Airbus sees Asia as recession buffer

Demand for new planes from China and Asia will provide Airbus with a buffer for growth in the event of a global recession resulting from Europe's debt crisis, the company's chief operating officer said on Thursday.  "So far we have 1,000 net orders (from Europe) at the end of August and the air traffic is still good," Fabrice Bregier said.  "However, we might well expect some adjustments in the future. This is very different from 2008-2009. In this case we see a problem of some European states with excessive debt but the real economy is very good," he said on the sidelines of the World Economic Forum in Dalian.  The euro area debt crisis has contributed to increasing concerns in financial markets that the world economy could slip into another recession. Bregier said it may be a "challenge" to avoid another recession that would bring about less air.

Demand for new planes from China and Asia will provide Airbus with a buffer for growth in the event of a global recession resulting from Europe's debt crisis, the company's chief operating officer said on Thursday. "So far we have 1,000 net orders (from Europe) at the end of August and the air traffic is still good," Fabrice Bregier said. "However, we might well expect some adjustments in the future. This is very different from 2008-2009. In this case we see a problem of some European states with excessive debt but the real economy is very good," he said on the sidelines of the World Economic Forum in Dalian.

The euro area debt crisis has contributed to increasing concerns in financial markets that the world economy could slip into another recession.
Bregier said it may be a "challenge" to avoid another recession that would bring about less air traffic and slower growth for airlines. But he said he expected growth in Asia and especially China to provide a suitable growth buffer for Airbus. "If there is a big recession there will be less traffic and so the airlines will not generate the cash to buy new aircraft," Bregier said. "Now we are in the global market, so we don't sell exclusively to Europe or America and in our order book our biggest share comes from Asia, and China plays a big role."
Bregier said Airbus will deliver its first superjumbo to mainland carrier China Southern Airlines in a few weeks and the aircraft will be operational in November.

Boeing said on September 7 that China will need 5,000 commercial aircraft worth USD$600 billion over the next 20 years, a 25 percent increase on the company's previous estimate. Airbus, which currently has a 45 percent market share in China, is due to publish its global forecasts on September 20. Bregier said the firm's market share in China will exceed 50 percent in the next few years.
"We plan to deliver about 90 aircraft in China next year and about 100 this year," he said. In June, China placed an order for 88 Airbus A320 planes putting aside a bubbling trade row with Europe over a proposed emissions scheme as it sought to fuel economic growth. The deal, worth USD$7.5 billion at list price and with deliveries scheduled for 2012-15, was signed by China Aviation Supplies and Industrial Commercial Bank of China.

Although China plans to start competing with Airbus and Boeing by building its own narrow-body passenger jets from the second half of this decade, it has ordered large numbers of Airbus A320s and Boeing 737s to feed traffic growth.
Airbus began assembling planes for the Chinese market at a factory in Tianjin, outside Beijing, in 2009. Bregier said he expects to make inroads into the China market with sales of the A380 superjumbo aircraft. "I think they (other Chinese airlines) will be very interested in A380s when they see the success of China Southern... We expect other top players in China to progressively order A380s," he said. "The trend is clear, China will need bigger aircraft in the future and so we think with the A380, we really have a trump".traffic and slower growth for airlines. But he said he expected growth in Asia and especially China to provide a suitable growth buffer for Airbus. "If there is a big recession there will be less traffic and so the airlines will not generate the cash to buy new aircraft," Bregier said. "Now we are in the global market, so we don't sell exclusively to Europe or America and in our order book our biggest share comes from Asia, and China plays a big role."

Bregier said Airbus will deliver its first superjumbo to mainland carrier China Southern Airlines in a few weeks and the aircraft will be operational in November.  Boeing said on September 7 that China will need 5,000 commercial aircraft worth USD$600 billion over the next 20 years, a 25 percent increase on the company's previous estimate. Airbus, which currently has a 45 percent market share in China, is due to publish its global forecasts on September 20. Bregier said the firm's market share in China will exceed 50 percent in the next few years.  "We plan to deliver about 90 aircraft in China next year and about 100 this year," he said. In June, China placed an order for 88 Airbus A320 planes putting aside a bubbling trade row with Europe over a proposed emissions scheme as it sought to fuel economic growth.

The deal, worth USD$7.5 billion at list price and with deliveries scheduled for 2012-15, was signed by China Aviation Supplies and Industrial Commercial Bank of China. Although China plans to start competing with Airbus and Boeing by building its own narrow-body passenger jets from the second half of this decade, it has ordered large numbers of Airbus A320s and Boeing 737s to feed traffic growth. Airbus began assembling planes for the Chinese market at a factory in Tianjin, outside Beijing, in 2009. Bregier said he expects to make inroads into the China market with sales of the A380 superjumbo aircraft. "I think they (other Chinese airlines) will be very interested in A380s when they see the success of China Southern... We expect other top players in China to progressively order A380s," he said. "The trend is clear, China will need bigger aircraft in the future and so we think with the A380, we really have a trump".

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.

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.

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.

Emirates hunt for qualified FO's in UK and Ireland

Emirates is hiring highly skilled and successful Flight Deck Crew from around the world. Currently recruiting experienced and technically proficient First Officers to fly the extensive international route network. The First Officer position offers an exceptional opportunity for ambitious pilots to develop their career on one of the youngest high-tech fleets, with one of the fastest growing and most profitable airlines in the world. Emirates now has 201 wide-body aircraft worth more than US$85 billion on order to add to it's current fleet of 151 aircraft including A330/A340/A380's and B777's.

Emirates will be conducting Pilot Information Sessions in the UK and Ireland at the end of January. These sessions will provide more information on Emirates Selection Programme, the benefits of living and working in Dubai and details of our remuneration package.

January 24th, 2011 -- 10:00am
Apex City Hotel
61 Grassmarket, Edinburgh
Scotland

January 25th, 2011 -- 10:00am
Dublin Radisson Blu Hotel
Dublin Airport, Ireland

January 26th, 2011 -- 10:00am
Belfast Radisson Blu Hotel
The Gasworks
3 Cromac Place
Ormeau Road
Belfast, Northern Ireland

Korean Air's A380 to have fewer seats

Korean Air is to configure its Airbus A380 aircraft with just 407 seats, the lowest-density layout for the type of any carrier so far. The airline has disclosed details of its seating arrangement for the twin-deck aircraft, which will include an all-business upper deck. Korean Air says this deck will have 94 lie-flat sleeper seats, with 74in pitch.

This will give business passengers a sense of "exclusivity", says passenger business division chief Walter Cho.
Travellers on the upper deck will be able to feel "like they're travelling in their own private jet", he adds.
On the lower deck there will be 12 first-class and 301 economy-class seats. Korean Air is to put the aircraft into service in May 2011, initially on short-haul routes to Japan and eastern Asia.

These initial routes will be followed by longer A380 services to the USA and Europe in August.
It has 10 of the type on order, and five will arrive by the end of next year.
Cho says the aircraft's layout will have a level of comfort that will "provide us with a competitive edge".
Five other carriers operate the A380, with Air France's jets fitted with the highest-density layout of 538 seats.

Passengers might fly supersonic very soon

Supersonic passenger travel was grounded in 2003 when British Airways and Air France cancelled their transatlantic Concorde service because of falling revenues and rising maintenance costs. The Aerion Supersonic Business Jet (SBJ) promises to help travelers break the sound barrier again. Named after a fleet-of-foot horse in Greek mythology, the Aerion SBJ will be able to carry a dozen passengers at speeds of up to Mach 1.5 for more than 4,000 miles. It is currently undergoing proof-of-concept aerodynamic testing of critical components in NASA wind tunnels and under the belly of a NASA F-15 supersonic jet. This Aerion SBJ will make it possible to fly from Paris to New York in four hours and 14 minutes, saving three hours off the trip compared to conventional jets.
And even in the United States, where supersonic flight is banned because of Federal Aviation Administration (FAA) sonic boom restrictions, the SBJ will be able to fly at a high subsonic speed of Mach 0.98 because of its unique, patented wing design, reducing coast-to-coast travel by 41 minutes vs. conventional aircraft.
Design breakthrough
The Aerion SBJ's wing represents a breakthrough in supersonic design and is the key to why the SBJ will be able to avoid the fate of the Concorde. Drag - the resistance caused by air as an airplane flies though it - is the enemy of speed and the enemy of economical operation. The Aerion SBJ's magic sauce is the use of supersonic natural laminar flow (SNLF) technology in the design of the wing. SNLF reduces drag.
Aerion's design completes a virtuous circle - it satisfies environmental regulations while providing economical operation and high performance.  Fastest aircraft are in museums
The passenger jet has been in the performance doldrums for nearly half a century. The first Boeing passenger jet, the four-engine B-707 introduced in the late '50s had a design speed of Mach 0.83. Today's state-of-the art commercial passenger jets such as the Boeing 787 Dreamliner and the Airbus 380 and business jets such the Gulfstream are basically still in the same Mach range because of their wing design, Aerion wants to change that.

The company hopes to have its new generation aircraft certified by the FAA and in the air by 2015. In spite of the worldwide recession that has toiled the entire aviation industry, Aerion has received 50 deposits of $250,000 for the $80 million for SBJ. The company is actively discussing development of the aircraft with a number of potential OEM (original equipment manufacturer) partners and hopes to have a deal in place by the end of the year. Aerion also sees a supersonic future that involves larger commercial passenger jets.

Airbus bags another order from Emirates

Airbus has now bagged a fresh order from Emirates for 32 more A380 super jumbo jets. Emirates had its first A380 in 2008 and since then has taken deliveries of 9 more super jumbos, which takes the tally to 10 A380's with Emirates. It has further 58 deliveries of the super jumbo pending. Now Emirates has placed a fresh order of another 32 more of the super jumbos. All these aircrafts including the previous 58 are expected to be delivered within 2017. The list price of the 32 aircrafts is estimated to be around $11 billion.

Brazil's TAM orders 25 new aircrafts

Looks like TAM, Brazil's largest air carrier has placed order for 25 brand new Airbus aircraft's at the European air show. The orders include 20 A320 single aisle aircrafts and 5 A350 wide body aircrafts, this news is yet to be officially confirmed by the TAM officials and the Airbus officials denied to comment on this issue. If Airbus bags this order then the list price of these 25 aircrafts is almost $3 billion.Sources confirmed that Airbus has bagged an $11 billion deal from Emirates for A380 super jumbo jets.

Emirates to hire

Dubai based Emirates Airlines is all set to hire at least 700 pilots in the next 18 months. Thats suppose to be a very good news for all pilots across the globe who are job hunting. Emirates hopes that the increasing demand for air travel post recession has encouraged them to launch few more new destination's across the world. Emirates is all set to add 6 more new aircraft's to its existing fleet of 147 this year and more in the following years. After taking delivery of its 10th A380 its president said that Emirates has rapid expansion plans and the airline industry is scaling back to the heights in which it was 3 years ago. The rapid expansion plan of Emirates mean more to its right seat pilots where they can jump on to the left quickly.

Series of Qantas Jumbo's being grounded

A Qantas Airlines B747 bound to Melbourne from Los Angles developed a crack on its windscreen, the first officer noticed it during flight. The aircraft landed safely and was grounded for a windscreen replacement before it got back to service
A week before this happened a Qantas A380 was grounded as two of its tyres exploded when it landed at the Sydney airport..