China signs for 88 new Airbus 320 aircrafts

China placed an order for 88 Airbus A320 planes on Tuesday, putting a bubbling trade row with Europe over a proposed emissions scheme aside as it tries to to fuel economic growth. Airbus said on Tuesday it had signed the deal with China Aviation Supplies and Industrial Commerce Bank of China. The deal, worth USD$7.5 billion at list prices and with deliveries scheduled for 2012-15, was signed by Airbus president Tom Enders and CAS President Li Hai during a visit to Germany by Chinese Premier Wen Jiabao. The visit came days after industry sources said China had delayed the high-profile announcement of a USD$3.8 billion order for 10 Airbus A380 superjumbo jets at the Paris Air Show to protest over European Union emissions trading rules. Under plans to include international aviation in its carbon market from next year, the EU would require all airlines flying to Europe to buy permits for each tonne of carbon dioxide they emit above a certain cap.

While China continues to put the brakes on lucrative orders of European wide-body aircraft, industry analysts said it seemed as though China was pulling back from a full-blown trade spat to protect economic growth. Although it plans to start competing with Airbus and Boeing by building its own narrow-body passenger jets from the second half of this decade, China is still ordering large volumes of Airbus A320s and Boeing 737s to feed huge traffic growth. Ordering A320s is also in the country's interest as Airbus began assembling planes for the Chinese market at a factory in Tianjin, outside Beijing, in 2009. While China typically schedules aircraft orders to coincide with political visits, the deals can be difficult to break down. In November 2010, China and France announced 102 Airbus orders during a visit to Paris by President Hu Jintao, but the manufacturer said only 66 involved new contracts. In January, China announced final approval for 200 Boeing aircraft worth USD$19 billion in a boost for President Barack Obama as Hu visited the United States. Again, analysts said the deals had been in the works and accounted for by investors for some time.

Tuesday's orders were all new and firm, Airbus claimed.

More Pilots and Mechanics needed - Boeing

The world’s commercial airlines will need 460,000 new pilots and 650,000 new maintenance technicians by 2030, Boeing predicted Wednesday.
“Clearly, the sheer size of this vital pipeline is staggering,” Sherry Carbary, vice president, Boeing Flight Services, said in a news release. “To meet the demand for capable, well-trained people, Boeing and the aviation industry need to move with the speed of technology to provide the tools, training and work environment that tech-savvy pilots and technicians will expect from us.”
The demand amounts to an average of 23,000 new pilots and 32,500 new technicians per year to account for growth and retirements.
The Asia Pacific region alone will need 182,300 pilots, 72,700 of them in China, and 247,400 technicians, 108,300 in China. Here’s projected demand in other regions:

• North America – 82,800 pilots and 134,800 technicians;
• Europe – 92,500 pilots and 129,600 technicians;
• Africa – 14,300 pilots and 19,200 technicians;
• Middle East – 36,600 pilots and 53,000 technicians;
• Latin America – 41,200 pilots and 52,500 technicians;
• Russia and the Commonwealth of Independent States – 9,900 pilots and 13,500 technicians.

Paris air show aircraft orders' list

The orders confirmed by Airbus and Boeing as it stands at Paris air show.

Company Firm Value Provisional Value

Airbus 312 $30.2 bln 318 $29.5 bln

Boeing 47 $7.5 bln 94 $14.9 bln



Last year at Farnborough Airshow, Airbus unveiled net new orders for 130 planes worth over $13 billion, and Boeing 103 new orders worth over $10 billion.

Between them, they racked up a combined 176 provisional orders worth over $19 billion



AIRBUS ORDERS BY CUSTOMER:
FIRM ORDERS

Company No of aircraft Type Value

LAN 20 A320neo $1.8 bln

IndiGo 30 A320 $2.5 bln

IndiGo 150 A320neo $13.7 bln

TransAsia 6 A321neo $0.6 bln

Air Lease Corp 11 A330 $2.4 bln

Air Lease Corp 1 A321 $0.1 bln

SAS 30 A320neo $2.7 bln

GECAS 60 A320neo $5.5 bln

Saudi Arabian 4 A330 $0.9 bln



PROVISIONAL ORDERS

Company No of aircraft Type Value

Alafco 30 A320neo $2.7 bln

Republic 40 A320neo $3.6 bln

Republic 40 A319neo $3.4 bln

Avianca 18 A320 $1.5 bln

Avianca 33 A320neo $3.0 bln

Alafco 6 A350-900 $1.6 bln

Garuda 15 A320 $1.3 bln

Garuda 10 A320neo $0.9 bln

JetBlue 40 A320neo $3.6 bln

CIT 50 A320neo $4.6 bln

Air Lease Corp 36 A320neo $3.3 bln



BOEING ORDERS BY CUSTOMER:

FIRM ORDERS

Company No of aircraft Type Value

*Malaysian 10 737-800 $0.8 bln

*Aeroflot 8 777-300ER $2.3 bln

Norwegian 3 787 $0.6 bln

Norwegian 15 737-800 $1.2 bln

Mongolian 1 767-300ER $0.16bln

Mongolian 2 737-800 $0.16bln

Unidentified 2 747-8 $0.6 bln

*Qatar Airways 6 777-300ER $1.7 bln * - orders were previously in Boeing order book but customer was unidentified



PROVISIONAL ORDERS

Company No of aircraft Type Value

UTair Aviation 7 737-900ER $0.6 bln

UTair Aviation 33 737-800 $2.7 bln

GECAS 8 777-300ER $2.3 bln

GECAS 2 747-8F $0.6 bln

Unidentified 15 747-8 $4.8 bln

Air Lease Corp 20 737 $1.6 bln

Air Lease Corp 5 777 $1.4 bln

Air Lease Corp 4 787-9 $0.9 bln

Boeing bags an additional 10 B737-800NG order from Malaysian Airlines

Boeing and Kuala Lumpur-based Malaysia Airlines today announced the airline has exercised an option to purchase 10 additional Next-Generation 737-800s. The order is valued at more than $800 million at current list prices. The airline still has purchase rights for an additional 10 Next-Generation 737-800s remaining from their initial 2008 contract. Today's announcement was made at the Paris Air Show by Boeing Commercial Airplanes Vice President of Sales & Marketing Marlin Dailey and Malaysia Airlines Managing Director & Chief Executive Officer, Tengku Dato' Sri Azmil Zahruddin Raja Abdul Aziz. His Excellency Tan Sri Abdul Aziz Zainal, the Malaysian Ambassador to France, was also in Paris for the signing ceremony. "Today we celebrate Malaysia Airlines as key member of the Next-Generation 737 family of operators and we welcome this occasion to strengthen our long-term relationship with a valued partner," Dailey said. "The selection of the Next-Generation 737 to support the airline's strategic fleet modernization plan reinforces the superior economics of the most fuel efficient single-aisle airplane operating in today's market."

Malaysia's 737s are the first in Asia to sport the passenger-pleasing Boeing Sky Interior and are fitted with Blended Winglets, which improve fuel efficiency by up to four percent, increase flying range, and reduce CO2 emissions and takeoff noise. "The option we exercised today marks another step in Malaysia Airlines' mission to strengthen and build upon the airline's award-winning service and passenger value, efforts that support the company's business transformation strategy to profitable operation," said Tengku Azmil. "Boeing's Next-Generation 737, with its economic advantages, including unmatched fuel efficiency, is the right airplane to support our business and our customers." The digitally designed Next-Generation 737 is the most technologically advanced airplane family in the single-aisle market. The 737-800, which can seat up to 189 passengers, is 771 kilograms (1,700 pounds) lighter, can fly 583 kilometers (315 nautical miles) farther while carrying 12 more passengers than the competing model. Malaysia Airlines, with a 64-year history as the national carrier of Malaysia, operates a mixed fleet of short- and long-haul airplanes, including 747 passenger and freighter, 777, 737-800s and Classic 737 airplanes. The airline flies nearly 45,000 passengers daily to more than 100 destinations worldwide.

Yet another Tupolev crashes in Russia

A passenger jet crashed in heavy fog and burst into flames late Monday on a highway in north-western Russia, just short of a runway whose fog lights had failed, killing 44 people, officials said. Eight people survived the crash. The Tu-134 plane, belonging to the RusAir airline, was en route from Moscow to the city of Petrozavodsk, an Emergencies Ministry spokeswoman, Oksana Semyonova, told The Associated Press. Her ministry said in a website statement that 44 people were killed. Eight survivors, including a 10-year-old boy and a female flight attendant, were hospitalized in critical condition in Petrozavodsk.

Semyonova said the plane went down on its final approach to the airport in Petrozavodsk, making a crash landing one to two kilometres (about a mile) short of the runway, breaking apart and then bursting into flames. It was unclear if the plane had attempted to land on the road, or just happened to fall there, she said. Petrozavodsk is in Karelia province, near the Finnish border, about 400 miles (640 kilometres) northwest of Moscow. Authorities had no immediate explanation for the accident, but the Interfax news agency quoted the airport director Alexei Kuzmitsky as saying there were "unfavourable weather conditions." Compounding the pilot's troubles was the failure of the runway's high-intensity illumination, which is supposed to be deployed at times of low visibility, Alexei Morozov, deputy head of the Interstate Aviation Committee, told the ITAR-Tass news agency.

A RusAir representative who declined to give his name told The Associated Press that the plane was in good working order and that the weather conditions, although tricky, "weren't critical." The Tupolev 134, along with its larger sibling the Tu-154, has been the workhorse of Soviet and Russian civil aviation since the 1960s. The model that crashed was built in 1980, had a 68-person capacity and a range of about 2,000 kilometres (1,240 miles). Photographs on the ministry website showed fragments of metal strewn across a road as thick fog hung over woodland in the background. A landing gear jutting out from the ground was the only recognizable plane part. The plane was carrying 52 people, including nine crew members, Semyonova said. Russian news agencies said Russian Premier League soccer referee Vladimir Pettay and a Swedish citizen were among the victims.

The Karelia branch of the Emergencies Ministry said radio contact with the pilot was lost at 11:40 p.m. local time (7:30 p.m. EDT, 1940 GMT). The black box flight data recorders have been recovered, the news agencies said. The accident occurred on the eve of Prime Minister Vladimir Putin's planned appearance Tuesday at the Paris Air Show to support dozens of Russian firms seeking sales contracts. Russia and the other former Soviet republics have some of the world's worst air traffic safety records, according to the International Air Transport Association. Experts blame weak government controls, poor pilot training and a cost-cutting mentality for the poor safety record, leading to emergency landings being reported with alarming regularity. Polish President Lech Kaczynski was among 96 people killed when his Tu-154 crashed in heavy fog while trying to land near the western city of Smolensk in April 2010. In 2006, three crashes - two in Russia and one in Ukraine - killed more than 400 people.

Big orders help AirBus

Airbus said on Monday it had won an order for 60 narrow-body A320neo planes worth $5.1 billion at list prices from the commercial aircraft leasing and financing arm of General Electric. Analysts expect narrow-body planes, the backbone of fast-growing budget airlines, to be a key battleground for orders between Europe's Airbus and U.S. rival Boeing at the biennial air show. Airbus believes it has the upper hand with the A320neo, whose more efficient engines save airlines 15 percent in fuel costs, according to the company. Engine maker Pratt & Whitney boss David Hess said on Monday he expected an astounding amount of demand for the A320neo. Sources close to the matter said Airbus was also likely to report an order on Monday for 30 A320neos worth about $2.4 billion at list prices from Scandinavian airline SAS.

Qatar Airways said it hoped to conclude a deal this week to buy A320neo planes as well. Boeing conceded it might lose some customers while it makes a decision about whether to re-engine or redesign its competing 737 narrow-body plane, although it was confident of winning out over the longer term. It also upstaged Airbus with successes in other plane sizes and booked the first big order of the show for six 777-300ER wide-body jets worth $1.7 billion at list prices from Gulf carrier Qatar Airways. Analysts expect Middle Eastern and Asian airlines to dominate the buying as they seek to boost transport links for their booming economies. The Boeing deal came a day after Airbus unveiled plans to boost the range of its future competing A350, of which Qatar is the biggest customer.

Paris air show - orders soar

Airbus faced the unexpected and daunting task on Monday of delivering a marketing blow to rival Boeing and maintaining momentum for a revamped jet with its two flagship planes grounded at the Paris Air Show. The European planemaker has targeted an order surge worth tens of billions of dollars, but was left reeling as the world's largest aviation event was jinxed by a series of mishaps including a taxiway collision involving the A380 superjumbo. The right-hand wing-tip of a test plane for the world's largest jetliner, with a wingspan of almost 80 meters (yards), scraped a building at Le Bourget airport on Sunday and was withdrawn from the air show's traditional flying displays.

A second aircraft, the delayed European A400M airlifter, was also withdrawn from air display after a gearbox problem but will be allowed to perform in a flypast when French President Nicolas Sarkozy inaugurates the biennial event on Monday. The A380 collision caused dismay hours after the arrival of its new rival Boeing's elongated 747-8 superjumbo which is showing its distinctive silhouette abroad for the first time. The latest version of the legendary 747 jumbo touched down in orange and red "sunrise" livery symbolizing the importance of Asia, whose economic growth is set to dominate aviation in coming years starting with this week's air show. Industry sources expect some sales of both the A380 and 747-8 during the June 20-26 event but the main joust for market share concerns narrow-body, medium-haul 150-seat planes.

The air show could bring two record deals on successive days as Airbus tries to woo buyers for a revamped A320neo with more efficient engines, saving airlines 15 percent in fuel costs. "We clearly believe in the business case and the orders you are going to see at the show are going to be astounding," said David Hess, chief executive of engine maker Pratt & Whitney. Buyers are already camped out in Paris hotels to negotiate the final details of major deals but are aware that Airbus has staked a lot on winning a slew of orders for the A320neo at the Paris show, and some are said to be digging in their heels. A $16 billion provisional deal from IndiGo to buy 180 A320neo passenger jets, first announced in January, was mired in further negotiations that could spill beyond the air show. The deal if finalized would set a record for the number of planes in one transaction. But sources say if all goes to plan it is set to be eclipsed by a 200-plane order being fine-tuned between Airbus and Malaysia's AirAsia.

Demand for aircraft is on a sharp rebound driven by demand from Asia's rapidly growing airports and the Middle East. "Those two markets will enjoy at least one-third if not more of the demand increase for global air traffic in the next decade," said Philip Toy, a managing director at Alix Partners. The Airbus A320neo has also benefited from airline concerns about fuel costs. Boeing said on Sunday it would decide by end-year whether to upgrade its 737 with new engines from about 2016, as Airbus has done, or build an all-new jet in 2019. "They will sell hundreds but it is hard to tell what is gross and what is net, what is a conversion from an earlier order. There are myriad complications," said Teal Group analyst Richard Aboulafia said of the A320neo.

Orders are likely to include a confirmation of an $8 billion 100-plane order from leasing giant ILFC and another plane order for both Airbus and Boeing planes another big lessor, GECAS. But it could be Boeing that grabs attention on day one of the show with a sale of 777 wide-body airplanes to Qatar Airways -- a reminder that the two planemakers are battling for market share on a second front after Airbus revamped its A350. Russia and China will flex their muscles as potential rivals to Airbus and Boeing, especially during a Tuesday visit by Russian Prime Minister Vladimir Putin and some analysts expect surprise sales. But Western planemakers say it will be some time before newcomers mount a serious challenge in civil aerospace.

Boeing 747-8 debut at Paris air show

Boeing Co's 747-8 Intercontinental, the new elongated passenger version of its legendary jumbo jet, made its international debut on Sunday, showing its distinctive silhouette abroad for the first time. The high-profile landing of Boeing's new 747 at the Paris Air Show -- three months after its first flight -- marks a show of engineering strength by the world's second-largest plane maker in a competition for control of the wide-body market. "We've seen a great deal of interest in the last six to eight months as the market has gotten better," Randy Tinseth, Boeing's vice president of marketing at Boeing's commercial division, told Reuters.

In Boeing's standard layout, the new 747-8 will have 467 seats, 51 more than its predecessor, but fewer than the 525 of its main competitor, the A380 made by EADS unit Airbus. The actual seat number, however, will be determined by the airlines. Boeing has taken 33 orders for the 747-8 Intercontinental, which will be joined in Paris on Monday by the better-selling freighter version of the plane, which has received 76 orders. The new 747-8 -- in red and orange livery to symbolize the importance of the fast-growing Asian aircraft market -- flew to Paris without passengers but was stuffed with computers, test equipment and barrels of water to simulate passenger weight and to test balance.

The Paris Air Show is the venue of choice for aerospace and defense companies to strut their stuff, to the delight of aviation enthusiasts around the world. The new 747-8 is more than 18 feet longer than its predecessor, with the added length mainly noticeable by the extended hump. The upper deck in the hump traditionally houses the business class section. Plane spotters looking for other differences with the 747 will notice the jagged, clam-shell look of the 747-8's engine casing, which reduces noise. The 747-8 also lacks the upwards-curving winglets at the wingtip, but has raked wings that sweep slightly upwards. Boeing says the raked wings reduce wind resistance and enhance fuel efficiency.

The plane also features bigger windows and some design elements of the new 787 Dreamliner, such as interior lighting that changes colors to help passengers adjust more easily to time changes as the plane crosses time zones. The first 747 made its maiden flight 42 years ago. Since then, the jumbo jet, with its distinctive hump, has become the world's most recognizable plane. The 747 was the world's largest airplane until 2005, when Airbus unveiled its A380. The 747-8 Intercontinental, however, is more than 10 percent lighter per seat than the Airbus A380 and consumes 11 percent less fuel, Boeing says. The Intercontinental lists at $317.5 million. Germany's Lufthansa has ordered 20 of the planes, and is set to be the first airline to bring the new jumbo into service early next year. Boeing says a VIP customer will take first delivery of an Intercontinental in the fourth quarter of this year.

Production of the 747-8 has been delayed, as has the mid-sized 787 Dreamliner, a carbon-composite plane, which represents a bigger leap in technology than the revamped 747-8. Although the 747-8 and A380 will compete directly for years to come, analysts say airlines are mostly interested in lighter, wide-bodied planes in the 200- to 350-seat range, like the 787 and the future Airbus A350, which are designed to bypass crowded hubs and take passengers closer to their final destination.

Cebu Air orders 37 Airbus aircrafts

Philippine budget carrier Cebu Air will buy 37 planes from Airbus for USD$3.8 billion as it looks to more than double its fleet over the next 10 years and expand its routes, the company's chief executive said on Thursday. Lance Gokongwei told reporters Cebu Air has put in orders for 30 new A321neos and seven A320s from Airbus with delivery between 2015 and 2021. The order is in addition to 18 A320s that Cebu Pacific is set to receive from the second half of this year up to 2014. "This is the largest single aircraft order ever made by a Philippine carrier," Gokongwei said, adding it was also the largest firm order for the A321neo in the world. "We expect to launch a flight using A321 by 2017," he said. "We will be able to serve cities in Australia, India, and northern Japan, places the A320 cannot reach."

The airline plans to use internally generated cash and may seek loans from export credit agencies and commercial lenders to fund the purchases. Cebu Air, which operates the country's largest budget airline Cebu Pacific, is a unit of Philippine conglomerate JG Summit Holdings. The airline expects to at least meet its target of flying 12 million passengers this year, up 14 percent from last year, despite rising fuel prices. It currently has 33 jets, of which 25 are A320s and eight are turbo prop planes from aircraft maker ATR. "With the A321neo, Cebu Pacific will be able to fly more people further at significantly lower cost per seat than any other competing aircraft, and with less impact on the environment," Airbus chief operating officer John Leahy said in a statement.

Cebu Air has yet to make an engine choice for the A321neo, but the choices open to it are CFM International's LEAP-X and Pratt & Whitney's PurePower PW1100G. The A321neo, the largest model in the recently launched A320neo series, uses new engines and large wing-tip devices called sharklets that would allow Cebu Pacific to achieve 15 percent reduced fuel burn, a statement from Cebu Air said. Cebu Air competes with flag carrier Philippine Airlines locally and with Singapore's Tiger Airways and Malaysia's Air Asia in the region.

Qantas to cut cost - cancels aircraft orders

Australia's Qantas Airways will cut spending by AUD$700 million (USD$750 million) and plans to cancel aircraft orders as it battles waning demand, high fuel costs and investor displeasure with its shares trading near multi-year lows. Qantas, which suffered a blow to its reputation after an Airbus A380 accident last year forced it to ground its flagship aircraft, said it will cut capital expenditure by AUD$400 million up to the end of fiscal 2012 and will reduce aircraft leasing costs by AUD$300 million. With its shares at two-year lows, pilots threatening strike action, costs rising and the domestic economy going through a rough patch, Qantas has been under pressure to take decisive action, with some analysts suggesting its credit rating could come under pressure.

The airline has already offered cabin crew voluntary redundancy in hopes of cutting 350 jobs and raised fares several times to combat its AUD$3.7 billion fuel bill. Qantas now expects its domestic capacity to grow by just 5.5 percent, below the 8 percent projected earlier and the airline will cancel or defer a fifth of its aircraft deliveries next year. Australia's economy contracted by the fastest rate in 20 years in the first quarter and recent data on retail spending and consumer sentiment indicates households are feeling more pain than earlier thought and were unlikely to sharply raise consumer spending. In addition, households have sharply raised their savings as they expect interest rates and mortgage costs, to go even higher.

Air Arabia delays Jordan hub plan

Low-cost carrier Air Arabia has delayed plans to establish a hub in Jordan due to regional unrest and high fuel prices, the airline's CEO said on Tuesday. "With the current environment, we have delayed the Jordan plans... we will review the situation and take a decision," Adel Ali said. The airline, set up in 2003 in Sharjah in the United Arab Emirates, had planned to open a hub in Jordan in June. It also has a hub in Morocco and launched operations at its third hub in Egypt last year.

Public protests have swept through North Africa and the Middle East, forcing leaders to step down in Egypt and Tunisia and sparking a violent struggle in Libya and Syria, which borders Jordan. Sporadic protests have also been held in Jordan. "Jordan is stable but countries like Syria, Egypt and Tunisia are still facing political instability. There is a lot going on in the region and with the current fuel prices, we thought this was not the right time," said Ali.

Airbus unveils Concept Plane

 

Airbus has unveiled a futuristic concept for a transparent plane that may be everyday air transport in 2050. With its see-through aircraft cabin, passengers of the future will get a window on the world as they fly through the sky. They will be able to see everything to the sides and in front of them.The concept cabin unveiled at the Royal Observatory in Greenwich, London, would be a bionic structure that 'mimics' the efficiency of the bird bone, claimed the company.It would provide strength where needed, and also allows for an intelligent' cabin wall membrane, which controls air temperature and can become transparent to give passengers open, panoramic views.The company believes that mid-century passengers might be able to enjoy a game of virtual golf or take part in interactive conferences, while the cabin 'identifies and responds' to travellers' needs.In the 'interactive zone' there are virtual pop-up projections taking passengers to whichever social scene they want to be in, from holographic gaming to virtual changing rooms for active shoppers.

The 'smart tech zone' is tailored towards the more functional-orientated passenger with what Airbus describes as 'a chameleon-style offering'. It aims to meet individual needs ranging from a simple to a complete luxury service, but all allowing 'you to continue life as if on the ground'. "Our research shows that passengers of 2050 will expect a seamless travel experience while also caring for the environment," the Daily Mail quoted Airbus engineering executive vice-president Charles Champion as saying. "The concept cabin is designed with that in mind, and shows that the journey can be as much a voyage of discovery as the destination," he added.

Thai Air places aircraft orders worth $3.9 billion with Airbus and Boeing

Thai Airways announced Monday that it would acquire 23 Airbus and 14 Boeing airplanes for about $3.9 billion to modernise its ageing fleet after a period of financial turbulence. The carrier said the deals, which have been approved by its board of directors, would enable it to grow profits and be among the top three leading airlines in Asia in terms of quality and service efficiency. The airline plans to buy six Boeing 777-300ER planes, four Airbus A350-900s and five A320-200s for a total of about $1.6 billion, for delivery between 2014 and 2017. It will also lease 22 aircraft, including eight Boeing 787 Dreamliners, to be delivered between 2012 and 2017, a company statement said. "Acquiring new aircraft made from lightweight and non-corrosive composite material to replace retiring aircraft will save fuel and maintenance costs," it added.

The company is bouncing back after a tough spell that saw it sink 21.3 billion baht ($702 million) in the red in 2008 owing to the global financial crisis, high fuel costs and political protests that temporarily shut Bangkok's airports. The carrier posted a net profit of 1.6 billion baht in 2010, up more than threefold compared with 2009 as revenue more than doubled. The airline faces increased competition from regional low-cost carriers such as Air Asia and last year announced plans to start its own budget airline in cooperation with Singapore's Tiger Airways. Currently Thai Airways operates a mixed fleet, including some ageing Boeing 747 jumbos and Airbus A300s, which are no longer being produced.

Thai Airways president Piyasvasti Amranand admitted in October that the carrier's planes were "pretty old" and said the company needed to move quickly given the backlog of orders facing Boeing and Airbus. The new orders are on top of a plan announced a year ago to take delivery of seven Airbus A330-300s medium-range aircraft and eight Boeing 777-300ER long-range planes by 2014 on lease.The group has delayed delivery of six Airbus A380s, now due to arrive starting from 2012, because of a shortage of cash. The launch of Boeing's new 787 Dreamliner, heralded as a new generation of highly fuel-efficient mid-sized aircraft, has been repeatedly delayed due to a string of technical mishaps. Delivery of the first 787s is now scheduled for the third quarter of 2011 to inaugural customer All Nippon Airways of Japan.

Hong Kong Airlines expanding its fleet with A380 orders

Hong Kong Airlines Ltd. will order Airbus A380s as it challenges larger neighbor Cathay Pacific Airways Ltd. and adds flights in China, the world’s fastest- growing air-travel market. The carrier, controlled by the investment arm of China’s Hainan province government, will announce the deal at next week’s Paris Air Show, it said in a text-message reply to questions today. It didn’t elaborate on the number of superjumbos it will buy at the show, which starts June 20th. The world’s largest airliner may help Hong Kong Air compete with Cathay on long-haul routes and offset a looming capacity crunch at the city’s airport caused by delays in building a new runway. The carrier will be the third new A380 customer this year, following Skymark Airlines Inc. and Asiana Airlines Inc., as Airbus boosts sales among smaller Asian carriers. “It’s a good move for brand-building,” said Kelvin Lau, a Hong Kong-based analyst at Daiwa Capital Markets. “It’s quite difficult for newcomers to break into lucrative long-haul routes.”

Hong Kong Air also agreed to order 32 Boeing Co. 787s and six 777 freighters earlier this year to help expand. It had 30 Airbus A320s, 12 A330s and 15 A350s on order as of the end of May, according to the Toulouse, France-based planemaker’s website. The carrier and affiliate Hong Kong Express now operate 18 planes, according to their website. The airline expects to double passenger numbers to 4 million this year as it adds planes and taps China’s rising travel, President Yang Jianhong said in March. The carrier has a less than 10 percent share of Hong Kong’s outbound travel market, Royal Bank of Scotland Group Plc said at the time. The airline will be the second in Greater China to order the A380 following China Southern Airlines Co. Airbus is due to deliver the first superjumbo to China Southern later this year. The planemaker has sold a total of 234 A380s, of which 49 have been delivered, as of the end of May, according to its website.

Orders for the A380 have been dominated by Middle East and Asia-Pacific carriers. Emirates Airline has placed orders for 90, making it the largest customer. Singapore Airlines Ltd. was the first carrier to fly the superjumbo on commercial services. Asiana, South Korea’s second-biggest carrier, signed up for six A380s in January. Skymark, a Japanese budget airline, confirmed an order for four the following month. Cathay Pacific has so far ruled out ordering A380s and is instead building its long-haul fleet with smaller planes. It ordered 15 Airbus A330-300s and 10 Boeing 777-300ERs in March, following an agreement for 30 A350s in August. “We’ll probably have another good look at big aircraft in the next one or two years,” Chief Executive Officer John Slosar said last week in Singapore at the International Air Transport Association’s annual general meeting.

Hong Kong Air is seeking to raise funds by selling a stake to private-equity investors ahead of an initial public offering that may raise as much as $1 billion, Yang said in March. The carrier had a net income of about HK$110 million ($14 million) in 2010, its first annual profit, and it may double that this year, he said. Hong Kong Airport will likely reach full capacity by about 2020 because of growing demand for flights into China, operator Airport Authority Hong Kong said earlier this month as public consultation on plans to build a third runway began. Passenger numbers at the airport may grow as much as 3.6 percent a year, reaching 105 million by 2030, according to estimates on its website. China’s international passenger numbers my rise 11 percent a year through 2014, about double the pace of the global market, according to the International Air Transport Association.

Flying car delayed further

Terrafugia, the company building a roadable aircraft, has indicated the first test flight of its production prototype called Transition should not be expected prior to March 2012. The earliest delivery date is now late 2012. The company’s proposed flight demonstration at EAA AirVenture 2011 has been postponed, but the company hopes to have the vehicle on static display. It will also provide information on progress so far. The flight had been highly anticipated. “We have encountered a number of the challenges that are common in aircraft development programs, including problems with third party suppliers,” said CEO Carl Dietrich. “The good news is that our team has done a fantastic job of minimizing the impact of these problems, and we continue to work through the issues. However, we have been forced to adjust our expected roll-out schedule in light of these challenges.”

The company displayed a proof-of-concept vehicle at Oshkosh in 2008. The vehicle presents a difficult engineering problem; it must meet highway crashworthiness standards and yet be light enough to fly. It will be flown under light sport aircraft rules. Dietrich noted much progress has been made. The company has a contract from the Defense Advanced Research Projects Agency, and has attracted new investment that allowed the staff to double from 12 to 24.

AirAsia could order upto 200 A320's

AirAsia could buy as many as 200 Airbus jets in a landmark deal shaping up to dominate the Paris Air Show, industry sources said. The deal is among the most keenly awaited in a recovering civil aviation sector, and could help to determine the success of the European planemaker's efforts to stymie a draft project by rival Boeing to design a new 150-200 seat aircraft. Under pressure from airlines to provide a cushion against high fuel costs, Airbus is marketing a new version of its best-selling A320 passenger jet with new engines which it says will save 15 percent in fuel bills starting from late 2015. Malaysia-based AirAsia has said it is considering buying at least 150 of the "A320neo" aircraft as the region's largest budget carrier expands in the face of high oil prices.

But industry sources told Reuters that the range of negotiations is higher than previously expected and could reach 200 planes, trumping a 180-plane provisional order from India's IndiGo as the industry's largest ever by number of aircraft. "They are talking about 150 to 200 aircraft," an industry source familiar with the negotiations said, asking not to be named. Such a deal would be worth $14 billion to $18 billion at list prices, depending on the exact model of aircraft involved, though big plane orders tend to generate significant discounts. The record for the largest Airbus deal by value is held by Emirates airline with a $22 billion purchase in 2007.

EADS  subsidiary Airbus declined to comment. A spokesperson for AirAsia said talks were continuing. Both sides hope to announce the deal at the Paris Air Show on June 20-26 but the size of the deal and its timing remain uncertain because of the sums involved, industry sources said. AirAsia founder Tony Fernandes has set his sights on doubling the size of the nine-year-old airline to rival Southwest Airlines' fleet of more than 500 jets. The airline has already ordered 175 of the original design of A320, of which 86 have yet to be delivered.

However in a sign that the Airbus deal should not be taken for granted, Fernandes wrote on Twitter on Friday that he was asked to meet aircraft manufacturer Bombardier in Montreal. The Canadian company wants to challenge Airbus and Boeing with its CSeries planes. Fernandes has regularly broken the secretive protocol of aircraft negotiations by tweeting about the talks. Boeing is mulling whether to follow Airbus down the "re-engining" route by tinkering with its 737 passenger jet or making more revolutionary changes with an all-new plane offering even bigger fuel savings to cash-tight airlines from 2020.

"The A320neo appears to have good traction with current A320 fliers, particularly low cost carriers," said Rob Stallard, aviation analyst at RBC Capital Markets, who predicts around 300 orders for the $90-million jetliner by the end of the year. "Even if Boeing goes ahead with a clean-sheet new narrowbody with entry into service around 2020, we think most Airbus narrowbody customers will stick with the neo due to the high cost of switching providers," he added. Airline executives say a key factor for Boeing will be whether Airbus manages to convert any of its major traditional clients, especially U.S.-based ones such as Southwest.

The AirAsia order, if confirmed, could also give a much-needed boost to transatlantic consortium CFM International. Industry sources say the Cincinnati-based company is the front-runner to win a lucrative contract for the airplanes' engines, breaking a drought of orders after rival Pratt & Whitney scooped up most orders so far for the A320neo. CFM is a joint venture between General Electric and France's Safran. Pratt & Whitney has developed an engine called the Geared Turbofan with a change of architecture for the narrowbody 737 and A320 market, the largest slice of the commercial aerospace industry worth $1.7 trillion in plane sales over 20 years.

Indian Aviation expanding rapidly

India's largest private airline Jet Airways and budget carrier GoAir are in line to order $6.5 billion worth of Airbus aircraft at the forthcoming Paris Air Show, The Economic Times reported on Thursday. The financial daily quoted Jet chairman Naresh Goyal as saying that they were buying 10 A330 aircraft worth $2.5 billion as part of plans to expand its routes in Europe. GoAir is looking to order at least 50 narrow-body A320 jets worth $4 billion for short-haul domestic routes, which will be brought into service as soon as next year, the report said, quoting two sources familiar with the matter.

Both orders were still being negotiated but were in the final stages, the newspaper added, quoting unnamed sources within Airbus. A Jet Airways spokeswoman in New Delhi told AFP that she had no details on the exact nature of the orders, as Goyal was speaking on the sidelines of the recent International Air Transport Association annual general meeting in Singapore. But she added: "We're asking for just a few (aircraft) because that's in line and keeping with our growth plan."

No one was immediately available for comment at GoAir. The Economic Times said budget airline IndiGo would also push ahead with a previously announced order for 180 A320 aircraft with an estimated value of $15 billion, after signing a memorandum of understanding with Airbus last year. Air India, the state-run national carrier, is planning to take 10 A330s and 16 A320s on a rental basis, it added. Aviation has taken off in India in recent years but private airlines have been grappling with rising fuel prices and a slowdown in economic growth that has hit business.

Singapore Airlines in partnership with Virgin Australia

Singapore Airlines and Virgin Australia on Tuesday announced a long-term partnership that will boost their global reach despite the exclusion of the lucrative Australia-US sector. "The alliance will connect Singapore Airlines' extensive international network with Virgin Australia's wide range of Australian and Pacific destinations," the two carriers said in a joint statement. They will share flights, coordinate schedules and undertake joint sales and marketing programmes. The tie-up, announced on the sidelines of a global aviation industry conference in Singapore, will take effect on August 1 if approved by regulators.

The deal has one notable exclusion -- the highly competitive trans-Pacific routes from Australia to the US West Coast that Singapore Airlines has so far been denied by the Australian government. But the two airlines said they were confident the alliance would boost their revenues significantly. "We don't have a specific figure right now, but as you can see, the value proposition speaks for itself," Singapore Airlines chief executive Goh Choon Phong told a news conference. "You can see the potential is really quite immense, both currently as we cooperate and going forward."

Goh hopes the tie-up will boost Singapore Airline's chances of eventually convincing Canberra to allow the Singapore carrier access to the trans-Pacific routes. "I think with greater cooperation, certainly it will strengthen our case," he said. Julius Yeo, an aviation analyst with financial consultancy Frost and Sullivan, told AFP the alliance takes Singapore Airlines one step closer to its dream of competing on the trans-Pacific route. "It's a step forward in penetrating the Australian network. Singapore Airlines has always been very keen on Australia. It's a staggered strategy to target the trans-Pacific route," Yeo said.

The move is the second major business announcement by Singapore Airlines, one of the world's most profitable carriers, in two weeks. On May 25, it said it will create a long-haul budget airline to tap growing Asian demand for no-frills travel to places like Europe, but details have not yet been unveiled. Singapore Airlines announced in May a profit of Sg$1.09 billion ($885 million) in the year to March on revenues of Sg$14.5 billion, but analysts say the airline is under pressure in its traditional core of first and business class travel.

Through the new tie-up, Virgin Australia will have access to about 70 more destinations, while Singapore Airlines customers will have access to about 30 extra routes, the statement said. Virgin Australia group chief executive John Borghetti said Asia was "a critical market" and Singapore Airline's extensive network "will be particularly attractive to our international business and leisure travellers." The airline, formerly known as Virgin Blue, already has a partnership with US carrier Delta on trans-Pacific flights as well as an alliance with Etihad Airways of the United Arab Emirates.

In 2010, New Zealand and Australia approved an alliance between Virgin Blue and Air New Zealand on trans-Tasman routes. At Tuesday's news conference, Goh said Singapore Airlines was still open to offers for its 49 percent stake in British carrier Virgin Atlantic. The Singapore carrier paid 600 million pounds ($981 million at current rates) in 1999 for the 49 percent stake in Virgin Atlantic, which was started by flamboyant British tycoon Richard Branson in 1984. Singapore Airlines has said its investment in the British carrier was not producing the sort of returns it was expecting. Branson has a 26 percent stake in Virgin Australia, a company spokeswoman said.

Malaysian onboard OneWorld

Malaysia Airlines is to join oneworld®, adding one of aviation's most frequent award winners to the world's leading quality airline alliance. Malaysia Airlines was unanimously elected a oneworld member designate by the Chief Executives of the alliance's member airlines, at a meeting on the sidelines of IATA's 2011 World Air Transport Summit, which opens in Singapore today. A formal alliance membership agreement will be completed soon.

Malaysia Airlines is expected to start flying as part of oneworld late next year. As it prepares for its alliance membership, Malaysia Airlines intends to develop bilateral links with a number of oneworld's established partners, who include some of the biggest and best names in the airline industry. It already codeshares with oneworld partners Cathay Pacific and Royal Jordanian. When it becomes part of oneworld, its customers will gain access to the alliance's truly global network. It will expand oneworld's global coverage to almost 950 destinations in 150 countries, served by a combined fleet of more than 2,600 aircraft operating some 10,000 flights a day and carrying 358 million passengers a year.

Three established oneworld member airlines currently serve Malaysia, with Cathay Pacific, Japan Airlines and Royal Jordanian flying to Kuala Lumpur, and Cathay Pacific also to Penang and, through its Dragonair affiliate, Kota Kinabalu. Opportunities for expanding the alliance's coverage of the country will be explored as Malaysia Airlines prepares to join. When it becomes part of oneworld, members of Malaysia Airlines Enrich frequent flyer program will be able to earn and redeem rewards on any of oneworld's 14 other top-class carriers, with top tier members able to use any of the group's 550 plus airport lounges, and its network will be covered by oneworld's range of alliance fares.

At the same time, frequent flyer cardholders of oneworld's established airlines will be able to earn and redeem rewards when flying on Malaysia Airlines. Qantas will serve a s sponsor of Malaysia Airlines entry into oneworld.Malaysia Airlines Chairman Tan Sri Dr Mohd Munir Abdul Majid said: "The Board of Malaysia Airlines had targeted entry into an alliance this year. I am glad we are at the stage where the initiation with oneworld is formalized."

Malaysia Airlines Managing Director and Chief Executive Officer Tengku Azmil Aziz said: "With the world airline industry increasingly focused on alliances, we have carried out careful analysis of the options now available to Malaysia Airlines. The time is clearly right for our company to join one of the global airline groups, and oneworld is clearly the best option for us. As a company highly focused on quality service, we are immensely proud to have been invited to join the highest quality alliance with the best airline partners offering a global network that best complements our own. We look forward to completing all joining requirements as soon as possible."

American Airlines Chairman and Chief Executive Gerard Arpey, Chairman of the oneworld Governing Board, said: "Today's agreement with Malaysia Airlines represents another significant milestone in our effort to establish oneworld firmly as the world's premier airline alliance with members unmatched in brand and service quality. Not only will Malaysia Airlines bolster oneworld's presence in Asia, in North America it will also further strengthen our alliance's position at Los Angeles, where American Airlines has significantly expanded with new international and domestic flights as well as enhanced facilities. We look forward to welcoming Malaysia Airlines to oneworld."

oneworld CEO Bruce Ashby said: "oneworld already features four of the best airlines in Asia-Pacific, including member elect Kingfisher Airlines. Adding another leading Asian carrier, in Malaysia Airlines, will greatly enhance oneworld's offering throughout the world's fast growing region for air travel demand." Qantas Chief Executive Officer Alan Joyce said: "Malaysia Airlines is an ideal candidate for oneworld, with its world-class reputation for customer service mirroring oneworld's own focus. Its Kuala Lumpur home will provide our customers with another of the world's best airports, geographically well placed between our existing hubs. Qantas is delighted to be serving as its sponsor in joining oneworld."

Kingfisher Airlines optimistic about growth

India's Kingfisher Airlines is looking to lease both wide-body and narrow-body aircraft to meet an unanticipated surge in demand as the domestic economy recovers more quickly than expected, the company's chairman, Vijay Mallya, said on Monday. Mallya also told reporters on the sidelines of the International Air Transport Association's annual meeting in Singapore that the company had revived a plan to sell Global Depository Receipts, taking higher oil prices into calculation. Asked if Kingfisher's current capacity was enough to cater to the projected increase in demand, he said: "Not quite, that is why we are looking for leased capacity.

"Kingfisher at one time had several aircraft that were on order from Airbus for delivery in 2010 and 2011. During the 2008-2009 crisis, I actually postponed the delivery of those aircraft to 2012 and 2013," Mallya said. "So right now we are looking for capacity, but our own new deliveries will start in about 18 months." He said he was looking to lease both narrow-body and wide-body aircraft. "We have been experiencing for the last six months unprecedented load factors, which I have never seen in the last six years," Mallya said. "We are running at mid to high 80 percent on every flight, which is extremely healthy."

According to its website, Kingfisher has 66 aircraft, mostly Airbus jets and ATR turbo-prop variants. It has more than 125 planes on order. Loss-making Kingfisher, India's second-largest airline by market share, has restructured its debt by converting almost INR12 billion rupees (USD$268 million) of loans into equity. Its current debt stands at about INR60 billion rupees. Last month, it reported a net loss of INR10.27 billion rupees in the fiscal year ending March 31, versus a loss of INR16.47 billion rupees the year before. But it had positive EBITDA amounting to INR1.4 billion rupees, the company says. "We reported significantly improved numbers and EBITDA profit for the first time. This is a sign of things to come," Mallya said.

He said the company had also revived a proposal to sell GDRs of USD$250 million - USD$350 million, but gave few details. "We had an excellent roadshow for our GDR in January and early February this year and we presented a compelling business plan." He said the plan assumed crude oil at USD$90 per barrel. "The minute crude oil prices started going up to USD$120 plus per barrel, prospective investors asked us to rework our business plans, which we did."

The flamboyant Mallya, who controls the United Breweries Group, owns a Grand Prix motor racing team and a team in India's cricket league, said Kingfisher's growth should be enhanced as it joins the oneworld airline alliance, which also includes Cathay Pacific, British Airways and Qantas. "The opportunities to leverage this alliance are huge," he said, adding that Kingfisher would become a fully operational member by 2012. "We see this as being a contributor of about 5-6 percent of enhanced revenue to us."

He said Kingfisher was continuing to lobby the government to allow foreign airlines to take stakes in Indian carriers. "Airlines in India must raise capital and the opportunity to raise capital from foreign airlines must not be excluded and that's why we will continue to request the government of India to reconsider its foreign direct investment policy." Kingfisher flies to eight international destinations and to more than 50 towns and cities in India. Its fleet of turboprop aircraft will help it to respond to the pattern of wealth creation in India, Mallya added. "There is a lot of wealth in tier-2 and tier-3 cities that is being created," he said. "It is no longer a situation where wealth in India is restricted to the big metro cities, so it offers a huge amount of opportunity. "Kingfisher is well positioned because it has a large number of ATR aircraft which are ideal to service the emerging demand in tier-2 and tier-3 cities," he said.

Airlines are slowly gaining from the global economic recovery - IATA

The International Air Transport Association (IATA) said on Thursday the global economy was recovering more slowly than expected, but was inching upward based on air traffic data, a key barometer of growth. High oil prices, the crisis in the Middle East and Japan's earthquake and tsunami dented growth, but the global economy appeared to be slowly overcoming the effects, said Giovanni Bisignani, director general of the global air industry body.

"From the numbers, the recovery is moving," he told a news conference in Singapore. "It is moving slower than expected because the recovery this year has been affected by many, many different situations (such as) the situation in the Middle East and the situation with the oil price. "What got spoilt in the situation is the price of fuel, because the record (average) price of USD$110 per barrel is not just affecting the profitability of aviation, but it’s affecting the profitability of the entire system."

According to the latest IATA figures, passenger traffic in April grew 11.9 percent year-on-year while freight traffic grew 3.3 percent. But these numbers were distorted because April 2010 was hit by severe air traffic disruptions following the volcanic ash eruption in Iceland. Air freight, which accounts for about one-third of global trade by value, was down 6 percent from a post-recession peak in May last year.

"The speed-up of last year was because you have to build the inventories," Bisignani said. "Once you have rebuilt your inventories, you have to sell your stuff. Now we have slowed down because of that reason." The airline industry itself will remain profitable, but IATA plans to revise its estimates from the latest forecast of USD$8.6 billion and will likely lower that estimate.

"Since (the last forecast), much has happened to make us less optimistic," Bisignani said. "Eliminating all distortions (passenger traffic) is growing at 3-4 percent. Unfortunately, two things are spoiling the party, demand shocks and high jet fuel prices." IATA has 230 member airlines and will hold its annual general meeting in Singapore next week and will announce its latest forecasts at that time.

When the group made the industry-wide profit forecast of USD$8.6 billion in March, it assumed an average oil price of USD$96 per barrel for Brent crude, but the year-to-date average of the oil price now has reached USD$110 per barrel. Load factors, or the amount freight or passenger capacity used, are key to airline profitability. In April, the overall passenger load factor was 77.4 percent, but the freight load factor was only 46.5 percent.

"Maintaining the high load factors needed to support profitable growth will be difficult given the ongoing challenge of matching capacity to volatile demand," Bisignani said. Disrupted supply chains after the Japan earthquake and tsunami disaster, slower growth in China and political unrest in Africa contributed to the slow take-up of freight space, IATA said.

Bisignani said airlines had built up freight capacity last year believing a strong recovery was imminent. "That was slowed down because of the cost of fuel, the Middle East, and all those kind of things. And it takes some time to adjust capacity to the new reality," he said.

Air France A330 crash report

The Air France airliner that crashed into the Atlantic in 2009 was out of control for four minutes, investigators said, in a report raising questions about how crew handled a "stall alarm" blaring out in the cabin. Information gleaned from black boxes, and recovered almost two years after the disaster killed 228 people, confirmed that speed-readings in the Airbus cockpit had gone haywire, believed to be linked to the icing of speed sensors outside the jet. As Air France pilots fought for control, the doomed A330 dropped 38,000 feet, rolling left to right, its engines flat out but its wings unable to grab enough air to keep flying.

The plane crashed on June 1, 2009, en route from Rio de Janeiro to Paris. Black boxes stopped recording at 0214 GMT. France's BEA crash investigation agency said in a detailed chronology of the crash that commands from the controls of the 32-year-old junior pilot on board had pulled the nose up as the aircraft became unstable and generated an audible stall warning. Aviation industry sources told reporters that this action went against the normal procedures which call for the nose to be lowered in response to an alert that the plane was about to stall.

This type of aerodynamic stall is nothing to do with a stall in the engines, both of which kept working as crew requested. "A stall is the moment at which a plane stops flying and starts falling," said David Learmount, operations and safety editor at the British aviation publication Flight International. An aircraft industry safety consultant said the standard guidance in the Airbus pilot manual called in this event for the pilot to lower the nose by pushing the control stick forward.

"The BEA is now going to have to analyze and get to bottom of how crew handled this event," said Paul Hayes, safety director at Ascend Aviation, a UK-based aviation consultancy. "The big question in my mind is why did the pilot flying (the aircraft) appear to continue to pull the nose up," he said. French investigators said the emergency began with the autopilot disengaging itself two and a half hours into the flight and the junior pilot, who had been in control at take-off, picked up manually and saying "I have control".

The autopilot appears to have responded to a loss of reliable airspeed information. This was accompanied moments later by the disembodied voice of a recorded "stall" alert. It is what happened next that is likely to fuel most theories on what preceded the crash, but Air France and its main pilots union insisted faulty speed probes were the root cause. In a passage likely to attract particular scrutiny, the BEA said the pilot "maintained" the nose-up command despite fresh stall warnings 46 seconds into the four-minute emergency.

"The inputs made by the pilot flying were mainly nose-up," the report added. The Airbus jet climbed 3,000 feet to 38,000 feet despite the crew having decided earlier against a climb, and then began a dramatic descent, with the youngest pilot handing control to the second most senior pilot a minute before impact. The captain returned after "several attempts" to call him back to the cockpit but was not at the controls in the final moments, according to information gleaned from black boxes.

By the time the 58-year-old returned, just over a minute into the emergency, the aircraft was in serious trouble: plunging at 10,000 feet a minute with its nose pointing up 15 degrees and at too high an angle to the air to recapture lift. The BEA did not provide extracts of the transcript for the last minute before the jet hit the water with its nose up. It promised a fuller interim report which could say more about the causes of the crash in July.