Swiss WorldCargo to launch daily cargo service to New Delhi

Swiss WorldCargo, the air cargo division of Swiss International Air Lines Ltd., announced added capacity in India with the launch of a new daily line flight to Delhi, effective from 25 November 2007.

With each flight, which will be operated with Airbus A330 aircraft, Swiss WorldCargo will offer 18 tons of cargo capacity to and from Delhi, in addition to the 22 tons already available to and from Mumbai. Departing from Zurich at 12:30, the new flight will arrive in Delhi at 00:35 on the following day (local time), while the westbound service will leave Delhi at 02:00 and will arrive in Zurich at 06:25.

“Swiss WorldCargo wholeheartedly welcomes the new destination of Delhi. India is a strategically important cargo market that has shown massive and sustained growth over the past few years and promises to rival the largest markets in the world before long,” says Oliver Evans, Chief Cargo Officer.

India’s second largest metropolis after Mumbai, Delhi is one of the major gateways for air trades to and from South Asia, based on well established industries such as constructions, power, telecommunications, IT, health care and community services, but also on the emerging and fast growing retail and manufacturing sectors.

“To meet the demand of this fiercely competitive market,“ Evans emphasizes, “Swiss WorldCargo will use its trademark focus on niche products and services and industry-leading track record of flown-as-planned. We expect a real challenge, but we are confident of success!”

Swiss WorldCargo is the air freight division of Swiss International Air Lines AG. With a global network of more than 150 destinations in over 80 countries and a wide range of services offered, Swiss WorldCargo generates true added value for its customers and makes a substantial contribution to the earnings power of Swiss International Air Lines Ltd.

Idea of 'halal airline' under criticism

London: Travel industry officials, including those from Islamic countries, have criticised the idea of creating a special airline to cater to religious Muslims as "impractical and unworkable" after a report at World Travel Market (WTM) said such a service is needed.

With an increasing number of Muslims travelling these days, such an airline could provide halal food, calls to prayer, religious programmes on the inflight entertainment system and separate sections for male and female passengers, said the report prepared by market intelligence firm Euromonitor International for WTM.

"We already have this airline. This report is probably talking about us," Nurul Suzainee Abdullah, manager of Royal Brunei, said wryly.

She said there are already several airlines that take into account special needs of their Muslim passengers so there is little point in discussing the idea.

"This goes too far. There are other issues about passenger comfort to talk about," said Wen Lim, regional head of European sales for Royal Brunei.

Saudi Arabian Airlines, Sharjah's budget carrier Air Arabia and Kuwait Airways are among the companies that prohibit alcohol use and many airlines from Muslim countries play a pre-recorded journey prayer during takeoff.

Dismissive

Dimitry Laspas, publisher of the "Tourism Around the World" e-newsletter, was equally dismissive about the need for an airline exclusively for religious people because travel matters affect all passengers irrespective of their religion or beliefs.

"The only relevance I see is that such a new airline will create more jobs. It will be good for reducing unemployment," he said.

In making a case for a "halal" airline, the WTM report pointed to a budget carrier set up by the Vatican to transport pilgrims.

Laspas said people cannot go about copying what the Vatican does.

"The Vatican is also the world's smallest country with the biggest army in per capita terms," he said.

The report on travel trends also said there is an "opportunity" for building hotels exclusively for Muslim women. The suggestion has been similarly rejected.

"This is a publicity gimmick," said Mohammad Al Kahla, general manager of the Coral Deira hotel in Dubai.

Airbus ends the 10th Dubai Airshow with record orders

Airbus ended the 10^th Dubai Airshow with major orders, re-enforcing customer confidence in its leading product range. During the show, Airbus received 163 firm orders valued at US over $28 billion at catalogue prices, from 10 customers. Airbus also won its largest ever order in terms of value for 70 A350 XWBs and 11 A380s from Emirates Airline. In addition, it received 132 commitments from three customers.

Demand for the A350 XWB was very strong with a total of 80 firm orders from two customers. In addition to the Emirates order for 70 aircraft, Airbus received a firm contract from Yemenia for ten A350s. In addition Dubai Aerospace Enterprise Capital (DAE-Capital) committed to acquire 30 A350s, while C Jet Limited of Hong Kong became the first customer for the VIP version of the plane, the A350XWB Prestige. Total firm orders for the type now stand at 276 from 11 customers.

The Dubai Airshow also reconfirmed the importance of the A380 to the world market. In addition to the Emirates order for 11 additional aircraft, Airbus received the first order for a private A380. The order was placed by HRH Prince Al Waleed Bin Talal of Saudi Arabia, and opens a new market for Airbus’ all new “gentle green giant”.

Airbus’ Single Aisle Family continued its success with 66 firm orders, plus commitments for an additional 101 received from nine customers, including 20 from NAS, 70 from DAE Capital, 22 from Saudi Arabian Airlines, 34 from Air Arabia, eight from Air Blue, nine from Nile Air and four from private customers. The order from Saudi Arabian Airlines was the first from the airline in 25 years.

The firm orders received during the show also include a firm order for five A330s from Oman Air.

“This Airshow has confirmed that Airbus is very much back on the market, continuing to satisfy customers with the right products,” says Airbus Chief Operating Officer, Customers John Leahy.

“The A380 and A350 XWB have been the highlight of the show, receiving tremendous customer endorsement. They will lead the way in the future in terms of aircraft technology, passenger comfort and environment friendliness.”

AIRPORT NEWS

AENA plans rail station in Malaga’s new terminal

Right: Malaga Airport is building an integrated railway station in its new terminal, which is due to open in the second quarter of 2009

Spanish airport operator AENA is investing US$54 million (Euro 36.9 million) to upgrade Malaga Airport by building an integrated railway station in the new terminal, which is scheduled for completion in the second quarter of 2009.

The new railway station will replace the current airport railway station, which is located further away from the terminal. When finished, the new 250,000m² terminal will have 20 gates, 86 check-in counters, and a baggage system capable of handling up to 7,500 pieces of baggage per hour.

As a consequence, the airport, Spain’s fifth biggest, will be able the airport to handle up to 9,000 passengers per hour, twice as much as today.

This upgrade is part of the “Málaga Plan”, an airport development programme aimed at enlarging Malaga’s capacity to 20 million passengers annually when the new terminal building is finished. AENA also plans to invest US$441 million (Euro 300 million) in the construction of a second runway at the airport, which will double capacity to 74 aircraft movements per hour. It is expected to be operational by 2010.

Malaga airport welcomed 1.4 million passengers in September, a rise of 5.9% compared with the same month last year. So far this year the airport has handled 10.7 million passengers up 4.1% on the same period last year.

Kuwait traffic rises 9% over summer

Traffic at Kuwait International Airport (KIA) increased by 9% in the three months from June to September, compared to the same period last year. Around 2.59 million passengers passed through Kuwait airport during the quarter, up from 2.37 million passengers a year before.

Arrivals grew by 8% to 1.31 million passengers (1.22 million), while departures rose 11% to 1.27 million passengers (1.15 million).

A380 lands at Orlando, but will it return?

Left: None of the three airlines at OIA that have placed orders for A380s have any plans to deploy the jets on their Orlando routes

The Airbus A380 landed yesterday (Tuesday) at Orlando International Airport - the first time it has ever touched down in the south eastern United States.

“This is an example of aeronautical engineering at its best,” says Jeff Fuqua, chairman of the Greater Orlando Aviation Authority, the agency that runs OIA.

The promotional visit, which will end on Thursday morning, when the craft heads to Montreal, may be the last time Orlando sees an A380 for a some time. None of the three airlines at OIA that have placed orders for A380s have any plans to deploy the jets on their Orlando routes.

OIA’s best shot at an A380 appears to be Virgin Atlantic Airways, which operates as many as four flights a day between Orlando and London using 452-seat Boeing 747s. But Virgin isn’t scheduled to get the first of its six A380s until at least 2013, and company spokeswoman Brooke Lawer says it is “way too early” to know where the carrier will deploy them.

US air travellers face Thanksgiving crush

American air travellers will face crowded airports during the 12-day period between 16 and 27 November as an average of 2.3 million passengers each day are due to travel during the country’s Thanksgiving holiday period, a rise of 4% on last year, according to the US Air Transport Association (ATA).

“Two things most concern us,” says ATA president and CEO James May. “Number one, the weather, and number two, the capacity of the airspace. We are all somewhat at the mercy of the weather.”

May says that “senior-level” airline executives will be “directly in touch” with the Federal Aviation Administration (FAA) “more frequently” via conference calls than in past years. “We want to make sure really heavy-hitting decision makers are involved in the calls so that airports and carriers can respond quickly to delays and other issues,” he adds.

May says the FAA has promised to implement “operational improvements” at the crowded New York airports, including the ability to perform “dual runway operations” to increase system capacity in time for the holiday rush. But he warns that queues at security checks will be “longer” and notes that “rookie travellers” who don’t fly frequently will slow throughput.

He predicts load factors of “roughly 90%” during the period, up 10 points from the already-high average of 80% through the first three quarters of 2007. “At 90% load factors, there’s very little room for error,” he says, noting that airlines will have minimal flexibility if weather forces flight cancellations.

Chengdu plans second airport

Right: Plans for a second airport at Chengdu were discussed this week at the 2007 Chengdu civil aviation development forum

A second airport for Chengdu city in China is being planned to handle the strong growth in passenger traffic.

In August, there was a report on the US$1.64 billion (Yuan 12.7 billion) plans to build a second runway and a new terminal at Chengdu Shuang-liu International Airport (see: Second terminal and runway planned for Chengdu Shuang-Liu). Now city mayor Ge Honglin has announced that in the next five to 10 years Chengdu will build a second airport in Jintang county, 36km from the city centre.

The new airport will help Chengdu to retain its role as China’s fourth busiest aviation hub.

Chengdu Shuang-liu International (CSIA) is the home base of Air China Southwest, Sichuan Airlines and United Eagle Airlines, and serves 29 airlines, including 10 foreign airlines (KLM, Thai Airways, Air Asia, etc). It offers flights to 70 domestic destinations, and 24 international destinations, including Amsterdam, Phnom Penh, Singapore, Seoul, Bangkok, Hong Kong, and Macao.

In 2006, CSIA handled 16.28 million passengers, ranking it China’s sixth busiest airport. Of that total, some 1.14 million were international passengers.

America sculpture returns to Midway

Travellers passing through Midway Airport in Chicago can once again get a glimpse of “America”, a sculpture of a World War II US Navy airman from the Battle of Midway for which the airport was named.

The sculpture had stood in the airport since the early 1990’s, but was removed for repair due to surface erosion caused by people touching the sculpture.

The rehabilitated sculpture was returned to Concourse A, in time for the American holiday, Veterans Day.

UK plans end of one bag rule

Right: UK airports could do away with the one bag rule for hand baggage from 7 January next year

Security restrictions at UK airports preventing passengers from carrying more than one piece of hand luggage could be relaxed from 7 January next year, according to the UK transport secretary Ruth Kelly.

She has invited airports to submit a plan that would enable passengers to carry more than one bag, but says that restrictions on the carrying of liquids and the size of cabin luggage will remain. Airport managers will need to prove they have adequate screening in place to handle the additional cabin luggage.

“I am announcing a new approach to hand baggage security that will be introduced progressively as airports are ready to handle the extra capacity,” says Kelly. “That way we can pass the benefits on to the passenger as quickly as possible.”

The relaxation of the one bag rule has been set for 7 January because the Government says airports would be too busy with the festive period to make the change immediately.

Kelly (right) hopes the changes will come into effect rapidly and is encouraging all UK airports to submit plans over the next few months.

“This is not about relaxing security,” she adds. “It is about allowing airports to take advantage of smarter technologies and improved processes to deliver a better service to the passenger.”

European Parliament lost in the woods on emissions trading

The International Air Transport Association (IATA) urged the European Union to get its priorities in the right order and focus on practical steps to help reduce aviation’s CO2 emissions. IATA’s statement followed Tuesday's vote in the European Parliament on including aviation in the EU’s Emissions Trading Scheme (ETS).

“Climate change is a serious problem and hypocrisy is not the answer. We could be saving 12 million tonnes of CO2 annually with an effective Single European Sky. Instead of making that a reality, Europe is single-mindedly pursuing a political agenda of emissions trading that does nothing to improve environmental performance. I don’t see the European Parliament planting many trees, but somehow they have got lost in the woods,” said Giovanni Bisignani, IATA’s Director General and CEO.

“With fuel making up 28% of operating costs, airlines have a US$132 billion economic incentive to reduce fuel burn and CO2 emissions. We are 2 percent of global CO2 emissions and we have a clear strategy to address this. Our goal is to achieve carbon neutral growth leading to a carbon-free future. This sets a benchmark on environmental performance for other industries to follow,” said Bisignani.

“These aren’t just words: with practical measures like route shortening we saved up to 15 million tonnes of CO2 in 2006 alone. What have Europe’s politicians contributed to this achievement? The answer is absolutely nothing. And today’s vote continues the tradition of hot air and no action,” said Bisignani.

Economic measures are part of IATA’s four-pillar strategy to address climate change. These can play a role once industry stakeholders, including governments, have put in place measures that maximise efficiencies from technology, operations and infrastructure. This strategy was accepted by all member states of the International Civil Aviation Organization in September 2007 including Europe. But instead of working towards a fair, voluntary and global emissions trading scheme, Europe plans to implement unilaterally.

“Europe’s go-it-alone approach on emissions trading is counterproductive. Regional schemes will have, at best, limited impact on the environment. And their unilateral application to foreign airlines is a clear breach of the Chicago Convention. The resulting trade and legal battles will distract governments from making real progress,” concluded Bisignani.

EC threatens to close airlines' websites for misleading info

The European Commission threatens to close the websites of nearly half of the airlines in the EU due to the fact that they mislead consumers with their online pricing policy as Reuters reports. The EU consumer affairs, which has carried out an investigation into airline price advertising, hasn’t named the carriers yet but it has plans to publish a list with those who shown irregularities in four months time.

The investigation took place in September with the participation of 15 member-states and shown that “more than 50% of the total websites have irregularities in their prices.”

The results of the investigation to be officially published today Wednesday 14 November 2007 and obtained by Reuters says that the carriers will be notified by the Authorities and asked to clarify the situation or change their practices in four months time.

Fines and even closing of the websites are waiting those who fail to comply with the authorities’ suggestions.

The most frequent irregularities are:

• Tickets prices which are registered without the airports taxes and other additional charges
• The ads with cheap or free tickets which are not available when the consumer displays his interest
• Additional services such as for instance the passengers’ insurance are pre-chosen at the booking page of the website and force consumers to pay more.
• Information regarding the passengers’ rights, the cancellation procedures, the change of a date or tickets transfer are missing.

Ryanair are among the many carriers that are being indicated in the report for irregularities.

The Brits won't be scared

REPORT - LONDON - WTM 2007: You cannot frighten and pin down the British. They are nearly always willing to pack up their bags and leave the country for a holiday. “Britons are the hardiest and most terrorist resistant travellers in the world,” said Dr. Auliana Poon during World Travel Market at ExCeL London.

“We did an investigation into how the Japanese, the Germans and the Americans and British responded to terrorism. We did a study on the impact on tourism in the build up to the outbreak of the Gulf War. Six months before it started the Japanese and Americans stopped travelling; with the Germans it was five months and for the British it was down to three months. How long did it take for the same amount of travellers to start up travelling after the war? The result was incredible. Within eight months everything was back to normal for the British travellers. The Germans took 11 months and the Americans took nearly two years. The British are hardy. The Germans are determined; Americans cautious and the Japanese reserved.”

Poon, managing director of Tourism Intelligence International, added “For all of these reasons it is really safe to bet on the British market. You cannot go wrong. It is key to the rest of the world.There are radical changes in a transforming market and the way the public buy, take and book holidays. Who is the new British traveller? How do they think and behave?”

“There is an un-packaging of the traditional holiday. It is changing from old to new tourism. We think Britain is driving this trend. The old style was driven by sun-lust tourists. It was mass, standardised and rigidly packaged and, most importantly, affordable. Fundamental differences include the Internet, low-cost airlines, seat-only sales and these make it possible for people to buy travel without the package. The British travellers are fiercely independent, experienced, mature and demanding with an enormous appetite for it,” added Poon.

“The same mass destinations that applied for packaged holidays are still today the leading ones for independent travellers – France and Spain within Europe. They sometimes use the package experience as a launch pad for much more individual activities. The market is increasingly inclined to seek out new destinations. The technology makes the customised holiday cost effective. The old way of doing business penalised you for being an individual.”

“The travellers of the future having the holiday of a lifetime are not interested in going somewhere and taking a photograph. They want to participate, want to be part of the experience. We have seen a move from bargain hunting to value seeking.”

Poon believes that: “Understanding the British market is the key to every other travel market. Firstly, it is huge. By 2010 we estimate the population will reach 75 million. It is the third largest travel market in the world, the second biggest time share and second highest and fastest growing cruise market.”

“The British economy continues to be one of the brightest spots in Europe; the British have paid leave and it is socially acceptable to take holidays, unlike with the Japanese and Americans. The growth has been phenomenal and the market is also dynamic. It has consistently outpaced the growth of world tourism since the 1970s. It is faster than the world average.”

“It has access to more flights and more destinations than any other country in the world.”

ITB Berlin 2008 adds new section

A new trend is driving growth in the global tourism industry. Tourists and young business travellers who prefer budget accommodation on their travels are setting one of the major global travel trends of the future. Next year the ITB Berlin will be responding to this demand with a new section at the show – Economy Accommodation.

The leading travel trade show is the first to devote a platform to this booming segment of the market. Budget hotel chains, hostels, budget design hotels, youth hostels, internet portals and associations will be presenting their products and services in Hall 4.1 from 5 to 9 March 2008. A special event which takes place on Friday, 7 March 2008 at 2 p.m. in Hall 4.1 will also be focusing on the topic of budget hotels.

According to the latest survey by the US-based youth organisation STAY WYSE, 1.6 billion overnights are registered annually worldwide among travellers under thirty. Between 2005 and 2020 this market segment is expected to expand by 70 per cent. Travellers from China and India in particular will be responsible for worldwide growth. Price-conscious travel is thus becoming one of the most dynamic forces stimulating growth in the tourism industry – regardless whether travellers under thirty are on holiday, business trips or on their way to meetings and conferences.

Dnata Travel strenghtens regional expansion with presence in Qatar

Dnata Travel Services announced plans to expand into Qatar at the Dubai Air Show 2007. Dnata Travel Services signed a joint venture agreement with the Al Hashemi Group to establish a travel management organisation in the state of Qatar. This new partnership is part of Dnata’s strategic expansion plan to establish a strong regional network within the Gulf and Middle East.

The agreement was signed by HH Sheikh Ahmed bin Saeed Al-Maktoum, Chairman and Chief Executive, Emirates Airline and Group, for Dnata Travel Services and Abdulla A.M. Al Hashemi, Chairman of Al Hashemi Group. Also present at the signing were: Gary Chapman, President Group Services and Dnata; and Iain Andrew, Divisional Senior Vice President, Dnata Travel Services.

Iain Andrew, Divisional Senior Vice President said: “Dnata has firmly established itself as the leading agency in the UAE for travel management services. Over the past few years we have been looking to grow our network in the region. Dnata launched travel services in Kuwait and Afghanistan in 2004, and this was followed by Saudi Arabia in 2005. Our first Dnata Travel outlet in Abu Dhabi was inaugurated last week and we also have representation in Oman with the integration of MMI Travel with Dnata Travel Services.”

“We already have a blueprint to establish and grow Dnata's presence in Qatar, and we look forward to progressing these plans with our partners at Al Hashemi Group. Our aim will be to provide customers in Qatar with top-class professional travel management services, and a broad range of travel products through our various specialist divisions,” Andrew added.

Mr Abdulla Al Hashemi, Chairman Al Hashemi group said: “We are very pleased to be a part of Dnata’s network; through this partnership we can now offer a broad spectrum of travel products and services to both retail and corporate customers in Qatar. We look forward to serving our clients with a high level of professionalism and service.”

Dubai to get Mid East`s first aviation safety training academy

Dubai World Central Aviation City, which will be home to the world’s largest maintenance, repair and overhaul (MRO) centre in Jebel Ali, United Arab Emirates, has signed a land lease agreement with a Dubai company to set up the Middle East’s first independent aviation safety training academy.

Spatial Aviation Safety Training Academy (SASTA), a specialist provider of aircrew training solutions, will build the US$ 37 million (AED 136 million), 14,000 square metre facility to cater to commercial airlines, private and corporate jet operators, helicopter and light fixed wing crew.

The academy will also provide customised training for airport ground staff and management.

“This regional ‘first’ will significantly add to DWC’s proposition as a totally comprehensive aviation hub and provide a vital service to the industry within the Middle East who will be able to access world-class training without the costs of sending staff overseas,” said Abdulla Al Qurashi, CEO, DWC Aviation City.

“Aviation City will be a hub for global aviation training institutions who meet all international regulatory standards in order to bridge the gap between demand and supply to the full gambit of aviation providers regionally.”

SASTA’s safety training programme is compliant with ICAO (International Civil Aviation Organisation), JAR-OPS (Joint Aviation Regulations) and UAE’s GCAA (General Civil Aviation Authority) standards.

“Our vision is to establish SASTA as an exemplar provider of world class safety training programmes for the aviation industry, at Dubai World Central. We are excited and fully committed to play our part in the success of this truly historical project,” said Joseph McKeever, CEO, Spatial Training Solutions.

“The academy’s 40-strong staff managed by aviation industry experts will operate from a fully-equipped facility complete with an Airbus A300/310 and B777 full cabin simulator, real fire fighting trainer, ditching and water survival pool, a G500/550 Gulfstream, Hawker, Fokker and Airbus A318/A319/A320/ ,A321 and B737 door trainers. We anticipate its appeal will extend beyond the Middle East, to also service the rapidly-developing aviation sector within the Indian Sub-continent.”

The academy’s syllabus includes crew resources management, leadership courses, ‘Train The Trainer’ and aircrew safety and emergency procedures compliant with Civil Aviation Regulations.

The academy is to be operational by January 2009 when first flights will serve DWC’s Al Maktoum International Airport – set to be the world’s largest.

The US$1.4 billion (AED 5 billion) DWC Aviation City is a strategic aviation project launched within Dubai World Central (DWC) - the 140 square kilometre urban aviation, multi-phased development in Jebel Ali and will feature the MRO centre, repair and test as well as aircraft system and components installation facilities.

Emirates partners with Oemservices for A380 fleet

Emirates Airline and OEMServices have signed a 15-year co-operation agreement, securing the total support services of Diehl Aerospace, Liebherr-Aerospace, Thales and Zodiac for aircraft components fitted to Emirates’ fleet of Airbus A380 aircraft.

Under this agreement, OEMServices will be Emirates’ single point of contact for the supply of components and maintenance services for about 650 different rotable, repairable and expendable aircraft components.

Emirates will grant OEMServices exclusive access to its A380 component repair business, while OEMServices will guarantee just in time availability from its pool of A380 components to Emirates at its main base and its outstations - which reduces the need for Emirates to keep a large A380 inventory of its own.

The supply of components and maintenance services will be provided by OEMServices' founding partners: Diehl Aerospace, Liebherr-Aerospace, Thales and Zodiac (acting through IN-Services).HH Sheikh Ahmed bin Saeed Al-Maktoum, Emirates’ Chairman and Chief Executive, and Jean-Noel Barrere, President of OEMServices, formalized the multi-million dollar contract at the 10th Dubai Airshow.

Sheikh Ahmed said: “Emirates will have the largest A380 fleet in the industry, with 58 firm orders for this aircraft. The contract we are signing with OEMServices is an optimal arrangement that ensures the supply of components and maintenance services for Emirates’ A380 fleet in Dubai and around the world. We are confident that OEMServices has the expertise and commitment to deliver the results for Emirates, and we look forward to a long and fruitful partnership.”

Jean-Noel Barrere, President of OEMServices: “OEMServices and its founding partners are very proud of being selected by Emirates to provide a tailor-made full support solution for its A380 fleet.”

“By harmonizing the relevant processes and logistics and building on the strength, resources and assets provided by our partners Diehl Aerospace, Liebherr-Aerospace, Thales and Zodiac, OEMServices provides a superior customized solution which meets Emirates’ A380 support expectation. Our next challenge will be to expand our partnership with other OEMs so we may enhance our A380 product and services.”

EU Sees Boeing-Airbus Row Running Into 2009

A major transatlantic row over subsidies paid to Boeing of the United States and rival European planemaker Airbus could drag into 2009, the European Commission said on Tuesday.

"Only a few weeks ago, Boeing publicly rejected Airbus's latest olive branch," the European Union executive said in a statement to the European Parliament, drawn up by European Trade Commissioner Peter Mandelson.

"We are therefore skeptical whether this dispute can be resolved at the negotiating table any time soon," it said, adding a settlement remained the EU's favored option.

In the biggest trade dispute ever filed at the World Trade Organization, the United States and the EU three years ago swapped complaints over tens of billions of euros and dollars in government support for each other's aircraft industries.

In Washington, a spokeswoman for the US Trade Representative's office said the United States also preferred a negotiated settlement but was prepared to fight on.

"We continue to believe that a negotiated settlement that brings an end to WTO-inconsistent subsidies would be best. Meanwhile, we remain confident in a favorable outcome through litigation," USTR spokeswoman Gretchen Hamel said.

Tim Neale, a spokesman for Boeing, took issue with the commission's statement that Boeing had rejected an Airbus proposal for resolving the dispute.

"We are not aware of any EC or Airbus offers to resolve this dispute that would address the most market-distorting subsidies, namely launch aid," Neale said in a statement.

"Continuing launch aid is the biggest impediment to a 'fair and balanced' resolution of the dispute."

The commission said the WTO was likely to decide on the cases in 2008 but appeals could stretch the process into 2009.

"We would think that once the WTO will have decided in the two cases, it would make sense to sit together with the US to manage the resulting implications. Whether this might expand into proper negotiations, we are not sure," the statement said.

Although Boeing was waging a "damaging" campaign, including an attempt to block funds for improving US airports to accommodate Airbus's new superjumbo A380, the commission said that so far the row had not damaged EU-US trade relations.

"We intend to keep it that way. And we trust that the US will do the same, for example by ensuring that the Airbus-Boeing disputes are not allowed to affect either company's ability to compete fairly in public procurement competitions," it said.

"Notably, there should be no anti-competitive actions in legislation or executive policy that would improperly restrict the ability of EU companies to compete in the current US aerial tanker recapitalization program."

Boeing is competing against Northrop Grumman and its partner EADS, the parent company of Airbus, to build a new fleet of mid-air refueling planes in a USD$40 billion Air Force competition.

"Boeing has welcomed the competition Airbus and Northrop have brought to the tanker program. Competition makes everyone stronger," Neale said.

EU Body Adopts Strict Rules For Airline Emissions

Airlines flying in and out of the European Union should join the bloc's emissions trading system in 2011 and submit to strict caps on their output of greenhouse gases, the European Parliament has voted on Tuesday.

The EU assembly, in its first reading on a bill that has drawn ire from the United States and other nations, voted to set a tighter limit on aviation's carbon dioxide (CO2) emissions than first proposed by the European Commission.

It also set one date, 2011, for inclusion of internal EU and intercontinental flights and increased the number of carbon permits -- certificates that essentially assign rights to pollute -- that airlines would have to buy up front from EU governments instead of getting them for free.

The trading scheme is the 27 nation EU's key instrument to fight global warming. It sets limits on the amount of CO2 that industry may emit. Companies buy or sell permits based on whether they overshoot or undershoot their targets.

Airlines are not currently included and the EU wants to add them, to show world leadership on climate change and help meet an internal goal to reduce greenhouse gas emissions by at least 20 percent by 2020 compared to 1990 levels.

"We are ten years late," in tackling emissions from international aviation, said Peter Liese, the German conservative deputy who steered the bill through the assembly. "I don't think it's over ambitious. It's high time to do something."

Airlines attacked the vote as damaging to economic growth while environmentalists said it did not go far enough to fight climate change.

The Association of European Airlines, which represents carriers such as British Airways and Lufthansa, said it was "a massive blow to the viability and competitiveness of the European airline industry (and) a barely measurable step for the environment."

But environmental group WWF said the parliament "missed the opportunity to really curb the emissions of the fastest growing sector in Europe in terms of greenhouse gases."

The plan must now go to EU governments for potential changes. It must be approved by parliament and EU ministers before it can become law.

The parliament tightened the Commission's proposals across the board, though EU governments are unlikely to support many of the new requirements.

Lawmakers voted to increase the amount of permits that airlines must buy upfront at auction to 25 percent from 2011 and said the sector's cap should be set at 90 percent of average emissions from the period 2004-2006, tighter than the 100 percent proposed by Brussels.

The parliament set limits on the amount of permits airlines could buy from other sectors in the trading scheme and under the Kyoto Protocol while adding a "multiplier" that would take into account the effects of gases other than CO2.

It also voted to include government flights in the scheme while excluding all military flights.

Lawmakers rejected the Commission's proposal that intra-EU flights join the scheme in 2011 and all intercontinental flights from 2012, saying that adopting one date would ensure no airlines were at a competitive disadvantage.

Environment Commissioner Stavros Dimas had said the Commission believed a two-step approach would help convince other nations that the EU scheme was workable.

Qantas to buy up to 188 aircraft

QANTAS will buy up to 188 narrow body aircraft for short haul flights, growing its brands in Australia and Asia. The airline said the funding of the purchases won't affect its investment grade credit rating.

The new aircraft will be used to defend Qantas' minimum 65 per cent share of the Australian domestic market and to expand low cost services to South East Asia.

The plan also involves Jetstar opening new regional aviation bases in both Darwin and Perth over the next two years to serve fast growing Asian markets.

Most of the new aircraft will be Boeing 737-800s and Airbus A320s.

The order also includes larger A321 aircraft, which will have up to 213 seats, compared with 177 on an A320 in a Jetstar single-class configuration.

The first aircraft to arrive in February will be an A321.

"We expect to take at least 17 of those aircraft to expand Jetstar's opportunities in its fastest growing markets,'' chief executive Geoff Dixon said.

Qantas will acquire 68 A320/A321 aircraft and has 40 options and purchase rights.

It will also buy 31 B737-800 aircraft, and has 49 options and purchase rights.

"The firm aircraft will be delivered over a six year period, while options secured additional delivery slots through to 2017,'' Qantas said.

Mr Dixon said: "This decision, together with existing A380 and B787 fleet commitments, secures an order stream for next generation aircraft that will allow the group to meet long term demand growth and replace older aircraft over the next decade.

"The plan provides maximum flexibility to respond to changes in the market and competitive situation.

"In an environment where our customers have more options than ever before, this investment will ensure that Qantas and Jetstar continue to provide customers with superior network reach, choice and product.''

He said some of the Airbus aircraft would also be used to supply capacity to the group's Asian associates.

Qantas is preparing to receive its first superjumbo A380 aircraft in August 2008.

Jetstar will later launch the B787 Dreamliner to underpin the expansion of its low cost international services.

"We are confident that the orders we have placed provide the right aircraft, with the right product and right economics to ensure the continued success of Qantas and Jetstar both domestically and internationally,'' Mr Dixon said.