Air India will be paid $500M by Boeing for delays in Dreamliner

Boeing to pay Air India $500 million in compensation because of delays in delivering 27 on-order 787 Dreamliners. The planemaker agreed to the payment two weeks ago, a Civil Aviation Ministry official told reporters at the Hyderabad air show in India today. The carrier may get further compensation as it previously asked for $840 million and it has since asked for more because of further delays, he added.

Boeing's Indian officials denied to comment on this matter. 

Air India pilots protest

Protesting delayed payment of salaries and allowances, a section of Air India pilots on Wednesday warned they would not undertake flying duties from April 1 if their dues were not cleared by then. The Indian Pilots Guild (IPG), which represents the pilots of pre-merger Air India, has shot off letters to Civil Aviation Minister Ajit Singh, Labour Minister Mallikarjun Kharge and others saying that a large number of its members had complained that financial distress could adversely affect their ability to safely discharge their duties and endanger lives.

Hence, its members "will be unable to operate flights on and after April 1, 2012, unless the management clears all the dues", IPG President Jeetendra Awhad said in the letter sent also to Air India CMD, Civil Aviation Secretary and Director General Civil Aviation.

Read more at: http://www.ndtv.com/article/india/wont-fly-from-april-1-if-dues-not-cleared-threaten-air-india-pilots-183667?pfrom=home-otherstories&cp

China to build world's largest cargo aiport

China is planning to construct what would be the world’s largest cargo airport, near Beijing. The authorities plan a 2017 opening for the nine runway airport which is estimated to be a US$4.8B project. State-owned China Radio International said that the as-yet-unnamed airport would have nine runways and handle 5.5 million tonnes of freight a year, once it opens for business in October 2017. The airport will be located in rural Daxing and cover almost 2,700ha.

Lufthansa conducts electric taxi trials on A320

FAA proposes to raise Airline Pilot qualification standards

The Federal Aviation Administration (FAA) today proposed to substantially raise the qualification requirements for first officers who fly for U.S. passenger and cargo airlines. Consistent with a mandate in the Airline Safety and Federal Aviation Administration Extension Act of 2010, the proposed rule would require first officers – also known as co-pilots – to hold an Airline Transport Pilot (ATP) certificate, requiring 1,500 hours of pilot flight time. Currently, first officers are required to have only a commercial pilot certificate, which requires 250 hours of flight time. The proposal also would require first officers to have an aircraft type rating, which involves additional training and testing specific to the airplanes they fly.

Other highlights of the proposed rule include:

· A requirement for a pilot to have a minimum of 1,000 flight hours as a pilot in air carrier operations that require an ATP prior to serving as a captain for a U.S. airline.

· Enhanced training requirements for an ATP certificate, including 50 hours of multi-engine flight experience and completion of a new FAA-approved training program.

· An allowance for pilots with fewer than 1,500 hours of flight time, but who have an aviation degree or military pilot experience, to obtain a “restricted privileges” ATP certificate. These pilots could serve only as a first officer, not as a captain. Former military pilots with 750 hours of flight time would be able to apply for an ATP certificate with restricted privileges. Graduates of a four-year baccalaureate aviation degree program would be able to obtain an ATP with 1,000 hours of flight time, only if they also obtained a commercial pilot certificate and instrument rating from a pilot school affiliated with the university or college.

The proposal addresses recommendations from an Aviation Rulemaking Committee, the National Transportation Safety Board, and the FAA’s Call to Action to improve airline safety.

Dragonair to expand its fleet

Dragonair, a unit of Hong Kong's dominant carrier Cathay Pacific Airways, said on Wednesday that it plans to expand its fleet 20 percent this year by adding six aircraft and will hire more staff to meet growing demand in Asia. Strong demand from China, Dragonair's largest market, helped boost the regional carrier's passenger numbers by 7 percent to a record high last year despite deepening global economic uncertainty. Cathay Pacific reported in January that Dragonair alongside it carried a total of 27.58 million passengers in 2011, up 2.9 percent. It did not provide a breakdown for Dragonair.

The global aviation industry is expected to see a tough year ahead with industry body the International Air Transport Association (IATA) forecasting the industry could lose USD$8.3 billion if the European sovereign debt crisis evolves into a full-blown banking crisis and recession.

Kingfisher to return aircrafts

India's Kingfisher Airlines Ltd plans to return some aircraft voluntarily to lessors after defaulting on payments and has seen a fresh exodus of pilots, local media reported. The Directorate General of Civil Aviation (DGCA) has asked the struggling carrier to explain why it has cancelled a large number of flights since Saturday. Kingfisher will return two more Airbus A320s this month to their lessors, as their leases have been terminated because of payment defaults.

Of the 64 planes in its fleet, Kingfisher is using just over a dozen to operate flights currently. The Times of India newspaper said that 35 of Kingfisher's A320 commanders quit the airline on February 14, followed by another over the weekend. In all, about 300-350 pilots have quit the airline in the last six months, it said, without citing any sources. Kingfisher, controlled by liquor baron Vijay Mallya, has cancelled 32 out of the 240 flights that it operates each day, the airlines said on Saturday, adding that it expected to return to full service within days.

Garuda Orders Bombardier CRJ1000 Jets

Garuda Indonesia will go ahead with a plan to boost its fleet size to 154 aircraft from 89 in three years, despite the threat of overcapacity arising from rival Lion Air's large order, its chief executive said. The remarks came after the Indonesian flag carrier signed a USD$1.32 billion deal to purchase 6 Bombardier CRJ1000 aircraft and lease another 12 from Nordic Aviation Capital plus an option to purchase additional 18 aircraft."They have their business model, they have their targets, it is up to them. But we have our own business plan," chief executive Emirsyah Satar told reporters at the Singapore Airshow. On Tuesday, Indonesian low-cost carrier Lion Air firmed up an order for 230 short-haul 737 jets from Boeing, making it the largest-ever commercial order received by the US plane maker. Lion Air's deal is worth about USD$22 billion based on the list price. Garuda said it will receive five aircraft in the fourth quarter of this year and the order was part of Garuda's plan to expand its fleet size over the next three years. The aircraft will be used to serve short and medium-range routes from its domestic hubs.

Lion Air Orders 27 Extra ATR72 Planes for Wings Air

Indonesia's Lion Air placed an order for 27 additional ATR72 turbo prop planes as the low-cost carrier extended a wave of orders at the Singapore Airshow. Lion Air chief executive Rusdi Kirana told on Thursday that the ATR72 aircraft would be used to extend the network of its regional subsidiary Wings Air, which serves some of Indonesia's remote islands.

The order is valued at USD$610 million at list prices. The latest order brings to 60 the total number of the turbo props ordered by Lion Air to date, of which 16 have already been delivered. ATR is jointly owned by Airbus parent EADS and Italy's Finmeccanica. The deal comes after Lion Air finalised the order of 230 Boeing aircraft and also snapped up two Hawker Beechcraft for use in its charter services. Lion Air's purchases have dominated Asia's largest aerospace event and reflect rapid growth in Indonesia's domestic aviation market, which has been adding traffic at the rate of 20 percent each year.

Boeing gears up to deliver its first 747-8 passenger version

Boeing will make first delivery of the passenger version of its upgraded and overdue 747-8 on February 28 to an unidentified VIP customer, the world's second-largest planemaker said on Tuesday. The company said in an email that it will mark the delivery of the airplane dubbed the Intercontinental with an event near Seattle featuring program leaders and test pilots. The first airline set to receive an Intercontinental is Germany's Lufthansa, which has ordered 20.

The freighter version of the 747-8 was first delivered in October, capping a development delay of about two years. Boeing, which competes with Airbus for sales, has 36 orders for the passenger plane on its books with nine attributed to unidentified VIPs. The Intercontinental can seat 467 passengers and lists at more than $330 million.