» 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.

» 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.

» 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.

Reed Exhibitions is strategically committed to the future of commercial aviation in the dynamic Asia-Pacific region, with Asian Aerospace once again set to attract the world’s leading aerospace, aircraft interiors, air freight and training companies to Hong Kong on 7th-10th September 2009. With China at the heart of the world’s most dynamic and fastest growing region, Asian Aerospace represents a unique “one stop shop” opportunity to develop strategic relationships for commercial aviation companies with long-term vision.

Global aerospace leaders including Airbus, Boeing, Bombardier, CFM International, Goodrich, Lufthansa Technik and SR Technics are committed to large stands at the main exhibition hall, whilst space at Aircraft Interiors Asia, Air Freight Asia and the Asia Pacific Airline Training Symposium has been in strong demand, as at Asian Aerospace ‘07. The exhibition halls at AsiaWorld- Expo are not only easily accessible by direct MTR rail link from downtown Hong Kong, but also conveniently located very close to the new static display area.

“Visionary commercial aviation companies looking beyond the challenges of current economic downturn are positioning themselves for the long term, with the dynamic Asian markets including China, India, Japan, Korea, Singapore, Taiwan and Vietnam offering the most exciting opportunities, ” said Richard Thiele, Global Head of Sales for Reed Exhibitions’ Aerospace & Aviation Group. “Not only do these markets offer enormous sales potential compared to other global markets, but also the stated intention of Commercial Aircraft of China (COMAC) to design and produce new commercial airliners, helicopters, business jets and eventually engines potentially opens the door to a host of new international joint-venture and supplier relationships.”

Asian Aerospace ‘09 will also include a repeat of the successful Congress that attracted airline CEOs, heads of China’s key government departments, and policy makers in 2007 The master classes included free seminars on issues affecting civil aviation throughout the region. The Congress is once again being organised in co-operation with the Flight Group, which includes the weekly Flight International magazine, the monthly Airline Business magazine, the world’s number one aviation news website www.flightglobal.com and the specialist ATI (Air Transport Intelligence) online premium data and news service. The Flight Group is part of Reed Business Information Ltd, a sister company to Reed Exhibitions Ltd.

“The 2009 Asian Aerospace exhibition and Congress looks set to be one of the most important aviation events in the region. Cathay Pacific is delighted to support Asian Aerospace and welcome’s delegates to Asia’s business capital - one of the world’s leading aviation hubs - Hong Kong,” said Tony Tyler, Chief Executive, and Cathay Pacific Airways.

Asian Aerospace is the world’s largest single-focused exhibition and congress for the commercial aerospace and civil aviation market with particular emphasis on the Asia-Pacific region.

For more information, please contact:

Richard Thiele

Head of Global Sales

Aerospace & Aviation

International Sales Group

Reed Exhibitions

Tel: +44(0) 208 910 7821

E-mail: Richard.thiele@reedexpo.co.uk

Anthony Phillips
Euro Asia Communications

Singapore
Tel: +65 6235 3400
E-mail: aphillips@eacomms.com.sg

About the Organisers

Strongly supported by the world’s leading aerospace suppliers, Asian Aerospace has been Asia’s premier aerospace event for the past 25 years. With its renewed focus on commercial aerospace and bearing a new expanded name “Asian Aerospace International Expo and Congress”, the event has relocated to the most vibrant, exciting and geographically important city in the whole of Asia - Hong Kong, Asia’s World City the established gateway to China.

Organized by the world’s leading organiser of trade and consumer exhibitions, Reed Exhibitions, the 15th presentation of Asian Aerospace will be staged from 8-10 September 2009 at the brand new, ultra-modern AsiaWorld-Expo complex, adjacent to, and integrated with, the world-beating Hong Kong International Airport (HKIA).

Following its successful relocation in Hong Kong in 2007, overnight the show became the world’s premier commercial aerospace and civil aviation event. Held in-conjunction with Aircraft Interior Expo (AIX), Asia Pacific Aviation Training (APATS) and Air Freight Asia (AFA), Asian Aerospace is a must-attend event for generating new sales leads, creating new business contacts and establishing new partnerships from China and the rest of Asia.

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.

» 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.

» BOEING reported a fourth-quarter loss of US$56 million, reversing a profit of US$1.03 billion in the same period a year earlier, as the company suffered the impact of last year’s machinists’ strike and a charge related to the Boeing 747-8 programme. Sales in the three-month period fell 27 percent to US$12.7 billion, mainly as a result of the strike, which reduced commercial aircraft deliveries by about 70 units and had an impact of about US$4.3 billion on revenue. For the full year 2008, Boeing’s net income fell 34 percent to US$2.7 billion and revenue dropped 8 percent to US$60.9 billion. “Full-year results were impacted by the strike, the 747 charge, the litigation-related reserve and higher costs for [airborne early warning and control programmes] announced in the second quarter,” the manufacturer says.

» KUWAIT-BASED Wataniya Airways, founded in 2006, has become the newest Airbus operator after taking delivery of its first, leased A320 jetliner. The carrier, founded in 2006, plans to build up a fleet of seven of the single-aisle twinjets, configured with 122 seats. “We will have the lowest seating density on an A320 compared with all other scheduled airlines in the region,” says Wataniya Chairman and Managing Director Abdul Salam Al Bahar. The aircraft is capable of accommodating as many as 180 passengers. Starting early this year, Wataniya plans to offer scheduled services to destinations in the Gulf and Middle East regions from its base at Kuwait International Airport. Separately, Singapore Airlines has added a new Airbus type to its fleet with the delivery of the first of six A330-300s, acquired on lease from Dublin-based AWAS. The Rolls-Royce Trent 700-powered aircraft will be operated by the carrier on regional and medium-haul routes, initially to destinations in Australia and Japan.

The 415MP is a new version of Bombardier

» BOMBARDIER AEROSPACE announced on 23 January that it has delivered the first of two Bombardier 415MP amphibious aircraft to the Malaysian Maritime Enforcement Agency (MMEA), the country’s coast guard. The aircraft were ordered by the Malaysian Government in June 2008, making the country the launch customer for the type. The 415MP is a variant of the Bombardier 415 amphibian, modified for the maritime surveillance role. New equipment includes two side-looking airborne radars, a forward-looking infra-red (FLIR) sensor, an airborne maritime surveillance system and other avionics and communications equipment. The aircraft can be used for missions including search and rescue, environmental protection, coastal patrol and transportation, the manufacturer says.

» BRAZIL’S EMBRAER has named India’s Indamer, a wholly owned subsidiary of European Aviation Holding, as its first authorised executive jet service centre in the South Asian country, serving local Phenom and Legacy 600 jet customers. “The fast growth of the executive jet fleet in India led Embraer to choose Indamer to provide support in the region,” says Edson Mallaco, the Brazilian company’s vice-president for executive-jet customer support and services. Mumbai-based Indamer has a 1,200 square-metre hangar and will provide warranty support and heavy maintenance services. Operations are scheduled to begin in the first half of this year.

» AIRBUS has issued a warning to operators to protect aerodynamic sensors while maintaining and painting its aircraft, as the investigation continues into the crash on 27 November of an Air New Zealand A320, which had been repainted shortly days before the accident. The Airbus Accident Information Telex was a reminder to operators to comply with standard maintenance-manual procedures, taking particular care with aerodynamic data sensors. It also said care should be taken during check flights, especially when flying at low speeds. The crash, which killed all seven people on board, involved an aircraft on a test flight that was being operated by German carrier XL Airways. The accident occurred as the aircraft was coming in to land at Perpignan, France.

» KINGFISHER AIRLINES reportedly plans to start operating new international services to Asian and Middle East destinations within three months. The Indian carrier is believed to be examining services to Bangkok, Dhaka, Dubai, Hong Kong, Kuala Lumpur and Singapore, adding to its existing international serviced to London’s Heathrow airport and Colombo, Sri Lanka. The UK flights were launched in September, but the carrier said soon afterwards that it would hold off on expanding its international network because of concern about the global economy. The Indian Government has now awarded the carrier new international operating rights, which must be exercised within a certain time limit, otherwise they will be lost.

FUEL PRICE UPDATE

» THE PRICE of jet fuel dipped in the third week of 2009, according to IATA and energy information provider Platt’s. As of 16 January, the price stood at US$62 per barrel, or 147.6 US cents per gallon, down 3.2 percent compared with the previous week, while still 1.3 percent higher than a month earlier. The current price is 42.4 percent lower than the level a year ago, but 1.7 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$62.4 per barrel. If this average remained constant for the rest of 2009, it would lead to an overall reduction of US$43 billion in the airline industry’s fuel bill compared with last year.

» AIRBUS ANNOUNCED on 14 January that it has started construction of the final assembly line for its proposed A350 XWB tine-aisle twinjet, scheduled to enter service in 2013. The factory will cover an area of 74,000 square metres and house the first stages of final assembly for the aircraft: the joining of the fuselage and wings. Aircraft testing and cabin equipment installation will then be carried out at the nearby A330/A340 facility. Airbus says the new factory will cost 140 million euros (US$184 million), employing more than 1,000 people when fully operational. It will also be the manufacturer’s most eco-efficient final assembly hall. Airbus froze the detailed definition of the aircraft at the end of last year, having gathered 478 orders from 29 customers. The A350 XWB is to be powered by two, all-new Rolls-Royce Trent XWB turbofan engines.

» AIRBUS SAYS its aircraft deliveries in 2008 hit a new record of 483, 30 more than in 2007. The figure includes 386 A320-family single-aisle jets, 85 A330/340 widebodies and 12 A380 ‘Superjumbos’. “The order intake in a difficult year was remarkably strong,” the manufacturer says, with 777 net orders valued at some US$100 billion at catalogue prices. That represents 54 percent of the year’s global market for aircraft with 100 seats or more. As of the end of the year, Airbus’s backlog stood at a record 3,715 aircraft. The company adds that its Power 8 business restructuring programme beat its targets for a second year running, yielding cost savings of about 1.3 billion euros (US$1.7 billion).

» BOEING HAS carried out the first aerial refuelling of a 737-based aircraft, in trials conducted under Australia’s Project Wedgetail - the country’s airborne early warning and control (AEW&C) programme. The flight took place over Edwards Air Force Base, California, on 7 January, with 14,000lb of fuel successfully transferred from a US Air Force KC-10 tanker to one of the Australian 737-700 AEW&C aircraft via a refuelling boom. Another successful refuelling flight was completed on 10 January, this time using a KC-135 tanker. Boeing AEW&C programme Vice-President Maureen Dougherty says the Wedgetail’s refuelling system worked “flawlessly” on both occasions.

» INVESTIGATIONS INTO the November crash of an Air New Zealand A320 indicate that the aircraft experienced a sudden surge in engine power that caused the aircraft to pitch up and stall during its final approach to Perpignan, France, according to a report from broadcaster TV3. The aircraft was coming in to land at the end of a pre-delivery flight test and had seven people on board. All were killed as the aircraft crashed into the Mediterranean Sea. The French Bureau d’Enquetes at d’Analyses has been examining data retrieved from the aircraft’s flight-data and voice recorders. Prior to the crash, the aircraft had been leased for two years to Germany’s XL Airways.

» SINGAPORE AIRLINES (SIA) says it will begin to operate the Airbus A380 on services between Singapore and Paris from 1 June. The daily A380 flights will replace the current, 10-times weekly service using 278-seat Boeing 777-300ER aircraft. The A380 is configured with 471 seats, and the carrier says the extra capacity will help it meet increasing demand from both corporate and leisure travellers. Paris will be the A380’s fourth destination in SIA service, and its second in Europe after London.

» CATHAY PACIFIC Airways subsidiary Cathay Pacific Services (CPSL), has agreed with the Hong Kong Airport Authority (HKAA) to defer the completion of its third cargo terminal by as much as 24 months to mid-2013. According to Cathay, the agreement was signed on 15 January and comes in response to “market conditions brought about by the global economic downturn”. The delay is aimed at better matching cargo handling capacity to demand forecasts. Cathay says it “remains completely confident in the future of Hong Kong as an international air hub” and is still committed to completing the new terminal.

» SINGAPORE TECHNOLOGIES Aerospace (ST Aerospace) has signed a 20-year agreement with GE Aviation, allowing Singapore-based unit ST Aerospace Engines (STA Engines) to serve as an approved On-Wing Support provider for the GEnx-1B and -2B engines. Under the agreement, GE will provide its partner with technical support, including training, manuals and equipment. GEnx engines power Boeing’s new 787 and 747-8 aircraft.

FUEL PRICE UPDATE

» THE PRICE of jet fuel continued to rise in the second week of 2009, according to IATA and energy information provider Platt’s. As of 9 January, the price stood at US$64.1 per barrel, or 152.5 US cents per gallon, up 4.7 percent compared with the previous week, and 13.7 percent from a month earlier. The current price is still 41.5 percent lower than the level 12 months ago, but 1.75 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$62.6 per barrel. If this average remained unchanged, this would lead to an overall reduction of US$43 billion in the airline industry’s fuel bill compared with 2008.

» THE INTERNATIONAL Air Transport Association (IATA) says passenger and cargo volumes fell in November, with a 4.6 percent drop in international passenger traffic and a 13.5 percent decline in international cargo. International capacity shrank by 1 percent, as international passenger load factors shrank by about 3 percentage points from a year earlier, to 72.7 percent. “The 13.5 percent drop in international cargo is shocking,” says Giovanni Bisignani, IATA’s Director General and CEO. “As air cargo handles 35 percent of the value of goods traded internationally, it clearly shows the rapid fall in global trade and the broadening impact of the economic slowdown.” This is largest drop since the aftermath of the terrorist attacks of September 2001. “The industry is now shrinking by all measures,” Bisignani says. “We can expect deep losses in the fourth quarter.”

India is the first P-8 export customer

» INDIA HAS ordered eight Boeing P-8I long-range maritime reconnaissance and anti-submarine warfare aircraft for the country’s navy. The P-8I is a variant of the US Navy’s P-8A Poseidon that is now under development. India is the first international customer for the P-8. Boeing says it will deliver the first aircraft within 48 months of the contract signing, and the remaining seven by 2015. The manufacturer says the P-8I features greater flexibility and a broader range of capabilities than maritime patrol aircraft currently in service, operating effectively over land or water while performing missions such as: anti-submarine warfare; search and rescue; maritime interdiction; and long-range intelligence, surveillance, target acquisition and reconnaissance. The aircraft features an open-system architecture, advanced sensors and displays, and a global base of suppliers, parts and support equipment.

» BOEING’S NET commercial aircraft orders in 2008 totalled 662, expanding its backlog to more than 3,700 aeroplanes. The order total was Boeing’s eighth-highest on record. The Next-Generation 737 remained the company’s best seller, with 484 sold to global customers last year. Demand for the new 787 also remained strong, with 93 orders booked, mainly from the Middle East. The twin-aisle 777 captured 54 orders from customers in Europe, the Middle East, North America and Asia. The 767-300ER logged 28 orders, while the 747-8 Intercontinental added three. Boeing delivered 375 aircraft to customers last year: 290 737s (including six Boeing Business Jets), 14 747s, 10 767s and 61 777s. Deliveries were hurt by a strike that halted commercial production for several weeks.

» GKN AEROSPACE’S recent acquisition of the Airbus wing component and assemblies manufacturing unit at Filton, UK, marks the completion of EADS and Airbus’s reorganisation strategy for its aerostructures capability. The strategy involved the divestment of non-core activities and sites to establish a network of strong suppliers, allowing Airbus to concentrate on its core business as an aircraft architect and integrator. Filton’s partial sell-off to GKN follows the transfer of Airbus’s former Laupheim site in Germany to Diehl/Thales in October 2008, and the spin-off of Airbus’s Nordenham and Varel sites together with EADS’s Augsburg facility under a new EADS subsidiary, Premium AEROTEC. A similar process took place in France, where Meaulte and St. Nazaire Ville are now the foundation of a new EADS unit, Aerolia. Both Premium AEROTEC and Aerolia began full operations on 1 January, and Airbus says they are positioned to become major players on the global market, specialising in Carbon Fibre Reinforced Plastics (CFRP) aerostructures.

» SINGAPORE AIRLINES (SIA) says it will introduce its new Airbus A330-300 regional aircraft on routes to Australian and Japanese cities starting from the end of March 2009. The first of 19 new A330-300s will be delivered to SIA by Airbus in mid-January. Initially, the aircraft will be used for pilot conversion training, before its entry into operational service on some short sectors to Kuala Lumpur and Jakarta during late February and March. The aircraft’s full entry into commercial service will occur on 30 March 2009, operating between Singapore and Brisbance to mark the 25th anniversary of the start of SIA flights between the two cities.

» JAPAN AIRLINES (JAL) says it will start offering passengers a voluntary carbon-offset programme via its web site from 3 February. The programme will allow JAL passengers to compensate for the CO2 gases generated by their trips by purchasing “credits” from a variety of emission-reduction projects that will decrease an equivalent amount of CO2 elsewhere in the world. JAL has teamed up with Recycle One, the Japanese agency of the CarbonNeutral Company to give passengers this option. CarbonNeutral is the world’s leading carbon-consulting and -offsetting company and was one of the first to start offering a carbon-offset scheme to individuals. JAL’s web site will now feature a link to a micro-site provided by Recycle One, where passengers can calculate the CO2 emissions generated by their whole journey. They can then choose a sustainable-development project they would like to support, purchasing ‘credits’ to offset all or part of the CO2 emissions generated by their planned journey.

» AIR NEW ZEALAND, the launch customer for Boeing’s stretched 787-9, now faces a further 12-month delay to the delivery of the first aircraft, as the manufacturer feels the effect of last year’s machinists’ strike and continuing production problems. The first delivery is now expected to take-place in early 2013, more than two years behind the original schedule. Air NZ has ordered eight of the aircraft, which seat 250-290 passengers in a three-class layout, and was told last April that the delivery date would be pushed back from late 2010 to early 2012. The airline is in continuing talks with the manufacturer regarding compensation for the delays.

Thai Airways has eight A330s on order

» THAI AIRWAYS International said in early January that it will ask Airbus to delay the delivery of six A330 widebody twinjets scheduled for this year, because of the current slump in the airline industry. With global economic woes stifling travel demand and the consequences of the closure of major Thai airports late last year by political protests, the airline says it has no urgent need for the capacity, and a later delivery schedule would relieve some financial pressure on the company. The A330s are intended as replacements for older jetliners such as the A300-600, two of which are to be retired this year. The announcement came shortly after the airline had agreed with the European manufacturer to postpone payments on the aircraft by three months, with the first instalment shifted back to April. The carrier’s total A330 order is for eight aircraft, with the first due to arrive in April.

» GARUDA INDONESIA President and Chief Executive Officer Emirsyah Satar says that by 2013 the airline will more than double the size of its fleet to a total of 128 aircraft, from 54 now. The company plans to add 50 new Boeing 737NGs and 10 777-300ERs, in addition to ongoing revitalization plans to gradually replace old aircraft with more modern and efficient equipment. At present, Garuda operates three widebody Boeing 747-400s, six Airbus A330s, and six 737 NGs, as well as 39 Classic 737-family narrowbody twinjets. “Backed by 128 aircraft, in 2013 Garuda Indonesia will make a ‘quantum leap’ into the future,” Emirsyah says. The airline already has outstanding orders for 10 777-300ERs and 35 Next-Generation 737-800s, suggesting that it plans to either place an additional 737 order or seek aircraft on lease. The carrier also says it plans to operate at least 18 new domestic and regional routes in 2009.

» THE CHINESE Government has more than doubled the size of a planned financial aid package to loss-making China Eastern Airlines, the nation’s third-largest carrier. In a statement to the Hong Kong stock exchange, the Shanghai-based airline confirmed that a previously announced 3 billion yuan (US$437 million) aid package has been expanded to 7 billion yuan. The cash injection will come via a share issue to the airline’s parent, China Eastern Air Holding and to that company’s overseas unit, CES Global. The carrier has been struggling in the face of soaring costs and falling passenger and cargo demand. The government has also promised a 3 billion yuan aid package to Guangzhou-based China Southern Airlines. China Eastern is believed to be preparing for a merger with Shanghai Airlines, with an agreement expected soon.

FUEL PRICE UPDATE

» THE PRICE of jet fuel spiked at the turn of the New Year, jumping 13 percent in the week ended 2 January. As of that date, the price stood at US$61.2 per barrel, or 145.7 US cents per gallon. The overall downward trend continues, however, with the price 5.2 percent lower than a month earlier and 47.2 percent down from a year ago. The current price is 1.67 times the level in the year 2000, when jet fuel sold for 87 US cents per gallon. If fuel remained at this average price for the full year, then this would cause an overall reduction of US$45 billion in the airline industry’s fuel bill, compared with 2008.

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

» 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

» 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.

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