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This article reports that even as 2005 ended with Asian carriers splurging on orders, their acquisition plans for this year include more than 200 additional short and long-haul aircraft. It seems the region, led by China and India, has an insatiable appetite for new aircraft. Studies by the International Air Transport Association put their combined profit in 2005 at $1.5 billion, compared with $1.3 billion in Europe, and a net loss of $10 billion in the U.S. The International Civil Aviation Organization's forecast expects the Asia-Pacific countries to supplant Europe this year as the second largest aviation region after North America.

Whether in new airliners, fighter competitions, air traffic management requirements or finding new ways to calm jittery passengers, the Asia-Pacific region has regained its place as the world's most dynamic market. The aerospace industry gathers this week in Singapore for Asian Aerospace 2004. Airbus and Boeing are both putting new versions of long-haul medium and large transports into the market this year. Singapore Airlines Ltd. debuted the Airbus star earlier this month on a flight the carrier has long wanted to make — nonstop from Los Angeles to Singapore.

Reports on worldwide airplane manufacturers' focus on Asian airlines in the wake of the region's economic recovery in 2000. Other factors that contributed to the delay of the introduction of aircraft; Efforts of the region's largest carriers to join global alliances to increase their marketing strengths; Implications of having a worldwide fleet of code-sharing partners; Passengers' use of alliance members' hubs.

The article reports on the predominance of unclassified military work at Boeing that is heavily influenced by a technology push from the private sector in such areas as mobile users, video multi-casting and voice over Internet protocol (VoIP) services. The leaning process of the company to the civil side is manifested by its emphasis on developing various applications that commercial customers have asked like anti-jamming devices to protect their cellular transmissions.

The article reports that Boeing Co. is flight testing the last of the 777s and counting on its new range and cargo advantages to fill out the mid-sized family. It has been a quiet flight test program for the 777-200 Longer Range because the hard work's already been done. This is the second range extension to the basic 777. It will give Boeing the title for the farthest-flying aircraft in commercial service. Launch customer Pakistan International Airlines will inaugurate 777-200LR services early next year on flights from Karachi, Pakistan to Houston, Texas.

This article reports that as passenger and cargo traffic continues what has been the airline industry's greatest sustained boom, the Asia-Pacific region's major hubs are restructuring in response to new competitive pressures. Markets are shifting for long-standing hubs such as Hong Kong, Singapore and Bangkok. But it's the continuing expansion of China's economy, now 30% of Asia's total output that remains the big news, as it has for a decade. Long the provenance of United Airlines and Northwest Airlines, China trade is now being sought by Delta Air Lines, American Airlines and Continental Airlines. Safety concerns caused China to curtail airline expansion a decade ago while it focused on crew training and regional and international airport growth. Until recently, Hong Kong's Cathay Pacific left the China market to Dragonair, an affiliated regional carrier that has grown more independent since Hong Kong became part of China.

This article reports that with network carriers facing bankruptcy and others struggling to keep aloft, it's hard to think of the U.S. airline industry optimistically. Its current forecast predicts passenger demand reaching preSeptember 11, 2001, levels by next year and growing 4.3% annually through 2015. Part of this is related to the business strategies of individual carriers, such as Delta Air Lines concentrating on Atlanta Hartsfield International Airport while pulling back from Dallas-Fort Worth, where American Airlines holds sway. Chronic congestion at O' Hare, the world's busiest airport last year in terms of aircraft movements and second busiest in passenger levels, has put it in the headlines. United Airlines and American, which account for 88% of Chicago O' Hare's traffic, have confidence in the long-term future of hub-and-spoke systems that O' Hare epitomizes.

Researchers at the U.S. National Aeronautics and Space Administration are completing the first phase of testing a "free-flight" operating concept that will allow pilots with specially equipped aircraft to choose their own flight paths and provide their own en route separation. Called Distributed Air/Ground Traffic Management, the program has a near-term aim of proving the feasibility of autonomous operations. Eventually, the intent is to make this experiment in how part of a new type of National Airspace System will work less a laboratory exercise and more of a demonstration for potential users by perfecting its systems and procedures.

Asian airline carriers are using deals and appeals to lure passengers back. With discounts of as much as 30%, Asian airlines are starting to see brighter days after a harrowing experience with severe acute respiratory syndrome (SARS). As more people climb on board, fares are starting to creep back up after hitting rock bottom in May 2003. All Nippon Airways, which had suspended or reduced most of its services to China, Taiwan and Southeast Asia, has resumed most of them, including those to Beijing, Dalian (China) and Singapore. Malaysia Airlines' (MAS) flights to Australia and Europe are operating with 82% load factors, while those into Southeast Asia are close to 90% full. Singapore Airlines (SIA) reduced nearly 40% of its capacity at the peak of the epidemic, parked 34 aircraft and phased out its Airbus A310-300 and A340-300 fleets ahead of schedule. Another hard-hit destination, Taiwan, is seeing traffic return faster than expected.

Reports the status of computer technology unit and the software compliance of Delta TechOps company in Atlanta, Georgia. Balance between business operations and software technology of the company; Terms of functionality and usability of the company; Number of aircraft operating nationwide.

Details the issues of ownership of Air New Zealand (ANZ) and Ansett Australia. Proposed partnership of Qantas Airways with ANZ on a stock swap; Requirement of New Zealand Law on parliamentary approval for foreign carriers; Impact of Asian economic crisis on airlines.

Focuses on Boeing's foray into the airline maintenance, repair and overhaul services. Effort to encompass an airline's entire engineering, logistics and maintenance process; Development of product called Enterprise One; Acquisition of AeroInfo Systems Inc.

Looks at the performance of the airline industry in Hong Kong, China. Expansion of the passenger terminal at the Chek Lap Kok International Airport; Description of the airport; Growth in aircraft movements; Plan by airport clients to expand their business operations.

Reports on the beneficial effects of Asia's economic recovery on the worldwide aerospace and airline industries. Economic growth of members of the Association of Asia Pacific Airlines through 1999; Transition period of the Asia Pacific manufacturing sector; Appeal of the Chinese market for joint manufacturing efforts; Consolidation in the Japanese aerospace industry; Additions to Singapore's aerospace industrial base.

Discusses the state of the airline industry in Asia, as of June 1999. Growth experienced by Asian load factors; Industry analysts' comments on the turnaround being experienced by the industry in the region; Passenger and cargo yields of several Asian airlines.

Reports on Cambodia's development of its business and tourism links to the outside world. Enlistment of foreign experts to help the country establish a national airlines; Singapore Airlines purchase of an equity position in Royal Air Cambodge (RAC); Singapore Airlines' leasing agreement with Bouillion Aviation Services for RAC's aircraft.

Reports on Lufthansa German Airlines' introduction of domestic and international freight services and search for hubs and partners to preserve its position as the largest scheduled freight carrier. Plan inclusions; Goal of privatization; Enlistment strategy; Expansion of fleet capabilities; Frankfurt Airport as headquarters; Need for timeliness; Annual growth rate foreseen in Asia.

Reports on the 15-member Orient Airlines Association's (OAA) action to protest outdated and lopsided bilateral air traffic rights with the United States. Cathay Pacific managing director and OAA executive committee chairman Rod Eddington on the issue; Clamor for fifth freedom rights and relaxed rules on foreign ownership of American carriers; Imposition of sanctions; Japan Airlines and Qantas Airways as those not seeking greater gateway access.

Presents figures from the Orient Airlines Assn.'s 15 members on load factors and performance data, which show growth in passengers and freight accompanied by growth in net profits. Figures on profit increases, operating margins, forecasts and competition; Calls for OAA carriers not to be swayed by calls for Open Skies and `closer cooperation'; Charges of protectionism; Study of departures; Details.

The article discusses the aerospace company Boeing's plan to increase production of airplanes following the delivery of the first 787 passenger jet to the airline All Nippon Airways (ANA). Information is provided on a celebration for the delivery of the aircraft, the profitability of the 787 program, and forecasts for production rates. Program management, the use of the 787 at ANA, and 787 models including the 787-9, the 787-3, and the 787-8 are examined.

The article focuses on the impact of growth in regional air services on the buying preferences of Asian carriers. Boeing vice president Randy Tinseth has acknowledged the growth of low-cost carriers worldwide despite the economic downturn, except in the U.S. It cites the move of mainline Asian carriers to expand their fleet capacity with wide-body twin-engine airplanes because of its improved efficiency and greater range. Also noted is the rapid growth of Asian budget airlines.

The article focuses on the efforts of airlines and maintenance, repair and overhaul (MRO) industry to look for ways on how to capitalize on recovery. Both industries are examining ways to operate more efficiently, improve employee training and select the best emerging technologies. At Aviation Week's MRO Americans conference, Bernd Kessler of SR Technics revealed that MRO providers are focused on developing advanced repair capabilities. John Heimlich of Air Transport Association revealed that the industry is slowing down.

The article reports that the production plans for aircraft makers Airbus and Boeing, are largely affected by a steep drop in demand and associated airline cutbacks. Airbus has already adjusted narrow-body output-cutting production to 34 aircraft per month beginning in October 2008, but merely flattened build rates on widebodies. Boeing has already announced job cuts and is expected to increase these as production is reduced.

The article analyzes the impact of the two months strike held by Boeing machinists on the revenues and earnings of the company in 2008. The full-year cost of the strike on earnings was reported to be $1.8 billion, including a 15 percent reduction in revenues at Boeing Commercial Airplanes (BCA). Boeing also said that such strike exacerbated its problems with organizational sluggishness and engineer shortage. Meanwhile, the author found poor organization and outsourcing as factors that also affected Boeing's decreased earnings.

The article reports that Emirates expects that five metric tons can be reduced from the second batch of Airbus A380s it receives in 2009, opening the way for the carrier to use it on new polar routes here that it opened in December 2008 with the smaller but longer-range Boeing 777-200LR. The Dubai-based carrier, Airbus's biggest A380 customer, will receive its fifth mega-transport in the first quarter of 2009, and the first of a second batch in the second half of the year.

The article assesses the implications of the dispute between the U.S. Federal Aviation Administration (FAA) and Congress on the agency's safety oversight for Southwest Airlines. Southwest's troubles started on March 6, 2008 when the FAA slapped a proposed $10.2-million penalty against Southwest, charging that the carrier operated aircraft without performing checks for fatigue cracking that were mandated in a September 2004 airworthiness directive.

The article reports on the problem faced by All Nippon Airways (ANA) with the delay in the delivery of the Boeing 787 aircraft. The author says that senior managers at the airline are left guessing as Boeing struggles with development problems that have led to multiple delays in the fielding of the 787. It is clear that first delivery for ANA, originally scheduled for May 2008, will not take place until at least 2009. But ANA officials are still waiting for a more definitive schedule.

This article reports on the addition of an open-rotor rig trial to complement work on future fan, turbine and compressor technologies of CFM International to step up its research efforts for a next-generation engine. The activities are being carried out under the Leap56 (Leading-Edge Aviation Propulsion) program. As airlines have upped their demands for greater fuel-burn improvements, CFMI-- the General Electric/Snecma joint venture--has added open-rotor research and counterrotating fan technologies.

The article presents information related to Evergreen Air Center's desert facility in Tucson, Arizona. The dismantling of aging aircraft is the main occupation at this facility. According to Evergreen's Marketing Director Paul Worthington, seventy-five percent of the work done by the company is heavy maintenance on all Boeing equipment including 757s, 767s and 747s. According to Evergreen President Taylor James Toomey, the industry needs some standards. A 10-member trade group in the U.S. and Europe, the Aircraft Fleet Recycling Association, was established with the help of both, General Manager Martin Fraissignes of the Chateauroux Air Center in central France and Taylor James Toomey.

The article reports on the maintenance, repair and overhaul (MRO) industry exhibiting healthy growth rates, particularly in outsourcing, in the United States. The mandate for MRO of faster turnaround times, on-time deliveries, and high quality and reliability remains strong as competition from third-party providers grows. Airline unit costs have declined substantially in this decade, from a peak of $15.90 per 1,000 assigned seat miles in 2002 to $12.50 last year. Total MRO activities grew by 1.4% last year, at cumulative annual growth rates, to $38.8 billion from $38.3 billion in 2004.

The article presents information on the change in design of Boeing's 787 aircrafts. Its decision to stretch its 787 aircrafts beyond 300 seats for long-haul operations, will move the mid-sized jet into an even more prominent role as the company's template for future aircraft designs. This twin-aisle sales strategy has been on a roll. Last week, 787 General Manager, Mike Bair said 28 airlines have made orders or commitments for 386 airplanes. Bair says Boeing's sales staff has identified another 30 airlines interested in more than 500 aircraft. The technology that's going into manufacturing and production of the 787 will be the baseline for future Boeing programs. Customers include American Airlines, Continental Airlines, Delta Air Lines and United Airlines in the U.S.

The article informs that with a 45-aircraft order from Qantas Airways Ltd. for 787s worth a theoretical $7.6 billion, Boeing Co. has added to an already enviable lead in this year's wide-body sales, sweeping past rival Airbus Industrie SA in every product category. Qantas has been facing a good-news, bad-news situation. Jetstar International is to have an initial route structure requiring 10 aircraft for point-to-point services from Australia into Asian and Pacific markets that are unprofitable for the higher-cost network that Qantas runs.

This article reports on downsizing in the aviation industry. There are reports of the industry downsizing as network carriers negotiate bankruptcy. Northwest Airlines Inc. is parking DC-9s, Delta Air Lines Inc. has begun disposing of wide-bodies and 737-200s, with more cuts to come. Probably not. It's an unfolding story, but annual passenger growth rates reached 11% last year and are at 5-7% this year. Despite hurricanes and terrorism, there are continued signals of expansion rather than retrenchment. International Lease Finance Corp. President John Plueger points to another indicator. For the last 18 months, lease rates across the board have been increasing, he says.

This article informs that Boeing Co.'s drive toward modularity in the Boeing 787 aircraft has arrived in the cabin with its selection of Thales as the first recommended supplier of an inflight entertainment system in a passenger cabin designed from scratch to be fully wireless. Boeing Vice President Mike Bair, general manager of the 787 program, says the wireless IFE network i-8000 will afford an appreciable savings in installation weight and cost, and cut the time it takes airlines to reconfigure aircraft "from hours to minutes."

This article reports that launch of a freighter version of the 777 means Boeing will enter the Paris air show in two weeks having filled out the family, which has now accumulated 681 firm orders from 38 customers. As expected, Air France-KLM's May 19 order for five 777 freighters was enough to launch the freighter program. Boeing Vice President and 777 Program Manager Lars Andersen said the company has adjusted the freighter's range and performance slightly since its introduction to reflect airline comments that payload was preferred over range.

The article reports that Boeing Co. expects defense and intelligence markets to remain strong through 2006 as airlines continue a gradual recovery leading to 7% revenue growth and 20% higher earnings per share next year over 2005. Boeing Commercial Airplanes secured 63 gross and 46 net orders during the quarter and held a contractual backlog of $68.7 billion, compared with $70.4 billion at the end of 2004. More than 250 order commitments were gained in the period. Interest in the 737, 777 and 787 will push the backlog up.

The article informs that Boeing Commercial Airplanes Co. has, at the turn of the century, immersed itself in the Internet to accelerate delivery of spare parts and distribute service bulletins. The millennium's dawn was topsy-turvy for airlines. Asian carriers were emerging from a prolonged slump. European governments were losing their appetite for propping up money-losing carriers against low-cost competitors. Most American carriers were still in denial about the need to reduce operating costs drastically. But worldwide shocks of terrorism, war, health crises and high-cost fuel caught everyone's attention.

The article reports that airport expansions in Japan are making it easier for carriers to operate as they serve Asia's busiest national market. They also underscore how readily the Japanese adopt passenger-friendly security techniques and the latest in electronic gadgetry to improve airport operations. Two recent projects are outstanding in this regard: the new Central Japan International Airport in Nagoya, and Tokyo's busy Haneda airport. In 1951, historic Haneda was the first to open international commercial services following World War II.

The article focuses on India's SpiceJet, a New Delhi-based startup that will spend $ 630 million to buy 20 737-800, with deliveries beginning in 2006. Ethiopian Airlines, which flies an all-Boeing fleet of 737s and 767s, said it will buy five of the 767's successor, the 787. The competing Rolls-Royce Trent 1000 captured All Nippon Airways' contract to equip its 50 aircraft. Boeing has confirmed previous reports that Buraq Air of Tripoli will buy six 737-800s. It also said the U.S. Air Force is buying three 737-700s as C-40C military transports for the 932nd Airlift Wing at Scott AFB, Illinois.

The article reports on business plans of All Nippon Airways Co. Ltd. (ANA). In its midterm plan, ANA drops Boeing 767s in favor of more 777-300ERs. ANA expects to order additional 777-300ERs and is looking at a "new large" aircraft type over the next three years. Four 777-300ERs are to be added to the six ANA already has ordered. Boeing has delivered the first of those and is due to send another to Japan in May. ANA's three-year, midterm corporate plan released last week shows its 777 and 747 fleets remaining its long-haul choice through 2007, after which the plan opens to new possibilities.

This article presents information related to sale of Boeing airplanes to Japan Airlines (JAL) and Continental Airlines Inc. Boeing Co. recorded an end-of-the-year bonus when Continental Airlines became the first U.S. network carrier to order the 7E7, buying 10 of the mid-sized jets with a book value of $ 1.3 billion. Announced last week, the decision to buy came on top of a commitment for 30 aircraft by JAL made two weeks ago. Taken together, the two commitments are a double blessing for Boeing. Both carriers are among the airline establishment and both are advocating the long-term value proposition of the 7E7 as the revolutionary long-haul, cost-saving aircraft that Boeing is espousing in its marketing.

This article presents information on fuel purchasing agreements. It is informed that joint fuel purchasing agreements at three key hubs— Los Angeles, San Francisco and London Heathrow— have saved Star Alliance members $50 million since last year. Called Star Fuel Co., the joint fuel buying agreement has recently been extended to Charles de Gaulle airport, says Star chief executive officer, Jaan Albrecht. Star Fuel leverages the joint buying power of member airlines and will expand airport-by-airport throughout the 15-member airlines' worldwide network.

This article reports that in a special meeting last week, the board of directors of AU Nippon Airways said the Trent 1000 will power its fleet of 50 7E7s, beginning with the first delivery in 2008. Rolls' selection was an upset for General Electric Co., which powers the bulk of ANA's current fleet, and is campaigning for the GenX in the 7E7 competition. At list prices, the contract is worth $1 billion. ANA's 7E7 contract, which launched the Boeing program on Apr. 26, is valued at $6 billion. Of the 7E7's four customers, only one other has made an engine selection: Air New Zealand Ltd. chose the Trent 1000 for its two 7E7s.

The article presents information related to the airlines industry. Airbus Co.' top executives are convinced that the airline industry's downturn is coming to an end and despite fragile short-term sales expectations, are planning for better times. Turkish Airlines last week unveiled in Istanbul a decision to order five A330-200s, 19 A320s and 12 A321s after evaluating rival offerings submitted by Toulouse and Seattle. Kingfisher Airlines, an Indian startup, ordered four A320s powered by CFM56-5B turbofans and optioned an additional eight.

Airbus Co. controls more than 50 percent of the market and the Boeing Co. says it's time to clear the air with a new, enforceable agreement. And at the Farnborough air show last week, Boeing Commercial Airplanes president Alan Mulally stepped up the tempo. Airbus continue to subsidize and provide launch aid for each of their programs. What Boeing objects to is the usual practices of European governments in providing financial aid. Airbus points to a $3.2-billion incentive package that the state of Washington approved to assure 7E7 assembly in Everett.

As it completes its absorption of domestic carrier Japan Air System (JAS), Japan Airlines (JAL) is sticking to a long-held maxim that passengers prefer large, twin-aisle aircraft. The combined JAL and JAS fleets of 276 aircraft are spread over 13 fleet types and 17 models, from Bombardier Dash 8-Q40s, Saab A340s and Nihon Y-11s through Airbus A300B2/B4 and A300-600Rs, DC-10s and MD-11s, Boeing 767s, 777s and 747 classics and-400s. Engines are predominantly from Pratt & Whitney, General Electric and CFM International, but a few are from RollsRoyce and International Aero Engines.

The aerospace and defense industry seems to be waiting to see if the year fulfills its promise of an airline turnaround, waiting to see who will buy a pair of new airliners, and waiting for a next generation of military aircraft as of March 2004. Asian discount carriers are making the region's world-famous full service carriers nervous, and there is evidence of a "new" Asia emerging, led by India, which is supplanting China as the region's "sleeping giant." The regional airline segment has been the strongest growth area of the airline industry worldwide in the last two years, said M. Barry MacKinnon, Bombardier Aerospace vice president of marketing.

This article focuses on the potentiality of Latin American airline market to offer better low-cost maintenance, repair and overhaul (MRO) facilities than their Asian counterparts. As North American carriers gain union concessions that will permit them to increase MRO outsourcing Latin Americans are in a position to capture narrow-body overhaul contracts—if they overcome doubts about quality of their work and improve their turn times.

Asian carriers have weathered recession and terrorism, but the mysterious severe acute respiratory syndrome (SARS) virus is another matter. It threatens to erode the financial reserves of many, and has disrupted network operations for all. Asian heads of government met in Bangkok last week to map strategy as carriers continued damage-control measures to their already weakened schedules. Meanwhile, frightened passengers are skirting common routings if they choose to make transcontinental flights. The situation is severe enough that, for some countries, a sizable portion of gross domestic product growth is at stake because they are so dependent on tourism. While traffic in Europe has been flat, and drastically low in the U.S., Asia has been the industry's one strong region. But the SARS crisis has put Asiancarriers in the critical ward.

This article provides information on the business plans an aviation company Boeing Commercial Airplane Group. It seek relief on taxes and regulations, as it pressures suppliers to drive costs out of the 7E7.Assuming it is launched, the new aircraft will probably have a greater impact on Boeing's future product development and manufacturing strategy than on the company's commercial airplane lineup. Although Boeing hasn't decided exactly how this will change it is stern on making changes. Bob Watt, Boeing vice president for government and community relations, is carrying a list that includes the need for transportation improvements in greater Seattle, reform of unemployment insurance and worker compensation tax rates, revisions to the state business and occupation tax code, revisions to its construction permit and code process, and K-12 school reform so students are better prepared to work at Boeing. INSET: A Mid-Range Dilemma.