Avia Time, December 2011 by AeroTime

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2011 DECEMBER No.12 (34)

BOEING 787 DREAMLINER SETS SPEED, DISTANCE RECORDS Boeing has established tw o w orld records w ith the 787 Dreamliner, setting new marks for both speed and distance for the airplane’s w eight class. “Speed and distance capabilities are fundamental to the value the 787 brings to the market,” said Scott Fancher, vice president and general manager of the 787 program. “These records are a great w ay to demonstrate that this airplane is the game-changer w e have promised.” Read more >

Lufthansa and IAG sign purchase agreement for the sale of British Midland Ltd. Sale provides sustainable future prospects for bmi / Lufthansa to benefit from stronger financial position Follow ing the announcement on November 4, 2011, Deutsche Lufthansa AG (Lufthansa) and International Airlines Group (IAG) have signed a binding agreement for the sale of British Midland Limited (bmi) to IAG. The price is GBP 172.5 million (approx. EUR 207 million) in cash for bmi. The price is subject Read more >

Ryanair to reduce the number of flights from Riga by 30% The number of flight from and to Riga operated by Irish low -cost operator Ryanair are expected to be reduced by 30% due to introduction of security fees at Riga International Airport, The destinations w hich w ill experience the reduction of flights form Riga are expected to be Bristol (Great Britain), Bremen (Germany), and Tampere (Finland). The airline is also expected to decrease the number of flights on eight of its routes, including such destinations as London, Milan, Rome and Brussels. Read more >

Airbus CEO Predicts Decline In Orders In 2012 Airbus sees the decline in orders in 2012 compared to 2011, how ever, so many airplanes w ere ordered in 2011 that a production increase is likely. That is the assessment from Airbus CEO Tom Enders in an interview published aviatime.mailer.lt/email/Aviatime-34-34441/view

European Commission Announces ‘Better Airports’ Package The package of measures w as created by The European Commission (EC) in order to to help increase the capacity of Europe’s airports, reduce delays and improve the quality of services offered to passengers. The measures address the quality of services passengers and airlines receive on the ground before they take off and after they land (for example, baggage handling, check-in, refueling), the transparency of decisions on airport noise, as w ell as the efficiency of the complex netw ork of take-off and landing slots that make up every journey. The Commission plans to authorise w hat is know n as ‘secondary trading’ of slots, ie 1/8

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Thursday in the German new spaper Boersen-Zeitung. Read more >

Gulfstream International Airlines ReBrands As Silver Airways Silver Airw ays Corp, a new regional carrier launched w ith assets from the former Gulfstream International Airlines, unveiled its new brand and logo at a special launch event held in Fort Lauderdale today. Developed in conjunction w ith Aerobrand, the new Silver Airw ays brand espouses core values of professionalism, quality, vibrancy and trust, w hile also highlighting the benefits of turboprop aircraft. Read more >

Malaysia Airlines unveils plan to regain profitability Malaysia Airlines (MH) unveiled a plan to return to profitability by 2013 that includes launching a new regional premium airline, shrinking its netw ork, focusing on costs and making aggressive efforts to w in back customers. The plan targets a net loss of MYR165 million ($55 million) in 2012, w hich w ould be a substantial improvement over MH’s net loss of MYR527 millionfor just the 2011 second quarter and estimates a potential 2013 net profit of MYR1.18 billion-MYR1.51 billion. Read more >

Norwegian reports strong passenger growth in November Norw egian (NAS) today reported November traffic results. The company continues to experience a solid passenger grow th. More than 1.3 million passengers flew w ith the airline in November 2011, an increase of 20 percent compared to the same month previous year. Read more >

Finnair optimizes its narrow body fleet Finnair plans to reduce the size of its narrow body fleet by four aircraft in autumn 2012 as a part of its earlier announced savings program of 140 million euros. These changes in fleet w ill bring significant savings and w ill be implemented by optimizing the airline’s flight schedules and netw ork. Finnair expects to realize a significant boost in narrow body aircraft utilization as a result of this move.

the possibility for an airline to sell its slots to another airline. This practice has been neither explicitly banned nor explicitly authorised to date. It is expected to facilitate the entry of new airlines at airports. The proposal also strengthens the existing ‘use it or lose it’ rule, w hereby airlines must use their slots at least 80%, otherw ise they w ill be placed in a pool and thus made available to other airlines. The required use rate w ill be raised to 85%. The shift should enable 24 million passengers a year to pass through Europe’s air transport system by 2025, the EC projects. According to Vice President Siim Kallas, European Commissioner responsible for Transport, „‘Europe’s airports are facing a capacity crunch. If business and the traveling public are to take best advantage of the air netw ork, the actions need to be taken. He specified that „70% of all delays to flights are already caused by problems on the ground not in the air. By 2030, 19 major airports w ill have reached the saturation point, including Paris Charles de Gaulle, Warsaw , Athens, Vienna and Barcelona. Reforms are therefore crucial. Five airports already operate at full capacity: Düsseldorf, Frankfurt, London Gatw ick, London Heathrow and Milan Linate. This means that it is already impossible to obtain new slots at these airports. The resulting congestion could mean delays for half of all flights across the netw ork.“ He noted that „The status quo is not an option for airports in Europe.“

Estonian Air’s AirScore the Best Social Media Campaign in the world 30 November 2011 in Miami, USA, Estonian Air’s social media loyalty programme AirScore w on a Mega Aw ard in the category of the Best Social Media Campaign. The Mega Aw ards are given out by Airline Information – a leading company in organizing commercial aviation conferences w ordw ide. The event is the biggest of its kind on the w orld. Read more >

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„Faced w ith intense global competition, if w e do not change the w ay w e do business, w e may not be doing business at all.” He said The package consists of a policy summary document and three legislative measures, on slots, ground-handling and noise. How ever, The European Commission’s plan drew a mixed response from industry. 2/8

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Boeing’s 787 on ‘World Tour’ He and other officials from Chicago-based Boeing said the company is seeking to raise the pace of 787 production. Randy Tinseth, vice president of marketing for Boeing’s commercial-aircraft division, said the company still aims to reach its output target of 10 Dreamliners a month by the end of 2013, up from 2.5 a month currently. Read more >

Air France KLM further expands in China Air France (AF) is expected to start 3X-w eekly scheduled service betw een ParisCharles de Gaulle and Wuhan Tianhe in April 11, 2012. The Boeing 777-200ER aircraft designed w ith 309 seats consisting of 35 in business, 24 in premium economy and 250 in economy. AF is the first airline to offer direct flights betw een Europe and Wuhan. Read more >

Tanzania’s Precision Air Services signs contract for 5 ATR -600s The airline w ill introduce four ATR 42-600s and one ATR 72-600 and w ill become the largest operator of ATRs in Africa Tanzanian carrier Precision Air Services and ATR today announced the signature of a contract for the purchase of four ATR 42-600s and one ATR 72-600 aircraft. The deal is valued at US$ 98 million. Delivery of the 50-seat ATR 42-600s w ill start in late 2012. The ATR 72-600 w ill be delivered in 2014. Read more >

Small Planet Airlines enters a long-term cooperation agreement with Neckermann Small Planet Airlines and Neckermann, a leading Polish travel agency, have signed a 3year deal to operate flights from Poland, Czech Republic, and Hungary to Greece, Bulgaria, Turkey, Spain and Egypt resorts. Read more >

Armavia confirms the Sukhoi Superjet 100 successful operations The first conference on the Sukhoi Superjet aircraft operations by Armavia Airlines w as held at the headquarters of Sukhoi Civil Aircraft Company (SCAC) in Moscow on November 22, 2011. Representatives of Armavia, SCAC, SuperJet International (SJI) and Pow erJet attended the conference. Read more >

Qatar Airways signs up with Iberia Airport Services beria’s handling division w ill assist the airline’s passengers and aircraft at MadridBarajas airport for the next three years Read more > aviatime.mailer.lt/email/Aviatime-34-34441/view

The Association of European Airlines (AEA) is opposed to tightening the use-it-or-lose-it slot standard. According to Ulrich Schulte-Strathaus, AEA’s secretary general, „“if this regulation is passed, it w ill seriously hamper airlines’ ability to react to changing demand.”. He also noted that “business flexibility is an absolute necessity in today’s tough economic climate.” Conversely, the European Business Aviation Association (EBAA) complains that it is forced into playing a secondary role to airlines because the slot allocation is linked to passenger numbers. “While EBAA w elcomes a revision of the system for allocating slots at Europe’s airports, a fair and equitable solution w ould recognize historical rights for all airspace users, w ith an understanding that each airspace model is an essential component of Europe’s air transport policy. It must also consider that using slots 80% of the time is already extremely challenging and should not be reconsidered,” says CEO Fabio Gamba. The International Air Transport Association reacted cautiously to publication of the European Commission’s Airport Package of legislation. IATA highlighted tw o of the package’s positive features: IATA w elcomes the further liberalization of the ground handling market w hich should allow airlines to provide a better and more efficient service at European Airport s. IATA acknow ledged that by legalizing secondary trading of Airport slots, the package provides a regulatory foundation for a practice that has become w idespread. Transparent rules w ill ensure that this is done in fairness to all parties concerned. In September IATA forecast that European airlines w ill see profits plummet to $300 million in 2012 for an EBIT margin of just 0.8%. A revised industry outlook w ill be announced on 7 December. The Commission’s proposals must be approved by the European Parliament and Member 3/8

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The world class training center for the Sukhoi Superjet 100, the first Russian brand new commercial aircraft

State Governments by the “codecision” procedure, before being adopted.

The opening ceremony of the Training center for the flight and technical staff of customers and operators of the Sukhoi Superjet 100 (SSJ100) aircraft w as held today in Zhukovsky. The ceremony w as attended by representatives of the Russian Government, Aviation Authorities, Interstate Aviation Committee, Russian aircraft industry and institutes, airlines-operators of the SSJ100, Russian financial organizations and leading media.

ANA to establish “panda Flight Academy”

Boeing Delivers the 7,000th 737 On the 16 th of December Boeing delivered the 7,000th 737 to come off the production line to Dubai-based flydubai. The airplane is flydubai’s 14th Next-Generation 737-800 w ith the new Boeing Sky Interior. The Boeing 737 is the best-selling commercial jetliner of all time w ith total orders exceeding 9,300 airplanes, including orders for the new 737 MAX. Read more >

Airports in EU and CIS Gatw ick Sees Small Rise In Passenger Numbers SkyTeam Airlines Co-Locate at Beijing Capital International Airport Riyadh Airport To Triple In Size Over 5 Years Servisair expands w ith VivaAerobus at MIA, MCO and SAT Riga Airport still is least expensive airport in Europe Shanghai Pudong airport gets approval for tw o new runw ays World’s best airport helps w orld’s w orst Ryanair Adds Capacity at Brussels Charleroi Aéroports de Paris introduces the automated baggage drop-off Baltic Ground Services to provide aircraft ground services for the Russian aviation giant Transaero Travel Service aw arded Menzies Aviation a 3 year contract for full Ground Handling at Prague Airport Sw issport w elcomes EU ground handling proposal: ‘Third licence is the right approach’ Read more >

Airlines worldwide Pegasus Airlines Takes Delivery of It’s New est Boeing 737-800 “SEVDE NIL D.” With Re-Designed Interior Estonian Air gets the third new generation aircraft Scandinavian Airlines launches Internet and GSM on board India’s Kingfisher Airlines to be part of one w orld from 10 February

ANA Group, Japan’s largest airline group, today announced it established panda Flight Academy to train licensed and employed pilots for changing the license of aircraft and for promotion, necessary for future expansions, including the Low Cost Carrier ventures. The company w ill provide pilots w ith the training using the simulators in order to assist them shifting the license to A320 for civil aviation businesses. The new panda Flight Academy w ill be set up w ith 75 million yen as the initial capital. The Academy w ill have both B737NG and A320 plane simulators and is expected to be operational by May next year. The ow nership is split betw een ANA and ANA Trading Co. Ltd (51% and 49% respectively). Katsumi Nakamura, ANA Executive Vice President of Flight Operations, w ill be assigned as the CEO of the company. The academy w ill be built upon ANA’s established experience as a provider of high-quality training w ith the cooperation of Pan Am International Flight Academy, the leading pilot training company in the United States. The new company w ill be located at Higashi-kojiya, Ota-ku, Tokyo, and w ill be equipped w ith the tw o simulator bays and 11 classrooms.

Etihad Airw ays Becomes Biggest Single Shareholder in AirBerlin Lion Air plans new aircraft order in February FAA gives nod to Boeing 747-8 Intercontinental Boeing Unveils First 787 to Enter Service for Japan Airlines airberlin once again receives sustainability rating from oekom research AG airBaltic increase load factor +10 pp in November aviatime.mailer.lt/email/Aviatime-34-34441/view

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Ethiopian Airlines Joins Star Alliance Thai Airw ays to become first Asian airline using biofuel Emirates launches A380 connectivity airBaltic Worlds First to Sell Cars on Board Russian domestic flights decreased 10% over past decade European netw ork carriers brace for tough 2012 Avia Solutions Group AB sold Estonian charter operations Royal Air Maroc and the Association of European Airlines agree partnership deal Czech Airlines Changing its Model of Operations in Slovakia SWISS now offers automated check-in Gulfstream Opens Beijing Sales Office Spring Airlines prepares to launch carrier in Japan Ryanair Announces New Billund Base Brussels Airlines increases frequencies to five African destinations Estonian Air joins ERA airBaltic Training Starts Courses for Business Aviation Flybe w elcomes draft civil aviation bill proposal to compel airlines to publish eco-data Transaero Airlines firms up order for eight A320neo aircraft Mobile check-in from Malev “The future is ours” – Etihad Airw ays CEO encourages Arab air carrier organisation delegates to unite Ethiopian Airlines Receives the AFRAA Aw ard Kolkata Becoming Latest Indian Gatew ay for Qatar Airw ays Cebu Pacific Air and CAE to establish new aviation training center in Philippines Read more >

Aircraft market and industry Final Gulfstream G200 Rolls Off Production Line Embraer Delivers First E-Jet To China’s Hebei Airlines Bombardier Doubles Number of Regional Support Office Locations for Business Aircraft Customers Boeing Business Jets Delivers First BBJ to Nanshan Jet of China Boeing Delivers the 7,000th 737 Ministry of Transport intends to start provision of subsidies for acquisition of regional aircraft in 2012 Boeing, FedEx Announce Order for 767 and 777 Freighters Jet Blue Chooses Pratt To Pow er New Airbus Order Embraer’s Legacy 650 Certified by CAAC Skyw est Airlines to introduce 5 additional ATR 72-600s into Australia Boeing 737 MAX Logs First Firm Order from Launch Customer Southw est Airlines Boeing Delivers BOC Aviation’s 50th Next-Generation 737 7,000th Airbus aircraft delivered – an A321 to US Airw ays Boeing, Etihad Airw ays Announce Order for 10 787-9 Dreamliners China Aircraft Leasing orders 20 COMAC C919s First US-Assembled Embraer Phenom 100 Makes Maiden Flight Boeing 787 Dreamliner Sets Speed, Distance Records Aeroflot’s Sukhoi Superjet 100 has started performing international flights VietJet Air to Launch in December aviatime.mailer.lt/email/Aviatime-34-34441/view

US rejects EU’s claim of com pliance w ith WTO ruling on Airbus subsidies The United States on Friday rejected a European Union plan to eliminate subsidies provided to Airbus and said it w ould ask the WTO for permission to impose trade sanctions that could amount to betw een USD$7 billion and USD$10 billion annually. According to US Trade Representative Ron Kirk „Not only had the EU failed to comply w ith a World Trade Organization ruling against subsidies to Airbus, European governments have even provided it new subsidies“ Washington said EU documentation filed w ith the World Trade Organization “appears to show that the EU has not w ithdraw n the subsidies in question and has, in fact, granted new subsidies to Airbus’ development and production of large civil aircraft.” Kirk announced the US w ould seek “consultations” w ith the EU over the matter, and threatened to impose sanctions as it seeks to defend US aircraft manufacturer Boeing, the key rival of France-based Airbus. Airbus said earlier this month that the EU has made “limited changes” that remedy the illegal aid that WTO ruled the manufacturer received on the A380 program, insisting that major reforms aren’t necessary. The EU and Airbus are now in “full conformity w ith WTO obligations,” Airbus stated. How ever, Kirk noted in a statement that the US does not believe the EU and Airbus have complied and is asking WTO for authority “to impose countermeasures annually in response to the EU’s claim that it fully complied w ith the ruling in this case. The amount of the countermeasures w ould vary annually, but in a recent period w ould have been in the range of $7-$10 billion.” He also said “The United States cannot accept anything less than an end to this subsidized financing. The United States remains prepared to engage in 5/8

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Boeing 747-8 Intercontinental debut in Germany set for Dec. 6 Boeing rolls out first factory-complete 737 at higher rate Embraer opens its global customer center for executive jets and prepares to deliver first U.S. built aircraft to executive airshare BOC Aviation’s first Embraer aircraft purchase and leaseback transaction Russian airlines have transported more than 54,7 million passengers during 10 months of 2011 North America needs 5,901 new passenger aircraft in next 20 years Sharklet-fitted Airbus A320 successfully completes first flight-test Boeing Delivers Second 777-300ER to Biman Bangladesh Airlines Airbus CEO Predicts Decline In Orders In 2012 Baltic Aviation Academy to provide type rating training for Air X Executive Jets Gmbh Emirates-CAE Flight Training announces long-term exclusive training services agreement w ith flydubai for new airline training centre in Dubai’s Silicon Oasis AviationCV.com: the Eurozone crisis is to affect pilot markets in the emerging economies CAE aw arded contracts valued at more than C$50 million for four full-flight simulators and training devices FL Technics Training: aviation accident prevention largely depends on technical personnel readiness ALC Finalize Order for 787s and Next-Generation 737s Baltic Aviation Academy Clients Are Able to Book Courses Faster via New Online Service System Is there a w ay to uniform the JAA and FAA licensing requirements? CAA has approved the Baltic Academy e-Learning system for ‘no classroom’ ground school Boeing Partners to Offer “Street to Right Seat” Pilot Training Program in Africa EU-w ide pilot licences next year Iberia expects to recycle 50% of solid w astes this year Read more >

MRO overview In the next three years’ time the Baltic States, Russia and the CIS w ill spend over USD 1.42 billion on medium range aircraft engine maintenance Locatory.com signs a cooperation agreement w ith Russian Civil Aviation Institute Pegasus Airlines extends Long-Term Contract w ith Turkish Technic for All Boeing Fleet Technics signs exclusive agreements w ith Philippine Airlines Malaysia Airlines engineering and Maintenance Signs Tw o Engineering Services Agreements And An Mou In Lima 2011 Messier-Bugatti-Dow ty and Barfield announce tw o cooperation agreements Royal Jordanian Contracts AFI KLM E&M For A330 Component Support Joint demonstration of new electric taxi system MTU Aero Engines improves operating result and confirms 2011 year-end forecast Locatory.com: reliability is one of the key factors in the aviation industry Yakutia Airlines signed maintenance contracts w ith Turkish Technic for ıts B737-800 Air France suspends maintenance in Chinah Avia Solutions Group established new representative office in Kuala Lumpur Jet Aviation Dubai achieves Gulfstream G200 approval airberlin technik provides servicing to Emirates A380 in Munich aviatime.mailer.lt/email/Aviatime-34-34441/view

any meaningful efforts, through formal consultations and otherw ise, that w ill lead to the goal of ending subsidized financing at the earliest possible date.” According to him he subsidies received by Airbus “have directly resulted in Boeing losing sales involving purchases of Airbus aircraft by easyJet, Air Berlin, Czech Airlines, AirAsia, Iberia, South African Airw ays, Thai Airw ays International, Singapore Airlines, Emirates Airline and Qantas.” John Clancy, a spokesman for the European Commission in Brussels, called the US sanctions threat “premature and not in line w ith the appropriate sequence of events in WTO disputes. We w ill nevertheless review the requests carefully and consider the next steps.” Last w eek the EU presented a plan to comply w ith a WTO appellate body ruling against European government support for Airbus in a case brought by Washington in 2004. Boeing issued the follow ing statement after the U.S. Trade Representative continued its efforts to ensure European Union compliance w ith last June’s WTO ruling regarding illegal subsidies to Airbus. “Boeing is disappointed that EADS/Airbus and European governments have failed to comply w ith the WTO’s landmark ruling against launch aid and other forms of illegal government subsidies that Airbus has received for more than 40 years. Boeing strongly supports all the efforts by the U.S. Trade Representative to seek full compliance w ith the removal of all the illegal government subsidies to Airbus — particularly market-distorting launch aid, the most pernicious form of subsidy Airbus w as found to have received. There can be no compliance w ith the WTO’s ruling that ignores any non-commercial launch aid that Airbus is currently receiving for the A350. Despite the very clear WTO ruling, EADS/Airbus and European governments have failed to remove outstanding subsidies. This illegal subsidization of Airbus products 6/8

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LC Busre from Peru signs ABACUS contract w ith Fokker Services for Dash 8 turboprops. Aerovista’s Fourth Aircraft Conducts Heavy Check in EgyptAir Maintenance & Engineering

– plane after plane – is unsustainable and must stop now .”