Tuesday 19 March 2013

Boeing puts 787 battery to tough tests it once avoided

New York/San Francisco: To get its 787 Dreamliner flying again, Boeing Co is testing the plane's volatile battery system to a rigorous standard that the company itself helped develop - but that it never used on the jet.
Boeing's decision has thrust an arcane standard known as RTCA to the center of the debate over whether Boeing and the US Federal Aviation Administration (FAA) were rigorous enough when they originally set standards for the 787 battery system in October 2007. The debate could have broad implications for the future use of lithium-ion batteries on aircraft.
A committee co-chaired by Boeing published safety guidelines in March 2008 for using lithium-ion batteries on aircraft to minimize the risk of fire. But because they arrived five months after the FAA had approved a set of special conditions for the fire safety of the Dreamliner battery system, Boeing did not have to meet the more stringent guidelines. The FAA never required it, and Boeing did not choose to use them.
Air India gets its first Dreamliner
Last week, Boeing decided to shift to the tougher RTCA (Radio Technical Commission for Aeronautics) standard for a revamped 787 battery system. The move came after regulators grounded Dreamliners worldwide in January following a battery fire on a Japan Airlines Co 787 at Boston's Logan Airport and a battery meltdown on an All Nippon Airways Co flight in Japan.
Some battery industry experts voiced surprise that Boeing did not apply the RTCA standard when it was published in 2008. Even though the tests were not required, they would have served as a check on Boeing's design assumptions and possibly prevented the battery from overheating in January, they said.
John Goglia, a former board member of the National Transportation Safety Board (NTSB), said he sees the use of the RTCA standard "as an admission that they didn't do a good job in the beginning....
"It is going to be part of the final NTSB report," he added. "It will be at least mentioned in there."
The NTSB last month questioned the assumptions Boeing and the FAA made when certifying the battery system in 2007. The safety agency plans to hold a hearing on the issue next month and is expected to recommend changes to FAA procedures after completing its investigation into the battery failures.
Boeing spokesman Marc Birtel said Boeing did not use the RTCA standard earlier because it came "after we had completed our certification plans and begun our testing efforts."
Under the special conditions, the Dreamliner passed "a rigorous test program and an extensive certification program conducted by the US Federal Aviation Administration," he said.
BOEING OPTIMISTIC
The RTCA test will be used on an extensive new battery system Boeing unveiled on Friday. It adds safeguards to prevent fire, keep fumes from entering the cabin and ensure the jet's ability to fly and land are never compromised.
Boeing said it already is about one-third through testing with the tougher RTCA regimen, known as "DO-311" and is likely to finish "within a week or two" and have the jet back in service in weeks, not months.
But the plane's biggest customer, All Nippon Airways, called that a best-case scenario that was too uncertain to use in the airline's planning.
"We don't know how long the Federal Aviation Administration will take to finish its checks," Osamu Shinobe, architect of ANA's 787 strategy, said in an interview.
A senior Boeing engineer, asked on Friday why Boeing had not used the RTCA standard earlier, suggested the standard was too broad.
The RTCA standard "covered a wide range of lithium-ion batteries and it contained roughly 104 requirements," said Ron Hinderberger, vice president of 787-8 engineering. "Some of those requirements went beyond the requirements that were established in the special condition."
The FAA did not respond to questions on why it did not apply the standard earlier or Boeing's decision to use it now. The FAA adopted the standard in April 2011.
Richard Lukso, the former head of SecuraPlane Technologies, the Arizona company that supplied the charging unit for the 787 battery, said Boeing should have asked its battery subcontractor, GS Yuasa Corp of Japan, to use the RTCA standard. GS Yuasa declined to comment.
"It was (Boeing's) responsibility to request that test," Lukso said.
TOUGHER STANDARDS
The RTCA, formed in 1935, is a private, not-for-profit group whose policy recommendations are often used by the FAA. Its battery committee co-chaired by Boeing - whose members included employees from GS Yuasa, the battery system maker Thales SA of France and the FAA - drafted a 68-page document to set "minimum operational performance standards" for rechargeable lithium-ion batteries used as power sources on planes.
These guidelines "are generic in nature," the committee said, "and serve only as a baseline for the design and test of specific battery systems and equipment pairings."
The document included clearer and more specific tests than the FAA set, along with tougher standards. For example, the 787 special conditions say Boeing's battery system must prevent "explosive or toxic gases" from accumulating in "hazardous quantities" in the airplane in any situation that is not "extremely remote." In FAA parlance, "extremely remote" means once in 10 million flight hours.
But the DO-311 standards say the tests must show the chances are "extremely improbable" - FAA code for one in a billion flight hours.
Boeing's tests, which included puncturing the battery with a nail and subjecting it to heat, predicted the chance of a fire was less than one in 10 million flight hours. But when the plane was in use, two batteries overheated and emitted smoke and fumes after less than 100,000 hours, according to the NTSB.
Lukso, who left SecuraPlane to start his own lithium-ion battery business, acknowledged that the RTCA standards are tough. At his new company, he spent $6 million and several years without successfully building a battery that could pass the test now in front of Boeing.
Another battery maker, EaglePicher Technologies, of Joplin, Missouri, passed tests modeled on DO-311, but used a less volatile chemistry than Boeing, known as lithium-iron phosphate.
"To successfully pass the containment (test), we needed iron phosphate," Ron Nowlin, general manager of aerospace systems for EaglePicher, said in an interview earlier this year
http://www.ndtv.com/article/world/boeing-puts-787-battery-to-tough-tests-it-once-avoided-344154
 

Jet-Etihad deal stuck on investor protection pact

Jet Airways-Etihad Airways deal has hit an air pocket over the issue of protection to its investment in India.
 The two airlines have been negotiating a stake sale deal since last August   in which Etihad will buy 24% in Jet Airways. However, the deal has been held up as India and UAE government are yet to conclude the bilateral investment promotion and protection agremeent (BIPA).
 Prime Minister Manmohan Singh was due to visit Abu Dhabi this week enroute to BRICS summit in South Africa but cancelled his trip to Abu Dhabi. This has put the Jet-Etihad deal on the backburner.
 On Monday, a news channel flashed that the deal has been called off owing to differences between two sides but Jet Airways denied it. "The information is not correct and at the same time is merely speculative.''

Jet sources, however, confirmed that the deal had been held up over the issue of investor protection. An official also said that there was still room for negotiation and Etihad has not explicitly said it will not sign the agreement until BIPA is signed.
 Etihad has also sought an option to hike its stake to 49%. Sources, close to the deal, say Etihad has asked for its representation on the board of the Indian airline, in sync with its shareholding. It wants operational control over the airline, as well as its fleet acquisition plans. The West Asian carrier has also sought protection under a Bilateral Investment Promotion and Protection Agreement (Bipa), arguing it does not want to face a situation similar to what telecom giant Etisalat faced in India.
http://www.business-standard.com/article/companies/jet-etihad-deal-stuck-in-absence-of-investor-protection-pact-113031800238_1.html

Lion buys 234 Airbus A320s for $24b

European aerospace giant Airbus has landed a massive deal from local budget carrier Lion Air to buy 234 of its popular Airbus A320 narrow-body aircraft worth up to US$ 24 billion.
Lion president director Rusdi Kirana said that the order might comprise 174 Airbus NEOs (new engine option) and 60 Airbus CEOs (current engine option), although the airline had until next year to determine final configurations.
"These aircraft will be used for two new airlines in the Asia Pacific region that we plan to have by 2014," Rusdi said in Paris. "The first six airplanes will be delivered in 2014."
Previously it was reported that European airframer giant Airbus and Indonesian budget carrier Lion Air would announce an order of 200 narrow-body aircraft A320 aircraft in Paris, France, later in the day, French newspaper Les Echos reported early on Monday.
It was reported that French President Francois Hollande will oversee the announcement ceremony of which details have yet to be revealed.
The huge order, potentially worth almost US$20 billion, marks a major shift in Lion’s procurement strategy, which until recently only included both narrow-body and wide-body Boeing aircraft.
In its inventory, the low-cost carrier (LCC) has a Boeing 737 classic series, 737-800 and 737-900ER narrow-body aircraft. Lion also operates two Boeing 747-400 wide-body aircraft for its Saudi Arabia routes. Lion has also ordered a Boeing 787 Dreamliner.
It is not yet clear whether the order would be a mix of Airbus A320 classics and the re-engined A320 NEO. NEO stands for new engine option, which offers better range and fuel economy.
Previously on Feb. 14 2012, Lion Air signed a contract to buy 230 units of Boeing 737’s consisting of 29 737-ERs and 201 units of the 737-9 MAX, Boeing's answer to Airbus’s A320 NEO.
The contract was signed at the Singapore Airshow in Changi, as a follow up to a memorandum of understanding (MoU) that was signed in Bali on Nov.18, 2011. The MoU was signed with the presence of US President Barack Obama, who attended the ASEAN Summit.
Lion's director of general affairs, Edward Sirait, refused to reveal any details until the announcement was made. He also said there was no change in Lion's procurement strategy, saying it would be better to have comparisons.
“While it is a must for budget aircraft to operate as efficiently as possible, it does not limit operated aircraft only to a single type,” Edward said over breakfast.
“What we are looking for is the efficiency.”
“I believe the limit is 50 units of the same type of aircraft. Beyond that, you have the liberty to operate other type of aircraft that also must meet the efficiency level,” Edward said.
Other than Lion Air, the Lion Group also flies ATR-72-500/600 twin turboprop aircraft for its Wings Air feeder airline. The company is set to launch its own full-service airline, Batik Air, later this month and is preparing its Malaysia-based joint venture, Malindo Air.
http://www.thejakartapost.com/news/2013/03/18/airbus-lion-set-announce-order-200-narrow-body-aircrafts.html

Airports Authority draws up plans for 24 cargo terminals

Airports Authority of India (AAI) will convert redundant passenger terminals at 24 airports into cargo terminals.
Inaugurating the air cargo complex at the Mangalore airport here on Monday, Ajit Singh, Union Civil Aviation Minister, said AAI has 24 airports in the country that will be used for domestic cargo operations.
The old terminal buildings will undergo minor modifications since the facility requires both city side and air side access.
Singh said that to develop cargo hubs, it is imperative to develop the regional airport and establish cargo terminals to provide connectivity with metros. To achieve this, the AAI has already set up cargo terminals in the southern region in Coimbatore, Tiruchi and now at Mangalore.
The cargo terminal in Mangalore will provide an opportunity to exporters of perishable cargo.
The terminal has 1,400 sq metres for international cargo and 1100 sq metres for domestic cargo.
The facility has an annual holding capacity of 5,000 tonnes for international import cargo, 13,000 tonnes for export cargo, 18,000 tonnes for domestic in-bound cargo and 21,000 tonnes for domestic out-bound cargo.
The cargo complex is electronically linked with a centralised cargo server at Kolkota. Initially, scheduled flights will carry air cargo in passenger aircraft. Singh said the other planned works at Mangalore airport include extension of runway. This will require additional 258 acres of land.
He requested the Karnataka Government to provide land to AAI. He said AAI has invested around Rs 250 crore for the development of Mangalore airport till now.
http://www.thehindubusinessline.com/industry-and-economy/logistics/airports-authority-draws-up-plans-for-24-cargo-terminals/article4522562.ece
 

Jet Air turns volatile on Etihad deal call-off rumours

Shares of Jet Airways plunged as much as 13.6 per cent in intra-day trade on Monday on reports that talks with Abu Dhabi’s Etihad Airways have run into rough weather. The scrip, however, recovered later to end the day at Rs 559.15, down 2.70 per cent, on the BSE.
About 27 lakh shares changed hands on the BSE on Monday against the two-week average quantity of 8.32 lakh.
When contacted, Jet Airways' spokesperson said the information was incorrect and speculative. 
Advantage Etihad
Industry experts say Etihad’s interest in seeking management control in Jet Airways was likely to be the bone of contention in the deal coming through. “The deal is essential for Jet Airways. Etihad would have an upper hand in this deal,” said Jasdeep Walia, aviation analyst, Kotak Institutional Equities Research. 
Etihad is governed by a board of directors under the chairmanship of Sheikh Hamed bin Zayed Al Nahyan. If the deal gets through, this would be the first since India allowed foreign carriers to buy up to 49 per cent in domestic carriers, which are struggling with stiff competition and high operating costs.
According to reports, Etihad board is likely to meet on March 22 to discuss the said deal.
Currently, promoters hold 80 per cent stake in the company. While foreign institutional investors have an exposure of 4.27 per cent, domestic instutitions, including LIC, hold 4.08 per cent equity in the company. Retail investors holding stands at about 5 per cent.
Stock of Jet Airways had nearly doubled in value in the past 11 months to reach a high of Rs 622.10 in January. While in the first three weeks of February, the shares slumped over nine per cent, it recovered marginally by 4.3 per cent in March.
In a recent report, the Centre for Asia Pacific Aviation had said Etihad was expected to acquire 24 per cent stake in Jet Airways, which could result in an inflow of $330 million into the Indian airline. The report valued Jet Airways at $1.3-1.4 billion (about Rs 7,000 crore). The current market cap of Jet Airways is about Rs 4,827 crore.
The airline posted a net profit of Rs 85 crore for the quarter ended December 31, 2012, against a net loss of Rs 101 crore in the corresponding period last year.
Total income from operations rose nearly seven per cent to Rs 4,206 crore in the third quarter, from Rs 3,939 crore in the year-ago period.
http://www.thehindubusinessline.com/markets/stock-markets/jet-air-turns-volatile-on-etihad-deal-calloff-rumours/article4522691.ece?homepage=true&ref=wl_home

Gulf Air to axe another 400 jobs

KOCHI: Gulf Air, the flag carrier of Bahrain, will cut another 400 jobs as part of its restructuring plan, revealed Kamal bin Ahmed Mohammed, minister of transportation, Bahrain, in Kochi on Monday. He was talking to the reporters in Kochi on Monday.
 "When we started, we had 3,800 employees, and after the restructuring, it may even go below 3,000," Mohammed said. The restructuring plan is for two years and would cost 185 million Bahrain dinar to the government. The staff-cut will happen mainly in Bahrain and the nearby stations. We have developed a new strategy for the airline, to align with the economic strategy of Bahrain. This airline has to be managed efficiently," said Mohammed, who is also the acting chief executive of the Bahrain Economic Development Board.
Mohammed also said that his country is looking to enhance the relationship with Kerala. "We had general discussions with the state government on investing in real estate projects," he said. The growth rate of the economy of Bahrain will be back in track this year, said Mohammed, who is in charge of the surface, marine and air transports of the country. "The economy grew by 3.9% in the calendar year 2012, and I expect it to grow by 5% this year," he said.
http://timesofindia.indiatimes.com/business/international-business/Gulf-Air-to-axe-another-400-jobs/articleshow/19049258.cms

Sri Lanka opens new Chinese-funded airport

Mattala, Sri Lanka: Sri Lanka’s president opened the country’s second international airport on Monday, intended to help spur a new economic hub and act as a gateway to the island’s southeast.
 The Sharjah-based low-cost carrier Air Arabia on Monday became the first foreign airline to start scheduled services out of Mattala Rajapakse International Airport, about 270 kilometres (168 miles) south of the capital Colombo by road.
Built with funding from China’s Export-Import Bank, the new $206 million facility in Hambantota district can accommodate the Airbus A380, the biggest airliner in service, and is surrounded by a free-trade zone.

Its business is geared towards transporting migrant workers from Sri Lanka to the Middle East, but national carrier Sri Lankan airlines will bring in tourists interested in the nearby wildlife sanctuaries of Yala, Udawalawe and Bundala.
 Fly Dubai, the low-cost carrier of Emirates, will begin scheduled services next month.
 President Mahinda Rajapakse, whose regime has strained relations with the West, has turned to China for funding for a range of infrastructure projects including roads and a deep-sea port in Hambantota, his home constituency.
 “We have been criticized for taking loans to build this airport,” Rajapakse said at an inauguration ceremony. “The loan was not for consumption, but to build infrastructure. We will build more power stations, highways and ports.”
 Tourism has taken off in Sri Lanka since the end, in May 2009, of decades of fighting, when government forces crushed the separatist Tamil Tiger movement in a campaign dogged by allegations of war crimes.
 The number of tourists visiting Sri Lanka exceeded one million in 2012, marking a 17.5% increase over 2011, while income from the sector jumped 25% to $830 million last year, official figures show
http://www.livemint.com/Politics/bwINuOwjYgIiFuZdeeXvxM/Sri-Lanka-opens-new-Chinesefunded-airport.html

SpiceJet not worried about AirAsia's entry: CEO Neil Mills

MUMBAI: SpiceJet, the low-cost carrier promoted by Kalanithi Maran, is not "too worried" about the impending entry of AirAsia, its CEO said, in what is the first reaction since the Malaysian budget airline announced in February its JV with Tata Sons. AirAsia having made its intentions public that it will focus on catering to the market in south India before spreading its wings to a pan-Indian presence, made many analysts to reason that SpiceJet, with core of its operations in the south, will be impacted the most by the entry of AirAsiaReacting to AirAsia's entry in the Indian market where operational costs for airlines have shot up by 40% in the last couple of years due to the levy of high taxes on fuel and a drastic increase in airport tariffs, Neil Mills, SpiceJet CEO, said AirAsia might find it difficult to replicate a model of charging for every value-added service in India like it does elsewhere, which allows AirAsia to keep costs low.
 India's civil aviation sector is governed by an archaic Civil Aviation Act of 1937, an era when the concept of low-cost did not exist at all. "The 1937 Act did not envisage the low-cost model and that law stipulates what governs what the airlines can do and (can) not do in India. So, we are not even allowed to charge for allocated seating here so how are they (AirAsia) going to do that? Will a different set of rules apply for them?" wondered Mills.
http://articles.economictimes.indiatimes.com/2013-03-18/news/37815106_1_airasia-neil-mills-low-cost-model