May 2007 - Asian Aviation
Transcription
May 2007 - Asian Aviation
VOLUME 4. No. 3 MAY 2007 T H E R E G I O N ’ S O N LY C O M P R E H E N S I V E A E R O S PA C E I N D U S T RY P U B L I C AT I O N Government audit declares Indonesia’s airlines unsafe A safety and maintenance audit carried out on 48 Indonesian airlines by the Ministry of Transport (MOT) in Jakarta has revealed that none of them were complying fully with safety and maintenance requirements. Of the 48 carriers, 16 were scheduled international and domestic operators, four were domestic cargo airlines and 28 were commuter and charter airlines. The carriers were rated based on current safety and maintenance standards, and were classified in three categories: Category I for airlines that complied fully with the regulations, Category II for airlines that did not adhere completely to the requirements, while Category III was for more serious breaches of safety and maintenance regulations. None of the airlines qualified for Category I. State-owned Garuda, generally thought to be the safest local carrier, placed in Category II. The others in the same group were Lion Air, Sriwijaya Airlines, Wings Air, Indonesia AirAsia, Mandala Airlines, stateowned Merpati Nusantara Airlines, Pelita Air Service, Riau Airlines, Trigana Air Service, Travel Express Aviation Service and cargo carriers Republic Express Airlines, and Ekspres Transportasi Antarbenua. Category III included Batavia Air, Adam Air, Kartika Airlines, Transwisata, Jatayu Airlines, and cargo carriers Tri MG Intra Asia Adam Air has been under scrutiny since its aircraft were involved in one fatal crash and a non-fatal airframe write-off earlier this year. The audit was triggered by a series of accidents early this year, including the crash of an Adam Air Boeing 737 that killed 102 people. Airlines and Manggul Air Service. The transport ministry grounded charter operator Dirgantara Air Service’s three 737-200s due to poor maintenance. Out of 28 commuter and charter airlines, 20 ranked in Category II while eight fell in Category III. According to Indonesia’s newly appointed director general for air transport Budhi Mulyawan Suyitno, all the airlines have been given three months from 11 April to improve the maintenance of their aircraft and enhance safety procedures. The carriers were also warned to step up training for engineers and pilots. “We will carry out another audit at the end of the three months. Airlines that fail the test risk losing their air operating certificate,” Budhi says. According to the air transport official, the audit team examined the airlines in 20 areas, including compliance with maintenance requirements, frequency of accidents, competence of staff in the relevant fields and effectiveness of the airline’s management team. The audit was carried out after Indonesia suffered two fatal air accidents within nine weeks – the crash of an Adam Air 737-400 on New Year’s Day near Makassar, Sulawesi, and the crash of another aircraft of the same type operated by Garuda on 7 March at Yogyakarta. The first accident killed 102 passengers and crew, while 21 passengers and a flight attendant died in the second. Budhi says that the authorities must take drastic measures, including revoking the AOCs of airlines that ignore safety and maintenance requirements, to save Indonesia’s battered aviation industry. (Continued on page 3) APA shelves Qantas takeover amid confusion Airline Partners Australia (APA) has shelved its A$11 billion (US$9 billion) takeover of Qantas, amid confusion over whether it had achieved the minimum necessary voting power it needed to pursue the bid further by the 4 May deadline. The consortium, which includes Macquarie Bank and Texas Pacific Group, a private equity firm, had needed a minimum 50 percent acceptance level from shareholders for its bid. That would have given the consortium the legal right to a twoweek extension period in which to attain its target acceptance level of 70 percent. The plan required that shareholders accept the bid for their entire stake in the airline, but some may have only accepted for part of their stake and could have been forced to give up the remainder of their shares. This could have pushed APA over the 50 percent threshold. APA had previously lowered its acceptance target to 70 percent from 90 percent after a major institutional shareholder rejected the consortium’s offer. APA says the legal situation remained unclear after the bidding, but adds that litigation would have been time-consuming and would have caused uncertainty for both the carrier and its shareholders. As a result, the consortium decided not to pursue legal action to argue that it crossed the required 50 percent level. The group said after announcing its decision that its own calculations suggest it may have gained more than 57 percent acceptance, and APA is considering making a new offer for the airline. The collapse of the takeover cause Qantas shares to drop more than 3 percent on the first morning of trading after the bid. The airline’s board, which had recommended that shareholders should accept the offer, came under intense criticism, including demands for the resignation of Chairman Margaret Jackson. The carrier has also said that it is reviewing its ownership status after the recent trading, amid concerns that non-Australian investors may now hold more than 50 percent of the airline. Australian law places a 49 percent foreign ownership limit on the Oneworld partner carrier. www.asianaviation.com General News 3 Airlines 5 Freight 7 Manufacturers 8 Defence 9 Technology 10 Training & Simulation 11 Airports & ATM 12 MRO 13 Business Aviation Directory 14 Industry Outlook 21 787 Update 22 Airline IT 24 General Aviation 25 Business News 26 Airline solutions It will be obvious which airlines did & which didn’t evolve. For evolving airlines, one thing remains the same: the need to do things differently; for us, for you and your customers’ experience. Amadeus supports hundreds of unique business models, thousands of flights and millions of processes – all designed to meet the specific business needs of each airline. From distribution to departure control, from e-commerce to customer management, our next generation technology is integrated, open and flexible, giving you the power to do things differently today, and every day. Do something different today. Email Amadeus on: airline.marketing@amadeus.com or visit: www.amadeus.com/airlines Distribution & Content Sales & e-Commerce Business Management Services & Consulting GENERAL NEWS A MICA (P) 198/02/2007 Publisher Ross Butler Editor Andrzej Jeziorski Phone: + 1 604 408 5980 Mobile: + 1 778 227 8265 Email: andrzej.jeziorski@asianaviation.com Associate Editor Emma Kelly Contributors Kuala Lumpur: Dennis William Europe: Ian Goold Melbourne: Nigel Pittaway New Delhi: Veena Singh Hong Kong: Kenne Chan Chief Photographer Sam Chui Photographer Weimeng Graphic Design Craig O’Neill, Anne Robinson Singapore Raymond Boey Regional Manager Block 729 #04-4280 Ang Mo Kio Avenue 6, Singapore 560729 Phone: +65 6457 2340 Fax: +65 6456 2700 Email: raymond.boey@asianpressgroup.com.sg Australia Ventura Media Asia-Pacific Pty Ltd PO Box 88, Miranda NSW 1490 Australia Phone: + 61 2 9526 7188 Fax: + 61 2 9526 1779 Web: www.asianaviation.com Subscriptions Rose Jeffree Phone: + 61 2 9526 7188 Fax: + 61 2 9526 1779 Email: subscriptions@asianaviation.com Carriers criticise Indonesian air safety audit (Continued from page 1) Several airlines have questioned the transport ministry’s findings and criticised the way the airlines were rated. They claim that the criteria used were dubious, and inconsistent with maintenance audit requirements. Garuda spokesman Pudjo Broto says he is baffled by the way the audit was carried out. “We have no idea what criteria were used,” Pudjo says. “Garuda has always passed its maintenance audits carried out by international authorities at its international destinations.” Adam Air’s chief operating officer Yundi Suherman claims that the airline has not received any official notif ication from the transport ministry about the ratings. A Mandala Airlines official says the carrier objects to the audit’s findings. The ministry “had to show the international community that they had done a ‘good job’ by carrying out the audit and discrediting the Indonesian carriers,” the official says. “Had the ministry been monitoring the airlines effectively all these years, these accidents would not have occurred.” Responding to the airlines’ comments, Budhi says the transport ministry doesn’t expect the carriers to agree with the findings of the audit. “Our findings and ratings stand,” he adds. A survey carried out from January to March by the National Team for the Evaluation of Transportation Safety and Security (NTETSS) on the state of the country’s air transport industry revealed that aviation safety is at its lowest ebb. Chappy Hakim, the head of the team, says that safety was found to have been compromised in several areas, which have resulted in a series of accidents. “Breaches of regulations and oversights were evident in almost every quarter of the industry, The order will make Flyington the first operator of Airbus’s new A330-200F freighter. Advertising Offices Australia, New Zealand and Asia Alan Batt Mobile: + 61 (0)419 469 110 Email: alan.batt@asianpressgroup.com.sg Ross Butler Mobile: + 61 (0)410 529 325 Phone: + 61 2 9526 7188 Fax: + 61 2 9526 1779 Email: ross.butler@asianpressgroup.com.sg Europe (except Italy) Diana Scogna 31 ru de Tlemcen 75020 Paris France Phone: +33 1 4315 9829 Fax: +33 1 4033 9930 Mobile: +33 (0)6 6252 2547 Email: diana.scogna@asianpressgroup.com.sg Italy GAME Sri Ida de Mari Via Caffaro 13/10-16125 Genova, Italy Phone: +39 010 589 752 Fax: +39 010 562193 Email: gamesrl@gamesrl.com Russia & CIS Laguk Co. Yuri Laskin, Sergei Kirshin Phone: + 7 495 912 1346 Fax: + 7 495 912 1260 Email: ylarm-lml@mtu-net.ru USA and Canada Black Rock Media Inc Diane Obright 810 Val Sereno Drive Olivenhain CA 92024 USA Phone: +1 858 759 35 57 Fax: +1 858 759 35 52 Mobile: +1 858 717 1894 Email: blackrockmedia@cox.net Anna Edmonds 44338 Slikworth Terrace Ashburn, VA 22147 CA Phone: +1 703 463 9706 Email: anna.edmonds@asianpressgroup.com.sg Printer Sun Rise Printing & Supplies Pte Ltd ISSN 1449-3233 India’s Flyington Freighters abandons Boeing 777 deal, opts for Airbus A330 fleet Indian cargo start-up Flyington Freighters has backed away from its US$1 billion order for four Boeing 777F freighters, announced last July, opting instead for an all-Airbus fleet of A330-200F cargo aircraft. The company signed the Airbus order on 9 May in Mumbai, confirming a previously announced commitment for the aircraft and making it the first operator of the new aircraft, launched in January. The company was dismissive of its earlier commitment to the 777 aircraft, despite having previously said that it had placed firm orders for the Boeing model and had paid a deposit. The Boeing order had been valued at almost US$1 billion at list prices. “We were in preliminary talks with Boeing, but Airbus gave us a better deal,” says Flyington Chairman Venkattram Reddy. The airline plans to begin operations this year, using two, leased A300-600Fs. It will be India’s first international dedicated freight airline. www.asianaviation.com including maintenance and safety. Poorly trained staff were evident in every corner of the airlines, airport operators and the regulatory body,” the NTETSS head says. The team recommends that carriers that ignore safety and maintenance requirements should have their AOCs revoked without a second chance. On 12 March, Budhi’s first day in his current position, he said that airlines which fell into Category III would be suspended or have their AOCs revoked. The three month grace period now proposed appears to be something of a climbdown from his original position. “Grounding the five airlines in Category III would affect domestic air travel drastically,” Budhi explains. “This would only result in chaos at the airports across the country.” Dennis William / Jakarta Briefs THAI AIRWAYS reported a 32 percent drop in its second-quarter profit to 4.23 billion baht (US$130 million) as the company’s foreign exchange gains plunged 62 percent to 1.47 billion baht. The Bangkokbased carrier’s revenue for the three months ended 31 March increased 7.6 percent to 43.4 billion baht, while costs matched the gain with 7.1 percent increase to 43.4 billion baht. Pre-tax profit fell 31 percent to 6 billion baht. Costs rose in part because of increased personnel and other operating expenses at Bangkok’s new international airport, Suvarnabhumi. AIR INDIA and Singapore Airlines (SIA) have formally signed an expected joint venture agreement to operate a ground-handling company at the new Bangalore International Airport when it opens in April 2008. A consortium of the two companies was selected last year as one of two designated ground handlers at the airport, with a concession lasting seven years. The two companies also won one of two cargohandling concessions at the airport. Asian Aviation May 2007 3 GENERAL NEWS Indonesia’s Lorena Air prepares to start services in May Lorena Air, a new full-service Indonesian domestic airline will begin operations on 30 May from its base at Jakarta’s Soekarno-Hatta International Airport. Beginning with a fleet of three, leased Boeing 737-400 jetliners, the carrier will offer flights to Manado in north Sulawesi, Balikpapan in east Kalimantan, Padang in western Sumatra, Palembang in southern Sumatra, and Bali. According to the carrier’s President and Director Eka Sari Lorena Soerbakti, the carrier will lease another three 737400s in the fourth quarter of this year to expand its network. The carrier plans to start operating international flights in 2009. The carrier is owned by the Lorena Group, which operates a luxury bus service on the islands of Java, Madura, Bali and Sumatra. The airline says its entry into the market is timely, at a time when the country’s airline industry is reeling from a series of air disasters. “With air travellers having no confidence in the local aviation industry, we are confident that we will be able to establish a firm footing in the domestic market as a full-service carrier,” Eka says. “Our experience in the transport business has enhanced our confidence of doing well.” Lorena Group has been issued with an air operating certificate (AOC), even though it has no prior experience of the airline business. Early last year, four months after the fatal crash in September 2005 of a Mandala Airlines 737-200 in Medan, Indonesia’s transport minister Hatta Radjasa said the government would not issue any more AOCs. Transport ministry officials in Jakarta declined to comment when asked why Lorena was issued with the certificate when there the government had announced a freeze on such permits. Philippines CAB cuts back Tiger’s operating permit The Philippines’ Civil Aeronautics Board (CAB) has halved the duration of Singapore-based lowcost carrier Tiger Airways’ current, six-month operating permit to Diosdado Macapagal International Airport (DMIA) in the Clark Special Economic Zone, near Manila. The Foreign Air Carrier’s Permit (FACP) was initially supposed to expire in September, but will now run out in June. The CAB has given no reason for its decision. A CAB official says it is the agency’s prerogative to issue short-term FACPs, declining to elaborate on the matter. Tiger also declines to comment on the matter. The CAB’s move could seriously threaten the viability of operations at the airport, also called Clark International Airport, and the growth of low-fare airlines there. It could also thwart the Philippine government’s plan to develop the airport into a hub for budget carriers in South-East Asia. The airport was previously a US military base. The Philippines’ government invested US$20 million five years ago to upgrade the facility and convert it into a civilian airport. The airport is now used by Malaysia’s AirAsia, which operates daily non-stop flights from Kuala Lumpur and Kota Kinabalu. Asiana Airlines, Hong Kong Express Airlines and locally based carriers Cebu Pacific and Southeast Asian Airlines also operate there. Last year, DMIA handled 471,000 passengers and 128,747 tons cargo – increases of 110 percent and 15 percent, respectively, compared with the previous year. Departure tax revenue rose 126 percent to 35.9 million pesos (US$74,791). Clark International Airport’s executive vice-president and chief operating officer Alexander Cauguiran says DMIA is growing fast, with predictions that this year passenger numbers will double and cargo volume will increase by 20 percent. Chinese aircraft maker AVIC I sets up finance unit China Aviation Industry Corp I (AVIC I), the country’s biggest aircraft manufacturer, has set up a finance unit with registered capital of 1 billion yuan (US$129.8 million) to fund the company’s future development. “We have more or less finished building our financial platform,” says Zuo Ming, general manager of stateowned AVIC I. The company, which builds military as well as civil aircraft, is China’s first military industrial enterprise to have both an international leasing unit and a finance unit. 4 Asian Aviation May 2007 The newly funded finance company is a non-bank financial institution that combines the two existing financing units of AVIC I subsidiaries Xian Aircraft Industry and Guizhou Aviation Industry. The company will be funded by AVIC I and its 11 subsidiaries. AVIC I, the maker of China’s latestgeneration fighter aircraft, the Jian-10, set up its international leasing unit in January this year. The company’s close co-operation with China Development Bank, China Everbright Bank and China CITIC Bank has provided a To date, the Indonesian government has issued 69 AOCs, with 48 airlines now operating. Sixteen are scheduled passenger airlines, four are local cargo carriers and 28 are commuter and charter airlines. It is understood that at least five airlines in the country are applying for AOCs, most of which are reapplying following an earlier suspension Last year, Indonesian airlines carried a total of 39 million passengers on domestic flights, an increase of 23 percent from the previous year. Dennis William / Jakarta Xiamen now has 35 Next-Generation 737s on order. Xiamen in talks to expand Boeing 737-800 order Xiamen Airlines is in negotiations with Boeing to expand its existing order for 35 Next-Generation 737800 jetliners to 60 aircraft. The Xiamen-based carrier wants the additional 25 single-aisle jets to be delivered from 2011 through to 2013. Delivery of the existing order, placed two years ago, has already begun and is slated for completion in 2010. An official of the airline says the additional aircraft are needed because of the rapid growth in demand for domestic and international flights. “The economic growth of China has enabled more people to fly,” the official says. “Growth of the travel market has also surpassed the forecast.” China’s economy grew 9 percent last year and is projected to expand by an annual average of 8.5 percent over the next five years. The country’s travel industry grew 11.2 percent in 2006, surpassing the forecast of 10 percent growth. Xiamen currently operates 43 aircraft, including nine 737800s, serving a network covering 143 domestic and international destinations. solid foundation for development since AVIC I was founded in 1999. AVIC I is also now developing China’s first indigenous regional jet, the ARJ 21, which can carry 70 to 110 passengers. The first aircraft is now in final assembly. The company recently announced plans to develop China’s first large jetliner, with the aim of competing against Boeing and Airbus in the commercial aviation market within the next decade. The development of AVIC’s international leasing and finance unit will help promote the company’s products both domestically and overseas. AVIC I supplies China’s armed forces with 90 percent of their airborne weapon systems. It has already manufactured 1,500 aircraft, 50,000 aero-engines and over 10,000 missiles. Company achieved 80 billion yuan in sales in 2006 and has continuously grown over the past six years. www.asianaviation.com Dennis William / Jakarta Kenne Chan / Indianapolis AIRLINES AirAsia Long Haul orders 10 Airbus A330s with five options AirAsia Long Haul, the new Malaysian low-cost carrier planned by AirAsia chief executive Tony Fernandes, has signed an order for 10 Airbus A330300 widebody twinjets with options for another five. Deliveries of the aircraft will begin in September 2008, continuing until 2011. The jetliners will be configured to seat 389 passengers in two classes. The long-haul carrier will start operations in September with two leased A330-300s, initially flying to China. The new airline, until recently called AirAsia X, is owned by Fly Asian Xpress (FAX), founded by Fernandes in partnership with Kamarudin Meranun and Raja Mohd Asmi Mohd Razali. FAX was initially created last year to take over the rural air services of Malaysia Airlines (MAS), which was restructuring its network as part of its business turnaround plan. Fernandes says the AirAsia name has been kept for the new long-haul carrier, as it is already an established brand in the low-fare airline segment. The original AirAsia is based at Kuala Lumpur International Airport and operates a fleet of 33 aircraft – 19 Airbus A320s and 14 Boeing 737-300s – on a network covering more than 35 domestic and regional destinations. It started domestic operations in 2001 with two Boeing 737-300s. AirAsia also holds 49 percent stakes in its Indonesian and Thai affiliates Indonesia AirAsia and Thai AirAsia. According to Fernandes, AirAsia Long Haul will focus on markets in Australia, China, Europe, India, Japan, South Korea and Taiwan, covering routes with a flying time of more than four hours. For European destinations, a technical stop will be made in the Middle East. Fernandes says the new airline plans to exercise its five A330 options and expand the existing order to 20 aircraft within a year or two. AirAsia Long Haul aims to acquire a fleet of 25 A330-300s within five years, with the aim of becoming the biggest lowfare, long-haul carrier in the Asia- Boeing delivers first 737-900ER to Lion Air Briefs AIR NEW ZEALAND is planning to use its new fleet of Bombardier Q300 turboprops on regional services to five domestic cities. The services include weekday flights linking Christchurch with New Plymouth and Tauranga, as well as six flights a week between Invercargill and Wellington. The carrier will also boost frequencies between Christchurch and Hamilton to three in June, from two now. The aircraft is the first of 60 ordered by the Indonesian airline. Boeing delivered the first extended range 737-900ER twinjet to Indonesian launch customer Lion Air on 27 April, in the first step towards a massive fleet expansion by the Jakarta-based carrier. The airline plans to use the jet on services from the Indonesian capital to Manado and Makassar, starting in May. Lion Air has ordered 60 737-900ERs for its fleet, which now comprises nine Boeing 737-400s and two –300s, as well as six McDonnell Douglas MD-80s and four MD-90s. The aircraft carries as many as 220 passengers in a single-class layout, compared with 189 in a regular 737900. The fuselage incorporates a new pair of exit doors and a flat rearpressure bulkhead to make room for Pacific by 2012. AirAsia Long Haul had initially planned to lease two Boeing 777-200s or Airbus A340-300s, but was unable to secure any. No 777s are expected to be available for lease for the next four-to five years. Malaysian transport minister Chan Kong Choy says the new carrier will not compete on routes that are currently operated by flag-carrier MAS. Fernandes says the airline still hasn’t chosen an engine for the A330s, but will have made a decision by the time of this year’s Paris air show in June. The A330-300 is available with General Electric CF6, Pratt & Whitney 4000 or Rolls-Royce Trent 700 turbofans. the additional seats. Other design changes to the aircraft include strengthened wings, a twoposition tailskid, enhanced leadingand trailing-edge flap systems, optional blended winglets and auxiliary fuel tanks. The aircraft can fly 500 nautical miles further than the 737-900, offering a maximum range of up to 3,200 nautical miles. The 737-900ER is powered by the CFM International (CFMI) CFM567B engine, incorporating a package of engine upgrades designed to boost performance and trim operating costs. The engine features a new combustor design aimed at cutting nitrous oxide emissions by as much as a fifth, while a 5-degree Celsius increase in exhaust gas temperature margin is expected to reduce the engine’s fuel burn and boost time on-wing. Boeing claims the aircraft offers “9 percent lower operating costs per trip and 7 percent lower operating costs per seat” than Airbus’s rival A321 single-aisle twinjet. CFMI says it plans to offer the same engine upgrade for the CFM565B/P, which powers the A320 family, starting from the fourth quarter of this year. The package includes an improved high-pressure compressor, high-pressure turbine and lowpressure turbine nozzle, as well as the new combustor and will be available on new engines and as a retrofit. As of the end of March, Boeing had collected 104 orders for the 737900ER. www.asianaviation.com EMIRATES has added another four aircraft to its order for Airbus’s 550-seat A380 jetliner, bringing the total number for the Dubai-based airline to 47. Emirates Chairman Sheikh Ahmed Bin Saeed Al Maktoum says the new agreement “should leave no-one in any doubt about our faith in Airbus, the company and the quality of the aircraft”. He adds that all issues related to the programme’s production delays are “fully settled”. The first A380 is scheduled for delivery to launch customer Singapore Airlines in October, while Emirates will receive its first aircraft in the third quarter of 2008. By the original delivery schedule, Emirates was supposed to have 18 of the aircraft in service by that time. AIR CANADA says it will operate a second daily service between Vancouver and Beijing using Boeing 767-300ER twinjets between 2 July and 1 October. The airline will also increase its Shanghai-Toronto frequency by one flight a week, making it a thrice-weekly service from 13 April to 30 June. The flight will be operated daily starting from 1 July, before reverting to three times a week for the winter season. Asian Aviation May 2007 5 AIRLINES FAX may hand east Malaysia services over to Firefly The Malaysian government has accepted a proposal by Fly Asian Xpress (FAX) to surrender its rural air services (RAS) and other domestic routes in the east Malaysian states of Sabah and Sarawak to Firefly, a no-frills unit of Malaysia Airlines (MAS). Transport minister Chan Kong Choy says FAX’s proposal and the government’s decision were passed on to MAS on 25 April after a Cabinet meeting. Chan insists the move will not affect MAS’ business turnaround plan, should the airline decide to accept the proposal. FAX, which is based in Miri, currently operates the RAS services with a fleet of five, 19-seat De Havilland DHC-6 Twin Otters and the other domestic routes with seven Fokker 50 turboprops. The company initially took over the services from MAS in a restructuring of the Malaysian flag carrier’s domestic operation, as part of its turnaround plan. The government says it will subsidize Firefly’s operations in the two states by between RM50 million (US$14.7 million) and RM70 million a year. No details have been given as to when Firefly may take over the operations. In a response to the government’s decision, MAS Managing Director and Chief Executive Idris Jala says the airline will have to study the proposal and what the government has to offer before it agrees. FAX was originally founded to operate the east Malaysian services by AirAsia Chief Executive Tony Fernandes and a group of business associates, as part of a deal which saw the low-cost carrier take over much of MAS’s domestic network. Since then, however, MAS has begun to restore its own services on some of the routes, which it had said it would no longer compete on. Some analysts say the ministry’s decision to accept FAX’s proposal shows the smaller carrier is being favoured, as the original intention of the restructuring was to allow MAS to focus on its turnaround plan. “A private airline is given priority over the national carrier,” says a Kuala Lumpur-based analyst speaking on condition of anonymity. “It will be back to square one for MAS, which will have to hire staff and crew again.” Dennis William / Kuala Lumpur Air NZ eyes low-cost unit Air New Zealand is considering setting up a new, low-cost carrier to operate domestic routes in the face of intensifying competition. The new unit is one of several options under consideration by the airline, General Manager Nathan Agnew wrote in a memo to staff. The memo also said the carrier is examining the types of on-board services and products it offers and potential ways to streamline the customer’s journey, including travel to the airport and procedures at the airport itself. The memo, which was intended 6 Asian Aviation May 2007 as a reminder to keep company information confidential, was leaked to the press and widely reported. It cited Agnew’s concerns about Kiwijet, a planned New Zealand low-cost start-up, which is proposing services similar to proposals under consideration by Air NZ. Kiwijet is an initiative led by US aviation investor Patrick Weil and a group of investors, who hope to begin operating two Boeing 737-300s as early as in December. Weil has said he has secured US$20 million of funding for the new carrier. Boeing delivers Jet Airways’ first 777-300ER Boeing has delivered the first of 10 777-300ER jetliners to India’s Jet Airways, in the airline’s new colour scheme. The aircraft was set to enter service on 5 May, the 14th anniversary of the start of operations by the carrier. www.asianaviation.com Jet originally placed the 777 order in September 2005. The carrier now operates a fleet of 49 single-aisle 737s – both Classic and Next-Generation models. It also has an outstanding order for 10 of Boeing’s new 787 aircraft. FREIGHT UPS signs agreement for Shanghai International Air Hub UPS has signed an operating agreement and lease contract with the Shanghai Airport Authority for its UPS International Air Hub, which will be constructed at Shanghai’s Pudong International Airport. The hub, due to open next year, will link all of China, via Shanghai, to UPS’s international network across the Americas, Europe and Asia. The hub will be the first of its kind established by a US carrier in the country. From the hub, UPS will also provide services throughout China in conjunction with local all-cargo carrier Yangtze River Express. The new 96,000 square-metre facility will be located at the southern end of the airport’s West Cargo Terminal Area, currently under construction. The centre will employ in excess of 1,000 personnel by 2010, and will be capable of handling 17,000 items of freight an hour by 2012. To support operations at the hub, UPS plans to change aircraft serving Shanghai from Boeing MD-11s to Boeing 747-400 freighters. The company now has 76 takeoffs and landings a week at Shanghai, with a further 24 services operated by Since expanding services last year, UPS serves more Chinese cities than any other US cargo carrier. Yangtze River Express. The Shanghai Airport Authority is keen to establish Pudong as an international cargo hub and is now constructing a third runway at the airport. UPS is also keen to increase its presence in the country, particularly ahead of the Beijing Olympic Games. Establishment of the hub was made possible through the Sino-US civil aviation transportation services agreement, which was signed by the two countries in July 2004. UPS already operates to more than 330 cities in China, where it operates a large logistics centre and employs more than 4,500 people. Since the Briefs SIA CARGO, the freight arm of Singapore Airlines, has added services to Nairobi in Kenya, making the city the fourth African destination in the freight operator’s network. The services are being operated weekly via Johannesburg and Brussels on the return, using the carrier’s Boeing 747-400 freighters. BOEING has selected Crane Aerospace & Electronics to supply the onboard weight and balance system for the new 777 freighter. The new AirWeighs system will accurately and reliably measure the 777F’s weight and centre of gravity, in real time. The system can also quickly validate manual weight calculations. AirWeighs uses the load-bearing pressure on an aircraft’s landing gear struts to determine weight and balance. The 777F will be the first commercial aircraft to use the system. J A PA N AIRLINES (JAL) is extending its codeshare relationship with its part-owned domestic cargo operator Galaxy Airlines. JAL will use its code on Galaxy’s new, six-times weekly Osaka Kansai-Sapporo-Tokyo Haneda-Sapporo-Osaka Kansai service. JAL already codeshares with Galaxy on its other services. The new route is being launched following the delivery of a second Airbus A300-600R freighter. JAL owns 10 percent of Galaxy. THE INTERNATIONAL Air Transport Association (IATA) and the International Federation of Freight Forwarders Associations (FIATA) have teamed up to form a global industry task force to improve air cargo supply chain security. IATA says the task force will develop and voice industry positions that protect supply chain security while ensuring cargo gets to destinations on time. It will also improve the flow of information regarding security issues between industry associations and regions. BAE SYSTEMS Regional Aircraft has selected Aerostar of Romania as the prime contractor for the manufacturer’s relaunched 146 QT freighter conversion programme. The manufacturer stopped the programme, which involves the installation of a large freight door in the rear section of the fuselage, in 1993. Aerostar will be responsible for the large freight door assembly, interior kit manufacture, installation and maintenance, while fellow Romanian company Avioane Craiova will manufacture the freight door. The conversion will be offered for 146-200s and -300s. AIRBUS’S latest monthly order figures show no orders for the A380 freighter following the cancellation by UP of its order for 10 earlier this year. Emirates, FedEx and International Lease Finance had all previously cancelled A380F orders. At one point the manufacturer held 27 orders for the freighter. THE JAPANESE Government has approved a deal under which US cargo carrier ABX Air will operate two Boeing 767-200F freighters for All Nippon Airways (ANA) under a two-year wet lease agreement. The operation will begin on 15 May, with the aircraft set to fly on behalf of the Japanese airline’s ANA&JP Express joint venture, which was formed by ANA in partnership with Japan Post, Nippon Express and Mitsui OSK Lines. According to ABX, the aircraft will support ANA’s cargo operations across Asia, including markets such as Japan, China and Thailand. The approval “marks the first time the Japan Civil Aviation Bureau has allowed a foreign carrier to conduct cargo operations on behalf of a Japanese airline,” the US company says. www.asianaviation.com expansion of its air services last year, the company now serves more Chinese cities than any other US cargo carrier. The company’s investment in the country over the last five years totals US$600 million. Byline: Emma Kelly / Perth NZ’s Airwork makes plans to establish Australian cargo carrier New Zealand-based aviation company Airwork is launching a cargo carrier in Australia, operating two Boeing 737s on behalf of Australian logistics group Toll Holdings, the parent of Virgin Blue. Airwork was planning to have launched operations throughout the country by May. Two aircraft will be based in Brisbane and the third in Perth. Toll announced last year that it was working on a freight strategy that would include Virgin Blue, which was expected to operate its own dedicated freighter or quick-change aircraft under the strategy. However, Toll has now decided to proceed without Virgin Blue. Airwork is better known as a freight, charter and helicopter operator in New Zealand. It is already active in Australia, owning part of Brisbanebased charter carrier Alliance Airlines. Asian Aviation May 2007 7 MANUFACTURERS Boeing prepares for 787 final assembly Vought has now delivered its first composite fuselage sections for the 787. Boeing’s new 787 twin-aisle twinjet is getting close to final assembly as the US manufacturer prepares for a rollout on 8 July. Vought Aircraft Industries, based in Charleston, South Carolina, delivered its first composite fuselage sections for the aircraft on 8 May, while the horizontal stabiliser arrived at Boeing’s Everett assembly centre on 24 April. “In the coming weeks we will receive other major assemblies,” says Scott Strode, vice-president of 787 airplane definition and production. “This is a very exciting time for the program.” Vought completed two rearfuselage barrels – sections 47 and 48 – comprising about 23 percent of the aircraft’s fuselage. The sections were scheduled to be transported 200 yards to Global Aeronautica, Vought’s joint venture with Alenia North America, where they were to be wrapped in preparation for transport to Everett. Vought says the two sections were begun as one-piece barrels, then “stuffed” with additional structure and components before being joined together with the aircraft’s aft pressure bulkhead, making the tail-end of the fuselage. The South Carolina company joined Boeing’s 787 development team in 2002, becoming a structural partner a year later. Production activities for the 787 at Vought began last June, since when the company has fabricated seven aft fuselage production units and one development unit. The 787’s horizontal stabiliser was manufactured by Alenia Aeronautica at its facility in Foggia, Italy and transported in five pieces - the left and right stabiliser, two elevators and a centre section. It was delivered to Everett by Boeing’s co-called ‘Dreamlifter’, a specially modified 747-400 used to transport 787 major assemblies. The stabiliser was loaded into position in the 787 final assembly bay on 25 April. The completed assembly has a wing span of approximately 62ft and measures 32ft fore to aft. China’s large airliner to be assembled in Xian, Shanghai China’s proposed large commercial jet will be assembled in Shanghai and Xian, capital of northwest China’s Shaanxi Province, officials from China’s Xian Yanliang State Aviation High-Tech Industry Base have announced. Xian will handle about half of the manufacturing work for the passenger version of the aircraft and 60 percent for the freighter version. Shanghai will be the final assembly site because of its superior infrastructure, central location and access to capital. Xian Yanliang has the strongest research and development capability in the Chinese aviation industry. The country’s two state-owned aerospace groups, China Aviation Industry I (AVIC I) and China Aviation Industry II (AVIC II) , will be involved in the design, development and production of the new aircraft alongside the Commission of Science, Technology and Industry for National Defence. Development of the prototype will take at least 10 years. The passenger version of the new jetliner will carry more than 150 passengers and have a maximum take- off weight of more than 100 tonnes. China’s ambitious plan to develop large commercial passenger jets in a multi-billion dollar project aims to reduce the country’s dependence on overseas aircraft makers such as Boeing and Airbus, while also giving the country a foothold in the global commercial aircraft market Kenne Chan / Indianapolis Subscribe to Asian Aviation ■ Yes, please enter my subscription Australia New Zealand Asean Singapore Rest of World India/Pakistan /Bangladesh ■ 1 year A$139 ■ 1 year A$149 ■ 1 year US$111 ■ 1 year S$105 ■ 1 year US$167 ■ 2 year A$250 (Incl. postage & GST) ■ 2 year A$268 (Incl. airmail postage) ■ 2 year US$199 (Incl. airmail postage) ■ 2 year S$193 (Incl. 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PO Box 88 Miranda, NSW 1490 Australia Phone: +61 2 9526 7188 Fax: +61 2 9526 1779 Email: subscriptions@asianpressgroup.com.sg 8 Asian Aviation May 2007 www.asianaviation.com DEFENCE US may lift F-22 Raptor export restriction for Japan The US government is reportedly giving favourable consideration to Japan’s requests for the Lockheed Martin F-22A Raptor to be released to compete for the country’s F-X front-line fighter requirement. “The US is very positively disposed to talk with Japan about the future fighter aircraft,” the National Security Council’s East Asia Director Dennis Wilder told reporters before Japanese Prime Minister Shinzo Abe’s visit to the USA. “The US-Japan defence alliance is changing,” Wilder said. “The People’s Liberation Army Air Force of China is spurring modernisation. North Korea’s missile and nuclear capabilities come as a threat to Japan. All of these explain why the Japan Air Self-Defence Force (JASDF) requested the future-generation fighters.” Federal law currently bans exports of the F-22 without Congressional approval and prohibits active marketing of the aircraft. The aircraft is valued at a unit price of about US$200 million – more than twice the price of Boeing’s proposed F-15FX, which Japan is eyeing as an interim replacement for its ageing McDonnell Douglas F-4EJ Phantoms. The Raptor is seen as a key potential element of the country’s missile defences because of its ability to detect and destroy cruise missiles. Japan also wants a fighter that offers stealth capability, an active electronically scanned array radar and advanced data links. Japan is considering buying a combination of Lockheed’s F-22A Raptor and Boeing’s F-15FX. Up to now, the US has been pitching its F/A-18E/F Super Hornet and Lockheed’s F-35 Joint Strike Fighter (JSF) alongside the F-15 for the F-X programme. Also under consideration are the Eurofighter Typhoon and Dassault Rafale. But Tokyo wants the best available air superiority capabilities, which are L-3’s SPAR Aerospace wins Hercules electronic warfare upagrde for NZ Canada’s SPAR Aerospace, a subsidiary of L-3 Communications, has been awarded a contract to design and install an electronic warfare self-protection system (EWSPS) for the Royal New Zealand Air Force (RNZAF) fleet of five Lockheed Martin C-130H Hercules tactical transports. The contract is an add-on to the six-year Life Extension Programme (LEP) awarded to SPAR by the New Zealand defence ministry in December 2004. According to L-3, the LEP is the most comprehensive avionics, mechanical systems and structural refurbishment programme ever performed on a C-130H. The programme includes centre-wing refurbishment to address structural fatigue and cracking, “one of the major life-limiting elements on the C-130”, the company says. The updates will make the RNZAF fleet one of the most modern in the world, able to operate safely beyond the predicted withdrawal date of 2017, L-3 adds. “The electronic warfare upgrade for the RNZAF fleet builds on our successful record of installing them on Canada’s C130 fleet,” says SPAR President Patrice Pelletier. “With C-130s increasingly thrust into trouble spots, the EWSPS is becoming a requirement for operations in these world hotspots.” the F-22’s primary strength, and sees commonality with US Air Force equipment as a major advantage for joint operations. According to local press reports, Japan’s defence ministry is considering a two-stage solution, with the F-15FX procurement starting in fiscal year 2009, replacing the Phantoms, which are set to begin retiring the previous year. Current planning up to fiscal 2009 foresees the acquisition of an initial seven aircraft to replace the F-4EJs, with the ministry expected to decide on the fighter type by the second quarter of next year. Singapore confirms G550 AEW aircraft acquisition The Singaporean defence ministry (MINDEF) has confirmed that the country has bought four Gulfstream G550 airborne early warning (AEW) aircraft to replace the island nation’s four, ageing Northrop Grumman E-2C Hawkeyes. The first aircraft is scheduled for delivery to the Republic of Singapore Air Force (RSAF) by late 2008, with all four expected to be in service by 2010. The ministry has not disclosed details of the aircraft’s configuration or programme costs, although it has been reported that the configuration is likely to be similar to that now being delivered to Israel. The Israeli aircraft – the first of which was delivered last September – are equipped a derivative of Elta’s Phalcon phased array radar. The Elta conformal AEW system includes two radar systems operating simultaneously using different www.asianaviation.com frequency bands, offering 360-degree detection capabilities. “The G550-AEW will enhance the creation of the RSAF’s air situation picture and its identification capability as part of the networked air defence system,” MINDEF says. “The new platforms will provide improved surveillance for the RSAF and enhance Singapore’s air defence capability.” MINDEF says the aircraft offers endurance of as much as nine hours and can operate at altitudes of 41,000ft with a crew of eight, including two pilots. The G550s are powered by twin Rolls-Royce BR710 engines, and the Israeli AEW aircraft are fitted with extra generators to produce the extra power required by the on-board systems. The RSAF’s E-2Cs were delivered between 1985 and 1986 and will remain in service until 2010. Asian Aviation May 2007 9 TECHNOLOGY Boeing plans fuel-cell demonstrator flights Boeing and a number of European partners plan to conduct flight tests later this year of a manned aircraft powered by a fuel cell and lightweight batteries. The flight tests, which will take place in Spain, will demonstrate for the first time that a manned aircraft can maintain straight and level flight with fuel cells as the only power source, Boeing says. The manufacturer sees applications for the technology in small manned and unmanned air vehicles. The tests are part of Boeing’s Fuel Cell Demonstrator Airplane research project, which the manufacturer has been working on for a number of years at its research and technology centre in Spain. The systems-integration phase of the project was recently completed, with integration testing now underway. Fuel-cell technology uses an electrochemical device to convert hydrogen directly into electricity and heat, without combustion, offering both efficiency and environmental benefits. Fuel cells are emission-free The demonstrator has an electric motor powered by a hybrid system combining a fuel cell and a lithium-ion battery. and quieter than conventional engines powered by hydrocarbon fuels. The Boeing demonstrator uses a hybrid system, with a proton exchange membrane (PEM) fuel cell and lightweight lithium-ion batteries, to power an electric motor driving a conventional propeller. The fuel cell provides all power for the cruise phase of flight, while the batteries provide a power boost during takeoff and climb. The demonstrator aircraft is a Dimona motor glider, built by Quickstep works towards European deal Australia’s Quickstep expects to sign a co-operation and development agreement soon with a “leading European-based aircraft manufacturer”, for its composite manufacturing process. The Quickstep composite manufacturing process uses fluidbased curing and is more costeffective and faster than traditional autoclave to produce composites, according to the Perth, Western Australia-based company. Quickstep has been talking to manufacturers including Airbus and Boeing for a number of years as part of its effort to commercialise the technology in the aerospace industry. The company already has a test programme supplying sample parts for the UK’s Spirit AeroSystems (for merly BAE Systems Aerostructures), which makes structures for Airbus. “We are in advanced discussions with a leading European aerospace manufacturer regarding the establishment of a framework co-operation and development agreement, intended to achieve certif ication for aerospace components for the Quickstep Composites CRC, Eurocopter unite on composites research Australia’s Co-operative Research Centre for Advanced Composite Structures (Composites CRC) and Eurocopter’s Australian Aerospace unit have launched the detailed planning phase of a three-year helicopter composites research and development programme. The project is expected to result in the development of a “globally competitive hub for composite component design, manufacture and through-life support”, the partners say. Efforts will focus 10 Asian Aviation May 2007 on the development of improved techniques to design, manufacture, repair and maintain advanced aerospace composite structures for helicopters. Composites CRC is one of the world’s leading composites research organisations. It comprises 25 members, including composite businesses, Australian government research laboratories and universities. The organisation has previously focused on technology and process – a forerunner to actual aerospace components manufacture,” says Nick Noble, the company’s managing director. Quickstep declines to identify the potential partner. The company is also establishing a new testing and manufacturing facility in Munich, Germany, to be closer to potential European customers. The facility will be operated by a wholly owned subsidiary and will initially operate one QS20 composites production machine. Emma Kelly / Perth processes for fixed wing aircraft. Many of its developments have been commercialised and are now being used in the aerospace industry. Australian Aerospace, which operates an Asia-Pacific Centre of Excellence in Brisbane, is leading the programme. The company is investing A$15 million (US$12.37 million) in a new composites manufacturing plant in Queensland to support production of Eurocopter Tiger armed reconnaissance helicopters and NH Industries MRH90 troop-lift helicopters for the Australian Army. Both aircraft include a substantial proportion of advanced composite materials. www.asianaviation.com Emma Kelly / Perth Austria’s Diamond Aircraft Industries, which performed major structural modifications to the aircraft. With a wingspan of 16.3m (53.5ft), the aircraft will be able to cruise at approximately 100kmh (62mph). The PEM fuel-cell system used on the flight demonstrator was designed and built by UK-based Intelligent Energy. Other partners in the project include Madrid-based avionics group Aerlyper, SAFT France, Air Liquide Spain, the Electronic Engineering Division of the Polytechnic University of Madrid and SENASA (Spain). Boeing is also investigating other types of fuel cell technology, including a Solid Oxide Fuel Cell that could be applied to secondary powergenerating systems, such as auxiliary power units. This technology could be mature enough in 10 to 15 years, for potential use in commercial aviation, says Boeing. Emma Kelly / Perth Briefs JAPAN AIRLINES (JAL) will install Boeing’s Class 3 electronic flight bag (EFB) on two new Boeing 777s – a 200 and a -300ER – that will be delivered this year. This is JAL’s first EFB order. The airline has 38 777s in service and a further eight still to be delivered. Boeing has received more than 1,000 orders for the EFB since it was launched in 2002. The manufacturer says the device serves as a critical communications gateway between the aircraft in the sky and an airline’s operations centre and maintenance department on the ground. Separately, JAL has selected Thales’ TopSeries in-flight entertainment for its Boeing 787s, which are due to enter service in mid-2008. Thales expects to operate a comprehensive service station in Japan to support the IFE systems. THE REPUBLIC of Singapore Air Force (RSAF) has selected Rockwell Collins to supply an integrated avionics communication/navigation/ surveillance and air traffic management solution for its fleet of 10 Lockheed Martin C130 Hercules transports. The upgrade will feature Rockwell’s Flight2 avionics, which augment and enhance aircraft operational capabilities by providing an open-systems architecture that integrates flight operations with navigation and guidance functions and supports future growth requirements. TRAINING & SIMULATION CAE launches 5000 Series simulator for narrowbodies Canadian simulator manufacturer CAE marked its 60th birthday with the launch of the new 5000 Series fullflight simulator (FFS) for narrowbody aircraft. The device is designed to address training requirements of the commercial narrowbody aircraft market, including the Boeing 737, Airbus A320 and business jets, as well as the emerging very-light jet class. The CAE 5000 Series is positioned between the company’s Simfinity line of training devices and its existing, customised Level-D simulator – which has also been enhanced and upgraded with the latest technologies, and is now called the CAE 7000 Series. The new FFS will be available in early 2008, with list prices ranging from C$8 million (US$7.2 million) to C$11 million. The product range will include the CAE 5200 Series FFS, which exceeds Level-B requirements and is targeted for recurrent training, and the CAE 5400 Series FFS, which exceeds Level-D requirements. The Canadian manufacturer has launch orders for the simulators from: Lufthansa Flight Training, which has ordered an A320 FFS; Ryanair, with an order for five; and CAE’s own global training network, which will deploy 5000 Series 737 and A320 simulators next year. The new Embraer-CAE joint venture, offering training for Embraer Phenom business jets, will also use them, as will the new CAE-Airbus venture. “We believe we have brought to our customers the most innovative solution designed specifically to meet evolving training requirements brought about by new regulations, new aircraft types and emerging markets,” says Marc Parent, CAE’s group president for simulation products. “The CAE 5000 Series meets market demands for lower acquisition costs, reduced lifecycle costs and faster delivery times.” Separately, the Canadian simulator maker has added three new flighttraining organisations to its CAE Global Academy. The company now has six organisations involved in the operation, which will allow it to train over 1,000 new pilots a year. The new partners are in North America and Belgium. CAE has also secured a new pilottraining contract from Indian carrier Interglobe Aviation, which operates as IndiGo. Under the arrangement, CAE will source, recruit and train 290 candidates for first officer and captain on the airline’s A320 fleet. IndiGo now has a fleet of nine A320s and will take delivery of another six this year. By 2010, the carrier plans to serve 30 Indian cities with 40 of the narrowbodies. The manufacturer has also received Level-D certif ication from the CAE President Robert E Brown (left) shows the company’s new narrowbody simulator to Canada’s public works minister Michael Fortier. European Joint Aviation Authorities and Japan Civil Aviation Bureau for four simulators with electric-motion systems for Japan Airlines (JAL) and Amsterdam-based Flight Simulation (FSC). The simulators – two Boeing 737800s and one A320 for FSC, and one 737-800 for JAL – are the first electric-motion FFS’s for Airbus and Boeing aircraft to receive Level D certification, CAE says. The FSC simulators have entered service at the company’s training centre at Schiphol airport, while JAL’s simulator was due to enter service at its Tokyo training centre in April. The electric motion system provides more accurate and Embraer invests in Asia-Pacific training Brazilian regional-aircraft manufacturer Embraer is investing US$40 million in its Asia-Pacific operations, which will include a simulator training facility in Singapore. The company’s expansion in the region follows an increase in orders, which now total 128 aircraft for operators in Australia, China, India, Taiwan and Thailand. The new simulator centre will be operated in conjunction with a stillunnamed “global training provider”, reported to be Alteon Training. The facility will house an Embraerowned, Level D, full-flight simulator for Embraer’s E-Jet range of aircraft. The simulator is scheduled to be operational in June, with technical and flight-attendant training to follow next year, says Embraer. In addition, Embraer is partnering with Menlo Worldwide to establish a spare-parts facility in the free-trade zone at Singapore’s Changi Airport. The investment will be conducted through a wholly owned subsidiary, Embraer Asia Pacific, which is incorporated in Singapore and will be responsible for local marketing and sales. The manufacturer will more than double its Singapore-based staff to 40. “Asia is an extremely important region for Embraer,” says Frederico Fleury Curado, the company’s newly appointed president and chief executive officer. “Recent sales have demonstrated that the market here is well suited to our products and we want to make sure that our new customers in the region can benefit from the best possible support services.” Emma Kelly / Perth Air New Zealand to open ATR training centre Air New Zealand is establishing an ATR simulator-training centre in Christchurch, New Zealand, for its regional unit Mount Cook Airlines. The centre will open in the fourth quarter of this year to provide a low-cost training alternative for ATR operators, the regional-aircraft manufacturer says. It will feature a Mechtronix non-hydraulic simulator, which can support 80 percent of simulator training. The manufacturer already has a full-flight simulator located in Bangkok, Thailand. Mount Cook Airlines is one of the largest ATR operators in the region with a fleet of 11 turboprop ATR 72500s. The aircraft manufacturer, a consortium of EADS and Italy’s Alenia, is expanding its presence in the Asia-Pacific region with new operators, a new sales office in Sydney and a spare parts facility in Auckland. ATR has recently made a number of sales in Australia, including three ATR 42-320s to Jetcraft and an ATR 42-500 to Macair. www.asianaviation.com Emma Kelly / Perth authentic cues for pilot training and is more environmentally friendly than hydraulic or hybrid electrichydraulic motion systems, says the manufacturer. CAE worked with Moog FCS on the new all-electric motion system. CAE recently sold two CAE 7000 Boeing 787 simulators to JAL, which will also feature the electric motion system, with a new Tropos-6000 visual system and Liquid Crystal on Silicon (LCoS) projectors. Additionally, JAL has ordered a CAE Simfinity 787 integrated procedures trainer (IPT). The first 787 FFS will be delivered to JAL’s training centre at Haneda Airport in 2008. Emma Kelly / Perth Briefs NIPPON CARGO Airlines (NCA) has ordered a Boeing 747 fullflight simulator from CAE for its new Tokyo training centre. The simulator will be used to train pilots for the airline’s 747-400Fs and its new 747-8 Freighter, which NCA ordered in late 2005. The cargo operator has also ordered a flat-panel trainer, which will be used for initial flight training, and a maintenancetraining simulator. NCA’s new training centre is due to open in October 2008. ST AEROSPACE Engineering of Singapore has purchased Bankstown Airport, Sydneybased charter and flight training company Pacific Flight Services in a A$550,000 (US$454,155) cash deal. ST Aerospace says the Australian unit will complement the engineering company’s charter and training business. Pacific Flight Services provides flight training, charter and aircraft management services from Bankstown. Asian Aviation May 2007 11 AIRPORTS & ATM Australia, New Zealand implement new ATM initiatives Air services providers in Australia and New Zealand have introduced a number of new initiatives designed to improve air traffic management (ATM) efficiency and reduce aviation emissions. Airser vices Australia has implemented a new aircraftsequencing programme at Sydney airport, as one of a number of measures designed to reduce emissions. The Aloft programme became fully operational in late March, following a trial at the airport. The programme uses the Maestro scheduling tool to increase the certainty of arrival times, minimising the need for holding. Instead of looking at aircraft approaching the airport from 100nm out, Airservices has adapted the software to look at aircraft 1,000nm away. The ultimate aim is to provide aircraft with an exact arrival time while they’re still hours away from the airport, allowing them to perform a continuous descent without any need for holding, Airservices says. The programme is already proving successful, reducing carbon dioxide emissions from flights into Sydney by more than 9 tonnes a day, according to Australian transport minister Mark Vaile. Airservices is also looking at implementing the programme at other airports. The initiative is one of many that the ATM service provider is working on to reduce emissions. Others include increasing the flexibility of flight tracks, more efficient runway use and continuousdescent approaches, which minimise speed changes. New Zealand is testing optimum arrivals procedures at Auckland. The initiatives are expected to reduce carbon dioxide emissions by hundreds of thousands of tonnes per year. Meanwhile, New Zealand air navigation services provider Airways New Zealand in April launched a trial of optimum arrivals for Air New Zealand and Qantas international flights at Auckland International Airport. The New Zealand optimum arrivals trial is similar to Airservices’ tailored arrivals trial (TAT), carried out at Melbourne last year, as well as the Dutch continuous descent arrival trials and the on-going TAT in San Francisco. Air New Zealand and Qantas Boeing 747 flights into Auckland are being spaced to allow a “glide descent” into the airport from the top of the descent point, says Airways New Zealand. The glide descent profile will be flown with aircraft engines set at idle, significantly reducing fuel burn and emissions. The service provider says the trial will enable it to establish what the actual fuel-burn is for an arriving flight where no air traffic control intervention is needed, and to determine the potential for fuel savings and emissions reductions. Emma Kelly / Perth Manila’s Terminal 3 postponed indefinitely The opening of Terminal 3 at Ninoy Aquino International Airport in Manila has been postponed indefinitely, due to construction defects. The terminal was previously scheduled to open on 10 March last year, although this date was pushed back when part of the building collapsed, prompting a structural review. The terminal was originally completed several years ago with the intention of opening in 2002. According to Alfonso Cusi, general manager of Manila International Airport Authority (MIAA), the latest decision to postpone was based on the recommendation of engineers and consultants hired by the agency to review the design and construction of the terminal. “The engineers’ report stated that, while there was no cause for concern about the foundation and stability, the construction of the building did not 12 Asian Aviation May 2007 adhere to the original design,” Cusi says. “There were violations of safety issues, specifically on the capability of the facility to withstand the force of a major earthquake.” Cusi says the structural defects must be fixed, then the building will have to be certified safe and fit for occupation before it becomes operational. A new opening date can only be decided after the completion of corrective work by Tanaka Corp, which was awarded the construction contract by Philippines International Air Terminals (PIATCO). PIATCO, a joint venture of Germany’s Fraport with Philippine partners, secured the build-operate contract for the terminal in 1997, during the administration of thenPresident Joseph Estrada. However, the contract was cancelled in November 2001 by the government of Estrada’s successor, Gloria Macapagal-Arroyo, which cited irregularities in the selection process. The Philippines government took over the terminal in 2004 and made an initial payment of 3 billion pesos (US$60 million) to PIATCO last year. Fraport, which holds a majority stake in PIATCO, has filed a US$425 million claim against the government at the Washington-based International Centre for Settlement of Investment Disputes, while PIATCO has filed a case seeking US$565 million. The latter’s case will be heard at the Singapore-based International Chamber of Commerce in November. All airlines currently operating at Terminal 1 are supposed to move to Terminal 3 when it opens. Terminal 2 is currently dedicated to Philippine Airlines (PAL) operations. www.asianaviation.com Dennis William / Manila Briefs AUSTRALIA AND New Zealand have agreed on mutual recognition of aviation certification, allowing airlines to operate air services between and within the two countries, without having to be issued with air operator certificates from both nations’ civil aviation authorities. WORK HAS begun on a new airport for Pakistan’s capital, Islamabad. The US$400 million facility will be located 30km south-west of the city, and is due to be completed in three years. The single-runway airport will be capable of handling 4.5 million passengers and 50,000t of cargo a year, with the potential to increase capacity to 6.5 million passengers and 100,00t later. Islamabad’s existing airport is unable to cope with the country’s growing traffic levels. MALAYSIA AIRPORTS Holdings has secured a contract to manage, operate and maintain Kazakhstan’s Astana International Airport, serving the country’s capital. The arrangement is for 10 years with an option to extend for a further 10. AUSTRALIA HAS signed new air services agreements with Croatia and Spain that are expected to result in direct flights being operated from Spain and Croatia to Australia. The agreements allow for daily services to be operated and additional services to Australian airports other than Sydney, Melbourne, Brisbane and Perth. MRO ST Aero signs support agreement with China’s Juneyao Singapore Technologies Aerospace (ST Aerospace) has signed a US$16 million components management and maintenance support deal with privately owned Chinese carrier Juneyao Airlines. According to the Singapore-based company, the deal is being done through ST Aero’s wholly owned ST Aerospace Supplies subsidiary. The work will include maintenance-bythe-hour (MBH) support for Juneyao’s fleet of 15, single-aisle Airbus A319 and A320 twinjets over a seven-year term. “The contract attests to the confidence amongst new and established airlines in ST Aerospace’s component support programmes,” says ST Aerospace President Tay Kok Khiang. Shanghai-based Juneyao Airlines was set up in June 2005 with approval from the Civil Aviation Administration of China (CAAC) and Shanghai Municipal Government. The carrier plans to provide passenger and cargo services on domestic routes, as well as offering charter flights, maintenance and component rework and other services. The airline now has a fleet of two A320-200s and two smaller A319100s, with another four A320s on order. All eight aircraft are to be leased from GE Commercial Aviation Services (GECAS). The carrier signed a Memorandum of Understanding with Airbus in 2006 covering 40 aircraft, including widebody types. ST Aerospace already has ongoing component support programmes for other Chinese private airlines: United Eagle Airlines, China United Airlines, Spring Airlines and Okay Airways Separately, ST Aerospace has expanded its maintenance, repair and overhaul (MRO) operation in Singapore with the opening of a new hangar and groundbreaking for another at its wholly owned ST Aerospace Engineering (STA Engineering) subsidiary at Seletar, Singapore. The newly opened hangar was constructed in eight months at a cost of S$10 million (US$6.60 million). ST Aero has opened an additional narrowbody hangar at STA Engineering’s Seletar site, with another hangar now under construction. It is equipped to perform heavy maintenance and modification work for a range of aircraft types, including general aviation, helicopters and commercial narrowbody jetliners up to the size of a Boeing 757. The groundbreaking was for an additional, S$17.3 million hangar, which is expected to be operational by early 2008. This hangar will have two maintenance bays, able to accommodate two narrowbody aircraft simultaneously. “The hangar expansion at Seletar is a part of ST Aerospace’s global growth plans, and is in response to our customers’ increased demand for MRO services,” says ST Aerospace’s Tay. The company has over the past three years built new hangars at all three of its Singapore locations: Changi, Paya Lebar and Seletar. In 2004 it added three hangars at its facilities in the US and Singapore and established an MRO joint venture in Shanghai. In 2006, the company opened a 12-bay MRO facility in Panama. Boeing opens materials management centre in Singapore Boeing has opened its new Integrated Materials Management (IMM) Asia Regional Centre in Singapore. The US aircraft manufacturer’s IMM team helps maintain airlines’ spare parts inventories, by managing the supplier-owned inventory at airline maintenance locations. This reduces the carriers’ inventory holding costs and other supply-chain management expenses. The new facility is located at Schenker Singapore’s Megahub facility in the Airport Logistics Park of Singapore (ALPS) at Changi airport, where Boeing now maintains a regional distribution centre through its lead logistics service provider. The opening of the regional centre enhances the existing support of on-site teams throughout the globe and improves communications and visibility of inventory within the IMM network, which directly benefits aircraft operators, Boeing says in a statement. The IMM Asia Regional Centre was developed using lean principles to standardize processes and reduce variation in inventory planning, with the goal of boosting productivity, improving communications and enhancing demand visibility. The regional centre will also serve as a model as the Boeing division looks at placing centres elsewhere around the world to support its current and expanding IMM customer base. Current IMM customers include Air Tran, All Nippon Airways, Delta Airlines, Japan Airlines, KLM, Japan Transocean Air and Singapore Airlines. Network supplier partners include Honeywell, UFC Aerospace, Satair, Hamilton Sundstrand, AvioDiepen, and the recently acquired Boeing subsidiary, Aviall. www.SamChuiPhotos.com Sam Chui worldwide Aviation Photography Professional photography and multimedia for press releases. magazines, airpor t events, conferences, brochures, promotions and display Phone + 61 (0) 2 9712 0991 Mobile + 61 (0) 414 950 776 Email samchui@samchuiphotos.com www.asianaviation.com Asian Aviation May 2007 13 BUSINESS AVIATION DIRECTORY Business aviation grows slowly in Asia-Pacific As the business aviation industry heads to Geneva for this year’s EBACE convention, Andrzej Jeziorski writes that key Asia-Pacific markets are lagging behind other regions, despite enormous potential. Gulfstream has strengthened its presence in the Asia-Pacific region, doubling its fleet to 44 aircraft since 2000 The world of business aviation is preparing to gather in Geneva for the seventh annual European Business Aviation Convention and Exhibition (EBACE) in late May, luring exhibitors and attendees from as far afield as Africa, Asia, the Middle East and North America. The show’s organisers, the European Business Aviation Association (EBAA) and the USbased National Business Aviation Association (NBAA) see the show as a platform for industry discussions and a springboard for generating new business. “Across the globe, there is a growing understanding of the value that business aviation brings to businesses through improved employee productivity and efficiency and increased access to new markets,” the associations say in a joint statement. Companies are becoming more adept at using business aircraft to gain a competitive edge, they say. But some parts of the world are embracing business aviation more quickly than others, and some of Asia’s biggest and fastest-growing economies are still full of untapped potential. China, for instance, is the world’s most populous nation with the fastestgrowing major economy. Investment is flowing into the country from around the world and the number of wealthy individuals in the country is swelling. Yet so far this has not translated into a significant expansion of the country’s business aviation industry. In fact, although industry estimates anticipate demand for between 500 and 2,000 business jets in China, the actual number has remained little 14 Asian Aviation May 2007 changed over the past few years. China now has 26 of the jets, including government and charter aircraft. There are only three charter operators in the country following the collapse in March last year of Shandong Airlines’ Rainbow Jet unit, which failed because demand for business jet charter services never lived up to the company’s expectations. The three survivors are Air China Business Jet, Hainan Airlines’ Deer Jet unit and Shanghai Airlines Business Jet. Restrictive environment Growth of China’s business aviation industry has been hampered by restrictive regulations and poor infrastructure. Local laws have prevented companies from operating their own aircraft up to now, while military control of much of China’s airspace means flight plans for overseas operators have to be filed with seven days’ notice, making last minute changes in itineraries impossible. Local operators don’t face the same problem, but remain in the minority of business jets flying into China. The country now has 300 airfields of which only about a third are open to business jets, while many lack essential facilities. To date, Shanghai’s Hongqiao airport is the only one in the country with a fixedbase operation (FBO) providing key ground services, although another is under construction in Beijing. In the USA, by contrast, business aircraft can operate at about 5,500 airports, with 4,500 FBOs. The General Administration of Civil Aviation of China (CAAC) is addressing this problem, with plans to invest US$18 billion to build eight airports a year up to 2010. Another problem facing operators is China’s 22 percent import tax on foreign-made business jets, while foreign-registered aircraft must pay overflight charges and landing fees that are as much as eight times higher than those paid by their local counterparts. Still, manufacturers remain optimistic, saying authorities in the country are becoming more inclined to favour the development of business aviation. “We believe the operating environment is improving and enabling the expansion of business aviation in China,” says Guan Dongyuan, director of executive jet sales in the country for Brazilian manufacturer Embraer. Bombardier leads Canadian manufacturer Bombardier remains the market leader in AsiaPacific business jet sales, with more than 100 of its aircraft in the region, giving the company a 31 percent share of the market. Speaking at last year’s Singapore air show, the manufacturer’s VicePresident of Asia-Pacific Sales David Dixon said acceptance of business aviation across the region was increasing. Evidence for this could be found in the fact that the number of hours flown in the Asia-Pacific by the company’s Skyjet charter subsidiary in 2005 beat the most optimistic forecasts by 24 percent, he said. Bombardier last year made a www.asianaviation.com breakthrough in the tough Japanese market, with charter operator Global Wings becoming the first Asian customer for the Challenger 605 business jet. The aircraft will be delivered in the third quarter of this year, adding to a fleet that now comprises two Bombardier Learjet 45XR aircraft. Japanese companies have been notoriously reluctant to accept the use of executive aircraft, although manufacturers believe this is now changing. Still, the country remains a tough environment, with the same requirements for obtaining and maintaining airworthiness certificates applied to business aircraft and commercial jetliners. To date, there are only a handful of business jets based in Japan. Over the past decade, the number of business aircraft registered in Asia has increased by more than 25 percent, but still remains small. The total has grown from 205 aircraft in 1993 to 259 in 2003. Over the same period, Europe saw 13 percent growth to 1,300 aircraft. But aircraft makers’ forecasts suggest that growing economies will inevitably lead to more Asia-Pacific sales. Embraer predicts 250 business jet deliveries in the region over the next 10 years, with an average 9.1 percent annual growth rate and a market value of US$3.8 billion by 2015. “We see great potential for the business jet market in China, AsiaPacific and the Indian in light of the relatively small fleet in the region compared to its GDP,” says Luis Carlos Affonso, Embraer’s senior vice-president of executive aviation. BUSINESS AVIATION DIRECTORY STRAPLINE Asia-Pacific Business Aviation Directory flight support, which helps corporate aircraft operators obtain overflight and landing permits; ground services such as fuel, transportation and accommodation; and advice on security issues. The company’s meteorologists tailor computerised flight plans to save time, fuel and money, providing full weather briefs and en route updates. Air Routing also maintains an airport database and offers internationally accepted cards to support aviation credit and purchasing needs. AIRCARE SOLUTIONS GROUP Adam Aircraft’s A700 has already gathered 350 orders, with first deliveries scheduled for later this year. ADAM AIRCRAFT INDUSTRIES 12876 East Adam Aircraft Circle Englewood CO 81001 USA Tel: +1 303 406 5900 Web site: www.adamaircraft.com US aircraft manufacturer Adam Aircraft produces the A500 piston twin and the A700 Very Light Jet. In a drive to find Asian customers, Adam signed a partnership in February 2006 with Singapore Technologies Engineering, covering maintenance, engineering of new models and sales in the region. The company expects to win sales in Asia within two years. Two A500s have been delivered to US customers, while the A700, which can seat as many as six passengers, is now undergoing flight test and development. The first A700 destined to go to a customer is now undergoing assembly with delivery scheduled for the third or fourth quarter of this year to air taxi company Magnum Jet. Adam has orders to date for 350 A700s, with 80 outstanding orders for A500s on top of seven aircraft delivered to date. AIRBUS 1 Rond-Point Maurice Bellonte 31707 Blagnac Cedex France Tel: +33 5 6193 3259 Web site: www.airbus.com Airbus China Beijing Tianzhu Airport Industrial Zone Tianwei Erjie Shunyi County Beijing 101312 People’s Republic of China Tel: +86 10 8048 6161 Fax: +86 10 8048 6162 Web site: www.airbuschina.com.cn Airbus Japan ARK Mori Building 35th Floor 1-12-32 Akasaka Minato-ku Tokyo 107-6035 Japan Tel: +81 3 5573 8400 Fax: +81 3 5573 8401 Web site: www.airbusjapan.com Airbus Kuala Lumpur Office Eurocopter – Malaysia Terminal 2 Sultan Abdul Aziz Shah Airport 47200 Subang Selangor Malaysia Tel: +60 3 7848 3408 Fax: +60 3 7848 3409 Airbus New Delhi Office 387 New Friends Colony New Delhi 110 065 India Tel: +91 11 516 27712 Fax: +91 11 516 27713 Airbus Sydney Office 324 West Bay Dr NW Suite 200 Olympia WA 98502 USA Tel: +1 360 754 9805 Fax: +1 360 754 1911 Web site: www.aircaresolutionsgroup.com AirCare Solutions Group provides a variety of training programmes, services and aviation safety products to private and charter operators of corporate aircraft. Divisions include: ACCESS Assistance, which offers 24 hour a day, seven day a week travel and medical assistance; AirCare Crews, which provides staffing solutions for corporate aviation; ASG Interactive, offering computer-based aviation training; EMTA, which provides safety and first-aid training; FACTS Training, which specialises in inflight emergency procedures; and Quality Resources, offering aviation consulting and technical writing services. ASIAN BUSINESS AVIATION ASSOCIATION Suite 5, Level 36 Aurora Place 88 Philip Street Sydney 2000 Australia Tel: +61 2 8864 0520 Fax: +61 2 8864 0530 Toulouse, France-based commercial aircraft manufacturer Airbus entered the business aviation market with its Airbus Corporate Jetliner (ACJ), which achieved European certification in 1999. The aircraft was originally based on the A319 single-aisle twinjet, with additional fuel tanks fitted to extend its range to 6,000 nautical miles. The manufacturer has since added the larger A320 Prestige and the smaller A318 Elite to its corporate jet family, winning about 80 orders to date. Asian customers and operators of the ACJ family include the Royal Thai Air Force, India’s UB Group and Skytraders of Australia. Airbus says the number of aircraft sold in Asia to date is in double figures. AIR ROUTING INTERNATIONAL Headquarters Room 602 Aon China Building 29 Queen’s Road Central Hong Kong Jason Liao (AsBAA Chairman) Suite C811B Beijing Lufthansa Center Chaoyang District Beijing 100016, China Phone: +86 10 6463 8080 Fax: +86 10 6463 8019 Web site: www.asbaa.org Tel: +1 713 430 7200 Fax: +1 713 430 7016 Web site: www.airrouting.com Texas-based Air Routing International is one of the leading providers of corporate flight handling services to the business aviation industry. Services offered include 24-hour AUSTRALIAN BUSINESS AIRCRAFT ASSOCIATION 9 Guthrie Avenue Cremome NSW 2090 Australia Tel: +61 2 9953 0363 Fax: +61 2 9904 9539 Web site: www.abaa.com.au The Australian Business Aircraft Association (ABAA) is a non-profit group acting as a collective voice for the business aviation community in Australia, and assisting its members in all aviation matters. It aims to improve operational efficiency and safety, encourage the exchange of information, and promote understanding of business aviation among government and airport authorities. The ABAA is a member of the International Business Aviation Council. BOEING 100 North Riverside Chicago Illinois 60606 USA Tel: +1 312 544 2000 Boeing Business Jets PO Box 3707 MC 1E-77 Seattle WA 98124-2207 USA Tel: +1 206 655 9800 Fax: +1 206 955 9800 Web site: www.boeing.com/commercial/bbj Boeing Australia 363 Adelaide Street PO Box 767 Brisbane QLD 4001 Australia Tel: +61 7 3306 3000 Fax: +61 & 3306 3114 Web site: www.boeing.com.au Boeing China Ekavaj Amornvivat (AsBAA Executive Assistant) Xjet 803 Liberty Square Building 287 Silom Road Bangkok 10500 Thailand Phone: +66 2 631 1974 Fax: +66 2 631 1947 2925 Briarpark Drive 7th Floor Houston TX 77042 USA among government bodies and airport authorities. AsBAA intends to promote better relations with regulatory and other agencies, attaining wider recognition of business aviation’s contribution to national economies. Membership currently numbers about 30 companies involved in business aviation in the Asia-Pacific region. The Asian Business Aviation Association (AsBAA), incorporated in Hong Kong, aims to promote the aviation interests of entities throughout Asia that operate or support the operations of corporate aircraft. The organization intends to foster the highest degree of operational efficiency and safety, cultivating closer relations and the exchange of ideas between members, and to promote an understanding of business aviation www.asianaviation.com Tower A, 16/F Pacific Century Place No. 2A Worker’s Stadium Road North Chaoyang District Beijing 100027 China Tel: +86 10 6539 2299 Fax: +86 10 6539 1000 Web site: www.boeingchina.com Boeing Japan AIG Building 12F 1-1-3 Marunouchi Chiyoda-ku Tokyo 100-0005 Japan Tel: +81 3 5223 1234 Fax: +81 3 5223 1900 Web site: www.boeing.jp Asian Aviation May 2007 15 I F I T H A D I T S W A Y, I T W O U L D N E V E R L A N D. The executive jet that seems almost eager to fly: That’s the Legacy 600® by Embraer. With 99.7% dispatch availability, proven in 10 million flight hours and counting, the Legacy 600 is forever ready to meet your travel demands, however unpredictable. Once you’ve experienced its spacious cabin and sumptuous comfort, you may want to stay aloft, too. Latin America +55 12 3927 3399 – U.S., Canada and Caribbean +1 954 359 5387 – Europe and Africa +33 1 49 38 44 44 China +86 10 6505 5045 – Asia Pacific +65 6734 4321 – EmbraerExecutiveJets.com BUSINESS AVIATION DIRECTORY STRAPLINE other services. The company also has 50 years’ experience with ground handling for government and other VVIP flights. DASSAULT FALCON JET Teterboro Airport Box 2000 South Hackensack NJ 07606 USA Tel: +1 201 440 6700 Web site: www.dassaultfalcon.com Dassault Falcon China Sonangol is the first named customer in China for the Airbus Corporate Jetliner. Boeing Korea 18th Floor, Hanmi Building #39 Da-dong Chung-ku Seoul 100-180 South Korea Tel: +82 2 773 2491 Fax: +82 2 773 2490 Web site: www.boeing.co.kr US-based commercial aviation giant Boeing entered the corporate aviation market in 1996 with its Seattle-based joint venture with General Electric, Boeing Business Jets. The venture was a response to market demand for larger, more capable business aircraft capable of flying further than 6,000 nautical miles. The result was the 737-700based BBJ, which has now been joined by the larger BBJ 2, derived from the 737-800 and offering 25 percent more cabin space and twice as much cargo capacity. As of late 2006, Boeing had gathered orders for 99 BBJs, 14 BBJ 2s, two BBJ 3s and nine widebody VIP jets. About 40 percent of the customers are private individuals, 37 percent are heads of state and the rest are corporate and charter operators. Boeing Business Jets has now said it’s also exploring a convertible cargo aircraft called the BBJ C, derived from the commercial 737-700C, with a go-ahead possible this year. BOMBARDIER AEROSPACE 400 Cote-Vertu Road West Dorval Quebec Canada H4S 1Y9 Tel: +1 514 855 5000 Fax: +1 514 855 7401 Web site: www.bombardier.com Hong Kong Office Room 2003A-4 Central Plaza 18 Harbour Road Wanchai Hong Kong Tel: +852 2827 6464 Singapore Office 583 Orchard Road The Forum number 15-01 Singapore 238884 Tel: +65 9155 4701 New Delhi Office B-307 Somdutt Chambers-1 5 Bhikaji Cama Place New Delhi-110066 India Tel: +91 11 2618 0340 Fax: +91 11 2618 6651 The business aircraft division of Canada’s Bombardier Aerospace today builds three families of high-performance business jets: Learjet in the light to midsize categories, Challenger in the super-midsize to large class, and the super-large to ultra-long range Global family. More than 100 Bombardier corporate jets are now based in the Asia-Pacific region, which the manufacturer says gives it a dominant 31 percent share of the regional market. Bombardier Business Aircraft also maintains close industrial relationships with Asian aerospace companies such as Aerospace Industrial Development (AIDC) in Taiwan, Japan’s Mitsubishi Heavy Industries (MHI), Hawker de Havilland in Australia and Satyam in India. Bombardier reported a 7.6 percent increase in business jet deliveries in fiscal year 2007. Asia-Pacific, Australia & New Zealand Sales 235 Arcadia Road 07/04 Argos Singapore 289843 Tel: +65 6468 8023 Fax: +65 6468 4243 French manufacturer Dassault Aviation has been producing the Falcon family of business jets since 1963, when the Falcon 20 was derived from the Mystere fighter. The current range of aircraft marketed by Dassault’s US-based Dassault Falcon Jet unit covers the spectrum from the Falcon 50EX midsize trijet, to the new, widebody Falcon 7X trijet. The company achieved a record 123 orders in 2005, beating the previous record by 25 percent and achieving the first sale of a new Falcon in China, when state-owned financial services company Citic ordered a Falcon 900DX. Dassault has gathered more than 125 orders for the 7X to date, and expects to deliver 80 Falcons in 2007. CESSNA AIRCRAFT DEER JET PO Box 7706 Wichita KS 67277 USA 6F Macrolink Building 18 Daojiayuan Dongsihuan Chaoyang District Beijing 100025 China Tel: +1 316 517 6056 Fax: +1 316 517 7812 Web site: www.cessna.com Since Cessna’s founding in 1927, the US manufacturer has grown into a global leader in general aviation. The company’s products include the Citation range of jets, from the single-pilot Mustang to the Citation X – the world’s fastest business jet. The company has been winning increasing sales in the Asia-Pacific region, reporting robust orders in China and consistent growth in Australia, the manufacturer’s biggest market in the region. The company says it anticipates more CJ2+ and CJ3 sales in Australia as existing turboprop or piston aircraft operators upgrade to jets, and more Citation XLS and Sovereign sales across the Asia-Pacific as inter-country business travel increases. CHINA EASTERN EXECUTIVE AIR 2550 Hongqiao Road Shanghai 200335 China Tel: +86 10 6506 8300 Fax: +86 10 6506 8221 Web site: www.deerjet.com Deer Jet is a Beijing-based business charter operator, founded in 1995 as a subsidiary of the Hainan Airlines Group, China’s fourthlargest commercial airline. The company says it has the largest charter fleet in Asia, comprising medium range Raytheon Hawker 800XPs and long-range Gulfstream IVs. The company also manages a Raytheon Beech Premier I jet on behalf of a Chinese client, and was the first Chinese company to become a member of the NBAA and its European counterpart, the EBAA. Deer Jet now also offers ground handling services for business jets, including obtaining overflight and landing permission, fuelling, lodging, catering, weather and other services. ECLIPSE AVIATION Tel: +86 21 6268 0102 Fax: +86 21 6268 6039 Web site: www.ceaea.com China Eastern Executive Air is a whollyowned subsidiary of China Eastern Airlines, established in 1995, which provides ground handling services to business aircraft operators at 44 locations in China. The company helps operators with aircraft parking, changing slot times, obtaining overflight permits, fuel arrangements, baggage handling and flight plans, among 2503 Clark Carr Loop SE Albuquerque NM 87106 Tel: +1 505 245 7555 Fax: +1 505 241 8800 Web site: www.eclipseaviation.com Founded in 1998, Eclipse Aviation is a pioneer in the field of Very Light Jets. The company’s Eclipse 500 aircraft has already won 2,500 orders, with 10 percent of customers based in the US, and the first aircraft were delivered to customers in December. The first delivery in Asia will be to a customer in Singapore this year. www.asianaviation.com EMBRAER Avenida Brigadeiro Faria Lima, 2.170 12227-901 Sao Jose dos Campos Sao Paolo Brazil Tel: +55 12 3927 1000 Fax: +55 12 3927 6600 Ext. 1448 Web site: www.embraer.com Embraer China Suite 3618 China World Tower 1 Chaoyang District Beijing 100004 China Tel: +86 10 6505 5045 Fax: +86 10 6505 9866 Embraer Singapore 391B Orchard Road #15-01 Ngee Ann City – Tower B Singapore 238874 Tel: +65 6734 4321 Fax: +65 6734 8255 Brazil’s Embraer produces a range of executive aircraft from the four-passenger Phenom 100 Very Light Jet (VLJ) to the new Lineage 1000, a corporate derivative of the Embraer 190 regional airliner, accommodating 13-19 occupants. The manufacturer has forecast increasing demand from the Asia-Pacific region, growing at an average 9.1 percent a year and accounting for 250 deliveries in the next decade. Embraer announced in April it would boost its Asia-Pacific presence with a US$40 million investment this year, encompassing commercial agreements and collaboration with industrial partners in the region. EXECUJET Business Aviation Centre PO Box 1 8058 Zurich Airport Switzerland Tel: +41 44 876 5576 Fax: +41 44 876 5577 Web site: www.execujet.net ExecuJet Australia Hangar 394 Ross Smith Avenue Mascot KSA NSW 2020 Australia Tel: +61 2 9693 0800 Fax: +61 2 9693 0880 Web site: www.execujet.com.au Founded in 1991, ExecuJet offers aircraft sales, charter, management, maintenance and aviation services from its nine operating bases around the world. The company is primarily a sales organisation, with an exclusive alliance with the business aircraft arm of Canada’s Bombardier Aerospace. ExecuJet is the sole distributor of Learjet, Challenger and Global family aircraft in more than 30 countries. The company is also a sales and support centre for the Pilatus PC-12 and the worldwide sales agent for the Grob SPn utility jet. ExecuJet’s charter fleet numbers more than 30 aircraft, from the ultra-long range Bombardier Global Express to the Raytheon Beech King Air 200 turboprop. The company’s maintenance arm is certificated to service Gulfstream, Dassault Falcon and Cessna Citation aircraft as well as Bombardier types. Asian Aviation May 2007 17 BUSINESS AVIATION DIECTORY STRAPLINE FLEXJET ASIA-PACIFIC 400 Cote-Vertu Road West Dorval Quebec Canada H4S 1Y9 Tel: +1 888 880 3539 Fax: +1 514 885 7802 Web site: www.flexjet.com Established in 1995, Bombardier’s Flexjet is now the world’s third-largest fractional ownership programme, with 620 shareholders and at least 16 percent global market share. The company operates a fleet of 84 business jets, and plans to add another 50 new aircraft in the next three years. Types operated include Learjet 40XR, Learjet 45XR, Learjet 60XR, Challenger 300 and Challenger 604. Flexjet manages aircraft maintenance, crews, hangars, fuel and insurance on behalf of its clients. GLOBAL WINGS Level 9 Shin Osaka Prime Tower 6-1-1 Nishinakajima Yodogawa-ku Osaka 532-0011 Japan Tel: +81 6 6307 5599 Fax: +81 6 6309 0616 Web site: www.gwings.net Japan-based Global Wings is a business charter and aircraft handling company, which received its first Japan-registered Bombardier Learjet 45XR aircraft in April 2006, joining another aircraft of the same type based in Beijing. The company provides international charter services between northern Asian cities. Global Wings also provides handling services at Osaka’s Kansai airport, including flight support, ground transportation, travel information, accommodation and catering. GROB AEROSPACE 88 Queensway Central Hong Kong Asia-Pacific Regional Office 101 Thomson Road #11-04 United Square 307591 Singapore Founded in 1958, General Dynamics subsidiary Gulfstream Aerospace has today produced more than 1,500 aircraft for customers around the world. Its products range from the eight-passenger G150, which entered service in August last year, to the ultra-long range G550, which can accommodate as many as 18. The company has strengthened its presence in the AsiaPacific with the sale of 16 business jets in the region in 2005, including the first G450 and the second G200 to operate in China, both to Hong Kong-based customers. The company has said it plans to bolster its Asia-Pacific product support capabilities to support the region’s growing fleet, which has doubled in size to 44 aircraft since 2000. Plant 1 9709 E Central Wichita Kansas 67206 USA Tel: +1 316 676 7111 Web site: www.hawkerbeechcraft.com North Asia Sales Beijing Lufthansa Centre Suite C811B 50 Liangmagiao Road Chaoyang District Beijing 100016 China Tel: +49 8268 998-0 Fax: +49 8268 998-114 Web site: www.grob-aerospace.de The German all-composite aircraft maker entered the business aviation market with its four-passenger Ranger G160 turboprop, and is now developing the eight-seat SPn light jet. The company suffered a setback with the fatal crash of the second SPn prototype in November 2006, but has now restarted the flight test programme and expects to announce substantial orders from two US customers by the end of the third quarter of this year. The aircraft is being distributed in Asia by ExecuJet. Southeast Asia, Australia & Pacific Rim 7440 Aviation Place Dallas TX 75235 USA Tel: +1 214 902 3048 Fax: +1 912 965 4575 Web site: www.gulfstream.com Northeast Asia & Philippines Office Suite 1007, 10/F Two Pacific Place 18 Asian Aviation May 2007 Hawker Beechcraft Charter & Management, formerly Raytheon Aircraft Charter & Management, is one of the biggest USbased aircraft charter companies. The company operates a range of aircraft from Beechcraft King Air 200 turboprops to large Hawker 800XP jets. The fleet also includes Bombardier products such as the Cessna Citation and Challenger 604 jets. The company also offers aircraft management services, including a scheme where a customer’s aircraft is used for charter flights when not needed by the owner, helping offset the cost of ownership. HAWKER PACIFIC 112 Airport Avenue Bankstown Airport NSW 2200 Australia Tel: +61 2 9708 8555 Fax: +61 2 9790 5238 Web site: www.hawkerpacific.com.au HAWKER BEECHCRAFT Tel: +86 10 6463 8080 Fax: +86 10 6463 8019 PO Box 85 Wichita Kansas 67201-0085 USA Tel: +1 800 519 6283 Web site: www.raytheonaircraftcharter.com Tel: +65 6256 8301 Fax: +65 6256 1556 Lettenbachstr. 9 86874 Tussenhausen-Mattsies Germany GULFSTREAM AEROSPACE HAWKER BEECHCRAFT CHARTER & MANAGEMENT Tel: +852 2918 1600 Fax: +852 2918 1633 Suite 18 12 Tryon Road PO Box 42 Lindfield NSW 2070 Australia Hawker Pacific offers civil and military aviation sales and product support. The company has been a sales representative for Hawker Beechcraft aircraft since 1959, offering in-house modification, customisation and management of the aircraft. The product range covers Hawker jets such as the Horizon through to Beechcraft pistons such as the Beech Baron 58. The company’s maintenance, repair and overhaul operation offers line through heavy maintenance at locations throughout Australasia and the Pacific Rim. Hawker Pacific Aircraft Management & Charter offers charter services with a mixed fleet of 14 aircraft, including five jets – four Cessna Citations and a Beechjet 400A. The company has a pool of 16 crew, and offers ground handling services through its Hawker Pacific Flight Centre. HUNT & PALMER INTERNATIONAL The Tower Goff’s Park Road Crawley West Sussex RH11 8XX Tel: +61 2 9416 0477 Fax: +61 2 9416 0478 Hawker Beechcraft is the new name adopted by Raytheon Aircraft after its parent, Raytheon, sold the manufacturer to GS Capital Partners and Onex early this year. The US-based manufacturer was originally established in 1932 and makes business and special mission aircraft. Hawker Beechcraft has two AsiaPacific sales offices: in Beijng, China, and Sydney, Australia. The company says its Beechcraft and Hawker aircraft products command a 51 percent share of the total business turbine market in Asia, with an increasing share in countries such as China, India, Japan, the Philippines, and Thailand. Beechcraft and Hawker products also boast a 40 percent market share in Australia. There are over 400 Beechcraft and Hawker business aircraft flying in Asia-Pacific and Australia today. Tel: +44 1293 558 000 Fax: +44 1293 558 099 Web site: www.huntpalmer.com Australian Office 25 Ingles Circuit Arundel Gold Coast 4214 QLD Australia Tel: +61 7 5571 6928 Fax: +61 7 5571 6928 Hunt & Palmer, founded in 1986, has grown to become Europe’s biggest independentlyowned aircraft broker. The company offers charter services using a fleet that includes Airbus A319CJ, Boeing BBJ, Bombardier Challenger 604, Dassault Falcon 2000 and Gulfstream 5 jets among other fixed- and www.asianaviation.com rotary-wing types. The company also offers services using commercial airliners and regional aircraft. Hunt & Palmer opened an office in Hong Kong in May 2006, anticipating future expansion in China, where the company foresees strong demand for charter aircraft. Hunt & Palmer also has offices in Singapore and Australia. INTERNATIONAL BUSINESS AVIATION COUNCIL Suite 16.33 999 Rue University Montreal Quebec H3C 5J9 Canada Tel: +1 514 954 8054 Fax: +1 514 954 6161 Web site: www.ibac.org The International Business Aviation Council (IBAC), founded in 1981, is a non-profit, non-governmental association representing the interests of business aviation in international policy and regulatory forums. IBAC attends meetings of the International Civil Aviation Organisation, and liaises with other international groups such as the International Air Transport Association and the International Federation of Airline Pilots Associations. IBAC’s Asia-Pacific members include the Australian Business Aircraft Association and the Japan Business Aviation Association. JAPAN AVIATION SERVICE K-6 Building 2F 1-9-6 Haneda Airport Ohtaku Tokyo 144-0041 Tel: +81 3 3747 0261 Fax: +81 3 3747 0265 Web site: www.jas-fbo.co.jp Japan Aviation Service (JAS) is a corporate aircraft handling specialist with more than 20 years’ experience, offering its services at Tokyo’s Haneda and Narita, OsakaKansai and New Chitose airports. Services include flight planning, overflight and landing permits, slot arrangements, weather briefing and full ground support. Customers have included heads of state including the Sultan of Brunei, the President of the Philippines and the Swedish Prime Minister. The company is also a preferred vendor for several air ambulance companies. JAPAN BUSINESS AVIATION ASSOCIATION C/O Japan Aerospace Pola Aoyama Building 9F 2-5-17 Minamiaoyama Minato-Ku Tokyo Japan 107-0062 Tel: 81-3-5772-6738 Fax: 81-3-5785-5965 Web site: www.jbaa.org The Japan Business Aviation Association (JBAA) was first formed in 1996 to represent the interests of manufacturers, trading companies, ground handling agents and other groups involved in business aviation. During the first decade of its existence, the organisation has succeeded in promoting the acceptance and understanding of business aviation among government officials and airport authorities. The JBAA is a member of the International Business Aviation Council. Join the success Do you want a partner who is able to provide blended on-site support with your own teams and an airline solution provider operating in your time zone? Do you want reasonably priced products? Lufthansa Systems Asia Pacific Area Management 390 Orchard Road #07-03/04 Palais Renaissance Singapore 238871 Tel: +65 6514 1330 Fax: +65 6737 1775 info.asiapacific@LHsystems.com.sg www.LHsystems.com If so, we are the perfect partner for you. Our experts design state of the art solutions to improve your business results, and meet the growing needs for scalability and flexibility. This allows you to react more quickly, as you continually adapt your own business models. With on-the-spot support and local production sites in Asia Pacific we are able to offer you our products at affordable prices. Our excellence has been proven worldwide and by a large number of Asian carriers who have already teamed up with us. We would be very proud if you would join us as well. BUSINESS AVIATION DIECTORY STRAPLINE JET AVIATION PO Box 586 CH-8034 Zurich Switzerland Tel: +41 58 158 8787 Fax: +41 58 158 8785 Web site: www.jetaviation.com First Floor, Hong Kong Business Aviation Center 12 South Perimeter Road Hong Kong International Airport Lantau Hong Kong Tel: +852 2215 3833 Fax: +852 2215 3733 Jet Aviation Singapore 1075 West Camp Road Seletar Airport Singapore 797800 Tel: +65 6481 5311 Fax: +65 6481 8336 Jet Aviation is a global business aviation service company originally founded in Switzerland in 1967. It provides maintenance, completions, engineering services, aircraft sales, charter, management and aviation staffing, and operates from 60 locations around the world. The company’s charter divisions operate a combined fleet of more than 170 aircraft. In Asia, the company operates a fleet including Bombardier Learjet 45, Gulfstream 200, Bombardier Challenger 604 and Bombardier Global Express aircraft. JETEX EXPRESS FLIGHT SUPPORT PO Box 54698 Dubai United Arab Emirates Tel: + 971 4 268 9910 Fax: + 971 4 268 9920 Web site: www.jetex.aero Dubai-based Jetex provides flight support services to international customers, including obtaining overflight and landing clearances, ground support, jet fuel discounts, flight planning, weather services, air ambulance services and executive charter. The fleet includes a 14-seat Dassault Falcon 900B, a Boeing 727-2k5 Adv in a VIP configuration, a Douglas DC-862 and BAC 111 jetliners. METROJET 9/F China Hong Kong Tower 8-12 Hennessy Road Wanchai Hong Kong Tel: +852 2169 6556 Fax: +852 2596 0359 Web site: www.metrojet.com Established in 1995, Metrojet is a Hong Kong-based provider of corporate aviation services and operator of non-scheduled flights within Asia, serving major cities and secondary airports. The company operates Gulfstream G200 aircraft, and its aircraft management programme is tailored for owners who wish to avoid the complications of managing aircraft operations in-house. Metrojet’s services include flight operations, 20 Asian Aviation May 2007 provision of flight crew and maintenance, aviation accounting and administration, and pre-delivery assistance. NATIONAL BUSINESS AVIATION ASSOCIATION on behalf of a Japanese customer late in 2005, and was planning to apply for its own Japanese air operator’s certificate this year. PILATUS AIRCRAFT PO Box 992 6371 Stans Switzerland 1200, 18th Street NW Suite 400 Washington DC 20036-2527 USA Tel: +41 41 619 6111 Fax: +41 41 610 9230 Web site: www.pilatus-aircraft.com Tel: +1 202 783 9000 Fax: +1 202 331 8364 Web site: www.nbaa.org Pilatus Australia Founded in 1947, the US-based National Business Aviation Association (NBAA) promotes the interests of organisations using business aircraft in the United States and worldwide. The association’s goals are: to enhance safety, efficiency and professionalism; to provide members with operational assistance; to shape public policy; and to project a positive image of the industry. The NBAA is the organiser of the world’s biggest civil aviation trade show, the NBAA Annual Meeting & Convention, as well as sponsoring international shows such as the Asian Business Aviation Conference & Exhibition (ABACE). NETJETS 17 James Schofield Drive Adelaide Airport Sa 5950 Australia Tel: +61 8 8234 4433 Fax: +61 8 8234 4499 Pilatus is the world market leader in singleengine turboprop aircraft manufacture. Its products include the PC-12, which accommodates six to eight passengers in its executive configuration. The aircraft offers an operational range of up to 2,172 nautical miles. The aircraft had a record year in 2005, with 80 deliveries, including two in Australia. More than 600 PC-12s are in operation today around the world. SHANGHAI AIRLINES 581 Main Street Woodbridge NJ 07095 USA Business Jet Operation Department 18F, No. 212 Jiangning Road Shanghai China Tel: +1 732 326 3700 Fax: +1 732 326 5823 Web site: www.netjets.com Tel: +86 21 6255 5000 Fax: +86 21 6255 5333 Web site: www.shanghai-air.com NetJets was founded in 1964 as Executive Jet Aviation, the world’s first private business jet charter and aircraft management company. In 1986, the company created the first ever fractional ownership scheme, the NetJets programme. The company was acquired in 1998 by Berkshire Hathaway Chairman and Chief Executive Warren Buffett. NetJets runs a fleet of more than 420 aircraft worldwide, operating 300,000 flights to 140 countries in 2005. The fleet includes light jets from the Cessna Citation range and Raytheon’s Hawker 400XP, midsize jets such as the Hawker 1000 and Gulfstream G200, and large aircraft such as the Boeing BBJ and Gulfstream 550. Shanghai Airlines’ business aviation arm offers charter flights using an eight-seat Raytheon Hawker 800XP midsize jet. The company is planning to expand, with a new, 2,000 square metre business aviation facility at Shanghai’s Hongqiao airport, ten times larger than its previous 200 square metre fixed base operation. The facility will include a large VIP lounge and two business jet hangars. Shanghai Airlines is campaigning for the government to allow international flights from the airport, which is near downtown Shanghai. Hongqiao’s old customs facilities closed with the opening of the newer Pudong airport. SINO PRIVATE AVIATION Hong Kong NEWJETCO Tel: +852 2868 6896 Fax: +852 2868 0468 Web site: www.spal.com.hk Green Hills Kamiyama 3F 1-5 Kamiyamacho Shibuya-ku Tokyo 150-0047 Japan Tel: +81 3 3481 5916 Fax: +81 3 4496 4863 Web site: www.newjetco.com Tokyo-based business jet management and charter company Newjetco manages five aircraft in Europe and three in Russia. The company says it wants to keep its operation small, catering for a select client base, geared towards private individuals. Two of the aircraft in its care – a Gulfstream III and a Bombardier Challenger 604 – are in commercial use and flew about 650 charter hours last year. The company was due to take over the management of a Dassault Falcon jet Hong Kong-based Sino Private is the sales and marketing representative for Bombardier aircraft in mainland China, Hong Kong and Macau. The company markets Bombardier’s Learjet, Challenger and Global families of business jets, as well as selling and leasing pre-owned aircraft. Sino Private also helps operators obtain air operators certificates, leases regional aircraft and helicopters, and offers after-sales support. Sino Private in 2002 became the AsiaPacific launch customer for Bombardier’s Global 5000 business jet. SKYJET Bombardier Skyjet Corporate Headquarters 3400 Waterview Parkway www.asianaviation.com Suite 400 Richardson TX 75080 USA Tel: +1 888 275 9538 Fax: +1 469 791 4470 Web site: www.skyjet.com Bombardier’s Skyjet unit specialises in private business jet charters, offering its Skyjet Card to frequent private jet travellers, or pay-as-you-go services to customers who fly less than 25 hours a year. The Skyjet Card gives members a choice of 25, 50 or 100 flight hours in a preferred size of aircraft, with guaranteed availability on 12 hours’ notice. The company also offers the option of earning credit towards whole or fractional aircraft ownership. Skyjet’s fleet includes Bombardier Learjet, Challenger and Global products as well as Cessna Citation, Dassault Falcon, Gulfstream and Raytheon types. TAG AVIATION 20 Chemin des Papillons PO Box 36 1215 Geneva 15 Airport Switzerland Tel: +41 22 717 0000 Fax: +41 22 717 0007 Web site: www.tagaviation.com TAG AVIATION ASIA 7th Floor Harcourt House 39 Gloucester Road Wanchai Hong Kong Tel: +852 2528 1511 Fax: +852 2528 1979 TAG Aviation provides aircraft management, consulting, acquisition and sales, as well as arranging charter services. The company manages more than 150 aircraft and is the largest business jet operator in Europe. TAG is an authorised Bombardier and Dassault repair station, offering heavy maintenance and providing handling services at its base in Geneva and at Berlin’s Tempelhof airport. The company opened its Hong Kong office in December, with its first managed aircraft – a Dassault Falcon 2000 based in Macau – and announced plans to expand its services into Asia, eventually to include charter services. UNIVERSAL WEATHER & AVIATION 8787 Tallyho Houston TX 77061-3429 Tel: +1 713 944 1622 Ext. 3300 Fax: +1 713 943 4674 Web site: www.univ-wea.com Universal Weather & Aviation began providing weather briefings to corporate aviation operators in 1959, and has now expanded to provide global trip support services virtually anywhere around the world. The company offers a fuel plan, online trip planning tools and a global network of ground handling partners. The company also offers communications services through its Uvdatalink product. INDUSTRY OUTLOOK Emirates’ Clark shows 2020 foresight With Middle Eastern airlines reaping the benefits of a boom in the regional industry, Tim Clark recently addressed London’s Royal Aeronautical Society to share his views on the industry’s future, writes Ian Goold. Emirates’ Clark foresees the emergence of “super-carriers” that will need proportionally large hubs to operate from. A lack of resistance to environmental pressures and a shortage of highcapacity airports are major factors that could inhibit the continued growth of commercial aviation, according to Tim Clark, president of Dubai-based Emirates Airline. Furthermore, future expansion may be compromised by inadequate air-traffic control (ATC) infrastructure and continued fuelprice volatility. The air-transport industry must challenge gathering misconceptions about its impact on the world, and governments must allow airlines to fly the most fuel-efficient routes, while also providing sufficient capacity to accommodate a new generation of larger jetliners, Clark says. Considering how airline operations are likely to be reshaped by the end of the next decade, Clark underlines the “shift to a new civil-aviation paradigm, driven by globalisation” that is taking place – and accelerating at an alarming rate. “Those positioned and structured to grasp the opportunities this paradigm shift is engendering will be the winners,” he says. “Equally clear is the fact that, short of major global traumas, the industry must metamorphose at the same pace, leaving some players faced, at best, with marginalisation, or at worst, elimination.” Delivering the Royal Aeronautical Society annual Lindbergh lecture in London, Clark concluded: “Network carriers that pay lip service to globalisation but fail to adjust their business models accordingly will not, in my opinion, remain in business in the medium term.” Pariah syndrome Claiming to have no wish to belittle environmental concerns and the “seemingly incontrovertible evidence” of the damage done by man-made emissions, Clark suggests that the industry must do “far more to help itself, or face the ‘pariah syndrome’”, where airlines are tolerated but not really wanted. “There is hard evidence of greenhouse gas increase, [but] the link [with] the earth’s temperature increase is not wholly proven; solar activity must also be taken into account,” he says. Recalling fears in the 1970s that the Earth was cooling, Clark says a balanced approach to climate change requires consideration of where resources are best allocated to limit emissions. Such analysis reveals that the “greatest benefit” derives not by restricting aviation growth, but by focusing on activities such as heavy industry, power generation, and road transport. “India and China are building 650 coal-fired power plants, the combined CO2 emissions of which are five times the total savings of the Kyoto accords,” says Clark, who claims that commercial aviation “is being damaged almost on a daily basis” and must fight back. Citing the recent doubling of the UK’s passenger tax, environmentalists’ proposals to ban air-freighting of organic foods, and the extension of the European Union emissions trading scheme to the region’s airlines, the Emirates official says there is a clear imperative facing carriers: “We need to set the record straight.” Clark says there has been a 70 percent improvement in relative fuel use per seat since the late 1950s. “Between 1957 and 2007, fuel burn per unit of payload [also] has reduced by approximately 65 percent,” he says. By 2025, there should be a further 20 percent improvement, with increases in efficiency from engine technology and advances in materials, aerodynamics, and construction techniques. The new generation of jets will furthermore bring with it a 4050 percent reduction in aircraft maintenance cost levels. “The message is clear: 21st-century jets will be the most fuel- and emissionefficient form of transport; where airlines can facilitate a shift from road transport to air, emissions will fall in absolute terms,” he says. Airport shortage Commercial aviation growth also could be compromised by a shortage of very large airports. “As it becomes increasingly obvious that aircraft gauge will increase, so airports’ abilities to accommodate stretched Airbus A380s or Boeing 747s will come under severe pressure,” says Clark. He predicts the emergence of “super-carriers”, either growing organically, like Emirates, or through merger and acquisition, like Air France/KLM. Such operators would largely rely on the political will of their governments to develop their primary hubs, a good example of which has been Emirates’ experience. “Dubai has recognized that provision of appropriate infrastructure is necessary for sustained economic growth,” Clark says. ATC systems need to undergo major structural changes if they are not to inhibit growth as they do now, particularly in Europe, says Clark. “If governments can be convinced to sort out ATC systems and allow airlines to operate corridors that are meaningful, then we could witness a 20 percent reduction in fuel used,” he says. In addition, Clark predicts that fuelprice volatility will continue to plague airline profitability and could inhibit growth, because operating margins and rates of return will continue to be compromised. “[This] is causing the industry to seek further efficiencies to deal not only with fuel-cost growth, but [also] with declining yields in real terms and competition from the low-cost carrier sector,” he says. “The upside, then, is that carriers will be leaner www.asianaviation.com and meaner in the future. Witness how the recent tripling of fuel cost has not caused the industry recessions that followed previous fuel hikes with monotonous regularity.” Clark cites the primary factors driving development: “Perhaps the most potent catalyst of change is the online revolution. In many countries it has become second nature to check products, including travel, prices, and availability before buying and flying. “A second primary driver is the emergence of colossal markets, primarily India and China. Africa, South America, Russia, and some south-east Asian countries are energising economically at the same pace. The implications for air travel are obvious, and all of us are rushing to serve the new markets.” Clark identifies the stimulating role of air-transport liberalization, or deregulation, from which travellers, shippers, and consumers all benefit through increased competition. Change drivers Finally, the Emirates president says he sees modern jetliners as drivers of change. “Manufacturers have given us much better, faster, more fuelefficient, environmentally friendlier aircraft that travel further and carry more at significantly lower costs,” Clark says. Clark declares himself “hugely optimistic” about the future of air transport in “difficult but exciting times” with which the industry must move. “The economic landscape is changing rapidly and is not for the faint-hearted. [Simultaneously] environmental challenges must be addressed head on. Those carriers which attune their business models to the realities of the new global economy will survive and prosper,” he concludes. Asian Aviation May 2007 21 PROGRAMME UPDATE Japan Airlines is one of almost 50 customers that have ordered almost 550 Boeing 787s to date. 787 prepares for July roll-out Boeing has begun final assembly of the first 787 as orders and commitments from almost 50 customers approached the 550 mark. Programme vice-president and general manager Mike Bair tells Ian Goold how the US manufacturer is progressing with development of its replacement for the 757 and 767 twinjets. Preparations for final assembly of the first Boeing 787 continued in late April with the delivery of the jetliner’s tailplane from Italian programme partner Alenia. The component arrived as Boeing began to accelerate production of major parts in anticipation of an 8 July rollout, first flight at the end of August or beginning of September, and initial deliveries in May 2008. “We’re targeting first flight late in August because the airplane is ready to fly [only] when the airplane is ready to fly,” programme Vice-President and General Manager Mike Bair said in late March. “The last thing you want to do is fix a first-flight date and [then] do something stupid trying to make it. So, we have about a month’s window around the end of August to make that happen.” Other 787 suppliers have been providing initial assemblies to Boeing for several months, with some production centres having already completed items for the first four aircraft. “We’ve begun assembly on all major structural elements for the first 787 – in some cases we’re up to line [number] five,” Bair said. “[Airframe] sections 44 and 46 at Alenia are coming along nicely; sections 47 and 48 at Vought are in major assembly. Main landing-gear assembly at Messier-Dowty is coming along, as well as the main wing box from Mitsubishi Heavy Industries. And we’re starting major assembly on a lot of the follow-on aircraft.” Boeing has also received the 787 flight-test crew escape door from 22 Asian Aviation May 2007 Latecoere in France and the first wingtips from Korean Air’s Aerospace Division. “You’ll start to see big pieces of components showing up in Everett … toward the end of [March], in April, and then for the next 30 years or more,” Bair said. That is not to suggest that the 787’s manufacturing development has been trouble-free, since Boeing has had to send a number of working parties to partners’ factories to expedite supplies, and has also been accepting unfinished assemblies in order to meet schedules. Bair disclosed that up to 150 Boeing employees had been parachuted into various suppliers to help with troubleshooting. Alenia’s challenges Alenia has been one programme member experiencing early challenges, although Bair has given them the benefit of any doubt. “To be fair to Alenia, they’re doing a great a job now,” he said. “Their primary issue is they were late getting the [new-build] factory set up. They were in catch-up mode [but] they’re making great progress.” Acknowledging that some schedules for initial major assemblies provided by partners have gone awry, Bair confirms that some activity – dubbed “travelled work” – is being completed later than anticipated in the production process and at unplanned locations. “That work is moving around [and] we have resources wherever the work ends up,” Bair said. “The vast majority of travelled work is going to be systems installation that will end up at final [assembly], rather than at major structural suppliers.” In addition, Boeing has prepared for late challenges by hiring and training “hundreds” of mechanics “ready to do whatever they need to do [to] push the thing through final assembly,” he added. Boeing says that provisions built into the production schedule to allow for problems with the 787’s composite components – which comprise more than half of the airframe structure – have been largely unnecessary. “We anticipated issues with some [composite fuselage] barrels – things like porosity, or areas that didn’t bond well,” Bair said. “Lots of things can happen and there’s lots of ways to repair it.” The biggest problems have been mundane things, he said, such as an operator of a numerically controlled machine overriding its programming, “but the overall quality has just been phenomenal.” Boeing is “very pleased” with assembly of composite structures in the 787 test programme, the largest Boeing has ever conducted. The programme has yielded “no real surprises,” according to the programme chief. “Every single big piece is out of the autoclave process. The parts are better than we anticipated,” he said. Bair said that, by late March, more than 75 percent of the systems hardware required for the first aircraft had been shipped to suppliers for installation on major assemblies. During April and May, five major systems laboratories are involved www.asianaviation.com in “serious integration testing [to] make sure the various components talk to each other and work together”, although the results are hard to predict. “Until you do it, you don’t really know,” said Bair. “You can always get surprised as a result of that integration testing. We’ll know a lot more when we get done with it. But there can always be [a surprise] waiting around the corner.” Wiring caution Conscious of the diff iculties experienced by Airbus with its A380 airliner, Boeing hopes to avoid surprises is in the 787’s 60 miles of electrical wiring – an element of aircraft design that “tends to be defined [late] and needed early” in the assembly process, according to the Bair. Given that the similarsized 767 has some 80-85 miles of wiring, and the 777 about 100 miles, Bair said the 787 system is “vastly simplified, which makes the job a lot more manageable”. Boeing is encouraged by the results of weight-reduction efforts on the aircraft, with the design about 98 percent complete. “We’ve taken out several percent [of the 220,000lb weight],” Bair said. “We’ve a little bit more to do, a plan in place, and we’re working our way through it. We’ve made some engineering changes, primarily just better optimisation of parts. [Initially] we had a fair number that weren’t as optimised for weight as we had hoped.” JSF UPDATE The changes are expected to yield “a fairly significant” drop in the aircraft’s weight, which is “coming in a little less than we anticipated,” said Bair. Boeing has identified areas not fully optimised for weight and has redesigned parts that needed it. “We’re marching our way down on our weight improvement plan,” he said. The 787 programme manager said the weight challenges have had little impact on the overall production schedule, but he identifies one other area of concern – albeit not one restricted to Boeing: a major challenge the company is fighting is with fasteners. “The fastener industry is stretched tighter than a rubber band because every airplane program is at [its] peak rate, or headed towards [it],” Bair said. “So we’re feeding the production system hand to mouth, but it’s not something that we haven’t seen in the past.” Boeing’s 787 weight estimates are based on engineering models, so the manufacturer won’t know how accurate they are “until you get the airplane on scales”, Bair explained. On previous designs, “we’ve had incidents where we’ve had 500600lb surprises because of the amount of sealant used. If you use a preponderant number of long-grip fasteners, you can add a surprising amount of weight,” he said. Following the 787’s maiden flight in about four months, Boeing will face an intense flight-test programme in preparation for the first delivery next May. Bair is unfazed by the prospect, but expects there will probably be challenges to overcome. “There’s nothing [that] keeps me up at night about flight testing, because we’re not into it yet,” he said. “But I’m certain that once we go into flight test, something will. We’ve always had some issue on every other programme.” “It’s always some unique thing, something about the design, or something that doesn’t work out exactly the way you anticipate and you have to figure out a way to fix it,” Bair said. He added that Boeing has “a great track record” of overcoming such obstacles. Ahead of the game Boeing has been “deeply engaged” with the US Federal Aviation Administration (FAA) on certification since very early in the genesis of the new jetliner. “This is a new way of putting airplanes together,” Bair said. “[We have to agree] everything we need to do to [certificate] the airplane. We’re way ahead, compared with past programmes, because we didn’t want to get into flight test and have some disagreement.” US Federal Airworthiness PROGRAMME UPDATE Regulations don’t differentiate between structural materials, so Boeing has to meet the same criteria as more conventional designs. The manufacturer has been gathering data from static- and fatigue-test vehicles, but has not yet decided how far to go in demonstrating the strength of the 787’s wing, perhaps fearing how the public could react to a broken structure. “You have to bend the wings up to take 150 percent of the worst load seen in service and hold it for 30 seconds,” according to Bair. “Then we’ll decide “We’re probably going to end up increasing the rate above what we anticipated, driven by intense market interest.” Some 112 aircraft will reach customers in the first two years, but Boeing is aware that it must be careful about increasing production too quickly. “Those are deliveries in 2008 and 2009,” Bair said. “We are starting to build those airplanes right now, and that’s the [period in which] you have to avoid temptation. The last thing that you want to do is get overly availability of raw materials will not be an early problem, it does face two concerns that could inhibit higher production rates than the initial 10per-month, single-line capacity. Tooling concerns “The real ‘issue’ tends to be major structural partners and that’s where the bulk of the tooling is for this airplane,” Bair said. The mandrels, tape-laying machines and autoclaves tend to be critical points in terms of output, and that’s where potential On 24 April, Boeing took delivery at its Everett plant of the Alenia-made horizontal stabiliser for the first 787. whether we want to break it; there’s a lot of pros and cons about whether we want to do that.” Despite a high initial delivery rate, Boeing has allowed for potential incorporation of changes to complete aircraft as a result of the certification programme. “We will have a fair number of airplanes on the tarmac finished, or being finished, while we are in the middle of certification,” he said. “By the time we get to certification, we’ll probably have 30 or 40 airplanes built or pretty well through the process, [but] in our delivery plans, we leave time for ‘change incorporation’. We obviously make assumptions about what we might find in order to decide how much time to put in, but we tend to [be] fairly conservative.” Boeing is continuing to consider 787 production rates, said Bair. aggressive in a [production] rate ramp up, because you can get buried – as we have seen in our history.” Past lessons Boeing has no intention of allowing the ‘profitless prosperity’ of the late 1990s – when Boeing overstretched its production lines, leading to skyrocketing costs – to happen again, Bair said. “We have to have, and continue to have, a stable plan,” he said. “Once you get past the first couple of years, it really becomes an investment decision: how much investment you want to make in capital equipment and facilities versus how big the market is and how long can you sustain whatever rates you’ve decide you want to go to,” said Bair. Although Boeing is confident that www.asianaviation.com investments are most likely to have to be made, he explained. Having analysed the early output, Boeing is pleased with the results. “If this wasn’t a new airplane, we would know exactly what to anticipate [from any partner] factories,” said Bair. “Because this production method is so new, we are carefully monitoring the first airplanes to be better educated when we make decisions about rates.” “The news is better than we anticipated,” he said. “The learning curve of improvements from one unit to another has been far greater than any of us imagined, which bodes well for our ability to get more airplanes out of the fixed capital that’s already in place.” Boeing will be hoping that such trends can be maintained “for 30 years or more”. Asian Aviation May 2007 23 AIRLINE IT Amadeus increases airline IT business With increased operating costs and the growth of low-fare carriers, airlines are being forced to look at every aspect of their business to remain competitive. Global distribution system provider Amadeus says its IT product could help them maintain an edge, writes Andrzej Jeziorski. Singapore Airlines may become the first Asian carrier to switch to Amadeus’ Altea customer management system. When Air France, Lufthansa and Iberia founded Amadeus in 1987, the carriers wanted the Madrid-based company to create a cutting-edge reservation system. The platform Amadeus eventually delivered incorporated a radical new idea for the times: it could be shared by airlines and travel agencies, pioneering the concept of seamless reservation services across all channels. Today, about 150 airlines use the reservation platform. The company has since broadened its product range significantly. In 2000, British Airways and Qantas asked Amadeus to develop a new-generation customer-management system (CMS), covering reservations, inventory and departure control. The result, after five years’ work and 300 million euros (US$406 million) investment, is the Altea CMS suite. “That was a major step into mainstream IT, providing an end-toend solution,” says Damian Hickey, Amadeus’s Bangkok-based vicepresident of airline business. “We have today 35 airlines which are contracted on that platform.” In the Asia-Pacific region, the main customer is Qantas, which is now carrying out acceptance tests on the Altea CMS’s departure control module, and will have the system up and running by mid-year. Hickey says the company has “a number” of letters of intent with other Asia-Pacific carriers, declining to give details because of confidentiality agreements. In December, however, Amadeus announced it had signed an agreement with Singapore Airlines (SIA) to perform a detailed evaluation of the 24 Asian Aviation May 2007 Altea CMS. The evaluation is due for completion in mid-year, Hickey says. If it is successful, SIA may become the first Asian carrier to switch its current legacy passenger service systems to Amadeus’. “Singapore Airlines’ approach to information technology (IT) modernisation should be regarded as a blueprint for other airlines that want to stay ahead of the competition,” says Hans Jorgensen, Amadeus’ vicepresident of strategic partners and programmes. The company also offers elements of the Altea system as stand-alone solutions, covering such functions as e-ticketing, fare quote systems and inventory control. New Altea customers Amadeus says it spent 2006 consolidating its leading position as a technology provider for airlines, successfully migrating Etihad Airways of the United Arab Emirates, Icelandair, Kazakhstan’s Air Astana and Rossiya Russian Airlines to the Altea CMS within nine months. The company also implemented a new self-service check-in solution for South African Airways, provided its revenue management system for Icelandair and gave consulting services to Egyptair to help the carrier make the best use of Altea. Lan Airlines deployed the Altea reservation desktop, while Finnair implemented the Amadeus Ticket Changer, automating its ticketchange and re-issue process from any location in any currency. During the year, 16 airlines signed up for Amadeus revenue maximisation tools, designed to help carriers boost revenue through the travel agency channel. E-ticketing is a priority for airlines hoping to comply with the International Air Transport Association (IATA) directive aiming for 100 percent eticketing worldwide by the end of this year. IATA says e-ticketing helps airlines simplify their business, offering “significant opportunities to reduce costs and improve passenger convenience”. E-ticketing “reduces ticket processing charges, eliminates the need for paper and allows greater flexibility to the passenger and the travel agent to make changes to the itinerary,” the association says. In Asia, Hickey says, Air India and South Korea’s Asiana are customers for Amadeus’ e-ticketing solution. By the end of 2006, the company had enabled e-ticketing for 174 airlines in 139 countries, with electronic tickets accounting for about 70 percent of all tickets distributed throughout the year. Amadeus says 2006 was also a good year for its on-line booking systems, with 10 new airlines adopting Amadeus e-travel solutions to power their web sites, bringing the total number of carriers using the product to 74. Among the new additions were Shanghai-based China Eastern Airlines and Etihad. Low-cost carriers Amadeus made significant progress last year in bringing content tailored for low-cost carriers (LCCs) into its global distribution system. As of March, travel agents could book 48 budget airlines in Amadeus – or 42 www.asianaviation.com percent of all the world’s LCCs. “There are a number of issues around LCCs that do not fit the traditional model of distribution,” Hickey says. “We have had to bring out some new products and make further investment in technology to make it easier for LCCs to distribute.” Blurring boundaries At first, LCCs were focused on direct distribution, but Hickey says that the line between low-cost and full-service carriers has become increasingly blurred. Some LCCs are now realising the potential benefits of indirect distribution – among them, Malaysia’s AirAsia, which last year signed a distribution agreement with Amadeus. To date, Amadeus has won six customers in 12 months for the full LCC version of its CMS, most recently Mexico’s VivaAerobus and Colombiabased AerOasis. Amadeus says the CMS has been designed bearing in mind the explosive growth of the low-fare market and the need to be able to adapt to dynamic business models. Norwegian Air Shuttle, the country’s leading LCC, adopted the Amadeus system last year. “The robustness and performance of the Amadeus platform enabled us to adapt our systems to meet our commercial needs,” says Hans-Petter Aanby, the carrier’s chief information officer. “The versatility of the system, compared with our legacy system, has ensured that we now have a clear upgrade and development path that will meet both our current and future needs.” AIRLINE IN FOCUS GENERAL AVIATION Dassault Falcon 7X jet gains European, US certification Dassault Aviation has won simultaneous type certification for its Falcon 7X business jet from the European Aviation Safety Agency (EASA) and the US Federal Aviation Administration (FAA). The certificates were awarded on 27 April at Dassault’s Bordeaux-Merignac site in France. The fly-by-wire Falcon 7X is expected to enter service before the end of June, offering a range of 5,950nm with eight passengers and flying faster, further and higher than any previous Falcon model, Dassault says. The jet is powered by three Pratt & Whitney Canada PW307A engines and fitted with the Honeywell Primus EPIC Enhanced Avionics System used on both the Falcon 900EX and the Falcon 2000EX. Dassault says the aircraft is the first ever to be designed and built in an entirely virtual environment using a Product Lifecycle Management philosophy. This reduced the time needed to complete the first flighttest ready Falcon 7X by as much as Hiller plans UH-12 helicopter joint venture in Zhangjiakou Hiller Aircraft, based in Firebaugh, California, plans to set up a plant in Zhangjiakou in North China’s Hebei Province to manufacture civilian light helicopters. Zhangjiakou is a historic garrison town located 180km (110 miles) northwest of Beijing. Hiller, originally established in 1942, and Zhangjiakou Qahar General Aviation, a new Chinese aviation firm, have agreed to invest US$15 million in a venture to manufacture helicopters for crop spraying, fire fighting, construction, rescue operations and other missions. Hiller manufactures the UH-12E light utility helicopter as its basic platform for a range of applications. The aircraft, powered by a single Allison 250C20B turboshaft, can carry external loads, perform aerial observation and basic flight training. Hiller says the UH-12E boasts the highest useful load of any helicopter in its class, beating its closest competitor by 300lb. Construction of the new plant in Zhangjiakou is expected to start this year and the facility will commence operation in 2008, manufacturing an initial batch of five helicopters. The production facility will be capable of producing 500 helicopters a year after three to five years and its annual revenue will exceed 200 million yuan (US$25.87 million). China will need more than 2,763 civilian helicopters from 2006 to 2026, according to Zhang Hongbiao, general manager of state-owned aerospace group China Aviation Industry Corporation II. Since its start in 1942, Hiller Aircraft has manufactured over 3,000 helicopters for civil, military and government customers throughout the world. This includes over 900 helicopters for use as primary trainers for the US military. launch of a business jet ever in terms of sales dollar value. Components of the aircraft are flown in from around the world to Bordeaux-Merignac for final assembly. The aircraft is then flown to Dassault’s completion centre in Little Rock, Arkansas for interior installation and paintwork. There are now more than 20 Falcon 7Xs in various stages of production at Bordeaux-Merignac, while a further seven are now undergoing completion in Little Rock. Gulfstream inherited the G200 product line from Galaxy Aerospace in 2001. Gulfstream Aerospace delivers 150th G200 jet Kenne Chan / Indianapolis Hawker Pacific considers more Asia-Pacific FBOs Sydney-based Hawker Pacific, which entered a joint venture late last year to develop a business aviation facility at Hongqiao Airport in Shanghai, China, is now eyeing other development possibilities for fixed-base operations (FBOs) in the Asia-Pacific region. The company is understood to be researching sites and potential partners in New Delhi as a possible future investment. The company is also working on a temporary FBO at Singapore’s Seletar airport. In Australia, the company is considering investing in an FBO at Essendon Airport, Melbourne – the country’s busiest private airport – and may carry out improvements to its 50 percent compared with previous Falcon versions. The 7X is also the first business aircraft to be flown with a full flyby-wire digital flight control system (DFCS). Dassault says it tapped the expertise it had built up from its military programmes such as the Rafale fighter to develop the system. Over 160 of the aircraft have been sold to date, representing more than four years of production, Dassault says. The company claims the order book makes the 7X the most popular Perth maintenance facility to include an FBO. The venture at Shanghai covers the development of an FBO, maintenance, repair and overhaul (MRO) and aircraft management services aimed at the corporate aircraft market. “We have long recognised the potential offered by China as one of the world’s fastest-growing economies,” says Hawker Pacific Chief Executive Alan Smith. The development of the facilities in Shanghai will position the joint venture to serve current domestic and international corporate aircraft operators and support the anticipated growth in corporate and private aircraft ownership in China. Gulfstream Aerospace delivered its 150th large-cabin, mid-range G200 business jet on 26 April. “With more than 200,000 flight hours accumulated, the G200 fleet has established a proven track record in terms of performance, quality and reliability,” says Pres Henne, Gulfstream’s senior vice-president for programmes, engineering and test. The aircraft has achieved 99.75 percent dispatch reliability to date – the best in its class – and the manufacturer plans to keep working on improving this performance, Henne says. Since Gulfstream acquired the G200 product line from Galaxy Aerospace in 2001, the manufacturer has made significant improvements to it. Within the first year, Gulfstream redesigned the aircraft’s interior, reducing its weight by some 600lb. In 2004, Gulfstream began offering installations of Safe Flight’s www.asianaviation.com Enhanced AutoPower automatic throttle system (ATS). Also in 2004, the G200 received type certification from the European Aviation Safety Agency (EASA). In February 2005, Gulfstream began offering high-speed Internet in-flight capability. In August 2006, Gulfstream introduced a new version of its G200 MSG-3 scheduled maintenance program. The new MSG-3 program significantly reduces the number of required scheduled maintenance tasks while retaining the highest level of safety standards as defined by Federal Aviation Regulations. In addition, maintenance inspection intervals have been increased from 300 to 500 flight hours, improving aircraft availability for G200 operators. The G200 can fly 3,400nm nonstop and can reach speeds of up to Mach 0.85. Asian Aviation May 2007 25 BUSINESS China Southern narrows loss, looks west with new unit China Southern Airlines has reported a reduced first-quarter net loss compared with the same period a year earlier, helped by a gain of more than a quarter in turnover, a stronger yuan and increased fuel surcharges. The company says its net loss according to Chinese accounting rules totalled 188 million yuan (US$24.3 million), or 0.04 yuan per share, in the three months ended 31 March. That compares with a year-earlier quarterly loss of 603 million yuan, or 0.14 yuan per share. Revenue rose 26 percent to 11.89 billion yuan from 9.43 billion yuan. The company’s total passenger traff ic, measured in revenue passenger kilometres, increased 18 percent from a year earlier to 18.21 billion. Passenger capacity in terms of available seat kilometres jumped 17 percent to 25.49 billion. The number of passengers carried rose 17 percent during the period, to 12.56 million, with a load factor of 71.4 percent. Cargo volume increased 4.9 percent to 189,720 tonnes. China Southern posted a full-year profit in 2006, its first after three years of losses, despite continued increases in fuel costs. The carrier’s 2005 net loss totalled 1.79 billion yuan as the carrier continued to suffer from high costs and greater domestic competition. The strengthening Chinese yuan against the US dollar has cut the airline’s debt payments, since majority of its debt is denominated in dollars. Furthermore, a 67-100 percent increase in fuel surcharges on airline tickets, imposed by the Chinese government, has also helped the company’s financial performance. To further expand its domestic network, especially in western China, where rivals Air China and China Eastern Airlines have traditionally been strong, China Southern Airlines plans to set up a new, 1.2 billion yuan, joint venture carrier called Chongqing Airlines. The venture, a partnership with Chongqing Investment under the Chongqing municipal government, is expected to launch operations in June with a fleet of three Airbus A320s. China Southern will hold a 60 percent stake in the new airline, with an investment of 720 million yuan while Chongqing Investment will take the remaining 40 percent for 480 million yuan. Chongqing Airlines will compete for both passenger and cargo traffic on domestic routes in western China from its base at Chongqing Jiangbei International Airport. Kenne Chan / Indianapolis JAL failed to achieve its predicted return to profit this year, despite an increase in operating revenue. Bhakti Investama acquires half of troubled Adam Air Indonesian conglomerate Bhakti Investama has acquired a 50 percent stake in local low-fare airline Adam Air, which has been under investigation for breach of safety and maintenance requirements. The purchase agreement was signed on 12 April, with the stake acquired via Bhakti’s Global Transport Services subsidiary through the purchase of new shares. The proceeds from the sale, the value of which has not been revealed, will be used to support Adam Air’s expansion plans. Bhakti also holds a 35 percent stake in Indonesian Air Transport, a publicly listed airline that provides charter services for oil and gas companies. The two companies will remain separate for the time being. The transaction came amidst reports that one Indonesian low-fare airline could have its air operating certificate (AOC) revoked by the end of next month. An Adam Air official in Jakarta said in March that the company was prepared for the worst if its AOC were to be withdrawn, declining to comment further. The transport ministry has said Adam Air will be allowed to continue operating if it improves training and maintenance within three months. On New Year’s Day an Adam 26 Asian Aviation May 2007 Air Boeing 737-400 disappeared from radar screens after flying into violent storms near Makassar, Sulawesi before plunging into the sea. All 96 passengers and six crewmembers perished. On 22 February, one of the airline’s 737-300 jetliners made a hard landing at the Juanda International Airport in Surabaya, resulting in major structural damage to the fuselage and leaving the aircraft a write-off. The Ministry of Transport in Jakarta grounded the carrier’s remaining seven 737-300s the following day for safety and maintenance checks. All seven aircraft have since been released back to the airline. Family-run Adam Air was established in 2003 under the company name Adam SkyConnection Airlines, growing into one of Indonesia’s largest privately owned airlines with a fleet of more than 20 single-aisle 737s operating domestic and some international services. Prior to the share sale, the carrier had been planning to replace its 737 fleet with leased and purchased Airbus A320-family aircraft. However, the carrier now says it is reconsidering this plan, reopening talks with both manufacturers as it hopes to expand its fleet to 60 aircraft by 2010. Dennis William / Jakarta Japan Airlines disappoints with full-year net loss Japan Airlines (JAL), Asia’s largest airline by sales, has reported a fullyear loss of 16.2 billion yen (US$ 135 million) after dropping earlier forecasts of a return to profitability. The result compared with a yearearlier loss of 47.2 billion yen. The carrier had previously predicted a 3 billion yen profit for the 12 months ended 31 March, but revised its forecast on 2 May before the formal 9 May announcement. The loss comes despite a 4.6 percent increase in operating revenue to 2.3 trillion yen, as costs rose 2.4 percent to 2.28 trillion yen. JAL attributes the loss in part to www.asianaviation.com the removal from its balance sheet of 54.4 billion yen of deferred tax asset and a 6 billion yen extraordinary loss arising from an early retirement scheme launched in March. The company still beat its operating profit forecast, achieving 22.9 billion yen, more than the predicted 13 billion yen and a reversal from the previous year’s loss of 26.8 billion yen. The company says the operating result was helped by cost reforms, reduced fuel consumption, fuel surcharges and a 10 percent cut in the basic wage, which helped offset a 43.6 billion yen increase in the carrier’s fuel bill. Asian Aerospace International Expo and Congress will bring together a series of complementary aerospace industry events under the one roof at AsiaWorld-Expo in Hong Kong – to provide the largest dedicated civil aerospace platform on the industry calendar. All together now... Asian Aerospace International Expo and Congress Fast becoming the world’s largest dedicated civil aerospace event, Asian Aerospace is a targeted business platform enabling top aviation buyers and sellers to come together in a world-class venue at the heart of the fastest-growing aviation market in the world. The Asian Aerospace umbrella now covers Aircraft Interiors Expo Asia, Air Freight Asia, Asia Pacific Aviation Training Symposium, and a major international Congress to address all these aspects of the business. The Congress is a unique networking and business opportunity supported at ministerial level. It will address three key topics: Air Transport Strategy, Air Transport Operations and Aerospace Technology. With around 80 key aviation industry speakers and up to 600 delegates expected to attend, it’s shaping up to be the most important civil aviation gathering in the industry calendar. Aircraft Interiors Expo Asia Air Freight Asia (AFA) An industry-leading event already established in Europe, now also a key part of the Asian Aerospace experience. New interior concepts and retro-fit solutions on display throughout the show. From seats to galley equipment, in-flight entertainment to fabrics – everything ‘interiors’ is here under one roof. The region’s leading air cargo event, AFA 2007 Conference & Exhibition, will bring together key global sellers and buyers of air freight products and services (many being cargo divisions of leading global airlines). The show is growing faster than ever for 2007, and brings phenomenal added value to Asian Aerospace. >It’s time! Register online TODAY for FREE Expo admission... www.asianaerospace.com Touchdown in Hong Kong @ AsiaWorld-Expo September 3-6 2007 www.asianaerospace.com Where it all comes together Asia-Pacific Aviation Training Symposium Organised by Halldale, publishers of Civil Aviation Training magazine, this event provides the vital Training component to our Asian Aerospace stable – a Training and Simulation Exhibition Pavilion as well as a key Congress track running over all three days of the Congress. T H E R E I S O N LY O N E G E N U I N E A I RC R A F T C A L L E D Learjet. * T H E O N LY P L A C E TO GET ONE ExecuJet. Now you’re f lying. AUSTRALIA • EUROPE • MIDDLE EAST • SOUTH AFRICA Phone: +61 2 9693 0800 Email: info@execujet.com.au Website: www.execujet.com.au Fax: +61 2 9693 0808 *Bombardier and Learjet are trademarks of Bombardier Inc. and its subsidiaries. ExecuJet is the regional distributor and sales representative for the sale of Bombardier Learjet aircraft and operate a Bombardier Authorised Service Facility.
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