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1. U.S. and Australia cooperate for alternative aviation fuels
The U.S. Department of Transportation’s (DOT) Federal Aviation Administration (FAA) and Australia’s Department of Resources, Energy and Tourism have reached a Memorandum of Understanding (MOU) to continue research and development of clean, sustainable alternative aviation fuels. U.S. Secretary of Transportation Ray LaHood and Australian Ambassador to the United States Kim Beazley signed the agreement today.
“Air travel is global and we need international partners to develop these innovative new fuels,” Secretary LaHood said. “Our ultimate goal is to work with all of the Asia Pacific nations to achieve a sustainable, independent energy future for aviation, and this is an exciting first step.”
The MOU calls for Australia and the United States to exchange information about policies, programs, projects, research results, and publications, and to conduct joint studies in areas such as fuel sources and environmental impacts. The memorandum also facilitates analysis of fuel source supply chains. The signing nations agree to cover the associated costs.
“The DOT and FAA are committed to making aviation as clean and as energy efficient as possible as part of our NextGen air traffic modernization goals,” said FAA Administrator Randy Babbitt. “This agreement and others with our international partners will enable the FAA to better share and exchange technologies and research to attain these goals not only for U.S. aviation but air travel on the global level.”
In U.S. aviation, public, academic and private sector partnerships play a key role in developing alternative fuels through the Commercial Aviation Alternative Fuel Initiative (CAAFI) and Continuous Low Energy Emissions and Noise (CLEEN) programs.
2. Boeing bullish on costs as it pushes the 737 to the MAX
BOEING claims its newly announced Boeing 737 MAX will offer a 7 per cent improvement in cash-operating cost per seat over the rival Airbus A320 neo.
The US manufacturer is also not letting the fact that it lagged Airbus's decision to re-engine the A320 stop it from targeting more than half the hard-fought narrow-body market.
Boeing has yet to reveal the five or six customers who have already committed to buying almost 500 of the new aircraft but says they are leading airlines that are "geographically diverse".
However, they include neither Virgin Australia nor Qantas.
Qantas group executive operations Lyell Strambi, in Seattle to accept the airline's newest 737-800, said the airline had yet to make a decision on a new narrow-body plane.
It currently has 58 Boeing 737s and will have 68 in total when the current round of deliveries finish in 2016.
The new narrow body will probably team with A330s, which are likely to eventually be replaced by Boeing 787-8s as Qantas moves to simplify its domestic fleet to two aircraft types.
The logical point to make a decision and warns a rollover of the 737 fleet is not a foregone conclusion.
"We'll start thinking about it pretty soon because it's not natural that you just change to MAX," he said.
"It has to have a big advantage because you've got familiarity with type and you've got a huge transition cost when you go from one manufacturer to another. It's a very, very expensive proposition for an airline.
"But we'll look at both, so we haven't made that call at this stage."
Meanwhile, Boeing's later decision on the MAX has given Airbus a head start, allowing the European manufacturer to get about 1000 orders under its belt for the neo.
Boeing opted for putting a new engine on the 737 over redesigning a new aircraft after pressure from customers and because of the problems presented by building a new plane in terms of production.
"We're taking our time because this is a huge market," Boeing Commercial Airplanes vice-president marketing Randy Tinseth said yesterday.
"It's about a 23,000-airplane market over the next 20 years so we wanted to make sure that we took our time to make absolutely the right decision."
Customers seeking near-term efficiency improvements had been expressing a preference for a new engine.
"And then, frankly, even though we saw the technologies really lining up to make the improvements in the aircraft in that 2019-20 time frame, the things that really weren't coming together were on the production system," he said.
He was unable to say how far back this had pushed the arrival of an all-new plane except to note it had "moved to the right".
"We will replace the 737 at some point, and it's been flying for a long time, but frankly now that we have the MAX we've raised the bar," he said.
"So that next generation of aircraft, whenever it might come, will even have to be better than the ones we were looking at.
"And this is going to be an airplane that's going to be in service for a long time."
The MAX commitments are new orders that are not eating away at the 737NG backlog of about 2000 aircraft, and the 2017 entry into service for the re-engined plane means this is likely to remain the case.
Executive say they will continue to seek to improve the 737NG in areas such as aerodynamics and, through the use of new materials, weight.
Recent order of 100 Next Generation 737-900ERs to Delta Air Lines as evidence of continuing demand.
Boeing and engine-maker CFM have yet to finalise the design for the more efficient LEAP-1B engine and Mr Tinseth said the partners were looking at either a 66 or 68-inch fan diameter.
Changes to the aircraft needed to support the heavier engines meant it was highly unlikely they could be retro-fitted to older aircraft.
But he said it was not just a case of increased engine efficiency but of efficiency in the aircraft as whole.
"It's a function of the efficiency of the engine, the aerodynamics of the aircraft and the weight of the airplane," he said.
"So we're really looking for that optimal mix of those three."
3. TWU announces four hour work stoppages on Sept 20
The Transport Workers Union (TWU) has announced a series of four hour work stoppages for its Qantas workers on September 20, with up to 3800 union-aligned baggage handlers, ground staff, catering, freight and other transport employees across Australia taking action over a five per cent pay increase and various other job security concerns.
Qantas has condemned the strike action, and is “currently developing contingency plans to minimise disruptions” to passengers travelling on September 20, according to spokeswoman Olivia Wirth.
“This is a coordinated campaign by three unions, with the pilots’ union, the licensed aircraft maintenance engineers’ union and the TWU all taking some form of industrial action over this period,” Wirth said.
The TWU is demanding from Qantas a five per cent per annum pay increase for its next enterprise bargaining agreements (EBAs), an additional one per cent compulsory employer superannuation contribution for every year of their EBAs, a requirement that all casual staff are paid the same rates as permanent Qantas staff and a requirement for site rates.
“The so-called ‘new spirit’ that Qantas has spent millions on advertising in the last three weeks hasn’t been on show during months of negotiations with Qantas management. TWU members in ground crews, presentation staff and catering have been seeking certainty from management about new terms of pay, conditions and job security since the old enterprise bargaining agreement expired months ago,” TWU lead negotiator Scott Connolly said.
“Qantas has become the airline it is and has weathered international financial storms and other hard times because of its staff, who have put up with enough,” he added.
However, Wirth asserted Qantas’s TWU employees “are already the highest paid in the Australian aviation industry”, with their Virgin counterparts paid 12 per cent lower wages. “The TWU is demanding significant pay increases and new restrictions on labour flexibility which would make Qantas less competitive and prevent us from responding to volatility in the aviation industry…We are willing to offer reasonable pay increases but the latest demands from the union are unreasonable,” Wirth argued.
The four hour work stoppages are expected to be rolled out across airports along the eastern states from 7am, with Cairns (9am) and Canberra (3pm) to follow, while action in WA will begin at 5am WST.
Aviation NEWS By
Neha Jain
Aviation NEWS Reporter
1. U.S. and Australia cooperate for alternative aviation fuels
The U.S. Department of Transportation’s (DOT) Federal Aviation Administration (FAA) and Australia’s Department of Resources, Energy and Tourism have reached a Memorandum of Understanding (MOU) to continue research and development of clean, sustainable alternative aviation fuels. U.S. Secretary of Transportation Ray LaHood and Australian Ambassador to the United States Kim Beazley signed the agreement today.
“Air travel is global and we need international partners to develop these innovative new fuels,” Secretary LaHood said. “Our ultimate goal is to work with all of the Asia Pacific nations to achieve a sustainable, independent energy future for aviation, and this is an exciting first step.”
The MOU calls for Australia and the United States to exchange information about policies, programs, projects, research results, and publications, and to conduct joint studies in areas such as fuel sources and environmental impacts. The memorandum also facilitates analysis of fuel source supply chains. The signing nations agree to cover the associated costs.
“The DOT and FAA are committed to making aviation as clean and as energy efficient as possible as part of our NextGen air traffic modernization goals,” said FAA Administrator Randy Babbitt. “This agreement and others with our international partners will enable the FAA to better share and exchange technologies and research to attain these goals not only for U.S. aviation but air travel on the global level.”
In U.S. aviation, public, academic and private sector partnerships play a key role in developing alternative fuels through the Commercial Aviation Alternative Fuel Initiative (CAAFI) and Continuous Low Energy Emissions and Noise (CLEEN) programs.
2. Boeing bullish on costs as it pushes the 737 to the MAX
BOEING claims its newly announced Boeing 737 MAX will offer a 7 per cent improvement in cash-operating cost per seat over the rival Airbus A320 neo.
The US manufacturer is also not letting the fact that it lagged Airbus's decision to re-engine the A320 stop it from targeting more than half the hard-fought narrow-body market.
Boeing has yet to reveal the five or six customers who have already committed to buying almost 500 of the new aircraft but says they are leading airlines that are "geographically diverse".
However, they include neither Virgin Australia nor Qantas.
Qantas group executive operations Lyell Strambi, in Seattle to accept the airline's newest 737-800, said the airline had yet to make a decision on a new narrow-body plane.
It currently has 58 Boeing 737s and will have 68 in total when the current round of deliveries finish in 2016.
The new narrow body will probably team with A330s, which are likely to eventually be replaced by Boeing 787-8s as Qantas moves to simplify its domestic fleet to two aircraft types.
The logical point to make a decision and warns a rollover of the 737 fleet is not a foregone conclusion.
"We'll start thinking about it pretty soon because it's not natural that you just change to MAX," he said.
"It has to have a big advantage because you've got familiarity with type and you've got a huge transition cost when you go from one manufacturer to another. It's a very, very expensive proposition for an airline.
"But we'll look at both, so we haven't made that call at this stage."
Meanwhile, Boeing's later decision on the MAX has given Airbus a head start, allowing the European manufacturer to get about 1000 orders under its belt for the neo.
Boeing opted for putting a new engine on the 737 over redesigning a new aircraft after pressure from customers and because of the problems presented by building a new plane in terms of production.
"We're taking our time because this is a huge market," Boeing Commercial Airplanes vice-president marketing Randy Tinseth said yesterday.
"It's about a 23,000-airplane market over the next 20 years so we wanted to make sure that we took our time to make absolutely the right decision."
Customers seeking near-term efficiency improvements had been expressing a preference for a new engine.
"And then, frankly, even though we saw the technologies really lining up to make the improvements in the aircraft in that 2019-20 time frame, the things that really weren't coming together were on the production system," he said.
He was unable to say how far back this had pushed the arrival of an all-new plane except to note it had "moved to the right".
"We will replace the 737 at some point, and it's been flying for a long time, but frankly now that we have the MAX we've raised the bar," he said.
"So that next generation of aircraft, whenever it might come, will even have to be better than the ones we were looking at.
"And this is going to be an airplane that's going to be in service for a long time."
The MAX commitments are new orders that are not eating away at the 737NG backlog of about 2000 aircraft, and the 2017 entry into service for the re-engined plane means this is likely to remain the case.
Executive say they will continue to seek to improve the 737NG in areas such as aerodynamics and, through the use of new materials, weight.
Recent order of 100 Next Generation 737-900ERs to Delta Air Lines as evidence of continuing demand.
Boeing and engine-maker CFM have yet to finalise the design for the more efficient LEAP-1B engine and Mr Tinseth said the partners were looking at either a 66 or 68-inch fan diameter.
Changes to the aircraft needed to support the heavier engines meant it was highly unlikely they could be retro-fitted to older aircraft.
But he said it was not just a case of increased engine efficiency but of efficiency in the aircraft as whole.
"It's a function of the efficiency of the engine, the aerodynamics of the aircraft and the weight of the airplane," he said.
"So we're really looking for that optimal mix of those three."
3. TWU announces four hour work stoppages on Sept 20
The Transport Workers Union (TWU) has announced a series of four hour work stoppages for its Qantas workers on September 20, with up to 3800 union-aligned baggage handlers, ground staff, catering, freight and other transport employees across Australia taking action over a five per cent pay increase and various other job security concerns.
Qantas has condemned the strike action, and is “currently developing contingency plans to minimise disruptions” to passengers travelling on September 20, according to spokeswoman Olivia Wirth.
“This is a coordinated campaign by three unions, with the pilots’ union, the licensed aircraft maintenance engineers’ union and the TWU all taking some form of industrial action over this period,” Wirth said.
The TWU is demanding from Qantas a five per cent per annum pay increase for its next enterprise bargaining agreements (EBAs), an additional one per cent compulsory employer superannuation contribution for every year of their EBAs, a requirement that all casual staff are paid the same rates as permanent Qantas staff and a requirement for site rates.
“The so-called ‘new spirit’ that Qantas has spent millions on advertising in the last three weeks hasn’t been on show during months of negotiations with Qantas management. TWU members in ground crews, presentation staff and catering have been seeking certainty from management about new terms of pay, conditions and job security since the old enterprise bargaining agreement expired months ago,” TWU lead negotiator Scott Connolly said.
“Qantas has become the airline it is and has weathered international financial storms and other hard times because of its staff, who have put up with enough,” he added.
However, Wirth asserted Qantas’s TWU employees “are already the highest paid in the Australian aviation industry”, with their Virgin counterparts paid 12 per cent lower wages. “The TWU is demanding significant pay increases and new restrictions on labour flexibility which would make Qantas less competitive and prevent us from responding to volatility in the aviation industry…We are willing to offer reasonable pay increases but the latest demands from the union are unreasonable,” Wirth argued.
The four hour work stoppages are expected to be rolled out across airports along the eastern states from 7am, with Cairns (9am) and Canberra (3pm) to follow, while action in WA will begin at 5am WST.
Aviation NEWS By
Neha Jain
Aviation NEWS Reporter
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