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www.aerosociety.com February 2008

Tigers in the sky

DefenceProcurement trends in Asia-Pacific

Air transportRenaissance of the turboprop

Regional carriersProfile of Eastern Air

usatthe

SingaporeAirshow20

StandD100

The low-cost revolution in Asia

Comeands

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2008 sees the centenaryof British aviation soit seems a good timeto look forward at the

state and future ofaviation worldwidefor the next 100 years.

Following the hugely successful format

of previous years, Aerospace 2008 will

have a military day; a day dedicated to

technology and sustainability; and concludes

with a day on civil aviation. We are seeking

ministerial keynotes for each of the three

days and anticipate strong attendance and

support for the premier conference in the

prestigious Royal Aeronautical Society

annual events calendar.

22nd24th April 2008

Royal Aeronautical Society

No.4 Hamilton Place

London, W1J 7BQ, UK

For further registration information, sponsorship

opportunities and exhibition information;

Web: www.aerosociety.com/annual

Tel: +44 (0)20 7670 4345

Email: [email protected]

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O

T

he revitalised Singapore Air Show, with its exciting new exhibition site on the

Changi shoreline, reflects regional confidence as aerospace in the Asia-Pacific

market continues to grow even faster than the host nations ability to reclaim land

from the sea. In the booming business parks close to Changi can be found major new

aerospace facilities, not just marketing and spares support offices or major repair and

maintenance bases but, increasingly, local manufacturing of aircraft and components,aeroengines plus electronic and mechanical systems and research and development.

Rolls-Royce recently announced a major expansion of engine manufacturing in

Singapore and most leading international aerospace and defence companies are

already well established there, taking full advantage of the attractive opportunities for

future growth and profits. As a global communications hub with high local education

standards and, most importantly, political and economic stability, Singapore is proving

to be a winning combination for aerospace inward investment. Aerospace

manufacturing in China and India is growing at an even faster pace but for the present

this is underwritten by massive state subsidies. Criticism by Western interests is likely to

remain muted so long as there is such a competitive supply situation. Although it has

not yet delivered its first locally-assembled A320, China is championing its strategic

aim of competing with Boeing and Airbus head-on. Even if this is an unrealistic

aspiration, just one glance at current export sales to China shows what might be lost to

the West when that domestic market becomes more self-sufficient. As more aerospace

investment and production transfers eastwards, the task of trying to sustain aerospace

capabilities in Europe and the USA while remaining profitable will become even more

of a challenge. Global enterprise is undoubtedly the way forward but does skilled

employment, innovation and wealth creation also have to be exported? This issue looks

closer at civil and military prospects in the Asia-Pacific area. A full Singapore show

report will follow in an upcoming issue.

Editor Richard Gardner +44 (0)1252 515562([email protected])

Publications Manager Chris Male +44 (0)20 7670 4352([email protected])

Deputy Editor Tim Robinson +44 (0)20 7670 4353([email protected])

Features Editor Bill Read +44 (0)20 7670 4351([email protected])

Production Editor Wayne Davis +44 (0)20 7670 4354([email protected])

Assistant Bryan Cambray +44 (0)20 7670 4355

Unless specifically attributed, no material inAerospace Internationalshall be taken to represent the opinion of the RAeS.Reproduction of material used in this publication is not permitted without the written consent of the Editor.

Printed by Manor Creative, 7 and 8 Edison Road, Eastbourne, East Sussex BN23 6PT, UK. Distributed by Royal Mail.

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Oriental take-away

4News Roundup

16Fresh look for old favourite

20Tigers in the sky

24Flashpoints drive Asian force renewal

28Turning and burning

31Letters

32Special operator

Contents

Comment

CoverStory

Volume 35 Number 2 February 2008

www.aerosociety.com February 2008 Aerospace International 3

Vietnam Airways ATR 72 regional turboprop.

The Asia-Pacific air transport market is cur-

rently in a state of flux as traditional state-

owned carriers adjust to competition fromthe fast-growing low-cost sector.

Meanwhile, as fuel prices remain high, tur-

boprops are experiencing an unexpected

international revival among regional air

transport operators.

1908-2008 100 years of British aviationwww.aerosociety.com/2008

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4/36February 2008 Aerospace International www.aerosociety.com4O

NEWS Roundup

News Headlines

OpenSkies

breaks coverProject Lauren revealed as new BA transatlantic

ventureBill Read

Defence

projects slipDelays hit major Western defence programmes with

hard choices ahead

Richard Gardner

The knock-on effects of over-stretched defence budgets resulting

from mission-creep in Afghanistan,

combined with rising development

costs of new equipment, is starting

to have an impact on some of the

biggest Western defence pro-

grammes and many key projects are

facing renewed scrutiny. This may

lead to further delays to front-line

deliveries or, in some cases, a real

threat of cancellation.

In Europe, a potentially huge

increase in strategic airlift capacity is

due to be provided by the AirbusA400M but news reports suggest

deliveries may be put back another

year in an already seriously delayed

timescale with concern over costs

rising over budget predictions.

In the UK an expanding multi

billion hole in the defence budg-

et has led to even the most essential

programmes coming under review.

Top of the threatened list are two

65,000 ton aircraft carriers and their

JSF combat aircraft. Entry into

service has already been put back to

2014 and now this may slip to theend of the decade, with serious

implications for the UKs JSF pro-

gramme. Over four years since the

MoD nominated the A330 as the

winner of its future air tanker com-

petition there is still no order placed

and the RAF, once the programme

leader, is now behind Australia and

Saudi Arabia in the queue. If the

USAF selects the KC-30 (A330) the

wait may be even longer.

In Australia, a new Labour

administration has launched a major

defence review which is examiningthe procurement programme,

including the decision to buy a new

fleet of F-18 E/F Super Hornets as

well as the JSF. Further life-exten-

tion of the F-111 fleet and adoption

of the F-22 have been mentioned.

[email protected]

British Airways has announced

plans to open a new transatlantic

subsidiary business airline flying a

daily service from New York JFK

airport to either Brussels or Paris

Charles de Gaulle. To be calledOpenSkies, the new airline will

begin operations in June using a sin-

gle Boeing 757 from BAs fleet. The

aircraft will be refitted externally

with blended winglets and internally

to carry 82 passengers divided into

24 business class, 28 premium

economy and 30 economy seats. A

plan to make the new airline all

business class was shelved. After

the initial service is launched, BA

intends to expand OpenSkies to

other European cities including

Frankfurt, Milan, Madrid andAmsterdam. BA plans to add a sec-

ond 757 later this year with a fur-

ther four to join the fleet by the end

of 2009.

The name of the new airline

comes from the new US-EU agree-

ment liberalising air transport

between the US and Europe which

is due to come into force from 31

March. Under the Open Skies

agreement, carriers from either side

of the Atlantic will be allowed

access to any US or EU destination

provided that slots are available a move which could have a negative

effect on BAs existing transatlantic

routes from Heathrow.

The new airline has a number of

hurdles yet to overcome. BA pilots

are concerned that OpenSkies may

employ flight crew under more

flexible employment terms and

conditions to reduce costs which

might undermine existing agree-

ments. There are also concerns

that American Airlines, which is a

partner of BA in the Oneworld

airline alliance, may not take kindlyto the new competition.

OpenSkies has also yet to receive

an operating licence and certificate

from the US Department of

Transportation.

[email protected]

Dr Mark Pierotti has left Amiri Flight Abu Dhabi

to become coo of Al Jaber Aviation, a new AbuDhabi-based operation.

Appointed to a new post of executive director,

group sales, at ExecuJet Aviation is Andrew Hoy.

Gunilla Fransson is the new md for Saab

Communication.

David McMillan is now the director general of

Eurocontrol.

Joining Raytheon Technical Services as vp and

general counsel is John Mitnick.

John Weston has joined MB Aerospace Holdings

as non-executive chairman.

Germanwings has appointed Oliver Scheid as

head of pricing and revenue management with

Angelika Schwaff as manager of international

communications.

Mike Kurth has been appointed md of newly

formed Boeing Defence UK. Joining him at senior

management level are Jonathan Bailey and Brian

Morgan.

Roger Stokes, whose career with the MoD and

QinetiQ has spanned over 40 years, was awardedan OBE in the New Year's Honours List.

Iridium Satellite has appointed John Brunette as

its new chief legal and administrative officer.

Douglas Steenland, president and ceo of

Northwest Airlines, is now chairman of the Air

Transport Association.

John Smeaton, a baggage handler who tackled

terror suspects at Glasgow Airport, has been

awarded the Queen's Gallantry Medal.

Whos News

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NEWS Roundup

Airbus plant

bidders chosenEADS has announced that it is tosell off six Airbus plants in Europe:

Filton in the UK, Meaulte and Saint

Nazaire in France and Nordenham,

Varel and Augsburg in Germany.

Three companies, GKN, Latecoere

and MT Aerospace, were named as

preferred bidders.

Rolls cuts backTo reduce costs, Rolls-Royce is plan-

ning to cut up to 2,300 jobs among

managerial, professional and clerical

staff in the UK, US, Germany and

the Nordic countries. R-R said it

would try to make the cuts through

voluntary redundancies

Chinesemerger?China is reported to be intending to

merge its two aviation companies

AVIC I and AVIC II with the aim of

building a new large commercial air-

liner to compete with the Boeing

737 and Airbus A320. AVIC I iscurrently building Chinas new

ARJ-21 regional jet.

787 slips againAs Aerospace International goes to

press, news reports say that Boeing

may be facing a further three-

month delay in the development of

the 787 Dreamliner. If correct, that

would mean that Boeing would be

unable deliver any 787s to launch

customer ANA this year.

UK supplychain initiativeThe Society of British Aerospace

Companies (SBAC) has announced

it has reached the 300 member

mark in the number of UK aero-

space and defence companies

signed up to its supply chain effi-

ciency initiative. The initiative,

called Supply Chains in the Twenty

First Century (SC21), was launched

in 2006 with 19 companies.

BA 777 inhard landingOn 17 January a British Airways 777

landed short at Heathrow Airport,

causing minor injuries to 18onboard. Early reports say that the

impact broke off the undercarriage.

Aerospace

The US FAA has asked Boeing to confirm that

that the aircraft management system aboard theBoeing 787 will not be vulnerable to computer

hackers who could access it via the aircraft's in-

flight Internet system.

Cabin crew working for Virgin Atlantic have

called off planned strike action in January after

reaching a pay settlement with airline

management.

RAF Tornados and Harriers are to receive

350m equipment upgrades including secure

communications and technical data links.

A Canadian Earth observation satellite,

Radarsat-2 was launched into orbit on 14December aboard a Russian Soyuz-Fregat

launcher from Baikonur Cosmodrome in

Kazakhstan.

A UK flying school is suing Austrian aircraft

manufacturer Diamond over the poor reliability

of Thielert diesel engines used to power two

DA40 training aircraft.

The European Aviation Safety Agency (EASA)

has certificated the Engine Alliance GP7200

engine for the A380.

Low-cost Asian carrier Tiger Airways has

taken out an option for 20 additional AirbusA320s. The airline ordered 30 A320s in October

with 20 options.

The US Army has cut back an order for Bell

armed reconnaissance helicopters from 348

down to 250. The aircraft are due to be delivered

between 2008 and 2013.

A US congressman has appealed for an extra

$10bn of government funding for NASA to keep

the Space Shuttle flying past its intended

retirement date of 2010. (see p 15).

News in Brief

Airbus and Boeing:2007 race results inBoth Airbus and Boeing haveannounced their 2007 figures fororders and deliveries with recordnumbers. In net orders Boeing tookthe lead with a total of 1,413

booked in 2007 against Airbuss1,341. Deliveries, however, saw Airbuspip Boeing at the post with 453,compared to its US rivals 441.However some analysts expect thatthese high numbers represent thepeak of the current industry cyclewith a downturn to follow.

7/31/2019 AI_0802


NEWS Roundup

P&W partnersin Turkish JVPratt & Whitney and Turkish

Airlines Technic are to partner in a

joint venture to open an engine

overhaul centre in Istanbul. The

centre will focus on V2500 and

CM56 engines and eventually is

expected to overhaul up to 200

engines per year.

NASA safetyreport hits flakNASA has been criticised by the US

Congress for releasing an aviation

safety report which, it claims, is out-

of-date and devoid of much useful

information. The report, whichinterviewed almost 30,000 pilots

over four years, revealed that there

were 1,266 incidents where aircraft

missed each other by 500ft in this

period. However, a Congress mem-

ber also questioned the timing of

the publication of part of the

report on New Years Eve.

Airbus line for

Mobile?Provided Northrop Grumman,supported by EADS, receives the

order from the USAF to build aerial

refuelling tankers, Airbus has made

a commitment to establish an A330

Freighter assembly line in Mobile,

Alabama. This would be one of the

first new commercial aircraft assem-

bly facilities built in the US for over

40 years and would employ more

than 1,000 people.

Safest skiesfor 44 yearsA Geneva-based aviation safety

watchdog has reported that 2007

was the safest year for airline acci-

dents in 44 years. The Aircraft

Crashes Record Office said that

there were 136 serous accidents in

2007, the lowest since 1963, while

fatalities were down 25% since

2006.

Strikes offPlanned industrial action at the

UKs busiest airports in January was

called off after a union ballot.

Aerospace

A new school for helicopter pilots is to open

in St Petersburg, Florida. SunHelo Aviation willuse Brantly B2B helicopters as its preferred

training aircraft.

Following its maiden flight in December 2007,

developers of the 265kg Electra electrically-

powered ultra-light aircraft are to continue

flight testing to obtain an airworthiness

certificate so that it can be demonstrated at a

general aviation show in Vichy, France, in July.

American Airlines is to recall up to 250

maintenance workers

Boeing has won a 125m contract from the

UK Ministry of Defence to convert eight specialforces Chinook Mk3 helicopters into a support

helicopter role. The first aircraft will be ready for

operational service in 2009.

In the first launch by Sea Ocean since January

2007 when an explosion destroyed a Zenit and

its payload on the pad, a Zenit 3SL rocket has

lifted off from its Pacific platform carrying a

Thuraya telecoms satellite.

Aviation Technology Group (ATG) has laid off

80% of its workforce as the company tries to

find funding to continue the development of the

Javelin very light jet.

With room for two Airbus A380s or three

Boeing 747s at the same time, a new

maintenance hangar has been opened in

Frankfurt by Lufthansa Technik.

Auckland Airport has rejected a second

takeover bid this time from a Canadian

pension fund. The airport operator turned down

a $14bn bid for a 40% stake from Canadian

Pension Plan Investment Board. The first bid was

from Dubai Aerospace Enterprise.

News in Brief

Elbit Systems unveils new helicopter HMDIsraeli defence firm Elbit has launched a new helicopter helmet-mounted display, JedEyes. The company boasts ithas the widest field of view >70 degrees x 40 degrees in its class.

7/31/2019 AI_0802


NEWS Roundup

Qantas orders

more 737sBoeing has sold 31 737-800s toAustralian flag carrier Qantas. The

airline has bought 38 737-800s over

the past six years.

Green light forKuwait sell offThe Government of Kuwait has

given approval for the privatisationof state-owned Kuwait Airways. A

total of 40% of the carrier is to be

sold to the private sector and a fur-

ther 35% to another long-term

investor. The government will con-

tinue to retain a 20% holding and

staff will own the remaining 5%.

Lessor inbuying spreeIrish leasing firm AWAS has placed

an order for 75 Airbus A320s plus

25 options. The purchase adds to an

order for up to 50 Boeing 737s,

which AWAS placed in December.

Advance orderOrient Thai Airlines has announced

its intention of ordering 20 new

Boeing aircraft in April 2008. The

$25bn order will comprise eight

787-9s and 12 737-900s with deliv-

eries to begin in 2011.

UK securityrules relaxedSecurity rules have been relaxed at

22 UK airports leaving travellers

puzzled about a lack of consistency

between airports and airlines. Some

airports, will continue with the one

bag carry-on luggage rule, along

with easyJet which has decided tokeep it in whatever airport it flies

from. The Air Transport Users

Council commented: There is no

longer one consistent message.

China Eastern

spurns SIA bidChina Eastern Airlines has rejecteda $920m bid from Singapore

Airlines to buy 24% of the Chinese

carrier. The bid required approval

from two thirds of both Shanghai

and Hong Kong shareholders.

CRJ900s forLibyan AirlinesLibyan Airlines is to buy two addi-

tional Bombardier CRJ900

NextGen regional jets. The aircraft

were originally options from 2007.

Air Transport

Russia has test-fired its new RS-24

intercontinental ballistic missile.

Spanish satellite operator Hispaat has

selected Arianespace to launch its Amazonas-2

communications satellite. The satellite, to be

based on a Eurostar 3000 platform, will provide

communication services for Brazil and the rest of

South America.

The Ministry of Communications in China has

taken delivery of two Eurocopter EC 225

helicopters equipped with rotor de-icing

systems.

Singapore Changi Airport has received

approval under the European Commission inthat its security meets ICAO standards and that

passengers transferring to other flights will not

have to forfeit their duty-free liquids at EU

airport security checkpoints.

Middle East Airlines has selected IAE V2500

engines to power up to nine Airbus A320s.

The last UK military registered Jaguar fighter

made its final flight on 20 December. Operated

by QinetiQ at Boscombe Down, the aircraft was

being used for trial flights.

NASA has hired Zero Gravity to manage and

operate an aircraft to perform parabolic flightsfor personnel and research.

Spain's Interior Ministry has ordered two

EADS CASA CN-235s for the Servicio Areo de la

Guardia Civil.

Sentient Jet Holdings has acquired the Air

Group management company.

Using Boeing 777-300ERs, Singapore Airlines

is to introduce a fourth daily Singapore-Sydney

service in April.

News in Brief

European airlinesreport falling loadfactorsA number of European airlines,

including easyJet, KLM and Ryanair,have reported recent falls in loadfactors, fuelling fears that capacitymay be outrunning demand. easyJetreported its load factors shrank 22%in December to 789%, while KLMsdropped by 08%. Ryanair, too,reported average load factors downby 2% in December.

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NEWS Roundup

Cebu Pacific

firms optionsPhilippine carrier Cebu Pacific hasconverted four options for ATR-

72-500s into firm orders. This

brings the total orders from the air-

line for the ATR-72 up to ten. The

aircraft will be delivered between

2008 and 2009.

More A350s

for VietnamVietnam Airlines has signed a con-

tract for ten Airbus A350XWBs

and an additional 20 A321s. The

agreement follows the signing of an

MoU in October 2007 between the

carrier and Airbus, with ten of the

A321s to go to the new Vietnam

Aircraft Leasing Company.

AF-KLM inAlitalia bid

The Italian Government hasapproved a takeover bid from AirFrance-KLM for state carrier

Alitalia. After postponing a deci-sion over which of two rival bidsto choose, the Government opted

on 28 December for Air France-KLM over Italy-based Air One.

Air France-KLM has sinceannounced that it intends to con-centrate on Rome as a hub at theexpense of Milan and to lay off1,700 out of 20,000 Alitalia work-ers.

Kingfisher andDeccan mergerTwo Indian airlines are to join

forces. Kingfisher has announced

plans to merge with low-cost carrierDeccan. The UB Group, which

owns Kingfisher, already has a 46%

stake in Deccan. The new merged

airline plans to start overseas flights

this year, begining with services to

the Middle East.

AA in anti-SAM trialsAmerican Airlines is to fit three ofits Boeing 767s with anti-missile

systems designed to thwart a MAN-

PADS attack in a field trial. Thecarriers airliners will be fitted withBAE Systems JETEYE laser

warning and defence system in atest for the US Department ofHomeland Security.

Air Transport

A $37m contract to provide mission computer

systems for four Boeing 737 airborne earlywarning and control aircraft supporting Korea's

EX programme has been won by BAE Systems.

NASA has announced details of a mission to

'rescue' the Hubble Space Telescope which is

likely to fail in 2010 or 2011 by upgrading it via

the Atlantisspace shuttle to make it 90 times

more powerful.

Eclipse Aviation produced 103 500s in 2007,

claiming to be quicker than any other general

aviation jet manufacturer.

At Domodedovo Airport, East Line Technique

is offering Russian and CIS airlines a wheel andbrake repair and maintenance service for

foreign-made aircraft.

Spains clickair low-cost airline, which has

taken delivery of its 23rd Airbus A320, carried

46m passengers in 2007. New winter routes

include Palma, Asturias, Alicante and Brussels

from Barcelona with Tel Aviv, Cairo and Istanbul

planned for the summer.

The RAF has revealed that a Eurofighter

Typhoon suffered a 'system failure' and had to

drop 30,000ft which caused it to exceed the

speed of sound, making a sonic boom overShropshire. No one was harmed.

Images from JAXAs Daichi satellite are too

poor to be used to create maps, according to

reports in the Japanese press. The Yen55bn land

observation satellite was launched two years ago.

NASA and the National Science Foundation

have conducted scientific observations from

balloons after launching and operating three

long-duration flights within a single Antarctic

summer.

News in Brief

First mobile phone service oninternational flights launchedAir France has become the first airline to allow mobile phone use oninternational flights, using the Mobile OnAir system. The service initiallywill be operated for a six-month trial period using a single Airbus A318.

7/31/2019 AI_0802


NEWS Roundup

F-15s wings

clippedUp to 200 early versions of theF-15 fighter may be permanently

grounded after the discovery of

structural defects. The US Air Force

grounded 452 older F-15s on 28

November to carry out inspections

after a Missouri National Guard

F-15C disintegrated in flight on 2

November. Around 260 F-15s are

expected to return to service soon

while 180 may never fly again.

Poland seeksUS guaranteeThe incoming Polish Government

has said it wants the US to improve

its air defence capability before it

grants permission for a US anti-bal-

listic missile site to be based in the

country. The US wants to deploy

interceptor missiles in Poland and a

radar post in the Czech Republic as

part of a extended missile defence

shield against rogue states.

India to trainRMAF pilotsIndia is to train pilots from

Malaysia to fly the Sukhoi Su-30

under a defence agreement. As part

of the pact, technicians will also be

trained on the maintenance of the

jets.

IAF to push fornew IFF systemFollowing lessons learnt in the

recent Lebanon War in 2006, the

Israeli Air Force is to spearhead

development of a new air-ground

co-operation communications sys-

tem. The system will allow for rapid

and precise close air support as well

as potentially equipping ground

units with GPS blue force trackers

to allow air and ground forces to

share the same picture.

Saudis pickA330MRTTThe Royal Saudi Air Force (RSAF)

has selected the Airbus A330MRTT (Multi Role Tanker

Transport) to be its new air tanker,

with a purchase of three aircraft.

The aircraft, equipped with an

EADS CASA refuelling system, has

already been selected by the RAAF

and RAF, as well as being in the

running for the USAFs future

tanker contract.

According to the consumer

magazine Which?some budgetairlines are charging passengers

more than the advertised prices

because of extra costs with fees

for luggage check-in and having

bags in the hold. easyJet has been

accused by the Guild of Travel

Management Companies of

push-button profiteering by

charging an extra 12 for return

bookings made through the

Amadeus and Travelport global

distribution systems (GDS) with

single sectors being charged 75.

Two Jordanian Air Force pilots

were killed on 6 January when

their unnamed fighter crashed

outside Amman on a training

flight; two pilots were killed in a

helicopter crash the previous week.

To lead to co-ordination and

collaboration, the Society of British

Aerospace Companies has signed

an agreement with the Supplier

Excellence Alliance of the US.

News in Brief

Defence

Maiden flight for Tiger HADOn 14 December the first flight of the HAD version of the Tiger helicopter

took place at Marignane in France. It was the exact date forecast in the

development contract signed by Eurocopter Tiger and the international

armament organisation OCCAR. After its flight tests it will be qualified late

in 2010.

Algorithms, Software &

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to strong business growth, we currently have a number of vacancies

for staff with a range of skills and experience, including technical

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If you have a background in image processing, mathematical

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working in a friendly, dynamic environment then in the first

instance send your CV to:

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7/31/2019 AI_0802


NEWS Roundup

Two SuperHornets crashTwo US Navy F/A-18 Super

Hornets are reported to have

crashed in the Persian Gulf on 7

January. Three crewmen were able

to eject and have been rescued. The

cause of the accident is under inves-

tigation but is not believed to have

been caused by hostile fire.

Italy groundsAMX fleetSardinian magistrates have grounded

70 AMX fighters from the Italian

Air Force due to safety fears.

According to media reports, the

grounding order stems from an

investigation into a 2005 accident

involving the loss of a canopy dur-

ing flight.

Cheap smartrocket testedBAE Systems has reported that aUS Army Kiowa Warrior scout hel-

icopter has successfully test-fired its

APKWS (Advanced Precision Kill

Weapon System) in two demonstra-

tions. The APKWS combines the

standard 275in rocket with a preci-

sion laser-guided warhead to deliver

a low-cost smart missile.

CAE to provideMRH90 simsSimulation and training specialists

CAE have been selected to provide

training to the Australian Defence

Forces on the new MRH90 medium

helicopter. The Aus$180m contract

includes provision of two full flight

simulators, plus facilities and engi-

neering and support.

Japan downsmissileJapan has successfully tested a ship-

based missile interception system. A

mid-range ballistic missile was

downed by a Raytheon SM-3 Block

1A interceptor launched by JS

Kongo. Japan is working with

Raytheon and the Missile Defence

Agency to develop the new SM-3

Block IIA missile which will have a

longer range.

Hungary gets

final GripensSweden has delivered the final three

Gripen fighters to the Hungarian

Air Force. Hungary now has a fleet

of 14 Gripen fighters and is the

third air force, after Sweden and the

Czech Republic, to operate the

fighter.

Defence

Delta Air Lines is reported to have put plans to

sell Comair on hold.

Russia has delivered multipurpose Mi-171Sh

helicopters to Croatia.

Techspace Aero has completed the

development of a booster for cleaner engines

under the European VITAL programme.

Continental Airlines has received its first

Boeing 737-900ER (Extended Range), becoming

the first carrier in the Americas to operate this

type.

The Italian Army has taken delivery of the first

of 60 AgustaWestland NH90 helicopters.

Lockheed Martin has received a Supplier

Performance Award from NATS.

Saab has received an order worth SEK118m

for continued maintenance and development of

the StriC air defence system and the Strics sim

system for the Swedish Armed Forces.

A Qantas 747-400 suffered a serious electrical

failure at Bangkok Airport after water from a

galley shorted out the aircrafts power.

Raytheon Systems is to supply and

commission a dual-channel Series 300monopulse secondary surveillance radar system

at RAK International Airport in the United Arab

Emirates.

Plans for non-stop services to Australia by

Qatar Airlways have been put on hold until it

receives its new long-range Boeing 777-200LRs.

DCNS has conducted the first firing test of a

Sylver A35 vertical missile launcher in south west

France. It can accommodate missiles up to 35m

long.

News in Brief

The UK MoD has put in anorder for ten General AtomicsMQ-9 Reaper hunter killerUAVs with associated groundstations and Lynx syntheticradar for the RAF. At themoment, the UKs Reapers stillremain unarmed, unlike theUS MQ-9s which can bearmed with Hellfire missiles,LGBs or even Sidewindermissiles.

RAF doesntfear the Reaper

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NEWS Roundup

spacewalk. As well as the three-man

manned flight, with lift-off possibly

in August, the country also plans to

launch 17 satellites over the course

of the year.

Lost satelliteThe Korea Aerospace Research

Institute has confirmed that it has

lost contact with a multipurpose

communications satellite. Launched

in December 2001, the South

Korean Arirang 1 satellite is

believed to have lost power because

of a problem with its solar panels.

Mission toEuropaRussia is to participate in a planned

European Space Agency mission to

send an unmanned probe to

Europa an icy moon of Jupiter.

The mission is scheduled between

2015 and 2025.

AtlantisdelayedAs Aerospace International goes to

press the launch date of NASAs

Space ShuttleAtlantishad slipped to

24 January and potentially even

February. The Shuttle was due to

launch in December but the mis-

sion was postponed due to ongoing

problems with fuel tank sensors.

See News Focus (p 15) for an analy-

sis of NASAs dilemma over the

ageing orbiter.

Spy sat readyA delayed Israeli spy sat is expected

to launch atop an Indian rocket

early this year. The TechSAR satel-

lite was originally supposed to

launch in September 2007.

Astrium to

build KA-SATEutelsat Communications has cho-sen Astrium to build its new KA-

SAT the first European exclu-

sively Ka-band multibeam commu-

nications satellite for Europe. To be

launched in 2010, KA-SAT will pro-

vide broadband and broadcast serv-

ices to Europe.

UK ISS

modules?UK engineers have proposed that

Britain join the ISS effort by devel-

oping and building two living mod-

ules for the space station. The con-

cept, published in Spaceflight, esti-

mates the cost of developing the

HEMs (Habitation Extension

Modules) to be some 600m over

six of seven years.

China details2008 flightsIn its year of hosting the Olympics,

China has revealed its spaceflight

plans which include a manned

Spaceflight

Probe passes by MercuryThe first spacecraft, Messenger, to visit Mercury for over 30 years passedthe planet on 14 January at a distance of 200km. It is now half-waythrough its seven-year tour and this fly-by is the first of three it will makein the coming years as it slows to enter into orbit in 2011, collecting over1,300 images. The goal is to understand the surface, interior andmagnetosphere and atmosphere of the planet.

Austrian Airlines and Lufthansa Technik have

signed a co-operation agreement concerning theC-check, maintenance and components of the

carrier's aircraft.

An Iran Air Fokker 100 was destroyed in a

take-off accident at Tehran Airport. All onboard

got clear of the fire.

Japanese officials have carried out exercises

to see if a missile defence shield could be set up

in Tokyo and whether Patriot Advanced

Capability 3 surface-to-air interceptor missiles

could be deployed.

In its tenth annual survey Forbes has named

Raytheon as the best managed company in theaerospace & defence industry.

In December, Nepal Airlines stopped all

services due to maintenance on both its aircraft.

Boeing has submitted its revised HH-47

Combat Search and Rescue helicopter proposal

to the US Air Force.

Embraer has reported a new record for its

deliveries with 169 aircraft delivered in 2007, the

largest in its history.

Six scorpions at large in the aircraft caused a

Vietnam Airlines 777 flight to be delayed.

BAE Systems has been awarded a 324m

contract amendment by the MoD for Availability

Transformation Tornado Aircraft Contract

(ATTAC).

First flight of the Sukhoi Superjet has now

slipped due to delays in engine testing.

Lockheed Martin has won a $141m contract

to upgrade the mission system avionics on five

Portuguese P-3C maritime surveillance aircraft.

News in Brief

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NEWS Roundup

SpanishwaterbombersTwo Bombardier 415 water-

bombers have been ordered by the

Spanish Government for firefight-

ing duties. They will join one 415

already in service, along with 14

CL-215Ts and five CL-215s.

Mid-airtragedy...Two light aircraft collided in mid-air

in Staffordshire on 16 December,

killing two people. The incident

involved a Pacific Aerospace

750XL, which made a forced land-

ing, and a Luscombe Silvaire, which

crashed into a reservoir.

...and luckyescapeTwo pilots had a lucky escape when

their aircraft collided on final

approach at an airport in California.

A low-wing Piper PA-28-180 and a

high-wing Glastar collided on land-

ing at Sonoma Valley Airport, with

both aircraft sustaining light dam-

age. No injuries were reported.

Avio cockpitcertificatedThe US FAA has awarded certifica-

tion of Eclipse Aviations new Avio

NG flightdeck for the Eclipse 500

VLJ.

DGA buy moreEC145sEurocopter has sold five EC145

helicopters to Dlgation Gnrale

pour lArmement (DGA) in France.

They will be delivered in early 2009.

General Aviation

The US FAA has downgraded the Philippines

to Category 2 for poor safety standards.

Aeroflot flew its last Tu-134 service on 31

December from Kalingrad to Moscow.

The Korean military is to use Elbit Systems'

tactical UAV, the Skylark II.

Virgin Atlantic is to fly its first biofuel-

powered flight this month.

Air Canada is to offer compensation to

passengers, ten of whom were injured, in a A319

that encountered severe turbulence over the

Rocky Mountains.

Northrop Grumman's MQ-88 Fire Scout

vertical take-off and landing tactical unmanned

aerial vehicle has made its first flight test using a

test and training control segment.

According to its Minister of Defence, Ghana's

Air Force is to be modernised with a new fleet of

aircraft.

The final assembly of the first of 28

production Hawk AJTs purchased by the MoD has

been started by BAE Systems at Brough.

Started on 5 December, a Russian carrier with

Su-33 aircraft plus other ships carried out a

variety of missions in a two-month training

exercise in the central area of the Mediterranean.

The Japan Maritime Self-Defense Force has

successfully flight tested its first Raytheon

standard Missile-3.

BAE Systems is to buy Ohio-based MTC

Technologies in a transaction valued at around

$450m.

News in Brief

Diamond Airborne Sensing has obtained EASA TCDS A513 certification forthe DA42 MPP's laser scanning configuration. The belly pod can carry

different sensor packages up to 100kg in weight. Deliveries of the aircraftstart this year.

Diamond sensor variant certificated

Christmas Competition results

Many thanks to all our readers who sent in answers for the Christmas Quizpublished in the December issue ofAerospace International.

First prize ofTurbojet History and Development 1930-1960 Vols 1-2goes toBrian Armstrong. Second prize ofEvolution of the Airlinerwas won by PhilipTaylor. Third prize, Cold War at 30,000 feet, goes to Oto Chudy. The winner ofthe fourth prize, The Berlin Airlift: Salvation of a City, is Joseph Valiaveetil. Thefifth prize ofThe History of Dive-Bombing: a Comprehensive History from1911 Onwardgoes to Manousos Chairetis.

Our thanks to the publishers The Crowood Press, Harvard University Press andPen & Sword for providing the prizes.

Answers:

Q1. Three yearsQ2. Honeywell AS 977 (RJX 100) andProgress D436-148 (An148)Q3. Honeywell Minature Air Vehicle(MAV)Q4. 1st. A380 (261ft), 2nd. Brabazon(230ft) 3rd. B-52 (185ft)Q5. Chancellor of the ExchequerJames Callaghan, 6 April 1965.Q7&8. The airship is the 1912 Cittdi Milano designed by EnricoForlanini.Q9-11. British Experimental RotorProgramme (BERP) rotor blade tipsfitted to a Lynx Mk 7 (left) and aMerlin HM1 helicopter (right). Both

aircraft are based at RNAS Yeovilton.Q12. Dubai AirportQ13. ConcordeQ14. Antonov 225Q15 Airbus A300-600FQ16. Airbus A300-600 ST BelugaQ17. Yes. (Pescara helicopter 1923)Q18. Samuel Franklin CodyQ19 First successful powered flightin Great Britain, October 1908Q20. 1912 (Flying bicycle, France)Q21. Bristol BrigandQ22. Armstrong Whitworth WhitleyQ23. Second (Red Bull Air Race,London)Q24. WAH-64 Apache helicopterQ25. De Havilland DH-106 Comet 4(wing tank)

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NEWS Focus

News Focus: Spaceflight

trustworthy and reliable space partner. There

is also an impetus to open up the ISS to busi-

ness which a larger crew and completed facil-

ity would help provide. Early hopes for the ISS

which never materialised were that it would bethe first factory in space, producing high-value

materials or medicines in zero gravity. So far,

however, apart from the long-term human

physiology research even the scientific

work has been far short of what was planned

due to the tiny crew mainly having to con-

centrate on house-keeping and construction.

The European Columbus module which

Atlantiswill lift on its next flight, will help shift this somewhat but a com-

pleted ISS would then enable NASA to move on to its next goal, the Moon

and beyond, with a clear conscience. Fail, and an uncompleted and under-

used ISS be will left in Earth orbit as a second generation Mir, never hav-

ing achieved its true potential.

Not only this but, as well as the 13 missions needed to complete theISS, there is also another mission the final upgrade for the Hubble

Space Telescope. However, extending the shuttles hours would also open

it up to requests for other missions such as the $1bn Alpha Magnetic

Spectrometer (AMS-02) which has significant international backing.

To get round this, US Congressman Dave Weldon from

Florida has proposed that NASA be given an extra $37bn

as well as an annual increase in budget to extend the life of

the shuttle. However, the difficulty for NASA is weighing

this outstanding need for the shuttles services against the

safety case and particularly the corporate responsibility

thereof. After the Challengerdisaster, NASA was publically

shamed and vowed never again and while the Columbia

loss was different in its causes again a harsh publiclight was shone on NASAs safety practices.

So the question is this even with extra funding and

tightened safety measures are there enough of a cadre

of NASA engineers and middle managers with the

cajones to disregard any thoughts of appearing in a third

post-crash investigation to sign off what is still a risky

undertaking?

To complete the station NASA now needs almost an average of five

flights per year a mission rate that was last achieved in the pre-Columbia

days of 2002. NASA (and the international community) needs the Shuttle

badly but the agency also needs it to bow out of service safely and

gracefully the old girl has done her best.

[email protected]

Npostponed yet again has raised a serious question over how longthis 1970s technology can be kept in service. After the distinte-gration of Columbia in 2003 on re-entry, NASA promised that it would

retire the Shuttle fleet by October 2010. However, with recent delays, this

deadline is looking more and more unrealistic, throwing up a thorny safe-ty case for the agency to consider. The problem splits into two parts. First,

as the Shuttle gets older, there are likely to be more and more spurious

warnings, false alarms and technical hitches. This in turn is reinforced by

NASAs ultra cautious approach now after losing two orbiters and their

crews in accidents everything must be double and

triple-checked before a mission is launched. Special care

is taken on the pad before launch as well as an in-orbit

examination for damage. Fear of hailstones, lightning

or other weather that could inflict damage on take-off

has also tightened up launch criteria and reduced the

window in which a shuttle launch is considered safe.

The second issue is the need to finish off the

International Space Station a project with interna-tional and financial implications. As a space truck sup-

plying the station with large assemblies there is literally

nothing that can replace the shuttle today to haul cargo.

Even if there were (either from the US and/or

Europe) the likelihood is that these projects, too, would

drift to the right and encounter problems. Some think

that private enterprise might be able to bridge the gap

but, as the Airbus A380 and the Boeing 787 show even highly experi-

enced private industry is not immune to schedule slip, let alone a start-up

company attempting a crash building programme of an orbital cargo

truck.

Why the rush? First there is pressure from the international partners.

The ISS is already seen in some quarters as a space white elephant. Failure

to complete it, it might be argued, would damage NASAs credibility as a

Race against time as Shuttle

retirement clock ticks downTim Robinson

Failure tocomplete the ISS...would damageNASAs credibilityas a trustworthyand reliable inter-national spacepartner.

The ageing Shuttle fleet means there isnow a ticking clock to complete the ISS.

ASAs announcement that the Space Shuttle Atlantis has been

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16/3616O February 2008 Aerospace International www.aerosociety.com

SINGAPORE PREVIEW

On 19-24 February

Singapore will host the

S i n gap o r e A i rsh o w

2008, a rebranded, refocused exhi-

bition in a new venue. It no longer

has the Asian Aerospace name but

the organisers have Dubai firmly

in their sights to claim the crown

of Worlds No 3 airshow. Unlike

the Asian Aerospace brand, which

has now decamped to Hong

Kong, Singapore will feature both

military and civil aerospace as well

as its usual f lying display.

For its relaunch the show will

feature a brand-new $60m air-

conditioned 430,570 sq ft exhib-

tion hall, with control tower,

100 chalets and static line

immediately outside. The organ-

isers have also improved access,

with a six-lane access road and

streamlined identification gates

for visitors.

As part of its new image the

organisers are also promoting a

smart-casual dress code for

executives a welcome move

Fresh look for old favouriteWith a new custom-built venue, this month sees a revamped Singapore Airshow set to take off.

TIMROBINSON previews the highlights

Aerospace Internationalwill be at

the Singapore Airshow on the

Royal Aeronautical Society

stand D100.

for Singapores tropical climate.

So far the exhibtion is sold out

with more than 900 exhibitors

from 42 countries booked in.

Over 30,000 trade visitors are

expected to attend, with 50,000

vistors on the public days.

Is there room for two big

aerospace exhibitions in Asia?

And can Singapore wrest back

some of the glory from Dubai?

We have yet to see but this

looks to be a must-attend event

in 2008.

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THE NEW 747-8 INTERCONTINENTAL.

From day one, the new 747-8 will be cleared to land at airports

around the globe, bringing with it dramatically lower operating costs

for airlines and a new standard of comfort for passengers. The cleaner

flying, quieter flying 747-8 will also be a welcome sight for airport

communities, reducing noise and environmental impact. After all,

whether were arriving or departing, our goal is to be a perfect guest.

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Air transport in Asia-Pacific is onthe rise. Over the first ten

months of 2007, the total

number of international passen-

gers carried by the 17 members of the

Association of Asia Pacific Airlines (AAPA)

rose by 46% to 120m while freight traffic

increased by 31%. According to figures from

the International Air Transport Association

(IATA), international passenger traffic for all

flights in the Asia-Pacific region rose by 76%

in the first nine months of 2007. The Centre

for Asia Pacific Aviation (CAPA) anticipates

that, over the next three years, domestictraffic will rise by 35% and international by

16%.

In some sectors, the growth in air travel has

been much higher. The number of passengers

flying in and out of China and India has greatly

increased, while Australia, Vietnam and

Myanmar have also had more visitors by air.

For many years, the growth of air travel in

the Asia-Pacific region has been restricted by

regulations which only permitted certain

approved national airlines to compete on major

routes. However, all this is set to change. The

Association of Southeast Asian Nations(ASEAN), which represents Brunei,

Cambodia, Indonesia, Lao, Malaysia,Myanmar, Philippines, Singapore, Thailand

and Vietnam, has pledged to free up air

services between their capital cities by

December 2008 and to fully liberalise aviation

services in the region by 2015.

The process of liberalisation has already

begun. From February this year, Singapore has

granted low-cost carriers Jetstar Asia and Tiger

Airways each the right to operate daily flights

to Kuala Lumpur in neighboring Malaysia a

route that was previously restricted to national

carriers Singapore Airlines and Malaysia

Airlines.

Low-cost driver

Low-cost carriers (LCCs) have played a key

role in the current expansion. Although still a

relatively small part of the market (currently

accounting for around 9% of short haul

passenger traffic compared with 31% in North

America and 26% in Europe) LCCs are acting

as catalysts for the whole air transport sector as

they pioneer new routes and bringing competi-

tion to existing ones.LCCs are rapidly increasing in importance.

Statistics fromflight informa-

tion specialists

OAG (Official

Airline Guide),

show that the

number of low-cost

flights within Asia-Pacific

during last year rose by 392%

to 07m. Within five years it has

been estimated by CAPA that LCCs in

the region will account for 25% of the Asia-

Pacific market, with fleet sizes rising from

around 300 aircraft with 45,000 seats to 870aircraft with 170,000 seats. Airbus predicts that a

fully liberalised Asian air-travel market could

generate as many as 1,600 low-cost routes by

2015.

Many of the larger Asia-Pacific countries now

have several national LCCs competing over

routes. India has no fewer than six, comprising

Deccan, IndiGo,SpiceJet,GoAir, JetLite and Air

India Express. LCCs Tiger Airways and JetStar

Asia are based in Singapore, Jeju Air and

Hansung Airlines in South Korea, Adam Air and

Lion Air in Indonesia,Phuket Air, One-Two-Go

and Nok Air in Thailand, Pacific Airlines inVietnam, Cebu Pacific in The Philippines and

February 2008 Aerospace International www.aerosociety.com20O

Tigers in the sky

Commercial aviation is expanding rapidly in the Asia-Pacific region as low-cost carrierslead the way in transforming conventional air travel. However, there are clouds on thehorizon, as BILL READ reports.

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Far Eastern Air Transport in Taiwan. There are

also two low-cost carriers operating out of

Chinese special administrative regions Macau

and Hong Kong Viva Macau and Oasis Hong

One of the few countries not yet to benefit

from the low-cost revolution is Japan.

Hokkaido-based LCC Air Do briefly operated

between Sapporo and Tokyo from 1998 but

was acquired by ANA in 2000. The main reason

for a lack of LCCs is that Japan is too far away

from most other Asia-Pacific countries to make

the low-cost short haul business model work.

There are also problems with airport capacity

order for 22 737-900ERs placed anonymously

during the second quarter of 2007 by

Indonesias biggest budget carrier, PT Lion

Mentari, bringing its total order for the aircraft

to 122. In the same month South Korean LCC

Jeju Air announced plans to add 15 737-800s to

its fleet by 2013. Jeju Air is expected to be given

approval to operate non-regular international

services starting in the second half of 2008.

In 2007 Philippine LCC Cebu Pacific Air

announced orders for ten ATR 72-500 turbo-

props. The airline also has an outstanding

order for 20 Airbus aircraft placed in 2006.

Indonesian LCC Adam Air bought 25

Bombardier CRJ900s as part of plans to

increase its fleet from 23 aircraft to between 50

and 60 over the next five years.

Meanwhile, Asia-Pacifics conventional

carriers have not been idle. In the autumn of

2007, Singapore Airlines became the first

commercial airline to operate the Airbus A380.

It will be followed by Australian flag carrier

Qantas which is to introduce its own A380s into

service in mid 2008.Qantas also ordered 31 new

737-800s in late December, shortly after Hong

Kong-based Cathay Pacific Airways expanded

its A330 fleet with an order for eight more

A330-300s. Orient Thai Airlines announced

plans to order eight 787-9s and 12 737-900s

which will expand its fleet from 18 to 35.

Smaller regional airlines have also been

buying new turboprops. European turboprop

manufacturer ATR sold three ATR 72-500s toBangkok Airways, two to Air New Zealand and

one to Air Tahiti. Air Vanuatu has ordered a

70-seat ATR 72-700 turboprop for delivery in

2009.

Other airlines have announced their inten-

tion of placing orders in the near future,

including Asiana in South Korea, Biman in

Bangladesh and China Eastern.

Not all air routes have been successful. In

2006 Jetstar suspended services to Bangalore

due to weak demand, while last year Nok Air

ended daily flights between Bangalore and

Bangkok for the same reason. In Taiwan,domestic air traffic volumes have dropped

65% from 3739m to 1736m in 2006

following the gradual introduction of

improved highway systems and the opening of

a new high-speed rail link in 2007. Particularly

hard hit by the new railway has been demand

for air travel between Taipei-Taichung and

Taipei-Chiayi. Mandarin Airlines cancelled its

Taipei-Taichung route in May 2007, followed

by a Uni Air service linking Taipei to Chiayi.

Far Eastern Air Transport Corp is currently

applying to the Taiwan Ministry of

Transportation and Communications (MOTC)for permission to terminate its unprofitable

www.aerosociety.com February 2008 Aerospace International 21O

Kong. New

airlines are contin-

uing to appear

the Vietnam trans-

portation authorities

recently giving approval for

a new private carrier Vietjet

Aviation to begin operations.

One of the largest low-cost operators

is AirAsia based in Kuala Lumpur in Malaysia

which became a budget carrier in December

2001 and has expanded aggressively since.Currently operating 63 aircraft, it has been

rapidly expanding its presence across the whole

Asia-Pacific region taking over 115 routes

from Malaysias national carrier Malaysia

Airlines in 2006. At the end of the 2007 finan-

cial year, AirAsia carried 8,737,939 passengers,

up from 5,719,411 in 2006. The airline operates

two regional airlines in joint ventures with other

companies Thai Air Asia and Indonesia Air

Asia.A third joint venture carrier, Vina AirAsia,

is planned to start in Vietnam in July. AirAsia

also operates a franchise affiliated with the

Virgin Group called AirAsiaX which beganflights to Australia in November 2007.

and high landing charges Kansai often being

cited as the worlds most expensive airport.

However, this situation may start to change. In

2007 Chinese LCC Viva Macau began flights to

Japan and others may follow.

Setting the pace

The low-cost carriers have been setting the

pace in Asia-Pacific as they expand their route

networks and order new aircraft.In December AirAsia ordered an additional

25 Airbus A320s, bringing its total number of

aircraft orders to 175 firm orders and 50

purchase options. The aircraft, some of which

will be used to replace 737-300s, are to be

added to the fleet up to 2014. A320s are also

the preferred choice of Singapores Tiger

Airways which ordered 30 of the type plus 20

options in October. With the addition of

earlier orders, Tigers fleet will grow from 11 to

70 aircraft. Tiger is already expanding in

Australia, Malaysia and India and has set up a

base in South Korea.In November Boeing confirmed a $17bn

Left: Low-cost airlines, such as AirAsia, aretransforming the face of the Asia-Pacificair transport market.

Top: Singapore-based low-cost carrier Tiger Airways is toexpand its fleet from 11 to 70 aircraft.

Left: Singapore Airlines is currently the sole operator of theAirbus A380 seen here with managers, flight crew andAirbus personnel when it was first delivered on 15 October.

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route between Taipei and Tainan while

TransAsia Airways continues serving the same

route using a single 70-seat turboprop.

Learning to live with low cost

The introduction of LCCs on to certain routes

has been dramatic. In many cases, passengers

are benefiting from lower fares. Nok Air in

Thailand is offering $123 fares, 40% below

prevailing market rates. At the end of 2007,Tiger Airways Australia was engaged with

Jetstar in an Australia flight price war; Tiger

offering 75,000 tickets from $1995 from

Melbourne as far as Alice Springs, while Jetstar

sold 5,000 seats at Au$005 each.

Airports on Australias Gold Coast are also

competing to become LCC hubs. Tiger

Airways is threatening to switch to Newcastle

Airport, claiming that Sydney charges too

much, while AirAsia X is in discussions with

Avalon and Melbourne Airports about setting

up a new base.

Increased competition from LCCs hasforced the larger carriers to take action to

survive. Taking the line if you cant beat them

join them, many national carriers have started

their own low-cost subsidiaries, either partially

or wholly owned. In India,Air India operates a

low-cost subsidiary Air India Express while full

service carrier Jet Airways operates LCC

JetLite (formerly Sahara Airways). Singapore

LCC Tiger Airways is 49% owned by

Singapore Airlines, with Singapore state-run

investment company Temasek Holdings

owning another 11%. Temasek additionally

owns 19% of Singapore LCC Jetstar Asia,which is 49% controlled by Qantas.

More service carrier-controlled LCCs are on

the way. From May 2008, Korean Air is to

launch a separate budget carrier, tentatively

named Air Korea, which will begin flying two

737s and three A300s out of Incheon to the

rest of South Korea as well China, Thailand,

Japan and Malaysia. In Japan, ANA recently

announced it intends to start its own LCC by

2009, possibly through a merger with another

Asian airline to create a partially owned low-

cost subsidiary. The Vietnamese Government

has given the go-ahead for Vietnam Airlines toestablish a partly private company through the

reorganisation of its Vietnam Air Service Co

(VASCO) subsidiary into a low-cost carrier.

Another result of increased competion has

been consolidation. In recent years, several

airlines, both LCC and service carriers, have

joined together. Jetstar Asia and Valuair

merged in July 2005 but continue to operate

their normal routes under their own brands. In

2006, Indian state-run carriers, Air India and

Indian, merged while Cathay Pacific took over

Hong Kong carrier Dragonair. In April 2007,

Indian carrier Air Sahara (now JetLite) wasbought by Jet Airways. At the end of 2007,

Indian operators Deccan and Kingfisher

announced plans to merge, Deccan to become

an LCC.

More mergers and acquisitions are likely in

the future, particularly as the privatisation of

controlled airlines continues. Indonesian state-

owned airline PT Merpati Nusantara Airlines

(MNA) said it plans to sell 40% of the

Governments shares in mid 2008. The

Indonesian Goverment is also considering

privatising flag carrier Garuda Indonesia and

Lion Air has already expressed its interest inbuying. Vietnam has two state-owned or partly

privatised carriers: Vietnam Airlines, which is

expected to be partly privatised, and budget

carrier Pacific Airlines, which includes Qantas

among its shareholders. During 2008 the Indian

Government plans to sell off 15% of its stake

in Air India while Air Asia is reported to be

interested in buying control of Australian

carrier Virgin Blue. In China, Singapore Airlines

and state-owned investment arm Temasek

Holdings are competing with Cathay Pacific

Airways and China National Aviation Holding

Co (CNAHC),parent of flag carrier Air China,

to buy stakes in China Eastern Airlines but the

Singapore bid was rejected by the Chinese

carriers shareholders in early January.

Turbulence ahead

Bright though the future looks, there are someclouds on the horizon, the most menacing of

which is the current high cost of fuel. The

good news is that, despite fuel prices having

increased since 2004, passenger demand in the

Asia-Pacific region remains strong. The bad

news is that this buoyancy may not continue if

prices rise by too much. In 2007, the cost of

crude oil rose by 447%. According to figures

from IATA, in 2006 the airline industry spent

$112bn on fuel, equivalent to 26% of oper-

ating expenses. The final cost for 2007 is

expected to be around $120bn with further

increases to come in 2008.Some airlines have taken precautions to

minimise the effect of oil prices in the short

term by buying fuel in advance through price

hedging. However, many carriers have been

forced to raise their prices. In December,

Singapore Airlines increased its passenger fuel

surcharge. Taiwanese airlines also raised fuel

surcharges on short-haul flights by $250 to

$2250 and on flights to the US and Europe by

$650 to $5850. Air Niugini in New Guinea

imposed a $13 fuel surcharge on domestic fares

as well as $5 on its international fares. Faced

with a record $32bn fuel bill in 2007, KoreanAir intends to raise ticket prices as well as

cutting costs by optimising routes, reducing the

amount of food and drinks on board and

turning off one aircraft engine during taxiing.

Another problem is that of a shortage of

pilots. With so many airlines in the region

expanding their fleets, there are currently not

enough pilots and other aircraft crew to fly

them. In China, it has been calculated that an

average of 2,500 new pilots will be needed

every year over the next 20 years. New crew

training centres are being set up in China

including one in Beijing for Air China with upto 30 full flight simulators but there are already


Indonesian budget carrier PT Lion Mentari currently has 122 Boeing 737s on order.

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the recruitment of less experienced co-pilots

holding the new International Civil Aviation

Organization (ICAO) multi-crew pilot's

licence.

Although training for new pilots is under

way, the current shortage of pilots has led to

other problems. New Zealand flying schools

are reported to be experiencing a shortage of

flying instructors as many have been recruited

by commercial airlines.

Carriers are also experiencing problems as

they try to push their existing pilots too far. In

November pilots working for All NipponAirways and Japan Air came close to striking

over pay and working conditions. The same

month several Dragonair pilots resigned from

the company in protest over pay and rosters

causing the Hong Kong-carrier to cancel up to

eight flights a day. Six captains resigned in a

week following a further 34 captains and first

officers who left over the previous six months.

The Dragonair pilots who left were quickly

snapped up by other airlines, including Korean

Air,Emirates and Air China.

The expansion of aircraft fleets has also

begun to put a strain on existing airport and airtraffic control infrastructure. An estimated 60

of Chinas 147 airports are already reported to

be at full stretch. Pressure is on to build a

second airport at Sydney in Australia, as

Kingsford Smith International Airport is

already suffering from a shortage of capacity.

A more worrying problem is that of safety

after a series of accidents have led to concerns

over the safety standards of some Asia-Pacific

operators. On 1 January 2007 an Adam Air

737-400 carrying 96 passengers and six crew

vanished off the coast of Sulawesi Island. In

February, the rear fuselage broke off an Adam

Air 737 landing at Surabaya, Indonesia, fortu-

nately without causing any fatalities. In March,

a Garuda 737-400 burst into flames on landing

at Yogyakarta in Central Java, killing 22 people.

In September, a 24-year old MD-82 operated

by Orient Thai Airlines low-cost subsidiary

One-Two-Go crashed on the Thai resort isle of

Phuket killing 89 people.In response to safety concerns, the

European Union (EU) has banned all 51

Indonesian airlines, as well as Thai budget

operator Phuket Air, from flying into

European airports. The EU recently lifted its

entry ban on Blue Wing Airlines of Surinam

but has so far refused to do the same with

other Indonesian carriers. While no Indonesian

airline flies to EU member states, the ban

obliges travel agencies to warn customers that

Indonesian airlines are unsafe if they sell

package tours that use such carriers.

In a bid to increase safety, the South KoreanGovernment has decreed that new Korean

airlines planning to operate overseas must first

run a minimum of 20,000 domestic flights

with zero passenger fatalities from accidents

for at least two years. The new safety regula-

tions will delay new LCC Korean Airs planned

international services until the second half of

2010.

A final factor is the environment. While the

debate over green issues has not yet reached

the level that it enjoys in Europe, it is growing.

The Australian Aviation Council hosted a

Greenskies conference at the end of 2007 to

discuss environmental issues while Jetstar is

encouraging passengers to pay extra to offset

their contribution to greenhouse gases. Some

commentators are concerned that, unless

airlines take action soon to curb noise and

emissions, governments may do it for them in

the form of green taxes or even bans on flying.

There are some signs that this may already be

happening. Chinas aviation minister Yang

Yuanyuan recently stated that the aviation

industry was growing too fast. The Chinese

Government had limited the number of daily

flights and delayed the introduction of newairlines, warning that safety must take priority

over growth.

At its 2007 meeting in Bangkok, the 51st

AAPA Assembly adopted a series of resolu-

tions to tackle the challenges posed by safety,

sustainable aviation, air traffic management

and continuing liberalisation. The Association

called on governments to support their

national safety agencies in their efforts to

implement safety management systems and

share of safety information. Other resolutions

included reaching consensus on globally

harmonised policies towards aviation andclimate change,continuing supporting research

into noise and emission reduction of airframes

and powerplants and improving efficiency of

airspace utilisation and airport operations all

without distorting competition.

Will the challenge be taken up?


A series of accidents in the Asia-Pacificregion during 2007, including the crash ofan MD-82 in Phuket operated by Thai low-cost operator One-Two-Go (above), haveled to concerns about inadequate safetystandards.

Bangkok Airways recently placed an order for three ATR 72-500s.

acute shortages. An estimated 20 new Chinese

airlines are waiting for approval to operate but

have no pilots to fly the aircraft.

As a short term solution, Asia-Pacific airlines

are recruting across the world for new pilots.

Unfortunately for the carriers, the Asia-Pacific

region is not the only region that wants more

pilots. Chinese, Indonesian and other east

Asian carriers are reported to have had to

cancel flights because of pilot shortages as

pilots desert to Middle Eastern carriers

offering higher salaries and bonuses. Concerns

have been expressed by certain operators over

O

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The assassination of BenazirBhutto and the domestic insta-

bility of Pakistan is the latest linkin a chain of events and trends

which are contributing to a feeling of

tension and insecurity in the Asia-Pacific

region. While arms race may be too strong aphrase (and imply two nations/blocs), the

growing military and economic power of

China, uncertainty about North Korean

ambitions as well as plans by Japan to take on

a more assertive foreign policy are bringingback bitter memories for some countries,

and leading to many air forces boosting theirrequirements and budgets. The Asian finan-

cial crisis is now over and this has restarted

procurement modernisation plans. However,the influx of highly capable Russian sourced

hardware, such as the long-range Flanker

multirole fighters into the region has

prompted some countries to sound out agold-plated F-22 solution or even consider

developing their own indigenous fifth gener-

ation stealth fighters. In 2007 as an explicit

show of force, the US sent the F-22 Raptor

on its first overseas deployment to the

region, when the 27th Fighter Squadrondeployed to Okinawa.

In addition,while the military modernisationplans of their neighbours are giving pause forthought, there are already a number of existing

fracture points (India vs Pakistan, China vsTaiwan, North vs South Korea, potentially oil

reserves in the Spratly Islands) that could

provide a flashpoint for conflict.

Australia

Australia is looking for around 100 JSF F-35sto provide the backbone of its future front line

fast jet force. However, with growing uncer-tainty about the delivery date slipping and a

rapidly ageing F-111 fleet due to retire in 2010

the country decided to opt for 24 Boeing F/A-18E/F Block II Super Hornets in a $58bn

deal last March. While the decision to purchase

the Super Hornets as an interim buy was

lauded in some quarters for its decisiveness,

vocal critics have attacked it as short circuitingthe procurement process, downplaying an

extension of the F-111s hours or even

purchasing the high end F-22 which, some

argue, is needed to maintain the RAAFs edge

against the proliferation of Su-30+ fighters inthe region. To that end the incoming new

Government has decided to re-evaluate theF/A-18 purchase.

Should the purchase go ahead it is possiblethere could be additional Super Hornet orders

on top of the 24 with Boeing seeing Australia

as a possible customer for the electronic

warfare/attack version the G modelGrowler.

Meanwhile, in December 2006 the RAAF

received the first of its four Boeing C-17

Globemasters for No 36 Sqn, based at RAAF

Amberly. Two have now been delivered, withthe third to arrive in Australia this month. In

comparison with the glacial pace of the UKsFSTA programme, in June 2007 the RAAFs

new A330 MRTT(KC-30B) was rolled out by

EADS CASA with service entry slated for2009, only five years after it was selected by the

RAAF in 2004.

The RAAF is also keen to acquire a replace-

ment for the DHC-4 Caribou, with an initialselection of the Alenia C-27J now having been

opened up to competition, with EADS CASAs

C-295 likely to be the main rival.

In UAVs there are potential moves to acquire

a number of Global Hawks. This UAV demon-

strated its maritime surveillance capabilities injoint US-Australian exercises, encouraging


DEFENCE

Flashpoints driveAsian force renewalRising tensions and uncertainty are powering air forces in the Asia-Pacific region to update their inventories.TIM ROBINSON reviews some of the highlights in recent military procurement.

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Canberra to join with the US Navy on its

BAMS (Broad Area Maritime Surveillance)

programme. In addition, in 2007 Australiaelected to join the US Navys Boeing P-8

Poseidon MMA programme which will replace

the RAAFs AP-3Cs currently in service.

In December 2007 the Australian Defence

Forces also received the first two examples ofthe MRH90, which will replace Sea Kings in

RAN service and Blackhawks used by the

Army. With local production of the type by

Australian Aerospace, in total the ADF will

field 44 of these multi-role helicopters.However, while the MRH-90 has been deliv-

ered, in the summer of 2007 the Australian

Department of Defence suspended payments

to Australian Aerospace because of the slip-page in the Tiger ARH programme.

Bangladesh

With little cash for its defence budget,

Bangledeshs last significant procurement was

the acquisition of F-7 fighters from China in

2005-6. The country is also looking to sell its

eight MiG-29s for a more modern version so far with no success. Meanwhile the air force

is to get 12 Aero Vodochody L-39ZA

advanced trainers to bolster its inventory.

Cambodia

Another country with limited funds leading to

little scope for modernisation or procurementis Cambodia. Its fleet is reported to have

restricted airworthiness.

China

China has been continuing the modernisationof its military forces and furthermore in 2007

it was reported to have boosted its defence

spending by 178%. With defence spendingincreases running at more than 10% already, it

is clear Chinas arms build up is continuing at a

terrific pace.

Previous estimates of a Chinese desire for a

carrier now seem to be confirmed, with somereports saying that China plans a three-carrier

navy with significant blue-water capability.The

type of aircraft is yet to be confirmed but

would seem to point to either a Su-33 or MiG-

29K buy.Other future military projects may include a

new four-engine military transport in the C-5Galaxy/C-141 Starlifter class, CAD concepts

of this being glimpsed in an AVIC 1 presenta-

tion in Hong Kong. Boosting its airlift and

force projection capabilities is one of the

objectives of Beijings military modernisationplan.

Last year was also notable in that, despite

being in service since 2003, the Chinese

Government publicly inaugurated the new J-10

fighter into service with high quality officialphotos appearing for the first time. Later in

2007 rumours were also spread of a possible J-

10 sale to Iran, a worrying development for

western powers if confirmed.

China is also reported to be working onmore advanced fifth generation fighters the

J-12/13/14/J-XX, which range from a twin-

engine stealthy J-10 development and a F-22-

like clean sheet design. Details, as might be

expected, are extremely sketchy.

Meanwhile, in the middle of 2006, Chinese

ambitions for a more advanced airborne radar

capability were dealt a blow when a prototypeShaanxi KJ-200 AEW carrying an electronically

steered radar array crashed during a test flight.

India

India has embarked on an expansion of itsarmed forces and uncertainty about neigh-

bouring Pakistans stability is also contributing

to concerns and its arms priorities. The jewel inthe crown for fighter manufacturers is a 126-

aircraft order for the MRCA (Multi-Role

Combat Aircraft) with service entry expected

to be in 2010.

Currently the contenders in this require-ment are the Boeing F/A-18E/F Super

Hornet, the Lockheed Martin Block 60+ F-16,

the Eurofighter Typhoon, Saab Jas39 Gripen

and MiG-35.

While the Indian Air Force currently oper-ates MiG-29s this may give MiG an advantage


DEFENCE

In November 2007 the first BAE SystemsHawk AJT was delivered to India.

of being the incumbent (although the new

MiG-35 with thrust vectoring and advancedavionics and radar is as different as the latest

Block 60 F-16s from the F-16A). However, US

firms like Boeing and Lockheed Martin are

keen to get a foothold in this lucrative marketafter being shut out for many years. Old

historic ties, too, might be significant, especially

for the Eurofighter Typhoon. India's HAL has

already a tie-up with BAE Systems with local

production of the Hawk so could a licence-built Typhoon be offered? Finally, the Gripen

would represent a cost-effective replacement

to the MiG-21 that would uphold Indias tradi-

tional policy of neither reliance on East nor

West suppliers. However, as the deliveries ofthe first Hawk AJT show, which happened in

November 2007, the road to a firm contract

signature may be a long and winding one.

As well as the MRCA, India is still movingahead with the development of its ADA/HAL

Tejas indigenous Light Combat Aircraft LCA,

which passed a milestone in 2007 by

performing its first missile launch. A contract

for 20 LCAs was signed in 2006,with deliveriesto start in 2009. A naval variant, too, is being

promoted.

Controversially in 2007 the Indian govern-

ment reversed a previous decision taken to

select the Eurocopter A550 Fennec in a $600mcontract for 197 helicopters, arguing that the

version evaluated was not a dedicated military

machine and the deal potentially compromisedthe countrys new transparency rules. A newtender will be issued in April.

In other procurement plans Lockheed

Martin may benefit from a potential order for

six C-130Js to fulfil Indias military transport

requirements. Boeing also, could be a winner asIndia is now considered a potential customer

for the P-8 Poseidon, Maritime Patrol Aircraft

and has evaluated both the 737 and Airbus

A319 for this role.

The year 2007 was also notable in that Indiareceived the first two of 66 Hawk AJT trainers.

The aircraft will be licence-built by HAL inIndia and there is speculation that India may be

interested in taking over Hawk productioncompletely. India has also teamed up with

Russia in pursuing joint programmes, including

a multi-role transport (MTA) and partnership

of the PAK-FA fifth generation stealth fighter

project.

Indonesia

Another country to boost its defence spending

in 2007 was Indonesia, which signed a $12bnarms deal with Russia that includes three Su-

Left: Singapores F-15SGs will give the city-state a potent fighter force.

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New Zealand

This year New Zealand is reported to be

looking anew at an advanced trainer type toreplace its leased Beech King Air 200s. These

provide multi-engine training for P-3 Orions,

C-130s and 757s used by the RNZAF. Areplacement for the C-130Hs has also been

mooted, for the 2017 timeframe.Wellington has yet to sell its stored A-4

Skyhawks after it disbanded its fast jet capa-

bility, due to the fact that under the US export

approval laws the upgraded Kahu aircraftconstitute a potent weapon system despite

the original Skyhawk design having first flown

in 1954.

In rotary wing procurement, in late 2007 the

RNZAF selected the Agusta A109 as itstraining and light utility helicopter to replace

the venerable Bell 47s still in service. Fiveaircraft and a simulator are to be acquired.

Meanwhile, like Australia, New Zealand will

become a NH90 user from 2010 when it willget eight examples to replace its UH-1Hs.

North Korea

Traditionally secretive and opaque, solid infor-mation on North Koreas air arm is hard to

come by. However, it is known that, while it has

a large inventory (estimated at around 1,500aircraft) many of these are obsolete, with the

most modern aircraft type being around 40MiG-29s, which were delivered 20 years ago.

With little outward sign of modernisation,

Pyongyangs military focus has been on WMDs

and on its ballistic missile capability, exploding atest atomic device in 2006. Nevertheless, it

would be unwise to dismiss the air force

completely the sheer number of aircraft it

could employ in any conflict could swamp

defenders and allow a few aircraft carryingnuclear devices to penetrate air defences.

Pakistan

With the recent turmoil in Pakistans domestic

politics it is difficult to predict Pakistans long -

term procurement plans. After US sanctions

imposed in the wake of nuclear tests were

lifted due to its key role as an ally in the war onterror, Islamabad ordered 18 F-16C Block 52s

in late 2006 and this has now been approved

by the US in a $498m deal. As part of the

agreement, Lockheed Martin will also refur-

bish eight ex-US Navy P-3C Orions forPakistan.

30s and three Su-27s as well as 22 unspecifiedassault helicopters. The Su-30MKs add to the

ten already ordered by the air force.

Japan

Rising tensions in recent years have intensifi

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