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.

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.

Air traffic in US hits a ten year low

U.S. airlines in 2011 operated the fewest number of flights since the hijack attacks on New York and Washington depressed air travel and accelerated the industry's worst-ever financial downturn, government figures on Tuesday showed. The Transportation Department said major airlines, their chief low-cost competitors and the biggest regional carriers, recorded 6.08 million departures last year. Takeoffs were not that low since 2002, when they totaled 5.27 million.

Reduced operations and good summer weather, especially in the East, helped airlines post a 79 percent on-time rating in 2011, unchanged from the previous two years.The overall number of flights by U.S. airlines have steadily declined since 2008 when the recession dampened travel demand. Most recently, stubbornly high fuel prices have prompted airlines to further cut capacity to reduce costs and maintain higher fares.

The industry operating figures were released as President Barack Obama signed into law $63 billion legislation authorizing guaranteed funding of the Federal Aviation Administration (FAA) through 2015. The FAA oversees U.S. air traffic operations at more than 400 airports. The measure approved by Congress last week also includes funding for the next steps in transforming the air traffic network from a radar-based system to one relying on satellites. Proponents say the change will allow for more flights, better routing and fewer delays.

Cathay Pacific cargo down by 19.5% in January

Cathay Pacific Airways said on Monday its January freight traffic fell 19.5 percent as weak demand was exaggerated by the Chinese New Year holiday while passenger traffic was strong. Year-on-year comparisons were distorted by the fact that the Chinese New Year holiday fell in January this year compared to early February in 2011, it added. "Apart from a modest pre-Chinese New Year rush, the cargo markets were generally soft throughout January," said James Woodrow, Cathay's general manager for Pacific cargo sales. “Our key markets remain soft and we have been cutting capacity aggressively to match demand on trunk routes to North America and Europe," he said. Passenger traffic was strong on the Mainland China, Korea and Southeast Asia routes last month; while long-haul routes also performed well due to the timing of the Chinese New Year break, said Cathay's general manager of revenue James Tong. He warned that declining yield in the economy cabin remained an area of concern.

Brace yourselves frequent fliers in India, the aviation industry is about to hit some turbulence

It looks like Indian airlines are not the only ones sweating under the pressure of high operating costs and increasing threats from the competition: even international carriers are feeling the heat and starting to cut capacity to India. That could mean bad news for passengers because ticket prices, at least on some international routes, could rise in the face of reduced competition.

On Monday, Austria’s largest airline, Austrian Airlines, which operates a global route network of around 130 destinations, said it is discontinuing flights in the Mumbai-Vienna sector from March 25 as the route has became unprofitable because of the challenging economic situation and intensifying competition from other airlines.  Unless there is reform in the aviation sector, especially in the matters of jet fuel prices and undercutting of ticket prices by Air India, we’re likely to see more airlines cutting down their operations in India.

Austrian Airline’s CEO, Jaan Albrecht, said in a statement that, “From the summer of 2012 onwards, we shall be sharply increasing flight frequencies to our core markets in Eastern Europe, and building up capacity to the Middle East in a trade-off with the destination of Mumbai.” It’s not the only airline to cite problems with operating in India, which is one of the fastest-growing aviation markets in the world. Local carriers are already floundering massively operating on domestic routes. While passenger traffic has climbed in leaps and bounds in recent years, operating costs, cut-throat price wars and a skewed policy environment mean that more than 80 percent of Indian carriers are losing money. Kingfisher Airlines is a stark case in point.

Not surprisingly, even international airlines are wilting under the same set of pressures. According to a report in the Business Standard, global airline Air France announced that it is reducing its frequency to Delhi, Mumbai and Bangalore to six flights a week, ostensibly to adjust with lower demand in summer, although it’s likely that tough operating conditions would also have played a part that decision.  In the past year, more than five foreign airlines have withdrawn flights from the Mumbai and Delhi routes, citing high operating costs, including high airport and fuel charges. These include AirAsia, Air AsiaX, Thai AirAsia, FinnAir and Virgin Atlantic. Just last month, American Airlines announced it would discontinue its Delhi flights, while Lufthansa also halted its flights to Kolkata.

Other leading global airlines like British Airways, Air France-KLM and Lufthansa have also said they would rethink their plans of flying in and out of Delhi if airport charges are increased by a whopping 280 percent, according to the newspaper report.  Unfortunately, it looks like their problems are just about to multiply because flying out of Mumbai could also get more expensive as the airport operator, MIAL, is in the process of acquiring 16 acres of nearby land, according to another Business Standard report. This expansion cost is likely to result in higher airport development fees, which currently stands at Rs 600 for an international passenger and Rs 100 for a domestic passenger.

Of course, we already know about high jet fuel prices: fuel costs account for nearly half the operating cost of domestic carriers. High sales tax on jet fuel is a big culprit here — about 24 percent , one of the highest in the world. There has been talk of allowing foreign carriers to take up to a 49 percent stake in local carriers, which might ease some financial pressure off local carriers.  But what of international ones? Unless there is reform in the aviation sector, especially in the matters of jet fuel prices and undercutting of ticket prices by Air India, we’re likely to see more airlines cutting down their operations in India.

For fliers, that can only mean higher prices from the airlines that stay back.

Dassault Aviation sings MOU with Reliance Industries in defence pact

India's Reliance Industries and France's Dassault Aviation have signed a pact for partnering in the defence and homeland security sector in Asia's third-largest economy, a spokesman for the Indian conglomerate said on Sunday.  The accord comes less than two weeks after Dassault's Rafale warplanes emerged as the preferred bidder in a $15 billion contest to supply India with 126 fighter jets. India is the world's largest arms importer with plans to spend $100 billion on weapons over the next decade.

Reliance Industries, India's most-valuable company, did not give any further detail on the tie-up with the French company. Controlled by Mukesh Ambani, the world's ninth-richest man, Reliance Industries has been looking to diversify as growth in its core oil and gas business slows. The company has expanded into newer sector such as retail and telecom in recent years.

Dreamliner hit by landing gear malfunction

Boeing Co. and All Nippon Airways are investigating a landing gear problem on the 787 Dreamliner, the first technical glitch reported since the new jetliner entered service less than two weeks ago, the airline said on Monday. Pilots on the first of two aircraft delivered so far to ANA were forced on Sunday to deploy the landing gear using a manual backup system, after an indicator lamp suggested the wheels were not properly down. They landed at Okayama on the second attempt following the incident, the airline said. "We are not yet sure what the problem was, but we are investigating," an airline spokesman said, adding that Boeing was also involved in the investigation. Kyodo news agency linked the problem to a hydraulic valve, but Boeing declined to confirm the cause.

A Boeing spokesman in Europe said: "We are aware of this matter and are on site in Japan with ANA offering whatever assistance they require." The 787 Dreamliner is a revolutionary lightweight aircraft built mainly of carbon composites designed to save fuel. It was delivered in September after three years of production delays and made an inaugural flight on October 26 from Tokyo to Hong Kong followed by regular services from November 1. ANA has said it will fly the aircraft domestically on a trial basis before putting it on long international routes. The 787's two engines power electrical systems that operate flight controls and landing gear. U.S. aviation regulators required that Boeing satisfy extra steps before certifying that system because it was a new design.

Because the high-profile Dreamliner incorporates so many design and manufacturing firsts, the airplane is under increased scrutiny from the aviation community. The plane is about three years behind its original development schedule because of snags in the extensive global supply chain. Boeing departed from traditional use of reliable aluminum construction, opting instead for reinforced carbon composites to improve fuel savings. Many in the traveling public know the Dreamliner as the world's first plastic jet "Teething" problems are relatively common for a new jetliner entering service, but the 787 is under a lot of scrutiny due to its difficult development history," said Richard Aboulafia, an aerospace analyst at Teal Group. "This glitch shouldn't have any impact on customer perceptions of the 787, as long as Boeing aggressively pursues its investigation and implements any needed fix," Aboulafia said.

The incident comes days after a Boeing 767 landed on its belly in Warsaw after the landing gear failed to deploy. The wheels-up landing was hailed as a miraculous escape for the 230 people on board, but aviation experts say such incidents are relatively rare. There have been 10 accidents involving stuck landing wheels since 2000, none of them fatal, according to a database run by the Flight Safety Foundation.The landing gear for the 787 Dreamliner is made by Messier-Dowty.

Azhul takes delivery of the first ATR72-600

Brazilian carrier Azul Linhas today took delivery of the first ATR 72-600 regional turboprop aircraft. Fast-growing carrier Azul has placed orders for a total of 30 ATR 72-600s, with options an additional 10 aircraft. Azul was founded in December 2008, and in less than three years has developed an extensive network of 40 destinations throughout Brazil. In addition to its ATR 72s, Azul operates a jet fleet of Embraer 190s and 195s. With the delivery of the aircraft today, Azul Linhas  becomes one of the first operators of the newest generation ATR aircraft. With the introduction of its new fleet of ATR 72-600s, Azul will continue to support its growing national jet network with shorter haul regional routes. With its current fleet of 8 ATR 72s, Azul serves more cities within the economically vibrant state of Sao Paulo from its Campinas base than any other carrier.

Brazil has become in recent years a booming market for ATR, whose aircraft are optimally suited for the expansion of domestic short-haul routes due to their low operating and maintenance costs, up to 45% less than its competitors. The environmental friendliness of the ATRs, which produce up to 50% less CO2 than other regional aircraft, are also among the reasons for their popularity in Brazil. Today there are 50 ATR aircraft operating in Brazil, a figure expected to more than double within the next three years.  David Neeleman, Founder and Chairman of the Board of Azul, declared: “We are delighted to introduce the new ATR -600 series in Brazil and to be among the very first operators of the newest generation turboprops in the world. In addition to offering our passengers the highest standards of comfort, we are committed to making flying more accessible to Brazilian customers in terms of both frequency and cost. This aircraft fits this mission perfectly."

Filippo Bagnato, Chief Executive Officer of ATR, declared: “With the new ATR 72-600s, the Brazilian regional passengers will have the opportunity of experiencing the new ‘Armonia cabin’, which features the most advanced technologies in terms of comfort, including larger overhead bins and thinner seats with more legroom. Brazil is a very dynamic market and we are convinced that the performance of the ATRs, coupled with the high levels of comfort proposed to passengers, will continue providing us expansion opportunities across the country and in the whole Latin America”.

Qatar Airways to expand its cargo destinations in North America

Qatar Airways is boosting cargo services to North America, days after its Gulf rival Emirates outlined plans for new U.S. passenger routes. Qatar Airways said Sunday it will begin flying Boeing 777 freighters twice weekly to Atlanta and Houston and once a week to Toronto early next month. The flights will originate in the Qatari capital, Doha, and stop in Luxembourg, where freight carrier Cargolux is based. Qatar Airways bought a 35 per cent stake in Cargolux in June. Qatar Airways already runs a cargo route to Chicago and has passenger services to Montreal, Houston, New York and Washington.

Late last month, Dubai-based Emirates said it was expanding its U.S. service by adding nonstop flights to Dallas and Seattle next year.

Arik Air orders 2 Boeing 747-8 Intercontinental

Boeing and Nigeria's Arik Air today announced a deal for two 747-8 Intercontinental airplanes. The order is valued at $635 million at list prices and was previously attributed to an unidentified customer on Boeing's website. The order was announced during a signing ceremony at the Corporate Council for Africa's 8th Biennial U.S.-Africa Business Summit in Washington, D.C. "Air travel within the region continues to grow at a rapid pace and we must prepare our fleet to accommodate that growth," said Sir JIA Arumemi-Johnson, owner and chairman of Arik Air. "Boeing's new 747-8 fits perfectly into our long-term planning. It brings the best operating economics for its size, which is important with the increase in fuel prices."

Arik Air is Nigeria's fastest-growing privately owned airline operating a large fleet of Boeing Next-Generation 737s and serves more than 22 domestic, six regional and three long-haul routes. The airline plans to use the 747-8 on its key long-haul routes. "Arik Air is growing to become a leader in aviation in Africa and Boeing is happy Arik will use the 747-8 as a cornerstone of their future growth," said Van Rex Gallard, vice president of Sales for Africa, Latin America, and Caribbean, Boeing Commercial Airplanes. "With its unmatched operating costs and economics, the 747-8 is the right airplane to help Arik Air meet growing demand." The new 747-8 Intercontinental features a new wing design and an upgraded flight deck. The airplane interior incorporates features from the 787 Dreamliner including a new curved, upswept architecture that will give passengers a greater sense of space and comfort.

Using General Electric's GEnx-2B engines, the airplane will be quieter, produce lower emissions and achieve better fuel economy than any competing jetliner. It also increases cargo volume by 26 percent. "As we look into the future, the 747-8 Intercontinental is a must have for Arik Air," said Sir Arumemi-Johnson. "Our airline strives to bring the best, most efficient and most modern products to our customers and that is exactly what this airplane is."

Boeing delivers Soman Air's first B737-900ER

Boeing has delivered the first Next-Generation 737-900ER with the new Boeing Sky Interior to Tajikistan-based Somon Air, making it the first Central Asian carrier to operate an airplane featuring Boeing's innovative interior. The delivery is also Somon Air's first direct purchase of a 737. "This new interior will set Somon Air apart from other regional operators by bringing a new, unmatched flying experience to our valued customers," said Jamshed Rahmonberdiev, chief executive officer, Somon Capital, which owns Somon Air. "Reliability and fuel efficiency are key considerations and the 737-900ER will contribute to our financial performance as well as help us maintain our high standards of safety in accordance with international air transportation standards."

"We congratulate Somon Air on becoming the first carrier in Central Asia to offer the enhanced 737 cabin experience to its passengers," said Marty Bentrott, vice president of Sales for Middle East, Russia and Central Asia, Boeing Commercial Airplanes. "We look forward to playing a role in Somon's future as it continues to expand its network." The Boeing 737-900ER is the newest member of the Next-Generation 737 airplane family and is also the highest capacity, longest-range airplane in Boeing's single-aisle fleet. The 737 Boeing Sky Interior takes the passenger experience to a whole new level with new overhead bins, LED lighting, new designs for window reveals and sculpted sidewalls.

As part of Boeing's Humanitarian Delivery Flights program, Boeing partnered with Somon Air, the U.S. Department of State's Humanitarian Program and Project HOPE to transport medical supplies to the country's capital Dushanbe. The relief shipment of 2,852 pounds of medical supplies will improve the quality of medical care for the less-privileged in Tajikistan and help alleviate the shortage of medicines needed for oncology, psychiatric health and in the treatment of infectious diseases. "Boeing, through its Global Corporate Citizenship (GCC) organization, supports humanitarian efforts around the world in partnership with nongovernmental agencies and non-profits like Project HOPE," said Liz Warman, director of GCC for the Northwest Region. "Our Humanitarian Delivery Flights program is another way we can continue leveraging our resources to help those in need."

UTair finalizes orders with Boeing

Boeing and UTair Aviation, Russia have signed an order for 40 Boeing Next-Generation 737 airplanes, comprised of seven 737-900ERs and 33 737-800s. The agreement was previously announced at the 2011 Paris Air Show. The order is valued at $3.8 billion at list prices. "UTair is a wonderful business partner with Boeing. We are truly proud of the airline's history and accomplishments in Russian commercial aviation. The Next-Generation 737s with the Boeing Sky Interior will enhance their network and customer appeal for both domestic and international routes," said Marty Bentrott, vice president of Sales for Russia, Central Asia and Middle East, Boeing Commercial Airplanes. All 40 UTair airplanes will be delivered with the new interior that offers unprecedented passenger appeal and comfort with such features as spacious cabin headroom, overhead bins that disappear into the ceiling yet carry more bags and LED lighting that brings any color into the cabin.

Emirates SkyCargo adds new destination in far East and Australia

Emirates SkyCargo, the freight division of Emirates Airline, yesterday celebrated the inaugural service on its new Far East and Australasia freighter route. The weekly air cargo service, operated by its new Boeing 777 freighter, will fly Dubai-Singapore-Sydney-Hong Kong-Dubai, providing the key trading points with additional connectivity to Emirates' Dubai hub, which can link businesses to the 114 destinations on the carrier's network.

The Boeing 777F - which touched down for the first time in Sydney on 12th September - has the capability to carry up to 103 tonnes of freight. "This new route not only bolsters capacity, it provides our customers with more options and increased trade opportunities," said Hiran Perera, Emirates' SVP Cargo Planning & Freighters. "We currently transport cargo in the belly-hold of 126 passenger flights a week between Dubai and Australia, as well 28 Hong Kong flights and 42 Singapore flights, and the freighter - with a wide main deck door - will increase our ability to carry oversized shipments," added Perera. "This takes our import capacity to Australia to 1370 tonnes per week and, in these uncertain economic conditions, is further testament of our commitment to facilitating international trade for businesses in the region."

The inaugural fligh - which carried 100 tonnes of cargo, including medical equipment, diagnostics, spare parts, textiles and clothing - was met by Greg Johnson, Emirates' Cargo Manager Australia, and Alex Barkway, Emirates' Cargo Manager New South Wales. "The addition of a dedicated freighter service is a major milestone in Emirates SkyCargo's growth in Australia, and offers new possibilities for expansion into other areas of air cargo transport," said Johnson. "With the high Australian dollar driving up imports, this new flight will also provide us with much needed additional capacity into the market."

EK9920 will depart Dubai every Sunday at 20:35 and touch down in Singapore at 07:55 the following day. The B777F will then depart at 09:00 and complete its outbound journey at 18:30 when it touches down at Sydney International Airport. The return service, EK 9921, will depart Sydney every Monday at 21:30 and land in Hong Kong at 04:35 on Tuesday. Departing Hong Kong at 07:35 as EK 9865, the service will then terminate in Dubai at 10:35. With a long-range flying capacity and technologically advanced General Electric (GE) engines, the Boeing 777F provides greater flexibility than any other freighter aircraft currently in operation. It maintains the lowest fuel burn of any comparable sized aircraft, consuming nearly 18 per cent less fuel than today's freighters.

Emirates SkyCargo introduced its first Boeing 777F in March 2009. In December 2010, it operated its longest ever non-stop flight on the Boeing 777F; 17.5 hours from Sydney to New York. Emirates is the largest operator of Boeing 777 aircraft in the world, with 91 in its fleet currently.