GENERAL NEWS

» QANTAS AIRWAYS has announced drastic cutbacks in response to plunging demand triggered by the global economic meltdown. “Market conditions have deteriorated, especially in our international business. We are experiencing significantly lower demand, particularly in premium classes, and considerable price pressures with extensive sales and discounting by all carriers - in some cases leading to fare reductions of up to 50 percent,” says Chief Executive Officer Alan Joyce. In response, the airline says it will: impose a further 5 percent reduction in flying capacity on international and domestic routes; cut both domestic and international freight capacity; ground the equivalent of 10 aircraft and offer them for sale; defer aircraft orders, including four Airbus A380s and twelve 737-800s; explore “a number of options with Boeing” regarding 787-800 orders, including near-term reductions in the number of aircraft to be delivered; cut capital expenditure by at least A$800 million (US$567 million) in 2009-2010; and remove an additional 500 management positions on top of the 90 already announced. Qantas is also considering job cuts affecting about 4 percent of its workforce, or about 1,250 full-time employees. The announcement came as Qantas slashed its pre-tax profit forecast for the 2008-2009 business year from A$500 million to between A$100 million and A$200 million.

Boeing

» BOEING ANNOUNCED in late April that it has completed 25 percent of the design releases for the 747-8 Intercontinental jetliner, marking a major programme milestone. This means a quarter of the information needed to build parts and tools for assembly has been completed and released for fabrication or procurement. “The engineering is proceeding as planned and we are a step closer to bringing the 747-8 Intercontinental to market,” says Mo Yahyavi, vice-president and general manager for the 747 programme. Since much of the design is the same as the 747-8 Freighter, which Boeing is building first, the engineering focus is on work that is unique to the Intercontinental, comprising mostly fuselage and interior design. The most obvious difference is that the 747-8 Intercontinental fuselage will have an extended upper deck, while the interior will incorporate features from the 787 widebody twinjet, such as new architecture and lighting. The 747-8 will be 18.3ft (5.6 meters) longer than the 747-400, offering 467 seats in a three-class configuration and a range of approximately 8,000 nautical miles (14,815 kilometres).

» HONG KONG’S Airport Authority (AA) announced on 27 April that it is offering a HK$450 million (US$ 58 million) relief package to assist airlines and other operators whose business at Hong Kong International Airport (HKIA) has been hurt by the global economic downturn. The relief package comprises HK$200 million worth of reductions in charges and HK$250 million interest-free, deferred payments, starting April 2009. Airlines operating at HKIA are being offered a 10 percent reduction in both landing and parking charges until the end of 2009, amounting to savings of about HK$200 million. Furthermore, to alleviate cash flow issues during the recession, 50 percent of rental payments for airline lounges, office premises, counters and storage can be deferred for up to one year and repaid by interest-free instalments from April 2010 onward. If all business partners applied to defer 50 percent of their rental payments, the total amount would reach approximately HK$250 million. Traffic volumes at HKIA started declining in August 2008, with the first quarter of 2009 showing year-on-year decreases in passenger throughput, cargo volume and aircraft movements of 7.1 percent, 22.8 percent and 6.6 percent, respectively.

» DRAGONAIR has announced a series of austerity measures in response to the economic crisis. In an effort to contain costs and preserve cash, the Hong Kong-based airline said in mid-April that it will reduce its passenger capacity by 13 percent from May. At the same time the airline will introduce a Special Leave Scheme under which staff will be asked to take unpaid leave varying from one to four weeks according to their seniority and rank. Starting from June 1, services to Bengaluru, Busan, Sanya and Shanghai will be reduced, while all flights to Fukuoka, Dalian, Shenyang, Guilin and Xian will be suspended. The airline will also park its last operating freighter - a Boeing 747-400BCF. It will, however, continue to provide cargo services using the belly space in its passenger aircraft. In a later statement released on 27 April, the airline said it welcomes the relief package being offered by its home airport, HKIA (see previous news item).

» THE GLOBAL airline industry, already suffering the effects of the economic slowdown, may be further hurt by the outbreak of swine flu in Mexico and North America, analysts say. “For the airline sector this comes at the worst possible time,” says Diogenis Papiomytis, Commercial Aviation Consultant with Frost & Sullivan’s Aerospace and Defence Group. “Globally, airlines are struggling to cope with falling demand, following substantial losses due to jet fuel price fluctuations in 2008 and the impact of the economic recession. For 2009 IATA expects global losses of more than $4.5 Billion for the airline sector, a figure that may well seem optimistic a month or two from now if the swine flu expands geographically or we see a rapid increase in affected cases.” Likening the disease to the SARS virus, which severely impacted airlines in 2003, Papiomytis says a swine flu pandemic “would have dire consequences on airlines globally, and not only those based or with substantial operations to/from Mexico”. Passengers are already cancelling travel plans to the affected regions.

» STARTING FROM 1 June, SilkAir, the regional wing of Singapore Airlines (SIA), will begin twice-daily services to Penang. Together with SIA’s daily service to the Malaysian state, both airlines will operate a total of 21 weekly services. The parent carrier will operate the daily morning service, while SilkAir will operate the afternoon and evening services. “The liberalisation of the markets between Singapore and Malaysia has enabled our sister airline, SilkAir, to join us in offering a total of three flights a day to Penang,” says Huang Cheng Eng, SIA’s executive vice-president marketing and the regions. “With these flights, customers who prefer the comfort, service reliability and connectivity offered by a full-service airline will continue to have a choice of convenient flight timings at competitive fares.”

The new Phenom 100 has won European certification

» EMBRAER’S PHENOM 100 entry level executive jet was certificated on 24 April by the European Aviation Safety Agency (EASA), for day and night operations under visual and instrument flight rules (VFR/IFR), reduced vertical separation minima and flight into known icing conditions. The aircraft was already certificated by the Brazilian National Civil Aviation Agency and by the US Federal Aviation Administration (FAA) last December. “We are honoured to receive EASA certification for the Phenom 100 on schedule, confirming the aircraft has met or surpassed all original specification targets, and opening the way for the first deliveries in the European Union,” says Maurício Almeida Filho, Embraer’s vice-president of executive jet programmes. According to EASA’s Certification Director Dr Norbert Lohl: “The Phenom 100 is the first executive jet in its category where the full certification process fell under the responsibility of EASA. Aviation is an international business and this project has once more proven that our common goal is to increase safety.”

FUEL PRICE UPDATE

» THE PRICE of jet fuel steadied in mid-April, rising overall from a month earlier in a reversal of its downward trend since the second half of 2008, according to IATA and energy information provider Platt’s. As of 17 April, the price stood at US$61.2 per barrel, or 145.8 US cents per gallon, unchanged from the previous week. The price was 14.4 percent higher than a month earlier, but still down 58.1 percent compared with the level a year ago. The current price is still 1.67 times the level in the year 2000, when jet fuel sold for 87 US cents per gallon. The average price for the year to date now stands at US$57.9 per barrel. If this average remained constant for the rest of 2009, it would lead to an overall reduction of US$50 billion in the airline industry’s fuel bill, compared with last year.

GENERAL NEWS

» QANTAS AND Singaporean investor Dennis Choo will take over 100 percent ownership of Singapore-based low-cost carriers Jetstar Asia and Valuair, after buying out other investors including Temasek Holdings. Choo will own 51 percent of the carriers, with the rest held by Qantas, the Australian carrier said in a statement to the stock exchange. The new ownership structure will help Qantas trim costs by better coordinating Jetstar Asia with the group’s Australian operations.

» SINGAPORE AIRLINES (SIA) has told news agency AFP that it cannot rule out the possibility of deferring future deliveries of Airbus A380s, although it plans to take on four more of the Superjumbos this year as scheduled. The carrier said that its load factors on the 550-seat aircraft remain encouraging. SIA has 19 A380s on order, including six options. Six have been delivered to date.

» COMMERCIAL AIRCRAFT Corporation of China (Comac) in February issued a request for information to engine makers related to its plans to develop a 150-seat jetliner, to be called the Comac 919. Companies that have been approached include General Electric, Pratt & Whitney and Shanghai-based AVIC Commercial Aircraft Engine (ACAE). The first aircraft is expected to have its roll-out and first flight in 2014, with entry-into-service targeted for about 2016 - four years ahead of the manufacturer’s original plans. The formation of ACAE was announced by AVIC in November, with the company specifically focused on developing a powerplant for the new jetliner.

» SEPARATELY, COMAC has now completed the second test flight of its ARJ21 regional jet, about four months after its maiden flight. The second flight took place of 14 March, lasting about 90 minutes, while the first flight took place on 28 November 2008. A third flight was planned for late March. The manufacturer says the four-month interval between flights came about because of a need to finalise unspecified approvals from the Civil Aviation Administration of China (CAAC). The ARJ21, which was rolled out in December 2007, is scheduled to enter service in late 2010.

» BOEING ANNOUNCED at the end of March that it has opened its Boeing Research and Technology-India centre in Bangalore. The new facility “will help sustain the company’s competitive technological edge while enhancing India’s aerospace capabilities”, the US aircraft manufacturer says. The centre will collaborate with Indian research and development organizations, in both the government and private sectors, as well as universities and other companies. “Boeing is partnering with the best researchers around the world to find the best technology solutions for our customers, and we look forward to working with our partners here in India on some promising new technologies,” says John Tracy, Boeing’s chief technology officer and senior vice-president for Engineering, Operations and Technology.

» AIRBUS AMERICAS and Airbus China Beijing Campus have achieved certification according to ISO 14001 standards for Environmental Management Systems. This international standard requires organizations to develop an integrated, structured approach in setting and achieving environmental policies and objectives with the goal of supporting protection of the environment, prevention of pollution and compliance with regulatory requirements.

» THE INTERNATIONAL Air Transport Association (IATA) says there was a continuing deterioration in international passenger and cargo demand during February. Passenger volumes fell 10.1 percent below 2008 levels, after a 5.6 percent drop in January. A 5.9 percent reduction in capacity - the most aggressive adjustment by airlines since the crisis began - failed to keep pace with falling demand. As a result, February’s average load factor fell 3.2 percentage points compared with the year-earlier figure, to 69.9 percent. International freight volumes were 22.1 percent below 2008 levels, marking a third consecutive month where the decline has exceeded 20 percent.

FUEL PRICE UPDATE

» THE PRICE of jet fuel rose during March, reversing its downward trend over recent months, according to IATA and energy information provider Platt’s. As of 27 March, the price stood at US$62.2 per barrel, or 169.9 US cents per gallon, up 6.3 percent from the previous week. The price was 19.3 percent higher than a month earlier, but still down 53.8 percent from a year ago. The current price is still 1.70 times the level in the year 2000, when jet fuel sold for 87 US cents per gallon. The average price for the year to date now stands at US$57.1 per barrel. If this average remained constant for the rest of 2009, it would lead to an overall reduction of US$51 billion in the airline industry’s fuel bill, compared with last year.

GENERAL NEWS

» THE INTERNATIONAL Air Transport Association (IATA) has announced a revised earnings outlook for the global air transport industry in 2009, predicting a loss of US$4.7 billion. The latest forecast is considerable worse that IATA’s December prediction of a US$2.5 billion loss, and reflects “the rapid deterioration of global economic conditions”, the industry group says. Revenue is expected to drop 12 percent, or US$62 billion, to US$467 billion, compared with a 7 percent decline, or US$23 billion, in the year following the 11 September 2001 terrorist attacks. “The pressure on the industry balance sheet is extreme,” says IATA Director General and CEO Giovanni Bisignani.

The A320 simulator was supplied by Thales

» THE CIVIL Aviation Administration of China has put into service an Airbus A320 full-flight simulator (FFS), supplied by Thales, at the new extension of the Hua-Ou Aviation Training Centre, a joint venture between Airbus and the China Aviation Supplies Holding Company (CAS) in Beijing. The opening ceremony of the new extension was held on 24 March, when the training centre’s General Manager Raymond Lim and Jiang Huaiyu, director general of flight standards at the Civil Aviation Administration of China (CAAC), signed a co-operation agreement on the operation of the new simulator and an A320-configured Thales Formation System Trainer (TFST). Both training devices are owned by the CAAC and will be operated by Hua-Ou, becoming a reference standard for the training of CAAC inspectors.

» CHONGQING AIRLINES has taken delivery of the first of three Airbus A319s leased from International Lease Finance (ILFC) at a delivery ceremony in Hamburg, Germany in March. The aircraft are being configured for 122 passengers in two classes, with eight first-class seats. The carrier, based in Chongqing, southwest China, plans to operate the aircraft to some of the region’s most popular tourist destinations. Chongqing Airlines, founded jointly by China Southern Airlines and Chongqing International Invest, now operates four A320s and will receive its third A319 by May.

The sixth 787 will have GEnx engines

» BOEING HAS begun final assembly of the sixth and last 787 ‘Dreamliner’ flight-test aircraft at its plant in Everett, Washington. The aircraft, designated ZA006, will be the second to be powered by General Electric GEnx-1B engines. The remaining four prototypes have Rolls-Royce Trent 1000 powerplants. The first test vehicle, ZA001, was having its paintwork touched up in mid-March before finishing factory testing ahead of its first flight, scheduled to take place in the second quarter. ZA002 had its power switched on in late February and is now undergoing build-verification tests, while production work on the other three prototypes is still underway. Boeing has 878 orders for the jetliner from 57 customers around the world.

» AIR INDIA and SR Technics are extending their co-operation, expanding the existing engine services contract for the maintenance of Air India Express’ CFM International CFM56-7B engines. The contract will now also include the CFM56-5B engines of Air India’s Airbus A320-family fleet. The fleet now includes 27 of the single-aisle jetliners and will grow to 43 aircraft by 2010. The engines in the original contract, signed in May 2007, power Air India Express’ Boeing 737-800 fleet. The contract has been extended to May 2010 and contains an extension clause for another two years. SR Technics carries out the maintenance work at its Engine Service Centre in Zurich, Switzerland.

» THE SCHEDULED Airlines Association of Japan has submitted a proposal to the Ministry of Land, Infrastructure and Transport, requesting a package of reforms to help the country’s beleaguered airline industry. The government, which has already offered help to large corporations as the country’s economy shrinks, says the reforms could be drawn up by the end of March. Japan’s airlines have been pressuring the government for years to lower airport charges, cut taxes and free up more slots at Japan’s busiest hubs, such as Tokyo’s mainly domestic Haneda airport. Both the country’s largest airlines, Japan Airlines (JAL) and All Nippon Airways (ANA), now expect to post losses for the current financial year, reversing earlier profit forecasts. The government has said it is willing to offer the carriers low-interest loans if needed through the Development Bank of Japan.

» EAST STAR Airlines has been grounded by the Civil Aviation Administration of China (CAAC) after failing to pay money it owes to aircraft lessor GE Commercial Aviation Services. The carrier was grounded on 14 March at the request of the government of Wuhan, where East Star is based. The government says in a statement that the move came because the carrier is unable make the payment and because of its poor management. The CAAC says arrangements have been made for other carriers to take over East Star’s 20 routes. The grounded airline has a fleet of nine Airbus A320-family aircraft, all leased from GECAS.

FUEL PRICE UPDATE

» THE DECLINING price of jet fuel stabilised mid-March, according to IATA and energy information provider Platt’s. As of 13 March, the price stood at US$50.4 per barrel, or 119.9 US cents per gallon, up 0.4 percent from the previous week. The overall downward trend continues, however, as the price was 8.6 percent lower than a month earlier and down 63.2 percent from a year ago. The current price is still 1.38 times the price in the year 2000, when jet fuel sold for 87 US cents per gallon. The average price for the year to date now stands at US$56.5 per barrel. If this average remained constant for the rest of 2009, it would lead to an overall reduction of US$52 billion in the airline industry’s fuel bill, compared with last year.

GENERAL NEWS

Singapore Air is cutting capacity as demand falls

» SINGAPORE AIRLINES has announced plans to cut capacity by 11 percent in the financial year starting in April, in response to the global economic downturn. During the year, 17 aircraft will be decommissioned from the fleet, compared with the airline’s previous plan to withdraw four aircraft in the period, with one being converted into a freighter and three returned to lessors as lease contracts expire. “The drop in air transportation has been sharp and swift,” says the airline’s Chief Executive Chew Choon Seng. “Given the falls of over 20 percent that we have seen recently in air cargo shipments and the tradition of demand for air travel following closely behind trends on the cargo side of the business, we have to face the reality that 2009 is going to be a very difficult year.” The cuts will include the withdrawal of services to Amritsar and Vancouver, the reduction of frequencies to India and a cutback on direct flights between Singapore and the USA. The carrier also says it will: trim flights to Sydney; operate services to London, UK, with a Boeing 777-300ER instead of the current, larger 747-400; and reduce Manchester services to three a week from five. Flights to Seoul, Tokyo and China will also be affected.

» VIRGIN BLUE is to ground about 8 percent of its domestic fleet in the business year starting in July, as a response to the current slump in air travel demand. As many as five aircraft will be grounded, affecting the jobs of about 400 full-time employees. However, the company says it is exploring options to minimize any reduction in staff. Some jobs could be transferred to new long-haul carrier V Australia, while unpaid leave, part-time work and job-sharing schemes are also under consideration. The carrier now operates a fleet of about 50 Boeing 737-700/-800 twinjets and 18 Embraer E-Jets. Virgin Blue announced last July that it had reached an agreement with Brazilian aircraft manufacturer Embraer to delay the delivery of five jets that were to have been handed over this year. The company still has outstanding orders for six E-Jets and 19 737s.

» WHILE SOME Asian carriers examine capacity cutbacks in the face of falling demand, Dubai-based Emirates has unveiled a plan to expand services across its network by 14 percent this year. This year, the airline says it will add 18 new passenger aircraft to its fleet, bolstering seating capacity by 14 percent and increasing frequencies on many existing routes. Emirates will also add 17 percent to its cargo capacity. By the end of March 2009, Emirates says its fleet will comprise 132 wide-bodied aircraft, including four Airbus A380s. In the fiscal year starting April, the airline plans to add seven more A380s, as well as 10 Boeing 777-300ERs, one 777-200LR and one 777 Freighter. The carrier’s Chairman and Chief Executive Sheikh Ahmed bin Saeed Al-Maktoum says that, while the carrier knows the next year “is not going to be an easy ride” for the industry, Emirates also sees it “as a time of opportunity”. Even with the capacity increase, the airline says the coming year will be one of “consolidation” with fewer new routes added than in previous years.

» AIRBUS SAYS it will cut A320 production rates from 36 aircraft a month to 34 starting in October, while twin-aisle A330/340 output will be “paused at the current level” of 8.5 aircraft a month, shelving earlier plans to increase production. The manufacturer says the move reflects its “current view on market demand” as airlines cut capacity and face continued economic uncertainty. “We see a drop of air traffic in most regions,” says Airbus Chief Executive Tom Enders. “I do not exclude further production cuts if the need arises.” The company says it still hopes this year to match its 2008 delivery record of 483 aircraft.

» THE INTERNATIONAL Air Transport Association (IATA) says the number of aviation accidents that resulted in hull-losses rose in 2008, while the total number of fatalities fell. The global accident rate for Western-built aircraft rose to 0.81 hull losses per million flights, compared with 0.75 in 2007. However, the total number of fatalities last year fell to 502 from the previous year’s 692. This means the fatality rate fell 56 percent, from 0.23 fatalities per million passengers in 2007 to 0.13 per million in 2008. There were 109 accidents last year, of which 23 were fatal, compared with 100 accidents, with 20 fatal, in 2007.

» A NORTHWEST Airlines flight from Manila to Tokyo encountered severe turbulence on 20 February, leaving two passengers seriously injured and 30 others hurt. The Boeing 747-400 was carrying 408 passengers and 14 crew when the incident occurred as the aircraft was in a holding pattern before landing at Tokyo’s Narita Airport.

FUEL PRICE UPDATE

» THE PRICE of jet fuel extended its decline into mid-February, according to IATA and energy information provider Platt’s. As of 13 February, the price stood at US$54.9 per barrel, or 130.8 US cents per gallon, down 3 percent compared with the previous week, and 11.4 percent lower than a month earlier. The current price is 52.5 percent lower than the level a year ago, but 1.5 times the price in the year 2000, when jet fuel sold for 87 US cents per gallon. The average price for the year to date now stands at US$59.6 per barrel. If this average remained constant for the rest of 2009, it would lead to an overall reduction of US$47 billion in the airline industry’s fuel bill compared with last year.

GENERAL NEWS

» JAPAN AIRLINES (JAL) and All Nippon Airways (ANA), Asia’s two largest airlines, are both feeling the impact of the recent drop-off in passenger and cargo demand, with JAL slashing its earnings forecast and ANA imposing wage cuts. JAL now says it will probably post a loss of JPY34 billion (US$373 million) for the financial year ending 31 March after reporting a third-quarter loss of JPY1.9 billion, compared with a JPY20.4 billion profit in the same period a year earlier. The carrier says it modified its forecast “as air transport demand is expected to continue its downward slide as a result of the global economic slowdown”. ANA, which reported its nine-month profit fell 92 percent to JPY9.4 billion, is now reported to be considering cutting managers’ salaries by 15-20 percent, with other staff facing a 3 percent cut.

V Australia is the country's first 777-300ER operator

» VIRGIN GROUP’S new long-haul airline V Australia took delivery of Australia’s first Boeing 777-300ER on 6 February. The aircraft, delivered by Boeing to International Lease Finance (ILFC) and leased to V Australia, is one of seven leased and purchased 777-300ERs V Australia will deploy on trans-Pacific and other routes. V Australia will launch a non-stop Sydney-Los Angeles service on 27 February, building up to daily flights by 20 March and adding Brisbane-Los Angeles services from 8 April. V Australia’s 777-300ER is configured for 361 passengers in three classes.

» BOEING HAS named Ian Thomas as president of Boeing Australia and South Pacific, appointing Dinesh Keskar as vice-president of Boeing International and president of Boeing India. The appointments are effective 1 March. Both executives will report to Boeing International President Shep Hill. Thomas, formerly president of Boeing India, succeeds Craig Saddler, who is moving to a new position with Boeing in the USA. Thomas will be responsible for government affairs in Australia and will coordinate all Boeing activities across the South Pacific region. Keskar will be responsible for leading efforts to expand the company’s local presence and pursue new growth and productivity initiatives. Keskar previously served as Boeing Commercial Airplanes vice-president of Sales for South and Southeast Asia and was responsible for overseeing all activities for that business within the region.

» CHINA EASTERN Airlines Chairman Liu Shaoyong says the carrier will take delivery of only 13 aircraft this year out of 29 originally planned, as the company faces up to a “rather difficult year”. The airline chief said the carrier faces a “significant” loss for 2008, after fuel-price hedges cost the company 6.2 billion yuan (US$906 million), and is unlikely to make a profit in 2009 because of continued weak market conditions. The carrier has already received a 7 billion yuan aid package from the Chinese Government. Liu also attempted to damp speculation of a merger with rival Shanghai Airlines. “We have not held any equity negotiations with Shanghai Airlines,” the executive said.

» AIRBUS HAS signed a co-operation agreement with Xian Aircraft (XAC), under which wings for A320 family aircraft being assembled at Airbus’s Final Assembly Line China (FALC) in Tianjin will now be fully completed and tested locally. The agreement was signed by Airbus and XAC officials in London, in the presence of Chinese Premier Wen Jiabao and British Prime Minister Gordon Brown. According to this fourth phase of co-operation between the companies, the wing work will be done in Tianjin in a new facility to be built near the FALC by XAC. Up to now, the wing-box structures assembled by XAC in China have been completed at Airbus’ site at Broughton, before being transported to final assembly. Wing-equipping operations are expected to start at the end of 2009, followed by the first delivery of a completed set of wings in the first quarter of 2010. The production rate will be ramped up to two units per month by the end of 2010 and four units per month by the end of 2011.

KAL now has 10 A380s on order

» KOREAN AIR (KAL) has placed firm orders for two more double-deck Airbus A380 aircraft, bringing the total number of A380s ordered by the Seoul-based carrier to ten. The carrier will operate the jetliners in a three-class layout on routes linking Seoul to North American and European destinations such as Los Angeles, New York and Paris. John Leahy, Airbus Chief Operating Officer, Customers said: “This order from Korean Air underscores the unique ability of the A380 to meet future growth requirements on the most heavily-travelled routes. By placing additional orders today, Korean Air will be even better placed to consolidate its position as a leading global carrier.”

FUEL PRICE UPDATE

» THE PRICE of jet fuel continued to fall in the first week of February, according to IATA and energy information provider Platt’s. As of 6 February, the price stood at US$56.6 per barrel, or 134.7 US cents per gallon, down 6.3 percent compared with the previous week, and 17.5 percent lower than a month earlier. The current price is 46.6 percent lower than the level a year ago, but 1.54 times the price in the year 2000, when jet fuel sold for 87 US cents per gallon. The average price for the year to date now stands at US$60.4 per barrel. If this average remained constant for the rest of 2009, it would lead to an overall reduction of US$46 billion in the airline industry’s fuel bill compared with last year.