Like millions of other men, women and children who each day pass through the dizzying maze called the airport passenger screening system, Jim Adams, an executive at a natural gas company in Dallas,has gotten the drill down pat: taking off his shoes, stripping himself of jacket, belt, watch, cell phone and loose change, making sure his 3.4-ounce tubes of toothpaste and shaving gel are safely sealed in a quart-size plastic bag, unpacking his laptop, discarding that half-finished bottle of water all while glancing nervously at the clock, wondering if he is going to miss his flight.
But several weeks ago, in the USA a new step was added to that routine:trying to prove to suddenly skeptical security agents that he actually was the person his boarding pass and photo ID said he was.
A rule that is being phased in this year requires that the names on IDs and tickets match perfectly; it's not permissible to have an ID that reads "John Smith," your legal name, and a ticket as "Jack Smith," the name you use in everyday life.
Adams,63, says he has routinely had to wait 30 minutes or more for a Transportation Security Administration official to check his ID and enter his name in a logbook. It's happened more than a dozen times, and he has never been told exactly why he is being singled out.
"In the early days it was anything sharp or pointed," he said."Now it's gotten really personal. It's me. It's not my fingernail clippers or pen knife."
Adams said, however, that he was able to avoid additional security screening and subsequent delays on two flights this month for which he used his full name, James L. Adams Jr. He said he still hadn't received a response from the Transportation Security Administration about his problems on earlier flights.
Even for people who pass through security with less difficulty than Adams, the airport security system has made flying increasingly miserable in the eight years since 9/11. Many of the measures instituted the last few years, like the limitations on liquids and the requirement that you take off your shoes, were almost knee-jerk reactions to specific scares and were left in place as a matter of course.
As rule upon rule has been added, passengers have learned to cope with the long lines, bag checks, physical pat-downs and carry-on restrictions that border on the absurd. But now there is a fresh opportunity for change.This month, the White House said that President Barack Obama planned to nominate Erroll Southers, a former FBI special agent, to head up the Transportation Security Administration, which has been without a permanent head for eight months.
Southers, who is now the assistant chief for Homeland Security at the agency that operates Los Angeles International and several other airports in that region, will, if approved, face the formidable challenge of balancing the yin and yang of airport security - passenger convenience and safety.
Of course, if we look back at the state of security before 9/11, it's clear that we have made progress. People without a ticket can no longer waltz through the airport and up to the gate. Technology, including explosivedetection devices, has gotten better and is more consistently applied to checked and carry-on bags alike. Passengers are more consistently screened by a more stable security work force with less employment turnover. And at times, even the lines seem to be moving a hair faster.
A case could also be made that because there have been no successful attacks against a US commercial flight since 9/11, the system is indeed working. But inconsistencies, contradictory rules and flat out screening failures continue to provoke skepticism among passengers and security experts alike.
"My wife was recently shocked to discover that she had accidentally taken a large pair of scissors in her knitting bag on a recent trip, and they were not discovered in either the outgoing or returning trips," said Walt Ciciora, an electrical engineer from Southport, Conn."That concerned us."
Echoing the opinions of many security experts interviewed, Andrew Thomas, editor in chief of the Journal of Transportation Security , said that since 9/11 two things have made aviation safer: reinforced cockpit doors and the conviction of passengers to bring down terrorists, as evidenced by the action taken on United Flight 93."Any substantive measures put in place by TSA since 9/11 are effectively window dressing and have done little to reduce the overall risk to the system," he said in an email message.
"I think we do a lot of things that are foolish and silly," he said in a separate telephone conservation,"and there doesn't seem to be a mechanism in place to pull back and evaluate what's working and what's not."
The Transportation Security Administration disagrees."We are constantly looking at the risks that we see and the procedures we have in place and ensuring the resources we have available to us," said the acting administrator, Gale Rossides."The dollars we are investing, the people we're employing, are focused on the highest priorities."
And there are multiple layers of security in place so that if one area fails and, say, someone sneaks a knife onboard a plane, there are also locked cockpit doors to thwart hijackers.
Each week, as evidence that it is getting the job done, the agency posts on its web site (www.tsa.gov) a tally of passenger arrests and banned items,including firearms, found at checkpoints. For the week beginning Sept 7,for example,11 passengers were arrested "after investigations of suspicious behavior or fraudulent travel documents,"40 firearms were found at checkpoints, six "artfully concealed prohibited items" were discovered,and there were 30 incidents that involved a "checkpoint closure, terminal evacuation or sterile area breach."
"It would be terrific," Rossides said, if passengers could one day walk through a checkpoint without having to open their bags or take off their shoes and jackets. But she made it clear that those wishes were hers and not necessarily on the government's agenda.
"That's my vision," she said,"not TSA's or DHS' vision, but my vision - where the industry can create the kind of technology where it is much easier on the traveller and still provides TSA with the detection capability.The innovation in the labs and the industry will get us there."
Removing any of the security measures, even the most criticised and ineffective, would be a risky political decision for the Obama administration,opening up the White House to second-guessing. Undoing a long-established rule will inevitably provoke skepticism about the reasoning behind the decision. Therefore, if any of the procedures are to be changed, they must be proved to be ineffective or replaced and improved - not merely eliminated.
All this takes time and testing, whether it is to demonstrate what little gains in safety come from collecting lip gloss and moisturisers at checkpoints or to develop technologies that make screening safer and more efficient.That means passengers are likely to be stuck with the current airport screening process for several years.
If the increasingly cumbersome screening process has proved anything,however, it's that travellers are a highly adaptable species. And when the facts show that the benefits of a particular security method outweigh the privacy issues, many are willing accept it.
"I equate this to E-ZPass for vehicles," said Chris Grniet, a vice president at the Kroll Security Group."Everyone said this will be an invasion of privacy," and certain people still will not do it, he said. But those who embraced the system no longer have to slow down for tolls.
Another factor that cannot be ignored is that passenger numbers and,consequently, security checkpoint volume are down because of the economy.But as a recovery and passenger traffic pick up, the system will be under enormous pressure. Lines will grow, waiting times will rise, and screeners will face added pressure to speed things along.
Wednesday, September 30, 2009
New airline to take off late this month
The first new Thai startup airline in many years, known as Happy Airways, is poised for take-off late this month, defying the aviation industry downturn and a slump in air travel.
The Phuket-based carrier will start scheduled daily flights between the resort island and Hat Yai on Oct 26, followed by daily services between Phuket and Langkawi, and Hat Yai and Langkawi on Oct 29.
The new airline is operated by Happy Air Travellers, a firm owned by an unnamed Phuket-based Thai entrepreneur,who saw the opportunities to tap the short-haul service demand through the Thai southern resort island.
The airline will be the first Thai carrier to really take to the skies in several years,ahead of Krabi Airline, which has been repeatedly delayed with flights originally scheduled to start on Nov 1,2007.
Krabi Air last indicated that it would start flying to Oslo and Munich using a Boeing 767-300ER from the southern province of Krabi in June this year, but according to its website the inaugural flight "is postponed until further notice".
Happy Airways has leased two Saab 340A turboprop aircraft, each capable of carrying 34 passengers, from a Swedish aircraft leasing company to operate on its routes. But the airline will shortly take delivery of the first Swedish-made plane as its capacity is sufficient to accommodate the initial operation.
The second aircraft is expected to arrive in the first quarter of next year.
Its first route, Phuket-Hat Yai, will reestablish the missing direct air link between the city-pair last left by Nok Airlines, the budget carrier affiliated with Thai Airways International.
Nok Air suspended the Hat Yai-Phuket service in November 2007 after finding there were not enough passengers to continue the service which began on June 6 using a 150-seat Boeing 737-400 jet.
But Happy Airways is upbeat about the viability of the route in view that its smaller aircraft offers capacity that matches the actual demand.
"Our studies show that about 40-60 people would fly the route which correspond to our Saab 340A's capacity,"said Phatcharapon Sontipun, sales and marketing manager at Happy Airways.
"Even if we could only carry 20 passengers per flight, we should be able to cover costs and sustain the operation."
Most of the passengers on PhuketHat Yai would be businessmen, medical professionals and academics, with tourists forming the minority, he said.
The service provides a better travel alternative than road which takes about seven hours, he added.
Its two other routes - Phuket and Hat Yai to the Malaysian island of Langkawi - offer tourist traffic potential and foreigners on visa runs.
The one-way all-inclusive fare for Phuket-Hat Yai is 2,300 baht and the flight time is about one hour. The airline will charge 3,500 baht for a one-way trip from Phuket to Langkawi while the Hat Yai-Langkawi fare will cost 2,100 baht.
The Phuket-Langkawi flight is expected to be particularly accommodating for Phuket's foreign residents as they will now be able to do visa runs and get back to Phuket within a few hours.
Happy plans to spread its wings by using Phuket as its hub and is looking to open a new route to Medan, Indonesia.
The Phuket-based carrier will start scheduled daily flights between the resort island and Hat Yai on Oct 26, followed by daily services between Phuket and Langkawi, and Hat Yai and Langkawi on Oct 29.
The new airline is operated by Happy Air Travellers, a firm owned by an unnamed Phuket-based Thai entrepreneur,who saw the opportunities to tap the short-haul service demand through the Thai southern resort island.
The airline will be the first Thai carrier to really take to the skies in several years,ahead of Krabi Airline, which has been repeatedly delayed with flights originally scheduled to start on Nov 1,2007.
Krabi Air last indicated that it would start flying to Oslo and Munich using a Boeing 767-300ER from the southern province of Krabi in June this year, but according to its website the inaugural flight "is postponed until further notice".
Happy Airways has leased two Saab 340A turboprop aircraft, each capable of carrying 34 passengers, from a Swedish aircraft leasing company to operate on its routes. But the airline will shortly take delivery of the first Swedish-made plane as its capacity is sufficient to accommodate the initial operation.
The second aircraft is expected to arrive in the first quarter of next year.
Its first route, Phuket-Hat Yai, will reestablish the missing direct air link between the city-pair last left by Nok Airlines, the budget carrier affiliated with Thai Airways International.
Nok Air suspended the Hat Yai-Phuket service in November 2007 after finding there were not enough passengers to continue the service which began on June 6 using a 150-seat Boeing 737-400 jet.
But Happy Airways is upbeat about the viability of the route in view that its smaller aircraft offers capacity that matches the actual demand.
"Our studies show that about 40-60 people would fly the route which correspond to our Saab 340A's capacity,"said Phatcharapon Sontipun, sales and marketing manager at Happy Airways.
"Even if we could only carry 20 passengers per flight, we should be able to cover costs and sustain the operation."
Most of the passengers on PhuketHat Yai would be businessmen, medical professionals and academics, with tourists forming the minority, he said.
The service provides a better travel alternative than road which takes about seven hours, he added.
Its two other routes - Phuket and Hat Yai to the Malaysian island of Langkawi - offer tourist traffic potential and foreigners on visa runs.
The one-way all-inclusive fare for Phuket-Hat Yai is 2,300 baht and the flight time is about one hour. The airline will charge 3,500 baht for a one-way trip from Phuket to Langkawi while the Hat Yai-Langkawi fare will cost 2,100 baht.
The Phuket-Langkawi flight is expected to be particularly accommodating for Phuket's foreign residents as they will now be able to do visa runs and get back to Phuket within a few hours.
Happy plans to spread its wings by using Phuket as its hub and is looking to open a new route to Medan, Indonesia.
Pilots call off strike
Pilots at the ailing staterun carrier Air India yesterday called off a strike over wage cuts in its fifth day,saying they had won government assurances that their salaries would be protected.
The airline said it was again taking bookings, having suspended reservations earlier in the week, and that its flights would return to normal later in the day.
Air India, which lost a billion dollars in the past financial year, has cancelled about 250 flights since pilots began calling in sick on Saturday to protest against 25-50% cuts in incentive pay.
Senior pilots' representative V.K.Bhalla told reporters in New Delhi the stoppage was "immediately and absolutely called off" and that they would return to work at once.
"We've all been given commitments that there will be no reduction of salaries,"Bhalla said."We're in complete cooperation with the management."
Air India spokesman Jitender Bhargava said international flights were likely to resume in the evening, with domestic flights back to normal by this (Thursday)morning.
The pilots' announcement came after Civil Aviation Minister Praful Patel said no changes would be made to bonus wages without prior consultation with employees.
Air India employs more than 31,000 people and productivity-linked incentives make up the bulk of its payroll expenses.
The airline said it was again taking bookings, having suspended reservations earlier in the week, and that its flights would return to normal later in the day.
Air India, which lost a billion dollars in the past financial year, has cancelled about 250 flights since pilots began calling in sick on Saturday to protest against 25-50% cuts in incentive pay.
Senior pilots' representative V.K.Bhalla told reporters in New Delhi the stoppage was "immediately and absolutely called off" and that they would return to work at once.
"We've all been given commitments that there will be no reduction of salaries,"Bhalla said."We're in complete cooperation with the management."
Air India spokesman Jitender Bhargava said international flights were likely to resume in the evening, with domestic flights back to normal by this (Thursday)morning.
The pilots' announcement came after Civil Aviation Minister Praful Patel said no changes would be made to bonus wages without prior consultation with employees.
Air India employs more than 31,000 people and productivity-linked incentives make up the bulk of its payroll expenses.
AirAsia picks Amadeus for sales through agents
AirAsia has decided that selling tickets exclusively through its own online system,rather than through a global distribution system (GDS) like a full-service airline,may not be enough for future growth.
Asia's largest no-frills carrier group has now embraced the booking system of Amadeus - a leading GDS player headquartered in Madrid - which will enable the airline to reach new customers via travel agencies.
The ground-breaking partnership means Amadeus-subscribing travel agencies, which number more than 102,200,can now book flights on the AirAsia group - including sister airlines Thai AirAsia and Indonesia AirAsia and long-haul affiliate AirAsia X - just as they would for a legacy carrier.
AirAsia is the first low-cost carrier in the Asia-Pacific to get Amadeus's "ticketless access solution"(TAS).
TAS was first launched in Europe with easyJet, one of the region's leading lowcost carriers, and was then implemented with Dutch no-frills carrier Transavia and its sister airline, Transavia France.
David Brett, president for Amadeus Asia-Pacific based in Bangkok, said AirAsia had been successful in growing through online sales. But the airline now recognises it can increase its growth even further by reaching out to new customers through travel agencies.
This is particularly important for AirAsia as it is expanding globally with its long-haul AirAsia X and needs a broader base of international customers, he said.
Mr Brett added that the partnership with AirAsia is also timely as more and more corporate travellers are exploring lower-cost flight options.
"Typically, travellers who book via travel agents represent a higher yield for the airline on each ticket sale, so there is strong potential for AirAsia to increase their revenues," the British executive told the Bangkok Post .Amadeus's booking system now displays AirAsia's real-time flight content - up to the last seat available - alongside that of other airlines when travel agents search for flights. This eliminates the time previously required to search through other screens, helping agents provide superior customer service.
For the first time, AirAsia can now reach out to travellers - including those in the corporate travel sector - who prefer to book through a travel agency.
Founded in 2001, AirAsia flies more than 130 routes to more than 70 domestic and international destinations, with about 400 flights daily from hubs in Malaysia, Thailand and Indonesia.
Mr Brett said Amadeus expected interest from other budget carriers in AsiaPacific and globally.
Asia's largest no-frills carrier group has now embraced the booking system of Amadeus - a leading GDS player headquartered in Madrid - which will enable the airline to reach new customers via travel agencies.
The ground-breaking partnership means Amadeus-subscribing travel agencies, which number more than 102,200,can now book flights on the AirAsia group - including sister airlines Thai AirAsia and Indonesia AirAsia and long-haul affiliate AirAsia X - just as they would for a legacy carrier.
AirAsia is the first low-cost carrier in the Asia-Pacific to get Amadeus's "ticketless access solution"(TAS).
TAS was first launched in Europe with easyJet, one of the region's leading lowcost carriers, and was then implemented with Dutch no-frills carrier Transavia and its sister airline, Transavia France.
David Brett, president for Amadeus Asia-Pacific based in Bangkok, said AirAsia had been successful in growing through online sales. But the airline now recognises it can increase its growth even further by reaching out to new customers through travel agencies.
This is particularly important for AirAsia as it is expanding globally with its long-haul AirAsia X and needs a broader base of international customers, he said.
Mr Brett added that the partnership with AirAsia is also timely as more and more corporate travellers are exploring lower-cost flight options.
"Typically, travellers who book via travel agents represent a higher yield for the airline on each ticket sale, so there is strong potential for AirAsia to increase their revenues," the British executive told the Bangkok Post .Amadeus's booking system now displays AirAsia's real-time flight content - up to the last seat available - alongside that of other airlines when travel agents search for flights. This eliminates the time previously required to search through other screens, helping agents provide superior customer service.
For the first time, AirAsia can now reach out to travellers - including those in the corporate travel sector - who prefer to book through a travel agency.
Founded in 2001, AirAsia flies more than 130 routes to more than 70 domestic and international destinations, with about 400 flights daily from hubs in Malaysia, Thailand and Indonesia.
Mr Brett said Amadeus expected interest from other budget carriers in AsiaPacific and globally.
Air traffic demand improving-IATA
The airline industry is struggling to return to profit despite more signs of a revival in air travel in August,the International Air Transport Association said yesterday.
Passenger demand fell by 1.1% last month on a 12-month comparison,marking an improvement in international air travel compared to the 2.9% fall recorded in July and a steeper drop in previous months, latest data from IATA showed.
Average passenger loads on aircraft also improved by 1.2% to 80.9%, but fares remained about a one-fifth below levels recorded a year earlier and aircraft were being used less as routes were cut,the data showed.
"Demand continues to improve, but profitability remains ever distant," said IATA director general Giovanni Bisignani.
"Fares have stabilised, but at profitless levels. Meanwhile cost pressures are mounting from reduced aircraft utilisation and rising oil prices. The industry is not out of the woods yet," he said.
Demand for air freight freight fell by 9.6% in August, also marking an improvement compared to the 11.3% drop recorded in July, IATA said.
IATA groups 230 airlines that cover 93% of scheduled international air traffic,but it does not include many of the major budget airlines.
Passenger demand fell by 1.1% last month on a 12-month comparison,marking an improvement in international air travel compared to the 2.9% fall recorded in July and a steeper drop in previous months, latest data from IATA showed.
Average passenger loads on aircraft also improved by 1.2% to 80.9%, but fares remained about a one-fifth below levels recorded a year earlier and aircraft were being used less as routes were cut,the data showed.
"Demand continues to improve, but profitability remains ever distant," said IATA director general Giovanni Bisignani.
"Fares have stabilised, but at profitless levels. Meanwhile cost pressures are mounting from reduced aircraft utilisation and rising oil prices. The industry is not out of the woods yet," he said.
Demand for air freight freight fell by 9.6% in August, also marking an improvement compared to the 11.3% drop recorded in July, IATA said.
IATA groups 230 airlines that cover 93% of scheduled international air traffic,but it does not include many of the major budget airlines.
Sunday, September 27, 2009
Minister says JAL won't be liquidated
Japans transport minister said yesterday he will not force the struggling Japan Airlines, Asias biggest airline, into bankruptcy.
We will not crush and liquidate (the airline), Land, Infrastructure and Transport Minister Seiji Maehara said on a TV Asahi talk show.Its just impossible.
A team of government-appointed corporate turnaround experts was set up on Friday to create a restructuring plan for the airline, whose own draft reconstruction plan Mr Maehara called insufficient.
The team will make a recommendation to the transport minister by late October or early November.
Officials from the airline and the transport ministry were not available for comment Sunday.
The airline incurred its biggest-ever quarterly net loss of 99 billion yen ($1 billion) in the three months to June,and has forecast a net loss of 63 billion yen ($701 million) for the current fiscal year to March 2010. JAL was privatised in 1987.
JAL has sought public funds for survival. Its request for taxpayer money came months after it received 60 billion yen ($668 million) in loans from the government-owned Development Bank of Japan in June.
In his meeting Thursday with the transport minister, JAL president Haruka Nishimatsu revealed that the airline is short 450 billion yen ($5 billion) through March 2011, money that is needed for debt repayment, according to media reports. Mr Nishimatsu reportedly told Maehara that JAL was planning to cover part of the payment by selling off its inflight meal catering unit and reviewing company pension plans.
JALs original restructuring scheme also included 6,800 job cuts, or around 14% of its workers.
The airline has reportedly been in talks on financial tie-ups with several top airlines including Delta Air Lines Inc, its rival American Airlines Inc and Air France-KLM.
We will not crush and liquidate (the airline), Land, Infrastructure and Transport Minister Seiji Maehara said on a TV Asahi talk show.Its just impossible.
A team of government-appointed corporate turnaround experts was set up on Friday to create a restructuring plan for the airline, whose own draft reconstruction plan Mr Maehara called insufficient.
The team will make a recommendation to the transport minister by late October or early November.
Officials from the airline and the transport ministry were not available for comment Sunday.
The airline incurred its biggest-ever quarterly net loss of 99 billion yen ($1 billion) in the three months to June,and has forecast a net loss of 63 billion yen ($701 million) for the current fiscal year to March 2010. JAL was privatised in 1987.
JAL has sought public funds for survival. Its request for taxpayer money came months after it received 60 billion yen ($668 million) in loans from the government-owned Development Bank of Japan in June.
In his meeting Thursday with the transport minister, JAL president Haruka Nishimatsu revealed that the airline is short 450 billion yen ($5 billion) through March 2011, money that is needed for debt repayment, according to media reports. Mr Nishimatsu reportedly told Maehara that JAL was planning to cover part of the payment by selling off its inflight meal catering unit and reviewing company pension plans.
JALs original restructuring scheme also included 6,800 job cuts, or around 14% of its workers.
The airline has reportedly been in talks on financial tie-ups with several top airlines including Delta Air Lines Inc, its rival American Airlines Inc and Air France-KLM.
World-class status continues to elude airport
Suvarnabhumi airport is plagued by problems three years after it opened,making a mockery of claims it could soon be one of the world's top 10 airports.
The airport, which opened commercially on Sept 28,2006, ran into problems even before construction began.
Successive governments flip-flopped on where the airport would go before a location was finally agreed upon: a 215,000-rai area in Bang Phli district of Samut Prakan. The construction cost was set at 120 billion baht.
In its first few days, Bangkok residents flocked to see the world's largest single terminal airport.
However, the bustling atmosphere soon gave way to chaos as the ticketing system and luggage-checking equipment malfunctioned.
As problems mounted at Suvarnabhumi, many passengers wished the ageing Don Mueang airport, which it replaced, was still in action.
The number of toilets was inadequate to serve the number of passengers. Direction signs were unclear, causing confusion. Up to 400 holes in the roof had to be plugged against leaks.
The most serious problem was probably the small cracks which opened on taxiways and parts of some runways.
Worries over safety forced the then Surayud Chulanont government to tell budget airlines to return temporarily to Don Mueang airport to reduce congestion at the new airport and clear the way for repairs.
Airports of Thailand president Serirat Prasutanond insists on the safety of the taxiways and runways, arguing the cracks occurred only at the surface level.
The whole structure was strong and met acceptable standards required to serve more than 800 flights a day, he said.
In fact, what disturbs Mr Serirat and AoT executives more often are complaints from passengers about services inside the terminal. Passengers have complained to the AoT that their belongings have been stolen.
AoT board chairman Piyapan Champasut asked police to crack down on the thieves.
A gang backed by airport security officials was arrested as a result.
However, despite more frequent patrols by the police, the AoT has failed to weed out the illegal taxis and tour guides. For three years, their numbers have grown, with up to 40 gangs at one point colluding with airport staff to cheat passengers.
The AoT has transferred the staff responsible for supervising taxi and tourism services at the airport, which has provided a partial solution.
Mr Serirat said the AoT had done its best to tackle the problems at the airport.He was still confident Suvarnabhumi could reach its goal of becoming one of the world's best airports.
"Today we can say the Suvarnabhumi airport is in the heart of tourists worldwide," he said.
He hopes the airport can make it on to the top 10 list in another one or two years starting from today, its third anniversary.
The 10 best airports as rated by Skytrax this year are Incheon in South Korea,Hong Kong, Singapore, Zurich, Munich,Kansai in Japan, Kuala Lumpur, Amsterdam, Nagoya and Auckland.
Skytrax, which reviews airports and airlines, gave Suvarnabhumi three out of five stars, according to its website.
The airport, which opened commercially on Sept 28,2006, ran into problems even before construction began.
Successive governments flip-flopped on where the airport would go before a location was finally agreed upon: a 215,000-rai area in Bang Phli district of Samut Prakan. The construction cost was set at 120 billion baht.
In its first few days, Bangkok residents flocked to see the world's largest single terminal airport.
However, the bustling atmosphere soon gave way to chaos as the ticketing system and luggage-checking equipment malfunctioned.
As problems mounted at Suvarnabhumi, many passengers wished the ageing Don Mueang airport, which it replaced, was still in action.
The number of toilets was inadequate to serve the number of passengers. Direction signs were unclear, causing confusion. Up to 400 holes in the roof had to be plugged against leaks.
The most serious problem was probably the small cracks which opened on taxiways and parts of some runways.
Worries over safety forced the then Surayud Chulanont government to tell budget airlines to return temporarily to Don Mueang airport to reduce congestion at the new airport and clear the way for repairs.
Airports of Thailand president Serirat Prasutanond insists on the safety of the taxiways and runways, arguing the cracks occurred only at the surface level.
The whole structure was strong and met acceptable standards required to serve more than 800 flights a day, he said.
In fact, what disturbs Mr Serirat and AoT executives more often are complaints from passengers about services inside the terminal. Passengers have complained to the AoT that their belongings have been stolen.
AoT board chairman Piyapan Champasut asked police to crack down on the thieves.
A gang backed by airport security officials was arrested as a result.
However, despite more frequent patrols by the police, the AoT has failed to weed out the illegal taxis and tour guides. For three years, their numbers have grown, with up to 40 gangs at one point colluding with airport staff to cheat passengers.
The AoT has transferred the staff responsible for supervising taxi and tourism services at the airport, which has provided a partial solution.
Mr Serirat said the AoT had done its best to tackle the problems at the airport.He was still confident Suvarnabhumi could reach its goal of becoming one of the world's best airports.
"Today we can say the Suvarnabhumi airport is in the heart of tourists worldwide," he said.
He hopes the airport can make it on to the top 10 list in another one or two years starting from today, its third anniversary.
The 10 best airports as rated by Skytrax this year are Incheon in South Korea,Hong Kong, Singapore, Zurich, Munich,Kansai in Japan, Kuala Lumpur, Amsterdam, Nagoya and Auckland.
Skytrax, which reviews airports and airlines, gave Suvarnabhumi three out of five stars, according to its website.
Residents threaten to occupy terminal
People living near Suvarnabhumi airport are threatening to occupy the passenger terminal if the compensation they were promised by the Airports of Thailand does not arrive soon.
Residents of the Rom Ruedee and Saranwong housing estates in Rom Klao yesterday tied balloons and hung banners outside their homes in protest at delays by the AoT to pay the compensation.
Suvarnabhumi International Airport marks the third anniversary of its opening today.
Wanchart Manathammasombat,50,who heads the Saranwong housing estate, said residents were renewing their calls for the AoT and the government to provide help after past efforts had failed to relieve their troubles.
"We want the world to know that the AoT, which runs Suvarnabhumi airport,works without good governance," Mr Wanchart said.
"Three years have passed, but it has helped less than 5% of the 15,000 affected families."
Mr Wanchart said the AoT suspended paying compensation to residents after the Samut Prakan court ruled it did not have to compensate anyone who had sued it. The airport is in Samut Prakan province.
"AoT chooses to use a ruling in its favour to avoid its social responsibility even though, according to an environ-mental impact assessment study, the AoT must compensate those living with NEF [noise exposure forecast] levels of over 40, and between 30 and 40, as many residents do," he said.
Mr Wanchart also cited a cabinet resolution of May 29, 1997, which required the AoT to help residents. The Supreme Administrative Court backed the resolution. Residents are affected by aircraft noise, dust and fuel vapour.Many suffer from insomnia.
Doctors from Chulalongkorn Hospital found that 80% of people in Rom Ruedee housing estate who live under the aircraft flight path, and noise contours of over 40 NEF, had developed hearing difficulties, Mr Wanchart said.
Deputy Prime Minister Suthep Thaugsuban had promised to solve residents'problems within two months of taking office, but nine months had now passed.
Prime Minister Abhisit Vejjajiva was the Asean chairman on human rights but was unable to protect the rights of people around the airport, he said.
Residents wrote to the prime minister last month. If the government continued to ignore them, they would break into the passenger terminal.
Pranee Chokloi, a 38-year-old resident, said her 11-year-old son now wore a hearing aid after developing hearing problems from exposure to aircraft noise.
Amornret Moeinoratha,48, said she could not afford to move and now rented another house elsewhere for her parents,who suffered from hypertension and insomnia developed from living near the airport.
Residents of the Rom Ruedee and Saranwong housing estates in Rom Klao yesterday tied balloons and hung banners outside their homes in protest at delays by the AoT to pay the compensation.
Suvarnabhumi International Airport marks the third anniversary of its opening today.
Wanchart Manathammasombat,50,who heads the Saranwong housing estate, said residents were renewing their calls for the AoT and the government to provide help after past efforts had failed to relieve their troubles.
"We want the world to know that the AoT, which runs Suvarnabhumi airport,works without good governance," Mr Wanchart said.
"Three years have passed, but it has helped less than 5% of the 15,000 affected families."
Mr Wanchart said the AoT suspended paying compensation to residents after the Samut Prakan court ruled it did not have to compensate anyone who had sued it. The airport is in Samut Prakan province.
"AoT chooses to use a ruling in its favour to avoid its social responsibility even though, according to an environ-mental impact assessment study, the AoT must compensate those living with NEF [noise exposure forecast] levels of over 40, and between 30 and 40, as many residents do," he said.
Mr Wanchart also cited a cabinet resolution of May 29, 1997, which required the AoT to help residents. The Supreme Administrative Court backed the resolution. Residents are affected by aircraft noise, dust and fuel vapour.Many suffer from insomnia.
Doctors from Chulalongkorn Hospital found that 80% of people in Rom Ruedee housing estate who live under the aircraft flight path, and noise contours of over 40 NEF, had developed hearing difficulties, Mr Wanchart said.
Deputy Prime Minister Suthep Thaugsuban had promised to solve residents'problems within two months of taking office, but nine months had now passed.
Prime Minister Abhisit Vejjajiva was the Asean chairman on human rights but was unable to protect the rights of people around the airport, he said.
Residents wrote to the prime minister last month. If the government continued to ignore them, they would break into the passenger terminal.
Pranee Chokloi, a 38-year-old resident, said her 11-year-old son now wore a hearing aid after developing hearing problems from exposure to aircraft noise.
Amornret Moeinoratha,48, said she could not afford to move and now rented another house elsewhere for her parents,who suffered from hypertension and insomnia developed from living near the airport.
Airlines pledge carbon-neutral growth by 2020
The aviation industry has a good track record in the battle against climate change, but it has been poor at telling the story to a wider audience, thus subjecting itself to constant criticism.
In fact, the industry has shown that it is perhaps more committed and proactive than other economic sectors in reducing carbon emissions on a global scale.
The adoption of carbon-neutral growth by the International Air Transport Association (IATA) on June 7 in Kuala Lumpur highlighted the industry's eagerness to curb emissions, executives say.
The industry established a comprehensive and ambitious framework to lower its 2% share of global manmade CO
2emissions. The landmark agreement aims for aviation's net CO
2 emissions to stop growing by 2020,even as demand for air transport continues to grow.
The carbon-neutral growth pledge encompasses a set of three sequential goals for air transport: a 1.5% average annual improvement in fuel efficiency from 2009 to 2020; carbon-neutral growth from 2020; and a 50% absolute reduction in carbon emissions by 2050.
Airlines are the first industry to make such a bold commitment at the global level, setting an example for other sectors such as power generation and land transport.
An October 2006 report by Sir Nicholas Stern stated that the largest contributor to human-induced CO
2is power generation (24%), mostly coaland gas-fired plants.
Next is land use change at 18%,then agriculture, industry and transport at 14% each (aviation is part of trans-port). Buildings (8%), other energyrelated activities (5%) and waste (3%)make up the rest.
But IATA pointed out that the airline industry cannot achieve this ambitious target alone and needs a concerted global effort to eventually reach a zeroemission future.
Crucial to the ambitious goal is a four-pillar strategy set out by IATA that includes improved technology,effective operations, efficient infrastructure and positive economic measures.
The airlines' commitment needs to be matched by governments, the association added. The International Civil Aviation Organisation, the UN's aviation agency, must set binding carbon emission standards on manufacturers of new aircraft. A legal and fiscal framework to support the availability of sustainable biofuels must be established.And governments must work with air navigation service providers to push forward major infrastructure projects such as a Single European Sky, NextGen in the US or fixing the Pearl River Delta in China.
The industry set a target of increasing biofuel use to 10% of all consumption by 2017. Biofuels, according to IATA,have the potential to reduce the industry's footprint by up to 80%.
Biofuels currently being tested are drop-in fuels that can be used in current engines and can be mixed with traditional jet fuel. If certification occurs in 2010 or 2011 and production is ramped up, this ambitious target can be realised.
The introduction of new fuelefficient aircraft such as the Airbus A380 megajet and Boeing 787"Dreamliner" can make airlines 20-25% more fuel-efficient.
In fact, the industry has shown that it is perhaps more committed and proactive than other economic sectors in reducing carbon emissions on a global scale.
The adoption of carbon-neutral growth by the International Air Transport Association (IATA) on June 7 in Kuala Lumpur highlighted the industry's eagerness to curb emissions, executives say.
The industry established a comprehensive and ambitious framework to lower its 2% share of global manmade CO
2emissions. The landmark agreement aims for aviation's net CO
2 emissions to stop growing by 2020,even as demand for air transport continues to grow.
The carbon-neutral growth pledge encompasses a set of three sequential goals for air transport: a 1.5% average annual improvement in fuel efficiency from 2009 to 2020; carbon-neutral growth from 2020; and a 50% absolute reduction in carbon emissions by 2050.
Airlines are the first industry to make such a bold commitment at the global level, setting an example for other sectors such as power generation and land transport.
An October 2006 report by Sir Nicholas Stern stated that the largest contributor to human-induced CO
2is power generation (24%), mostly coaland gas-fired plants.
Next is land use change at 18%,then agriculture, industry and transport at 14% each (aviation is part of trans-port). Buildings (8%), other energyrelated activities (5%) and waste (3%)make up the rest.
But IATA pointed out that the airline industry cannot achieve this ambitious target alone and needs a concerted global effort to eventually reach a zeroemission future.
Crucial to the ambitious goal is a four-pillar strategy set out by IATA that includes improved technology,effective operations, efficient infrastructure and positive economic measures.
The airlines' commitment needs to be matched by governments, the association added. The International Civil Aviation Organisation, the UN's aviation agency, must set binding carbon emission standards on manufacturers of new aircraft. A legal and fiscal framework to support the availability of sustainable biofuels must be established.And governments must work with air navigation service providers to push forward major infrastructure projects such as a Single European Sky, NextGen in the US or fixing the Pearl River Delta in China.
The industry set a target of increasing biofuel use to 10% of all consumption by 2017. Biofuels, according to IATA,have the potential to reduce the industry's footprint by up to 80%.
Biofuels currently being tested are drop-in fuels that can be used in current engines and can be mixed with traditional jet fuel. If certification occurs in 2010 or 2011 and production is ramped up, this ambitious target can be realised.
The introduction of new fuelefficient aircraft such as the Airbus A380 megajet and Boeing 787"Dreamliner" can make airlines 20-25% more fuel-efficient.
Thursday, September 24, 2009
ASC hits back at claims its case was a debacle
The disbanded Assets Scrutiny Committee is defending its handling of the rubber sapling investigation after coming under fire from the prosecution for bungling the case.
Former ASC member Sak Korsaengruang yesterday told a news conference there was apparently a campaign under way to discredit the ASC's work.
The news conference was held after former ASC members met to discuss the Office of the Attorney-General's verbal onslaught after the Supreme Court's Criminal Division for Holders of Political Positions on Monday cleared all the defendants of corruption and malfeasance charges levelled against them.
OAG spokesman Thanapit Moonlapruek accused the ASC of bungling the investigation, saying the agency had rushed its decision to send the case to court despite the public prosecution's advice that the allegations against the 44 defendants lacked supporting evidence.
Mr Sak said the campaign seemed to begin after the ASC's ruling on the allegedly shady procurement of CTX bomb scanners for Suvarnabhumi airport.
"The ASC did its job for the public good and faced several lawsuits in the process. Now, justice officials are rubbing it in," he said.
"So we have to watch out for a campaign to undermine the ASC's work which seemed to have started after the ruling on the CTX case."
The ASC, headed by Nam Yimyaem,implicated Attorney-General Chaikasem Netisiri, a former member of the Airports of Thailand board, in alleged irregularities in the procurement of the bomb detectors at Suvarnabhumi.
Differences of opinion have since emerged, forcing the ASC to take certain cases, including the 2003 two- and threedigit lottery case, to court itself rather than go through the prosecution.
Mr Sak said it was unfair of the OAG to criticise the ASC after the acquittal of defendants in the sapling case.
"Has the OAG never lost a single case? And in this case a senior justice official testified as a defence witness that the case was politically motivated,"he said.
Former ASC member Kaewsun Ati-bhodhi said the OAG's comments were inappropriate and could influence other pending corruption cases.
However, he said the ASC respected the Supreme Court's verdict.
Meanwhile, deputy agriculture minister Supachai Phosu said he would propose a scheme to promote the farming of 3 million rai of rubber worth 16 billion baht following the verdict.
He said he would ask for a budget from the Thai Kem Kaeng "Thailand:Investing from Strength to Strength"project to subsidise the scheme.
"It will be beneficial to farmers in the long run," he said."If the agriculture minister agrees to this, we can use the rubber sapling case as a lesson and make sure the project is transparent."
In another development, the Commission of the Office of the AttorneyGeneral has named Atthapol Yaisawang,inspector to the office, as deputy attorney-general.
Mr Thanapit, the OAG spokesman who doubles as the head of the Economic Crime Litigation Department, has been made director-general of the Special Cases Department.
Former ASC member Sak Korsaengruang yesterday told a news conference there was apparently a campaign under way to discredit the ASC's work.
The news conference was held after former ASC members met to discuss the Office of the Attorney-General's verbal onslaught after the Supreme Court's Criminal Division for Holders of Political Positions on Monday cleared all the defendants of corruption and malfeasance charges levelled against them.
OAG spokesman Thanapit Moonlapruek accused the ASC of bungling the investigation, saying the agency had rushed its decision to send the case to court despite the public prosecution's advice that the allegations against the 44 defendants lacked supporting evidence.
Mr Sak said the campaign seemed to begin after the ASC's ruling on the allegedly shady procurement of CTX bomb scanners for Suvarnabhumi airport.
"The ASC did its job for the public good and faced several lawsuits in the process. Now, justice officials are rubbing it in," he said.
"So we have to watch out for a campaign to undermine the ASC's work which seemed to have started after the ruling on the CTX case."
The ASC, headed by Nam Yimyaem,implicated Attorney-General Chaikasem Netisiri, a former member of the Airports of Thailand board, in alleged irregularities in the procurement of the bomb detectors at Suvarnabhumi.
Differences of opinion have since emerged, forcing the ASC to take certain cases, including the 2003 two- and threedigit lottery case, to court itself rather than go through the prosecution.
Mr Sak said it was unfair of the OAG to criticise the ASC after the acquittal of defendants in the sapling case.
"Has the OAG never lost a single case? And in this case a senior justice official testified as a defence witness that the case was politically motivated,"he said.
Former ASC member Kaewsun Ati-bhodhi said the OAG's comments were inappropriate and could influence other pending corruption cases.
However, he said the ASC respected the Supreme Court's verdict.
Meanwhile, deputy agriculture minister Supachai Phosu said he would propose a scheme to promote the farming of 3 million rai of rubber worth 16 billion baht following the verdict.
He said he would ask for a budget from the Thai Kem Kaeng "Thailand:Investing from Strength to Strength"project to subsidise the scheme.
"It will be beneficial to farmers in the long run," he said."If the agriculture minister agrees to this, we can use the rubber sapling case as a lesson and make sure the project is transparent."
In another development, the Commission of the Office of the AttorneyGeneral has named Atthapol Yaisawang,inspector to the office, as deputy attorney-general.
Mr Thanapit, the OAG spokesman who doubles as the head of the Economic Crime Litigation Department, has been made director-general of the Special Cases Department.
Man charged in B50m scam
A man has been charged with operating a pyramid investment scheme that attracted more than a thousand investors and 50 million baht in funds.
Natthachai Machi,41, is also believed to have masterminded several other scams including opening a fraudulent flight attendant training operation, but he has denied all allegations.
Crime Suppression Division police have taken Mr Natthachai into custody after two warrants were issued for his arrest.
CSD deputy chief Suphisan Phakdinoranat said Mr Natthachai and his accomplices had operated a company to lure investors to invest in a fraudulent oil investment scheme.
His victims were led to believe their investments of 250,000 baht would lead to a quick profit of 300,000 baht.
But the investors lost at least 50 million baht between them in the investment scam, Pol Col Suphisan said.
Other suspects who have not been arrested include Thanaphon Chotisaen,Anan Nuthae, Kritaphat Trakulsomsiri and Thatsaphorn Kaosaiyanan.
Pol Col Suphisan said Mr Natthachai had also opened Universe Airline Co to deceive customers who wanted to become flight attendants.
He said Mr Natthachai shut down the company abruptly after receiving money from people who had signed up for training. He also did not pay the company staff their wages.
The employees filed a complaint with police which led to Mr Natthachai's arrest.
Mr Natthachai is thought to have opened several other firms to deceive investors into investing in various types of fraudulent schemes.
Natthachai Machi,41, is also believed to have masterminded several other scams including opening a fraudulent flight attendant training operation, but he has denied all allegations.
Crime Suppression Division police have taken Mr Natthachai into custody after two warrants were issued for his arrest.
CSD deputy chief Suphisan Phakdinoranat said Mr Natthachai and his accomplices had operated a company to lure investors to invest in a fraudulent oil investment scheme.
His victims were led to believe their investments of 250,000 baht would lead to a quick profit of 300,000 baht.
But the investors lost at least 50 million baht between them in the investment scam, Pol Col Suphisan said.
Other suspects who have not been arrested include Thanaphon Chotisaen,Anan Nuthae, Kritaphat Trakulsomsiri and Thatsaphorn Kaosaiyanan.
Pol Col Suphisan said Mr Natthachai had also opened Universe Airline Co to deceive customers who wanted to become flight attendants.
He said Mr Natthachai shut down the company abruptly after receiving money from people who had signed up for training. He also did not pay the company staff their wages.
The employees filed a complaint with police which led to Mr Natthachai's arrest.
Mr Natthachai is thought to have opened several other firms to deceive investors into investing in various types of fraudulent schemes.
AOT MULLS TERMS FOR LUGGAGE CART DEAL
Airports of Thailand's board will today consider the terms of reference for the new baggage cart concession at Suvarnabhumi Airport as well as a special bidding process aimed at major international companies.
AOT president Serirat Prasutanond said yesterday that under the proposed procedures, AOT would choose one company to procure and manage 9,034 luggage trolleys using the special method of inviting at least three experienced firms to submit proposals.
The basic requirements call for trolleys to be purchased from the top three global brands and be made of lightweight aluminium, unlike the old ones at Suvarnabhumi.
The bid process is expected to take one month and the winner is expected to start delivering the trolleys to AOT next January.
The key selection factors will be the best management plan and the most reasonable fee.
AOT has decided that the trolley management fee must not be more than what it had paid to Thai Airport Ground Services (Tags), the previous concession holder, but the management quality must be better than TAGS.
TAGS' concession stipulated a total management fee of Bt532.86 million over its seven-year term.
AOT is rushing to seek a new trolley firm following its recent termination of the TAGS contract.
An AOT source said that among the top three global trolley brands are Wanzal and Expresso.
The source said King Power is expected to join the bidding as it has already bagged the deal from AOT to manage advertising on the carts.
AOT president Serirat Prasutanond said yesterday that under the proposed procedures, AOT would choose one company to procure and manage 9,034 luggage trolleys using the special method of inviting at least three experienced firms to submit proposals.
The basic requirements call for trolleys to be purchased from the top three global brands and be made of lightweight aluminium, unlike the old ones at Suvarnabhumi.
The bid process is expected to take one month and the winner is expected to start delivering the trolleys to AOT next January.
The key selection factors will be the best management plan and the most reasonable fee.
AOT has decided that the trolley management fee must not be more than what it had paid to Thai Airport Ground Services (Tags), the previous concession holder, but the management quality must be better than TAGS.
TAGS' concession stipulated a total management fee of Bt532.86 million over its seven-year term.
AOT is rushing to seek a new trolley firm following its recent termination of the TAGS contract.
An AOT source said that among the top three global trolley brands are Wanzal and Expresso.
The source said King Power is expected to join the bidding as it has already bagged the deal from AOT to manage advertising on the carts.
House seeks AOT, King Power probe
The House committee on finance, fiscal and banking will today file a petition to the National Anti-Corruption Commission (NACC) over Airports of Thailand's charges for extra space used at Suvarnabhumi Airport by King Power International.
Surapong Tovichakchaikul, a Puea Thai Party MP and chairman of the committee, said the petition was against the ministers of finance and transport, as well as government officials, for negligence and loss to the state.
The chairman said the action followed testimony on the charges from directors of Airports of Thailand, the finance minister, the permanent secretary of finance and NACC officials.
"The concession for the duty-free area, signed between AOT and King Power in 2005, demands King Power to pay Bt1.2 billion per annum. However, the company's duty free area was 6,820 square metres above the space specified in the concession. However, King Power was charged [an additional] Bt990 million, when the damage is as high as Bt6.49 billion," Surapong said.
Meanwhile, regarding the commercial-space concession, King Power was also found to have controlled 25,820 square metres, when the specified area was only 20,000 square metres. For the extra space, it paid Bt414 million, against an actual cost of Bt1.56 billion, Surachai said.
The AOT board will convene at its monthly meeting today.
AOT president Serirat Prasutanond said yesterday that the board would be informed of the progress on the extra charges on King Power's excess commercial area, which could be valued at Bt300 million-Bt400 million.
He said this was for the extra space used until December 2008.
Surapong Tovichakchaikul, a Puea Thai Party MP and chairman of the committee, said the petition was against the ministers of finance and transport, as well as government officials, for negligence and loss to the state.
The chairman said the action followed testimony on the charges from directors of Airports of Thailand, the finance minister, the permanent secretary of finance and NACC officials.
"The concession for the duty-free area, signed between AOT and King Power in 2005, demands King Power to pay Bt1.2 billion per annum. However, the company's duty free area was 6,820 square metres above the space specified in the concession. However, King Power was charged [an additional] Bt990 million, when the damage is as high as Bt6.49 billion," Surapong said.
Meanwhile, regarding the commercial-space concession, King Power was also found to have controlled 25,820 square metres, when the specified area was only 20,000 square metres. For the extra space, it paid Bt414 million, against an actual cost of Bt1.56 billion, Surachai said.
The AOT board will convene at its monthly meeting today.
AOT president Serirat Prasutanond said yesterday that the board would be informed of the progress on the extra charges on King Power's excess commercial area, which could be valued at Bt300 million-Bt400 million.
He said this was for the extra space used until December 2008.
Wednesday, September 23, 2009
Seven arrested for luggage theft
Security has been tightened in the luggage sorting area at Suvarnabhumi airport following the arrest of five employees and two security guards who have been accused of stealing more than 100 valuable items from passenger bags.
Torsak Ningsanont, deputy director of Suvarnabhumi airport, said security has been increased in the area to curb luggage thefts.
Airport authorities had asked officers at the Police Region 1 Bureau and Rachathewa police to investigate the thefts following numerous complaints. This led to the arrest of the seven on Sunday.
The five employees taken into custody were identified as Ruangwut Aromyen,27, Khanit Nikatanond,25, Nithat Jaemsri, 28, Thongchai Banyaem, 29, and Kraisorn Sirichom,25.
The two arrested security guards were Weerasak Kaewpa,31, of Chubb Aviation Security Co and Arthit Janthasen,35, of MPA Securitrust Co.
They are believed to have worked as a team.
More than 100 stolen items were seized from their houses. Among the items were 37 mobile phones, cameras, watches,notebook computers, gold bracelets and necklaces and banknotes.
Torsak Ningsanont, deputy director of Suvarnabhumi airport, said security has been increased in the area to curb luggage thefts.
Airport authorities had asked officers at the Police Region 1 Bureau and Rachathewa police to investigate the thefts following numerous complaints. This led to the arrest of the seven on Sunday.
The five employees taken into custody were identified as Ruangwut Aromyen,27, Khanit Nikatanond,25, Nithat Jaemsri, 28, Thongchai Banyaem, 29, and Kraisorn Sirichom,25.
The two arrested security guards were Weerasak Kaewpa,31, of Chubb Aviation Security Co and Arthit Janthasen,35, of MPA Securitrust Co.
They are believed to have worked as a team.
More than 100 stolen items were seized from their houses. Among the items were 37 mobile phones, cameras, watches,notebook computers, gold bracelets and necklaces and banknotes.
Pratt & Whitney to cut 1,000 US jobs
The jet engine maker Pratt & Whitney said on Monday that it would eliminate 1,000 jobs in Connecticut by 2011, transferring engine repair work to the southeastern state of Georgia and Asia in a cost-cutting move.
The subsidiary of United Technologies Corp will shut its Cheshire, Connecticut,plant by early 2011 and shift some operations from its East Hartford facility beginning in the second quarter of next year. Work will be moved to Columbus,Georgia, Singapore and Japan.
The only way that we can keep highquality jobs in Connecticut is to remain competitive, react to dynamic market conditions and position the company for long-term success, it said.
Pratt & Whitney, which is suffering from declines in airline demand, employs 35,000 workers worldwide, with 11,000 in Connecticut. A spokesman said the net loss of jobs companywide was unclear as work is moved out of the state, pri-marily to cut labour costs.
In deciding to terminate the jobs in Connecticut, Pratt & Whitney rejected an offer that the Machinists union valued at more than $80 million in wage and other concessions and a state plan proposing $100 million in economic assistance over five years.
The company said the two proposals failed to come up with $53.8 million needed in annual and recurring savings to avoid shutting the two operations.
The subsidiary of United Technologies Corp will shut its Cheshire, Connecticut,plant by early 2011 and shift some operations from its East Hartford facility beginning in the second quarter of next year. Work will be moved to Columbus,Georgia, Singapore and Japan.
The only way that we can keep highquality jobs in Connecticut is to remain competitive, react to dynamic market conditions and position the company for long-term success, it said.
Pratt & Whitney, which is suffering from declines in airline demand, employs 35,000 workers worldwide, with 11,000 in Connecticut. A spokesman said the net loss of jobs companywide was unclear as work is moved out of the state, pri-marily to cut labour costs.
In deciding to terminate the jobs in Connecticut, Pratt & Whitney rejected an offer that the Machinists union valued at more than $80 million in wage and other concessions and a state plan proposing $100 million in economic assistance over five years.
The company said the two proposals failed to come up with $53.8 million needed in annual and recurring savings to avoid shutting the two operations.
RAIL-LINK LAUNCH NOT DELAYED BY PHEU THAI COMPLAINTS, SAYS SRT
The State Railway of Thailand (SRT) is insisting the launch of the airport-link service will not be delayed by the opposition Pheu Thai Party's complaints about the premier and the interior minister allowing conflicts of interest in the project.
Suphoth Sublom, an SRT board director, said yesterday the project had made a lot of progress and the civil construction work was complete. The SRT is expected to officially start testing the system on December 5, which will run for three months. The service will be officially launched in April.
On Monday, a Pheu Thai MP filed a complaint with the National Anti-Corruption Commission saying that Prime Minister Abhisit Vejjajiva and Interior Minister Chaovarat Chanweerakul had allowed conflicts of interest in the project because Chaovarat's family members held shares in a construction company.
Pheu Thai's Lamphun MP Sanguan Pongmanee and the party's spokesman Prompong Nopparit claimed that Chaovarat's wife and children held shares in Sino-Thai Engineering and Construction, which won the Bt408-million project contract for adding more trimmings to the rail link. The Cabinet had approved the budget on March 10.
Chaovarat, also leader of Bhum Jai Thai Party, argued he had already declared his assets and has had nothing to do with the company for a long time now.
Moreover, he said, since Sino-Thai was a public company, anybody could buy its shares and as his children were all adults, they could do what they wanted with their money.
On March 10, the Cabinet approved the Transport Ministry's request for an additional Bt115 million to hire a consultant to supervise the construction of elevated paths linking the Phya Thai Skytrain station and the Petchaburi subway station to the airport-rail link at Makkasan. This is part of the connection between airport-rail link and the SRT transportation system in the city.
It also approved Bt11 million and Bt87 million for the construction of the paths from Phya Thai station and Petchaburi subway station respectively.
The government will cover the cost of the construction, which should be completed in 15 months.
The Cabinet also approved the expenditure of Bt195 million for the services of an independent safety and system certification engineer for three years. The government will be responsible for this cost as well.
The Cabinet has acknowledged the relocation of public facilities near the airport-rail link, which would cost Bt140 million. The Metropolitan Water Works Authority and the Metropolitan Electricity Authority each will be responsible for relocation costs of Bt83 million and Bt57 million, respectively.
Suphoth Sublom, an SRT board director, said yesterday the project had made a lot of progress and the civil construction work was complete. The SRT is expected to officially start testing the system on December 5, which will run for three months. The service will be officially launched in April.
On Monday, a Pheu Thai MP filed a complaint with the National Anti-Corruption Commission saying that Prime Minister Abhisit Vejjajiva and Interior Minister Chaovarat Chanweerakul had allowed conflicts of interest in the project because Chaovarat's family members held shares in a construction company.
Pheu Thai's Lamphun MP Sanguan Pongmanee and the party's spokesman Prompong Nopparit claimed that Chaovarat's wife and children held shares in Sino-Thai Engineering and Construction, which won the Bt408-million project contract for adding more trimmings to the rail link. The Cabinet had approved the budget on March 10.
Chaovarat, also leader of Bhum Jai Thai Party, argued he had already declared his assets and has had nothing to do with the company for a long time now.
Moreover, he said, since Sino-Thai was a public company, anybody could buy its shares and as his children were all adults, they could do what they wanted with their money.
On March 10, the Cabinet approved the Transport Ministry's request for an additional Bt115 million to hire a consultant to supervise the construction of elevated paths linking the Phya Thai Skytrain station and the Petchaburi subway station to the airport-rail link at Makkasan. This is part of the connection between airport-rail link and the SRT transportation system in the city.
It also approved Bt11 million and Bt87 million for the construction of the paths from Phya Thai station and Petchaburi subway station respectively.
The government will cover the cost of the construction, which should be completed in 15 months.
The Cabinet also approved the expenditure of Bt195 million for the services of an independent safety and system certification engineer for three years. The government will be responsible for this cost as well.
The Cabinet has acknowledged the relocation of public facilities near the airport-rail link, which would cost Bt140 million. The Metropolitan Water Works Authority and the Metropolitan Electricity Authority each will be responsible for relocation costs of Bt83 million and Bt57 million, respectively.
Air traffic has bottomed out, says AoT
The downturn in air traffic through Thailand's main airports, including Suvarnabhumi Airport, shows signs of having bottomed out, with August's figures tipping into the black for the first time in eight months.
Passenger traffic last month edged up by 2.44% over the same month last year to 4.62 million, while flight movements rose by 5.4% to 30,638, according to statistics from the Airports of Thailand Plc (AoT).
Air cargo throughput also showed signs of improvement, contracting by 9.36% in August to 99,572 tonnes, compared to -16.52% in July.
The growth in August signalled the beginning of a slow recovery for pas-senger traffic, which has plunged since last year's Bangkok airport blockade,prolonged domestic political unrest,global recession and the H1N1 flu outbreak, said an aviation industry analyst.
Last month's figures showed an improvement over July, which recorded the smallest contraction for seven months, indicating the traffic slump might have bottomed out.
August's passenger growth was driven by a 16.1% increase in domestic volume to 1.86 million, though international passenger traffic remained negative at -5.11%, or 2.75 million.
Domestic flight growth followed the same pattern, up by 20.33% in August to 13,986 flights, while international flights fell by 4.55% to 16,652 flights.
Both international and domestic cargo remained in the doldrums, contracting by 9.64% to 92,054 tonnes and 5.84% to 7,518 tonnes, respectively.
Passengers for the first eight months were 12.55% fewer than the same period last year at 34.53 million. Combined aircraft movements fell 10.31% to 236,280 while cargo tonnage plunged by 23.66%to 697,154 tonnes.
But aviation analysts are cautiously optimistic about the industry's outlook for the rest of the year, assuming there are no more political upheavals.
The last quarter's high season and an improving global economy should boost flight and passenger volumes.
AoT's best-case figures put 2009's total passenger traffic at last year's level of 54.04 million, with the negative forecast predicting a 10% decline from 2008.
Passenger traffic last month edged up by 2.44% over the same month last year to 4.62 million, while flight movements rose by 5.4% to 30,638, according to statistics from the Airports of Thailand Plc (AoT).
Air cargo throughput also showed signs of improvement, contracting by 9.36% in August to 99,572 tonnes, compared to -16.52% in July.
The growth in August signalled the beginning of a slow recovery for pas-senger traffic, which has plunged since last year's Bangkok airport blockade,prolonged domestic political unrest,global recession and the H1N1 flu outbreak, said an aviation industry analyst.
Last month's figures showed an improvement over July, which recorded the smallest contraction for seven months, indicating the traffic slump might have bottomed out.
August's passenger growth was driven by a 16.1% increase in domestic volume to 1.86 million, though international passenger traffic remained negative at -5.11%, or 2.75 million.
Domestic flight growth followed the same pattern, up by 20.33% in August to 13,986 flights, while international flights fell by 4.55% to 16,652 flights.
Both international and domestic cargo remained in the doldrums, contracting by 9.64% to 92,054 tonnes and 5.84% to 7,518 tonnes, respectively.
Passengers for the first eight months were 12.55% fewer than the same period last year at 34.53 million. Combined aircraft movements fell 10.31% to 236,280 while cargo tonnage plunged by 23.66%to 697,154 tonnes.
But aviation analysts are cautiously optimistic about the industry's outlook for the rest of the year, assuming there are no more political upheavals.
The last quarter's high season and an improving global economy should boost flight and passenger volumes.
AoT's best-case figures put 2009's total passenger traffic at last year's level of 54.04 million, with the negative forecast predicting a 10% decline from 2008.
AirAsia goes inter from Phuket
Thai AirAsia is opening a second base in Phuket for international services at a time when much of the aviation industry remains in the doldrums and some airlines are making cutbacks.
As part of an aggressive growth strategy the no-frills carrier has firmed up plans to link the southern resort island with four major regional cities from November.
The airline now has a single international service to and from PhuketSingapore, and flights to Bangkok.
Thai AirAsia will introduce daily flights from Phuket to Jakarta and to Hong Kong from about mid-November. Daily services to Ho Chi Minh City and Medan will start a month later, said chief executive Tassapon Bijleveld.
The airline will station two A320 jetliners, each capable of carrying 180 passengers, at Phuket International Airport and will set up a crew centre and an aircraft maintenance support base there.Plans are under way for the airline to set up a third Thai hub in Chiang Mai next year to tap alternative traffic opportunities to its Bangkok base.
Phuket offers promising traffic potential, especially from those who want to travel directly to and from the island,said Mr Tassapon.
"There are risks involved in opening the Phuket base but they are calculated ones," he told the Bangkok Post .Having additional hubs to Bangkok increases the airline's options for keeping its passenger traffic flowing through Thailand, particularly if Bangkok encounters political troubles like the blockade of Bangkok's two airports late last year.
Depending on the response to its international services through Phuket, the carrier may connect the island with cities in the Philippines and India, where it plans to establish a foothold next year.
The airline brought its 10th brand new Airbus A320 jetliner into service last Friday, and is due to take delivery of the 11th in December.
Thai AirAsia is due to start a new route - Bangkok-Taipei - on Friday and to begin a second daily BangkokHong Kong service on the same day.
The airline will next month scale back flights on some routes - Bangkok-Hanoi from twice to once daily, Bangkok-Macao from four to three times per day and Bangkok-Penang from twice to once daily - to correspond to traffic demand.
As part of an aggressive growth strategy the no-frills carrier has firmed up plans to link the southern resort island with four major regional cities from November.
The airline now has a single international service to and from PhuketSingapore, and flights to Bangkok.
Thai AirAsia will introduce daily flights from Phuket to Jakarta and to Hong Kong from about mid-November. Daily services to Ho Chi Minh City and Medan will start a month later, said chief executive Tassapon Bijleveld.
The airline will station two A320 jetliners, each capable of carrying 180 passengers, at Phuket International Airport and will set up a crew centre and an aircraft maintenance support base there.Plans are under way for the airline to set up a third Thai hub in Chiang Mai next year to tap alternative traffic opportunities to its Bangkok base.
Phuket offers promising traffic potential, especially from those who want to travel directly to and from the island,said Mr Tassapon.
"There are risks involved in opening the Phuket base but they are calculated ones," he told the Bangkok Post .Having additional hubs to Bangkok increases the airline's options for keeping its passenger traffic flowing through Thailand, particularly if Bangkok encounters political troubles like the blockade of Bangkok's two airports late last year.
Depending on the response to its international services through Phuket, the carrier may connect the island with cities in the Philippines and India, where it plans to establish a foothold next year.
The airline brought its 10th brand new Airbus A320 jetliner into service last Friday, and is due to take delivery of the 11th in December.
Thai AirAsia is due to start a new route - Bangkok-Taipei - on Friday and to begin a second daily BangkokHong Kong service on the same day.
The airline will next month scale back flights on some routes - Bangkok-Hanoi from twice to once daily, Bangkok-Macao from four to three times per day and Bangkok-Penang from twice to once daily - to correspond to traffic demand.
Nigeria's flag carrier loses its Virginity
Virgin Nigeria said last week it was changing its name to Nigerian Eagle Airlines, further cutting ties with founder Virgin Atlantic, and was in talks with investors to raise fresh capital.
The airline, which last month signed a technical partnership with Ethiopian Airlines,"is also planning a private placement within the next six weeks," managing director Dapo Olumide said.
British billionaire Richard Branson's Virgin Atlantic has said it is looking to sell its 49% stake in the airline, for which it paid around $25 million in 2005.
"We have an investment package underway right now and we are going to have a private placement very shortly,"Olumide said.
"We are talking to other potential investors outside this country and we are in discussions with them at the moment. In fact the CFO just came back from a trip where he had discussions with another country, not another airline,to show you the interest that is at play right now," he said.
Virgin Nigeria in January suspended its loss-making long haul flights to Britain and South Africa to focus on its domestic and regional operations.
Industry sources said one of the airline's main financial backers, Nigeria's United Bank for Africa (UBA), had been pushing for it to restructure and reduce losses on the competitive Lagos-London and Lagos-Johannesburg routes.
An industry executive told Reuters in June that the Virgin name would disappear from Virgin Nigeria and that the newly-branded airlines first priority would be to secure around $30 million in long-term funding.
The airline, which last month signed a technical partnership with Ethiopian Airlines,"is also planning a private placement within the next six weeks," managing director Dapo Olumide said.
British billionaire Richard Branson's Virgin Atlantic has said it is looking to sell its 49% stake in the airline, for which it paid around $25 million in 2005.
"We have an investment package underway right now and we are going to have a private placement very shortly,"Olumide said.
"We are talking to other potential investors outside this country and we are in discussions with them at the moment. In fact the CFO just came back from a trip where he had discussions with another country, not another airline,to show you the interest that is at play right now," he said.
Virgin Nigeria in January suspended its loss-making long haul flights to Britain and South Africa to focus on its domestic and regional operations.
Industry sources said one of the airline's main financial backers, Nigeria's United Bank for Africa (UBA), had been pushing for it to restructure and reduce losses on the competitive Lagos-London and Lagos-Johannesburg routes.
An industry executive told Reuters in June that the Virgin name would disappear from Virgin Nigeria and that the newly-branded airlines first priority would be to secure around $30 million in long-term funding.
US airlines likely to outfly their foreign counterparts
US airlines are expected to fare better than most of their foreign counterparts this year because they are trimming unprofitable routes and beefing up balance sheets as the economy begins to rebound.
US-based carriers have been cutting capacity since last year in response to surging oil prices, while most European and Asian carriers have been slower to reduce flights or fly smaller aircraft on their routes.
In the fourth quarter, domestic capacity is expected to fall to levels unseen since after the Sept 11 attacks, when airlines saw air travel demand crumble,according to the Air Transport Association (ATA ).
With fewer seats for sale, airlines could begin to raise fares and drawmore revenue, especially as an appetite for travel returns.
"The US airlines have done so much more than the international airlines to improve their own outlook," said Helane Becker, an analyst with Jesup & Lamont Securities.
"Those guys are just cutting capacity now," she added, referring to European carriers."They're almost a year later than US airlines."
US airlines could still end 2009 in the red, experts warned. Industry executives and analysts say this year is among the industry's worst.
But last week, Continental Airlines Inc said declines in its "high-yield" or premium traffic, a good proxy for highermargin tickets such as business and firstclass, were beginning to slow and Delta Air Lines Inc and UAL Corp's United Airlines said costs were falling due to lower fuel prices.
Stifel Nicolaus said in a note on Friday that Continental could be profitable in the third quarter. Other analysts say carriers could report lower third-quarter losses than previously expected.
Many analysts now expect losses at US carriers to be less steep than those of foreign rivals.
The Arca Airline Index has jumped 23% this month on signals of improved demand and September so far is the index's best month since July 2008.
US carriers have cut domestic capacity 12% in the past two years in response to the spike in oil prices last year and the drop-off in consumer spending this year,ATA data shows.
Airlines have cut jobs, wages and introduced early- retirement options for some employees, similar measures were used to cut costs after the Sept 11 attacks.
North American airlines are expected to lose $2.6 billion this year, much narrower than the $9.5 billion they lost in 2008 when they were among the first to feel the pinch of the recession.
European carriers, on the other hand,are expected to lose $3.8 billion.
US carriers' heavy reliance on domestic traffic rather than international business has also helped them as the global recession hurt international travel a more,analysts said.
US airlines are now also seeking ways to drum up cash. United said it had liquidity initiatives on tap for the fourth quarter and Continental announced a stock sale last month. AMR Corp's American Airlines said on Thursday that it raised $2.9 billion in cash and financing and would focus on more profitable routes.
"The US-based industry may also be cutting capacity another 3% to 5%, with more cuts coming from the international side," said Morningstar analyst Basili Alukos.
"The domestic market is in a better situation and I think more in equilibrium with supply and demand," Alukos added.
US-based carriers have been cutting capacity since last year in response to surging oil prices, while most European and Asian carriers have been slower to reduce flights or fly smaller aircraft on their routes.
In the fourth quarter, domestic capacity is expected to fall to levels unseen since after the Sept 11 attacks, when airlines saw air travel demand crumble,according to the Air Transport Association (ATA ).
With fewer seats for sale, airlines could begin to raise fares and drawmore revenue, especially as an appetite for travel returns.
"The US airlines have done so much more than the international airlines to improve their own outlook," said Helane Becker, an analyst with Jesup & Lamont Securities.
"Those guys are just cutting capacity now," she added, referring to European carriers."They're almost a year later than US airlines."
US airlines could still end 2009 in the red, experts warned. Industry executives and analysts say this year is among the industry's worst.
But last week, Continental Airlines Inc said declines in its "high-yield" or premium traffic, a good proxy for highermargin tickets such as business and firstclass, were beginning to slow and Delta Air Lines Inc and UAL Corp's United Airlines said costs were falling due to lower fuel prices.
Stifel Nicolaus said in a note on Friday that Continental could be profitable in the third quarter. Other analysts say carriers could report lower third-quarter losses than previously expected.
Many analysts now expect losses at US carriers to be less steep than those of foreign rivals.
The Arca Airline Index has jumped 23% this month on signals of improved demand and September so far is the index's best month since July 2008.
US carriers have cut domestic capacity 12% in the past two years in response to the spike in oil prices last year and the drop-off in consumer spending this year,ATA data shows.
Airlines have cut jobs, wages and introduced early- retirement options for some employees, similar measures were used to cut costs after the Sept 11 attacks.
North American airlines are expected to lose $2.6 billion this year, much narrower than the $9.5 billion they lost in 2008 when they were among the first to feel the pinch of the recession.
European carriers, on the other hand,are expected to lose $3.8 billion.
US carriers' heavy reliance on domestic traffic rather than international business has also helped them as the global recession hurt international travel a more,analysts said.
US airlines are now also seeking ways to drum up cash. United said it had liquidity initiatives on tap for the fourth quarter and Continental announced a stock sale last month. AMR Corp's American Airlines said on Thursday that it raised $2.9 billion in cash and financing and would focus on more profitable routes.
"The US-based industry may also be cutting capacity another 3% to 5%, with more cuts coming from the international side," said Morningstar analyst Basili Alukos.
"The domestic market is in a better situation and I think more in equilibrium with supply and demand," Alukos added.
Monday, September 21, 2009
Southern cities get air link
The major southern cities of Phuket and Hat Yai are receiving a new air link, offering an alternative to what is now a seven-hour bus journey.
New airline Happy Air is poised to launch the Phuket-Hat Yai service on Oct 26. The travel time between the two locations will be 40 minutes.
Happy Air sales and marketing manager Patcharapol Sonthipan said the airline had secured aviation permits from the Department of Aviation.
He said Happy Air was positioning itself as a premium-service airline which was targetting tourists and business travellers. The airline also plans to fly to the Malaysian resort island of Langkawi.
Mr Patcharapol said the air service would provide faster alternative for travellers travelling between Phuket and Hat Yai, the commercial district of Songkhla.
Mr Patcharapol said the Phuket-based airline would operate two twin turboprop SAAB 340A aircraft, with 34 seats.
The planes are leased from a Swedish company. Happy Air will offer daily flights between Phuket and Hat Yai and three times a week between Phuket and Langkawi. The Phuket-Langkawi flights will also begin in late October.
New airline Happy Air is poised to launch the Phuket-Hat Yai service on Oct 26. The travel time between the two locations will be 40 minutes.
Happy Air sales and marketing manager Patcharapol Sonthipan said the airline had secured aviation permits from the Department of Aviation.
He said Happy Air was positioning itself as a premium-service airline which was targetting tourists and business travellers. The airline also plans to fly to the Malaysian resort island of Langkawi.
Mr Patcharapol said the air service would provide faster alternative for travellers travelling between Phuket and Hat Yai, the commercial district of Songkhla.
Mr Patcharapol said the Phuket-based airline would operate two twin turboprop SAAB 340A aircraft, with 34 seats.
The planes are leased from a Swedish company. Happy Air will offer daily flights between Phuket and Hat Yai and three times a week between Phuket and Langkawi. The Phuket-Langkawi flights will also begin in late October.
Saturday, September 19, 2009
Business travel slump eases in July, airlines say
Airlines are at last beginning to fill vacant business-class seats in a sign that a slump in cross-border trade is easing. Latest July statistics from the International Air Transport Association released on Thursday add to flickering signs of recovery in the economy but offer little relief for the battered finances of airlines themselves as average fares remain weak.
In July the number of first- or businessclass travellers on international markets fell 14.1% from the same month last year, less than the 21.3% decline seen in June.
"Premium travel on international markets, which is mostly for business, is closely correlated to world trade which bottomed out in May and started to turn up in June," IATA said.
"This improvement in cross-border trade is boosting business travel but demand is still very weak compared to the recent past and there remains much excess capacity, producing intense competition," it added.
On Tuesday IATA raised its forecast for total airline losses in 2009 by $2 billion to a record $11 billion..
Premium seats are the most lucrative sector for airlines. Many business people have downgraded to economy or shunned air travel during the economic crisis, prompting carriers such as Air France to try out new premium economy products.
The positive IATA traffic report underscored European data showing the euro zone's trade surplus grew more than expected in July, with exports rising from the previous month.
Airlines have also individually been reporting slowing declines in their traffic in August.
Parcel giant and US economic bellwether FedEx said it detected a "modestly improving global economy."
Weak demand and a dearth of trade finance - two subjects being tackled by G20 nations - had not only emptied business cabins but also severely depressed airlines' cargo operations.
Tens of thousands of airline jobs have been cut this year.
IATA however said there was a "long way to go" before activity returned to levels seen in 2007 and early 2008.
"Moreover, with economic growth forecast to be relatively weak and much excess capacity (in the market), the problem of low yields remains."
Yields represent the average revenue from each seat sold and help determine whether routes are profitable.
Those returning to premium class do not so far include many employees of large corporations, whose travel departments still have their teeth into costs.Nor has the high life returned to the Atlantic, where the rich and famous often flew first class.
"Bank bonuses may be back but it seems that travelling at the front of the aircraft is not," IATA said.
July's upturn was felt most strongly in Asia, IATA said.
In July the number of first- or businessclass travellers on international markets fell 14.1% from the same month last year, less than the 21.3% decline seen in June.
"Premium travel on international markets, which is mostly for business, is closely correlated to world trade which bottomed out in May and started to turn up in June," IATA said.
"This improvement in cross-border trade is boosting business travel but demand is still very weak compared to the recent past and there remains much excess capacity, producing intense competition," it added.
On Tuesday IATA raised its forecast for total airline losses in 2009 by $2 billion to a record $11 billion..
Premium seats are the most lucrative sector for airlines. Many business people have downgraded to economy or shunned air travel during the economic crisis, prompting carriers such as Air France to try out new premium economy products.
The positive IATA traffic report underscored European data showing the euro zone's trade surplus grew more than expected in July, with exports rising from the previous month.
Airlines have also individually been reporting slowing declines in their traffic in August.
Parcel giant and US economic bellwether FedEx said it detected a "modestly improving global economy."
Weak demand and a dearth of trade finance - two subjects being tackled by G20 nations - had not only emptied business cabins but also severely depressed airlines' cargo operations.
Tens of thousands of airline jobs have been cut this year.
IATA however said there was a "long way to go" before activity returned to levels seen in 2007 and early 2008.
"Moreover, with economic growth forecast to be relatively weak and much excess capacity (in the market), the problem of low yields remains."
Yields represent the average revenue from each seat sold and help determine whether routes are profitable.
Those returning to premium class do not so far include many employees of large corporations, whose travel departments still have their teeth into costs.Nor has the high life returned to the Atlantic, where the rich and famous often flew first class.
"Bank bonuses may be back but it seems that travelling at the front of the aircraft is not," IATA said.
July's upturn was felt most strongly in Asia, IATA said.
Airbus raises aircraft demand forecast
The European planemaker Airbus has increased its forecasts for long-term new plane demand but said the current industry crisis was likely to spark a spate of new order cancellations this winter.
The EADS subsidiary said in a Thursday statement it saw global demand for 25,000 new aircraft across the industry in the twenty-year period between 2009 and 2029, up from the 24,262 it forecast for 2007-2027.
It said replacement of older aircraft and the expansion of low-cost carriers would both be factors in future growth,while the new planes would have a total value of $3.1 trillion.
Airbus chief operating officer for customers John Leahy told reporters, however, that he thought the upcoming winter would be tough for airlines, which would then cancel or postpone orders.
"I think it's going to be a difficult winter. Airlines flew with not very high yields in the summer so did not build up the war chests they usually do," he said.
"We are expecting some airlines to say 'we'd love to have the aircraft, but we haven't got the money'."
Yields, a keenly-watched indicator in the airline industry, show average fares per passenger.
Leahy added that he remained con-fident the company's 2010 deliveries would match the current year, which in turn is expected to stay flat on 2008 at around 480.
He added that he did not expect a World Trade Organisation inquiry into the competitive impact of subsidies received by Airbus to disrupt the devel-opment of its new A-350 wide-body jet.
"I see no impact on the A-350 programme from the WTO, he said."
Airbus said that in spite of an anticipated 2% fall in Revenue Passenger Kilometres (RPKs) this year - a measure of air travel passenger numbers - the firm expected the figure to be up 4.6% next year and continue at similar levels.
Arch-rival Boeing said in its equivalent forecast in June that it expected 29,000 new planes to be ordered over twenty years, at a value of $3.2 trillion.
Meanwhile, Airbus chief executive Tom Enders said in remarks published yesterday that the European planemaker "faces two further 'difficult' years and does not rule out making further production cuts if necessary to adjust to demand.
"I certainly cannot exclude that we will cut back production even more,"he told the Wall Street Journal in an interview."I think we still have two difficult years ahead of us."
Airbus last year suspended plans to increase production of its top-selling single-aisle, A320-family jets to 40 planes a month and in February this year it decided to cut that production to 34 a month from 36 a month from October 2009.
Production rates of the wide-body A330/A340 family would be paused at the current level of 8.5 a month, and not increased further as previously planned,the planemaker said in February.
Failing to cut production creates the risk of making so-called "white tails"that leave the factory floor without a buyer and have to be parked idle at the jetmaker's expense.
The EADS subsidiary said in a Thursday statement it saw global demand for 25,000 new aircraft across the industry in the twenty-year period between 2009 and 2029, up from the 24,262 it forecast for 2007-2027.
It said replacement of older aircraft and the expansion of low-cost carriers would both be factors in future growth,while the new planes would have a total value of $3.1 trillion.
Airbus chief operating officer for customers John Leahy told reporters, however, that he thought the upcoming winter would be tough for airlines, which would then cancel or postpone orders.
"I think it's going to be a difficult winter. Airlines flew with not very high yields in the summer so did not build up the war chests they usually do," he said.
"We are expecting some airlines to say 'we'd love to have the aircraft, but we haven't got the money'."
Yields, a keenly-watched indicator in the airline industry, show average fares per passenger.
Leahy added that he remained con-fident the company's 2010 deliveries would match the current year, which in turn is expected to stay flat on 2008 at around 480.
He added that he did not expect a World Trade Organisation inquiry into the competitive impact of subsidies received by Airbus to disrupt the devel-opment of its new A-350 wide-body jet.
"I see no impact on the A-350 programme from the WTO, he said."
Airbus said that in spite of an anticipated 2% fall in Revenue Passenger Kilometres (RPKs) this year - a measure of air travel passenger numbers - the firm expected the figure to be up 4.6% next year and continue at similar levels.
Arch-rival Boeing said in its equivalent forecast in June that it expected 29,000 new planes to be ordered over twenty years, at a value of $3.2 trillion.
Meanwhile, Airbus chief executive Tom Enders said in remarks published yesterday that the European planemaker "faces two further 'difficult' years and does not rule out making further production cuts if necessary to adjust to demand.
"I certainly cannot exclude that we will cut back production even more,"he told the Wall Street Journal in an interview."I think we still have two difficult years ahead of us."
Airbus last year suspended plans to increase production of its top-selling single-aisle, A320-family jets to 40 planes a month and in February this year it decided to cut that production to 34 a month from 36 a month from October 2009.
Production rates of the wide-body A330/A340 family would be paused at the current level of 8.5 a month, and not increased further as previously planned,the planemaker said in February.
Failing to cut production creates the risk of making so-called "white tails"that leave the factory floor without a buyer and have to be parked idle at the jetmaker's expense.
Carriers "in joint bid to help JAL"
American Airlines will team up with British Airways and Qantas Airways to offer cash-strapped Japan Airlines fresh capital and expanded business ties,two sources said, aiming to fight off a rival offer from Delta Air Lines.
The proposal, which will include a capital injection from American Airlines but may not bring money from British Airways (BA) or Australia's Qantas, comes as Delta holds rival talks to invest in JAL and woo it to a rival airline alliance.
JAL, which is headed for its second straight loss this business year, is weighing both offers as part of a larger government-backed restructuring expected to include heavy lay-offs, route reductions and asset sales.
Both Delta and AMR Corp's American are courting JAL to gain access to promising routes in Asia, including in Japan where the mainly domestic Haneda airport is undergoing a major expansion that will see a large increase in international flights.
"A tie-up with Delta would give JAL a bigger benefit when it comes to North American routes," said Ryouta Himeno,transport analyst at Mitsubishi UFJ Securities."But by involving other carriers which are strong in other areas, American could have a good chance to keep JAL in Oneworld and expand its reach in Asia."
Executives from JAL's Oneworld airline alliance partners American, BA and Qantas met JAL executives this week in Tokyo and told them of their plans to put together a joint offer, two people with direct knowledge of the matter said.
The American-led group will try to sell JAL on the idea that leaving Oneworld,which pools frequent flyer miles, integrates computer systems and feeds passengers between member airlines, would trigger a big loss of business for JAL.
Delta is a member of the rival SkyTeam alliance, which has no major Japanese carrier. Fellow SkyTeam member Air France-KLM has been named as a potential partner with Delta for an investment in JAL. Japan's second-largest airline, All Nippon Airways Co, is part of the Star Alliance, the third major airline group.
"Combined, the Oneworld partnership today generates over half a billion dollars for JAL in revenues on an annual basis.JAL is very aware of this number," said one of the sources, who spoke on condition of anonymity because the negotiations are not public.
Spokespersons for all the airlines declined to comment.
In addition to an investment, American Airlines is talking with JAL about the creation of a joint venture under which the two would co-operate more closely and share revenues on flights as well as look to attract business customers with joint contracts.
The proposal, which will include a capital injection from American Airlines but may not bring money from British Airways (BA) or Australia's Qantas, comes as Delta holds rival talks to invest in JAL and woo it to a rival airline alliance.
JAL, which is headed for its second straight loss this business year, is weighing both offers as part of a larger government-backed restructuring expected to include heavy lay-offs, route reductions and asset sales.
Both Delta and AMR Corp's American are courting JAL to gain access to promising routes in Asia, including in Japan where the mainly domestic Haneda airport is undergoing a major expansion that will see a large increase in international flights.
"A tie-up with Delta would give JAL a bigger benefit when it comes to North American routes," said Ryouta Himeno,transport analyst at Mitsubishi UFJ Securities."But by involving other carriers which are strong in other areas, American could have a good chance to keep JAL in Oneworld and expand its reach in Asia."
Executives from JAL's Oneworld airline alliance partners American, BA and Qantas met JAL executives this week in Tokyo and told them of their plans to put together a joint offer, two people with direct knowledge of the matter said.
The American-led group will try to sell JAL on the idea that leaving Oneworld,which pools frequent flyer miles, integrates computer systems and feeds passengers between member airlines, would trigger a big loss of business for JAL.
Delta is a member of the rival SkyTeam alliance, which has no major Japanese carrier. Fellow SkyTeam member Air France-KLM has been named as a potential partner with Delta for an investment in JAL. Japan's second-largest airline, All Nippon Airways Co, is part of the Star Alliance, the third major airline group.
"Combined, the Oneworld partnership today generates over half a billion dollars for JAL in revenues on an annual basis.JAL is very aware of this number," said one of the sources, who spoke on condition of anonymity because the negotiations are not public.
Spokespersons for all the airlines declined to comment.
In addition to an investment, American Airlines is talking with JAL about the creation of a joint venture under which the two would co-operate more closely and share revenues on flights as well as look to attract business customers with joint contracts.
TNT EXPANDS ITS FLEET, OFFERS MORE TRANSPORTATION CHOICE TO EXPORTERS
The inauguration of TNT's new dedicated aircraft yesterday will give Thai exporters more choice in cargo transportation.
"We can offer our clients, especially those relying on exports of automotive, electronics and electronics parts, to have more choice through the combination of our road network in Asia and air network", said Alan Miu, managing director of TNT Express Worldwide (Thailand).
As TNT yesterday kicked off a new dedicated B747-400ER freighter service between Hong Kong and Europe, it reflected its commitment to investing and growing in Asia.
James McCormac, regional managing director of TNT Asia Pacific, said that it was well-placed to capitalise on strong trading links between the two regions with its integrated air and road delivery network in Asia and Europe.
The new aircraft will not only serve customers in South China, but also in neighbouring countries like Vietnam, Thailand, the Philippines and Taiwan. TNT will now be operating two dedicated freighter aircraft, providing freight and express delivery services between Europe and Asia.
The B747-400ER, which provides non-stop flights, operates between Hong Kong and TNT's European air hub in Liege, Belgium. The existing one - B747-400ERF - will travel between Europe and Shanghai via Hong Kong. The two aircraft are capable of carrying up to 110 tonnes with the lowest tonne/mile cost offering. Currently, TNT has a fleet of about 40 aircraft.
"The freighter from Hong Kong would ensure our customers, especially those in hi-tech communications, electronics and fashion industries, can become more competitive due to faster factory-to-market lead times and increasing inventory management efficiency," said McCormac.
He added: "Our continuous investment in Asia clearly demonstrates TNT's long-term confidence in the region."
TNT Asia Road Network recently expanded into Cambodia. The network now links 127 cities across six countries - from Singapore to China - and stretches across more than 7,500 kilometres.
"We can offer our clients, especially those relying on exports of automotive, electronics and electronics parts, to have more choice through the combination of our road network in Asia and air network", said Alan Miu, managing director of TNT Express Worldwide (Thailand).
As TNT yesterday kicked off a new dedicated B747-400ER freighter service between Hong Kong and Europe, it reflected its commitment to investing and growing in Asia.
James McCormac, regional managing director of TNT Asia Pacific, said that it was well-placed to capitalise on strong trading links between the two regions with its integrated air and road delivery network in Asia and Europe.
The new aircraft will not only serve customers in South China, but also in neighbouring countries like Vietnam, Thailand, the Philippines and Taiwan. TNT will now be operating two dedicated freighter aircraft, providing freight and express delivery services between Europe and Asia.
The B747-400ER, which provides non-stop flights, operates between Hong Kong and TNT's European air hub in Liege, Belgium. The existing one - B747-400ERF - will travel between Europe and Shanghai via Hong Kong. The two aircraft are capable of carrying up to 110 tonnes with the lowest tonne/mile cost offering. Currently, TNT has a fleet of about 40 aircraft.
"The freighter from Hong Kong would ensure our customers, especially those in hi-tech communications, electronics and fashion industries, can become more competitive due to faster factory-to-market lead times and increasing inventory management efficiency," said McCormac.
He added: "Our continuous investment in Asia clearly demonstrates TNT's long-term confidence in the region."
TNT Asia Road Network recently expanded into Cambodia. The network now links 127 cities across six countries - from Singapore to China - and stretches across more than 7,500 kilometres.
PARENTS OF PHUKET CRASH VICTIMS WARN ABOUT AIRLINES
The parents of two Britons who died in a plane crash in Thailand warned other travellers on Wednesday of the dangers of flying on airlines blacklisted in Europe.
Alex Collins and Bethan Jones, both 22, were killed when a plane operated by budget airline One-Two-Go crashed on approach to landing in Phuket exactly two years ago, killing 90 passengers and crew.
In a joint anniversary statement, Jean and Steve Jones and Margaret and Richard Collins said: "No parent should ever have to go through the nightmare of losing a child in such a devastating way.
"We firmly believe this accident was preventable. The European Commission absolutely did the right thing in naming and shaming One-Two-Go Airlines," they added.
The European Commission, the EU's executive arm, added One-Two-Go to its blacklist of airlines banned from the 27-nation EU after the crash, although it has since been removed.
But the parents of Collins and Jones said others should be made aware of the dangers of blacklisted airlines.
"Our message to families is very clear: at all costs do not fly on any airline that has been on the EU blacklist, or is associated with an airline that has been named or shamed.
"Very few people are aware of this EU blacklist and we want to raise awareness of its imporatance, and the fact that it has, and will save lives.
The EU blacklist is dominated by African airlines, but also includes a few in Asia and former Soviet states.
Alex Collins and Bethan Jones, both 22, were killed when a plane operated by budget airline One-Two-Go crashed on approach to landing in Phuket exactly two years ago, killing 90 passengers and crew.
In a joint anniversary statement, Jean and Steve Jones and Margaret and Richard Collins said: "No parent should ever have to go through the nightmare of losing a child in such a devastating way.
"We firmly believe this accident was preventable. The European Commission absolutely did the right thing in naming and shaming One-Two-Go Airlines," they added.
The European Commission, the EU's executive arm, added One-Two-Go to its blacklist of airlines banned from the 27-nation EU after the crash, although it has since been removed.
But the parents of Collins and Jones said others should be made aware of the dangers of blacklisted airlines.
"Our message to families is very clear: at all costs do not fly on any airline that has been on the EU blacklist, or is associated with an airline that has been named or shamed.
"Very few people are aware of this EU blacklist and we want to raise awareness of its imporatance, and the fact that it has, and will save lives.
The EU blacklist is dominated by African airlines, but also includes a few in Asia and former Soviet states.
Wednesday, September 16, 2009
JAL to slash 6,800 jobs, pursue tie-up
Japan Airlines (JAL) said yesterday it would slash 6,800 jobs and pursue a tie-up with a foreign carrier in a bid to return to profit in the face of severe turbulence unleashed by the global recession.
The job cuts, which will shrink JAL's workforce by 14%, are part of an emergency restructuring plan being prepared by Asia's largest carrier, which is seeking financial aid from the government.
"The personnel reduction cannot wait," president Haruka Nishimatsu told reporters after briefing a governmentappointed panel on the planned revamp.
"The world is changing, and we have to adjust our size. It's easy to expand,but it's extremely difficult to downsize,"he said.
JAL, which lost more than $1 billion in the April-June quarter, has already slashed thousands of jobs in recent years.
Nishimatsu said JAL aimed to seal a tie-up with an overseas carrier by midOctober, without naming any potential partners.
According to local media, Delta Air Lines and American Airlines' parent company, as well as Korean Air, are considering taking a stake in JAL. European carrier Air France-KLM is also seen as a possible partner.
Delta is part of the SkyTeam global airline alliance, while JAL and American Airlines belong to the rival Oneworld grouping.
Nishimatsu told the government panel the three pillars of JAL's recovery plan were a drastic cut to its route network,a review of personnel costs and a capital tie-up, a Transport Ministry official said.
The Nikkei business daily reported over the weekend that JAL aimed to raise around 250 billion yen ($2.7 billion)by March next year by taking out loans and selling new shares and other assets.
The Japanese airline already announced last month a drastic reduction in flight services as it braces for a second straight year in the red, hit by the global economic downturn and swine flu fears.
Industry experts said the downsizing could give JAL some breathing space but they would not cure all its ills.
"Of course, cuts to unprofitable routes and personnel are necessary, but they won't solve JAL's recurring problems,"said Makoto Murayama, a transport analyst at Nomura Securities.
He said it was imperative for the com-pany to reduce the burden of its generous pensions payments to its retired workers.
JAL has forecast a net loss of 63 billion yen in the year to March 2010, after a 63.2-billion-yen deficit last year.
It has had a troubled record since its 1987 privatisation and a complex merger with domestic carrier Japan Air Systems,which was finally completed in 2004 after several years of negotiations and integration difficulties.
But "JAL is still an attractive partner for its competitors," said Osuke Itazaki,a transport analyst at Credit Suisse."The chances of a revival are still high if it can succeed in its streamlining efforts."
Prospects of JAL securing more state aid from the government have been clouded by a change of power in Japan,with a new centre-left government seen as less business-friendly than the outgoing conservatives.
"I don't think there will be a drastic change in the scheme under the new administration, but it is still too early to predict," said Itazaki.
Some lawmakers of the newly victorious Democratic Party signalled concern about the prospect of additional government support for JAL.
The job cuts, which will shrink JAL's workforce by 14%, are part of an emergency restructuring plan being prepared by Asia's largest carrier, which is seeking financial aid from the government.
"The personnel reduction cannot wait," president Haruka Nishimatsu told reporters after briefing a governmentappointed panel on the planned revamp.
"The world is changing, and we have to adjust our size. It's easy to expand,but it's extremely difficult to downsize,"he said.
JAL, which lost more than $1 billion in the April-June quarter, has already slashed thousands of jobs in recent years.
Nishimatsu said JAL aimed to seal a tie-up with an overseas carrier by midOctober, without naming any potential partners.
According to local media, Delta Air Lines and American Airlines' parent company, as well as Korean Air, are considering taking a stake in JAL. European carrier Air France-KLM is also seen as a possible partner.
Delta is part of the SkyTeam global airline alliance, while JAL and American Airlines belong to the rival Oneworld grouping.
Nishimatsu told the government panel the three pillars of JAL's recovery plan were a drastic cut to its route network,a review of personnel costs and a capital tie-up, a Transport Ministry official said.
The Nikkei business daily reported over the weekend that JAL aimed to raise around 250 billion yen ($2.7 billion)by March next year by taking out loans and selling new shares and other assets.
The Japanese airline already announced last month a drastic reduction in flight services as it braces for a second straight year in the red, hit by the global economic downturn and swine flu fears.
Industry experts said the downsizing could give JAL some breathing space but they would not cure all its ills.
"Of course, cuts to unprofitable routes and personnel are necessary, but they won't solve JAL's recurring problems,"said Makoto Murayama, a transport analyst at Nomura Securities.
He said it was imperative for the com-pany to reduce the burden of its generous pensions payments to its retired workers.
JAL has forecast a net loss of 63 billion yen in the year to March 2010, after a 63.2-billion-yen deficit last year.
It has had a troubled record since its 1987 privatisation and a complex merger with domestic carrier Japan Air Systems,which was finally completed in 2004 after several years of negotiations and integration difficulties.
But "JAL is still an attractive partner for its competitors," said Osuke Itazaki,a transport analyst at Credit Suisse."The chances of a revival are still high if it can succeed in its streamlining efforts."
Prospects of JAL securing more state aid from the government have been clouded by a change of power in Japan,with a new centre-left government seen as less business-friendly than the outgoing conservatives.
"I don't think there will be a drastic change in the scheme under the new administration, but it is still too early to predict," said Itazaki.
Some lawmakers of the newly victorious Democratic Party signalled concern about the prospect of additional government support for JAL.
Monday, September 14, 2009
Vietnam opens parts plant
Fast-industrialising Vietnam opened its first aircraft parts plant yesterday, reflecting the country's "tremendous growth" as a regional manufacturing centre, officials said.
MHI Aerospace Vietnam, a subsidiary of Japan's Mitsubishi Heavy Industries,began operations in June and made its first delivery last month, the firm's president, Hirotaka Masuda, told a ceremony at the plant.
The company aims to produce wing flaps for 10 Boeing 737 passenger jets a month.
Standing beside a flap, Masuda said Mitsubishi Heavy scouted locations across Asia, but settled on Hanoi because of its political stability, abundant workforce and facilities at the Thang Long Industrial Park.
The park, near the city's international airport, is home to other major Japaneseowned firms.
Ralph Boyce, president of Boeing Southeast Asia, called the opening a milestone that "reflects tremendous growth of the manufacturing sector here and the burgeoning of technical expertise available in Vietnam."
The $7-million facility employs more than 50 people, many of whom watched the ceremony in their purple coveralls.
The workers received Japanese language training in Hanoi and 11-months of technical instruction in Japan, Masuda said.
"What we have emphasised is training," he added."We cannot afford even a small mistake," he said.
Phan Huu Thang, head of Vietnam's Foreign Investment Department, said he hoped for the factory's success "which will boost the development of this industry in Vietnam."
In a brief interview with Agence France-Presse, Masuda said the global financial and economic crisis "is not affecting our production."
The Japanese parent company has been producing 737 flaps since 1976 but expansion to Vietnam is part of an effort to shift some metal components assembly overseas,"where abundant human resources are available," a company statement said.
Mitsubishi Heavy's Japanese facilities,meanwhile,"will focus on high-valueadded operations," it said.
MHI Aerospace Vietnam, a subsidiary of Japan's Mitsubishi Heavy Industries,began operations in June and made its first delivery last month, the firm's president, Hirotaka Masuda, told a ceremony at the plant.
The company aims to produce wing flaps for 10 Boeing 737 passenger jets a month.
Standing beside a flap, Masuda said Mitsubishi Heavy scouted locations across Asia, but settled on Hanoi because of its political stability, abundant workforce and facilities at the Thang Long Industrial Park.
The park, near the city's international airport, is home to other major Japaneseowned firms.
Ralph Boyce, president of Boeing Southeast Asia, called the opening a milestone that "reflects tremendous growth of the manufacturing sector here and the burgeoning of technical expertise available in Vietnam."
The $7-million facility employs more than 50 people, many of whom watched the ceremony in their purple coveralls.
The workers received Japanese language training in Hanoi and 11-months of technical instruction in Japan, Masuda said.
"What we have emphasised is training," he added."We cannot afford even a small mistake," he said.
Phan Huu Thang, head of Vietnam's Foreign Investment Department, said he hoped for the factory's success "which will boost the development of this industry in Vietnam."
In a brief interview with Agence France-Presse, Masuda said the global financial and economic crisis "is not affecting our production."
The Japanese parent company has been producing 737 flaps since 1976 but expansion to Vietnam is part of an effort to shift some metal components assembly overseas,"where abundant human resources are available," a company statement said.
Mitsubishi Heavy's Japanese facilities,meanwhile,"will focus on high-valueadded operations," it said.
Sunday, September 13, 2009
American Airlines may invest in JAL
American Airlines is in talks to take a minority stake in Japan Airlines (JAL) and form a joint venture with the struggling airline, a source said, pitting it against a rival bid from Delta Airlines.
JAL, Asia's largest airline by revenues,lost about $1 billion last quarter and has been seeking investors to prop up its finances for a state-supervised overhaul likely to include heavy job cuts, a reduction in routes and asset sales.
American Airlines, a unit of AMR Corp,has held talks with JAL over several weeks on forming a joint venture under which the two would share revenues on flights
and offer business customers joint contracts, the source said.
The source, who has direct knowledge of the talks, spoke on condition of anonymity because the negotiations are not public.
JAL is also weighing an offer from Delta, a source told Reuters last week.According to Japanese media, Delta would inject up to 50 billion yen ($551 million) into JAL and wants a tie-up that would include code-sharing on international flights.
The proposed venture between American and JAL hinges on the enactment of an "open skies" agreement now being discussed by the Japanese and US governments which would allow for close cooperation on flight scheduling and sharing of profit.
"I'm not talking about hugs and kisses.I'm talking about economic value to Japan Airlines," the source said."What we've been talking about is actually expanding the relationship, not just maintaining it."
JAL and American have had a codesharing agreement for a decade and are both members of the Oneworld alliance,which pools frequent flyer incentive schemes. Other members of Oneworld are British Airways and Cathay Pacific Airways.
A JAL spokeswoman declined to comment on specific talks with other airlines,including media reports that Air FranceKLM may also look to invest in JAL.
"We are looking at a wide variety of measures, and that may include tie-ups with airlines," JAL's Sze Hunn Yap said.
American is keen to preventing JAL from forming a tie with Delta, which became the world's largest carrier when it bought Northwest Airlines last year and could use JAL to increase its international footprint.
Delta operates a hub at Narita airport but is without a Japanese partner. It could try to get JAL to defect from Oneworld for the SkyTeam alliance, which along with Delta includes Air France,Korean Air and Russia's Aeroflot.
In addition to the size of any capital injection, American Airlines will be pushing JAL executives to consider what they see as more compelling long-term economic benefits of joining hands with American as opposed to Delta.
These include less direct competition in Asia and a relationship that would be on a more equal footing, the source said, adding a senior executive would be in Tokyo this week to continue their discussions with JAL."Delta, now that they've hooked up with Northwest ...have significant hub operations here in Narita. So the question for JAL is would it end up being a junior partner to Delta," the source said.
JAL is headed for its second straight annual loss in its year to March 2010,hit by the global economic downturn and heavy fixed costs. It is due to submit a restructuring plan this month, a condition of a 100-billionyen state-backed credit line secured in June. The airline is also considering raising an additional 250 billion yen by March to help fund restructuring,the Nikkei business daily reported yesterday. That would include about 100 billion yen through an issue of new shares, the paper said.
JAL also plans to ask aircraft makers, trading houses, investment funds and the Development Bank of Japan to buy shares, the Nikkei said.
JAL, Asia's largest airline by revenues,lost about $1 billion last quarter and has been seeking investors to prop up its finances for a state-supervised overhaul likely to include heavy job cuts, a reduction in routes and asset sales.
American Airlines, a unit of AMR Corp,has held talks with JAL over several weeks on forming a joint venture under which the two would share revenues on flights
and offer business customers joint contracts, the source said.
The source, who has direct knowledge of the talks, spoke on condition of anonymity because the negotiations are not public.
JAL is also weighing an offer from Delta, a source told Reuters last week.According to Japanese media, Delta would inject up to 50 billion yen ($551 million) into JAL and wants a tie-up that would include code-sharing on international flights.
The proposed venture between American and JAL hinges on the enactment of an "open skies" agreement now being discussed by the Japanese and US governments which would allow for close cooperation on flight scheduling and sharing of profit.
"I'm not talking about hugs and kisses.I'm talking about economic value to Japan Airlines," the source said."What we've been talking about is actually expanding the relationship, not just maintaining it."
JAL and American have had a codesharing agreement for a decade and are both members of the Oneworld alliance,which pools frequent flyer incentive schemes. Other members of Oneworld are British Airways and Cathay Pacific Airways.
A JAL spokeswoman declined to comment on specific talks with other airlines,including media reports that Air FranceKLM may also look to invest in JAL.
"We are looking at a wide variety of measures, and that may include tie-ups with airlines," JAL's Sze Hunn Yap said.
American is keen to preventing JAL from forming a tie with Delta, which became the world's largest carrier when it bought Northwest Airlines last year and could use JAL to increase its international footprint.
Delta operates a hub at Narita airport but is without a Japanese partner. It could try to get JAL to defect from Oneworld for the SkyTeam alliance, which along with Delta includes Air France,Korean Air and Russia's Aeroflot.
In addition to the size of any capital injection, American Airlines will be pushing JAL executives to consider what they see as more compelling long-term economic benefits of joining hands with American as opposed to Delta.
These include less direct competition in Asia and a relationship that would be on a more equal footing, the source said, adding a senior executive would be in Tokyo this week to continue their discussions with JAL."Delta, now that they've hooked up with Northwest ...have significant hub operations here in Narita. So the question for JAL is would it end up being a junior partner to Delta," the source said.
JAL is headed for its second straight annual loss in its year to March 2010,hit by the global economic downturn and heavy fixed costs. It is due to submit a restructuring plan this month, a condition of a 100-billionyen state-backed credit line secured in June. The airline is also considering raising an additional 250 billion yen by March to help fund restructuring,the Nikkei business daily reported yesterday. That would include about 100 billion yen through an issue of new shares, the paper said.
JAL also plans to ask aircraft makers, trading houses, investment funds and the Development Bank of Japan to buy shares, the Nikkei said.
Saturday, September 12, 2009
MHI picks aluminium, not carbon, for jet
Mitsubishi Heavy Industries Ltd, building an aircraft to rival Bombardier Inc and Empresa Brasileira de Aeronautica SA in the regional market, scrapped plans for carbonfibre wings and will use aluminium instead.
"The aircraft maker also plans to offer a third variant of the plane with 100 seats, beyond the 78- and 92-seater models already planned," the company said in its September newsletter.
Mitsubishi, which builds the carbonfibre wings for Boeing Cos 787 Dreamliner, said design work showed composites would not offer the anticipated weight reduction because more material would be needed to strengthen the structures.
Boeing and Airbus SAS have turned to light-weight composites for their latest models, the 787 and the A350, to help airlines save on fuel. The 787, a widebody plane that will also have a composite fuselage, will be 21/2 years late when it enters service in 2010, partly because of difficulties with design and manufacturing. The latest delay was to allow engineers to reinforce sections along the wing where the composite layers had separated in ground stress tests.
Mitsubishi's updated design "will feature an aluminium wing box, which will make it easier to manufacture the optimal wing structure," the company said in the newsletter. Wing boxes are the sections under the fuselage that hold the wings together.
"Mitsubishi is switching to aluminium because it discovered that the weight savings in using composites on widebody planes arent matched on smaller models," spokesman Mick Corliss said in an e-mail responding to questions.Parts of the wing would have to be reinforced if composites were used, adding weight, he said.
"Using aluminium for the wing box will also allow the company to optimise that component on its entire family of regional jets more easily," Corliss said.
Mitsubishi Aircraft president Hideo Egawa said at a news conference on Thursday that the planes delivery date has now been pushed back by several months to early 2014 from 2013.
Boeing and Airbus, which are both considering building new narrow-body models, currently offer planes starting at about 110 seats.
"The aircraft maker also plans to offer a third variant of the plane with 100 seats, beyond the 78- and 92-seater models already planned," the company said in its September newsletter.
Mitsubishi, which builds the carbonfibre wings for Boeing Cos 787 Dreamliner, said design work showed composites would not offer the anticipated weight reduction because more material would be needed to strengthen the structures.
Boeing and Airbus SAS have turned to light-weight composites for their latest models, the 787 and the A350, to help airlines save on fuel. The 787, a widebody plane that will also have a composite fuselage, will be 21/2 years late when it enters service in 2010, partly because of difficulties with design and manufacturing. The latest delay was to allow engineers to reinforce sections along the wing where the composite layers had separated in ground stress tests.
Mitsubishi's updated design "will feature an aluminium wing box, which will make it easier to manufacture the optimal wing structure," the company said in the newsletter. Wing boxes are the sections under the fuselage that hold the wings together.
"Mitsubishi is switching to aluminium because it discovered that the weight savings in using composites on widebody planes arent matched on smaller models," spokesman Mick Corliss said in an e-mail responding to questions.Parts of the wing would have to be reinforced if composites were used, adding weight, he said.
"Using aluminium for the wing box will also allow the company to optimise that component on its entire family of regional jets more easily," Corliss said.
Mitsubishi Aircraft president Hideo Egawa said at a news conference on Thursday that the planes delivery date has now been pushed back by several months to early 2014 from 2013.
Boeing and Airbus, which are both considering building new narrow-body models, currently offer planes starting at about 110 seats.
Friday, September 11, 2009
HEAD OF AIRPORT SIEGE PROBE CHANGED
Outgoing national police chief General Patcharawat Wongsuwan signed an order just before he stepped down to change the head of the police probe into the yellow shirts' seizure of Suvarnabhumi Airport late last year.
The order was signed two days after the National Anti-Corruption Commission (NACC) found grounds for criminal and disciplinary action against Patcharawat over his role in the crackdown on an anti-government mob outside Parliament on October 7.
Questions have been raised as to whether it was legal for the police chief to sign such an order after he was indicted by the NACC.
Some legal experts said Patcharawat should have stood down from his duties immediately.
In the order, Patcharawat replaced Pol Lt-General Wut Phuavej with Pol Lt-General Somyos Phumphanmuang - another assistant police chief - as head of the inquiry team.
The move took effect from Wednesday.
Wut was seen as siding with the People's Alliance for Democracy (PAD). He took to the PAD stage and defended the yellow shirts in front of the Royal Thai Police Club last July when the PAD voiced upset at being charged with terrorism for their mass protest at the new airport.
Somyos is close to Newin Chidchob, the de facto leader of Bhum Jai Thai Party, and Vichai Raksriaksorn, owner of King Power, which runs the "duty free" outlet at airport.
Somyos has said he is ready to take up the task as soon as he gets the order. He vowed be neutral and handle the case with transparency.
The order was signed two days after the National Anti-Corruption Commission (NACC) found grounds for criminal and disciplinary action against Patcharawat over his role in the crackdown on an anti-government mob outside Parliament on October 7.
Questions have been raised as to whether it was legal for the police chief to sign such an order after he was indicted by the NACC.
Some legal experts said Patcharawat should have stood down from his duties immediately.
In the order, Patcharawat replaced Pol Lt-General Wut Phuavej with Pol Lt-General Somyos Phumphanmuang - another assistant police chief - as head of the inquiry team.
The move took effect from Wednesday.
Wut was seen as siding with the People's Alliance for Democracy (PAD). He took to the PAD stage and defended the yellow shirts in front of the Royal Thai Police Club last July when the PAD voiced upset at being charged with terrorism for their mass protest at the new airport.
Somyos is close to Newin Chidchob, the de facto leader of Bhum Jai Thai Party, and Vichai Raksriaksorn, owner of King Power, which runs the "duty free" outlet at airport.
Somyos has said he is ready to take up the task as soon as he gets the order. He vowed be neutral and handle the case with transparency.
Wednesday, September 9, 2009
Direct Saudi flights elusive
Still holding a grudge against Thailand over the gems scandal 20 years ago,Saudi Arabia has frowned on Thailand's renewed bid to reinstate regular direct flight between the two countries.
Riyadh made its position clear when a team of Thai Airways International executives went to Saudi Arabia recently for talks about resuming non-stop flights between Bangkok and Jeddah.
Technically, THAI can fly to Saudi Arabia based on the bilateral air services agreement concluded five years ago,which allows the designated national airlines to each operate up to nine flights a week between the two countries.
The THAI team sensed an unspoken but clear disapproval for its bid due to Saudi authorities' continued dissatisfaction over Thai authorities' handling of the 1989 jewellery theft, according to an industry source.
Saudi Arabia refuses to resume normal relations with Thailand though many of the culprits have been prosecuted.
The issue began when Kriangkrai Techamong, a Thai cleaner, stole jewellery and valuables worth 500 million baht from the palace of Prince Faisal and escaped to his Lampang home.
Thai police retrieved most of the stolen valuables and returned them to Saudi Arabia. However, the Saudi palace found the main piece of jewellery, the "Blue Diamond", was fake.
"There are still a lot of questions left unanswered by Thai authorities and as long as these questions are not addressed,don't expect them to normalise the relationship, especially economically with Thailand," the source noted.
THAI now realises that it is better off not trying to re-establish service in spite of promising traffic potential.
And even if it insisted on using technical rights to operate flights, the ensuing problems may not be worth the effort,the source explained.
Before the talks, the flag carrier was keen to operate four to five flights a week between Bangkok and Jeddah using the wide-bodied Airbus A330-300s.
Jeddah is the principal gateway to Mecca, Islam's holiest city, which ablebodied Muslims are required to visit at least once in their lifetime.
The bulk of potential traffic on the route, up to 80%, are Muslims from southern Thailand, Indochina and China making the Hajj pilgrimage and conducting other religious activities year-round.
About 13,000 Thai pilgrims, mostly from the southern region, travel to Mecca each year. Muslims constitute 8-10% of Thailand's population of 67 million.
However, THAI has been allowed to a limited number of flights between Thailand and Saudi Arabia on a chartered basis mainly for pilgrims to Mecca.
During the two-week Hajj that starts on Oct 20, THAI will operate 14 flights carrying 3,000 people to Medina airport close to Mecca, according to sources.
Riyadh made its position clear when a team of Thai Airways International executives went to Saudi Arabia recently for talks about resuming non-stop flights between Bangkok and Jeddah.
Technically, THAI can fly to Saudi Arabia based on the bilateral air services agreement concluded five years ago,which allows the designated national airlines to each operate up to nine flights a week between the two countries.
The THAI team sensed an unspoken but clear disapproval for its bid due to Saudi authorities' continued dissatisfaction over Thai authorities' handling of the 1989 jewellery theft, according to an industry source.
Saudi Arabia refuses to resume normal relations with Thailand though many of the culprits have been prosecuted.
The issue began when Kriangkrai Techamong, a Thai cleaner, stole jewellery and valuables worth 500 million baht from the palace of Prince Faisal and escaped to his Lampang home.
Thai police retrieved most of the stolen valuables and returned them to Saudi Arabia. However, the Saudi palace found the main piece of jewellery, the "Blue Diamond", was fake.
"There are still a lot of questions left unanswered by Thai authorities and as long as these questions are not addressed,don't expect them to normalise the relationship, especially economically with Thailand," the source noted.
THAI now realises that it is better off not trying to re-establish service in spite of promising traffic potential.
And even if it insisted on using technical rights to operate flights, the ensuing problems may not be worth the effort,the source explained.
Before the talks, the flag carrier was keen to operate four to five flights a week between Bangkok and Jeddah using the wide-bodied Airbus A330-300s.
Jeddah is the principal gateway to Mecca, Islam's holiest city, which ablebodied Muslims are required to visit at least once in their lifetime.
The bulk of potential traffic on the route, up to 80%, are Muslims from southern Thailand, Indochina and China making the Hajj pilgrimage and conducting other religious activities year-round.
About 13,000 Thai pilgrims, mostly from the southern region, travel to Mecca each year. Muslims constitute 8-10% of Thailand's population of 67 million.
However, THAI has been allowed to a limited number of flights between Thailand and Saudi Arabia on a chartered basis mainly for pilgrims to Mecca.
During the two-week Hajj that starts on Oct 20, THAI will operate 14 flights carrying 3,000 people to Medina airport close to Mecca, according to sources.
Tuesday, September 8, 2009
China displays model of first large passenger jet
China showcased its newest and biggest commercial plane yesterday - a jetliner with as many as 200 seats that could boost the country's fledgling aviation industry to compete with Western rivals like Boeing Co and Airbus SAS.
The single-aisle C919 plane is scheduled to take its maiden voyage in 2014 before being delivered to buyers in 2016,according to Wang Wenbin, an official with the plane's manufacturer, statebacked Commercial Aircraft Corp of China.
Work on the prototype began last week, he said. A car-sized mockup of the jet was on display yesterday at an Asian air show in Hong Kong.
The project is a major first step by China toward developing homegrown commercial planes, along with the research and technology capabilities, for its fast-growing domestic market rather than relying on foreign companies. It would also pave the way for international expansion.
Because China's nascent commercial aerospace industry still lacks expertise,the C919 initially will be outfitted with engines and other parts from foreign companies.
"The civil aviation industry is just starting to boom," said Wang, COMAC's assistant general manager."Although we have ... experience on civil aircraft manufacturing, we still have a long way to go in comparison with those aviation industry superpowers such as the US."
The C919 is designed for short- to medium-range hauls up to 5,555 kilometres, and can seat as many as 200 depending on the configuration. According to state media, the first nine in the jet's name was chosen because it suggests eternity in Chinese culture, with the 19 referring to 190 seats the plane might accommodate. C stands for COMAC.
Chinese aviation executives make no secret about their global ambitions.
"C919 comes after Airbus and Boeing,so you will have ABC in the aviation industry," the plane's chief designer Wu Guanghui told state media earlier.
The single-aisle C919 plane is scheduled to take its maiden voyage in 2014 before being delivered to buyers in 2016,according to Wang Wenbin, an official with the plane's manufacturer, statebacked Commercial Aircraft Corp of China.
Work on the prototype began last week, he said. A car-sized mockup of the jet was on display yesterday at an Asian air show in Hong Kong.
The project is a major first step by China toward developing homegrown commercial planes, along with the research and technology capabilities, for its fast-growing domestic market rather than relying on foreign companies. It would also pave the way for international expansion.
Because China's nascent commercial aerospace industry still lacks expertise,the C919 initially will be outfitted with engines and other parts from foreign companies.
"The civil aviation industry is just starting to boom," said Wang, COMAC's assistant general manager."Although we have ... experience on civil aircraft manufacturing, we still have a long way to go in comparison with those aviation industry superpowers such as the US."
The C919 is designed for short- to medium-range hauls up to 5,555 kilometres, and can seat as many as 200 depending on the configuration. According to state media, the first nine in the jet's name was chosen because it suggests eternity in Chinese culture, with the 19 referring to 190 seats the plane might accommodate. C stands for COMAC.
Chinese aviation executives make no secret about their global ambitions.
"C919 comes after Airbus and Boeing,so you will have ABC in the aviation industry," the plane's chief designer Wu Guanghui told state media earlier.
Sunday, September 6, 2009
AIRPORT LINK TO START ON KING'S BIRTHDAY
The long-delayed Airport Rail Link, to and form Suvarnabhumi Airport, will start with free service to the public from December 5, to coincide with the birthday celebrations for His Majesty the King.
Governor of the State Railway of Thailand (SRT), Yuthana Tupcharoen, said people interested in free rides on December 5 may apply for tickets from October 1 at either the Airport Rail Link office or SRT head-quarters.
Test runs of the system have been conducted since February by Siemens, the manufacturer and installer of the rail system, and no problems have been found. Independent engineers will do safety inspections of for the next three months and if no problems are found, the rail link will be set to start.
The SRT board has hired Deutsche Bahn International of Germany to train Airport Rail Link staff, in a Bt85-million deal.
The 28-km rail link connects Suvarnabhumi International Airport in Samut Prakan province to the City Air Terminal in Bangkok's Makkasan area.
The Airport Rail Link is owned and will be operated by SRT, through a subsidiary company, which will administer the overall operations.
According to a preliminary study, the fare for an express trip will be Bt150 per person, while fares for City Line commuter trips, will vary from Bt30-50 per passenger.
Transport for airport express ridders and local commuters will run on the same track with the same equipment, but with a staggered schedule.
The premium-fare express services will run on the hour between Suvarnabhumi Airport and City Air Terminal, while the City Line service will stop at six local stations along the route.
The express service will cost Bt150 and run on the hour; commuters will pay Bt30-50 for trips to six local stations, from December 5.
Governor of the State Railway of Thailand (SRT), Yuthana Tupcharoen, said people interested in free rides on December 5 may apply for tickets from October 1 at either the Airport Rail Link office or SRT head-quarters.
Test runs of the system have been conducted since February by Siemens, the manufacturer and installer of the rail system, and no problems have been found. Independent engineers will do safety inspections of for the next three months and if no problems are found, the rail link will be set to start.
The SRT board has hired Deutsche Bahn International of Germany to train Airport Rail Link staff, in a Bt85-million deal.
The 28-km rail link connects Suvarnabhumi International Airport in Samut Prakan province to the City Air Terminal in Bangkok's Makkasan area.
The Airport Rail Link is owned and will be operated by SRT, through a subsidiary company, which will administer the overall operations.
According to a preliminary study, the fare for an express trip will be Bt150 per person, while fares for City Line commuter trips, will vary from Bt30-50 per passenger.
Transport for airport express ridders and local commuters will run on the same track with the same equipment, but with a staggered schedule.
The premium-fare express services will run on the hour between Suvarnabhumi Airport and City Air Terminal, while the City Line service will stop at six local stations along the route.
The express service will cost Bt150 and run on the hour; commuters will pay Bt30-50 for trips to six local stations, from December 5.
Thursday, September 3, 2009
Trolley deal fast-tracked
The bidding terms for the supply of trolleys to Suvarnabhumi airport are expected to be finalised in two weeks,Airports of Thailand president Serirat Prasutanond says.
Approval for the terms of reference had been sought from the AoT board so the trolleys could be secured through a special method which would speed up the process.
The supplier should be selected and the trolleys will begin to enter service by no later than January, Mr Serirat said.
He said airport users had complained about the ageing, faulty trolleys at the airport.
He said about 3,200 trolleys were the focus of the complaints.
Mr Serirat said they were not working properly because they were brought in from other airports pending the supply of the new trolleys.
The trolleys were obtained from Don Mueang airport and some regional airports after the AoT tore up its agreement with Thai Airport Ground Services following a contractual dispute.
Approval for the terms of reference had been sought from the AoT board so the trolleys could be secured through a special method which would speed up the process.
The supplier should be selected and the trolleys will begin to enter service by no later than January, Mr Serirat said.
He said airport users had complained about the ageing, faulty trolleys at the airport.
He said about 3,200 trolleys were the focus of the complaints.
Mr Serirat said they were not working properly because they were brought in from other airports pending the supply of the new trolleys.
The trolleys were obtained from Don Mueang airport and some regional airports after the AoT tore up its agreement with Thai Airport Ground Services following a contractual dispute.
Wednesday, September 2, 2009
Boeing replaces Dreamliner programme chief
Boeing Co, which has experienced a series of embarrassing and costly delays on the long-awaited 787 Dreamliner, said on Monday that Scott Carson, the head of its commercial airplanes division,"is retiring and will be replaced by Jim Albaugh, effective on Tuesday."
The news comes four days after Boeing said it would finally make the first flight of the 787 by the end of this year. Boeing is the world's top aircraft maker followed by EADS unit Airbus.
The first test flight has been delayed repeatedly because of production problems and a two-month labour strike,hurting Boeing's credibility as it grapples with the commercial aerospace slump.At least one expert said the management change did not necessarily improve Boeing's fortunes.
"Where we are surprised is in Boeing's choice of successor, given Jim Albaugh's lack of experience in commercial aerospace, and the less than perfect track record that IDS has had in programme execution and wins over the last couple of years under his leadership," said Rob Stallard, analyst with Macquarie Securities."We are not convinced that this move improves the situation at BCA (Boeing Commercial Airplanes)."
He noted that Albaugh was taking on several pressing issues, the first flight of the 787, and how to proceed with the 737 programme given delivery deferrals over the last 12 months.
Carson,63, who has led the unit since 2006, would work on transition and other projects till year end, the company said.Speaking on a media conference call,Boeing chief executive Jim McNerney said Carson made the decision to step down.
"The decision to retire was Scott's,"McNerney said."It was based on many factors, the most important of which was resetting the 787 schedule last week and giving his successor a clear path forward on the programme."
Albaugh,59, has headed Boeing's Integrated Defense Systems (IDS) since 2002, overseeing some of Boeing's largest systems integration contracts, including the $160 billion Future Combat Systems modernisation programme and the multibillion-dollar ground-based segment of missile defence.
"Jim is a seasoned and effective aerospace executive with substantial experience leading and integrating technically complex businesses and programs from initial development through full production and delivery," McNerney said in a statement.
McNerney said Albaugh already has "working knowledge" of BCA and the 787 programme from his role on the senior leadership team at Boeing.
Some analysts had questioned Al-baugh's future after the company lost several large defence competitions in recent years and saw its biggest programmes cut by Defence Secretary Robert Gates as part of a sweeping overhaul of Pentagon procurement.
A Boeing spokesman said most IDS development and production programmes under Albaugh's watch were on time and on budget and earned solid earnings for Boeing.
Chicago-based Boeing said Carson and Albaugh would work together to ensure a smooth transition of customer and other business relationships and that Carson would also assist on special projects for the company through year end.
The news comes four days after Boeing said it would finally make the first flight of the 787 by the end of this year. Boeing is the world's top aircraft maker followed by EADS unit Airbus.
The first test flight has been delayed repeatedly because of production problems and a two-month labour strike,hurting Boeing's credibility as it grapples with the commercial aerospace slump.At least one expert said the management change did not necessarily improve Boeing's fortunes.
"Where we are surprised is in Boeing's choice of successor, given Jim Albaugh's lack of experience in commercial aerospace, and the less than perfect track record that IDS has had in programme execution and wins over the last couple of years under his leadership," said Rob Stallard, analyst with Macquarie Securities."We are not convinced that this move improves the situation at BCA (Boeing Commercial Airplanes)."
He noted that Albaugh was taking on several pressing issues, the first flight of the 787, and how to proceed with the 737 programme given delivery deferrals over the last 12 months.
Carson,63, who has led the unit since 2006, would work on transition and other projects till year end, the company said.Speaking on a media conference call,Boeing chief executive Jim McNerney said Carson made the decision to step down.
"The decision to retire was Scott's,"McNerney said."It was based on many factors, the most important of which was resetting the 787 schedule last week and giving his successor a clear path forward on the programme."
Albaugh,59, has headed Boeing's Integrated Defense Systems (IDS) since 2002, overseeing some of Boeing's largest systems integration contracts, including the $160 billion Future Combat Systems modernisation programme and the multibillion-dollar ground-based segment of missile defence.
"Jim is a seasoned and effective aerospace executive with substantial experience leading and integrating technically complex businesses and programs from initial development through full production and delivery," McNerney said in a statement.
McNerney said Albaugh already has "working knowledge" of BCA and the 787 programme from his role on the senior leadership team at Boeing.
Some analysts had questioned Al-baugh's future after the company lost several large defence competitions in recent years and saw its biggest programmes cut by Defence Secretary Robert Gates as part of a sweeping overhaul of Pentagon procurement.
A Boeing spokesman said most IDS development and production programmes under Albaugh's watch were on time and on budget and earned solid earnings for Boeing.
Chicago-based Boeing said Carson and Albaugh would work together to ensure a smooth transition of customer and other business relationships and that Carson would also assist on special projects for the company through year end.
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