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Aviation News November 2005

Canada sets up aircraft financing plan

OTTAWA, Nov 25 (Reuters) - Canada's minority Liberal government said on Friday it would establish an Aircraft Sales Financing Framework to support the construction of Canadian-made planes. "We cannot take ad hoc decisions every time a company comes up with a major project," Transport Minister Jean Lapierre told reporters in Montreal. It was not immediately clear how this program would differ from credit financing offered by a government export agency or how much money would be earmarked. Ottawa said it would create an aerospace and defense technology development program through which it would contribute to the costs of industry-led research and development. Montreal-based Bombardier Inc. decided in mid-March to develop its C Series 110- to 135-seat jet for mainline airlines rather than the regional carriers it normally supplies. Brazil's Embraer SA has a similar-sized jet in the works.

US and EU reached tentative deal on 'Open Skies'

WASHINGTON, Nov. 18 The United States and the European Union reached a tentative deal on Friday to dramatically expand aviation service and boost competition on both sides of the Atlantic. Negotiators made substantial progress in the U.S. State Department-led talks this week on the breakthrough pact, which must be reviewed by EU transport ministers, who meet next month. Europe is conditioning approval on a crucial side issue -- the U.S. proposal to ease some limits on foreign investment in American carriers. European negotiators first want to ensure the Transportation Department plan is finalized and that it would facilitate greater investment opportunities and wider access to important travel markets.

Daniel Calleja, the European Commission director general for aviation, called the "open skies" agreement a "significant step" and said chances for approval in Europe were good, if the ownership question moves "in the right direction." The agreement has remained elusive for years and does not require U.S. congressional approval. Nevertheless, there has not been universal support among lawmakers, airlines and labor groups in the United States for further opening the trans-Atlantic market. The Bush administration said it plans to move forward carefully on Capitol Hill. If approved, the deal would eliminate remaining restrictions on service and routes between European and U.S. destinations. It would also effectively remove fiercely protected competition barriers to London's Heathrow airport, Europe's foremost gateway for international business travel. The agreement would not impose restrictions on the frequency of service, the type of aircraft used, or routes selected by airlines. But many large metropolitan airports, especially in the United States, are crowded and space is often tightly controlled for safety. The agreement would grant carriers clearance to apply to regulators for operating rights.

Fares could be set freely and carriers would be granted unlimited rights for service beyond the 25-member EU states and United States to points in third countries. "We want to open the gates for vigorous competition," said Sen. John Byerly, a senior State Department official and the lead U.S. negotiator. Negotiators for both sides came close last year to securing a broad-based deal to expand where airlines can fly in the trans-Atlantic market, but European ministers rejected it. The United States had liberalization agreements with most European countries before the European Union assumed authority for negotiating a universal agreement. The primary holdout has been Britain, which has been reluctant to give up more access to Heathrow. Currently, only two U.S. carriers - United Airlines and American Airlines can fly there, and only on a limited basis. 

British Airways, the dominant carrier at Heathrow, did not fully embrace prospects for liberalization. "Right now, the U.S. proposal falls short of the legislative solution that could have delivered a very real transformational change to the restrictive ownership and control rules," said Andrew Cahn, the director of government and industry affairs for British Airways. Virgin Atlantic [VA.UL] was also critical of the deal. The airline founded by British entrepreneur Richard Branson said Europe rejected last year's proposal for favoring the United States. "Nothing has fundamentally changed," Virgin Atlantic chief executive Steve Ridgway said in a statement. Earlier this month, the Bush administration transportation planners proposed to ease restrictions on overseas investment in U.S. airlines, giving foreign investors more input into marketing, routing and fleet planning. Seventy-Five members of the House of Representatives, including 22 Republicans, have written to Transportation Secretary Norman Mineta opposing the ownership change.

Boeing launches new 747-8 family

SEATTLE, Nov. 15 /PRNewswire-FirstCall/ -- The Boeing Company today officially launched the new Boeing 747-8 program, which includes the 747-8 Intercontinental passenger airplane and the 747-8 Freighter airplane. Cargolux, based in Luxembourg, has ordered 10 747-8 Freighters and will take delivery of the first 747-8F in third-quarter 2009. It also holds purchase rights for 10 additional airplanes. Cargolux currently operates an all-Boeing fleet of 13 747-400 freighters. Nippon Cargo Airlines, based in Japan, has ordered eight 747-8 Freighters and will receive its first airplane in fourth-quarter 2009. The airline also acquired options for six additional airplanes. Nippon Cargo currently operates 13 747 freighters and has six more 747-400Fs on order. Firm orders from the two launch customers are valued at approximately $5 billion at list prices.

"We are thrilled to have Cargolux and Nippon Cargo choose the new 747-8 and become the launch customers for this next generation of the proud and valuable 747 airplane family," said Alan Mulally, president and chief executive officer, Boeing Commercial Airplanes. "The 747-8 will use the technologies of the 787 Dreamliner to significantly increase the passenger and freighter capabilities of the 747 and offer greater fuel efficiency, improved operating economics, and be more friendly to the environment with reduced noise and emissions."

Both versions of the new 747 will feature GE's 787-technology GEnx engines, meet Stage 4 and QC2 noise requirements, have reduced emissions, offer lower trip costs and have an upgraded flight deck and an improved wing. "The 747-8 Freighter will be very important in allowing Nippon Cargo to take advantage of the high expected cargo market growth in Asia," said Takuro Uchiyama, president and CEO, Nippon Cargo Airlines. "In addition, the 747-8 Freighter will be the world's most efficient cargo airplane, which is a key attribute with today's high cost of fuel."

Ulrich Ogiermann, president and CEO, Cargolux Airlines, said, "The Boeing 747-400 Freighter has been a cornerstone of our success, and I have high expectations that the 747-8 Freighter will build on that success and expand our capabilities worldwide. The increased payload capacity and much improved efficiency will allow us to continue our expansion and maximize our profitability. Equally important to us and the communities where we operate is the new standard the 747-8 Freighter will set in noise reduction."

The 747-8 Intercontinental passenger airplane will be stretched 3.6 m (11.7 ft) compared to the 747-400 to accommodate 34 additional seats in a typical three-class configuration. The only jetliner in the 400- to 500-seat category, it will have a range of 14,815 km (8,000 nmi) and will feature the new Boeing Signature Interior. The Intercontinental will be quieter, produce fewer emissions, and achieve better fuel economy than any competing jetliner. It will offer 21 percent more lower-hold revenue cargo volume than the 747-400 and cost about 8 percent less per seat mile to operate. Compared to the A380, it will offer 22 percent lower trip costs.

The 747-8 Freighter will be 5.6 m (18.3 ft) longer than the 747-400 freighter. With a total payload capacity of 140 metric tonnes (154 tons), including tare weight, the 747-8F provides 16 percent more cargo revenue volume than the -400. The additional 117m(3) (4,124 ft(3)) from the longer fuselage offers space for four additional main-deck pallets, two additional lower-hold pallets and two additional lower-hold containers. Cargo can be loaded and unloaded on the 747-8F using both the nose and side doors for maximum speed and efficiency.

Compared to the A380, the 747-8F will offer 20 percent lower trip costs. In addition, the 747-8F will maintain the operational flexibility of today's 747 freighters, with good profit potential at less-than-full loads. The 747-8 Freighter complements the existing 747-400 freighter family, which is the air-cargo industry's standard. Both models accommodate 3.1-meter (10-foot) high pallets, providing operators with maximum flexibility.

The 747-8 also fits easily in today's aviation infrastructure, flying into more than 210 airports worldwide without additional, expensive infrastructure changes required. The 747 freighter family currently constitutes more than half of the world's total freighter capacity. Boeing freighters of all models comprise more than 90 percent of the total worldwide freighter lift. Boeing forecasts the need for about 900 airplanes -- passengers and freighters -- in the 400-plus-seat segment over the next 20 years. Boeing also forecasts that large widebody freighters (65 metric tons and above in capacity) will comprise 34 percent of the freighter market by 2024.

Canada and US widen 'Open Skies' agreement

MONTREAL, Nov 11 (Reuters) - Canada and the United States have widened their "Open Skies" agreement to allow airlines from each country to pick up passengers or cargo in the other and then fly on to a third. Ottawa and Washington said on Friday the amended agreement goes beyond a 1995 pact that eliminated most restrictions on air travel between Canada and the United States, but limited each country's ability to tap into the other's international markets.

Under the new rules a Canadian carrier will be able to pick up passengers or cargo in the United States and fly on to another country -- Mexico, perhaps, or somewhere in Europe. And U.S. airlines can pick up passengers or cargo in Canada and fly on to another country. But the widened Open Skies agreement does not allow for "cabotage," air traffic that begins and ends in one country by an air carrier of another country. "Open skies between the United States and Canada will mean better service at lower prices for the passengers and shippers of both countries," U.S. Transportation Secretary Norman Mineta said in a statement. 

Last year, some 18.6 million passengers flew nonstop between the United States and Canada, according to Transport Canada figures. Air Canada parent ACE Aviation Holdings Inc. said the pact will allow it to capitalize on its arrangements with other members of the Star Alliance airline group, especially for overseas markets. "Air Canada has long advocated the further liberalization of our shared skies so that we can better link our expanded North American network to our growing international network," said Robert Milton, chairman, president and chief executive at ACE Aviation.

Boeing 777-200LR sets new world record for distance

LONDON, Nov. 10 /PRNewswire-FirstCall/ -- Boeing  established a new world record for distance traveled nonstop by a commercial airplane when a Boeing 777-200LR Worldliner landed at London Heathrow Airport today. The 777- 200LR (Longer Range) flew 11,664 nautical miles (21,601 km) during its 22-hour 42-minute flight that left Hong Kong flying eastbound the evening of Nov. 9. The distance set by the 777-200LR is farther than any previous commercial jetliner has flown and exceeds a distance of more than halfway around the world.

"This record-setting distance flight exemplifies the pioneering aviation spirit that has made Boeing a leader in the aerospace industry," said Lars Andersen, vice president and program manager, 777 Program, Boeing Commercial Airplanes. "The 777 has been a leader in its market ever since it first went into service. The 777-200LR Worldliner continues that market leadership by offering unmatched capability that allows airlines to offer passengers nonstop routes to their destinations."

The 777-200LR left Hong Kong International Airport at 10:30 p.m. local time Nov. 9 and landed at London Heathrow Airport at approximately 1:30 p.m. GMT Nov. 10. The airplane traveled eastbound towards London, flying over the North Pacific Ocean, across North America, and then over the mid-north Atlantic Ocean en route to London."The performance of the 777-200LR during the record flight was exceptional," said Suzanna Darcy-Hennemann, the project pilot leader for the 777-200LR record flight. "It took the support of a great team of people to make this historic flight a success. I'm proud to be a part of that team."