A global search is on for a new chief executive at Australia’s biggest airport after incumbent Kerrie Mather announced she is stepping down after 15 years with the company.

Mather’s surprise announcement comes as Sydney Airport is grappling with whether it should be involved in the construction of a controversial second airport at Badgerys Creek, south-west of Sydney.

The company was given first refusal on any airport project within 100kms of Sydney as part of a 2002  privatisation deal and will need to make a decision by early May.

But Australia’s competition watchdog has argued separate owners would benefit passengers and airlines while some analysts are sceptical the company will take on the huge cost of the new project.

Mather has been chief executive of the listed company controlling Sydney Airport since 2002 and chief executive of the airport since 2011. She will remain in place until the new chief executive arrives.

“Under Kerrie’s leadership, Sydney Airport has developed strong and enduring relationships across the aviation industry, with all levels of government in Australia and internationally, and with our local communities,’’ Sydney Airport chairman Trevor Gerber said in a statement. “The partnership approach has delivered growth in aviation which in turn has stimulated economic activity across our local, NSW and national economies.’’

Mather said it was the right time for a leadership change and she had enjoyed working in the aviation industry for the past 15 years.

“Aviation is one of the most dynamic and exciting industries in the world,’’ she said. “It’s changing rapidly, led by constantly evolving advancement and customer needs. Sydney Airport has responded those changes and opportunities with a focus not only on our airline partnerships and their customers but also the wider community.’’

Tourism Australia chief executive John O’Sullivan described Mather’s tenure at the airport as “nothing short of transformational”.

 “Increased international services, an unprecedented development pipeline plus an increased community presence have all been hallmarks of her time in charge,’’ he said. “Kerrie has also been a great friend of Tourism Australia and contributed greatly to our efforts to grow international aviation to Australia.”
 

Air safety investigators have so far found no evidence of pre-impact engine failure on a Beechcraft King Air B200 that crashed into a shopping centre in Melbourne.

The fiery crash at Essendon Airport on February 21  killed pilot Max Quatermain and four US tourists on their way to play golf on King Island. The crash was labelled  Victoria's worst civil aviation accident in three decades and stopped traffic on nearby roads.

Initial reports suggested the plane had suffered a catastrophic engine failure but a preliminary report issued Wednesday by the Australian Transport Safety Bureau indicates this was not the case.

An on-site examination of the wreckage did not identify any pre-existing faults with the aircraft that could have contributed to the accident but some components have been removed for further examination.

Both engines had been ripped off their mounts by the crash and had varying degrees of fire and impact damage.

“The engines were removed from the accident site to a secure facility where they were disassembled and inspected by the ATSB with assistance from the engine manufacturer,’’ the report said. 

"That examination found that the cores of both engines were rotating and that there was no evidence of pre-impact failure of either engine’s internal components.

“However, a number of engine components were retained for further examination and testing.”

The report said the propellers separated from the engines during the crash and both exhibited evidence of rotation. Investigators are continuing to examine the propellers and other airframe components, documents and electronic devices.

Conditions on the day of the crash were benign and the pilot took off on runway 17  in fine weather with a 5-knot (9kmh) wind.

Witnesses familiar with the aircraft type said the take-off roll was longer than normal and the aircraft was seen to yaw left after becoming airborne.

“The aircraft performed a shallow climbing left turn while maintaining a relatively level pitch and roll] attitude,’’ the report said.

“Airservices Australia Automatic Dependent Surveillance Broadcast (ADS-B) data indicated the aircraft reached a maximum height of approximately 160 ft above ground level while tracking in an arc to the left of the runway centreline.’’

The aircraft smashed into the shopping precinct with 10 degrees of flap and the landing gear extended.

It was equipped with a cockpit voice recorder but there was no audio from the crash flight and the audio which was recovered came from a January 3  flight.

An examination of air traffic control tapes showed the pilot repeated MAYDAY seven times but did not reveal the nature of the emergency.

The investigation continues and will further examine engine and airframe components as well as the propellers.

Investigators will conduct further interviews with witnesses, review the pilot’s medical and flying history and attempt to determine why the CVR failed to record during the accident flight.

There will also be ongoing analysis of dash camera and video footage as well as the air traffic control recordings and ADS-B data.

Astonishing video has emerged of passengers escaping a burning Peruvian Airlines Boeing 737 Tuesday after it veered off the runway burst into flames while landing at the provincial city of Jauja in Peru.

The airline said 141 passengers were on board the flight from the Peruvian capital but all had been evacuated safely and there were no serious injuries.

It  said in a statement the Boeing 737-300 “turned on the right side, skidding off the runway’’ but the high professionalism of its crew prevented major injury.

The Aviation Herald said the B737-300  landed on Jauja's runway 31 at about 16:40 local time.

It said it veered off the runway, suffered the collapse of all gear and burst into flames, coming to a stop after skidding on fire for some distance. 

Passengers reported there were two strong impacts upon arrival and local media reported 29 people were taken to hospital.

Peruvian authorities are investigating the incident.

Delta Air Lines and Korean Air are the latest carriers to propose a trans-Pacific alliance that will allow them to share costs and revenues as well as coordinate schedules.

The airlines have signed a memorandum of understanding to implement a joint venture arrangement that would give their customers have access to a combined network serving more than 290 destinations.

They argue that the deal, which is still subject to regulatory approval, would increase travel choices and boost competition between the US and Asia.

  The deal would see reciprocal frequent flyer benefits in which customers of both airlines would have the ability to earn and redeem miles on Delta’s Sky Miles and Korean Air’s SKYPASS programs.

It would see expanded codesharing, joint growth in the trans-Pacific market and the co-location of services at key hubs. Delta plans to launch a non-stop Atlanta-Seoul service this year to complement Korean’s existing service.

"This agreement deepens our longstanding partnership with Korean Air and will provide the global access and seamless service our customers demand," Delta chief executive Ed Bastian said in a statement. "We look forward to providing customers of both carriers with industry-leading service between the U.S. and Asia.”

Korean said it would continue to expand US-Korea network this summer with the introduction of a third return service between Los Angeles and Seoul as well as a second flight between the South Korean capital and San Francisco.

“This joint venture will benefit our customers by providing more convenient connection schedules and widen their opportunities in earning mileages,” Korean Air chief executive Yang Ho Cho said. “With this agreement, we will reinforce Incheon airport’s position as a major international hub in North East Asia and support the growth of Korea’s aviation industry.”

These kinds of alliances are becoming more common across the Pacific.

Delta already has an alliance with Virgin Australia and American Airlines this week agreed to buy a $US200m stake in China Southern Airlines that involves codesharing.

American and Qantas are also trying to resurrect a trans-Pacific alliance that was rejected by US regulators.

American Airlines has confirmed it will make a $US200 million equity investment in China Southern to forge an alliance between two giants of the aviation industry.

The deal between Guangzhou- based China Southern and American brings together two largely complementary networks and give American a foothold in the burgeoning Chinese market. 

Most of China Southern’s trans-Pacific flights originate in its Guangzhou hub while American serves Beijing and Shanghai from its hubs in Chicago, Dallas-Fort Worth and Los Angeles.

The two airlines expect to begin codeshare and interline agreements later this year that will give customers better access to each other’s markets.

 “China Southern’s extensive network within China touches developing and thriving markets that only a Chinese carrier can reach and they have a reputation and record of excellence,” American president Robert Isom said in a statement.

We are two of the biggest carriers in the world and our networks are highly complementary, with the potential to offer China Southern and American customers an unmatched range of destinations in two critical markets for business and leisure travelers.’’

China Southern chairman Wang Chang Shun predicted cooperation between the two airlines would create enormous benefits for the industry and customers around the world.

American said its customers would be able to access almost  40 destinations beyond Beijing and more than 30 destinations beyond Shanghai while China Southern customers would gain access to almost 80 destinations in North and South America.

“The expected codeshare routes are anticipated to include the ability to earn and redeem AAdvantage Miles, through-bag checking and the ability to book travel on a single ticket,’’ it said.

 “The planned routes operating under the interline agreement are anticipated to include through-bag checking to the traveler’s final destination.”

Other Chinese carriers already have minority overseas airline shareholders: Delta Air Lines has a stake in China Eastern and Hong Kong’s Cathay Pacific owns about 18 per cent of Air China.
 

After a stunning start due to an early Lunar New year, demand growth in the Asia-Pacific dropped to more subdued levels in February but the Association for Asia Pacific Airlines remains optimistic about future growth.

Preliminary figure released by the association showed a total of 24.2 million international passengers flew on the region's carriers in February, up  2.2 per cent compared to the same month last year. That compares with a 7.7 per cent rise in January compared to the previous year.

Demand in terms of revenue passenger kilometres grew by 3.9 per cent, outpacing a modest 1.2 per  cent increase in available seat capacity to see the average international passenger load factor rise by  2.1 percentage points to 80.2 per cent. 

International air cargo demand, considered an indicator of economic health, registered double-digit growth of 11.3 per cent in February compared to the same month last year.

AAPA said this was underpinned by strong growth in new export orders and an acceleration in international trade activity. 

"Notwithstanding the distortion in growth comparisons due to the earlier timing of this year's Lunar New Year festive period, combined figures for the first two months of the year show an encouraging 5.1 per cent  increase in the number of passengers carried by the region's carriers to a combined total of 51 million,’’ AAPA director general Andrew Herdman said.

"During the same period, air cargo demand registered a healthy 7.6% increase, with a boost in demand for air cargo shipments of intermediate and finished goods." 

"High levels of business and consumer confidence across most major markets underpins continued optimism for further growth in both air passenger and cargo demand. 

“However, intense market competition, rising fuel and other costs will continue to put pressure on yields.  As such, the region's carriers remain vigilant in seeking further opportunities to enhance growth and increase operational efficiency."