Monthly Archives: May 2012

Air India won’t take delivery of the first Boeing 787 Dreamliner until the airline and the manufacturer can agree on delay compensations

Air India‘s (Mumbai) board of directors, backed by the Indian government, is refusing to take delivery of the first Boeing 787 until the two parties can agree on the compensation package due to the delivery delays according to the Deccan Herald. Air India and Boeing are reportedly far apart in the negotiations.

Read the full report: CLICK HERE

Copyright Photo: Nick Dean.

Air India: 

Azul and TRIP to merge under one holding company

Azul Linhas Aéreas Brasileiras (Sao Paulo-Campinas) and TRIP Linhas Aéreas (Sao Paulo-Campinas) announced yesterday (May 28) they are planning to marge and will create a new holding company called Azul Trip S.A. The two airlines will operate separately under the new holding company until regulatory approvals are obtained. At the time of the approvals, the holding company will consider consolidating the two brands but in reality the TRIP brand is now short-term. This announcement outflanks TAM Linhas Aéreas (Sao Paulo) which had an on-going relationship with TRIP as a feeder. David Neeleman, the founder of Azul (and also jetBlue Airways), called the acquisition the equivalent of four years of natural growth.

Azul stockholders will receive two thirds of the Azul Trip S.A. stock and the TRIP stockholders will receive the remaining one third.

Read the full report from Bloomberg Businessweek: CLICK HERE

Top Copyright Photo: Marcelo F. De Biasi.



Bottom Copyright Photo: Marcelo F. De Biasi. 

TRIP Route Map:

Click on the map to expand.

Engine debris drops to the ground near Toronto Pearson, Air Canada Boeing 777 makes an emergency landing

Air Canada‘s (Montreal) flight AC 001 from Toronto (Pearson) (YYZ) to Tokyo (Narita) (NRT) yesterday (May 28) afternoon was forced to return to YYZ after an engine failure on takeoff. At least four vehicles were hit by small pieces of engine debris from the Boeing 777.

Read the full report from The Globe and Mail: CLICK HERE

Copyright Photo: TMK Photography.

Air Canada: 

California Pacific makes progress, hopes to have its first Embraer 170 in the next 60 days


California Pacific Airlines (CP Air) (Carlsbad), the latest airline start-up, is making progress according to their team. According to an airline representative, CP Air has been adding maintenance staff for the anticipated arrival of its first Embraer ERJ 170 in the next 60 days. On the regulatory front, the new paper airline continues to work with the FAA to refine its operations manuals and training programs which will lead to a Part 121 AOA.

Read the interview and view the video from NBC San Diego with founder Ted Vallas: CLICK HERE

Projected Route Map:

Click on the map to expand.

QANTAS to spilt its company into domestic and international operations

QANTAS Airways (Sydney) has announced it will split up its international and domestic operations into two separate businesses in July 2012 according to the Sydney Morning Herald. The logic behind the move is to insure each division can operate efficiently and profitably. The company is committed to turning its international operations which is losing money.

Read the full report: CLICK HERE

In other news, QANTAS Airways and subsidiary Jetstar Airways (Melbourne) will increase capacity on the east coast routes by up to 25,800 seats per week during 2012/13.

QANTAS will add:

– 11 return services per week between Sydney and Melbourne from July 9, 2012
– 11 return services per week between Sydney and Brisbane from August 23, 2012

Jetstar will add:

– 21 return services per week between Sydney and Melbourne from August 16, 2012
– Seven return services per week between Sydney and Adelaide from November 15, 2012
– Seven return services per week between Sydney and Ballina-Byron from April 18, 2013
– Seven return services per week between Sydney and the Gold Coast from April 18, 2013
– Three return services per week between Adelaide and the Gold Coast from April 18, 2013
– Four return services per week between Newcastle and the Gold Coast from April 18, 2013

Top Copyright Photo: John Adlard.

QANTAS Airways: 

Jetstar Airways: 

Bottom Copyright Photo: John Adlard.

Lion Air to launch full-service Batik Air with 10 Boeing 737-800s in March 2013

Lion Air (Jakarta) has announced it will launch a new full-service subsidiary named Batik Air in March 2013. The new subsidiary will compete against rival Garuda Indonesia (Jakarta) and operate on international routes to Asia and Australia. The fleet will be 10 Boeing 737-800s according to the Jakarta Post.

According to Wikipedia, the name of the new airline is derived from the local name of a dyed-pattern cloth especially the  Javanese traditional batik, especially from regions around Yogyakarta and Surakarta. Batik has notable meanings rooted to the Javanese idea of the universe. Traditional colors include indigo, dark brown, and white (likely the colors of the new airline), which represent the three major Hindu Gods (Brahmā, Visnu, and Śiva).

Read the full report from the Jakarta Post: CLICK HERE

Copyright Photo: Michael B. Ing.

Lion Air: 

Malaysia Airlines narrows its first quarter net loss to $54.3 million, is set for the delivery of the first Airbus A380

Malaysia Airlines (Malaysia Airlines Group) (Kuala Lumpur) reported it narrowed its first quarter net loss to $54.3 million.

The flag carrier also restated it would not restart jet operations at its Firefly subsidiary.

The company issued this statement:

“Malaysia Airlines Group registered a loss after tax of RM171 million for the first quarter ended 31 March 2012, a significant 29% reduction from the RM242 million loss for the same period last year despite higher jet fuel price averaging $135 per barrel during the quarter compared to $120 per barrel in the previous year.

Total revenue of the Group stood at RM3.11 billion while overall operating expenditure was RM3.42 billion, thus leading Malaysia Airlines to register an operating loss of RM307 million for the first three months of 2012, 10% lower year-on-year.

According to Malaysia Airlines Group Chief Executive Officer, Ahmad Jauhari Yahya, “We were able to achieve a lower net loss for the first three months of 2012 compared to the previous year because we made some tough decisions per our Business Plan. We cut unprofitable routes especially in long haul where yields were low. This helped us to immediately improve our Revenue per Available Seat Kilometre (‘RASK’) performance year-on-year. On the cost side, we lowered our fuel bill with improved consumption as a result of newer fuel-efficient aircraft.”

Ahmad Jauhari added, “Improved cost management was also seen for non-fuel variable costs, although we are currently unable to address our fixed costs. We are optimistic this situation will change in the not too distant future. From these Q1 results, we feel confident of continuing improvements in performance, given that the initiatives from our Business Plan are bearing fruit.”

For the airline, passenger yield increased 12% while RASK increased by 8%. Passenger capacity decreased 8% due to network rationalization that included 12 route cuts during the period. The Group’s aggressive focus to consolidate its network has begun to show promising results.

Cargo saw a 15% decrease in operating revenue for the quarter to RM431.2 million compared to last year due to proactive capacity management. Capacity decreased 19%, with yield increasing by 6%.

Group operating expenses for this quarter was RM3.42 billion, 3.1% lower than the same quarter last year. Fuel remained the largest component at 38%, equivalent to RM1.31 billion, which was an increase of RM142 million in spend on jet fuel alone. Aided by the network rationalization and improved fuel consumption from more efficient aircraft, the Group was still able to record a significant achievement with a lower total expenditure despite the rise in fuel price.

Staff cost increased 7% to RM591 million for the quarter ended 31 March 2012 due to salary increments and upward adjustments to the salary structure as a result of one Collective Agreement signed with a union.

Ahmad Jauhari expressed his gratitude to the staff, “I am pleased that the Management and employees are committed to the success of the Business Plan. This is evidenced by improved the On-Time Performance (OTP) which averaged 91.26% for the quarter ended 31 March 2012, representing a high 9.36% improvement on the 81.9% average for the same quarter last year.”

“We are also on track to win back more customers with a major re-fleeting exercise. This year, 23 new aircraft equipped with state-of-the-art passenger amenities will join our fleet. This is led by our flagship A380 aircraft which is on schedule to enter into service on 1 July 2012. Supported by intensified sales and marketing, we are confident of improving our customer base to boost yield and load factors”, said Ahmad Jauhari.

The airline is also moving quickly to increase productivity and efficiency. This includes increasing utilization of its fleet through greater frequency to most popular regional destinations and a faster aircraft turnaround times at airports. This will be a foundation for Malaysia Airlines to implement a continuous improvement philosophy across all of operating areas to become a world class airline, and achieve the airline’s vision of being the preferred premium carrier.

Ahmad Jauhari also took the opportunity to thank the Board members for their support of the tough decisions taken to implement the Business Plan. “I thank the Board of Directors for their support of Management’s implementation of the Business Plan. Their support was imperative to our ability to get to this stage of the Plan towards getting our Company back to profitability. Our appreciation also goes to former Directors, Tan Sri Tony Fernandes and Dato’ Kamarudin Meranun, for their invaluable support and guidance during their tenure on our Board.”

Copyright Photo: Gerd Beilfuss. Malaysia Airlines will become the next Airbus A380 operator, introducing the new type on July 1 in this revised livery.

Malaysia Airlines: 

Malaysia Airlines: 

Scoot is ready to launch operations on June 4

Scoot (subsidiary of Singapore Airlines) (Singapore), Singapore’s newest airline, is taking off ahead of schedule with its inaugural flight to Sydney set for June 4, followed by the Gold Coast a week later on June 12.

Top Copyright Photo: Scoot. Formerly operated by Singapore Airlines as 9V-SQA, Boeing 777212 ER 9V-OTA (msn 28507) is first of four Triple Sevens.

Middle Copyright Photo: K.C. Sim. Formerly operated by Singapore Airlines as 9V-SQC, Boeing 777-212 ER 9V-OTC (msn 28509) is now dressed in Scoot’s eye-catching yellow and white scheme. 9V-OTC was dispatched on its maiden test flight on May 28, 2012. The one-hour test flight was stretched into a four-hour sortie instead around the city state of Singapore. 9V-OTC is pictured returning home to the SIN base.

Hot New Photos: 


Bottom Copyright Photo: K.C. Sim.

Airline Tails of the World: 

Video: The new offshoot is looking for helping on naming its first two 777s:

Grandstar Cargo shuts down and will be liquidated

Grandstar Cargo International Airlines (Tianjin) has suspended operations and will be liquidated. Sinotrans has reported the board of Grandstar Cargo International Airlines has approved plans to liquidate after continued losses according to the WSJ. Grandstar Cargo was jointly owned by a unit of Sinotrans and Korean Air. Grandstar Cargo commenced cargo operations on June 27, 2008.

Copyright Photo: Ton Jochems.

Grandstar Cargo: 

Etihad Airways operates a demonstration RNP-AR flight at Abu Dhabi

Etihad Airways (Abu Dhabi) on May 24 performed a demonstration flight operating full RNP-AR procedures. The Airbus A330-200 has become the first aircraft in the region to perform the environment friendly RNP-AR (Required Navigation Performance – Authorization Required) approach to Abu Dhabi International Airport.

The demonstration flight, which arrived from Bahrain, marks the beginning of full RNP-AR implementation within Abu Dhabi’s airspace.

This high precision navigation technology, designed by Airbus’ Performance Based Navigation (PBN) subsidiary, Quovadis, utilizes continuous descent operations and shorter trajectories that in turn shorten the approach paths to the runway thereby reducing noise, flight times and minimising fuel consumption and CO2 emissions.

This will reduce the fuel consumption between 100 and 200 kg per approach resulting in a reduction of CO2 emissions by at least 20,000 tonnes per year.

Along with Etihad Airways and Quovadis, other partners in this project include the Abu Dhabi Airport Company (ADAC), UAE General Civil Aviation Authority (GCAA), and ADAC’s Air Traffic Controllers.

Following the success of this demonstration flight, the procedures will be published this summer and flown on a daily basis pending approval from the UAE regulatory authority.

Other airlines will also be able to fly these procedures, provided they have received the proper operational approval from their authorities.

Less than a year ago, Quovadis was contracted by Etihad Airways and ADAC to develop RNP-AR procedures for both Abu Dhabi International and Al Bateen Airports. Today the Abu Dhabi International Airport approaches have been approved and the Al Bateen Executive Airport procedures will be submitted to the authorities before the year’s end.

Copyright Photo: Keith Burton.

Eithad Airways: