Sunday, November 21, 2010

Cathay Pacific announces year-end salary increment, 13th month payment and further profit share




Cathay Pacific Airways today announced the year-end salary increment for its Hong Kong-based staff together with details of a discretionary 13th month payment and a further profit share in light of the company’s continued strong performance this year.

The airline announced that eligible Hong Kong staff will receive an average salary increase in the range of 4 to 4.5%.  The company also confirmed that all eligible staff in Hong Kong will receive a discretionary 13th month payment together with their December salary payment. Barring adverse circumstances, staff can expect to receive a profit share of at least another three weeks’ salary after Cathay Pacific announces its full-year results next March, in addition to the two weeks paid in advance in August this year after the airline posted a record interim profit.

Cathay Pacific has seen a remarkable turnaround in its business in 2010, and on Monday issued a trading statement to the Hong Kong Stock Exchange advising its expectation that its full-year profit for 2010 will not be less than HK$12.5 billion following consistently strong demand on both the passenger and cargo sides of its business. The airline’s result will also be boosted by a significant contribution from its strategic partnership with Air China and the profits resulting from the sale of shareholdings in HAECO and Hactl earlier this year.

Cathay Pacific Chief Executive Tony Tyler said: “The nature of the airline industry has always been hugely volatile and our aim is to survive when times are bad and thrive when times are good.

“We have to take a similar approach to rewarding the team. When times are bad, our policy is to work to keep the team together – as happened during the recent downturn. When times are good, we will reward staff by sharing the gains.

“There is no question we are in good times now and we are delighted to reward our staff for a great effort in supporting us through the recent downturn and helping us to achieve what we expect will be a record profit in 2010. I believe this is a fair and reasonable arrangement and one that properly reflects the company’s gratitude for a great job done– and that also strikes the right balance between rewarding our talented team and acknowledging the unwavering support we have received from our shareholders through thick and thin over the last decade.”

Mr Tyler added that through the combination of profit share, discretionary 13th month payment and salary increments, staff will be significantly better off than they were last year. “This is just as it should be when our business is so strong,” he said, adding that the Local Staff Union has agreed to the package.




Singapore Airlines will be carrying out ongoing precautionary inspections

Singapore Airlines will be carrying out ongoing precautionary inspections on its Airbus A380 fleet, in full compliance with a directive from the European Aviation Safety Agency (EASA) and guidance from engine manufacturer Rolls-Royce.

These inspections are not expected to affect flight timings. Schedules are due to remain as normal.

In order to maintain a normal schedule and minimise disruptions to our customers, we will be deploying Boeing 747-400s and Boeing 777s, where necessary, in place of A380s on certain flights to/ from Sydney and Melbourne.




Singapore Airlines-Notice for US bound customers

The Transportation Security Administration has announced additional guidelines for travellers heading to the United States of America. 

With immediate effect, printer or toner cartridges weighing 16 ounces (453 grams) or more will not be permitted on both carry-on or checked baggage.




Boeing, SpiceJet Finalize Order for 30 Next-Generation 737-800s
 Boeing, SpiceJet Finalize Order for 30 Next-Generation 737-800s

 Boeing  and Indian budget carrier, SpiceJet announced an order for 30 Boeing Next-Generation 737-800 with winglets in the presence of the US president Obama late last week.
Valued at about US$ 2.3 billion at list prices, SpiceJet had declared its intent to purchase Boeing’s Next-Generation 737-800 in July this year. This order was previously attributed to an unidentified customer on Boeing’s orders and deliveries website. SpiceJet currently operates a fleet of 24 Boeing 737-800s and 737-900ERs.
“SpiceJet is already operating a sizeable fleet of 737-800s and 737-900ERs and the new order underscores the airline’s confidence in the airplane,” said Dinesh Keskar, vice president of Boeing International and president of Boeing India.
“We are extremely satisfied with the Next-Generation 737 — an airplane that is reliable, allows for greater efficiency in maintenance and supports the business plan for low-cost carriers,” said Neil Mills, Chief Executive Officer, SpiceJet . “The aviation sector in India is recovering and business and leisure travel is on the rise. With the addition of the new 737s, it will help us expand SpiceJet’s domestic network as well as support the launch of our international destinations.”
Boeing will deliver SpiceJet’s Next-Generation 737-800s with the all-new 737 Boeing Sky Interior. The interior promises to redefine the travel experience for SpiceJet passengers, who will enjoy the modern, sculpted sidewalls and window reveals and larger stow bins that are standard with the new interior.
The Boeing Sky Interior is the latest in a series of improvements to the Next-Generation 737 family. The next to come is a package of performance improvements that will reduce fuel consumption and carbon emissions by 2 percent — making the airplane a full 7 percent more efficient than the first Next-Generation 737s delivered. Performance improvements to the airframe and engine are beginning certification test soon, and will be fully in service by early 2012.
To-date more than 125 customers have placed orders for more than 5,600 Next-Generation 737s. Unfilled orders for the Next-Generation 737 exceed 2,100 airplanes valued at more than $160 billion at average list prices.


Boeing Delivers its 900th 777 airplane to Ethiopian Airlines.

Boeing delivers its 900th 777 Airplane to Ethiopian Airlines

 Boeing (NYSE: BA) delivered its 900th 777 airplane today to Ethiopian Airlines. The airplane is the ultra-long-range Boeing 777-200LR (long range) Worldliner, and is the first of five 777s the airline ordered in 2009.
"With the delivery of its first 777-200LR, Ethiopian is the first airline in Africa to operate the world's most technologically advanced and longest-range airplane," said Ethiopian Airlines Chief Executive Officer Ato Girma Wake. "This further reaffirms our commitment to be the leader of aviation in Africa."
Based in Addis Ababa, Ethiopia, the carrier is investing in additional airplanes to broaden its network. The carrier will use the 777-200LRs on new, nonstop service from Washington, D.C., to Addis Ababa and new long-haul, nonstop routes like Beijing.
"The 777-200LR is the only airplane that provides the range and efficiency that Ethiopian needs to service its long-haul routes," said Larry Loftis, vice president and general manager, 777 program. "And it's our pleasure to deliver this airplane, our 900th, to a first-time 777 customer."
The 777 program reached the 900-airplane milestone faster than any other twin-aisle airplane in history. The 777's performance and passenger-preferred interior have made it the world's most popular twin-engine long-haul commercial jetliner, with 1,165 orders from 61 customers.
"Today we celebrate a very important historical milestone with our longstanding customer Ethiopian Airlines," said Marlin Dailey, vice president of Sales & Marketing, Boeing Commercial Airplanes. "Ethiopian's order, along with this 900th 777 delivery, confirms both the leadership role and market preference for the 777 – the flagship of the world's premiere airlines."
The 777-200LR carries more passengers and more revenue cargo farther than any other jetliner, and is capable of connecting virtually any two cities in the world nonstop. It also can carry a full cargo load on routes where other airplanes are payload limited – giving airlines the ability to carry the same number of passengers farther and with additional revenue-generating cargo.
Provisions for up to three optional fuel tanks have been added in the aft cargo area of the 777-200LR to be able to fly a range of 9,395 nautical miles (17,395 km) with full passenger payload (301 passengers).
"As one of the premier airlines in Africa and around the world, Ethiopian has long used Boeing airplanes as a tool for achieving our business goals," Wake said. "The strategic long-range feature of the 777-200LR will again help Ethiopian expand our network and is a perfect complement to the 787s that are on order.
"The Boeing 777 will help us bring our business to the next level," said Wake. "Boeing has been an important and valued partner to Ethiopian for many, many years. This order reinforces the deep ties between our two companies."
Boeing's partnership with Ethiopian Airlines dates back some 60 years. Today, it operates an all-Boeing fleet of 737, 757, and 767 airplanes in passenger service and 757, MD11 and 747 in cargo operations.




Boeing Airplane Health Managemnent Activated on Air china on 737 Fleet.


Boeing (NYSE: BA) and Air China said today that the initial release of Boeing's Airplane Health Management (AHM) system is now active on 40 airplanes in the airline's Next-Generation 737 fleet, providing information on the condition of airplanes during flight operations.
"We are quite excited to begin seeing the benefits of Airplane Health Management," said Zhong Dechao, deputy chief engineer of Air China. "AHM will help us improve our maintenance efficiency and will benefit our passengers with an even higher level of on-time performance."
Airplane Health Management allows Air China to gather and evaluate critical real-time in-flight flying condition data, relaying airplane information to ground controllers. This visibility allows the airline to better plan and perform repairs, minimizing scheduling impacts.
AHM also supports long-term fleet reliability by helping airlines identify and respond to faults proactively. Fleet-wide history and knowledge from multiple operators is available to help guide repair decisions on same-model airplanes, improving reliability and efficiency.
Air China last year contracted with Boeing for AHM on a total of 117 Air China 737s that are in service and on order. Air China is Boeing's first Chinese customer for AHM.
Airplane Health Management is a key component in Boeing's larger vision of Lifecycle Solutions -- improving airline efficiency with digital productivity tools, product and industry expertise and the power of aviation's leading integrated supply chain, supporting Boeing airplanes from order placement through retirement.



Wednesday, November 10, 2010

PHILIPPINES AVIATION NEWS

PHILIPPINES AVIATION NEWS

                           



Civil aviation shakeup may endanger PH safety upgrade

The Department of Transportation and Communication (DoTC) bypassed approved civil service procedures and appointed seven people to career positions at the Civil Aviation Authority of the Philippines (Caap), it was learned Tuesday.

According to the minutes of the November 2 board meeting, a copy of which was obtained by INQUIRER.net, DoTC appointed Ramon S. Gutierrez as Deputy Director General for Administration, Napoleon L. Garcia as Deputy Director General for Operations, Wilfredo S. Borja as Assistant Director General II (Air Traffic Services),

Andrew B. Basallote as Assistant Director General II (Air Navigation Service), Edgardo L. Costes as Assistant Director General II (Aerodrome Development and Management Service), Wilson V. Mirabona as Assistant Director General I (Aerodrome Development and Management Service), and Andres B. Laurilla as Assistant Director General I (Civil Aviation Training Center).

The Caap Charter, or Republic Act 9497, requires appointees to regular “career positions” to undergo the selection process board, the appointment by the Caap director general and the final approval/confirmation of the board.

In the same board meeting, Caap Director General Alfonso Cusi, who is the appointing authority according to the law, objected to the appointment of the seven officials.

The appointments, according to INQUIRER.net sources, may jeopardize the ongoing review of the Philippine aviation system which has been classified as unsafe by international bodies such as the United States Federal Aviation Authority and the European Union, which banned Philippine carriers from operating in the bloc due to “serious safety deficiencies” in their regulation.

Earlier this year, EU officials and the president of the International Civil Aviation Organization (Icao) Roberto Gonzalez personally visited the country to check on the progress that Caap has made to address “significant safety concerns.”

EU officials and Gonzalez stressed that Caap must be professionalized, and headed and staffed by technical professionals and not political appointees. The two organizations highlighted the need for a consistent application of laws and the strengthening of the Caap’s legal framework.

FAA’s upgrade of Philippine aviation system from category 2 to category 1 is anchored on the ongoing safety audits by EU and Icao.





Sunday, November 7, 2010

PHILIPPINES AVIATION NEWS

                                   PHILIPPINES AVIATION NEWS


Palace vows to deal with PAL labor woes; airline needs P2.5B

MALACAÑANG IS looking for short- and long-term solutions on Philippine Airlines’ (PAL) string of labor woes, a Palace official said, with President Benigno S. C. Aquino III reviewing the Labor department’s recent affirmation of the carrier’s plan to outsource three units which would result in the layoff of some 2,600 workers.

Ricky A. Carandang, Presidential Communications Development and Strategic Planning secretary, said in an interview the Palace has a keen interest on PAL’s labor issues as these would have an impact on the public.

“This could lead to some kind of policy with regard to liberalization,” Mr. Carandang said.

Economic managers last month submitted to the President a memorandum recommending the full implementation of the civil aviation liberalization policy which could ease up the process for qualified foreign airlines wanting to expand operations in the Philippines.

“Therefore we’re not keeping our hands off. We’re reviewing the case very carefully and as the President said, once the case is reviewed then he will decide what the best intervention will be,” said Mr. Carandang.

Conciliation meetings between the management and the Philippine Airlines Employees’ Association (PALEA) will start today after the union filed a notice of strike with the National Conciliation and Mediation Board (NCMB) under the Labor department last Friday.

In a statement on Saturday, PALEA said it filed the notice of strike due to the “widespread and persistent attempts by management to convince union members, which by law is individual bargaining and constitute interference in the right to self-organization.”

“We cited unfair labor practice as ground. The specifics of the unfair labor practice are individual bargaining with union members which is tantamount to interference with, restraint, and coercion of employees in the exercise of their right to self-organization, and mass termination of union officers amounting to union busting,” PALEA President Gerardo F. Rivera said.

After filing the notice of strike, the next step in the process is for PALEA to conduct a strike vote among its members.

PAL management said on Saturday the filing of notice of strike was “just a union strategy to delay implementation of PAL’s spin-off program.”

“There is no reason for our passengers to be alarmed. A strike is not likely to happen anytime soon as the DoLE (Department of Labor and Employment) views PAL’s continued operations as imbued with national interest,” PAL spokeswoman Cielo C. Villaluna said.

“We categorically deny ‘directly negotiating’ with union members, as claimed by PALEA, inasmuch as management regularly conducts consultative talks only with PALEA officials and not with the members,” she added.

PAL, meanwhile, will borrow an additional P2.5 billion to fund working capital next year, on top of the P2.5 billion needed to compensate workers to be affected by layoffs.

Jose Gabriel D. Olives, PAL chief financial officer, told reporters the airline was in talks with government-run Land Bank of the Philippines and Development Bank of the Philippines and some foreign creditors to borrow the said amount. “We will have a combination of restructuring and cutting down of fuel expenses for next year,” he added.

Mr. Olives said potential investors have asked the airline to resolve labor issues before discussions about infusing fresh funds into the airline resume. -- Ana Mae G. Roa and Aura Marie P. Dagcutan

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Birds disable CebuPac plane, delay flights

MANILA, Philippines—Budget carrier Cebu Pacific Air Sunday announced delays in its trips on Sunday and their corresponding return flights after birds caused mechanical failure in one of its aircraft.




Philippine Air Says Profit Hinges on ‘Survival Plan,’ Job Cuts


 Philippine Airlines Inc. said attempts to make a first profit in three years hinge on a “survival plan” including 2,600 job cuts that have drawn opposition from unions.

“We will have a small profit this year only if we can outsource our ground-handling, catering and call-center services, and get rid of 2,600 employees,” President Jaime Bautista said in a phone interview late yesterday. “I am hopeful that I may be able to do this before the end of December.”

Bautista needs to overcome protests from ground-handling workers to complete outsourcing plans, while also tackling a separate labor row with cabin crew. The carrier, Asia’s oldest, has posted losses of $312 million over the past two fiscal years because of wrong-way bets on fuel prices, the global recession and rising competition from Cebu Air Inc.

Bautista declined to say how much savings the survival plan will generate. The carrier’s net losses shrank to $14.3 million in the year ended March, from $297.8 million a year earlier. Bautista said in August that the carrier may miss its profit target this year after 25 pilots quit for jobs elsewhere.

Philippine Air’s ground-crew union said this week it will appeal a decision by the labor department allowing the carrier to terminate employees and outsource their jobs to service providers that would hire them. The government has intervened in the cabin-crew dispute, which centers on pay and benefits, to prevent a strike.

Air Philippines

Operations at Philippine Air’s low-fare affiliate, Air Philippines, are “starting to gain ground,” with around 80 percent of total available seats filled, Bautista said. The budget carrier, which operates four Airbus SAS A320s, will take delivery of two more by year-end. Next year, six more planes will join the fleet followed by another six in 2012, he said.

Philippine Air’s parent PAL Holdings Inc. gained 1 percent to 4.95 pesos at 10:23 a.m. in Manila trading. The company has jumped 75 percent this year.

Philippine Air’s long-haul plans have been disrupted by U.S. Federal Aviation Administration restrictions that prevented it from adding flights and a European Union blacklisting of all Philippine carriers. The government has said it will take steps to improve standards.

The airline has postponed delivery of four twin-aisle Boeing Co. 777-300ERs to 2012 and 2013 because it would “lose money” operating those planes on regional routes, Bautista said. The carrier has a fleet of 39 planes currently, he said.

Philippine Air, along with its discount unit, controls about 47 percent of the domestic market, Bautista said. Cebu Air, which has a fleet of 29 jets, has said its share of the domestic market is almost 50 percent.

The EU this year banned all airlines based in the Philippines from flying in the bloc, citing “serious safety deficiencies” in the regulation of carriers. The U.S. Federal Aviation Administration in 2008 lowered the Southeast Asian nation’s aviation safety rating to Category 2 from Category 1 “due to serious concerns” about local regulation of airlines.