CommercialSoutheast Asia Budget Carriers Risking OvercapacityLow-cost carriers are flying high in Southeast Asia on the back of sharp growth in air travel, but as hundreds of new aircraft are delivered to the region concerns are rising about its ability to absorb the record numbers of planes on order. Southeast Asian carriers have been gambling that low fares and rising disposable incomes will drive the region's 600 million-strong population to keep flying to new destinations. An aircraft buying binge fuelled by cheap interest rates and backed by Western export credits shows few signs of halting, with Vietnam's VietJetAir and Thailand's Nok Air both expected to place orders at the Singapore Airshow this week.
LinkMyanma Air To Lease Boeing 737s - ReportMyanma Airways is set to order up to a dozen Boeing 737s on lease in what appears to be the largest single fleet expansion in Myanmar as the country opens up to business and tourism, aviation industry sources said. The aircraft will be provided by GECAS, the sources said, asking not to be identified. The decision is expected to be announced at the Singapore Airshow, which runs from Feb 11 to 16.
LinkKuwait-Airbus Deal On Track Despite Probe - ReportA parliamentary investigation into a Kuwait Airways plan to buy and lease aircraft from Airbus will not affect the deal, the state carrier's chairwoman told a local newspaper in comments published on Sunday. Kuwait's parliament voted on Wednesday to investigate all contracts signed by state-owned Kuwait Airways, which is attempting its biggest overhaul since the 1990 Iraqi invasion. Such parliamentary inquiries are common in Kuwait, where lawmakers in the Gulf state's National Assembly often question large government projects and have delayed or scuppered them in the past. Al-Anba newspaper quoted Kuwait Airways Chairwoman Rasha al-Roumi as saying the deal would be completed without being delayed.
LinkAirbus A350 arrives at Singapore show The newest arrival on the circuit, the Airbus A350-900, has made its debut at the Singapore air show, performing a validation routine ahead of the official opening of the exhibition on 11 February. Flight-test aircraft MSN3 undertook a practice display lasting approximately 5min after arriving at the Changi show site at around 13.30 local.
LinkILFC and Libyan convert all A350-800s to -900sLibyan Airlines and lessor ILFC have each converted their orders for the Airbus A350-800 to the larger -900, with Libyan Airlines ordering an additional pair of -900s under its revised agreement. Conversion of the 10 aircraft takes the backlog for the -800 down to 46. Airbus's latest order and delivery data, covering the month of January 2014, reveals the switch by the two -800 customers.
LinkCargo slump big worry for Asia-Pacific airlines The depressed cargo market is the major concern of the Asia-Pacific airlines as the sector makes up a significant part of their business, says IATA director general Tony Tyler. “The biggest worry for the airlines in this region right now is probably cargo,” said Tyler, speaking on the eve of the Singapore air show. “Air cargo continues to be weak and for the big airlines it is an important component of their revenue.” Tyler says that cargo growth has “pretty much flat-lined” for the past couple of years, which has been “a big problem” for airlines in the Asia-Pacific region.
LinkCSeries customer orders three more CS300sAn existing Bombardier CSeries customer who remains unidentified has ordered an additional three CS300s, boosting the airframer's CSeries firm order backlog to above 200 aircraft. The new order is worth $228 million at list prices, says Bombardier, which now holds firm orders for 201 CSeries aircraft. It is not clear how many aircraft orders the identified customer now holds. Bombardier was not immediately contactable for comment. "With its outstanding attributes - including reduced noise and emissions - the CSeries aircraft provides immense opportunities for established, as well as new airlines, to grow and develop new markets. We are therefore thrilled that one of our existing customers is confidently ordering more aircraft and has pushed our firm-order tally beyond the 200th order milestone," says Bombardier president Mike Arcamone.
LinkBA yet to decide on fate of 747 damaged in JohannesburgBritish Airways has yet to make its decision whether to repair the Boeing 747-400 that struck a building whilst taxiing at Johannesburg airport on 22 December 2013, says the carrier’s managing director for brands and customer experience. South Africa’s civil aviation authority is investigating the incident, while BA and Boeing are evaluating a potential repair of the aircraft, Frank van der Post said during a media event in Johannesburg on 6 February.
LinkTurkish Forces Seize Suspected Hijacker On PlaneTurkish special forces seized a passenger who is suspected of making a bomb threat and trying to hijack a plane, demanding to go to the Winter Olympics venue of Sochi, Turkish media said on Friday. Turkey scrambled an F-16 fighter jet to accompany the Pegasus Airlines plane as it landed at the airport after a flight from the Ukrainian city of Kharkov. Some media reports said the suspect had been taken away for questioning but one official at Sabiha Gokcen airport in Istanbul said the suspect had not yet been seized. The passenger was believed to have drunk alcohol and was calmed down by the crew and persuaded to allow the plane, a Boeing 737-800, land in Istanbul at 18:02 (6:02 pm) local time, according to Dogan news agency.
LinkEthiopian In Talks with Boeing Over 777X OrderEthiopian Airlines is in preliminary talks with Boeing that could lead to an order for 10 777X, the airline's chief executive said. "When the 777X comes, as soon as we can get the (production) slots we will be there," Tewolde Gebremariam told Reuters news agency. "We are discussing with Boeing for about 10 777X," he added - a deal potentially worth USD$3.8 billion at list prices. The comments represent a strengthening of Ethiopian's interest in the 406-seat jet after it said last month it was evaluating it but had no immediate plans to place an order.
LinkLufthansa Picks Carsten Spohr As CEOLufthansa has picked Carsten Spohr, head of the carrier's passenger airline business, as its new chief executive to lead the battle against low-cost carriers and fast-growing Gulf airlines. Germany's largest airline has been looking for a new boss since September, when it was announced current CEO Christoph Franz would leave at the end of May to become chairman at Swiss pharmaceuticals company Roche. It said on Friday that Spohr, who has been head of the passenger airline business since 2011 and had been tipped to succeed Franz, will take up the post on May 1. "Spohr knows the business. He has shown that he is well-connected and can restructure the group," said Ingo Speich, a fund manager at Union Investment.
LinkSouthwest Airlines starts offering craft beerTravelers on Southwest Airlines will soon have the opportunity to enjoy craft beer. The airline formed a partnership with New Belgium Brewing and now offers the brewery’s Fat Tire beer on all of its flights.
LinkDelta continues path to growth in 2014, analysts sayDelta Air Lines reported strong profits for 2013, and analysts expect the carrier to continue on its path to growth in 2014. Delta plans to boost its capacity by up to 2% this year, and also expand service to Latin America. The carrier will also put into place its joint venture with Virgin Atlantic in 2014.
LinkBritish Airways weighs Boeing 777X to replace 747sBritish Airways is considering replacing its Boeing 747 jets with the fuel-efficient Boeing 777X aircraft. "We're looking at the aircraft and we're certainly interested," said Willie Walsh, CEO of IAG, the parent company of British Airways.
LinkThai carrier could order Boeing 737 MAX jets, sources sayNok Airlines, a low-cost carrier based in Thailand, could order Boeing 737 MAX jets at the Singapore Air Show, sources say. "Leasing companies will provide part of Nok's requirements. Nok is looking at a number of arrangements as they need the aircraft," a source said.
LinkHistory flies high at top 14 aviation museums across the globe Recent months have brought important anniversaries in the world of aviation. Orville Wright completed the world's first powered flight on December 14, 1903. (Debate persists on whether the first "successful" powered flight took place on December 14 or December 17 of 1903. Though others disagree, thewrightbrothers.org website recognizes October 14 as the first of the Wright Brother's first five flights.) The first commercial flight, from St. Petersburg, Florida, to Tampa, Florida, took place in January 1914. That 23-minute flight, for which most passengers paid $5 each, took place in a wood and muslin biplane flying boat.
LinkAirbus mulls engine upgrade for A380 to boost sales Airbus is exploring fresh ways to improve sales of the world's largest passenger jet after receiving a potentially crucial signal of support from at least one of its engine makers, industry sources said. Faced with patchy demand for the A380 superjumbo, Britain's Rolls-Royce has indicated it may be willing to upgrade its Trent 900 engines to help Airbus dig its way out of a recent sales trough, the sources said, asking not to be named. However, no decision has been taken and Airbus has said its first priority is to keep carrying out gradual improvements to the 525-seat aircraft, which entered service in 2007.
LinkAirline consolidation boosts major Calif. airports Cutbacks and consolidation in the airline business are beginning to show up at the gate as Southern California's larger airports showed strong growth in passenger traffic last year, while most of the smaller facilities suffered losses. Los Angeles International Airport continued to dominate the region, with 4.7 percent year-over-year growth, topping 66 million passengers in 2013. John Wayne Airport ranked second, with a 4.2 percent increase, followed by San Diego International, up 2.7 percent. Palm Springs International, the single exception among ...
LinkColumn: U.S. airlines achieve better fuel efficiencyJohn Kemp, a market analyst for Reuters, writes that U.S. airlines have trimmed fuel consumption by around 1.4 million barrels per day. "Fuel is now the largest single item of expenditure for most U.S. and international airlines," he writes. According to the Bureau of Transportation Statistics, U.S. and international airlines operating in the United States spent a staggering $51 billion on fuel in 2012, a marked increase from $15 billion in 2000. "The pressure to achieve greater efficiency has been immense," writes Kemp.
LinkNorwegian Air Shuttle plans long-haul expansion Flying doesn’t come cheaply these days, particularly on long-haul flights across the Atlantic. But Norwegian Air Shuttle, which specializes in low-cost flights within Europe, plans to bring its pared-down model to the United States and Asia. Its strategy, however, comes with a few twists: Norwegian is moving its long-haul operations from Norway to Ireland, basing some of its pilots and crew in Bangkok, hiring flight attendants in the United States, and flying the most advanced jetliner in service — the Boeing 787 Dreamliner. In the process, it has infuriated established carriers and pilots.
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