Friday, July 29, 2011

Indonesia's Garuda airline pilots strike

Manila Bulletin
July 29, 2011, 3:55pm

JAKARTA, Indonesia (AP) – Pilots with state-run carrier Garuda Indonesia went on a 24-hour strike over pay and working conditions Thursday, but there appeared to be no major disruption in service.

The work stoppage was called after talks between the 600-strong union and management fell apart.

The airline's local pilots claim they earn up to 30 percent less than its foreign pilots and want that fixed.

"We just want to be heard,'' said Capt. Stephanus Geraldus, chairman of the Garuda's Pilot Association. "Not only are we underpaid, we're overworked.''

"The board of directors should know all this undermines safety.'' It was not clear how many pilots joined in the strike.

Geraldus said 500 initially agreed to take part, but some were eventually convinced to fly Thursday. He did not elaborate.

Garuda, which has 900 pilots and 395 flights daily, leased a new fleet of Boeing 737 Next Generation last year but the planes were forced to sit in hangars for months because there were not enough pilots to fly them.

Rather than risking further financial losses, the airline brought in about 40 foreigners to operate the new planes and train new pilots.

Garuda, which also flies to Europe and the Middle East, said it would make sure operations continued to run normally Thursday.

There were enough non-striking pilots to keep things running, the carrier said, and it was ready to move pilots from administrative jobs to the cockpit, if necessary.

Flight instructors also were on standby.

There were no signs of long lines or stranded passengers at the main airport in the capital, Jakarta.

Ari Sapari, Garuda's chief operating officer, said while there had been a few delays across the country of 240 million, more than 50 flights had taken off normally by midmorning.

Korean Air reports quarterly profit

Manila Bulletin
July 29, 2011, 3:53pm

SEOUL, Korea (AFP) – Flag carrier Korean Air said it swung to a net profit in the second quarter compared to losses a year earlier, thanks to foreign-currency gains.

But the airline reported an operating loss due to high fuel costs and diminishing travel to Japan after the March 11 earthquake and tsunami.

Korean Air achieved a consolidated net profit of 33.7 billion won ($32 million) from April-June compared with a net loss of 196.7 billion won in the same period last year.

The won's rise led to foreign-currency gains of 164.7 billion won in the second quarter compared to losses of 439.4 billion a year earlier.

But a 34 percent rise in jet fuel costs eroded the bottom line, the company said in a statement.

The airline recorded an operating loss of 19.7 billion won compared to an operating profit of 395 billion a year earlier, while sales were up 2.0 percent to 2.944 trillion won.

Korean Air said it expects a rise in outbound travel and cargo demand in the second half due to reconstruction work in Japan and easing political tensions in the Middle East and North Africa.

It said the addition of five A380 superjumbos on long-haul routes would likely boost profit margins, and a free trade pact with Europe was expected to increase cargo business.

Korean Air Lines said that it would purchase 10 Bombardier CS 300 aircraft for 709 billion won ($675 million).

 The South Korean flag carrier said in a regulatory filing that it could buy 20 additional planes. Korean Air added in a separate filing that it would buy two Boeing passenger planes for 186 billion won.

Tuesday, July 26, 2011

Airphil continues route expansion, sets to launch Cebu-HK flight

Manila Bulletin
July 26, 2011, 5:10pm

MANILA, Philippines — Airphil Express is on track to be a major budget air travel player in the Philippines with the launch of the Cebu-Hong Kong route on July 28, 2011. The new flight connection is seen to further boost business and tourism between the two destinations and will strengthen the presence of Airphil Express beyond domestic borders.

Cosmopolitan Cebu province in the Visayas region, which is rich in heritage appeal, attracts domestic and foreign tourists and investments because of good infrastructure and a dynamic export industry, and serves as gateway to some of the world’s most breathtaking shorelines and nature attractions. Hong Kong, host to many thousands of OFWs, remains an important business hub, shoppers’ paradise, and, with the presence of Disneyland and other theme parks, continues to be a favorite destination among Filipinos. The expanded route of Airphil Express redounds to the benefit of passengers who want savings and convenience in their frequent business and pleasure travels.

“The decision to launch the first Hong Kong flight of Airphil Express from Cebu is an acknowledgment of the valuable business that the province brings into the country in terms of trade and tourism,” says Alfredo Herrera, Airphil Express SVP for Marketing and Sales. The addition of the Cebu-Hong Kong route follows the success of Airphil Express’ launch of its international flight to Singapore in December last year. “We believe that Cebu and Hong Kong are key portals and destinations for Filipino and foreign consumers,” Herrera continues. “Opening that route will offer passengers more opportunities for personal and professional connections, and it’s also a chance for the airline to help expand national growth into the Southern region.”

Another company milestone by the end of July is the arrival of a new A320 in addition to the current six Airbuses as part of Airphil Express’ re-fleeting program. The A320 is one of the most modern airplanes today and ensures increased comfort and safety for passengers. The budget airline also maintains three reliable Q300s and five high-speed Q400s for inter-island travel.

The new Cebu-Hong Kong route and the company’s investment in new aircraft are in service of a continuously growing air travel market. While traffic growth from all Philippine carriers remains at double digits this year, the rise of Airphil Express’ market share has been described as “staggering.” From cornering 2.9 percent of the market share during the airline’s pre-rebranding period in 2009, the carrier’s slice of the domestic market in 2010 grew to 11 percent, representing some 1.9 million passengers on its first full year of operations. With its capacity expansion backed by a $250-million re-fleeting program, the airline is predicted to continue yielding the highest growth rates among other Philippine budget airlines over the next years.

Only a little more than a year old, Airphil Express is already redefining the budget category not just in terms of low airfare but also through value-added services like Web Check-In, Seat Selector, Travel Insurance, and Pre-Paid Baggage, as well as travel extras that deliver better quality travel experience.

Monday, July 18, 2011

JetStar to invest US$500 million in Singapore hub, adds aircraft

Manila Bulletin
July 18, 2011

SINGAPORE (Reuters) – Budget airline JetStar, a unit of Australia's Qantas , plans to invest US$500 million in its Singapore hub, mostly by adding seven Airbus aircraft, Chief Executive Bruce Buchanan said.

JetStar will add five new Airbus A320 single-aisle aircraft and an additional two wide-body Airbus A330 planes at the Singapore operation to support its expansion, the carrier said in a statement.

Competition among Asian budget carriers is heating up with Singapore Airlines , the world's second largest airline by market value, planning to set up a long-haul budget carrier by mid next year.

JetStar competes with Singapore's Tiger Airways , which is grounded by authorities in Australia due to safety issues, as well as Malaysia's AirAsia and some smaller Southeast Asian budget carriers.

Buchanan said the grounding of Tiger only makes a ''small positive impact'' on JetStar's operations due to the small size of Tiger's Australian domestic service.

He told Reuters that the company is aiming to maintain a 20 percent share of the Asia Pacific low-cost carrier market and might need to have as much as 400 aircraft by 2020.

''The total (fleet size of) the low-cost carrier market (in Asia-Pacific) is about 450 aircraft today and we envisage it to grow to in excess of 2,000 aircraft by the end of the decade,'' he said on the sideline of a media briefing in Singapore.

''To maintain 20 percent market share by 2020, we need about 400 aircraft,'' Buchanan added without elaborating when the carrier will start making orders of those aircraft.

JetStar, which operates nearly 80 aircraft in the region, mostly single-aisle A320s, has about an additional fifty A320s and around the same number of Boeing 787 Dreamliners in order.

Buchanan said the delivery of its 787 Dreamliners is still on schedule with the first aircraft coming into service by the end of 2012.

JetStar is in talks with Airbus over the A320neo programme, he said, but declined to say when the company will order the aircraft.

Grounded Tiger offers August refunds

Manila Bulletin
July 18, 2011


SYDNEY (AFP) – Grounded Tiger Airways Australia on Friday agreed to refund all tickets for August, but aviation regulators said the move did not mean the airline was facing further delays in returning to the air.

The carrier has been grounded until at least August 1 by the Civil Aviation Safety Authority (CASA) over ''serious and imminent'' risks linked to pilot proficiency and training, fatigue management and other issues.

It had agreed to refund all July tickets while it awaited permission to fly again, and consumer watchdog chief Graeme Samuel said Tiger Airways Australia had now extended the refund offer for all of August.

''We have managed to secure from them an undertaking that for August flights, where there's still some uncertainty as to whether they will be able to fly, they've agreed to provide some flexibility,'' said Samuel, head of the Australian Competition and Consumer Commission.

''So they're saying to customers now 'if you've booked an August flight you can elect to cancel that flight,'' he told AFP.

Samuel said customers could cancel their flights up to seven days after Tiger resumed flying.

''Undoubtedly a part of that is to try and restore and retain goodwill with customers,'' he said.

CASA said it was a commercial decision and not driven by any developments in the ongoing safety investigation.

''From our point of view we're still working our way through all the issues that we've identified previously and we will continue to do that,'' said CASA spokesman Peter Gibson.

''We've told Tiger we want them grounded until August 1 to complete the investigations and that's the timetable we're working to.''

Tiger was grounded for a month after two flights came into airports too low in June. It had already been on notice to improve its safety performance.

Saturday, July 16, 2011

Boeing 787 Dreamliner completes pre-service testing in Japan for ANA

Manila Bulletin
July 16, 2011

 MANILA, Philippines — As it gets closer to delivering the first 787 Dreamliner, Boeing Co. (BA) said that it had a completed a week of pre-service tests with launch customer All Nippon Airways Co. in Japan.

Designed to mimic actual airplane operations – minus the passengers – the so-called Service Ready Operational Validation saw Boeing and the airline fly a Dreamliner on actual routes throughout Japan, and gave the airline's pilots and operations and maintenance personnel the chance to put the plane through its paces.

Tasks included baggage and cargo loading, parking at gates and simulated maintenance procedures, the companies said. Boeing used Dreamliner test plane No. 2, which is the only one of the six test jets painted in ANA's livery.

"Giving our team a chance to work with the airplane prior to entry into service was very valuable," Katsunori Shimazaki, ANA corporate planning senior manager, said in a statement. "Our crews are excited to begin operating the first 787 revenue flights later this year."

Boeing is expected to deliver the first Dreamliner, more than three years behind schedule, to ANA sometime in August or September. ANA has said it will begin using the new twin-engine wide-body on domestic routes before launching it on international service sometime next year. Last month, ANA officials said the first Dreamliner route would be from Tokyo's Haneda airport to either Okayama or Hiroshima.

The company has 55 of the planes on order, all powered by engines from Rolls-Royce Group PLC.

Before deliveries can begin, however, the Dreamliner must be certified for passenger use in the US by the Federal Aviation Administration. 787's destined for ANA require certification from Japan's aviation regulators.

Separately, on Monday Boeing acknowledged it was halting final assembly of Dreamliners at its factory in Everett, Wash., for about a month to address supply chain issues. Last year, Boeing temporarily held up the assembly line on four separate occasions to correct problems along its global supply chain and to allow some suppliers time and breathing room to catch up. Boeing declined to identify a root cause of this month's production delay--the year's first--but said it would not affect the timing of first customer delivery.

'Government taking steps to address aviation safety concerns'

Philippine Star
July 16, 2011

 MANILA, Philippines - The Philippines has assured the US Federal Aviation Administration (FAA) that the government is taking steps to address the significant safety concerns raised after the country’s aviation safety status was downgraded and Philippine carriers were banned from expanding operations in the US.

Philippine Ambassador to Washington Jose Cuisia Jr. met on Wednesday with FAA officials led by associate administrator for aviation safety Margaret Gilligan.

Among the issues discussed were the Philippine government’s ongoing efforts to reinstate the country’s Category 1 status under the FAA’s International Aviation Safety Assessment (IASA) audit program.

“International aviation safety is a top priority of the Aquino administration,” Cuisia said during the meeting.

The ambassador reiterated that the Civil Aviation Authority of the Philippines (CAAP), under the Department of Transportation and Communications (DOTC), is committed to addressing the significant safety concerns raised by FAA and the International Civil Aviation Organization (ICAO). CAAP has started recruiting qualified technical personnel since March 2010.

Gilligan noted that the high level of political commitment of the Philippine government will help ensure the country’s success in securing the Category 1 status.

She also expressed hope that the Philippines could potentially serve as leader in regional civil aviation in the future, “showing others how it can be done.”

Friday, July 15, 2011

Airphil Express offers student discount

Manila Bulletin
July 15, 2011

 MANILA, Philippines — The fastest growing budget airline, Airphil Express, announces another pioneering offer: 20% student discount on all published fare for domestic routes, including selected promotional fares.

Airphil Express is the first airline to grant the privilege to students who must be currently enrolled. Student travelers who want to avail of the 20% discount are required to present a valid school ID or registration form upon ticket purchase at selected Airphil Express offices. Post-graduate students may also benefit from the student discount program.

“We want to highlight passion for travel, and students are the ones who best exemplify the spirit of adventure and curiosity about life,” explains Alfredo Herrera, Airphil Express SVP for Marketing and Sales. “That’s the reason why we decided to give them discounted rates on top of our already affordable airfare.”

Young people nowadays are more open and curious about exploring their surroundings virtually through the internet, and geographically in world-class destinations with family and friends. The dawn of the budget airline era has enabled more people to start traveling at an early age, the reason why many young people today are better informed about leisure and travel opportunities.

They are also quite savvy when it comes to social networking, which helps direct them to the best deals available.

Travel presents unlimited opportunities for personal development since students are able to broaden their minds even outside the classroom and participate in active recreation, while helping them exercise social responsibility through exposure to cultural diversity and ecological issues.

To ensure trustworthy and safe adventure travel, young passengers are advised to journey with family and friends, seek the help of elders regarding bookings, and communicate respectfully with other cultures during their trip.

Wednesday, July 13, 2011

Safety issues still hound Tiger

The Philippine Star
HIDDEN AGENDA By Mary Ann Ll. Reyes
July 13, 2011 12:00 AM

There had been newspaper reports that Singaporean budget carrier Tiger Airways will launch direct flights between Singapore and Cebu. The latter will be Tiger’s second destination in the Philippines, after Manila.

Tiger has recently been embroiled in controversy, especially after Philippine carriers led by Philippine Airlines, Cebu Pacific, and Air Philippines, complained that Tiger’s marketing arrangement with local carrier Seair basically amounts to exercise of cabotage, a right exclusive to wholly Filipino owned carriers.

But this is not the only issue that Tiger needs to explain, at least to the Filipino people.

International media has reported that Tiger Airways has been grounded by Australian authorities until August, as they continue investigations into safety concerns.

Safety investigators are examining why a navigational database used by Tiger contained the wrong information, causing one of its planes to fly below safe altitude levels.

Last month a Tiger Airbus 320 flew below air traffic control’s lowest safe descent altitude of 2,500 while approaching Melbourne airport.

The pilots failed to notice the navigational mistake when they cross-checked the navigation information with their paper version, but the plane managed to land safely after Air Traffic Control corrected the pilots.

A preliminary report into the Melbourne airport incident from the Australian Transport Safety Bureau has found the error was due to an incorrect altitude in the plane’s commercial navigational database.

A similar incident also happened with a second plane.

Tiger has been thrown into turmoil in recent days, with its chief executive Crawford Rix recently announcing he would resign. His replacement, Tony Davis, is the group president of Tiger Airways Holdings and the man who was sent from Singapore to lead the talks with CASA.

NCIP bucks P-Noy on mining

The 43-member strong Brooke’s Point Tribal Leaders Federation (BPTLF)    representing some 3,000 indigenous people from Palawan are complaining about the fact that the same government office that is tasked to protect their interest is the same one sabotaging it.

This is because the National Commission for Indigenous People (NCIP) has continued to deny the issuance of a certificate of pre-condition (CPC), a social acceptability document for MacroAsia Corp., whose mining operations in the municipality of Brooke’s Point is seen as the people’s last hope for the future future.

President Aquino, in a recent visit to Palawan, has said that he will support whatever is the position of the communities and that while they stand to economically benefit from mining projects, they are also the ones to suffer if anything goes wrong.

But the NCIP seems to have its own agenda. MacroAsia’s CPC has not been acted upon despite the fact that 883 of the 910 registered indigenous families in Brooke’s Point’s six barangays to be directly affected by the operations have already highly recommended the mining project.

According to BPTLF leaders, NCIP chairperson Zenaida Pawid and commissioner Dionesia Banua are obviously hell-bent on withholding or finally denying the document for MacroAsia.

BPTLF president Renila Dulay and vice president Agustin Bacosa, who also heads the Southern Palawan Tribal Communities, are also complaining about how Pawid has been maltreating them.

Believing that the NCIP would continue to delay the issuance of the CPC, the tribal leaders have written President Aquino asking him to finally order the granting of the certificate to MacroAsia. They have also sought the ouster of Banua and reconsider the chairmanship of Pawid.

Twice, in full force, they came to Manila to literally beg on their knees before the NCIP commissioners meeting en banc. On both occasions, they were given the run-around.

They are also complaining that Banua’s husband who holds a driver’s item at NCIP was made a part of the validating team and was the only member who refused to sign the validation report for obvious reasons – he supports his wife-commissioner’s stand not to allow mining in their province.

The CPC serves as the social acceptance document for the mining project which should been issued 15 days upon submission of the report dated April 28, 2010 on the FPIC undertaken in March 2010. The FPIC report has been gathering dust at the office of Banua.

TARLAC said that based on the initial evaluation of their lawyers on the information they got from the BPTLF and newsreport, the NCIP officials could be charged with violations of the Code of Conduct and Ethical Standard for Government Employees (RA 6713) Anti-Graft and Corrupt Practices Act (RA 3019).

For comments, e-mail at philstarhiddenagenda@yahoo.com

Monday, July 11, 2011

Tourism leaders say pocket open skies to favor foreign carriers only

The Philippine Star
By Mary Ann LL. Reyes
July 11, 2011 12:00 AM

MANILA, Philippines - Tourism stakeholders have warned that Executive Order no. 29 or the new pocket open skies policy will give foreign airlines the opportunity to avail of unlimited and unrestricted fifth freedom landing rights in the country even though this has nothing to do with increasing tourist arrival.

Robert Lim Joseph, a tourism industry leader, said tourism stakeholders, including the Tourism Congress which met last June 24 at the Marriott Hotel in Cebu, do not understand the logic behind the granting of unlimited and unrestricted fifth freedom rights to foreign airlines under EO 29 since this would not result in more tourist arrivals.

 “Does anybody know what fifth freedom is? No one understands it yet government inserted it in EO 29 purportedly to boost tourism,” he said.

Among the groups confounded by the so-called fifth freedom is the Tourism Congress, which is the private sector consultative body created by the Tourism Act of 2009 to assist government in the development, implementation and coordination of tourism policies, plans and programs.

Joseph said if the purported goal of EO 29 is to attract more tourists, then the grant of fifth freedom rights to foreign airlines is not the correct policy. Fifth freedom, he said, is focused on allowing foreign airlines to sell tickets to and pick up passengers bound for a third country.

Citing an example, he said foreign airlines granted fifth freedom rights like, say, Singapore Airlines or Malaysian Airlines can now land in Clark, pick up passengers there and fly them to a third country like the United States. The Philippines is the biggest market for US traffic, to and from, in Southeast Asia.

“How can this boost tourist travel when, in fact, you are taking Filipino traffic out of the country,” he pointed out.

Joseph said while most open skies agreements are between two countries with reciprocal exchange of rights, the pocket open skies policy as enunciated by EO 29 offers landing rights to foreign airlines, including fifth freedom rights, “without restrictions on frequency, capacity and type of aircraft.”

“This is the real threat, it is one-sided in favor of foreign airlines,” he stressed. “What is worst, Clark in the future will be the premier airport and the foreign carriers will be lording it over the time slots and frequencies.”

He said the only way to resolve the issue is to delete the fifth freedom provision in EO 29 and insert the word “reciprocity” in the EO or its implementing rules and regulations.

“Our appeal to President Aquino is to remove the fifth freedom provision and insert the word reciprocity in the EO so that our local carriers would be given equal opportunity to compete with foreign airlines,” Joseph said.

Saturday, July 9, 2011

Grounded Tiger Airways pledges 'all steps' to resume flying safely

Manila Bulletin
July 9, 2011, 4:20am

SYDNEY, July 8 (AFP) – The new chief of Australia's grounded Tiger Airways said its Singapore parent was ''absolutely committed'' to the budget carrier and ''everything necessary'' would be done to get it flying again.

Dispatched by Tiger Airways Singapore to take the top job after the former Australian CEO quit this week, Tony Davis said he was confident the airline would by the end of July overcome safety issues which saw it grounded.

''That's the date we've given ourselves, we believe we can do that and anything that needs to be done will be done,'' Davis told ABC TV late Thursday.

''We're committed to resuming services at the end of July, we'll do everything necessary to ensure that happens, and that's the commitment not only of me personally, but of my board and the parent company.''

Tiger Airways Australia has been grounded until at least August 1 by aviation regulators over ''serious and imminent'' safety risks related to pilot training and competency, fatigue management and other issues.

The flight ban followed two recent incidents where flights approached an airport too low. Tiger had already been on notice to improve its performance by Australia's Civil Aviation Safety Authority (CASA).

Davis said the grounding was costing the airline, an Australian offshoot of Tiger Airways Singapore, Aus$2 million ($2.1 million) a week, but he insisted it would recover and had a strong future.

''The board of Tiger Airways is absolutely committed to the airline here in Australia,'' said Davis, until this week the president of parent group Tiger Airways Holdings.

''My appointment is a tangible demonstration of that commitment.''

''We're committed to a long-term future and I think Australians want us to be here to ensure that there is competition in the air sector,'' he added.

In addition to CASA's investigation, Davis said Tiger was conducting a ''comprehensive'' internal review to satisfy itself that its services were ''safe and viable'' and ensure it had a clean slate.

''It's about a fresh start, it's about addressing that anything that needs to be addressed and it's about having a long-term, viable, safe airline here in Australia,'' he said.

Singapore Airlines holds 32.9 percent equity stake in Tiger Airways Holdings, and it has said it has no plans to reduce its share following the Australia grounding.

Grounded Tiger Airways vows 'all steps' to resume flying

The Philippine Star
July 09, 2011 12:00 AM

MANILA, Philippines - The new chief of Australia’s grounded Tiger Airways said its Singapore parent was “absolutely committed” to the budget carrier and “everything necessary” would be done to get it flying again.

Dispatched by Tiger Airways Singapore to take the top job after the former Australian CEO quit this week, Tony Davis said he was confident the airline would by the end of July overcome safety issues which saw it grounded.

“That’s the date we’ve given ourselves, we believe we can do that and anything that needs to be done will be done,” Davis told ABC TV late Thursday.

“We’re committed to resuming services at the end of July, we’ll do everything necessary to ensure that happens, and that’s the commitment not only of me personally, but of my board and the parent company.”

Tiger Airways Australia has been grounded until at least Aug. 1 by aviation regulators over “serious and imminent” safety risks related to pilot training and competency, fatigue management and other issues.

The flight ban followed two recent incidents where flights approached an airport too low. Tiger had already been on notice to improve its performance by Australia’s Civil Aviation Safety Authority (CASA).

Davis said the grounding was costing the airline, an Australian offshoot of Tiger Airways Singapore, Aus$2 million ($2.1 million) a week, but he insisted it would recover and had a strong future.

“The board of Tiger Airways is absolutely committed to the airline here in Australia,” said Davis, until this week the president of parent group Tiger Airways Holdings.

Smart Bro's Cebu, Davao airport kiosks get tablet upgrade

The Philippine Star
July 09, 2011 12:00 AM

MANILA, Philippines - Passengers looking to kill time at the Mactan-Cebu and Francisco Bangoy (Davao) International Airports can now do so in style.

Smart Communications Inc. (Smart) through its subsidiary Smart Bro Inc. (SBI), recently completed its latest round of kiosk upgrades as it replaced old desktop computers with cutting-edge tablet devices.

From today, travelers who would like to “surf before they fly” can get a taste of the tablet lifestyle with a little help from the Apple iPad 2 or the Samsung Galaxy Tab P1000.

Powered by the Smart Bro SIM, the ideal partner for today’s mobile Internet devices — the iPad 2 and the Galaxy Tab — offers everyone a feel of the future of Web surfing. Gone are the days when a good Internet experience is limited to the traditional desktop or laptop computer. With tablets, users can actually “touch” the Web as both devices are equipped with multi-point touch-screen displays.

“The Cebu and Davao terminals are great venues to showcase these technologies,” said Danilo Mojica, head of Smart’s Wireless Consumer Division. “They are two of the busiest airports in the country and so providing both with world-class devices and connectivity makes perfect sense.”

Last year, SBI blanketed the General Santos International Airport in Mindanao with Wi-Fi connectivity.

SBI offers a wide range of products aimed at bringing the power of the Internet to the hands of all Filipinos.

Its most popular product, the versatile Smart Bro Plug It, comes in prepaid and postpaid configurations and boasts of speeds of up to 2Mbps.

With 3G cellsites located throughout Luzon, the Visayas, and Mindanao, Smart’s “nationwidest” coverage ensures the best connection whether one is in the city or in the province.

For more information on Smart Bro offers, visit www.smart.com.ph/bro.

Friday, July 8, 2011

Airlines positioned for big gains in efficiency with new technologies

Manila Bulletin
By SCOTT MAYEROWITZ AP AIRLINES WRITER
July 8, 2011, 4:36am

MANILA, Philippines — Planes are being built out of the same lightweight materials used for Formula 1 race cars. Their engines are being redesigned to squeeze more thrust out of every bit of fuel. And governments are developing air-traffic systems that will allow airlines to fly shorter routes.

Those and other advances have positioned airlines for the biggest gains in fuel efficiency since the dawn of the jet age in 1958. For airlines, more efficient jets will reduce their biggest expense. For passengers, it means fares won't jump around as much with the price of oil.

"We're seeing 25 years of improvements compressed into 10 years,'' says Hans Weber, president of TECOP International, an aviation consulting firm.

Airlines' urgency to reduce fuel use is being driven by two trends: soaring oil prices and tougher environmental regulations.

Pressured by airline executives for improvements, manufacturers have pushed the frontiers of technology by building lighter planes and borrowing essential engine-design advances from the auto industry, like automatic transmissions.

Airplane manufacturers have already reduced fuel consumption twice as much as car and train manufacturers have. In 1980, it took an average of 46 gallons (174 liters) of fuel to fly a passenger 1,000 miles (1,600 kilometers).

Today, it takes 22 gallons (83 liters), according to an AP analysis of Department of Transportation data. Experts say the coming improvements could bring that number below 18 within a decade.

That can't come soon enough for airlines struggling with the rising price of oil.

US airlines lost a combined $1 billion in the first three months of this year, in large part because of a 24 percent spike in fuel costs. A decade ago, fuel accounted for 15 percent of an airline's operating budget. Today, it's 35 percent.

U.S. carriers with European routes face hundreds of millions of dollars a year of additional costs pegged to their fuel consumption starting next year, when the European Union begins limiting how much carbon dioxide airlines are allowed to emit before paying a penalty. The restrictions are expected to cost airlines worldwide $3.3 billion a year. The US airlines are fighting the law in European courts.

With billions of dollars of aircraft and engine orders at stake, manufacturers are turning designs that were dreams only a few years ago into reality.

Boeing and Airbus are both building long-range jets – the 787 Dreamliner and A350, respectively – with half of their bodies made of carbon-fiber composites. The carbon-fiber weighs 20 percent less than traditional aluminum alloy.

But the real revolution will come from the way planes are powered.

Pratt & Whitney and CFM, a joint venture between General Electric and Safran, are unveiling engines that promise to cut fuel use by 15 percent. These engines are designed for single-aisle planes, which account for more than 75 percent of the 22,000 jets worldwide. The engines should save more than $1 million per aircraft per year.

"For the first time, we're seeing a propulsion horserace,'' says Richard Aboulafia, an analyst with the Teal Group.

The PurePower engine from Pratt & Whitney will debut on the new Bombardier CSeries in 2013. Its main technological advance is to add gears – similar to a car's transmission – that will allow different parts of the engine to operate at different speeds. That boosts fuel efficiency and provides the same amount of power as a traditional engine but in smaller, lighter housing.

Malaysia Airlines fights for market

Manila Bulletin
July 8, 2011, 4:38am

KUALA LUMPUR, July 7 (AFP) – Under siege at both the budget and high end of the air travel market, Malaysia Airlines is fighting back with a multi-billion-dollar fleet renewal plan in an effort to secure its future.

Analysts say that in recent years the company has been overshadowed by its aggressive upstart rival, Malaysian budget carrier AirAsia, while Singapore Airlines and others remain formidable competitors in the business sector.

A few years ago Malaysia Airlines was on life support, forced to sell off its headquarters, slash unprofitable routes and fire thousands of staff to avoid bankruptcy.

In 2005 it racked up losses of 1.3 billion ringgit ($386 million) over nine months, a dismal performance that forced the introduction of sweeping reforms which saw the airline swing into the black in 2007.

Now the state-owned carrier is looking to build on the recovery with orders for six long-haul Airbus A380 superjumbos, plus 25 Airbus A330-300s and 45 Boeing 737-800s for regional use, with an option to buy 10 more of the US model. In all, the bill comes to $8.4 billion.

"By 2015, we will have one of the youngest fleets in the world," the flag-carrier's managing director, Tengku Azmil Zahruddin Raja Abdul Aziz told AFP in an interview.

The firm has already received five Boeing 737-800s and three Airbus A330s, while the first A380 will arrive in the second quarter of next year, he said.

The double-decker superjumbos, the world's biggest commercial passenger plane, will be used to serve cities such as London, the airline's most lucrative destination in Europe.

"What we need to do is to be the best airline serving out of Kuala Lumpur," said Tengku Azmil. "That is what we want to do."

The purchases were part of an ambitious "multi initiative strategy" that also includes reducing fuel and maintenance costs and seeking more market share, he said.

"It is a major refleeting programme. The new aircraft will have better fuel efficiency, low maintenance, higher reliability, so we actually will be able to further reduce our unit cost. The aim is to increase the margins."

But aviation experts said Malaysia Airlines faces strong headwinds.

AirAsia, launched less than 10 years ago, now already flies to 78 destinations, with its long-haul arm AirAsia X covering another 11, while 64-year-old Malaysia Airlines has more than 110 airports on its route map.

Other prominent low-cost carriers including Jetstar Asia also serve the region, and Singapore Airlines said in May it plans to launch a new medium- to long-haul budget subsidiary within a year.

At the other end of the market, the city-state's flag-carrier and Hong Kong-based Cathay Pacific are major global operators favoured by business travellers.

Thursday, July 7, 2011

Boeing says India will need 1,320 new planes

MSN Money
By MSN Money staff on Thu, Jul 7, 2011 7:35 AM

NEW DELHI (AP) -- Boeing has forecast a $150 billion market for passenger airplanes in India over the next 20 years driven by a booming economy.

Indian airlines will need to buy around 1,320 new airplanes to meet the demand of an expanding aviation sector, Boeing India President Dinesh Keskar said in a statement Wednesday.

"Robust growth with new economic prosperity among a massive Indian population, discretionary incomes, business progress and access to airports will increase airplane demand," Keskar said.

India's burgeoning middle class has switched from traveling by train to flying as an increasing number of private domestic airlines have opened up over the last decade.

Keskar said Indian carriers were becoming profitable and with the economy expected to maintain its upward trend, both air travel and air cargo markets would grow.

This year's outlook is more optimistic than last year's market outlook which had predicted that India would require 1,150 new aircraft worth $130 billion over the next two decades.

Apart from the private airlines, others including state-owned Air India are looking for replacement airplanes as they retire aging and less-efficient jets.

At present one in 200 Indians flies just once a year. That figured is expected to grow exponentially, with the domestic market recording the highest growth rate for aviation globally, according to aviation experts.

In January, budget airline Indigo signed a mega $15.6 billion deal for 180 A320 aircraft from Airbus Industrie, an order the European aircraft manufacturer hailed as the biggest single order in terms of the number of jets in aviation history. Airbus plans to deliver the jets between 2016 and 2025.

Apart from passenger aircraft, India is also shopping for military planes.

In June, India signed an agreement to purchase 10 Boeing's C-17 Globemaster III cargo and troop-carrying planes, making India the biggest foreign buyer of the aircraft.

The planes are expected to be delivered to India's air force in 2013 and 2014.

Wednesday, July 6, 2011

Government urged on open skies

Manila Bulletin
By MARS W. MOSQUEDA JR.
July 6, 2011, 3:28pm

DUMAGUETE CITY, Philippines — A travel industry advocate and co-convenor of the Fair Trade Alliance (FTA) Wednesday called for an amendment in the implementing rules and regulations (IRR) of Executive Order 29 or “pocket open skies” given to international aviation.

Robert Lim Joseph, chairman of the Travel Cooperative of the Philippines, said the government should amend the IRR of EO 29 and put the word “reciprocity” for the emphasis of equality and mutual exchange.

Joseph warned that the EO 29, instead of bringing more tourists and investments in the country, would instead bring immediate competition based on the reaction of domestic carriers.

EO 29, which was issued by President Benigno Aquino III on March 14 would entitle foreign airlines to have easy access to land and takeoff in select international airports outside Metro Manila.

He said the order will grant the third, fourth, and fifth air freedom rights to foreign carriers. There are nine air freedom rights according to the Regulation of International Air Transport. These are a set of commercial aviation rights granting a country’s airline the privilege to enter and land in another country’s airspace.

The first allows the foreign carrier to pass over a country without landing. The second allows it to refuel and carry out repairs on the way to another country. The third to fly from one’s own country to another.

The fourth will allow the foreign carrier to fly from another country to one’s own country while the fifth air freedom right gives the foreign carrier to fly between two foreign countries during flights while the flight originates or ends in one’s country.

Joseph said the government’s original intention is to increase tourist arrivals and investments in the country by liberating the aviation industry. There will be immediate competition as per reaction to domestic flights.

“Allowing 5th freedom rights to foreign carriers will bring passengers out instead of into the Philippines,” he said.

Joseph said EO 29, which promotes pocket open skies, was also considered as a one-sided offer to foreign air carriers.

Joseph said the term “national interest” in the IRR could not guarantee protection to local carriers as it could give different interpretations and the whims of those in the air panel.

He said tourists instead will be flying out, which may limit the chances of promoting local destinations.

He said domestic carriers like Cebu Pacific Air and Philippines Airlines would be challenged once foreign airlines also provide their services to fly into different airports in country.

Hong Kong Airlines opens half-price luxury route to London

M & G News
Jul 6, 2011, 4:11 GMT

Hong Kong - Hong Kong Airlines Ltd was to launch an all-luxury route to London, undercutting rivals' business-class prices by more than half, a news report said Wednesday.

Three Airbus 330-200 planes equipped only with 18 first- and 98 business-class seats are to begin flying the route in March to cater to the growing number of affluent Chinese leisure travellers, the South China Morning Post reported.

A return business-class fare was to be around 20,000 Hong Kong dollars (2,564 US dollars), compared with around 51,370 Hong Kong dollars for the same trip on Cathay Pacific Airways Ltd.

'We believe traditional executive travellers in the business cabin have dropped off and will never come back to their previous level, especially from Europe and the United States,' Hong Kong Airlines spokeswoman Eva Chan was quoted as saying.

'However, the pleasure and leisure travellers from mainland China have shown a growing appetite for premium traffic in light of the growth of China's economy,' she said.

The airline, which is controlled by China's HNA Group Co Ltd airline and hotel group, said 60 to 70 per cent of its existing passengers are from China.

The carrier currently operates flights to Chinese and Asian destinations and has a single European destination, Moscow.

Five airlines currently fly between Hong Kong and London: Cathay Pacific, British Airways Plc, Virgin Atlantic Airways Ltd, Qantas Airways Ltd and Air New Zealand Ltd.

'We just want to provide an affordable price for premium traffic while providing top-class service,' Chan said. 'We are not a budget airline.'

AirAsia to boost record Airbus order to 300 new planes

Manila Bulletin
By LIAU Y-SING and RAJU GOPALAKRISHNAN
July 6, 2011, 9:20pm

KUALA LUMPUR, July 6 (Reuters) – AirAsia Bhd will buy an extra 100 Airbus A320neo jets, taking its record-breaking order to 300 planes, a source said, a deal which would make the Malaysia-based budget airline one of the world's largest carriers.

The two sides announced an $18.2 billion deal for 200 planes at the Paris Air show last month, shattering aviation records for the largest ever airline order. The additional order takes the list price of the contract to a staggering $27 billion.

The bumper order highlights Airbus' growing lead over Boeing and throws the spotlight on AirAsia's aggressive growth plans at a time when high oil prices and an uncertain global economy are clouding the outlook for travel demand.

Analysts expect the extended order to drive AirAsia's expansion as it competes with carriers such as India's IndiGo, Singapore's Tiger Airways and Australia's Jetstar .

''AirAsia had the first-mover advantage and it continues to stay ahead of the game by ordering fuel-efficient planes and keeping the size growing,'' said an aviation analyst with a Malaysian investment bank who declined to be identified due to company policy.

''But the key risk is if expansion plans do not succeed. The Malaysian base is fairly saturated so if the other markets do not grow or cannot take off because of protectionism or other factors, then they will find themselves having to manage a lot of aircraft,'' the analyst said.

Like the previous order, the additional 100 planes would also carry CFM International engines, the source with direct knowledge of the deal said, declining to be identified because the deal is not public yet.

The source said AirAsia would receive a discount for the entire order, but did not give further details.

The schedule for deliveries of the latest batch of the A320neo planes will be at the discretion of AirAsia, the source added, without giving a timeline.

The initial order of 200 planes will be delivered from 2016, as Air-Asia seeks to reap the benefits of being based near the two fastest-growing aviation markets in the world -- India and China.

The A320neo is a version of Airbus's best-selling 150-seat passenger jet offering fuel savings with new engines from 2015.

Asian budget airlines placed a record $42 billion in plane orders during the Paris Airshow, signalling their high expectations for travel in the world's fastest growing market and also triggering worries some may not survive.

Tiger Airways stops selling tickets

Manila Bulletin
July 6, 2011, 9:30pm

SYDNEY, July 6 (AFP) – Grounded Australian budget carrier Tiger Airways stopped selling tickets Wednesday after the airline came under pressure from the consumer regulator over its ability to deliver flights.

Australian Competition and Consumer Commission (ACCC) chief Graeme Samuel was tight-lipped on whether he was considering legal action against the carrier after it continued to sell tickets for next week in defiance of his warnings.

Tiger was banned from flying domestically last Saturday until this weekend by aviation regulators over ''serious and imminent'' safety risks and could face a more prolonged grounding if a court order is sought.

But Samuel said Tiger continued to sell flights until late Tuesday for next week without caveats – the earliest just hours after the ban expires -- despite having no certainty that it would be allowed to fly.

''We had said publicly that they could continue to sell tickets only so long as they had a reasonable expectation of being able to provide the flights that they were selling tickets for,'' Samuel told AFP.

''It's a pretty simple proposition. If you don't think you can supply the flights then you shouldn't be selling the tickets.''

The carrier posted a notice on its website Wednesday saying ''flights have been temporarily removed from sale'' due to its grounding by the Civil Aviation Safety Authority (CASA).

''Discussions with CASA regarding a resumption of services are ongoing and constructive,'' Tiger said, referring to crisis talks in Melbourne.

Samuel would not be drawn on whether the ACCC believed Tiger had breached trade laws, for which it could be fined more than Aus$1.1 million (US$1.17 million), saying only that they were in ''continual and constant communication''.

Tuesday, July 5, 2011

Tiger Airways chiefs in Australia for crisis talks after grounding

Manila Bulletin
By MARTIN PARRY
July 5, 2011, 1:04am

SYDNEY, July 4 (AFP) – Senior Tiger Airways executives were to hold crisis talks with aviation regulators in Australia Monday as the budget carrier attempts to allay safety fears and return to the skies.

Tiger Airways Australia, a subsidiary of Singapore's Tiger Airways, was grounded for five working days on Saturday by Australia's Civil Aviation Safety Authority (CASA) for posing a ''serious and imminent risk to air safety.''

It is the first grounding of an entire fleet in Australian aviation history and group president and chief executive Tony Davis has been given the responsibility of getting planes back in the air.

In a statement to the Singapore Stock Exchange, Tiger said Davis had been instructed to focus on ''assisting Tiger Airways Australia to resume operations as soon as possible.''

Chin Yau Seng, previously divisional vice president of cabin crew operations at Singapore Airlines, was appointed an additional executive director from July 4.

''The company reassures its customers that safety has been and will continue to be of paramount importance,'' Tiger said, stressing that only Australian domestic services were affected and not flights to Singapore.

In a sign it is confident of returning to normal services, the airline is still taking bookings and accepting payments for domestic flights from Saturday – the day the suspension is due to expire.

CASA can only ground an airline for five working days. If it wants to go any longer than that it must approach the Federal Court.

The regulator said its next move would depend on what Tiger brings to the table.

''That (meeting) will obviously be an important step in the process of investigating the recent several incidents and also canvassing the broader safety issues which we've raised with them,'' said CASA spokesman Peter Gibson.

''We certainly can't rush matters but on the other hand we do appreciate the public's frustration at not being able to know how long this will go on for.''

Australian authorities have been closely monitoring the airline and issued a ''show cause'' notice in March threatening to vary, suspend or cancel its licence over safety worries.

It was ordered to improve the proficiency of its pilots, boost pilot training and checking procedures, address fatigue management issues and ensure ''appropriately qualified people fill management and operational positions.''

Tiger Airways, Australian agency in crisis talks

The Philippine Star
July 05, 2011 12:00 AM

SYDNEY (AP) — Tiger Airways executives were holding crisis talks with officials from Australia’s air safety watchdog yesterday after the regulators grounded all Australian domestic flights of a Tiger subsidiary over safety concerns.

The meeting with Australia’s Civil Aviation Safety Authority comes two days after the agency announced that Tiger Airways Australia’s entire domestic fleet of 10 airliners was grounded for five business days, a move that affects about 35,000 passengers.

The Australian safety regulators said the budget airline twice flew under the minimum allowed altitude, prompting concerns that the carrier posed a serious and imminent risk to air safety. The grounding will cost the airline $S2 million ($1.63 million) a week, Singapore-based Tiger Airways Holdings Ltd. said.

Tiger Airways Holdings CEO Tony Davis, who was expected to attend yesterday’s meeting, said he does not believe there are immediate safety risks.

“Clearly we want to make sure that our services are as safe as they possibly can be and clearly when CASA has concerns, we have to take those seriously,” Davis told Australian Broadcasting Corp. “But we think that the specific issues that they’ve raised with us are still under investigation.”

Safety authority spokesman Peter Gibson said the meeting will focus on the two incidents in which Tiger is accused of flying too low on approaches to Australian airports. The authority also plan to discuss broader safety concerns it has with the airline.

It’s unlikely the meeting will result in a quick resolution, Gibson said.

If by the end of the week there are still lingering concerns, the safety authority will go to the Federal Court to seek an extension of the grounding, Gibson said. It was impossible to predict the likelihood of that happening, he said.

“I know that’s frustrating to passengers and we certainly apologize for that, but our focus has got to be primarily on safety,” he said.

Tiger, the fourth-largest domestic airline in Australia, is refunding the fares of passengers whose flights have been canceled.

In a statement, the airline said it is cooperating fully with the safety agency.

Tiger is 49 percent owned by national carrier Singapore Airlines Ltd. and 11 percent owned by state-owned investment company Temasek Holdings.