EMIRATES GROUP POSTS 21ST CONSECUTIVE YEAR OF PROFIT IN 2008-09

"The Emirates Group has reported its 21st consecutive year of net profit for its 2008-09 financial year despite unprecedented challenges for the airline and travel industry.The Group’s net profit of AED 1.49 billion (US$ 406 million) for its financial year ending 31st March 2009, was down 72 per cent from the previous year’s record profits of AED 5.3 billion (US$1.45 billion), showing the impact of the record fuel prices in the first six months of the year, and the impact of the global recession. At the same time, Group revenues of AED 46.3 billion ($ 12.6 billion), representing an increase of 10.4 per cent over the previous year’s AED 41.9 billion ($ 11.4 billion), reflects continued business growth." Next.

Abu Dhabi International Airport posts +12% rise in passenger traffic for April

"UAE. Abu Dhabi Airports Company (ADAC) today announced a +12% year-on-year rise in passenger traffic at Abu Dhabi International Airport for April. Aircraft movements increased by +5% and, significantly, origin destination passengers rose by +13.7% during the month. Conferences and exhibitions held in Abu Dhabi in April, such as Cityscape Abu Dhabi, were among the main contributing factors to the traffic increase. Numbers were also boosted by the arrival of new Sudanese airline, Sun Air, with three weekly flights between Abu Dhabi and Khartoum; and Etihad Airways commencing daily flights to Melbourne, Australia. London remained in top position as Abu Dhabi’s busiest route, with Bangkok in second place followed by Doha, Bahrain and Jeddah. The Indian subcontinent continued to see strong growth thanks to competitive pricing and high volume workforce traffic." Next.

British Airways makes worst ever loss

"British Airways slumped to a loss of £401m and scrapped its dividend this morning as high fuel prices and a collapse in business travel saw the airline post its worst ever financial performance.BA swung from a record profit last year to a record deficit after it was hit by a near-£3bn fuel bill, the weak pound and the sudden deterioration in its most important market, transatlantic business customers, due to the banking crisis." Next.

Superjet may not build 75-seat RJ

"SuperJet International said yesterday that it is taking a hard look at its original plan to build a 75-seat regional jet and likely will go for an aircraft in the 100/115-seat range to complement the existing 95-passenger SSJ 100 platform.

"We've learned a lot over the past few years," Superjet CEO Alessandro Franzoni said at the Regional Airline Assn. conference in Salt Lake City. "We're considering a different strategy. We haven't abandoned our plans for a 75-seater but our focus now is on the stretch version in response to our customers. The economics of the stretch work better."

Franzoni said the market has changed since the program was launched nearly five years ago and now has a clear preference for a larger RJ. Ideally, the stretch version would have "maximum compatibility" with the SSJ 100 and could come to market within two years of the first 100 delivery at the end of 2009, he said.

Two SSJ 100s have been completed and are in certification testing (ATWOnline, April 3), while another 13 are in production and the company is prepared eventually to complete 70 aircraft per year, he said. A Superjet will be flown at next month's Paris Air Show, where he hinted that another new customer could be announced.

First delivery of the SSJ 100 is still on schedule for the end of 2009 to Armavia, which has two firm and two conditional orders. First delivery to launch customer Aeroflot, which has 30 firm orders, is expected shortly thereafter. To date, Superjet has 98 firm orders. It estimates a potential market for 6,400 regional aircraft in the 75/100-seat range over the next two decades and said it hopes to capture some 1,600 orders.

Franzoni sought to clarify an earlier report that Russia's United Aircraft Corp. would slash its Superjet 100 production rate to 74 aircraft from the 230 it planned to build by 2012 (ATWOnline, May 8). "Overall, the expected production rate has not changed but has been adjusted to new dates," he told ATWOnline, noting that the first delivery date is a full year behind the original schedule. "Our partners in Russia still don't appreciate the use of proper language to communicate. For everybody, this is truly a learning process," he said." Article.

Air France-KLM, Delta tie-up to reap $12B annually

"Later today Air France-KLM and Delta Air Lines will be signing a global joint venture agreement in which the parties will jointly operate trans-Atlantic routes. In a joint press release the SkyTeam Alliance carriers say the joint venture agreement will be signed today and it will account for 25% of total trans-Atlantic capacity. Under the agreement the parties "will jointly operate the trans-Atlantic routes, share revenues and costs." The agreement will also cover all the partners' flights between Amsterdam and India and North America and Tahiti, it says, adding that the joint-venture is expected to have annual revenue of $12 billion." next.

Hainan turns to Tianjin govt to invest in its regional carrier

"Hainan Airlines (HNA) Group is changing its Tianjin-based regional carrier, Grand China Express, into Tianjin Airlines and has persuaded the authorities in Tianjin to invest in the regional carrier.A spokesman in Hainan Airlines' Haikou-headquarters confirms that HNA Group's Grand China Express is changing its name to Tianjin Airlines. A spokesman for the group company, meanwhile, says it will retain a majority stake in the business but that the Tianjin Government and the Tianjin Free Trade Zone will be investing in it in return for a minority stake." Article

Airbus production issues delay next Qantas A380 delivery

"Delivery of the next Airbus A380 to Australia's Qantas has been delayed by over a month due to continuing production problems at the manufacturer, claims the airline. The aircraft, which will be the airline's fourth of the type, was due for delivery at the end of May, says Qantas. "Airbus has advised us that, due to production issues, it will not be delivered until mid-July. It is now scheduled to enter service at the end of July," it adds." Next.

A400M Customers Review Program Commitment

"EADS Airbus Military hopes that by the Paris Air Show next month launch customers Belgium, France, Germany, Luxembourg, Spain, Turkey and the UK will complete a review of their commitment to the A400M military transport. Defense-capability marketing vice president Peter Scoffham on May 12 said that the company was doing “all we can to meet customer expectations.” He could not say when first flight would occur beyond being confident that the event would be “soon.” Scoffham proclaimed himself “100 percent” confident the A400M will meet performance guarantees, though Airbus is trying to lighten the aircraft, for which there is “no contracted maximum weight.” EADS Airbus earlier proposed major contract revisions, including a delay in the first deliveries until 2012, while conceding that it had “completely underestimated” the development task it had taken on under a 2003 fixed-price contract covering 180 aircraft." Next.

Interview: AirAsia CEO Tony Fernandes

"We are stuck inside a busy restaurant called "Taste of Asia"at Kuala Lumpur's low-cost terminal for 20 minutes. A crowd has gathered because a rock star is in the house; his name is Tony Fernandes. All it takes is for one person to tentatively walk up to the AirAsia chief executive and ask for a photograph. Fernandes adjusts his trademark red cap, shakes the passenger's hand, puts his arm around him and smiles widely with a thumbs-up as the camera clicks. He then turns to the passenger and says: "Thank you for flying with us." Next.

First Tianjin A320 flies

"The first A320 assembled outside Europe successfully completed its inaugural flight yesterday, taking off from Tianjin International in the morning and landing safely a little more than 4 hr. later. The aircraft assembled at Airbus Final Assembly Line China was ordered by Dragon Aviation Leasing and is set to be delivered in June to Sichuan Airlines. "This A320 assembled in China unquestionably demonstrated the same quality and performance as those assembled and delivered in Hamburg or Toulouse," Airbus Senior VP-Flight & Integration Tests Fernando Alonso said." next.

Thales : vers une passation de pouvoir « apaisée »

"Ni révocation en masse du conseil d'administration ni mise au vote de résolutions humiliantes proposant le remplacement en séance de certains de ses membres : épilogue de plusieurs mois de conflit larvé entre le PDG sortant, Denis Ranque, et le nouvel actionnaire privé de référence, Dassault Aviation, l'assemblée générale de Thales, ce matin, devrait sauvegarder les apparences. « Chacun est convaincu qu'il faut que cela se passe élégamment, dans la continuité des décisions prises », estimaient hier plusieurs sources concernées." Suite.

Astrium signe un accord de partenariat stratégique avec le Kazakhstan

"Astrium, filiale d'EADS, a signé un "accord de partenariat stratégique et technologique" avec le Kazakhstan et va fournir à ce pays deux satellites d'observation de la Terre, a annoncé le groupe mardi.Dans le cadre de ce partenariat, Astrium réalisera un "centre d'intégration de satellite" qui fera..." Next.

China Eastern likely to get another CNY2 billion from Beijing

"China Eastern Airlines is expected to receive a further CNY2 billion ($294 million) capital injection from the Chinese government to help the struggling carrier survive. The Shanghai-based carrier was allocated CNY7 billion from Beijing at the end of 2008, which was approved by minority shareholders in February and is awaiting approval from the China Securities Regulatory Commission.

"Our biggest problem is insolvency. We would have gone bankrupt if we hadn't received [the] capital injection," CEA Board Secretary Luo Zhuping noted. GM Ma Xulun also admitted that the carrier can't solve its financial problems by itself. CEA had a debt burden of CNY83.7 billion as of March 31 and its debt ratio reached 115.13% in the same timeframe, according to its financial report for the first quarter.

Industry analysts pointed out that the bailout money is meant to pave the way for a merger with Shanghai Airlines, which is reported to have been discussed at the government level, but no specific plan has been made. SAL Chairman Zhou Chi has stressed that the merger won't happen in the near future (see item below)." Article

Air China, China Eastern pledge to stay with hedging

"Air China and China Eastern Airlines insisted that fuel hedging is a solid long-term strategy and pledged to continue with it to insulate them from price fluctuation despite huge hedging losses for full-year 2008 and the 2009 first quarter. CA and CEA reported CNY948 million ($138.8 million) and CNY916 million fuel hedge losses respectively in the first quarter, which followed hedging losses of CNY7.47 billion and CNY6.2 billion respectively by the two carriers for full-year 2008. Separately, CEA announced that its CNY7 billion capital injection from Beijing has been approved by the China Securities Regulatory Commission. " next.

CFM to begin testing LEAP-X core, awaits movement on 737/A320 successor

"CFM International today will move the first LEAP-X engine core to GE Aviation's testbed at its Evendale, Ohio, facility to begin testing within three weeks as the GE/Snecma joint venture aggressively develops the new-generation powerplant it is marketing to Boeing and Airbus for the eventual successor to the 737 and A320 families.CFM this week showed reporters both the core and a "MASCOT" test engine comprising composite three-dimensional modeling-designed LEAP-X fan blades currently undergoing crosswind tests at GE's Peebles, Ohio, facility. CFM said a baseline LEAP-X can be ready for certification by 2016 for a possible EIS in 2018 and insisted that it will be far enough along in development and testing by 2011-12 for the aircraft manufacturers to make a decision" Next.

EADS hit as Airbus demand collapses

"EADS' profits fell sharply in the first quarter as Europe's leading aerospace and defence group was hit by the growing impact of the global recession and further charges due to struggling new aircraft development programmes.

Airbus, the commercial aerospace division which dominates the group, suffered a collapse in demand from airlines and captured only 22 gross new orders (eight net new orders after cancellations) in the first three months, down from 420 gross new orders (395 net new orders) in the same period a year ago.

The group lowered its forecast for the whole of 2009 from the previous range of 300-400 gross new orders to "up to 300", a sharp fall from the 900 won in 2008 and the record 1,458 booked in 2007." Next.

Ryanair: Irish Traffic and Tourism Collapses

"Ryanair, Europe’s largest low fares airline, today (14 May) welcomed the decision by the Spanish Government to reduce airport taxes to zero for all airlines that maintain or increase the traffic they achieved at Spain’s largest airports in the second half of 2008 during the corresponding period this year. Ryanair welcomed this move as the latest in a series of initiatives by European governments to lower taxes and airport charges in order to reverse recent traffic and tourism declines. In recent weeks these initiatives have included: 1. The Belgian Government scrapped its air passenger tax. 2. The Greek Government reduced its regional airport charges to zero for 2009. 3. The Dutch Government has repealed its €12 air passenger tax. 4. The Spanish Government has announced a zero rate of airport tax for airlines that maintain or grow traffic. " Next.

Survey highlights link between viability of air services and economic prosperity

Article.

L'Etat et Dassault tournent la page chez Thales

"L'Etat, après avoir arraché l'accord de Dassault, va imposer Luc Vigneron, le PDG de Nexter, à la tête du groupe d'électronique de défense. Une partie du conseil d'administration sera renouvelée demain à l'assemblée générale." Article.

Air France and Air Seychelles Renew Cooperation Agreement

"Air France and Air Seychelles have renewed a cooperation agreement. The new agreement covers a three-year period and replaces an agreement signed in 1997. Under the agreement, Air Seychelles will continue to operate the Paris-Seychelles route on behalf of both airlines."
 http://www.asiatraveltips.com/news09/185-AirSeychelles.shtml.

EADS' A330 Multi-Role Tanker Transport Concludes Key Boom Flight Test Milestone

"The EADS A330 Multi-Role Tanker Transport (MRTT) -- on which Northrop Grumman's KC-45 for the U.S. Air Force is based -- has completed a key phase of testing to further validate the in-flight handling qualities of its advanced Aerial Refueling Boom System (ARBS). These evaluations, known as flutter testing, confirmed the characteristics of the EADS-developed ARBS, which is integrated on the A330 MRTT for the transfer of fuel to military receiver aircraft." Next.

Superjet the biggest casualty as Russia slashes airliner output plans

"Russia has responded to the global downturn by setting new output targets for the country's aerospace industry, which could threaten short-term production of the Sukhoi Superjet 100. The announcement by state-runholding groupUnited Aircraft (UAC) will see overall planned airliner deliveries between 2009 and 2012 cut by more than 50% to fewer than 190 aircraft." Next.

EADS-NA and Lockheed Martin Partner On Armed Scout Helo

"A major topic of discussion at this year's 'Quad A' was the news that EADS North America will be partnering with Lockheed Martin and American Eurocopter to offer a new armed scout helicopter solution to the Army, called the Armed Scout 645." Next.

Union calls for government to acquire a stake in Air Canada

"A union representing nearly 5,000 Air Canada employees wants the government to take a stake in Air Canada as the carrier attempts to restructure to withstand effects of the global economic downturn.The Canadian Auto Workers (CAW) union went on the offensive today ahead of a contract that expires 31 March. During a press conference CAW laid out suggestions they believe are best to help Air Canada shore-up liquidity." Next.

Bernstein Research sees further 787 delays, bigger range shortfall

"Boeing's 787 customers face delivery delays of up to an additional six months, according to a report issued Friday by New York-based Bernstein Research that also suggest a 10%-15% range shortfall for early delivery aircraft. The May 1 client report, a wrapup after Boeing's 787 certification briefing on April 29 (ATWOnline, April 30), is Bernstein's sixth reassessment of 787 production and forecasts that the manufacturer will not reach its target production rate of 10 aircraft per month until mid-2013, six months later than the latest target (ATWOnline, Feb. 9). Bernstein warned that it is "not comfortable with assuming that [Boeing] will achieve its goal of making first delivery in Q1 2010 to All Nippon Airways, and even less comfortable assuming a production rate of 10 per month by the end of 2012," and has thus "stretched the time from first flight to the target production rate by an additional six months, with production rates reaching six per month at the end of 2012 and reaching 10 per month in mid-2013." At its April 29 briefing, Boeing reiterated its plan to fly the 787 by June 30." Next.

Air Arabia Maroc officially launched

"Air Arabia Maroc has held an official ceremony at Mohammed V Airport in Casablanca to mark the carrier’s official launch. The event was attended by Karim Ghellab, Minister of Equipment and Transport of the Kingdom of Morocco along with HE Sheikh Abdullah Bin Mohammed Al Thani, chairman of Air Arabia, Mohamed Hassan Bensalah, chairman of Air Arabia Maroc and other leading officials and members of the public and private sector." Next.

BAE Systems va supprimer 500 emplois au Royaume-Uni

"BAE Systems, numéro un européen du secteur de la défense, annonce la fermeture de trois sites au Royaume-Uni et la suppression de 500 emplois, arguant de la baisse des commandes et de la diminution de la charge de travail pour le compte de l'armée britannique." Next.