ARC NEWS
Thai Airways aims for modest profit in 2023
March 21, 2023
Thai Airways International expects to eke out "at least Bt10 million" ($300,000) in net profit in 2023, on the back of operational and cost measures it has taken as part of its restructuring. The carrier says it has increased flight frequencies, launched new routes and "accelerated the expansion" of its fleet by reactivating aircraft and introducing additional aircraft "to serve the growing demand for travel". Thai says it has cut staff-related expenses and increased performance as an organisation "consistent with changes in the industry to allow Thai to operate sustainably in the long run". It also highlights plans to increase revenue from its aviation-support business, identifying the segment as a "key factor that helps Thai's net profit from normal operations recover and be positive again". Thai's financial estimates also reaffirmed its target for shareholder equity to turn positive in 2024, in line with a 7 April 2024 deadline to reach the milestone to avoid being delisted from the Stock Exchange of Thailand. Despite the optimistic financial projections, the airline cautioned that its net equity "may remain less than zero" by the deadline, and that it may have to apply for a one-year extension of the business reorganisation period. "Thai's financial estimation is based on the assumptions of capital restructuring and other factors which impact business expansion, economic forecast as well as domestic and international aviation industry, which may differ from the actual performance of Thai in the future," it states. Thai reported a net loss of Bt251 million in 2022, versus the Bt55.1 billion in 2021. The core airline made a pre-tax profit of Bt1.25 billion, down from a profit of Bt55.5 billion. The group says it suffered losses from debt restructuring and foreign exchange but also recorded one-time gains from reversal of losses on impairments, and gains on sale of certain assets.


​Lufthansa to launch new subsidiary
March 21, 2023
Lufthansa Group plans to launch a short and medium-haul airline called City Airlines. In a website for the new Munich-based carrier, it states that it will “combine the quality of Lufthansa and the experience of Lufthansa CityLine with the dynamism of a new company.” The airline will use a “modern and economical” Airbus fleet, working technically and administratively with Lufthansa CityLine and the wider group, it adds. Job openings for the new company, including pilots and crew, will be advertised this summer. “As a new airline and the youngest member of the Lufthansa Group, we are thrilled to fly daily from our home base in Munich to major European cities and remote regions,” it states. “At our hub, we also offer fast and convenient connections to the worldwide Lufthansa route network.” Lufthansa Group’s recent 2022 financial results made a brief mention of the new airline to state it is entirely owned by the group, is registered in Munich and was established on 6 April last year. However, group chief executive Carsten Spohr said during a results presentation in March last year that the intention was to create “a second CityLine," given the constraints on the fleet size of its existing domestic and regional carrier. The idea, he continued, is to extend its low cost production and feed passengers into Lufthansa's hubs, potentially also providing employment for the roughly 250 pilots of Germanwings that would otherwise be made redundant. This will create "critical mass from the beginning," with the pilots enjoying the same collective labour agreement, said Spohr. "We needed the union to extend CityLine, we have no approval so we need to make a new AOC."


Airbus returns to Iqaluit for A321XLR cold-weather trials
March 20, 2023
Airbus is conducting a second round of cold-weather trials as part of its A321XLR flight test programme, to assess the narrowbody's cabin interior. The European airframer says its A321XLR flight-test vehicle Number 3 (FTV3, registered F-WWAB) has arrived in Iqaluit, Canada's northernmost city, for a week of cold-weather trials. The twinjet, powered by CFM International Leap-1A engines, is the only one in the campaign equipped with a cabin and primarily used to test the narrowbody's interior for long-haul operations. In February, the manufacturer completed a week of ground and flight tests with its Pratt & Whitney PW1100G-powered FTV2 (F-WWBZ) in Iqaluit, located on Baffin Island, to check other aircraft systems in such conditions. The airframer says it is standard practice to complete multiple rounds of cold-weather trials during flight-test campaigns. Among the aims of the current cabin cold-weather trials is to check the freezing protection and insulation of water lines and the functionality of lavatories and the aircraft's waste tank system. "This is a big campaign for the team," Airbus says.
The cold-weather programme follows previous FTV3 trials to assess cabin temperature control, with passenger heater dummies in November 2022, and interior noise. New, visually improved sidewall and ceiling panels have been developed for the A321XLR, Airbus highlights. "We have added insulation in the forward fuselage section and developed a new lining as standard within the door and door-surround structures," states cabin and cargo engineering project leader Mehmet Altay. "We have also developed an optional thermal/acoustic 'textile door cover' for Doors-1 and Doors-4, which can be attached via magnets to each door by the crew during flight." He adds that heated floor panels have been introduced in the entrance and galley areas at Doors-1 and -4, and that a quieter fresh-air vent outlet has been installed. The airframer says the thermal and noise improvements in the door and galley areas have been developed based on "airlines' valuable in-service feedback from their A321neos featuring the more recent ACF [Airbus Cabin Flex] configuration. "This would bring benefits in particular for the cabin crews' working environment, especially during long range flights." In 2018, Airbus introduced the ACF layout which features no additional doors immediately ahead of the wing – standard on earlier A321s – and instead includes new over-wing emergency exists. ACF has since become standard for the A321neo. As part of cabin noise assessments, Airbus says it is looking at the sound of new fuel pumps that have been introduced as part of the A321XLR's rear-centre-tank, in the fuselage under the floor, aft of the central wing structure. "Any acoustic energy they emit is monitored closely monitored," Airbus says. It asserts that design changes from previous A321 versions are "now being fine-tuned for the best possible in-flight experience". Later this year, Airbus intends to complete flight tests with passengers and flight attendants as part of route proving. "This will include a dedicated flight of up to seven hours with Airbus employees – acting as passengers – on board," states Tuan Wei Chung, cabin and cargo lead for A321XLR cross functions. "Various comfort aspects will be asked, not only from the passengers, but also for the crew. We will conduct surveys, to assess the passenger comfort level on the aircraft during the long flights with regards to temperature and noise." The next step in the A321XLR's flight-test campaign is described as Maturity Gate 13. "That means everything that we have developed is now in the phase to obtain EASA [European Union Aviation Safety Agency] type certification, and then to hand it over to the series production organisation for entry into service," Altay explains. "This is the main milestone we're heading for now." Airbus declined to specify a timeframe for MG13 and its requirements.


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