Malaysia Airlines website hacked by islamists

The official Malaysia Airlines website has been hacked by a group claiming to support Islamist terrorist organization ISIS.

On accessing the website, users were presented with a picture of a lizard, which read "Error 404 - the plane could not be found" and "Hacked by Lizard Squad -- Official Cyber Caliphate”,informs Lenta.ru with the reference to CNN. The browser tab also read "ISIS will prevail."

The airline added the issue has now been resolved with its service provider and the system is expected to be fully recovered within 22 hours.In a post on its Facebook account, the airline denied its internal servers, which contain passenger information, had been compromised. It said it's the airline’s Domain Name System (DNS) that had been hijacked, redirecting the users to the hackers' website.

Source and image: Lenta.ru / Malaysian Airlines

Flying solo: will co-pilots become a thing of the past?

It is no secret that crew-related costs typically represent 10-20% of an airline’s cost structure – as much, if not more, than any other cost bucket, except fuel, at least before its recent drop in costs. Naturally, reducing the size of cockpit crews for commercial aircraft has been a topic of theoretical discussion among aerospace industry representatives for many years now. Nevertheless, while today realization of such a solution is far less science fiction than it was a few years ago, the possibility of its actual implementation still remains in question.

In 2010 Ryanair's CEO Michael O'Leary made another one of his controversial statements, declaring he wants to eliminate co-pilots in his Boeing 737 jets. In an interview with Financial Times he argued that they are essentially unnecessary in modern aircraft because most of the flying is highly automated. “In 25 years with over about 10 million flights, we’ve had one pilot who suffered a heart attack in flight and he landed the plane,” he told the paper. While O’Leary is well known for making far more outrageous comments, his thoughts on single-pilot operations are not new to aviation, and are even backed by some of the industry players.

For instance, in 2013 a big European research programme has begun to look at the possibility of a single-pilot flight deck for commercial operations. The project, called ACROSS (“Advanced Cockpit for Reduction of Stress and Workload”), is funded with €30 million and brings together a team of 35 industry and research partners, including such giants like Thales, Airbus and Boeing. Moreover, NASA has recently reported it’s advancing an airliner flight deck of the future that features one seat in the cockpit for a captain and one on the ground, occupied by an operator filling the role of either “super dispatcher” or first officer. However, the actual benefits of such a concept remain ambivalent.Flying solo: will co-pilots become a thing of the past?

“Co-pilots are currently employed on flights to monitor the other pilot and intervene if there is a problem or share the work if there is too much for one person to do. So, if new technology could carry out all those functions, theoretically we wouldn’t need a second pilot anymore,” comments Skaiste Knyzaite, the CEO of AviationCV.com. “However, there are other important questions to be asked, even if their importance is more for the long-term. Where will the PICs of the future come from if they have no apprenticeship as first officers? Can new pilots go straight to command? Would you mind if the only pilot on your A380 was a recent piloting graduate?”

Five years ago, O’Leary argued that since regulations allow trains to operate with just one driver, the practice ought to be admitted at least for short-haul flights. According to Ryanair’s CEO, flight attendants could cover for co-pilots, who he stated are essentially required only to “make sure the first fella doesn’t fall asleep and knock over one of the computer controls.” However, while this scenario is already common place in the military with success, the situation is a little different when dealing with paying clients, therefore the risk factor is increased. After all, the international aviation system has reached unmatched levels of safety and reliability not only because of greater automation, but also thanks to a widely accepted global standard for cockpit behaviour and cooperation. In the meantime, there are some other obstacles the players are likely to face.

“Of course, airlines would like to reduce pilot costs. For example, instead of sending four pilots on a long-haul flight, they could send just two. Moreover, it may be the answer to the industry-wide worries that the worldwide pool of pilots will decrease over the next two decades while air-travel volume are expected to double. However, it is likely that current practicing pilots will not welcome this direction as it could potentially mean the end of their career. Moreover, current regulation is likely to be the real stumbling block to this progression,” shares the CEO of AviationCV.com “Nevertheless, one needs to take such developments with all the seriousness. After all, we might be on the verge of an industry-wide revolution.”

Source and image: AviationCV.com

U.S. AF identifies Boeing 747-8 platform for next Air Force One

Secretary of the Air Force Deborah Lee James, in coordination with the Undersecretary of Defense for Acquisition, Technology and Logistics Frank Kendall, has determined the Boeing 747-8 will serve as the next presidential aircraft, commonly known as Air Force One.

“The presidential aircraft is one of the most visible symbols of the United States of America and the office of the president of the United States,” James said. “The Boeing 747-8 is the only aircraft manufactured in the United States (that), when fully missionized, meets the necessary capabilities established to execute the presidential support mission, while reflecting the office of the president of the United States of America consistent with the national public interest.”

Analyses of the capability requirements conclude a four-engine, wide-body aircraft is required to meet the needs of the Air Force One mission. Market research determined there are two four-engine platforms that could meet the requirements; the 747-8 manufactured by Boeing in the state of Washington, and the A380 manufactured by Airbusin Toulouse, France.

The decision, made official through a Determinations and Findings document, authorizes the commercial aircraft purchase by other than full and open competition. This decision, in conjunction with the notification of the Air Force’s intent to award a sole source contract to Boeing for the modification of the 747-8, allows discussions with Boeing that will likely lead to a contract for the aircraft platform as well as the modifications necessary to missionize the aircraft.

“This decision is not a contract award to procure 747-8 aircraft,” said Col. Amy McCain, the Presidential Aircraft Recapitalization (PAR) program manager. “We still need to finalize the overall acquisition strategy and conduct risk-reduction activities with Boeing to inform the engineering and manufacturing development contract negotiations that will define the capabilities and cost.”

The Air Force wants to own enough of the technical baseline to permit competition for sustainment throughout the aircraft’s planned 30-year life cycle. Competition can keep costs down, spur innovation and provide options.

“We are committed to incorporating competition for subsystems of the missionized aircraft as much as practicable, and will participate substantively in any competitions led by the prime contractor,” James said.

“The current fleet of VC-25 presidential aircraft has performed exceptionally well, a testament to the Airmen who support, maintain and fly the aircraft,” James said. “Yet, it is time to upgrade. Parts obsolescence, diminishing manufacturing sources and increased down times for maintenance are existing challenges that will increase until a new aircraft is fielded.

“The Air Force provides the president with safe and reliable air transportation with high levels of security and communication capability as the alternate airborne White House,” she added. “This platform will meet the requirements necessary to provide that level of service for future presidents.”

Source and image: USAF

Air France to cut 800 jobs

In 2015, Air France will benefit from the impact of the measures taken within the framework of Transform 2015 and from the fall in the fuel price. However, as announced in December 2014, the Group will also have to contend with the weaker unit revenue trend that has developed since the summer of 2014, which requires the implementation of additional measures.

The Air France management presented a number of actions to the Corporate Works Council: downwards revision in fleet and capacity growth, new initiatives to drive revenues, the reinforcement of ‘purchasing’ initiatives, maintained wage moderation and productivity efforts and further adaptation of headcount to requirements.

In particular, during a meeting of the Corporate Works Council to be held during the first fortnight in February, the Air France management will provide details on proposed new Voluntary Departure Plans. These Voluntary Departure Plans will relate to ground staff and cabin crew and aim at the departure of approximately 800 people.

These measures relate to both the full execution of Transform 2015 and an immediate adaptation to the Group’s competitive environment.

Source and image: Air France

Lufthansa subsidiary signs new wage agreements with pilots’ union

Settlement at Eurowings to run for five years – Sustainable collective rules for pilots at SWISS International Airlines and Austrian Airlines. New wage agreements apply for the approximately 300 pilots at Eurowings GmbH as of 1 January 2015.

At the beginning of the year, the airline reached agreement with the Vereinigung Cockpit pilots’ union on new settlements that are to run for five years. They govern such matters as developments in working conditions and “grandfathering clauses” for the duration of the agreements. The collective bargaining partners agreed on a wage increase of 2.5 per cent for the year 2015 and at least two per cent for subsequent years, depending on the rate of inflation. Signing the wage agreements means that the forthcoming renewal of the Eurowings fleet with Airbus A320 aircraft, and thereby the safeguarding of Eurowings and its future prospects, is being aided and supported in terms of collective bargaining, too.

Sustainable settlements with various pilotsʼ unions have already been reached for other flight operations in the Lufthansa Group.

These recent wage settlements mean that the Lufthansa Group and almost all its pilots now have agreements that reflect changes in the industry and that introduce sustainable wage conditions. Still outstanding, however, are wage agreements at Lufthansa German Airlines, Lufthansa Cargo and Germanwings. In December 2014, Lufthansa offered further talks on unresolved topics, along with a concrete plan for arbitration. The Vereinigung Cockpit pilots’ union turned down this offer. Lufthansa is always prepared to cooperate on a viable solution for all sides.

Source and image: Lufthansa

US drone pilots are massively bailing out

Hundreds of American drone pilots have resigned, complaining of long hours and excessive stress involved in bombing jihadist targets remotely, from thousands of miles away.

A growing crisis has led the US air force to pull fighter pilots out of their cockpits and put them into “office” flying seats in America to operate the armed Predator and Reaper drones attacking Islamic State targets, reports Lenta.ruwith the reference to The Times.

Air Force chiefs are considering to offer $25 000 in bonuses each year to persuade operators to stay after a report found that 240 pilots quit. According to pilots, it psychologically difficult to see dead people on the screen translated from drone’s camera.

Source and image: Lenta.ru

Asian aircraft finance market: new local players to support region’s growing fleet

When addressing the Legislative Council on the 13th of January, 2015 the Hong Kong’s Chief Executive Leung Chun-ying revealed the government’s intentions to turn the city into a major aviation finance hub capable of competing with the likes of Ireland and Singapore. The upcoming changes in Hong Kong’s tax legislation and financial system serve as yet another clear signal that the Asia Pacific region is getting ready to grab the largest piece of the lucrative aviation finance pie.

“Being the world’s third largest financial centre, Hong Kong undoubtedly has the potential to evolve into a leading aviation finance hub. However, there is still a lot to be done. Firstly, when it comes to flexibility, the existing tax system for leasing companies is still behind the ones in Ireland and Singapore. Then there is also the issue of a wider geography of Double Taxation Avoidance Agreements and the ratification of the Cape Town Treaty. The Treaty would certainly be a good starting point for a rising aviation leasing hub,” shares Tadas Goberis, the CEO and Chairman of the Board at AviaAM Leasing.

The newly revealed plans of the HK officials have come as a direct response to the rising activity of local participants of the aviation finance market. For the last couple of years Asian banks and investors have been acquiring substantial aviation assets either directly from the manufacturers or via the acquisitions of the existing market players.

There’s no need to dig deep for examples: starting with the Japanese Sumitomo Mitsui and Mitsubishi UFJ Lease & Finance Co spending billions on grabbing several European and US-based leasing businesses in 2012, and up to the most recent Cheung Kong’s intentions to enter the market with its own initial portfolio of 60 aircraft. In addition, during the last several weeks it was reported that the Australian Macquarie AirFinance might soon sign a deal with AWAS to buy 100 newly built and on-order airplanes whilst China Aircraft Leasing Company had placed an order for 100 Airbus A320s. 
Whether the primary goals are diversification, expansion beyond the home markets and a natural exploration of new promising opportunities – global aviation finance system is naturally shifting to the East (along with the demand for aircraft). Moreover, since many Asian carriers prefer to partner up with local lessors (should they have the capabilities), no wonder that Asian leasing companies and other financial institutions are quickly lining up for new aircraft.

At the same time, just having a bunch of newly-built aircraft doesn’t guarantee that one will enjoy high yields. Yes, investing in aircraft brings 2-3 times higher margins than investing in air carriers, however considering certain signs of deceleration in the Chinese economy and a rising concern related to an over-capacitated Asian fleet, the actual growth in demand for new aircraft may mismatch the forecasted one. Moreover, a substantial drop in oil prices will bring airlines a breath of fresh air and lessen the pressure for fleet renewals thus prolonging the service of mid-life airplanes and current generation aircraft types.

“Lower jet fuel prices may allow the current generation of narrow-body aircraft, such as Airbus A320ceo and theBoeing 737NG, to remain economically competitive with next-generation aircraft – Airbus A320neo and Boeing 737MAX,” shares Tomas Sidlauskas, VP Sales at AviaAM Leasing. “If the current models maintain higher values they would provide securitizations with higher-than-expected cash flows. Low fuel costs may also support airline profitability, lowering potential default risks in the near term. If the operating cost differential between current and next-generation aircraft decreases, demand for the B737NG and A320ceo families could prove more resilient than forecasted and cash flow/securitizations would be positive.”

According to the International Air Transport Association, as of January 2, 2015 the average price for jet fuel was $1.71 per gallon – 18.1% lower than a month before that and down 43.2%, year over year. From a long term perspective, a sustained drop could potentially have an impact in the estimated operating cost reduction of next-gen aircraft. For instance, the current jet fuel price is approx. 51.1% lower than the one Boeing has assumed in calculating the estimated $112 million in cost savings for a fleet of 100 B737 MAX 8s.

“Meantime, the entrance of new players is certainly a good sign for the industry. It is especially beneficial to carriers which get more options to choose from. However, in many cases the new entrees don’t have a strong background in either aircraft finance or aviation in general. Buying an aircraft is just a small step in a 10-15-20 year-long uneasy road one will have to travel while managing the asset. Will the lessor be able to monitor the asset as it is operated? Will it be possible to successfully remarket the aircraft should the operator decide to squeeze its fleet? Does one possess the required technical knowledge and market understanding to ensure long-term residual values? These are the questions that new aircraft finance players should address upfront. Hopefully, they will find well-established partners from within the aviation community to guide them through the exciting but challenging times,” concludes Tadas Goberis, the CEO and Chairman of the Board at AviaAM Leasing.

Source and image: AviaAM