Asian Aviation Weekly No. 6

November 21st, 2008

GENERAL NEWS

ATR, Lion Air sign turboprop order

ATR, Lion Air sign turboprop order

» EUROPEAN REGIONAL turboprop manufacturer ATR and Indonesian domestic airline Lion Air signed a Memorandum of Understanding (MoU) on 19 November, covering 10 firm orders for ATR 72-500 aircraft with options for 10 more. The deal, announced on the occasion of the Indodefence Air show in Jakarta, is valued at more than US$380 million, including the options, and was inked in the presence of Indonesian Vice-President Bapak Yusuf Kalla and defence minister Juwono Sudarsono. The 72-seat aircraft will be the first new ATR 72-500s to fly in Indonesia and will be operated by Lion’s Wings Air subsidiary. The turboprops will be powered by Pratt & Whitney Canada PW 127M engines. Deliveries of the aircraft will begin in 2009.

» BOEING IS changing the name of its Integrated Defense Systems (IDS) business in Australia to Boeing Defence Australia. John Duddy has been appointed vice-president and managing director of the renamed entity, effective from 8 December. The manufacturer says the new name and leadership appointment build on the unit’s recent reorganization, aimed at strengthening relationships with Australia’s military and positioning for future growth in the country. “Australia is an important customer to Boeing,” says Jim Albaugh, President and Chief Executive of Boeing IDS. “These changes bring our Australia operations and Boeing’s global IDS businesses into closer alignment, allowing us to more effectively provide support and solutions to our customers.” Duddy’s has been with Boeing for 26 years and prior to this appointment he was the director of Global Positioning Systems Programmes for IDS Space and Intelligence Systems in Seal Beach, California.

Al Jaber is the biggest Middle Eastern ACJ customer

Al Jaber is the biggest Middle Eastern ACJ customer

» AIRBUS HAS announced two new aircraft orders from customers in the Middle East. On 12 November, the France-based manufacturer announced that low-cost carrier Air Arabia - based in Sharjah, United Arab Emirates - had signed a firm order for 10 additional A320 single-aisle twinjets. This follows an earlier contract for 34 aircraft signed at the end of 2007. The airline says it needs the additional aircraft to meet its expansion needs and its plans for a new hub in Morocco. The airline now operates 16 A320s to more than 44 destinations across the Middle East, Central Asia, North Africa and the Indian Subcontinent. Separately, Airbus has received an order from Abu Dhabi-based Al Jaber Aviation (AJA) for two Airbus Corporate Jetliners (ACJs). At the same time, Al Jaber was revealed as the customer for two previously-undisclosed orders for A318 Elite corporate aircraft. This makes AJA the largest Middle Eastern customer for the Airbus ACJ family.

» JAPAN AIRLINES (JAL) says it will start operating flights between Osaka’s Kansai International Airport in central Japan and Gimpo International Airport, serving the South Korean capital Seoul, from 10 January 2009. The service will operate daily, using a Boeing 767 widebody twinjet. JAL, Asia’s largest airline, also says it will begin code-sharing with Korean Air (KAL) on flights between the two airports from 1 December 2008. At the same time, JAL will cut back the number of weekly services it operates between Kansai and Seoul’s newer Incheon Airport from 21 to 14. Incheon is 52km from Seoul’s city centre, while Gimpo is closer, at just 17km distance. Including code-share flights with KAL, JAL operates 14 routes into South Korea for a total of 241 weekly round-trip flights. By 10 February, these figures will increase to 15 routes with 248 weekly round trips.

» CESSNA AIRCRAFT, the business and light aircraft unit of Textron, announced on 18 November that it has gained type certification for  its Citation Mustang jet from Transport Canada and the Japanese Civil Aviation Bureau (JCAB), clearing the way for deliveries to begin to customers in both countries. The current global fleet of Citation Mustangs totals 130 aircraft, which have accumulated more than 19,000 flight hours, with the highest-time aircraft logging more than 500 hours. The Mustang is now certificated in 51 countries. The six-seat jet has a top speed of 340 knots (630kmh), a range of 1,150 nautical miles (2,130km) and a service ceiling of 41,000ft, enabling operations above most adverse weather and commercial traffic. The aircraft features a Garmin G1000 avionics suite that includes two 10-inch primary flight displays, one 15-inch multifunction display and the integrated GFC700 dual-channel, digital autopilot.

» EMIRATES-CAE Flight Training (ECFT) has signed contracts with Falcon Aviation Services (FAS) and Elite Jets for customized pilot training at its Dubai centre. The training programs will include simulator training, enhanced classroom-based training and crew resource management (CRM). Middle Eastern private charter service provider Elite Jets signed a three-year agreement with ECFT for Gulfstream G450 and Hawker 850XP training. FAS signed a three-year contract with ECFT for its growing fleet of Bell 412 helicopters. Pilots will receive customized training which will include various search and rescue scenarios for the Bell 412. “ECFT will afford us greater flexibility in our training schedules and provide a cost-effective alternative to existing training programs which require extensive travel and downtime for our aircraft. Moreover, we will be able to maintain our on-going training to the highest international standards for our crews right on our doorstep,” says Captain Salem Al Kayoumi, Chairman of FAS.

The manufacturer has sold more than 430 AW139s

The manufacturer has sold more than 430 AW139s

» AGUSTAWESTLAND announced on 19 November that its AW139 medium twin helicopter has now entered service with Saudi Aramco. The oil and gas company’s fleet of AW139s is being used to support operations in Saudi Arabia, alongside a fleet of seven AW109 Power helicopters that were delivered in 2006.  AgustaWestland says the AW139 is “the market leader in its weight class” with over 430 aircraft sold and almost 200 delivered since 2004.

 

FUEL PRICE UPDATE

» THE PRICE of jet fuel resumed its downward trend in November, falling 7.2 percent in the second week of the month. As of 14 November, the price stood at US$78.6 per barrel, or 187.2 US cents per gallon, down 17.7 percent from a month earlier and 30.1 percent lower than it was a year ago. The current price is still 2.15 times the level in 2000, when jet fuel sold for 87 US cents per gallon. According to IATA, the figure brings the average fuel price for 2008 to US$133.5 per barrel, causing an estimated year-on-year increase in the global airline industry’s 2008 fuel bill of some US$77 billion.

 

Asian Aviation Weekly No. 5

November 12th, 2008

GENERAL NEWS

» BOEING PREDICTS that the global air cargo market will expand at 5.8 percent per year over the next two decades, with worldwide freight traffic tripling through to 2027. According to Boeing’s World Air Cargo Forecast 2008/2009, air cargo traffic will grow in the long term, despite short-term market weakness and worldwide economic uncertainty. The manufacturer released the biennial forecast at the International Air Cargo Forum and Exhibition 2008, in Kuala Lumpur. “Our research tells us that long-term economic growth, freighter fleet renewal and moderating jet fuel prices will stimulate air cargo traffic growth,” says Randy Tinseth, Boeing Commercial Airplanes’ vice-president of marketing. “These positive prospects will prevail despite the industry’s concerns about our current economic challenges.” Worldwide GDP expected to average just over 3 percent over the next 20 years, with China remaining a source of strong economic growth and solid production fundamentals anticipated in Asia. Asian air cargo market growth will continue to lead all global traffic routes, Boeing says. Domestic Chinese and intra-Asian markets will grow 9.9 percent and 8.1 percent per year, respectively, and Asia-related markets will experience growth in excess of the global average.

Singapore's first F-15SG

              Singapore’s first F-15SG

» BOEING ROLLED out the first F-15SG fighter for the Republic of Singapore Air Force (RSAF) on 3 November. The derivative of the F-15E Eagle is the first of 24 ordered by Singapore. “The F-15SG has significant capabilities that will allow the RSAF to expand into new missions with new capabilities and to operate in the sophisticated Singapore defence environment for decades to come,” says Mark Bass, Boeing’s F-15 programme vice-president.  The aircraft’s integrated sensor suite, which includes an Active Electronically Scanned Array (AESA) radar and a third-generation SNIPER targeting pod, will provide the RSAF with long-range air-to-air and air-to-ground capabilities. F-15SG1 completed its first flight from Lambert International Airport in St. Louis on 16 September. It will now undergo a one-year flight test programme at Boeing facilities in St. Louis and Palmdale, California, and production deliveries will begin in the second quarter of 2009. The final aircraft in this procurement will be delivered to the RSAF in 2012.

» BOC AVIATION, the Singapore-based aircraft leasing unit of Bank of China, announced additional firm orders for 20, single-aisle Airbus A320-family aircraft on 4 November at the Zhuhai Air Show in China. “Our latest orders reflect ongoing demand for leased aircraft from the A320 family at both full-service and low-cost airlines around the world,” says Robert Martin, BOC Aviation’s managing director and CEO. BOC, formerly known as Singapore Aircraft Leasing Enterprise, is the largest Asia-based aircraft leasing company. In all, the company has now ordered 98 single-aisle aircraft directly from Airbus, of which 58 have already been delivered. The lessor also has five A330-200F freighters on firm order for future delivery. Airbus has sold more than 6,300 A320-family aircraft and delivered more than 3,600, to some 280 customers and operators worldwide.

» CHINA AND Taiwan have signed an agreement substantially boosting the number of passenger flights between the territories and permitting regular cargo services. The deal was struck on 4 November, during Beijing’s highest-level visit to Taiwan - which China considers to be a rogue province - in 60 years. The new agreement triples the number of weekly, direct China-Taiwan charter flights to 108, and allows them to operate daily instead of four days a week. It also increases the number of available non-stop destinations in China to 21 from the current five. On the freight side, 60 direct cargo flights per month are now to be permitted - this will be the first time dedicated cargo flights are to be allowed between the two sides. Six Chinese airlines and five Taiwanese carriers now operate a total 36 weekly round-trip flights between the territories, after regular non-stop services were permitted in July.

» KINGFISHER AIRLINES has reportedly defaulted on lease payments on four Airbus A320 aircraft supplied by GE Commercial Aviation Services (GECAS). India’s Economic Times says that the US lessor has filed a complaint with India’s Directorate General for Civil Aviation (DGCA), seeking permission to repossess the jetliners, which it wants de-registered from the carrier. Kingfisher has denied any default, and obtained a court order to prevent the repossession. The report cites an unidentified Kingfisher official admitting there is a dispute going on with GECAS over the conditions of return of the aircraft.

Air China Cargo has ordered three BCF aircraft

Air China Cargo has ordered three BCF aircraft

» BOEING AND Air China Cargo announced on 4 November that the carrier will add three 747-400 Boeing Converted Freighters (BCF) to its fleet. Modification work on the three Combi aircraft, previously operated by Air China, will take place at Taikoo Aircraft Engineering (TAECO) in Xiamen, China. Air China Cargo now operates eight freighters, including three 747-400Fs delivered new in 2005, 2006 and 2008, two other leased 747-400Fs and three 747-200Fs. The carrier provides cargo services to 36 cities in 27 countries around the world. Modification work to the aircraft includes the addition of a side cargo door, a strengthened main-deck floor, full main-deck lining installation, provisions for a new cargo handling system and complete revisions to the airplane systems. The 747-400BCF has positions for 30 pallets on the main deck, which is comparable to the 747-400 production freighter.

» CHINA SOUTHERN Airlines’ parent company has said it plans to invest more than 10 billion yuan (US$1.46 billion) in Liaoning Airport Management Group, which owns Shenyang airport in north-east China. The transaction will see the owner of China’s largest airline by fleet size acquiring a 40 percent stake in the state-owned airport operator. China Southern already has substantial operations at Shenyang airport. China Southern Air Holding says it is investing in the airport owner to fund the facility’s expansion plans, which include the construction of a new terminal building.

FUEL PRICE UPDATE

» THE PRICE of jet fuel rose slightly at the end of October, slowing an overall downward trend from recent record levels. As of 31 October, the price stood at US$86 per barrel, or 204.8 US cents per gallon, down 28.8 percent from a month earlier and 22.6 percent lower than it was a year ago. The current price is still 2.35 times the level in 2000, when jet fuel sold for 87 US cents per gallon. According to IATA, the figure brings the average fuel price for 2008 to US$135.8 per barrel, causing an estimated year-on-year increase in the global airline industry’s 2008 fuel bill of some US$81 billion.

 

Asian Aviation Weekly No. 4

November 4th, 2008

GENERAL NEWS

» THE INTERNATIONAL Air Transport Association (IATA) says international traffic results for September show an “alarming” decline in both passenger and cargo demand compared with the same month last year. Passenger traffic fell 2.9 percent, while cargo dropped 7.7 percent, with a 4.4 percentage-point reduction in international load factors from August as demand fell faster than capacity. “The deterioration in traffic is alarmingly fast-paced and widespread,” says IATA chief Giovanni Bisignani. “Even the good news that the oil price has fallen to half its July peak is not enough to offset the impact of the drop in demand.” At this rate, Bisignani adds, the global airline industry may lose even more this year than the current forecast of a US$5.2 billion deficit. Up to August, the drop in international passenger traffic was isolated to Asia-Pacific carriers, as the the region’s two major growth markets, China and India, suffered slowing economic growth and Japan saw industrial production drop 5 percent in August. The sharp downturn in world trade disproportionately impacted Asia-Pacific carriers, which posted a 6.8 percent drop in traffic in September, IATA says.

» BOEING ANNOUNCED at the beginning of November that striking machinists in Washington, Oregon and Kansas had voted to ratify a new four-year contract “that includes excellent wages and an industry-leading pension”. About 27,000 employees represented by the International Association of Machinists and Aerospace Workers (IAM) were set to begin returning to work with the third shift on 2 November, ending a 58-day walkout that analysts say may have cost the company as much as US$2 billion in lost profits. “This new contract addresses the union’s job security issues while enabling Boeing to retain the flexibility needed to run the business,” says Scott Carson, Boeing Commercial Airplanes president and CEO. “It rewards employees for their contribution to our success with industry-leading pay and benefits and allows us to remain competitive.” The contract promises general wage increases of 15 percent over four years, an immediate 16 percent pension increase and lump-sum payments of at least US$8,000 over the life of the agreement. The new contract covers a longer period than Boeing has typically negotiated with the IAM, adding to long-term stability, the manufacturer says.

AirAsia X's first Airbus A330

AirAsia X's first Airbus A330

» AIRASIA X - the long-haul, low-cost unit of Malaysia’s AirAsia Group - has taken delivery of its first new Airbus A330-300 widebody twinjets, out of a total 25 aircraft on order. The aircraft will operate on routes linking Kuala Lumpur with destinations in Australia, North Asia, the Middile East and Europe, complementing the existing network of low-cost carrier AisAsia. The Rolls-Royce Trent 700-powered aircraft is configured to carry 383 passengers in a two-class layout, with 355 economy seats and 28 in the airline’s XL premium class. According to AirAsia X CEO Azran Osman Rani, fuel economy and environmental friendliness were both factors in the choice of the aircraft to extend AirAsia’s low-cost model to the long haul market. In total, the AirAsia Group has placed firm orders with Airbus for 200 aircraft, comprising 25 A330s for AirAsia X and 175 single aisle A320s for the short haul operation.

» BOEING HAS predicted that China will require 3,710 new commercial aircraft over the next 20 years, valued at about US$390 billion. “China will continue to be the fastest-growing aviation center in the world, requiring 41 percent of the entire Asia-Pacific region airplane demand,” says Randy Tinseth, Boeing Commercial Airplanes vice-president of marketing. “This makes China the largest market outside of the U.S. for new commercial airplanes.” Growing passenger and cargo demand in the Asian country will cause China’s fleet to more than triple to 4,560 airplanes by 2027 - about the same number of aircraft as are in Europe today, Boeing says. Single-aisle jetliners will account for 70 percent of the new purchases, driven by the world’s fast-growing domestic market, with about 2,600 new aircraft deliveries. Demand for intermediate twin-aisle jets, such as the Boeing 787, 777 and Airbus A330 and A350, will result in approximately 780 airplane deliveries. When combined, the single-aisle and intermediate twin-aisle market will make up 91 percent of China’s total delivery dollars. Demand will include about 100 large jetliners in the class of the Boeing 747 and Airbus A380. Chinese carriers will add about 370 freighter airplanes by 2027, quadrupling its total freighter fleet size, the manufacturer says.

 

» THE AUSTRALIAN Competition and Consumer Commission (ACCC) says it has reached settlements with British Airways and Qantas on financial penalties amounting to millions of dollars in fines for price-fixing in the carriers’ international cargo operations between 2002 and 2006. While no information has been relased on BA’s fine, Qantas says in a statement that it has agreed to pay A$20 million (US$12 million). Both carriers were among a group of airlines found guilty by US authorities of participating in an international price-fixing scam. “The airlines are the first to be proceeded against because both came forward and voluntarily made admissions under the ACCC’s co-operation policy,” the Commission says.

» ROLLS-ROYCE is now carrying out final tests on jatropha-based biofuel, which it hopes to use in demonstration flights in partnership with Air New Zealand in December. The jatropha oil was produced from seeds grown on environmentally sustainable farms in Malazi, Mozambique, Tanzania and India. The plant is about three metres high and produces about 30 to 40 percent of its weight in lipid oil. According to Rolls-Royce, the oil meets all social, technical and environmental criteria for use in biofuel production: it does not compete with existing food resources, it acts as a drop-in replacement for jet fuel, is competitive with regular fuel and at least as effective. The fuel, refined by Honeywell’s UOP subsidiary, will be demonstrated aboard an Air New Zealand Boeing 747-400.

» BOMBARDIER AEROSPACE says it will display its business and regional jet aircraft including the Challenger 605, Global Express XRS and CRJ900 at Airshow China 2008, which is being held in Zhuhai from 4-9 November. According to Bombardier’s market forecasts, China represents 15 percent of the 20- to 149-seat aircraft market over the next 20 years, or approximately 2,000 aircraft.  Currently, five commercial airlines in China operate a total of 25 CRJ-family regional jets. These operators include China Eastern Yunnan Airlines, China Express Airlines, Kunpeng Airlines, Shandong Airlines and Shanghai Airlines. Additionally, government agencies operate 12 corporate variants of the CRJ200 and CRJ700 aircraft as personnel shuttles. Bombardier says its aerospace activities in China have grown substantially in recent years as the Chinese marketplace shows increasing demand in both the regional and business aviation sectors. Bombardier has sales offices in Beijing and Hong Kong for both business and commercial aircraft. Airshow China will this year feature 60 exhibitors from 35 countries and expects over a quarter million people to visit the show. The Bombardier exhibit is located in Hall 1, B2-3 at the China International Aviaiton & Aerospace Centre.

FUEL PRICE UPDATE

» THE PRICE of jet fuel continues to fall from its recent record levels. As of 24 October, the price stood at US$85.1 per barrel, or 202.5 US cents per gallon, down 35.5 percent from a month earlier and 18.4 percent from a year ago. However, the price is still almost two and a half times the level in 2000, when jet fuel sold for 87 US cents per gallon. According to IATA, the figure brings the average fuel price for 2008 to US$137 per barrel, causing an estimated year-on-year increase in the global airline industry’s 2008 fuel bill of some US$83 billion.

Asian Aviation Weekly No. 3

October 28th, 2008

» BOEING SUFFERED a 38 percent drop in its third-quarter net income as the company felt the impact of the machinists’ strike and supplier problems on customer-furnished galleys for some widebody aircraft. The profit fell to US$695 million from US$1.11 billion in the same period a year earlier, while sales declined 7 percent from US$16.5 billion to US$15.3 billion. The manufacturer’s backlog grew to a record US$349 billion, reflecting strong near-term demand. “While the suspension of commercial airplane deliveries had a major impact on the quarter, we effectively executed the remainder of our business and kept our focus on the strong balance sheet we have built over the past few years,” says Boeing Chairman, President and CEO Jim McNerney. He adds that the record backlog gives the company “exceptional flexibility for weathering an extended work stoppage and for adapting to circumstances that may arise from the global financial crisis and softening global economy”.

Qantas is the third A380 operator after Singapore Airlines and Emirates

Qantas is the third A380 operator after Singapore Airlines and Emirates

» QANTAS has introduced its first Airbus A380 into service, becoming the third commercial operator of the superjumbo after Singapore Airlines and Emirates. The first flight departed Melbourne en route for Los Angeles at 11:15 am local time on 20 October. The airline took delivery of the aircraft in September and initially used it for training. The A380 is now also being used on some Sydney-Los Angeles services and will commence operations to London via Singapore in January. Qantas has another 19 A380s on order up to the end of 2013 and expects to take delivery of two of those aircraft this year, with another five arriving in 2009.

» BOEING SHANGHAI Aviation Services, an affiliate of the US aircraft maker, received US Federal Aviation Administration (FAA) repair station certification in mid-October, allowing operations under Part 145 Federal regulations. The China-based venture will initially carry out heavy maintenance on Boeing 737 Next-Generation family aircraft, of which Boeing says there are more than 235 operating in East Asia, with more than 260 still on order. The company also carries out non-destructive testing and other maintenance services and plans to service twin-aisle jets in future, starting with the 767-300. Eventually, Boeing Shanghai will also offer passenger-to-freighter conversions. The company is a joint venture of Boeing, Shanghai Airlines and the Shanghai Airport Authorities.

The Airbus GTF trials use an A340-600 testbed

The Airbus GTF trials use an A340-600 testbed

» AIRBUS AND Pratt & Whitney (P&W) have started a series of flight tests to evaluate the engine maker’s ‘PurePower’ PW1000G Geared Turbofan (GTF) demonstrator engine. The tests are being performed at Airbus’ flight test facility using an A340 flight test aircraft and will run until the end of the year. Airbus says it is working with all major engine manufacturers and will conduct similar tests with them in the coming years. The aircraft manufacturer hopes the tests will yield data to confirm the benefits in fuel burn and CO2 emissions that could be achieved with each new engine technology. The company-owned A340-600 testbed is based in Toulouse and equipped with a full set of flight test instrumentation. The trials will focus on the engine’s unique design elements such the fan-drive gear system that incorporates a gearbox capable of absorbing greater power levels than previously achieved in other engine designs. The Airbus trials follow P&W’s own flight test campaign using a Boeing 747 aircraft.

» MALAYSIA AIRLINES has shelved plans to expand its fleet a batch of new aircraft in the 150- to 200-seat category because of concerns about the global economy. The Kuala Lumpur-based carrier had been expected to make a decision to order the additional aircraft by the middle of this year, though that was initially delayed to the end of the year, and has now been put on hold. The carrier has an existing order for 35 Next-Generation Boeing 737-800s, scheduled for delivery starting in September 2010 as replacements for ageing 737-400s. That order includes 20 options, which could be used for capacity growth. MAS now says that a decision on converting those options will depend on the state of the air transport market over the next few years.

» RIVAL INDIAN carriers Jet Airways and Kingfisher Airlines have announced a partnership they hope will help cut costs and boost sales. Kingfisher Chief Executive Vijay Mallya says the alliance between two of India’s largest airlines will bring “innumerable benefits in terms of cost savings, revenue improvement and an unprecedented network”. The carriers say they will rationalize their operations under the partnership, but will not exchange any shares. The alliance will include code-sharing on domestic flights, interline agreements, joint fuel management, common ground handling and cross-selling of flight inventories. Some observers see the alliance as an indication of how tough the Indian market has become, after several years of extraordinary growth. Jet and Kingfisher account for around a combined 60 percent of the Indian domestic air travel market. The carriers have suffered widening losses recently as costs soar and demand shrinks. India’s airline industry is expected to lose a total of as much as US$2 billion this year.

» AIR NEW Zealand has started up a stand-alone company with 50 staff to pursue global business opportunities in aircraft interior design. Altitude Aerospace Interiors will be staffed by employees with expertise in the design and installation of interiors for commercial aircraft and Boeing business jets, and will use the latest computer-aided design technology. The Auckland- and Christchurch-based engineering consulting business began operations on 25 August as an Air NZ subsidiary and is now working with some of the biggest airlines and aircraft manufacturers in the world. Altitude’s main product lines include reconfiguring and integrating interiors, and designing customized interior products for airliners and private jets. Air NZ says Altitude is “the only significant player in Asia-Pacific, one of the fastest-growing aviation regions in the world.

Asian Aviation Weekly No. 2

October 22nd, 2008

THIS WEEK, Asian Aviation Weekly reports from the National Business Aviation Association’s 61st annual meeting and convention in Orlando, Florida. The event was held on 6-8 October, attracting more than 30,811 visitors - a “solid turnout”, according to NBAA President and CEO Ed Bolen, albeit slightly lower than the 32,000 reported at the 2007 event. The reduced turnout may have had more than a little to do with the turmoil affecting the US stock markets that same week.

NBAA NEWS

» THE TOPIC on everyone’s lips at the convention was the effect the US financial crisis could have on the global business aviation market. The last six months has shown a reduction of 10 percent in the number of flying hours logged by business aircraft operators, with a 15-20 percent drop in fuel demand. The inflated price tag for jet fuel impacts business jet operators more than airlines, which pay as little as half the going rate for bulk purchases. However, manufacturers remained optimistic that the sector would be cushioned by a substantial backlog of orders and the fact that many companies now include business aviation as part of their business model, while cost-cutting at airlines has slashed or eliminated services to many communities that businessmen still need to visit. JP Morgan analysts now predict a 15 percent dip in the business jet market after the anticipated 2010 delivery peak. However, the existing backlog means the industry is entering the current downturn in a far stronger position than in the last dip early this decade, which saw a 31 percent decline in 2001 and 2002.

» TATA LTD, the UK arm of India’s Tata Group, has agreed to buy about one third of Piaggio Aero, the Italian aircraft maker announced at the NBAA convention. The deal makes Tata one of the company’s primary shareholders, alongside the Ferrari and Di Mase families, and Abu Dhabi-based Mubadala Development. The value of the deal was not revealed. Tata will now have three of the nine seats on Piaggio Aero’s board and one of three on the executive management committee. However, the company declined to say what implications the deal might have for Piaggio’s long-awaited P.1XX jet project, adding only that work on the aircraft is “well-progressed” and further information would only be released “when the time is right”. Piaggio now makes the P.180 Avanti II business turboprop aircraft and the P.166 light utility.

» HAWKER BEECHCRAFT announced its own aircraft launch, alongside a clutch of new orders, during the convention. The company launched its newest light business jet, the Hawker 450XP on 5 October. The aircraft is a development of the Hawker 400XP - “the world’s most successful fractional aircraft”, according to the manufacturer - adding new engines with 10 percent better fuel economy, the Rockwell Collins Venue integrated cabin management system, improved cabin comfort and an all-new avionics suite, Rockwell Collins’ Pro Line 21. “We’ve taken what makes the Hawker 400XP a tremendous success and built upon it,” says Jim Schuster, Hawker Beechcraft’s chairman and chief executive. Over the following two days, the manufacturer announced orders worth a combined US$270 million, including a US$70 million deal with the Indian ISIS Group for 10 Hawker 400XPs. The aircraft are to be operated by the conglomerate’s Aviators India air charters subsidiary, based in Bangalore. A further US$200 million order came from Brazil-based Lider Signatures, which said it would purchase 23 aircraft from across the manufacturer’s product line, including three Hawker 4000s, two 900XPs, three 750s, five of the new 450XPs, two Beechcraft Baron G58s and three Beechcraft Bonanza G36s.

» GULFSTREAM AEROSPACE used the NBAA convention as a platform to announce the introduction of its newest super mid-size business jet, the G250. The US$24 million aircraft is developed from the G200, with a range of 3,400 nautical miles at Mach 0.8 and a maximum operating speed of Mach 0.85. The jet can cruise at 41,000ft and can climb to a ceiling of 45,000ft to avoid traffic and adverse weather. “The G250 offers the largest cabin and the longest range at the fastest speed in its class,” the manufacturer says. The cabin, offers 17-35 percent more floor space than existing super mid-size jets, Gulfstream adds. According to the manufacturer, the aircraft will be certificated in 2011, with customer deliveries beginning in the second half of that year. The first flight is scheduled for the second half of 2009. The G250 is to be powered by two Honeywell HTF7250G turbofans and will feature Rockwell Collins’ PlaneView 250 cockpit.

Bombardier showed off a new interior for the Learjet 85
Bombardier showed off a new interior for the Learjet 85

» BOMBARDIER AEROSPACE unveiled its new Learjet 85 aircraft interior at the Orlando convention, claiming the design offers “more volume and comfort than any existing mid-size offering”. At 665 cubic feet, the cabin is the largest ever in the Learjet range, offering a stand-up environment for eight passengers. Bombardier says the large, 12- by 16-inch windows are a key feature, maximising natural light and allowing passengers a better outside view. The manufacturer’s standard, double-club configuration offering a seat pitch of 30 inches, a full service galley, three large storage closets and a total of 30 cubic feet of storage space. Four berths can be deployed in the cabin. The Learjet 85 will be Bombardier’s first all-composite jet, and the first such business jet designed for certification under FAR Part 25 regulations.

GENERAL NEWS

» QANTAS, which has been under scrutiny for a series of safety incidents recently, suffered an in-flight upset on one of its Airbus A330-300 twinjets on 7 October that injured some 74 people and may have been caused by a flight-control malfunction. The Australian Air Transport Safety Bureau (ATSB) said after the incident that it was focusing its investigations on an “irregularity with the aircraft’s elevator control system”. The aircraft was en route from Singapore to Perth with 303 passengers and 10 crew on board when it departed its 37,000ft cruise altitude, initially climbing and descending 200ft, then pitching nose-down a minute later by more than 8 degrees and dropping some 650ft in about 20 seconds. About 70 seconds after that, the aircraft pitched down again by about 3.5 degrees and descended 400ft before returning to its cruising altitude. Fourteen people were seriously hurt and 60 more required first aid or medical treatment. The aircraft made an emergency landing at Learmonth in Western Australia.

» AMECO BEIJING, a Chinese maintenance, repair and overhaul venture, announced that it has signed a deal with German leisure airline Condor to attach blended winglets to nine of the carrier’s Boeing 767-300ER twinjets. The work, which also includes C-checks on the aircraft, is scheduled to begin next April.

» GALAXY AIRLINES, a Japanese express freight carrier, halted operations in early October as a result of growing losses. The carrier said earlier this month that it has notified the country’s Ministry of Land, Infrastructure, Transport and Tourism of the suspension of all operations, and now plans to sell its two Airbus A300-600 freighters. Galaxy, which operated its aircraft on four domestic routes since October 2006, will probably be liquidated by the end of March. The airline, which has never been profitable, collapsed after its majority owner, Sagawa Express, failed to win other shareholders’ support for a restructuring plan.

» YETI AIRLINES, based in Kathmandu, confirmed that 18 passengers and crew died in the crash of one of the carrier’s de Havilland Canada DHC-6 Twin Otters on 8 October. The aircraft’s captain was the sole survivor of the crash, which involved a flight en route from the Nepalese capital to Lukla airport in eastern Nepal. The aircraft involved was built in 1980 and had been in service with Yeti since 1998.

» JAPAN AIRLINES has taken delivery of its first Embraer 170 regional jet, which will enter commercial service in February after initially being used for crew training. Asia’s largest carrier has placed orders for 10 of the 76-seat jets, becoming the first Japanese customer for the type. The aircraft will be used on domestic services by JAL’s Nagoya-based J-Air unit, with services from Tokyo’s Haneda airport expected to begin in 2010 after the opening of the facility’s planned fourth runway. 

FUEL PRICE UPDATE

» STARTING THIS WEEK, Asian Aviation Weekly, will be giving regular updates on the price of jet fuel, using data from energy information provider Platt’s and the International Air Transport Association (IATA). As of 17 October, the price stood at US$91 per barrel, or 216.6 cents per gallon, down 28 percent from a month earlier and 11 percent from a year ago. However, the price is still almost two and a half times the level in 2000, when jet fuel sold for 87 cents per gallon. According to IATA, the figure brings the average fuel price for 2008 to US$138.2 per barrel, causing an estimated year-on-year increase in the global airline industry’s 2008 fuel bill of some US$85 billion.