5102 01

New Malaysia Airlines CEO warns of cutbacks,

layoffs KUALA LUMPUR, Malaysia The new CEO of Malaysia Airlines said its financial situation is more challenging than anticipated

and it will shrink in size as it tries to overcome a tarnished image

with the travel industry and the public.

Malaysia Airlines was battered last year by double jet disasters.

Its government owner has brought in a new CEO, former Aer

Lingus chief Christoph Mueller, to oversee a 6 billion ringgit ($1.7

billion) turnaround.

In a memo dated Tuesday, Mueller thanked Malaysia Airlines staff

for a warm welcome since he started work at the airline on May 1

but also noted parts of the organization seemed "depressed" and

customers say service is deteriorating.

Related Stories

Tourism on the rise in Malaysia, despite double plane disasters

Malaysia Airlines, Mueller said, is "suffering badly from a heavily

damaged brand reputation" in key markets with many people

avoiding the carrier because "they are frightened."

The carrier is moving ahead with a previously announced

overhaul that will involve cutting its staff by 6,000 or about 30

percent.

"Since the new airline will be smaller in size, we simply have not

enough work for all of you," Mueller said.

The airline had a good safety and service record before last

year's disasters but the tragedies, and the airline's handling of

the first one in particular, hurt its brand. A Malaysia Airlines jet

with 239 people on board went missing March 8 last year while en

route to Beijing and no trace of it has been found. In July, a

Malaysia Airlines jet was shot down over Ukraine, killing all 298

people on board.

http://www.ctvnews.ca

(Continue)

Mueller said the airline will soon mail out termination letters and new job

offer letters to those who will remain in the airline. That approach is being

taken because staff requested privacy in the handling of employment

matters, he said.

The CEO's memo was shown to reporters on Friday by the National Union

of Flight Attendants Malaysia, which protested the termination exercise by

mail as "obnoxious and arrogant."

It said its 3,500 members were now stressed and worried. The union has

written to Prime Minister Najib Razak, asking him to intervene and urging

the airline to offer short and medium-term layoffs as well as salary cuts

before a final termination exercise is carried out.

Mueller comes to the Malaysian job from a stint reviving Ireland's Aer

Lingus. He'll be the first foreigner to head the Malaysian state-owned

company. Analysts say he's an industry veteran "battle-hardened" from his

work carrying out corporate restructurings at other state-owned airlines,

including failed Belgian carrier Sabena.

He was dubbed "The Terminator" in Ireland because his German accent

made for easy comparisons to Arnold Schwarzenegger in assassin robot

mode as he outlined his plans to remorselessly fix Aer Lingus.

Mueller said in the memo that the airline's new business plan will focus on

cutting overall costs, which are up to 20 percent higher than its

competitors, and withdrawing from markets where it cannot be

competitive.

"Sometimes you have to retreat and regroup before growing again. And

that is the ultimate target. We want to grow again in the last phase of

restructuring," he said.

Mueller said he envisioned a new airline that is "safe, on-time and friendly"

that will be the new pride of Malaysia. He said endurance and faith are

needed for the turnaround program that will take three to five years.

"It is my duty to tell you today that the medicine is bitter and that the

fitness program which is required to bring us back into shape will cause a

lot of sweat and sometimes tears. But it will be rewarding in the end."

http://www.ctvnews.ca

Pilot shortage: Yes or no?

Industry officials discuss forecasts, reality at OSU

conference

Can the United States provide enough pilots to meet industry needs in

the coming years? Industry officials debated the question of whether a

pilot shortage is imminent or a reality at a panel discussion on April 28.

The U.S. Government Accountability Offices February 2014 study on pilot supply and demand basically concluded we could not see a pilot shortage in the near term, said Gerald Dillingham, director of civil aviation policy at GAO. Dillingham spoke at the National Pilot Supply

Summit, hosted by the Center for Aviation Studies at The Ohio State

University in Columbus.

Dillingham acknowledged that, even as GAO examined labor force

indicators, other factors are having an impact on pilot supply, such as

reduced numbers of military pilots coming into the civilian pipeline. He

said he doesnt believe the 1,500-hour rule for airline transport pilot certification has been the prime driver, however. I would not support that notion, he said, because the rule can be modified in any number of ways to reduce the number of hours required to hold a restricted ATP certificate, he said. He said the rule was definitely a contributing

factor, but not as much as some would have us believe that all of a sudden this was going to cause people not to go into aviation

trainingWe didnt find any evidence that was the case. Even so, the regional carriers will continue to have difficulty filling pilot

slots, Dillingham said. A shortage is a shortage. If youre saying the regionals cant fill their slots, that is a shortage, he said.

http://www.aopa.org

(Continue) The RAND Corp.s report on pilot supply and demand found that demand for pilots for the major airlines is already above 3,000

pilots per year and will stay between 3,000 and 4,000 per year

until the year 2020, when it will then rise to 4,000 to 5,000 pilots

per year, according to research fellow Mike McGee. The so-called

minors (defined in the report as including regional carriers plus Part 135 operators) will need more than 5,000 pilots per year by

2018; 6,000 by 2020; and 7,000 by 2021, he said.

McGee said the longevity of this projected hiring spree is

something the industry has never experienceda 15-year hiring spree above 3,000 pilots per year. Two-thirds of the demand is

driven by mandatory airline hiring, he said. Even if there is zero growth at the majors, youre still going to see a significant hiring increase that will last for the next 15 years. Everyone is seeing flight cancelations at the regional airlines,

and many regionals dont have enough applicants to fill their slots, McGee said. From a policy perspective, one of the major things we saw isthere needs to be a cradle-to-grave career path for pilots. We expect some of the major airlines, if they do not

own a regional, over the next few years will look at not only

expanding [flow-through] agreements but maybe buying their

own regional to ensure they have their own pipeline, he said. Its no secret that general aviationa prime source of future airline pilotshas a pilot shortage, said George Perry, senior vice president of the AOPA Air Safety Institute. GA has been losing

6,000 private pilots per year for the last decade, he said. AOPA

has been working to reverse this trend, he said, pointing to the

associations advocacy at national and local levels on such issues as medical certification reform and many programs

associated with growing and nurturing the pilot population.

http://www.aopa.org

(Continue) The cost of entry to flying is a significant barrier, and costs have

never been higher, Perry said. In the 1970s, a Cessna training aircraft cost 1.5 times the national income, he said. Now it is 4.5 times that much. The entry-level pay for a regional airline first officerin many cases $30,000 or lesscontrasted with large amounts of college loan debt make the career hard to justify, he said.

In the air transportation ecosystem, GA is the foundation that provides airlines with a labor force, Perry said. However, the health of GA has not proven to be a high priority for policy

makers, he said. The truth is to sustain a strong transportation system, GA must also be viable to help future pilots take a first

step to their career paths. The Air Line Pilots Association does not believe there is a

shortage of certificated pilots, ALPA Aviation Safety Chairman

Chuck Hogeman said. The big however needs to be included with thatthere is a shortage of licensed, qualified pilots who are willing to work for some of the pay and benefits offered by some

of the airlines and many [regional carriers] that actually need

those pilots, he said. Todays pilots are no different than those who entered the industry 40 years ago, but what were seeing [are] societal and generational changes, Hogeman said. Weve got to find opportunities to restore the passion for this industry.

http://www.aopa.org

Etihad flight diverted to Dubai after security alert

An Etihad Airways flight from Cairo to Abu Dhabi

was diverted to the Al Minhad Air Base in Dubai on

Sunday morning, following a security alert.

The Airbus A321 was carrying 128 passengers and

seven crew, according to an Etihad Airways

spokesman.

No immediate details were available about the

security alert.

The alert was received by Etihad Airways at

approximately 8am, and it was at this time that the

aircraft was diverted, he said.

The plane landed after 9am at the Dubai air base

where passengers were disembarked from the

aircraft.

The flight had departed from Cairo at 3.49am

(5.49am UAE time).

Etihad Airways will release further information as

soon as it is available, the spokesman said.

http://www.thenational.ae

Emirates founding CEO Maurice Flanagan dies One of Middle East aviations leading figures, Maurice Flanagan, has died. Flanagan, 86, was the founding CEO of Emirates Airline.

In 1985, he led a 10-man team that launched Emirates with, as he

later described it, two leased aircraft, a $10 million grant and a strict

warning from the emirates government not to come back for more. In 1990 he became group managing director of the Emirates Group.

He was the Groups executive vice chairman until his retirement in 2013.

Flanagan left British Airways in 1978 to become director and GM of

Dubai Airport services organization dnata during the early days of the

emirates economic development. During his career with Emirates, Flanagan steered the young carrier

to become a leading international aviation player, espousing both

high standards of service and innovations such as IFE screens in all

classes of its aircraft. Emirates said he had been a vocal champion

for the benefits of competition and innovation.

On Tuesday, Emirates reported a 40% full-year profit increase of

$1.3 billion in 2014.

In a statement issued Thursday, Emirates noted his death with great sadness at home in London. Emirates Group chairman and CEO Ahmed bin Saeed Al Maktoum

said, The Emirates Group, and Dubai, has lost a great friend today. Maurice was a man of great character, and a legend in the aviation

industry. He was generous with his time, forthright in his views, and a

person who gave 110% to everything he did. It was a great personal

pleasure and privilege to have worked with him. His contributions to

dnata, Emirates and Dubai will always be remembered.

http://atwonline.com

-