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Qatar sets new level in business class

Gulf carrier Qatar has significantly upped the ante in business class with a remarkable new product that offers customisable suites allowing passengers to create their own private “room” as well as set up double beds in centre seats.

Boasting features previously seen only in first class and called Qsuite, the patented suite was unveiled at ITB Berlin on Wednesday by Qatar airlines chief executive Akbar Al Baker in a life-size cross-section of an aircraft.

Each 79-inch lie-flat seat features hand-stitched Italian leather and comes with a privacy screen that allows passengers to create their own private cabin. At 21.5 inches wide, they are not the widest business seats in the sky but the suite features plenty of space for devices and documents, USB and HDMI connectivity and a big 21.5-inch  HD screen featuring the airline’s new Oryx One entertainment system with up to 3000 entertainment options. Other features include special accent lighting, a do not disturb indicator and moveable armrests.

The airline also signalled it would be offering “ best-in-class inflight connectivity” from this northern summer.

Qsuite is the result of two years of research by Qatar and features centre seats that can be transformed into a double cabin, with the first double bed in business class, or a space for four people called a “quad”.   It will be retrofitted on existing aircraft from June at an estimated rate of one aircraft a month. The first aircraft to get the aircraft will be a new Boeing 777-300ER on the Doha-London route from June with Paris and New York's JFK next in line at yet-to-be-released dates. The B777-300 will feature 42 business class suites in a 1-2-1 configuration.

With the quad, adjustable panels and TV monitors in the centre four seats allow passengers travelling together to transform the space into a private suite where they can work, dine and socialise together. 

“Our unique and patented design is a world first in many ways and challenges industry norms by offering passengers more privacy, more choice and more personalisation.,’’ Al Baker said.

“With these innovations, Qatar Airways has revolutionised the way we serve our business class travellers, enabling our passengers to enjoy a first class experience in business class. ‘’

The new suite will combine with on-demand dining featuring a new food and beverage service with a new menu the airline says will offer a host of new dining choices including “sharing dishes’’.

New chinaware and cutlery will be accompanied by up-mark bed linen, the recently-announced sleeper suits by the White Company and bespoke amenity kits.

Qatar has a  fleet of 194 aircraft flying to more than 150 key business and leisure destinations across six continents.

 

US travel industry sees new Trump ban as less onerous

tax budget airlines
President Trump. Photo: BBC

The long-awaited re-make of U.S. President Donald Trump’s travel ban is not setting off fireworks the way the first version did, at least not among travel industry professionals.

In a prepared statement,  U.S. Travel Association president Roger Dow said the Trump Administration deserved some credit “for the substantially more cautious and deliberate introduction of the revised executive order.”

The  Global Business Travel Association (GBTA) agreed, calling the new executive order an improvement over the January 27 version. 

 That order was a haphazard effort, one that set off public demonstrations at airports across the United States.

GBTA executive director Michael W. McCormick believes the new order offers some clarity for travelers and government officials alike.

 “The exemption for legal permanent residents, dual nationals and current visa holders will help mitigate confusion for the international traveling public,” he said.

Specifically,  the revised order bans nationals from Sudan, Syria, Iran, Libya, Somalia and Yemen who don’t have valid visas from entering the U.S. for 90 days, effective March 16.

 A fact sheet from the Trump Administration says that 90-day number is intended to review or establish standards aimed at preventing terrorists or criminals to enter this country.

 Iraq is not one of the countries covered by the second order because the war-torn nation will be increasing cooperation with the U.S. when it comes to vetting its citizens applying for travel visas to the United States.

Nor does the new order apply to lawful permanent residents of the United States or those with a document that’s valid the date the ban takes effect (March 16).

Despite the better reviews this time around, U.S. Travel Association chief Dow questioned whether the revised order did enough to mollify prospective travelers from Canada, Europe or elsewhere around the world who may have been put off by the initial travel ban.

The jury on that is still very much out.
 

Airlines crowing as strong demand kicks off Year of the Rooster.

IATA passengers global profit 2018

Global air travel has had a rip-roaring start to the Year of the Rooster with passenger demand growth in January hitting a five-year high and pushing aircraft load factors above 80 per cent.

A boost from Lunar New Year celebrations saw January demand 9.6 per cent higher than a year ago with Asia Pacific carriers recording an increase of 10.9 per cent on January, 2016.

The International Air Transport Association estimated that holiday traffic contributed up to 0.5 per percentage points to a result that still signalled a robust start to the year. January global capacity growth of 8 per cent lagged demand growth to see load factors climb 1.2 points to 80.2 per cent.

“2017 is off to a very strong start, with demand at levels not seen since 2011,’’ said IATA director general Alexandre de Juniac. “This is supported by the upturn in the global economic cycle and a return to a more normal environment after the terrorism and political ‘shock’ events seen in early 2016.” 

International passenger traffic surged 9.3 per cent in January compared to a year ago, while capacity rose 7.5 per cent to see the average load factor hit 80.3 per cent.

Planes were even fuller in the Asia-Pacific, where the load factor rose 1.5 percentage points to 81.4 per cent, but carriers in the region are still reporting intense competition that is keeping a lid on ticket prices.

Strong growth of 8.3 per cent was also reported in Europe against “a backdrop of moderate momentum in the Eurozone community”.

Middle East carriers reported the strongest growth of 14.4  per cent with load factors rising against the year-ago period for the third consecutive month to hit 79.8 per cent.

Latin American passenger demand rose 8.2 per cent with carriers in the region recording the highest load factor 83.7 per cent, while  Africa was up 5.6 per cent.

North American airlines experienced the slowest demand growth of 3.2 per cent and the load factor for the region was flat at 80.3 per cent. 

“Traffic on the transpacific market has continued to trend upwards but North Atlantic traffic growth has weakened since the middle of 2016, reflecting softer demand on UK-US routes,’’ IATA said,

Global domestic air travel climbed 9.9 per cent in January with India and China both posting huge increases.

India posted its 15th consecutive month of growth above 20 per cent to lead the field with a 26.6 per cent increase on the back of strong flight frequency.

China’s domestic traffic growth of 23.2 per cent was its strongest monthly figure since June, 2010.

“The timing of the Lunar New year affected the results but ongoing robust expansion in the services sector as well as increasing flight frequency are boosting demand,’’ the report said.

Countries with low or negative domestic growth included Brazil (-2 per cent) and Australia (1.1 per cent). 
 

Boeing, Embraer roll out new jetliners

737 MAX

The MAX 9 is the second version of the new, more fuel-efficient versions of the 737 to roll off the production line and is designed to carry up to 220 passengers with a range of 3,515 nautical miles (5837kms).

The rollout comes as the smaller MAX 8 is due to enter service in the second quarter of this year with the MAX 9 to follow next year.

Boeing said the second aircraft would begin system checks, fueling and engine runs on the flight line before entering flight tests in the coming weeks.

"The 737 MAX team continues to do a fantastic job getting us to these important milestones right on schedule," Keith Leverkuhn, vice president and general manager of the 737 MAX program, Boeing Commercial Airplanes said in a statement. "Our primary focus is delivering an aircraft that has the legendary reliability our 737 customers depend on, plus the optimized flexibility and range capability they desire." 

The extended range of the MAX’s mean they can be operated on trans-Atlantic flights, opening up new possibilities for airlines.

 Norwegian Airlines, which has bought 108 MAX 8s, will start flying the 186-seat aircraft from Ireland to new US destinations, including Providence, Rhode Island, and Stewart International Airport, about 100 kilometres north of New York City, this year.

But Boeing is being beaten in terms of sales at the bigger end of the single-aisle market by Airbus’s A321 neo, which can fly 3699 nautical miles (6850kms) with sharklets, seats up to 236 passengers and will be used by Norwegian to open up new routes between major European cities and the US in 2019.

Analysts estimates sales of the A321 neo are at least three times those of the 787-9 MAX.

Enter the MAX 10X.

Boeing Commercial Airplanes marketing president Randy Tinseth confirmed on his blog this week that Boeing was actively engaged with airlines about the 737 MAX 10X and had already extended business offers to some customers.

He said the aircraft, which would use the CFM LEAP-IB engines also used by the MAX 9, would be the most profitable single-aisle aircraft the industry had ever seen.

“Compared to the A321neo, the MAX 10X would offer the same capacity, lower costs (5 percent lower per seat and 5 percent lower per trip) and more range,’’ he said. 

“This would be a relatively minor development program. The MAX 10X would follow the MAX 200 and MAX 7, with entry into service in the 2020  time frame.”

Also rolling out Tuesday was Embraer's E195-E2 regional airliner, expected to enter service in the first half of 2019.

The E195-E2 has three additional rows of seats compared to current E195s and can carry 120 passengers a two -class configuration or up to 146 in a single class. 

The Brazilian manufacturer says It can fly 450 nautical miles (833km)  further than its predecessor on trips of up to 2,450 nautical miles 4537km).

“The E195-E2 has the potential to significantly change the fleet profile of airlines around the world,’’ said Embraer Commercial Aviation chief executive John Slattery. “With a 20 per cent lower cost per trip and a cost per seat similar to larger aircraft, the E195-E2 becomes the ideal aircraft for regional business growth as well as low-cost business plans and complementing existing mainline fleets.” 

The E2 program has 275 firm orders with 415 options and purchase rights.

Embraer will use two aircraft for the certification program, one for aerodynamic and performance tests and the other to validate maintenance tasks and the interior.

Plane makers face new environmental standards.

New aircraft designs introduced from 2020 will be subject to the world’s first global design certification standard aimed at lowering greenhouse gas emissions after the system was formally adopted this week by the UN-backed International Civil Aviation Organisation.

ICAO endorsed the new aircraft CO2 emission standards at a meeting of its 36- member council. The standard will apply to new aircraft from 2020 and also to deliveries of aircraft already in production from 2023.

Manufacturers of in-production aircraft failing to meet the standard by 2028 will be forced to cease manufacturing the planes unless their designs are modified.

This is the first time a global industry sector has adopted a design standard and is part of wider moves by the aviation industry to reduce greenhouse emissions and become carbon neutral by 2020 and halve them relative to 2005 levels by 2050.

It has been estimated that the new rules will cut greenhouse emissions by about 650 million tonnes between 2020 and 2040.

The wider agenda includes a decision last year to adopt a  global carbon offset scheme, the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA).

The world’s first global industry pollution agreement will start as a voluntary scheme from 2021 to 2026 but will then become mandatory across the aviation industry.

Airlines will have to buy carbon credits to offset growth in emissions, a move that is expected to account for less than 2 per cent of revenues but has raised concerns in some states about costs.

ICAO Council president Olumuyiwa Benard Aliu said the latest development confirmed the sector’s “leadership and concrete actions toward ensuring a sustainable and environmentally responsible future for global civil aviation’’.

“International civil aviation has once again taken pioneering action to address the impact of aviation CO2 emissions on the global climate, making air transport the first industry sector globally to adopt a CO2 emissions design certification standard,’’ he said.

The new standards will be part of a new volume to Annex 16 of the Chicago Convention, the global agreement covering aviation, and become applicable from January 1, 2018.

Where a type certificate is submitted after January 1, 2020, the new standard will apply to jets with a maximum take-off weight (MTOW) greater than 5700 kg.  However, it will not apply until the start of 2023 to new jets with seating for 19 passengers or less and an MTOW of up to 60,000 kg.

It will also apply to all new type certificates submitted after January 1, 2020 for propeller-driven  aircraft with an MTOW of greater than 8618 kg,

 

New Zealand beefs up air traffic control

New Zealand departures halted

New Zealand’s air traffic controller will spend $NZ58m replacing current systems to help it cope with a projected 50 per cent growth in air traffic over the next decade.

Airways New Zealand will replace two existing systems with the Leidos Skyline X system over the next four years. 

The existing air traffic management platforms, installed between 2000 and 2003 are ending their useful lives and will be replaced by the new technology in domestic airspace in 2020 and the following year in oceanic airspace.  The new system will have an expected lifespan of about 15 years.

New Zealand has seen a surge in air traffic in the last two years and increased competition to the popular tourism destination has put pressure on airline profitability.

Airways NZ has promised to deliver $NZ84m in efficiencies by 2028 and the new system will help achieve that objective.

Chief operating officer Pauline Lamb said the new system would allow to implement a new operating model as well as take advantage of advanced tools such as such as medium and long term conflict alerting, time-based separation and arrival and departure management.

It would also help optimise staff deployment, she said.

“We will be working collaboratively with Leidos to develop this system in a partnership model that will deliver long term savings to our customers,’’ Lamb said in a statement.  “By 2020 the new platform will allow airspace sectors to be operated from two new air traffic control centres in Auckland and Christchurch, in addition to 19 control towers nationwide.’’

Software development teams from Airways and Leidos will collaborate on the project with the air traffic manager purchasing the hardware and installing and testing the system. 

Leidos Civil Group president Angie Heise said technology enhancements in the new system included the introduction of world-class flow management capabilities “ as well as an integrated approach that enables a vision for a single system to support tower, terminal, en-route and oceanic control operations."
 

Jetstar, Virgin Australia fined for misleading consumers

Jetstar has been hit with a $545,000 penalty and Virgin Australia with a $200,000 fine for misleading consumers with “drip pricing”.

The practice involves advertising a headline price at the start of an online booking process and then incrementally disclosing additional fees and charges which may be unavoidable to consumers.

It has been an issue in a number of jurisdictions as well as in industries such accommodation and car sales.

Australia's  Federal Court ordered Jetstar to pay the fine for false or misleading representations about specific advertised airfares on its website in 2013 and its mobile site in 2014.

 Virgin was found to have made false or misleading representations about specific advertised airfares on its mobile site in 2014.

The judge said the penalty against Jetstar was designed to discourage similar behaviour by others.

 “The ACCC was concerned that Jetstar and Virgin’s ‘drip pricing’ conduct drew consumers into an online purchase process with a headline price but failed to provide adequate disclosure of additional fees and charges that are likely to apply,” Australian Competition and Consumer Commission chairman Rod Sims said in a statement.

“As a result of the ACCC’s enforcement and compliance actions, businesses across several industries, including ticketing and accommodation, have now improved their online booking practices to provide adequate disclosure of additional fees and charges that are likely to apply.”

Sims said the ACCC was turning its attention to consumer guarantees issues in the airline industry as part of its compliance and enforcement priorities for this year.

MH370: University pinpoints location

The University of Western Australia, which predicted the landfall of debris from MH370 well over two years ago, has identified a precise location of where it believes the Boeing 777 crashed on March 8, 2014.

On the eve of the third anniversary of  the plane's disappearance with 239 aboard, UWA’s Professor Charitha Pattiaratchi, said that its reverse drift modelling put the location of MH370 “at Longitude 96.5 E Latitude 32.5 S with a 40km radius.”

This UWA location is at the northern end of a new area of 25,000sq km identified late last year by the Australian Transport Safety Bureau as the most likely impact point for MH370.

READ: MH370 search must resume

That new area was arrived at through an independent analysis of the satellite data and the drift analysis from the CSIRO and is close to what is called the 7th arc and bounded by latitudes 33°S to 36°S.

The ATSB and its partners have spent over two years searching an area of 120,000sq km in the Southern Indian Ocean which was based on the hourly satellite communication with the Boeing 777 whereas the new areas of interest overlay reverse drift modelling from the debris finds on the 7th arc. 

“Of the 22 pieces of debris found the location of 18 were predicted by the UWA model,” said Mr Pattiaratchi.

Despite the new analysis from the Canberra meeting, released in ATSB’s First Principles report in December,  Federal Transport Minister Darren Chester, on behalf of the Chinese and Malaysian governments killed off the search.

Mr Chester said the new area identified was not specific enough, which provoked ridicule from around the globe.

The parties involved in the ATSB-led search for MH370 include the British and US crash investigation agencies, Rolls Royce, Boeing, Thales of France, Inmarsat of the UK and the CSIRO.

The ATSB said in December that “the participants of the First Principles Review were in agreement on the need to search an additional area representing approximately 25,000 sq km.”

It added that “based on the analysis to date, completion of this area would exhaust all prospective areas for the presence of MH370.”

Also exhausted is debris hunter Blaine Gibson, who announced last week that he had given up his one-man crusade to find MH370.

Mr Gibson has found over 20 pieces of suspected debris but has received death threats and been accused of planting debris.

Recently Mr Gibson said he was disgusted at the attitude of the Malaysian government in calling off the search and its reluctance to pickup debris he had found. 

“ It’s comical, and it’s tragic,” Mr Gibson said.

The relatives of the victims of MH370 have announced a crowd funding campaign to raise US$15 million to continue the search.
 

MH370: With new data search must resume

There is no question that the handling by the Malaysian government and its aviation authorities into the loss of MH370 has been sub-optimal.

The first weeks were best described as a shambles with first confusion then contradiction which left relatives of those aboard certain that there was a cover-up.

Certainly the loss of MH370 on March 8, 2014 is unprecedented in modern times but the Malaysian Government’s performance over this tragedy has been a muddled disaster and that has only fuelled the conspiracy theorists, who have had a field day.

Almost every utterance — mostly via social media — from the host of Malaysian officials and military was a PR disaster.

That view is supported by noted aviation commentator and former senior air safety investigator with the US National Transportation Safety Board, Gregory Feith, who told The West Australian last month that the public’s confidence in the search had suffered badly.

However, Australia’s performance in the leading the search for the missing Boeing has won praise from Mr Feith.

“The Malaysian were out of their depth with MH370 and were lucky Australia took over, said Mr Feith.

The revelation from UWA of an almost exact location using reverse drift modelling from the debris, combined with the CSRIO ocean current analysis published late last year gives the governments of Australia, Malaysia and China the “specific spot” they say they are looking for.

Last year when Australia's Federal Transport Minister Darren Chaster called off the search he blamed the Australian Transport Safety Bureau saying he was following its advice.

In fact, the ATSB and its international partner’s strong recommendation was to search the new area identified as the final resting place.

MH370 will be found just as many ships such as the Bismark, HMS Hood, HMAS Sydney and the Titanic were found – it is in our DNA.

Competition watchdog highlights airport profit margins

border
Australians back international border closures.

AUSTRALIA’S four biggest airports continue to make massive profit margins of up to 73 per cent on parking and have increased the amount they charge airlines to handle passengers by a collective $A1.57 billion over the past decade, the nation’s competition watchdog has found.

All four airports were rated as “good’’ in the Australian Competition and Consumer Commission’s 2015-16  Airport monitoring report,  marking an improvement for Sydney and Melbourne airports on their ratings in last year’s report as “satisfactory”.

Perth Airport was singled out for a second year of notable improvement but the report showed none of the airports has ever achieved the highest rating of “excellent” and that satisfaction had stayed roughly in the same band.

 The ACCC’s annual report is based on airline and passenger surveys as well as objective measures. It was introduced after privatisation as part of a light-handed regulatory regime over the monopoly operators of Australia's four gateway airports.

Although aeronautical profit margins had fallen at three of the four airports, they still ranged from 46.7 per cent at Sydney Airport to 33.5 per cent in Perth. Brisbane came in at 44.9 percent and Melbourne at 38.2 per cent.

The report found airports were recovering substantially more aeronautical revenue per passenger than a decade ago as they moved to offset increased costs per passenger and grow profit margins.

 “The ACCC estimates that over the past decade, these airports have collected $A1.57 billion more in revenue from airlines than they would otherwise have collected if average prices were held constant in real terms,”  ACCC chairman Rod Sims said. “Despite these much higher revenues per passenger, ratings of service quality are not materially different from those seen a decade ago.”

On the parking front, Sydney Airport continued to make the biggest profit margin of 73.1 cents in the dollar followed by Brisbane (66.1 per cent) Melbourne (59 per cent) and Perth (55.6 per cent).

However, the ACCC found that more consumers were taking advantage of online discounts, particularly for long-term parking, that could be half that of drive-up pricing.

The commission also argued the benefits of an independent operator of Sydney’s proposed second airport at Badgerys Creek.

Sydney Airport has first refusal on the project but there has been increasing speculation it will not take up the option and the government will seek alternative investors or build the airport itself.

“A second international airport competing with Sydney Airport will yield significant benefits to both consumers and airlines,” Mr Sims said.

“On the other hand, a common owner of the two airports would have an incentive to restrict investment and delay the new airport in order to maximise returns from its existing assets.

“If Sydney Airport does not build and operate the new airport, the Government can build the airport and sell the assets once it is already established.”

Welcoming this year’s rating improvement, Sydney Airport chief executive Kerrie Mather said the airport had invested $A3.4 billion in airport improvements since 2002 and planned to invest a further $A1.3 billion in the next five years.

“This investment is delivering improved quality of service ratings during a time of unprecedented passenger growth and we look forward to building on this momentum in the future,’’ she said.

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