sacked.

The pilots’ sickout is a result of the government of India’s decision to merge India’s two public sector airlines—Indian (IC), which ran domestic and regional routes, and AI, which operated medium- and long-haul international flights. Though the airlines were merged by government diktat four years ago, they remain deeply divided. Both had completely different pay scales, promotion policies and work cultures.

AI was started by the Tata group in the 1932 and later nationalized by the government. IC was formed by merging half a dozen small domestic carriers that operated in the 1950s. Despite the merger, employees in almost all sections continue to work as if they belong to two separate carriers.

In what may seem like a bizarre situation to outsiders, pilots from the AI part of the airline are objecting to the management’s decision to send their brethren from IC for flight training on the 787.

Pilots from IPG said if pilots from the other group are allowed to fly the 787s, they will lose out on growth opportunities. The loss-making airline is shrinking its fleet and is likely to lease out more aircraft as it struggles to stay afloat. The strike has cost the airline about $40 million so far.

The government has appointed a committee, led by retired judge DM Dharmadhikari, to evaluate the salary structures of employees and suggest a new parity structure. Discussions continue with the unions to bring in a new common structure so employees will have similar conditions of employment.

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Lufthansa A330 MUC-IAD service features all-new onboard products

Lufthansa (LH) on May 22 launched its first scheduled flight with all-new onboard products that include first-, business-, and economy-class seats as well as FlyNet, the first onboard broadband Internet access using a Wi-Fi-enabled laptop or smartphone in every travel class.

The aircraft, an Airbus A330-300, operating the Munich (MUC)-Washington Dulles service, is the first of three of the type to be delivered to LH this year; two additional aircraft are dedicated to Swiss International Air Lines.

LH will introduce its first Boeing 747-8 Intercontinental Frankfurt-Washington service featuring the all new products June 1.

LH German board member Jens Bischoff told aboard the Hamburg-MUC delivery flight that “when all aircraft have new seats in all classes by 2014, we expect €300 million in additional earnings.” He said that LH this year has invested €1.5billion ($1.92 billion) in new aircraft and €300 million in new service products. “We ordered 7,000 new business-class and 800 new first-class seats, the biggest order of any airline,” Bischoff said.

LH completed reconfiguring narrowbodies this spring and will install new first-, economy-class and business-class seats on its A380s in 2014. 

In this new cabin configuration, the number of business-class seats will shrink from 98 to 92.

Deutsche Lufthansa AG executive board member Carsten Spohr told the company is considering adding a premium-economy class and will make a decision in the next six months.

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A330 freighter conversions given go ahead

Airbus, ST Aerospace and EADS EFW have finalised the agreement to establish the collaboration for the launch of the A330 Passenger-to-Freighter (P2F) conversion programme which has been in demand from several of the major Middle Eastern carriers since the MoU for the project was first announced at the Singapore Airshow earlier this year.

ST Aerospace leads the A330P2F engineering development work in collaboration with Airbus and EADS EFW, while EADS EFW will lead the industrial phase and undertake marketing and sales activities, supported by Airbus. Most of the conversions will take place at EADS EFW facilities in Dresden, Germany, with the potential for additional capacity at ST Aerospace. 

“The strong demand from airlines for a programme to convert used A330s from passenger configuration into an attractive freighter is clear,” says Tom Williams, EVP of Programmes at Airbus. “Together with ST Aerospace and our sister company EADS EFW we have the perfect partnership to bring efficiency, reliability and profitability to our operators.”

The A330P2F programme includes two versions – the A330-200P2F and the larger A330-300P2F. Of the two models, the larger A330-300P2F will be particularly suitable for integrators and express carriers thanks to its high volumetric payload capability with lower-density cargo. Meanwhile, the A330-200P2F will be optimised for higher-density freight and longer range performance. Entry-into-service of the first A330P2F is targeted for 2016.

As well as complementing the factory-built A330-200F in service today, the A330P2F freighter conversion programme will also enhance and sustain A330 Family residual values by extending the economic lives of A330 airframes.

Approximately 2,700 freighters will be required over the next 20 years, and around half of these will be in the mid-sized freighter segment, including 900 conversions. Addressing this requirement, both the A330-200P2F and the A330-300P2F facilitate the change to environmentally-friendly, new-technology converted freighters, while recognising the operators’ focus on capital cost.

Article Source : Arabian Aerospace

Oman orders eight Airbus Military C295 aircraft

The Royal Air Force of Oman (RAFO) today signed a contract with Airbus Military for the acquisition of eight C295 aircraft, five of them configured as tactical transports and three as maritime patrol aircraft (MPA).

They will be delivered from next year.

As well as upgrading the tactical transport capability of the RAFO in hot and dusty conditions, the aircraft will enhance Oman´s ability to patrol its territorial waters and to conduct missions against piracy, illegal immigration and smuggling.

Oman becomes the first country of the Gulf Cooperation Council to order the C295. It is also the fourth customer to order the C295 in the MENA region and the first in the area to order the C295 for maritime patrol operations.

Two Airbus Military CN235 aircraft are already operated by the Royal Oman Police.

“We are very proud of this new contract with Oman which demonstrates the satisfaction of our customer with our aircraft,” said Domingo Ureña Raso, CEO of Airbus Military. “This order underlines our leadership in this segment with over 100 orders. It confirms the excellent performance of the C295 in desert environments where its robustness and ability to cope with extreme heat are critical.”

This new deal means that 108 C295s have now been ordered, with 85 currently in operation with 13 countries.

Article Source : Arabian Aerospace

iPad introduced for ground school training at Horizon

Horizon International flight academy, based at Al Ain International airport, has introduced the iPad for Ground School (Theoretical Knowledge) training.

Horizon said that using the iPad as a teaching aide for the theoretical knowledge phase will transform the learning environment and make the instructor – cadet time more effective. 

“Though aircraft technology has evolved over time, the initial training has basically remained unchanged.  We are sending students to very complex aircraft, and want to ensure that we remain at the cutting edge of technology,” said Hareb Thani Al Dhaheri, Horizon’s CEO, speaking at the launch of the iPad at the academy.

 

Article Source : Arabian Aerospace

Ryanair posts record FY profit; warns of gloomy economic outlook

Irish-based low-cost carrier Ryanair (FR) has announced a 25% leap in annual post-tax profits to a record €503 million ($641 million), compared to €401 million in the year-ago period. It warned that FY13’s figures are likely to decline, given the combination of rising fuel costs and Europe’s gloomy economic outlook.

FR’s results included a 19% increase in revenue to €4.32 billion and a 5% rise in passengers to 75.8 million, despite the grounding of up to 80 of its 294 Boeing 737s over the winter.

Ancillary revenue rose 11% to €886 million, or 21% of total revenue. Excluding fuel, sector length-adjusted unit costs were flat.

The company’s fuel bill went up €360 million and it anticipates further increases in the coming year. It has hedged 90% of its FY13 fuel at approximately $101 per barrel, a 22% increase on last year, but significantly lower than current prices, the airline said.

The carrier again proposed grounding a large proportion of its fleet next winter, because of fuel costs and what O’Leary described as “the refusal of some monopoly airports, notably Dublin and [London] Stansted, to lower winter charges. This makes it more logical to ground up to 80 aircraft rather than suffer losses flying at very low winter yields in FY13.”

Despite this move, it anticipated traffic again will grow to 79 million passengers, with annual profits in the €400-€440 million range.

Looking forward, FR CEO Michael O’Leary forecast that Europe’s fiscal problems will result in more airline bankruptcies, following Malev, Spanair and Cimber Sterling and the possible closure later this year of bmibaby if a purchaser is not found.

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Spanish investor acquires bankrupt Mexicana, may relaunch in June

Mexicana Airlines (MX), which suspended operations under severe financial distress in August 2010, may relaunch operations June 9 after Spanish hotel and air transport group Med Atlantica acquired 95% of the bankrupt carrier’s shares.

Federal judge Felipe Consuelo accepted and approved the deal, based on Med Atlantica’s ability to take over the airline from major shareholder Tenedora K business group, according to Mexican press. The company had 95% shares in holding company Nuevo Grupo Aeronáutico, which also owned subsidiaries Mexicana Click and Mexicana Link. The Mexican Airline Pilots Union (ASPA) owned the remaining 5%, which also have been purchased by the Spanish group. 

CEO Christian Cadenas told the press that part of the share payment is due immediately and final payment is due within 14 years. The share sale is only part of the process, however, as Med Atlantica must now negotiate debt payments to creditors and the 8,600 employees who have not received wages since Aug. 2, 2010.

ASPA said that 280 pilots are being trained on simulators and in MX’s parked aircraft as the carrier gears up to restart operations with nine aircraft next month. However, the airline must get an air operators certificate from the director general of civil aviation before returning to the air, as well as slots frozen in 2010.

Med Atlantica, which owns the Blue Bay hotel chain, with 18 units in 13 countries, including Mexico, also has a major stake in Air Transat, Canada’s leading charter carrier. 

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Air China launches business jet subsidiary Beijing Airlines

Air China (CA) has launched Beijing Airlines after a one-year trial operation to enhance its position in the fast-growing domestic business aviation market.

The new venture received its operating certificate from the Civil Aviation Administration of China (CAAC) in April 2011 and started trial operations the following July with a registered capital of CNY1 billion ($157.4 million).

CA holds a 51% stake, Beijing Enterprises Group Co. and Beijing State-Owned Assets Management Co. each hold an 18% stake, and Zhongda Yinrui Investment Co. has a 13% ownership in the new airline.

According to chairman Fan Cheng, the new carrier reported a 2011 net income of CNY18.9 million and an operating revenue of CNY59.6 million. The Beijing-based airline has 11 business jets in its fleet.

Embraer predicts China will need 470 business jets worth $14.3 billion by 2020.

All major Chinese carriers have been exploring the burgeoning business aviation market in China. The new venture is expected to face fierce competition from Capital Airlines, the Beijing-based business jet subsidiary of Hainan Airlines launched with the assets of Deer Jet in May 2010.

Article Source : ATW Daily News

FAA reconsidering cargo pilots’ exemption from new fatigue regulations

FAA is reconsidering its exemption for cargo carriers from its pilot flight time, duty and rest regulations, conceding that it made “errors” in developing its justification for the exemption.

FAA finalized strict new fatigue rules for pilots late last year, but cargo pilots were not included in the new regulations. The Independent Pilots Assn. (IPA), representing about 2,700 United Parcel Service (UPS) pilots, challenged the exemption in court. “The rule is wholly and utterly opaque when it comes to providing any factual support for the cost-benefit conclusions reached,” IPA said.

FAA acknowledged last week that it has asked the court to suspend the IPA’s case “while the agency corrects inadvertent errors found in the FAA's cost-benefit analysis for cargo flight operations. The FAA will ask an outside group to review the cargo analysis and then will reissue the cargo analysis for public comment.”

IPA president Robert Travis said, “In the context of our lawsuit, the FAA is now willing to allow for an open and public examination of the costs and benefits of having one level of aviation safety … Make no mistake, this is not a final victory. However, getting the FAA to reconsider this critical safety issue under the bright light of full public scrutiny and accountability is an important first step.”

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Aeroflot reports $491 million profit in 2011

Russia’s Aeroflot (SU) has reported a 2011 profit of $491 million, up 94% from a $253 million profit in the year-ago period. Revenue rose 25% to $5.3 billion and traffic revenue increased 21% to $4.5 billion. Operating costs rose from $2.9 billion to $4 billion year-over-year.

The airline said the results, in accordance with International Financial Reporting Standards, were due to the growing number of passengers. It also sold shares in several subsidiaries, including Moscow Insurance Company, Nordavia Airline and Sheremetyevo Refueling Complex, among others.

“The aggregate gain on disposal related to mentioned transactions recognized income is $424 million,” SU said in a consolidated financial statement.

In 2011, SU carried 14.2 million passengers, up 25.6% compared to the year-ago period. The carrier’s fleet exceeds 100 aircraft and includes 15 Airbus A319s, 43 A320s, 18 A321s, 14 A330s, nine Boeing 767s, six Ilyushin Il-96-300s and eight Sukhoi SSJ100s.

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Qantas to consolidate maintenance facilities; cuts 500 jobs

Qantas (QF) will consolidate heavy maintenance work into Brisbane (BNE) and Avalon (AVV), the Australian carrier said in a statement. The move ends Tullamarine’s (MEL) role in QF’s heavy maintenance, resulting in a loss of 500 jobs.

The company said there is not enough heavy maintenance work to justify three separate facilities. New technology and incoming modern aircraft means there will be a further 60% reduction in heavy maintenance requirements over the next seven years, it added.

Heavy maintenance on Boeing 737 aircraft will move from MEL to BNE along with 767 aircraft and Airbus A330s. AVV will continue to maintain 747s. “It will also conduct some work on 737s and 767s, some aircraft reconfiguration work and remain available for one-off maintenance tasks,” it said.

QF CEO Alan Joyce stressed QF’s commitment to being the only major airline in the world to do heavy maintenance at its own facilities in Australia while pointing out the costs.

“Like the manufacturing industry, aviation maintenance is a labor- and capital-intensive sector. Our cost base in heavy maintenance is 30% higher than that of our competitors—we must close this gap to secure Qantas’ future viability and success,” he said.

Article Source : ATW Daily News