IATA Cuts 2010 Loss Forecast in Half – Strong Start to 2010

Geneva – The International Air Transport Association (IATA) halved its loss forecast for 2010 to US$2.8 billion (compared to the US$5.6 billion loss forecast in December 2009). The improvement is largely driven by a much stronger recovery in demand seen by year-end gains that continued into the first months of 2010. Relatively flat capacity translated into some yield improvement and stronger revenues.

IATA also lowered its 2009 loss estimate to US$9.4 billion from the previously forecast US$11.0 billion loss.

Improvements are driven by economic recovery in the emerging markets of Asia-Pacific and Latin America whose carriers posted international passenger demand gains of 6.5% and 11.0% respectively in January. North America and Europe are lagging with international passenger demand gains of 2.1% and 3.1% respectively for the same month.

“We are seeing a definite two-speed industry. Asia and Latin America are driving the recovery. The weakest international markets are North Atlantic and intra-Europe which have continuously contracted since mid-2008,” said Giovanni Bisignani, IATA’s Director General and CEO.

Forecast highlights include:

Improving Demand: Passenger demand (which fell by 2.9% in 2009) is expected to grow by 5.6% in 2010. This is an improvement on the previous forecast in December of 4.5% growth.  Cargo demand (which fell by 11.1% in 2009) is expected to grow by 12.0% in 2010. This is significantly better than the previously forecast 7.0% growth.

Load Factors: Airlines kept capacity relatively in line with demand throughout 2009. A strong year-end recovery pushed load factors to record levels when adjusted for seasonality. By January the international passenger load factor was 75.9% while cargo utilization was at 49.6%.

Yields: Tighter supply and demand conditions are expected to see yields improve—2.0% for passenger and 3.1% for cargo. This is a considerable improvement from the precipitous 14% fall experienced by both in 2009.

Premium Travel: Premium travel, while slower to recover than economy travel, now appears to be following a cyclical recovery in volume terms. But it is still 17% below the early 2008 peak. Premium yields, which are 20% below peak, may be suffering a structural shift.

Fuel: With improved economic conditions, the price of fuel is rising. IATA raised its expected average oil price to US$79 per barrel from the previously forecast US$75. That is an increase of US$17 per barrel on the US$62 average price for 2009. The combined impact of increased capacity and a higher fuel price will add US$19 billion to the industry fuel bill bringing it to an expected US$132 billion in 2010. As a percentage of operating costs, this represents 26%, up from 24% in 2009.

Revenues: Revenues will rise to US$522 billion. That is US$44 billion more than previously forecast and a US$43 billion improvement on 2009.

“Revenues are half-way to recovery—US$42 billion below the 2008 peak and US$43 billion above the 2009 trough. Important fundamentals are moving in the right direction. Demand is improving. The industry has been wise in managing capacity. Prices are beginning to align with the costs—premium travel aside. We can be optimistic but with due caution. Important risks remain. Oil is a wild-card, over-capacity is still a danger, and costs must be kept under control—throughout the value chain and with labor,” said Bisignani.

Regional differences in airlines prospects are sharp:

• Asia-Pacific carriers will see the US$2.7 billion 2009 loss turn to US$900 million in profits on the back of a rapid economic recovery being driven by China. Cargo markets are particularly strong with long-haul cargo capacity for shipments originating in Asia experiencing a capacity shortage. Demand is expected to grow by 12% in 2010.
• Latin American carriers will post an US$800 million profit for the second consecutive year. The region’s economies are less debt-burdened than the US or Europe. Economic ties to Asia helped isolate the region from the worst of the financial crisis. Carriers in parts of the region have benefitted from liberalized markets which have facilitated some cross-border consolidation, giving greater flexibility to deal with changing economic conditions. Demand is expected to grow by 12.2% in 2010.
• European carriers will post a US$2.2 billion loss—the largest among the regions. This reflects the slow pace of economic recovery and faltering consumer confidence. Demand is expected to grow by 4.2% in 2010. Intra-European premium travel is expected to recover more slowly. In December it remained 9.7% below previous year levels.
• North American carriers will post the second largest losses at US$1.8 billion. The jobless economic recovery continues to burden consumer confidence. Demand is expected to improve by 6.2% in 2010. But with intra-North America premium travel still down 13.3% as of December, the region remains in the red.
• Middle East carriers are expected to experience demand growth of 15.2% in 2010, but will see losses of US$400 million. Low yields in long-haul markets connected over Middle East hubs is a burden on profitability.
• African carriers are likely to post a US$100 million loss for 2010, halving 2009 losses. Demand is expected to improve by 7.4%. But this will not be sufficient for profitability as they continue to face strong competition for market share.

Structural Adjustments

“The stark contrast between profitability among Asian and Latin American carriers while losses continue to plague the rest of the industry clearly demonstrates the fact that airlines have not been able to develop into global businesses. The restrictions of the bilateral system prevent the kind of cross border consolidation that we have seen in industries such as pharmaceuticals or telecoms. Airlines are battling the challenges of the financial crisis without the benefit of this important tool. It’s time for change,” said Bisignani.

In November 2009, IATA’s Agenda for Freedom initiative facilitated the signing of a multi-lateral statement of policy principles focused on liberalizing market access, pricing and ownership. Seven governments (Chile, Malaysia, Panama, Singapore, Switzerland, the United Arab Emirates and the United States) and the European Commission signed the document. Kuwait joined the group by endorsing the principles in March.

“The second stage talks between the US and Europe are the big opportunity for 2010. The slow recovery in both regions should be an invitation for change. Liberalizing ownership would boost both markets. Even more importantly, as these markets combined represent about 60% of global aviation it would send a strong signal for global change. Brands, not flags, must guide the industry to sustainable profitability. That cannot happen until governments throw away the outdated restrictions of the bilateral system,” said Bisignani.

Airbus Foundation Coordinates Chile Relief in TAM A319 Ferry Flight

Humanitarian supplies collected by the Red Cross and General Consulate of Chile in Hamburg lands in Chile at 10:30 p.m., March 9; LAN Airlines facilitates local logistics in Santiago

In response to the devastating earthquake that struck Chile February 27, Airbus coordinated with Brazilian-based TAM Airlines and Chilean-based LAN Airlines to send three tons of aid to Santiago. The TAM A319 ferry flight filled with humanitarian supplies landed in Sao Paulo on March 9. TAM then transferred the aid to a Santiago-bound A320 flight.

Over the weekend, an Airbus team in Hamburg loaded TAM’s A319 ferry flight with hygienic supplies, blankets and plastic water canisters (for storing and transporting fresh water) collected by the Red Cross and General Consulate of Chile in Hamburg.

Tom Enders, President of the Airbus Foundation and President and CEO of Airbus, said: “The Airbus Foundation together with TAM Airlines identified an opportunity to send humanitarian aid to Chile aboard a TAM Airlines A319 ferry flight this week to support the international relief effort. Many people came together in record time to make this work, including TAM Airlines, which agreed to have their A319 ferry flight filled with humanitarian aid and then transfer it to Santiago; the Red Cross and General Consulate of Chile in Hamburg, which collected tons of vital relief supplies; and LAN Airlines, which agreed to accept goods in Santiago’s International Airport and coordinate necessary logistical requirements. I thank all our partners, our friends and the employees involved for their excellent cooperation.”

In recent years, Airbus has built up a global network of airlines and relief organizations to support international humanitarian help. Ferry flights of new aircraft have been used on numerous occasions to transport goods all over the world.

Source: EADS

France warns US on Airbus deal.

PARIS – France warned the United States on Tuesday that Europe will study the “possible implications” of a Pentagon decision to skew bidding for a contract to supply tanker jets in favour of a US firm.

US giant Boeing is poised to win the 26-billion-euro defence deal after partners EADS and Northrop Grumman dropped out, citing changed Pentagon requirements, in a decision that has already provoked EU anger.

France, home to EADS’ subsidiary Airbus that was to have made the planes, added its voice to protests, accusing Washington of foregoing a chance to buy a better and cheaper plane that in 2008 had been frontrunner for the deal.

“We note with great disappointment that the call for tenders made by the Pentagon on February 25 de facto forced the US authorities into a dialogue with a single supplier,” foreign ministry spokesman Bernard Valero said.

Paris said the change in the contract requirements, which penalised the larger Airbus jet in favour of a smaller Boeing one, had been done “to the detriment of competition, guarantor of best capability and best price.”

“We regret the US air force has denied itself the capabilities of the Airbus A330 Multirole Transport and Tanker, upon which Northrop and EADS’ bid was based, the qualities of which were recognised by the Pentagon in 2008.”

Valero noted that France, Britain, Australia, Saudi Arabia and the United Araba Emirates had chosen the A330 and would receive deliveries in 2010.

“France, with the European Commission and its European partners will examine this new development and its possible implications,” he warned, implicitly suggestion that Europe could take measures in response.

Source: business.maktoob.com

EADS Reports 2009 Results

Boeing ‘Phantom Eye’ Hydrogen Powered Vehicle Takes Shape

ST. LOUIS, March 8, 2010 — The Boeing Company [NYSE: BA] has begun to build Phantom Eye — its first unmanned, liquid-hydrogen powered, high altitude long endurance (HALE) demonstrator aircraft.

“The essence of Phantom Eye is its propulsion system,” said Darryl Davis, Boeing Phantom Works president. “After five years of technology development, we are now deploying rapid prototyping to bring together an unmanned aerial vehicle [UAV] with a breakthrough liquid-hydrogen propulsion system that will be ready to fly early next year.”

Phantom Eye’s entire propulsion system — including the engine, turbo chargers and engine control system — successfully completed an 80-hour test in an altitude chamber on March 1, clearing the way for the propulsion system and UAV to be assembled.

The twin-engine Phantom Eye demonstrator will have a 150-foot wingspan and be capable of flying for more than four days at altitudes up to 65,000 feet while carrying a payload of up to 450 pounds. Phantom Eye is designed to maintain a persistent presence in the stratosphere over a specific area, while performing missions that could include intelligence, reconnaissance, surveillance and communication. Boeing also is developing a larger HALE that will stay aloft for more than 10 days and carry payloads of more than 2,000 pounds, and building “Phantom Ray,” a fighter-sized UAV that will be a flying test bed for advanced technologies.

“We believe Phantom Eye and Phantom Ray represent two areas where the unmanned aerial vehicle market is heading, and rapid prototyping is the key to getting us there,” said Dave Koopersmith, Advanced Boeing Military Aircraft vice president. “These innovative demonstrators reduce technology risks and set the stage for meeting both military and commercial customers’ future needs.”

Phantom Eye evolved from Boeing’s earlier success with the piston-powered Condor that set several records for altitude and endurance in the late 1980s. Boeing, as the Phantom Eye system designer, is working closely with Ball Aerospace, Aurora Flight Sciences, Ford Motor Co. and MAHLE Powertrain to develop the demonstrator.

Phantom Ray evolved from the X-45C program. It is scheduled to make its first flight in December.

Source: Boeing

Police Air Support Devon & Cornwall Police takes delivery of a new EC145 helicopter

On Friday 5th March the Devon & Cornwall Police took delivery of a new EC145 helicopter. This most modern machine was customised at Eurocopter UK in Oxford to meet the demanding needs of the modern police service. It is equipped with the latest aids to police reconnaissance and airborne crime fighting. Included is a state-of-the-art Infra Red camera, sophisticated video viewing and recording equipment, and night vision goggles which enable the crew to see at night almost as well as in the day.

This EC145 was ordered in September 2007, after the police aviation specialists had assessed all the competition, as the finest helicopter available to serve the public of Devon and Cornwall. It replaces another Eurocopter helicopter, the earlier BK117 which has seen sterling service for over 12 years. The Devon and Cornwall Police are pioneers of police aviation in the UK and have operated helicopters in support of police activities for more than 25 years.

The introduction into service of this new EC145 by the Devon & Cornwall Constabulary, due to its increased load carrying capacity, represents a further major development of the use of Eurocopter products as a cost-effective and flexible application of helicopters in support of future police ground operations and strategy. It is capable of 2 crew operation, a pilot and an observer who can operate either out of the cockpit or in the cabin of the helicopter.

Eurocopter products represent 75% of the UK police helicopter fleet in service and have proven to be the favourite solutions for police air support all across Europe. The EC145 is a top performer in police and homeland security missions, is also operated by the Metropolitan Police and features high commonality with its slightly smaller sister the EC135. Furthermore, it is under delivery to the U.S. Army as its new-generation Light Utility Helicopter (LUH).

Markus Steinke, Managing Director of Eurocopter UK, stated, “It is a pleasure to see the UK police force community moving forward and shaping the future. Our products and services which have become the backbone of the UK air support for many decades will be ready to accompany the evolutions of our customers’ needs.”

Source and picture: Eurocopter

Financial suppport for new Fokker Aircraft

The Dutch ministry of finance has reserved a credit of 20 million Euros for the development of a new Fokker aircraft.

NG Aircraft is allready working at this plan for a year and a half and thinks the first aircraft can be ready in five years.

The goal is to develop an aircraft that is far less damaging for the environment than comparable aircraft. The European comity still has to approve the State-support.

Source: NOS

 

Airbus A380 flies the flag for the International Year of Biodiversity 2010

Leading aircraft manufacturer Airbus is showing support for the United Nations International Year of Biodiversity by featuring the official logo on its largest passenger aircraft – the A380.

In addition to pioneering greener flight, to which the flagship A380 pays testimony, Airbus is using its global outreach to back the UN Secretariat of the Convention on Biological Diversity’s (CBD) Green Wave initiative, designed to educate young people about the importance of biodiversity, its role in their future and the steps they can take to nurture the nature around them.

Rainer Ohler, SVP Public Affairs & Communications said: “The aviation sector remains committed to tackling the two percent it contributes to manmade carbon dioxide emissions, having already reduced aircraft emissions by 70 per cent and noise by 75 per cent in the last 40 years. However, as a global company, Airbus is also committed to using its global outreach to support those tackling the other 98 per cent of emissions. Both commitments are key to a more sustainable world, where growth in air travel need not be inconsistent with preserving the environment. This is why Airbus is supporting the CBD and backing the Green Wave, to make this global campaign as far reaching as possible.”

The A380 will carry the logo throughout 2010 during its scheduled activities. Developed as the most efficient airliner ever conceived, the A380 symbolises the aviation industry’s determination to balance growth in air travel with a commitment to minimise its carbon footprint. The A380 has set a new benchmark for fuel consumption at less than three litres per 100 seat kilometres (km), corresponding to less than 75g of CO₂ per passenger per km.

An Airbus A380 carries the logo of the International Year of Biodiversity 2010. The aircraft manufacturer is working in partnership with the UN Secretariat of the Convention on Biological Diversity (CBD) to build awareness of the importance of biodiversity through the CBD’s Green Wave initiative.

Cessna Delivers 9000th Independence-Produced Single-Engine Piston

WICHITA, Kan., March 4, 2010 – Cessna Aircraft Company, a Textron Inc. (NYSE: TXT) company, announced today it has delivered the 9,000th Independence, Kan.-produced single-engine piston aircraft.

Cessna customer Rob Logozio took delivery of this milestone aircraft, a 182T Skylane, during a small ceremony at Cessna’s Independence facility. Logozio purchased his 2010 Skylane from Cessna Sales Team Authorized Sales Representative Panorama Flight Service, Inc., located in White Plains, N.Y., at the Westchester County Airport.

The first Independence-produced single-engine piston came off the line in November 1996 following Cessna’s 10-year hiatus from producing single-engine piston aircraft. Cessna had ceased production in the mid-1980s due to rising liability costs and resumed production after the 1994 passage of the U.S. General Aviation Revitalization Act.

In total, Cessna has produced more than 154,000 single-engine pistons since the company’s founding in 1927.

The Cessna 182 and Turbo 182 Skylane is a four-place single-engine, high-wing piston aircraft featuring a Textron Lycoming IO-540 engine, advanced Garmin G1000 avionics and a range of more than 900 miles. When fitted with a turbocharger, the top speed jumps from 150 knots to 176 knots, or about 202 mph.

Cessna produces the Skyhawk, Skylane, Stationair, Corvalis, Corvalis TT and Citation Mustang at its facility in Independence, located southeast of the company’s headquarters in Wichita.

Jindal Steel & Power Ltd Takes Delivery Of An AW139 Helicopter

AgustaWestland, a Finmeccanica company, is pleased to announce that Jindal Steel & Power Ltd (JSPL) of India has taken delivery of an AW139 medium twin helicopter. The aircraft configured with a 12 seat cabin will be used for corporate transport purposes in the Delhi and Chhattisgarh areas. The handover of JSPL’s AW139 further expands the presence of the world best selling helicopter in its class in the Indian helicopter market where AgustaWestland has already sold almost ten AW139s for VIP/corporate transport and offshore transport purposes. AgustaWestland’s presence in the Indian commercial helicopter market has grown strongly in recent years, with the sale of over 30 aircraft including the AW119Ke single engine, the AW109 Power and the Grand light twins and the AW139 medium twin helicopters.

Kuwait probes suspected graft in airline

KUWAIT CITY – Communications Minister Mohammad al-Baseeri said on Tuesday he has formed a committee to probe allegations of widespread corruption in Kuwait Airways Corp. which is soon to be privatised.

“Last week, I formed a committee to investigate alleged financial and administrative violations in KAC. I gave the panel two months to complete the probe,” Baseeri told parliament during a debate.

Baseeri, whose ministry has responsibility for the airline, acknowledged “administrative corruption and financial wrongdoing” in the loss-making national carrier which parliament voted two years ago to privatise.

The minister vowed he will refer the findings of the investigation to the public prosecutor for criminal action.

Several MPs charged that many violations have been committed by KAC management, especially in the past two years when the legislation was passed to privatise the carrier.

“There has been a programmed theft of KAC so it will be sold at a very cheap price. KAC has become an example for corruption,” opposition MP Saifi al-Saifi said.

Under the privatisation law, KAC will be transformed into a private company with a 35-percent stake to be sold at auction to foreign or local investors and 40 percent to be sold to Kuwaiti citizens in an initial public offering.

Twenty percent will be reserved for state-run institutions and the remaining five percent will be distributed for free to the Kuwaiti employees.

The law stipulates that the privatisation process must be completed within a period of two years which ends later this month.

Two foreign consultancy firms have evaluated the assets of the airline and its subsidiaries.

The airline, which has incurred almost 2.5 billions dollars in losses during the past 19 years, has repeatedly come under fire from MPs who have accused it of squandering public funds.

The airline has a fleet of 15 Airbus and two Boeing aircraft which it bought in the early 1990s.

Source: business.maktoob.com

Eurocopter gears up to strengthen partnerships with Indian industry Strong presence at India Aviation 2010

Hyderabad, INDIA AVIATION 2010
Eurocopter, the global leader in helicopter manufacturing, is showing a strong presence at India Aviation 2010, the second edition of the international exhibition on Civil Aviation Sector. This event, being organized by the Indian Ministry of Civil Aviation, sees Eurocopter presenting its range of commercial helicopters and latest technology.

As Norbert Ducrot, Eurocopter Senior Vice President Sales & Marketing Asia Pacific points out, “With plans to establish flying ambulances, faster transport services to tourist destinations and religious places, and set up heliports in Delhi and Mumbai, the helicopter has a busy time ahead. As always, we at Eurocopter are set to bring in our expertise to support the growth of the Indian aerospace industry. “

Eurocopter currently has a fleet of 72 civil helicopters flying in India. Eurocopter covers about 50 percent of the oil & gas segment, with a majority of its aircraft being in service with Pawan Hans and Indocopters.

“For us, it is a very exciting time with respect to the Indian market. We plan to take our relationship with the Indian civil sector to the next level through several partnership agreements planned with our partners like Pawan Hans over the next few months. Our ambition is to largely increase our footprint in India to accompany the fast development of the helicopter services,“ added Mr. Ducrot, elaborating on Eurocopter’s plans for India.

Eurocopter expects the commercial sector around corporate and VIP transport to grow rapidly in India. Its newly designed Stylence range perfectly meets the Indian requirements. The second area of visible growth in India will be the Oil & Gas industry, which will create a need for medium range helicopters like the EC155 and AS365N3 or longer-range like the EC225. The field of Emergency Medical Services (EMS) as operated by helicopters will also emerge in a rather short time span. With more than 60% of the world EMS helicopter fleet, Eurocopter is committed to invest in the Indian market and to share its experience. Finally, with the powerful, reliable and cost-effective AS350B3, Eurocopter is a strong leader in the world for Utility missions. This helicopter is also perfectly adapted to Indian utility missions’ requirements. Therefore, thanks to its high-performing and easily adaptable range of products – the largest in the world – Eurocopter can fulfill all the needs of India, whatever the mission requirements are.

Flying high on the international success of this range, Eurocopter will be showcasing specifications and mock-up models of reference products like EC155 and EC175, the latest member of the Eurocopter family. Eurocopter’s long-term partner, Indocopters, will have an EC120 displayed on their booth. Flight demonstrations of the EC135 will also be conducted for existing and potential clients.

EC 175
The Eurocopter EC 175 medium twin helicopter made its first maiden flight in December 2009. This program milestone, planned for late 2009, was thus achieved on schedule. The EC 175’s radius of action offshore is 270 nm at ISA+20 and it has a top cruise speed of about 135 knots. The main gearbox has the capability to fly for 30 minutes after total loss of oil. Targeted primarily at the offshore oil market, the EC 175 offers 16 passenger seats. The Pratt & Whitney Canada PT6C-67E-powered rotorcraft is a 50-50 joint program with China’s Avicopter. EASA certification for this helicopter is pegged for 2011.

EC 155
The Eurocopter EC 155 medium-lift twin engine helicopter is a development of the AS 365N Dauphin 2, with 40% larger cabin area, new rotor and ‘glass cockpit’. In the medium/twin segment, the Dauphin family is looked upon as a key player thanks to its very high flight speed and long range. The spacious cabin, unrivalled flight comfort and remarkable autopilot raise the EC155 B1 to the standards of an airliner or a business jet. In India, leading corporations have become the latest members of this selected world club by acquiring the coveted EC155 helicopters.

Source: Eurocopter

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