Australia has joined a growing list of countries to approve operations of the Boeing 737 MAX.
The countries safety regulator the Civil Aviation Safety Bureau lifted the ban Friday, February 26, 2021 for operations to or from Australia.
CASA said that while no Australian airlines currently operate the Boeing 737 MAX, two foreign airlines flew these aircraft types to Australia before the COVID-19 pandemic – Singapore-based SilkAir (now Singapore Airlines) and Fiji Airways.
CASA’s Acting CEO and Director of Aviation Safety, Graeme Crawford said the initial suspension had been in the best interests of aviation safety.
“CASA was one of the first civil aviation regulators in the world to suspend Boeing 737 MAX operations. We took early action based on the information we had to ensure our skies remained safe while the cause of the accidents was investigated,” Mr. Crawford said.
“We have accepted the comprehensive return-to-service requirements specified by the FAA as State of Design for the 737 MAX and are confident that the aircraft is safe.
“Our airworthiness and engineering team has assessed there is no additional return to service requirements for operation in Australia.
“With COVID-19 continuing to disrupt international air travel, there is currently no indication when Singapore airlines and Fiji Airways will resume their operations to Australia.”
For the recertification of the 737 MAX Boeing undertook 391,000 engineering and software man-hours, 1,847 simulator hours, and 3000 flight hours.
Eighty airlines and 12 aviation regulators or organizations, including NASA were involved.
The result of that global extraordinary effort is an aircraft that is as safe as the industry can make it and reflects the watershed that these accidents are for aviation.
In fact, Boeing and the regulatory team have put in new features designed to prevent incidents that have never happened.
Key to the recertification has been Boeing’s engineering analysis of every system, not just the Manoeuvring Characteristics Augmentation System or MCAS, which is a control law within the flight control system.
The MCAS system, responding to erroneous data from a single faulty sensor, sent the Lion Air and Ethiopian 737s into a dive and the pilots did not respond as expected.
Boeing has gone through a very extensive Fault Tree Analysis of the entire flight control system and making additional changes well beyond those requested.
Qantas, betting on a successful global vaccine roll-out, has filed its flight plan to soar out of the pandemic with New Zealand flights to scale up in July and 22 other international destinations added by late October.
However, the airline’s flagship, the 500-seat A380 superjumbo, will remain cocooned in the Californian desert for another two years at least and the smaller more flexible Boeing 787, and Airbus A330s flying the flag.
Jetstar, the groups’ low-cost airline, will resume flights to all its 13 international destinations at the same time.
At the airline’s half-year result’s announcement of a A$1.04 billion loss, chief executive Alan Joyce said that the late October launch date coincided with the expected timeframe for Australia’s COVID-19 vaccine roll-out to be effectively complete.
He warned however that full recovery of international travel is not expected till 2024.
Mr. Joyce said that Qantas remains in close consultation with the Federal Government around the reopening of international borders and will keep passengers updated if further adjustments are required.
“The vaccine changes everything,” Mr. Joyce said.
“With the vaccine roll-out already underway, we’re on the right track.”
“We think that October date is sensible and hopefully conservative.”
But Qantas needs the federal government to green light opening the international borders.
The airline is also assessing the use of digital health pass apps to help support the resumption of COVID-safe international travel with a vaccine expected to be mandatory across the globe for international travel.
Qantas is trialing two health Apps – the Swiss CommonPass and the IATA Travel Pass – on its international repatriation flights.
Qantas says it will not resume to New York, Santiago, and Osaka, but says it remains committed to flying to these three destinations.
To assist travelers book with confidence the Qantas group announced additional flexibility for international bookings and flight credits.
Qantas’ updated Fly Flexible policy, which was previously only available for domestic and Trans Tasman flights, now applies to international flights booked from today until at least the end of April 2021.
The airline has also extended credit vouchers to enable travel until December 31, 2023, on domestic or international flights, with Jetstar doing the same for vouchers issued due to COVID-19 disruptions.
Qantas is to start the evaluation of new short-haul aircraft to replace its 75 Boeing 737NGs this year.
Speaking at the airline’s half-year result, Vanessa Hudson, the airline’s chief financial officer, told the media that the selection process would start later this calendar year.
Qantas’s fleet of 737NGs is the backbone of its domestic and trans-Tasman operations but many are now approaching 20 years in service.
The competition will pit the Airbus A320 NEO (new engine option) family against the Boeing 737 MAX family. Both aircraft come in a range of seating capacities from about 160 to 230.
Qantas chief Alan Joyce has said he will be leveraging the airline’s World Safest Airline award from AirlineRatings.com to extract a better deal out of Boeing.
Australian Aviation reported that Mr. Joyce told the Sydney Morning Herald; “If you look at it from an opportunity point of view, given the aircraft (737 MAX) is going to be very safe, what will Boeing do to get the safest airline in the world to buy the aircraft?”
The competition will be intense for the A$6.60 billion order.
At stake is Boeing’s reputation and the speed of its financial recovery from the 20-month grounding of its 737 MAX following two crashes that killed 346 people.
Airbus will price match Boeing for the prized order as it aims to topple Boeing as the major supplier to Qantas, which has been a long-time and faithful customer to the Seattle plane builder.
The 737 MAX has been subjected to unprecedented scrutiny in the wake of the two software-related crashes in 2018 and 2019.
Since grounding the aircraft in March 2019, a global effort to get it back in the air has resulted in 391,000 engineering and software man-hours, 1847 simulator hours, 3000 flight hours, and support from 80 airlines and 12 aviation regulators or organisations.
The enormous effort also corrected industry-wide assumptions on pilot training and experience which were significant factors in both tragedies, according to crash experts.
Airbus appears to have the edge after Qantas committed to buying 36 of the longest-range versions of the largest A320NEOs — the A321XLR — in 2019 as part of an order for 109 aircraft for Jetstar.
Airlineratings.com Editor-in-Chief Geoffrey Thomas has been interviewed on Channel 7’s breakfast program Sunrise on the Qantas result.
Australia's national carrier @Qantas has unveiled a billion dollar-plus loss in profits in the first half of its trading year, dogged by both domestic and international travel restrictions due to the coronavirus pandemic. pic.twitter.com/1wafNovaOe
A freeze on international travel and Australian state border closures have combined to send Qantas into a A$6.90 billion revenue tailspin- the worst downturn in its six-month result in its 100-year history.
For the six months to December 31, it made a statutory loss before tax of $1.47 billion compared to an underlying first-half profit of $771 million and a net profit of $445 million for the 2020 half.
Today’s sickening result underscores the devastating impact of COVID-19 on global and Australian travel with Qantas revenue down 75 percent.
Qantas said its underlying loss before tax was $1.03 billion, although it has an underlying cash flow of $1.05 billion with total liquidity of $4.2 billion, providing capital for restructuring and buffer against uncertainty.
On the upside, it said that domestic airlines were generating positive underlying cash flow.
It noted that its restructuring program was on track to deliver $0.6 billion in cost benefits in FY21.
Qantas says it expects international flying to restart end-October 2021.
A year ago, Qantas cautioned the market it was facing a $150 million coronavirus headwind and would trim capacity by 3.8 percent in the second half — the equivalent of grounding 18 planes — to soften the blow.
Just six months later at the full-year results, the reality was a $4 billion hit to revenue as the airline was all but grounded.
The Group generated an Underlying EBITDA of $86 million, reflecting the fundamental resilience of the portfolio.
The Group’s Statutory Loss Before Tax of $1.47 billion included further redundancy and restructuring costs of $284 million (in addition to the $642 million provided for in FY20) and a further $71 million write-down of the A380 fleet in-line with its Australian dollar market value.
Qantas Group chief executive Alan Joyce said: “These figures are stark but not surprising.
“During the half we saw the second wave in Victoria and the strictest domestic travel restrictions since the pandemic began. Virtually all of our international flying and 70 percent of domestic flying stopped, and with it went three-quarters of our revenue.
“Despite the huge challenges, these results show the Group’s underlying strength.
“When we had the opportunity to fly domestically, we saw significant pent-up travel demand and generated positive cash flow.
“Qantas Loyalty still had significant income because the program has evolved to the stage where the vast majority of points are earned from the activity on the ground. Qantas Freight had a record result and has been a natural hedge to the lack of international passenger flying, which has created a shortage of cargo space globally.
“These factors couldn’t overcome the massive impact of this crisis, but they have softened it.
We’ve maintained a high level of liquidity because we were quick to cut costs and because we’ve been able to raise debt and equity. This gives us the breathing room to deal with the levels of uncertainty we’re still facing and funding for the restructuring that will ultimately speed up our recovery.
COVID sent Qantas shares into dive from a high of $7.35 in December 2019 to just $2.36 on March 20.
Since then the shares have been on a rollercoaster ride reacting to state border closures but climbing ever so slowly to a close of $5.01 last night.
Air New Zealand has limited its half-year loss to just $185 million as it looks to blue skies.
The airline’s loss number is before tax and other significant items compared to earnings before other significant items and taxation of $198 million for the same period last year.
Statutory losses before taxation of $104 million include an $81 million gain from other significant items, compared to a $139 million profit before taxation for the first half of the previous financial year.
It said that the continuation of significant restrictions on international travel to and from New Zealand saw the airline’s operating revenue decline 59 percent to $1.2 billion in the first six months of the financial year, as network flying was substantially reduced by 65 percent.
Chief Executive Officer Greg Foran says that the interim results are something that Air New Zealand staff should be very proud of given the context of a global pandemic that has virtually suspended international air travel.
“I could not be more proud of the way our team has gone about operating our airline in the midst of this crisis. They have dealt with each and every obstacle thrown their way with a huge degree of professionalism and frankly, we wouldn’t be operating the level of domestic and cargo capacity we are without their extraordinary efforts, Mr. Foran said.
“While we made significant changes to our business and cost base, and did this more quickly than most airlines, since the outbreak of the pandemic we have still burnt through over $1 billion in our own cash reserves – that’s just huge. We have been fortunate to receive significant financial assistance from wage subsidies and the Government’s aviation relief package throughout the first half of the financial year, as well as benefiting from lower fuel prices, however, these benefits are not expected to extend into the second half of the financial year.
“From the start of this crisis we have had to make a lot of incredibly tough calls, especially where our people are concerned, and that is never something we would do lightly – but it has all been with the sole purpose of ensuring Air New Zealand’s survival. The fact is, we must remain vigilant and disciplined in our approach to cost management and cash burn while borders remain closed,” Mr. Foran said.
Looking forward, Mr. Foran said that “the airline remains optimistic about the future, and, after making both short and long-term changes to the business to lower the cost base, is well-positioned for recovery when demand returns.
“Although it is clear that Covid-19 will continue to impact the aviation industry for some time to come, we are thrilled to see such strong results from our domestic and cargo businesses. We are one of the few airlines globally that has seen this level of passenger recovery and we know that is driven by our core strength on the domestic market. We know this recovery would not be possible without the continued support of our customers and I want to thank each and every one of you for your support of our airline.
Chairman Dame Therese Walsh noted that while the results from the first half of the 2021 financial year are still significantly subdued, she is optimistic that the changes made to the business over the last year or so have set the airline up well for when borders reopen and the capital raise is complete.
“Since the initial travel restrictions were introduced in early 2020, Air New Zealand has taken significant actions to reduce its cost base. While some of these actions have taken time to implement, we are now seeing the benefits of these efforts flow through into our results. Compared to pre-Covid times, operating costs excluding fuel in the first half of this financial year declined more than 50 percent, and some of these are expected to be sustainable cost reductions moving forward.
“This will be pivotal as we enter recovery mode as it means we will not only be highly cost-effective but with the changes we have made to our fleet, we will also have one of the most modern, efficient fleets in the world.
The airline said that as of February 23, 2021, it has short-term available liquidity of just over $700 million, consisting of cash of approximately $170 million and $550 million of undrawn funds on the Crown facility. The total amount drawn on the Crown facility is $350 million.
Greg Foran
Air New Zealand said that having now taken numerous actions to reduce the airline’s cost base, cash burn averaged approximately $79 million per month from September 2020 through January 2021. This compares to an average cash burn of $175 million per month in the fourth quarter of the 2020 financial year.
It estimates an average monthly cash burn for the remaining five months of the financial year to be in the range of $45 million to $55 million while international travel restrictions remain and assuming continued operation of the domestic network with no further lockdowns or social distancing requirements, as well as a continuation of government-supported cargo flights.
Air New Zealand said it is actively engaged with the Crown as the company has continued to assess its longer-term capital structure and funding needs. Air New Zealand has recently reconfirmed to the market and the Crown its intention to complete an equity capital raise before 30 June 2021.
Fuel Control Switches cutoff. Engines spooling down, our job in the cockpit is almost done: just some more paperwork, checklists, logbooks to fill out.
But at the same time, the ground crews spring to life to get this machine back in the air as soon as possible. Airplanes make money when flying, but cost even more while standing on the ground: the clock is ticking and the pressure is on.
High loaders are brought in to lift cargo pallets down, which are carried on tugs that drive them straight to the warehouse. Over forty massive pallets are crammed in the 747 tonight, with a total weight of over 100,000 kilos (220,000 lbs) of necessary freight.
At the same time, a fuel truck arrives to pump in at least 120,000 kilos of jet-fuel into our wings, carefully and evenly distributed across all the various tanks. Mechanics performing some minor maintenance and inspecting our bird for any possible sign of trouble, a new flight crew on its way from the hotel to the airport as we speak.
Everything coordinated to the last minute, long before we even arrived. A smooth routine playing day in day out, dozens of flights a day at this airport alone.
Walking around my 747 machine, I let my eyes glide over her freshly painted skin. A few shallow dents, scars of a rough but fulfilling life. Engines looking good, tires smooth as ever. Incredible, realizing what kind of stresses they have to endure with my landings.
I chat for a few minutes with the ground crew that managed to off-load our cargo in record time; these guys really know what they are doing. Impressive to witness.
An hour later they repeat the same job in reverse; dozens of heavy pallets are loaded in her main- and lower decks after careful calculations, load plans, and crosschecks.
All cargo inspected, secured, rail-locks up, the main deck checked OK. Fueling finished, maintenance inspection signed off, new flight crew finished their preflight routines and everything falls together like the pieces of a puzzle: ready to leave again.
The world of air cargo in a nutshell: Challenge Accepted.
Christiaan is one of the world’s leading aviation photographers and more of his work and more close encounter (s) can be found here.
You can follow Christiaan on Instagram here: @jpcvanheijst
Qantas chief executive Alan Joyce has slammed Australian regional operator REX for its Trump-styled press releases.
Rex has been accusing Qantas of predatory behavior moving onto its routes during COVID and because of that, it would axing 5 routes.
Mr Joyce speaking at the company’s half-year result said Rex’s accusations were amusing and refuted the claims saying they were Trump in style.
“I think Donald Trump is writing the releases they give us a laugh,” Mr. Joyce said.
“Of the five routes they say they will cancel we only operate on one and we have been operating on that one since 2017.”
“They have been threatening to withdraw from 13 routes over the past year but have only exited one route.”
On government subsidies, Mr. Joyce said that Rex had received 7 times more in subsidies than Qantas.
“Rex is a $300 million business and has received $130 million in subsidies, which is the equivalent of Qantas receiving $7 billion – 7 times more than Qantas has received.
A freeze on international travel and Australian state border closures have combined to send Qantas into a A$6.90 billion revenue tailspin- the worst downturn in its six-month result in its 100-year history.
For the six months to December 31, it made a statutory loss before tax of $1.47 billion compared to an underlying first-half profit of $771 million and a net profit of $445 million for the 2020 half.
Today’s sickening result underscores the devastating impact of COVID-19 on global and Australian travel with Qantas revenue down 75 percent.
Australia's national carrier @Qantas has unveiled a billion dollar-plus loss in profits in the first half of its trading year, dogged by both domestic and international travel restrictions due to the coronavirus pandemic. pic.twitter.com/1wafNovaOe
Qantas said its underlying loss before tax was $1.03 billion, although it has an underlying cash flow of $1.05 billion with total liquidity of $4.2 billion, providing capital for restructuring and a buffer against uncertainty.
On the upside, it said that domestic airlines were generating positive underlying cash flow.
It noted that its restructuring program was on track to deliver $0.6 billion in cost benefits in FY21.
Qantas says it expects international flying to restart end-October 2021.
A year ago, Qantas cautioned the market it was facing a $150 million coronavirus headwind and would trim capacity by 3.8 percent in the second half — the equivalent of grounding 18 planes — to soften the blow.
Just six months later at the full-year results, the reality was a $4 billion hit to revenue as the airline was all but grounded.
For the six months to December 31, 2020, the Group generated an Underlying EBITDA of $86 million, reflecting the fundamental resilience of the portfolio.
The Group’s Statutory Loss Before Tax of $1.47 billion included further redundancy and restructuring costs of $284 million (in addition to the $642 million provided for in FY20) and a further $71 million write-down of the A380 fleet in-line with its Australian dollar market value.
Qantas Group chief executive Alan Joyce said: “These figures are stark but not surprising.
“During the half, we saw the second wave in Victoria and the strictest domestic travel restrictions since the pandemic began. Virtually all of our international flying and 70 percent of domestic flying stopped, and with it went three-quarters of our revenue.
“Despite the huge challenges, these results show the Group’s underlying strength.
“When we had the opportunity to fly domestically, we saw significant pent-up travel demand and generated positive cash flow.
“Qantas Loyalty still had significant income because the program has evolved to the stage where the vast majority of points are earned from the activity on the ground. Qantas Freight had a record result and has been a natural hedge to the lack of international passenger flying, which has created a shortage of cargo space globally.
“These factors couldn’t overcome the massive impact of this crisis, but they have softened it.
“We’ve maintained a high level of liquidity because we were quick to cut costs and because we’ve been able to raise debt and equity. This gives us the breathing room to deal with the levels of uncertainty we’re still facing and funding for the restructuring that will ultimately speed up our recovery,” Mr. Joyce said
COVID sent Qantas shares into dive from a high of $7.35 in December 2019 to just $2.36 on March 20.
Since then the shares have been on a rollercoaster ride reacting to state border closures but climbing ever so slowly to a close of $5.01 last night.
High-Pressure Aviation has a stunning cockpit video of 777 night landing in snow and crosswinds at Chicago.
The video is shot in 4K for superb quality.
Where a pilot faces a crosswind landing they need to point the aircraft in the direction of the wind while maintaining a straight course toward the runway.
In strong crosswinds, the pilot may also dip the wing – sideslip – into the direction of the wind.
Just before touchdown pilots apply rudder, to bring the plane – and its undercarriage – back so it is aligned straight down the centre-line of the runway.
This takes great skill and the results – if not done properly – are often quite spectacular.
Virgin Australia has shown with the unveiling of its Adelaide lounge that it has lost none of its flair nor charm that has won it many awards and loyalty of 10 million frequent flyers.
The airline, which is now owned by Bain Capital, opened what it calls its lounge of the future, at Adelaide Airport and the flair and charm the airline is known for was on full display.
Designed by Brisbane’s WMK Architecture, the 283-seat Adelaide Lounge completes Virgin Australia’s network of seven domestic lounges across major airports around Australia, and all future lounge refurbishments around the domestic network will be done in line with this new and fresh design thinking.
Virgin Australia CEO Jayne Hrdlicka said the new lounge was the first of many new and exciting products for customers following the airline’s re-launch.
“We are continuing to write a new chapter at Virgin Australia and we’re incredibly focussed on creating great experiences for our guests,” Ms. Hrdlicka said.
“We know our capital city lounges are highly-valued by our frequent flyers and we’re reimagining the experience in a very Virgin way. Not only is the new Adelaide Lounge the best airline lounge at Adelaide Airport, but it’s fun, relaxed, and a place that everyone will feel welcome and comfortable.
“We plan to make significant investment in our lounges over the next few years. The new lounge we’ve unveiled today will be the foundation for the Virgin aesthetic and experience we will roll out across the network.
“Enhancing our lounge experience is one of many changes we are making for our guests. This adds to the announcements we have already made signaling a deeper investment in technology to improve our customer experience, refreshed on-board catering to be announced soon, great bonus Points and Status match offers for our Velocity members, cheaper fares, and extended flexibility to change bookings,” Ms Hardlicka said.
The Adelaide Lounge features include;
The Coffee Bar: An eye-catching central café seating area, transforming from a place to unwind over a coffee during the day, turning into a wine bar at night.
The Cellar Door Hub: With some of Australia’s most awarded wineries on the doorstep of Adelaide Airport, Virgin Australia has created a feature space for South Australian wineries to bring their cellar door to the Lounge for seasonal wine tasting.
Distinct dining areas: Separate dining areas with diverse functionality have been built adjacent to servery areas to cater to all guest’s eating preferences, including large social tables, and banquette seating for more private dining.
Lounge seating areas:
The Library: A dedicated work area dubbed The Library, features workstations with PCs, printing facilities, power sockets, and desk lamps, offering a functional environment to work on the fly (work spaces continue to be available throughout COVID-19).
The Gallery Lounge: a chill-out zone adjacent to The Library, complete with lounge chairs and a large flat-screen television.
The Sunroom: With a mixture of cosy seating arrangements, it’s the perfect space to sit with a loved one, friend or colleague in comfort.
The Long Stay: Closely located next to the servery, the Long Stay is tucked away from the main entrance and provides guests with an inviting space, with a wide variety of seating options.
WMK Architecture Director Russell Grady said the design of the Lounge is unlike anything else in Australian airports, setting the scene for Virgin Australia’s exciting new direction.
“In true Virgin Australia style, we’ve really elevated the playful elements in signage, furniture and vibrant lighting features, adding pops of colour and energising moments, to enrich the lounge’s natural material palette. It’s a venue that’s delightfully Virgin and provides frequent flyers with a warm and relaxing space when they fly,” Mr Grady said.
To coincide with the opening, Virgin Australia launched a new menu for guests of the Adelaide Lounge, featuring a selection of sandwiches, salads, wraps and healthy snacks, prepared on-site. An enhanced menu will be implemented at all Virgin Australia lounges in the coming weeks.
In an Australian airline first, Virgin Australia is also trialling a food ordering system, offering guests end-to-end table service. Initially available in the Adelaide and Melbourne lounges, guests will be able to order food and beverages directly to their lounge seat or table, by simply scanning a QR code and placing an order on their phone.
The opening of the Adelaide Lounge marks the start of a roll-out of the airline’s future product offering including a new onboard menu for Business Class, and a buy onboard retail menu for Economy and Economy-X guests, to be revealed in the coming months.
The Virgin Australia lounges in Melbourne, Sydney, Brisbane, Gold Coast, Adelaide and Perth are now open. Virgin Australia is expected to open its seventh, and final domestic Lounge, in Canberra, in March.
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