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JAL plans to launch new low-cost carrier

Japan Airlines qantas
Photo: Valentin Hinikka.Finland/Wikicommons Media.

Japan Air Lines (JAL) is planning to launch a medium- to long-haul, low-cost carrier by 2020 to capitalize on growing international traffic.

Japanese media report the airline aims to get the start-up running in time for the Tokyo Olympic and Paralympic games.

It is looking at destinations such as Europe and the US and plans to target both outbound and inbound travelers, according to the Nikkei Asian Review.

The routes are not expected to overlap with existing JAL international routes.

The Asia-Pacific is a growth hotspot for airlines and Aerospace giant  Boeing expects Asian aviation traffic to grow by an average of 5.7 percent annually over the next 20 years.

The move comes as management is shifting its focus to growth since filing for bankruptcy protection in 2010. The Japanese government lifted restrictions on the company in 2017 that had limited investments and new routes in the wake of its bailout.

READ: Japan Airlines commits to Boom supersonic aircraft.

The airline already has a solid foothold in the domestic low-cost market through its investment in- in Jetstar Japan with Australia’s Qantas.

Japanese low-cost carriers account for about 10 per of the domestic market but this is still considered low compared to the penetration in markets such as the US and Europe.

However, the market share of low-cost carriers on international routes is almost double that at 20 percent.

A rocky start in the 2000s saw Qantas as a rare example of an airline successfully launching a low-cost subsidiary but a number of carriers have since jumped on the bandwagon.

JAL archrival All Nippon Airways is planning to merge its Vanilla Air and Peach low-cost offshoot by March, 2020.

ANA is also planning to use long-range smaller aircraft to service medium-haul flights.

JAL  is also facing increased competition on international routes into Japan from the likes of Thailand’s Nok Air, Singapore’s Scoot and Malaysia’s AirAsia X.

 

New X-ray machines and body scanners in $A300m Australian security upgrade

Airports security Australia scanner budget
A CT scanner in the US.

The Australian government has confirmed that body scanners will be introduced at regional airports as part of a $A294 million package that will also see cabin baggage screening  upgraded to advanced X-Ray equipment.

Sophisticated new screening technology will be introduced at major and regional Australian airports, international mail centers and air cargo facilities over four years under a 2018-19 budget initiative announced Tuesday.

Home Affairs Minister Peter Dutton said the moves were in response to evolving terrorist, national security and criminal threats.

These included a disrupted terrorist attack in Sydney last year that was unprecedented, sophisticated and represented a significant change in the national security environment.

The package includes the deployment of more than 140 additional AFP Counter Terrorist First Response officers at airports and a further 50 officers to provide tactical intelligence and other support.

There will also be upgrades to inbound air cargo and international mail screening technology as well as improved accreditation of all airport screening staff.

The government will provide $A50 million to help fund upgrades to security infrastructure at 64 regional airports, with funding for the mail and cargo screening receiving $A122 million and a similar amount going to increase the border force capability at nine domestic and international airports.

“I will introduce new laws to complement these measures providing the AFP broader powers to conduct identity checks at airports and to order a person to ‘move on’ from airport premises where needed,” Home Affairs Minister Peter Dutton said.

“These initiatives will ensure Australia remains a trusted destination for trade and travel and a world-leader in aviation security.”

The government pledged to work with airports to implement the enhanced measures.It did not specify the new X-ray technology but it is likely to be similar to new Computed tomography (CT) checkpoint scanning equipment being trialed n the US.

CT scanners use an X-ray camera that spins around the conveyor belt to shoot hundreds of images and build a 3-D picture of carry-on items. It also applies a sophisticated algorithm to detect explosives.

READ: New US screening technology addresses laptop issue.

The Australian Airport Association said the airport industry was committed to ensuring government requirements were implemented in “a complex and evolving threat environment”.

“These new measures will build on the already robust security arrangements in place at our airports as the industry continues to deliver on its commitment to passenger safety,” AAA chief executive Caroline Wilkie said.

Wilkie emphasized that the funding package fro regional airports was particularly important.

“We know regional airports are already doing it tough, and this funding is much-needed support to ensure these new arrangements are implemented in a timely, effective and consistent way across the country,” she said.

The Australian government will also spend $A6.9 million over two years to continue the work of Australian Border Force Airline Liaison Officers at 19 key overseas international airports.

ALOs provide airlines and local governments with on-the-spot passenger advice and are highly skilled in document examination, impostor detection and passenger assessment.

ALOs in the past five years had stopped more than 1000 passengers who had attempted to board a flight to Australia as an impostor or with a fraudulent document, the government said.

Disclosure:  Steve Creedy contributes The Airport Professional published by the Australian Airports Association.

 

 

Air France strikes continue as crisis prompts survival warning

Airlines attack french eco tax
Air France is strongly opposed to the new eco tax.

Continuing strikes and the resignation Air France-KLM chief executive Jean-March Janaiilic have plunged Air France into crisis and prompted a government warning about its survival.

Janaillac resigned after Air France workers voted down a multi-year pay offer aimed at resolving a deadlock that resulted in strike action generating losses of at least 300 million euros ($US357m).

He will stay until a board meeting on May 15 to decide the European airline group’s interim management structure.

About four-fifths of eligible workers voted and 55.44 percent came out against the company proposal.

Staff began another round of industrial action this week and the airline said Tuesday it expected to operate 95 percent of long-haul flights, 75 percent of medium haul flights and 82 percent of short-haul services.

Management had offered a 7 percent wage rise over four years, including a 2 percent wage increase in 2018. Unions have been calling for a 5.1 percent wage increase in the first year.

Janaillic had been attempting to reform the carrier and bring down its costs. He also oversaw the launch of Air France low-cost subsidiary Joon.

READ: Enigmatic Joon an innovation lab for ailing Air France.

His decision prompted French Finance Minister Bruno Le Maire to urge a resumption of talks and warn the French carrier’s survival was in the balance.

“If Air France does not make efforts to become more competitive, allowing this flagship to be at the same level at Lufthansa and other airline companies, Air France will disappear,” Le Maire told BFMTV.

“We’re minority shareholders … those that think that whatever happens the state will come to Air France’s rescue and soak up Air France’s losses are mistaken.’’

Air France-KLM reported a net loss of €269m ($US320m) in the first quarter of 2018,  as the trikes weighed on its performance. This was despite a 5.2 percent increase in passenger numbers and a 1.2 percent rise in revenue.

The past year has been troubled for a number of European carriers. Alitalia’s future is still in doubt after it was put under special administration last year while Germany’s Air Berlin and Britain’s Monarch both went out of business.

The French carrier’s shares fell by as much 14.5 percent on Monday.

 

 

 

Qantas joins Jakarta airport exodus

Qantas moves to Terminal 3
Photo: Gunawan Kartapranata./Wikimedia Commons.

Qantas has become the latest carrier to join the exodus to Jakarta’s Soekarno-Hatta International Airport’s Terminal 3 as authorities prepare to move all international airlines to the new facility by the end of July.

The Australian carrier, which currently operates from Terminal 2, says it will make move on May 11 along with partner airline Jetstar Asia to give passengers a more seamless travel experience.

Qantas operates four to six Sydney-Jakarta flights a week using an Airbus A330-200 aircraft.

It currently departs from Terminal 2 which is destined to become a domestic terminal.

READ: Qantas halts Perth international route expansion plans.

Qantas said the new terminal offers more space and an improved environment with bigger check-in areas as well as a larger range of cafes, restaurants and retail outlets.

There will be no change to flight schedules or check-in times but customers booked to and from Jakarta after May 11 will receive an updated email itinerary.

“Customers will continue to be eligible for lounge access if they are booked for travel in Business class, or have Qantas Platinum One, Platinum or Gold Frequent Flyer status (or oneworld equivalent),’’ the airline said.

“Qantas Club members are also eligible for entry. Directions to the lounge at the new terminal will be available at the check-in counter.”

Carriers already operating from terminal 3 include Garuda Indonesia, Saudi Arabian Airlines, Vietnam Airlines, Korean Air, XimaenAir, China Airlines, China Southern, AirAsia, Malaysia Airlines and Thai Airways International.

Terminal 3 was opened in August, 2016 and cost $US600m.

The move by international carriers is part of a wider plan by the airport to boost capacity to 100 million passengers by 2025.

Airport operator Angkasa Pura II is in the process of acquiring land for a third runway as part of a $US189m project designed to increase aircraft movements from 81 an hour to 114, according to The Jakarta Post.

The paper said APII was constructing the first phase of an east cross taxiway to connect the existing north and south runways and boost movements to 86 per hour.

 

Australasian airports forecast to roll out $A7 billion in projects

$A7 billion airports projects
Photo: Brisbane Airport

Major Australasian airports are expected to roll out projects worth $A7 billion ($US5.26 billion)  over the next three to five years as they embark on “a capital speeding spree” to cater for buoyant demand, according to ratings agency Standard and Poor’s.

A new report by S&P Global Ratings predicts eight airports the agency rates will borrow $A5 billion to cater for international arrivals predicted to grow by about 5 percent in Australia and New Zealand over the next 18 months.

It expects this will leave the airports with $A25 billion in debt by June 30, 2021, as they spend on new runways, terminal facilities and other amenities to improve their service.

Three of Australia’s big four airports are in the process of either planning or constructing new runways.

The $A1.3 billion runway at Brisbane Airport is the first new runway to be built and is expected to be operational in 2020 but Melbourne and Perth are also planning projects and a new airport is being developed in Western Sydney.

WATCH:  Low-visbility Cat IIIa landing.

But airports will be able to delay or cancel parts of an expansion program if necessary, the report says.

It notes airports have a track record of proactively managing dividends or re-injecting capital through dividend reinvestment plans to cope with economic shocks or unseen events.

They are also likely to lock in tariffs over the phase of the capital works before starting their projects.

“We consider Australian and New Zealand airports will prudently manage their capital programs and financial profiles to maintain their credit quality,” S&P credit analyst Kendrew Fung said.

A report last year by rival Moody’s Investors services was also upbeat about the future of antipodean airports, saying international traffic was offsetting lackluster domestic demand to underpin the credit outlook for Australian facilities.

There are now some signs of domestic growth, although Australian airlines continue to keep a tight rein on capacity.

International Air Transport Association figures for March showed domestic traffic demand, as measured in revenue passenger kilometres, increased by 3.6 percent in March compared to the same month a year ago.

READ: Competition boss warns unregulated airport profits can push up fares.

And Qantas chief executive Alan Joyce told reporters during the airline’s third-quarter update that the domestic economy was ‘humming on cylinders” with leisure and corporate travel doing well and the resources sector showing signs of growth.

Disclosure: Steve Creedy is also a  contributor to The Airport Professional published by the Australian Airports Association.

 

China and US clash over Taiwan directive to airlines

delta

China has hit back at US claims a push by Beijing to stop foreign airlines referring to Taiwan as a separate state is  “Orwellian nonsense”.

The Trump administration made the comment in a bluntly-worded statement responding to letters sent to more than 30 foreign airlines by the Civil Aviation Administration of China (CAAC).

The letters, one sent in January and second sent recently, demanded they remove references on websites or in other material that suggested Taiwan, Hong Kong and Macau were independent of the Asian superpower.

In a letter to United cited by The Washington Post, the CAAC demanded the US carrier change its website to label Taiwan “Chinese Taiwan” or “Taiwan: province/ region of China”.

It also demanded that United must use the same color on its maps for China, Taiwan, Hong Kong and Macau.

Failure to comply would see the company’s violation reported to the National Cyber Information Office and other law enforcement agencies.

The White House was quick to respond.

“This is Orwellian nonsense and part of a growing trend by the Chinese Communist party to impose its political views on American citizens and private companies,” White House press secretary Sarah Sanders said.

Sanders said the Trump administration was calling on Beijing “to stop threatening and coercing American carriers and citizens”.

A statement by Foreign Ministry spokesperson Geng Shuang on Sunday said the US comments would not change the fact there was only one China in the world and “Hong Kong, Macao and Taiwan regions are an inalienable part of China’s territory”.

“China will continue to handle its relations with other countries in accordance with the one-China principle,’’ Geng said. “In the meantime, we have to point out that foreign enterprises operating in China should respect China’s sovereignty and territorial integrity, abide by China’s law and respect the national sentiment of the Chinese people.”

Although former colonies Hong Kong and Macau are recognized as special administrative regions belonging to China, Taiwan is a democratic, self-ruled state.

Nonetheless, Beijing remains adamant it will be one day reunited with the mainland.

US carriers have been investing in their Chinese counterparts and are keen to get a foothold in the burgeoning Chinese markets.

READ: China Southern wants to deepen American relationship.

Delta Air Lines apologized in January for making “an inadvertent error” by listing Taiwan and Tibet, about which China is also sensitive, as separate countries.

Australian carrier Qantas, which also received the letters, had been referring to Taipei as part of Taiwan and was still doing so Monday in the drop-down menu in its booking engine. It was also referring to Hong Kong as part of the Hong Kong Special Administrative Region (SAR) and had a similar reference for Macau.

 

The airline made changes after the initial letter in January that are understood to be accordance with Australian government policy.

It has now received a second, more specific letter and a spokeswoman said it was being reviewed.

 

MH370: Search resumes, hopes high.

MH370 medical reports

The search for missing Malaysia Airlines flight MH370 resumed Sunday in an area identified by University of WA researchers as the possible final resting place.

After a quick resupply in Fremantle, the search team crew aboard vessel Seabed Constructor deployed eight autonomous underwater vehicles to search for signs of the aircraft.

The Ocean Infinity team says they are “absolutely determined” to find the Boeing 777, which disappeared on March 8, 2014, with 239 people aboard

READ: MH370 What happened on board.

So far 80,000sqkm of the ocean floor has been searched.

The latest search is expected to be the last before the winter weather puts a pause on operations.

The Malaysian Government gave Ocean Infinity 90 days to find the plane in a “no cure, no fee” search that would net the company $US70 million if successful.

The sweeps have lasted about six weeks and it is expected that this will be the last before winter weather halts activities about mid-June.

Ocean Infinity chief executive Oliver Plunkett said that its “technology has performed exceptionally well throughout the search and that we have collected significant amounts of high-quality data in which we have full confidence”.

“The results from the highly challenging Broken Ridge (due west of Perth) feature are particularly impressive,” he said.

“Everyone at Ocean Infinity remains absolutely determined for the remainder of the search.”

WATCH: Reach for the sick bag

The 100,000sqkm area that is the focus of the current search is based on assessments of a refinement of the original satellite data, drift modeling from debris that washed up around the western Indian Ocean.

The original Australian Transport Safety Bureau international investigation favored a more southerly location.

UWA professor Charitha Pattiaratchi indicated the priority region that needed targeting went as far north as 28°S along what is called the seventh arc.

This is a line based on satellite returns off the Boeing 777 that runs down the WA coast about 1800km west of Perth and then sweeps away into the Southern Indian Ocean.

This does not include the time spent traveling to and from port to refuel and take on new crew and supplies.

Hawaiian extends waivers to Big Island

hawaiian volcano waivers
A lava fountain on Hawaii over the weekend. Photo: US Geological Survey.

Hawaiian Airlines has extended travel waivers for travel to and from Hilo and Kona airports on the Big Island due to the eruption of the Kīlauea Volcano.

Passengers are allowed a one-time waiver of change fees if their ticket was issued May 4 or earlier for flights to May 13.

Changes must be made for the same class of service, origin and destination for new flights no later than May 20.

“For changes made to new flights after May 20, 2018, the change fee will be waived but applicable difference in fare will be collected,’’ the airline said in an update issued over the weekend.

Th volcano erupted on May 3, spewing reddish-brown ash plume into the air and forcing the evacuation of about 1700 residents from the Leilana Estates subdivision in the island’s Puna region..

Lava erupting from fissures threatened houses — destroying several  — and blocked roads.

Earthquakes and toxic gases added to the danger with a tremor on Friday hitting magnitude 6.9 to make it the biggest in four decades.

The US Geological Survey reported that lava fountains reached as high as 70m (230ft) with seismic and deformation activity indicating a continued accumulation of magma across the rift zone.

New fissures opened Saturday night but were not actively disgorging lava.

WATCH Virgin Australia’s volcanic ash assessment process.

However, scientists have been unbale to say where new lava flows might occur and officials say it is not known how long the volcanic activity will last.

Kilauea is the is the most active of the five volcanoes that form the island of Hawaii and destroyed the town of Kalapana in 1990.

Volcanoes are an ongoing problem for airlines.

In November of last year, thousands of passengers were stranded after Bali’s main airport was closed for several days due to the eruption of Mount Agung.

The eruption of the Eyjafjallajokull volcano in Iceland in 2010 caused widespread disruptions to flights in Europe as well as to and from the continent.

 

American ups the ante on the Caribbean

American ups ante in Caribbean
Photo: American Airlines.

The Caribbean is already a market American Airlines all but owns. Now, it’s poised to become even stronger.

While Miami International Airport (MIA) is launchpad for legions of flights to South and Central America and the Caribbean Basin, its American’s inland hub passengers that look to benefit most from this latest expansion, notably Chicago O’Hare (ORD), Charlotte (CLT) and to, a lesser degree, Dallas/Fort Worth (DFW).

Here’s the lineup of new routes: Chicago O’Hare– Aruba (AUA) will be a seasonal winter route. It gets off the ground December 22, while Dallas/Fort Worth – Aruba will be a Saturday-only, year-round affair. This nonstop starts December 22.

READ: Our ratings for American Airlines

Also in line for Saturday-only service starting December 22 are three other nonstops out of Chicago O’Hare and one from Miami: ORD-Grand Cayman (GCM), ORD-Nassau (NAS), ORD-Turks and Caicos (PLS) and MIA-St. Vincent and the Grenadines (SVD). American lays claim to being the first U.S. airline to serve SVD.

American will fly full-sized jets on each of those routes, predominately Boeing 737-800s.

Regional jets bearing the American Airlines logo will make Saturday-only, year-round roundtrips from Charlotte-Douglas International Airport.

An Embraer E175 will fly from CLT to Marsh Harbor (MHH) in the Bahamas and a smaller CRJ-700 from Charlotte to Eleuthera (ELH), also a Bahamian port-of-call. These flights too begin December 22.

READ: American to simplify fleet with $US12bn 787 order.

Of course the reason December 22 is the start date for all these flights is that winter is “high season” in the Caribbean when leisure flyers from colder climes up North head South to sunshine.

December is also (ostensibly anyway) the end of the high season for hurricanes. Last year storms wreaked unprecedented havoc in the Caribbean.

A note if you’re planning to fly from Europe to the Caribbean: Beginning October 28 American cuts the number of London Heathrow (LHR)-Miami flights from two to one.

WATCH: Spectacular cross-wind landings.

Not to worry, however. At the same time, American’s oneworld and joint-venture partner British Airways adds a third-daily MIA-LHR nonstop, this with a venerable (and fast-vanishing) Boeing 747-400.

Fatal Southwest Airlines flight peppered with shrapnel

Southwest engine failure
The damaged engine. Photo: NTSB

US safety investigators have released photos of the of the shredded engine from a fatal Southwest Airlines flight and say the aircraft suffered significant damage as it was peppered with shrapnel.

Investigators found damage to the leading edge of the left wing, the fuselage and the left horizontal stabilizer as the outing covering and engine inlet disintegrated.

Damage to leading edge of the left wing. Photo: NTSB.

The aircraft, which had been flying from New York to Dallas, made an emergency landing in Philadelphia.

The incident became the first fatal US commercial aircraft accident since 2009 after bank executive and mother of two Jennifer Riordan was partially sucked through a window next to her seat.

READ: Southwest victim Jennifer Riordan a force for good.

Flight attendants and two male passengers managed to bring o bring her back into the aircraft but she died of blunt trauma injuries suffered during the ordeal.

An investigative update issued Thursday by the National Transportation Safety Board points to a large piece of engine cowling as the debris that hit the fuselage near the window.

Investigators said a large gouge impact mark, consistent in shape to a recovered portion of fan cowl and latching mechanism, was adjacent to the row 14 window.

Southwest engine fatal window
A picture of window 14 with part of the engine inboard fan cowl. Photo: NTSB

Media initially assumed the window had been shattered by debris but the report said the entire window was missing and no window, aircraft structure or engine material had been found in the plane.

Investigators confirmed the damage resulted from the failure of number 13 fan blade, which separated at the root, and revealed they had recovered two pieces within the engine.

They found fatigue cracking in the blade, which had seen more than 32,000 landing and take-off cycles since new.

Investigators said the blades had been periodically lubricated as per the manufacturer’s specifications and were last overhauled in November, 2012 —  some 10,712 engine cycles before the accident.

They were inspected during the 2012 overhaul using visual and fluorescent penetration inspections and had been visually inspected during six subsequent lubrications. Southwest had also introduced eddy current inspections after a similar fan blade failure in 2016.

“The NTSB materials group is working to estimate the number of cycles associated with fatigue crack initiation and propagation in the No. 13 fan blade and to evaluate the effectiveness of inspection methods used to detect these cracks,’’ the update said.

The flight crew told investigators the first sign of trouble after a normal climb out was when they experienced a sudden change in cabin pressure, aircraft yaw, cockpit alarms and a “gray puff of smoke.”

They quickly donned their oxygen masks and the first officer began a descent.

“Flight data recorder data showed that the left engine parameters all dropped simultaneously, vibration increased, and, within five seconds, the cabin altitude alert activated,’’ the update said.

“The FDR also indicated that the airplane rolled left to about 40 degrees before the flight crew was able to counter the roll with control inputs.

“The flight crew reported that the airplane exhibited handling difficulties throughout the remainder of the flight.

“The captain took over flying duties and the first officer began running emergency checklists. The captain requested a diversion from the air traffic controller; she first requested the nearest airport but quickly decided on Philadelphia.’’

The captain was planning a long final approach but decided to shorten it and expedite landing after learning of the injuries to Riordan.

 

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