Aviation Financing

 Air Austral, based in France’s La Reunion, will become the first airline to fly planes carrying over 800 people after confirming an order for two Airbus A380 superjumbos earlier this week, industry sources said.

The sources said a provisional order for two of the European planes worth some US$650 million (A$695 million) at list prices, placed in January, would was expected to be firmed up at the Dubai event.

Airbus declined to comment.

Air Austral is the first airline to order a no-frills version of the world’s largest airliner, which is capable of carrying 840 passengers when contains only economy seats.

The 200 aircraft sold so far have all been ordered in their standard configuration of 525 seats and airlines have in practice opted for fewer seats by making more room for premium passengers

Spearheading a return to a healthy marketplace

release date: 16th September 2009

Dubai, UAE. 16 September 2009 – The Dubai Airshow opens its doors on 15 November, promising more exhibition space, plus innovative and technically-advanced aircraft, equipment and systems from the world’s leading players in the aerospace industry today.

Running for five days, from 15 to 19 November at Airport Expo, the biennial airshow is the foremost aerospace event in the Middle East and the fastest growing in the world.

With less than ten weeks to go, the Dubai Airshow has confirmed the showing of an awe-inspiring range of aircraft such as the advanced jet trainer Falcon L-15 from China-based AVIC, and a full-scale replica of the Eurofighter.

In the exhibition halls, the EADS stand will showcase an array of the group’s exhibits, including two impressive full-scale mock-ups – the Airbus A350 XWB cabin, in which visitors can watch the “Shaping Efficiency” audio-visual presentation, and Eurocopter’s 16-seater civilian helicopter, the EC175.

The Italian Airforce’s Frecce Tricolori and Patrouille de France aerobatic teams will display the capabilities of the Aermacchi and the Alpha Jet trainers, respectively, in the daily flying display.

Alison Weller, Director of airshow organiser F&E Aerospace, expressed confidence that this year’s Dubai Airshow will spearhead the aerospace industry’s recovery, reflecting the ‘green shoots’ apparent elsewhere in the global economy. “The past year has been a difficult time for the aerospace industry worldwide, with manufacturers, suppliers and service-providers facing a bleak and uncertain future.

“However, with a more bullish outlook for the coming year, especially within the Middle East region, I am cautiously optimistic that the Dubai Airshow will signal a return to a healthy marketplace and the opportunity for exhibitors and visitors alike to take advantage of the upturn.”

Visitors to the show will hear about the exciting development plans for the Aerion supersonic business jet, which will fly executives at twice the speed of today’s conventional business jets. A scale model will be on display on the Aerion stand.

Mubadala Aerospace, a business unit of Abu Dhabi’s Mubadala Development Company is showcasing a number of companies from its aerospace portfolio, in what will be one of the largest participations at the show.

Homaid Al Shemmeri, Associate Director of Mubadala Aerospace commented: “As the UAE becomes a major force within the global aerospace industry, Dubai Airshow increasingly becomes an important platform for us to demonstrate our progress, showcase our companies and celebrate our partnerships.

“Solidifying our presence in our home country, Dubai Airshow provides an excellent forum for us to exchange ideas and engage with the people of the UAE who will play an important part in the development of this exciting industry.”

In order to cope with the unprecedented growth of this year’s airshow, floor-space has been increased by over 7,000sqm, with the addition of a new hall, and the number of hospitality chalets has risen to 114, with the floor-space of the double-storey chalets enlarged by 40sqm (20sqm on each floor).

“Gathering together for face-to-face discussion, negotiation and deal-making is an essential part of the Arabian heritage and we are affirming the importance of carrying on this tradition by offering more hospitality chalets to exhibitors,” Ms Weller added.

JULIAN LEE

AIRPORT check-in times for domestic flights will be halved as part of a $200 million project by Qantas to improve customer service and introduce more automation in airports, in a move that unions fear will inevitably cost jobs.

By the end of next year, frequent flyer members will receive microchipped cards that double as permanent boarding passes, along with luggage tags with chips that ”talk” to ensure bags and owners do not part company.

Members swipe their cards at a kiosk, which will replace check-in desks, put their luggage on a conveyor belt that also weighs it, then pass through security to the departure lounge.

Plans are also afoot to speed up the security process but Qantas’s chief executive, Alan Joyce, was unable to give any more details yesterday.

Despite the service being available only to holders of at least a silver frequent flyer card – representing about 40 per cent of people who travel with Qantas daily – the airline says taking those travellers out of the system will dramatically reduce check-in times for others.

Qantas calls the project the Airport of the Future. Trials will begin in Perth by the middle of next year and in Sydney by year’s end. The smaller rival, Air New Zealand, launched a similar service a year ago but Mr Joyce said the initiative was proof Qantas was ”at the aviation forefront”.

Asked what it meant for the 2500 employees manning check-in desks, he spoke of the ”redeployment of staff to enable them to focus less on process and more on customer care”.

The Australian Services Union’s assistant national secretary, Linda White, said the move from man to machine inevitably would cut jobs: ”This is a major technological change. Of course it’s going to have a significant impact on people’s livelihoods.”

In a rare spot of good news for the Boeing 787, it has been revealed lessor GE Commercial Aviation Services is considering a firm order for as many as 30 aircraft.

“We expect some delivery slots will open to accommodate an order of that size,” GECAS executive vice president for product evaluation and strategy Bill Carpenter told Air Transport Intelligence. “GECAS would also seek to support previously committed airline customer orders through purchase and leaseback financing. Where there is customer demand, we want to be part of it.”

Carpenter added that the lessor would be looking to take delivery of the aircraft in three to five years after placing its order, and would prefer to complete initial deliveries by 2018. Tellingly, he also noted that the company was “more optimistic” about the 787-9, but is not ruling out an order for the smaller -8.

“The -8 still promises to deliver performance and economics not currently available in any variant within its payload category. If the 787 meets its marketed specifications with respect to passenger comfort, range, weight and fuel consumption, and is priced well, then it promises to be a great aircraft as well as a great investment,” he said.

Air France became the first European airline to take delivery of an Airbus A380 when the French carrier’s first example was handed over in a ceremony at Hamburg on October 30.

The Engine Alliance GP7200 powered aircraft, configured to seat 538 passengers in a nine first class, 80 business class and 449 economy class arrangement, is the first of 12 Air France has on order. It will enter service on November 23 on the Paris-New York route. Three of Air France’s 12 A380s will be delivered through to the northern spring of 2010, the airline said, closely followed by a fourth. Paris-Johannesburg flights will launch during the northern winter of 2009-2010.

“Each A380 will enable Air France to save 12 to 15 million euros a year, which, in today’s depressed economic climate, provides the company with the means to withstand the crisis,” said Air France KLM CEO Pierre-Henri Gourgeon.

Air France’s first A380 is the 20th A380 delivered so far by Airbus – 10 are now in service with Singapore Airlines, five with Emirates and four with Qantas operating on 13 routes. To date, says Airbus, these aircraft have accumulated over 75,000 revenue flight hours in over 7900 commercial flights, carrying over 2.5 million passengers.