AUSTRALIA: Government To Offer $298m To Regional Airlines

Australia’s regional airlines – including Rex, Alliance and Pelican – will have access to $298 million to continue operating through the coronavirus crisis.

An initial $198 million will underwrite airlines’ operating costs on selected regional routes, with a further $100 million earmarked to provide direct financial support to smaller regional airlines should it be needed.

The Regional Air Network Assistance Package comes on top of an earlier $715 million provision for the broader aviation sector, bringing the Federal Government’s aviation buffer to just over $1 billion.

“Regional aviation has been smashed by COVID-19,” said Deputy Prime Minister and Transport Minister, Michael McCormack.

“The funding will ensure regional communities benefit from an ongoing airline service by underwriting airlines’ operating costs on selected routes.”

“More than 100 regional and remote airports received a scheduled passenger service last month and this funding will be welcome news for the aviation workforce and the broader communities these services support,” McCormack added.

He said that the 26,000 people employed in the regional aviation sector is in turn worth billions of dollars to rural communities.

There are currently around 12 commercial regional airlines operating regular scheduled passenger services across Australia.

The support package follows calls earlier this week for “urgent financial assistance” by nine of Australia’s regional carriers, led by Regional Express and Pelican Airlines.

Rex moved to suspend all flights within NSW, Victoria and South Australia until the Australian Competition and Consumer Commission stepped in with unprecedented approval for Regional Express, Qantas and Virgin Australia to share services and revenue on 10 key regional routes during the coronavirus pandemic, provided that fares do not exceed those charged as of February 1, 2020.

Some of the combined services include Sydney–Albury, Sydney-Armidale, Melbourne-Mildura, Adelaide-Port Lincoln, Cairns-Townsville and Townville-Mount Isa.

Rex chief operating officer Neville Howell had previously said the airline could fold within six months without government intervention, and has also requested the Government waive a range of fees and charges for a full year to help offset the impact of the coronavirus on regional air travel.

“If regional carriers collapse, so will many regional communities for which the air service is their lifeline,” Howell predicted.

In a letter to McCormack on March 26, signed by Pelican Airlines CEO Martin Hawley on behalf of eight regional carriers, Hawley warned that “the financial survival of our companies can be counted in days rather than weeks.”

“Unlike the major carriers, our companies are generally privately or family-owned… it is the smaller to mid-size companies that offer much needed air services to regional communities throughout Australia servicing routes unattractive to the major airlines. The risks are high and the margins small.”

The Government’s $298m in funding will be available for regional airlines, contracted aero-medical providers and other related essential service providers through a grants program with monthly payments through to 30 September 2020.

World’s Top 10 Airlines of 2019

The World’s Top 10 Airlines of 2019

1. Qatar Airways

2. Singapore Airlines

3. ANA All Nippon Airways

4. Cathay Pacific

5. Emirates

6. EVA Air

7. Hainan Airlines

8. Qantas Airways

9. Lufthansa

10. Thai Airways

Singapore Airlines has lost its “Best in the World” gong with Qatar Airways back on top after nabbing the coveted title at the prestigious 2019 Skytrax Awards.

Qatar also walked away with World’s Best Business Class, World’s Best Business Class Seat and Best Airline in the Middle East. It’s the fifth time the Middle East carrier has taken out the top gong at the awards, after losing the top spot in 2018 to Singapore.

Singapore Airlines slipped into second place, while Japanese airline ANA All Nippon Airways received the bronze medal.

Known as the Oscars of the aviation world, the World Airline Awards are handed out annually by Skytrax, the leading global authority on airline and airport service quality.

In its 19th year, the ratings are based on the world’s largest passenger satisfaction survey, which took place from September 2018 to May 2019 with online voting in English, French, Spanish, Japanese, Chinese and Russian.

This year passengers from over 100 countries voted on 300 airlines from around the globe, while Skytrax said there were 21.65 million eligible entries.

Australian airline Qantas made a return to the top 10 list for the first time in three years, after coming in at 11th spot in 2018 and slipping to 15th position in 2017.

Virgin Australia came in at 25th, down from their 22nd ranking in 2018.

In a statement, Skytrax CEO Edward Plaisted admitted not everyone would agree with the rankings’ assessment.

We operate the survey and awards in a 100 per cent independent and impartial format according to the commitment we gave back in 1999, he said during the awards ceremony at the Paris Air Show.

While every winner may not be the favourite of everyone, those that disagree should understand that these are the Passenger’s Choice Awards.

Jetstar came in at 53rd overall, dropping from 46th position in 2018, while Air New Zealand was ranked 16th.

Jetstar however ranked third in the ‘World’s Best Long Haul Low-Cost Airlines’ and sixth in the ‘World’s Best Low-Cost Airlines’ for 2019.

Fiji Airways was awarded first place in the “Best Airline Staff in Australia Pacific” category, which recognises the combined airline staff service for both on-board and ground staff, in the Australia Pacific region through passenger feedback and Skytrax evaluation.


Tourism Observer

AUSTRALIA: Qantas Is The World’s Safest Airline

There is no surprise that some airlines are safer than others.

EU has a blacklist of carriers banned from flying above European airspace, but a more thorough look at the incident logs of some of the world’s oldest airlines reveals that some are so safe they’ve never or almost never had a fatal crash.

The list no longer includes Southwest. Last year, in April, an incident on one of its aircraft in which a woman died after a window was smashed by an engine part.

Though not a crash, it was the first in-flight fatality for the American airline, which has been flying since 1971.

Qantas Flying since 1921 is the third oldest airline in the world, Qantas was cited in 1988 film Rain Man as an airline to have never had an aircraft crash.

Qantas has an outstanding reputation for safety but still has accidents.

Qantas has had eight fatal accidents, all before 1951, with four taking place during the Second World War while Qantas was operating planes on behalf of the Allies. Indeed, one aircraft was shot down.

In 1951, a de Havilland Australia DHA-3 Drover crashed off the coast of New Guinea after the centre engine’s propeller failed. The pilot and all six passengers were killed.

Qantas has not had a fatal accident in the jet age, however, and only a handful incidents of note.

Hawaiian has been flying planes since 1929 and never once had a fatal accident, making it, if our stats stand up, the longest functioning carrier to have never lost a passenger. It may have suffered two bankruptcies in 1993 and 2003 but it has not compromised on safety.

The airline began life flying light aircraft on sightseeing flights over O’ahu and today serves a number of Pacific destinations, including New Zealand, Australia, Asia and the US West Coast.

EasyJet has been flying since 1995 has never had an accident. In fact, its history is so incident-free, it's difficult to find any serious issues to have befallen one of its flights.

An Ethiopian Airlines Boeing 737, on its way from Addis Ababa, Ethiopia, to Nairobi, Kenya, crashed on March 10, 2019, shortly after taking off. The plane, which went down near Bishoftu, southeast of Addis Ababa, was carrying 149 passengers and eight crew members on board.

The airline has since said that there are no survivors. Ethiopian state media reported that the black box flight recorder was found.

Ryanair flying since 1985, in 33 years of flying, the closest the carrier has come to a serious accident was in 2008 when an aircraft was forced to make an emergency landing in Rome after experiencing multiple bird strikes to the nose, wings and engines.

It is believed the aircraft hit some 90 starlings. On landing, the left hand landing wheel collapsed and the plane made contact with the runway. The aircraft was damaged beyond repair and two crew and eight passengers were taken to hospital with minor injuries.

Virgin Atlantic flying since 1984/2000/2007, Virgin airlines have a remarkable safety record, with decades of accident-free travel between three carriers across many continents. Both Virgin Atlantic and Virgin Australia rank in the top 20 safest airlines in the world according to website AirlineRatings.com.

British Airways flying since 1974 has only had one fatal accident while operating in its current form: the mid-air collision of its Trident 3B with the aircraft of a Slovenian airline in the skies above the Croatian city of Zagreb.

However, in 1985, under the moniker of BA’s British Airtours subsidiary, a 737 crashed after taking off from Manchester Airport because of an engine failure, sparking a fire that spread through the cabin killing 53 of the 131 passengers and two of the six crew members.

Since 1985, British Airways has never had a fatal accident, the closest call coming in 2008, when First Officer John Coward earned his place in the aviation Hall of Fame by landing a plane without any power.

British Airways ranks among the world’s top 20 safest airlines according to AirlineRatings. British European Airways, founded in 1946 but merged with British Overseas Airways Corporation in 1974 to create British Airways, suffered a number of fatal accidents.

Emirates flying since 1985, Dubai-based airline, now operating more than 3,600 flights a week, has never had a fatal accident, and only suffered one hull loss with write-off of an aircraft, when a Boeing 777 crash-landed at Dubai International.

The plane caught fire and exploded on the runway after the majority of passengers had evacuated. However, a firefighter was killed in the blaze.

Etihad flying since 2003 has an impeccable safety record, its only incident being a rather bizarre situation in which an aircraft undergoing ground testing at Toulouse Airport in France accelerated to 35mph before hitting a concrete wall, injuring nine people on board, four seriously.

Qatar Airways flying since 2004, has had accidents were two fires, one in 2007 and one in 2017, where planes were written off while on the ground, the former in a hangar in Abu Dhabi, the latter at Hamad International in Doha. Otherwise, Qatar has a squeaky clean safety record.

There are 42 airlines to have never suffered a fatal accident in their history, including pre-jet engines as below:

- Air Berlin

- Air Europa

- AirTran Airways

- Allegiant Airways

- Cape Air

- Chautauqua Airlines

- CommutAir

- DragonAir

- EasyJet

- Emirates

- Era Alaska

- Expressjet Airlines

- Frontier Airlines

- GoJet Airlines

- Hainan Group

- Hawaiian Airlines

- Horizon Air

- Jazz Air

- Jet Airways

- JetBlue

- Jetstar

- Lion Airlines

- Mesa Airlines

- Olympic Airways

- Oman Airways

- Pinnacle Airlines

- Qatar Airways

- Republic Airlines

- Ryanair

- Shenzhen Airlines

- Shuttle America

- Spirit Airlines

- Swiss

- Trans State Airlines

- Transaero Airlines

- Ukraine International Airlines

- Vietnam Airlines

- Virgin Atlantic

- Virgin America

- Virgin Australia

- Vueling

- Westjet

The website AirlineRatings.com assessed 409 major airlines before delivering its verdict on the safest airlines for 2018, taking into account previous incidents, the average age of their fleets, and audits from governments and the aviation industry’s regulatory bodies.

For the last four years it has singled out Qantas as the world’s safest airline, ahead of a chasing pack of 19 rivals, but this year it listed the Australian flag carrier alongside the rest of the top 20.

British Airways and Virgin are the only UK airlines at the top table; others include Singapore Airlines, recently voted the world’s best long-haul airline, Swiss, the favourite short-haul airline, as well as Air New Zealand, Emirates, Etihad, KLM and Lufthansa.

Below are 20 safest airlines:

- Air New Zealand

- Alaska Airlines

- All Nippon Airways

- British Airways

- Cathay Pacific Airways

- Emirates

- Etihad Airways

- EVA Air

- Finnair

- Hawaiian Airlines

- Japan Airlines

- KLM

- Lufthansa

- Qantas

- Royal Jordanian Airlines

- Scandinavian Airline System

- Singapore Airlines

- Swiss

- Virgin Atlantic

- Virgin Australia

Commercial aircraft are built to last more or less indefinitely, which is one of the reasons why they’re so expensive. It’s common for a jet to remain in service for 25 years or more.

As planes get older they come under ever greater scrutiny. Inspection criteria grow increasingly strict.

So if planes are built to last more or less indefinitely, why are they retired after just 30-odd years or in many cases sooner?

Planes are sold, traded or mothballed not because they’ve grown old and are falling apart, but because they’ve become uneconomical to operate.

Aircraft are tailored to particular roles and markets, and there’s a fragile balance between whether it makes or loses money. Poor performance means quick exit to the sales block. To another carrier with different costs, routes and needs, that same aircraft might be profitable.

2017 was the safest year in aviation history. According to ASN there were just 14 fatal accidents involving commercial airliners 14 or more passengers, resulting in 59 deaths. This was down from 17 fatal accidents and 258 deaths in 2016. Furthermore, none of those fatalities involved a jet aircraft.

Last year, however, there were several major accidents. On February 11, Saratov Airlines Flight 703 crashed after leaving Moscow with all 71 on board perishing. One week later 66 people died when Iran Aseman Airlines Flight 3704 went down near the city of Yasul.

US-Bangla Airlines Flight 211 crashed near Kathmandu on March 12, resulting in 51 deaths. There was also a harrowing incident on a Southwest flight, where a window was smashed and a female passenger killed. And in May 112 people died when Cubana de Aviación Flight 972 crashed near Havana.

ASN’s database shows 561 deaths involving commercial flights in 2018, almost 10 times more than the whole of 2017, making it the deadliest year for aviation since 2014, with 555 deaths.

But this is still way down on the number of annual fatalities seen in previous decades. More than 1,000 deaths per calendar year was commonplace until just over a decade ago.

In 2005 there were 1,075. The figure for 1996 was 1,844. The deadliest year of all time was 1972, when 2,380 people died in 72 accidents involving commercial airliners,a number that is all the more remarkable when you consider how few departures there were compared with today around 9.5 million, compared with almost 37 million in 2017.

Modern air travel remains remarkably safe. Over the past five years, the fatal accident rate has ranged from around one for every 7.5 million departures in 2017 to one for every 1.5 million departures 2013.


Tourism Observer

COCOS ISLANDS: A Nature And Water Lover's Paradise

The Territory of Cocos (Keeling) Islands or simply Cocos Islands or Keeling Islands is in the middle of the Indian Ocean some 2750km north-west of Perth, and 900km west south-west of Christmas Island.

The Territory of Cocos (Keeling) Islands is an Australian external territory in the Indian Ocean, comprising a small archipelago approximately midway between Australia and Sri Lanka.

It is part of Southeast Asia and is in the Southern Hemisphere. The territory's dual name since 1955 reflects that the islands have historically been known as either the Cocos Islands or the Keeling Islands.

The territory consists of two atolls made up of 27 coral islands, of which only two West Island and Home Island are inhabited.

The population of around 600 people consists mainly of Cocos Malays, who practise Sunni Islam and speak a dialect of Malay as their first language.

The territory is administered by the Australian federal government's Department of Infrastructure and Regional Development, and together with Christmas Island forms the Australian Indian Ocean Territories administrative unit.

However, the islanders do have a degree of self-government through the local shire council.

Many public services including health, education, and policing are provided by the state of Western Australia, and Western Australian law applies except where the federal government has determined otherwise.

The islands were first discovered in 1609 by William Keeling, but no settlement occurred until the early 19th century.

One of the first settlers was John Clunies-Ross, a Scottish merchant; much of the island's current population is descended from the Malay workers he brought in to work his copra plantation.

The Clunies-Ross family ruled the islands as a private fiefdom for almost 150 years, with the head of the family usually recognised as resident magistrate.

The British formally annexed the islands in 1857, and for the next century they were officially administered from either Ceylon or Singapore.

The territory was transferred to Australia in 1955, although until 1979 virtually all of the island's real estate still belonged to the Clunies-Ross family.

The islands have been called the Cocos Islands from 1622, the Keeling Islands from 1703, the Cocos–Keeling Islands in 1805 and the Keeling–Cocos Islands 19th century.

Cocos refers to the abundant coconut trees, while Keeling is William Keeling, who discovered the islands in 1609.

John Clunies-Ross, who sailed there in the Borneo in 1825, called the group the Borneo Coral Isles, restricting Keeling to North Keeling, and calling South Keeling the Cocos properly so called.

The form Cocos (Keeling) Islands, attested from 1916, was made official by the Cocos (Keeling) Islands Act 1955.

The territory's Malay name is Pulu Kokos (Keeling). Sign boards on the island also feature Malay translations.

The Cocos (Keeling) Islands consist of two flat, low-lying coral atolls with an area of 14.2 square kilometres (5.5 sq mi), 26 kilometres (16 mi) of coastline.

A highest elevation of 5 metres (16 ft) and thickly covered with coconut palms and other vegetation.

The climate is pleasant, moderated by the southeast trade winds for about nine months of the year and with moderate rainfall. Tropical cyclones may occur in the early months of the year.

North Keeling Island is an atoll consisting of just one C-shaped island, a nearly closed atoll ring with a small opening into the lagoon, about 50 metres (160 ft) wide, on the east side.

The island measures 1.1 square kilometres (270 acres) in land area and is uninhabited. The lagoon is about 0.5 square kilometres (120 acres).

North Keeling Island and the surrounding sea to 1.5 km (0.93 mi) from shore form the Pulu Keeling National Park, established on 12 December 1995.

It is home to the only surviving population of the endemic, and endangered, Cocos Buff-banded Rail.

South Keeling Islands is an atoll consisting of 24 individual islets forming an incomplete atoll ring, with a total land area of 13.1 square kilometres (5.1 sq mi). Only Home Island and West Island are populated.

The Cocos Malays maintain weekend shacks, referred to as pondoks, on most of the larger islands.

There are no rivers or lakes on either atoll. Fresh water resources are limited to water lenses on the larger islands, underground accumulations of rainwater lying above the seawater. These lenses are accessed through shallow bores or wells.

In 2010, the population of the islands was estimated at just over 600. The population on the two inhabited islands generally is split between the ethnic Europeans on West Island with an estimated population of 100 and the ethnic Malays on Home Island with an estimated population of 500.

A Cocos dialect of Malay and English are the main languages spoken, and 80% of Cocos Islanders are Sunni Muslim, the other 20% are of another religion.

On 23 November 1955, the islands were transferred from the United Kingdom to the Commonwealth of Australia.

Immediately before the transfer the islands were part of the United Kingdom's Colony of Singapore, in accordance with the Straits Settlements (Repeal) Act, 1946 of the United Kingdom and the British Settlements Acts, 1887 and 1945, as applied by the Act of 1946.

The legal steps for effecting the transfer were:

The Commonwealth Parliament and the Government requested and consented to the enactment of a United Kingdom Act for the purpose.

The Cocos Islands Act, 1955, authorized Her Majesty, by Order in Council, to direct that the islands should cease to form part of the Colony of Singapore and be placed under the authority of the Commonwealth.

By the Cocos (Keeling) Islands Act, 1955, the Parliament of the Commonwealth provided for the acceptance of the islands as a territory under the authority of the Commonwealth and for its government.

The Cocos Islands Order in Council, 1955, made under the United Kingdom Act of 1955, provided that upon the appointed day of 23 November 1955, the islands should cease to form part of the Colony of Singapore and be placed under the authority of the Commonwealth of Australia.

The population of the islands is approximately 600.

There is a small and growing tourist industry focused on water-based or nature activities. In 2016, a beach on Direction Island was named the best beach in Australia by Brad Farmer, an Aquatic and Coastal Ambassador for Tourism Australia and co-author of 101 Best Beaches 2017.

Small local gardens and fishing contribute to the food supply, but most food and most other necessities must be imported from Australia or elsewhere.

The Cocos Islands Cooperative Society Ltd. employs construction workers, stevedores, and lighterage worker operations. Tourism employs others. The unemployment rate was 6.7% in 2011.

The Cocos Islands are strategically important because of their proximity to shipping lanes in the Indian and Pacific oceans.

The United States and Australia have expressed interest in stationing surveillance drones on the Cocos Islands.

James Cogan has written for the World Socialist Web Site that the plan to station surveillance drones at Cocos was one component of US President Barack Obama's pivot towards Asia, facilitating control of the sea lanes and potentially allowing US forces to enforce a blockade against China.

After plans to construct airbases were leaked Australian defence minister Stephen Smith stated that the Australian government views the Cocos as being potentially a long-term strategic location, but that is down the track.

The Cocos (Keeling) Islands have fifteen kilometres (9.3 miles) of highway.

There is one paved airport on the West Island. A tourist bus operates on Home Island.

The only airport is Cocos (Keeling) Islands Airport with a single 2,441 m (8,009 ft) paved runway.

Virgin Australia operates scheduled jet services from Perth Airport via Christmas Island.

After 1952, the airport at Cocos Islands was a stop for airline flights between Australia and South Africa, and Qantas and South African Airways stopped there to refuel. The arrival of long-range jet aircraft ended this need in 1967.

An interisland ferry, the Cahaya Baru, connects West, Home and Direction Islands.

There is a lagoon anchorage between Horsburgh and Direction islands for larger vessels, while yachts have a dedicated anchorage area in the southern lee of Direction Island. There are no major seaports on the islands.

The islands are connected within Australia's telecommunication system with number range +61 8 9162 xxxx. Public phones are located on both West Island and Home Island.

A reasonably reliable GSM mobile phone network number range +61 406 xxx, run by CiiA or Christmas Island Internet Association, operates on Cocos (Keeling) Islands.

SIM cards and recharge cards can be purchased from the Telecentre on West Island to access this service.

Australia Post provides mail services with the postcode 6799. There are post offices on West Island and Home Island.

Standard letters and express post items are sent by air twice weekly, but all other mail is sent by sea and can take up to two months for delivery.

.cc is the Internet country code top-level domain (ccTLD) for Cocos (Keeling) Islands. It is administered by VeriSign through a subsidiary company eNIC, which promotes it for international registration as the next .com

.cc was originally assigned in October 1997 to eNIC Corporation of Seattle WA by the IANA. The Turkish Republic of Northern Cyprus also uses the .cc domain, along with .nc.tr.

Internet access on Cocos is provided by CiiA Christmas Island Internet Association, and is supplied via satellite ground station on West Island, and distributed via a wireless PPPoE-based WAN on both inhabited islands.

Casual internet access is available at the Telecentre on West Island, and the Indian Ocean Group Training office on Home Island.

The National Broadband Network announced in early 2012 that it would extend service to Cocos in 2015 via high speed satellite link.

There are two inhabited islands in the group West Island and Home Island.

Passenger ferries run to Direction Island every Thursday and Saturday.

There are several uninhabited islands.

- Horsburgh Island

- North Keeling Island - A national park, with access only with permission from Parks Australia.

- South Island

The Cocos (Keeling) Islands are located in the middle of the Indian Ocean some 2750km north-west of Perth, and 900km west south-west of Christmas Island, its closest neighbour.

Cocos lies approximately 12° south and 96.5° east, locating the islands in the humid tropical zone.

There are 27 coral islands in the group. Captain William Keeling discovered the islands in 1609, but they remained uninhabited until the 19th century.

Annexed by the UK in 1857, they were transferred to the Australian Government in 1955. The population on the two inhabited islands generally is split between the ethnic Europeans on West Island and the ethnic Malays on Home Island.

Grown throughout the islands, coconuts are the sole cash crop. Small local gardens and fishing contribute to the food supply, but additional food and most other necessities must be imported from Australia.

There is a small tourist industry.

Cocos experiences two main seasons which tend to overlap: the trade wind season from April / May to September / October and the calmer doldrum season from November through to April. Expect higher rainfall during March through to July.

January through to August, may also generate the occasional low pressure system, usually between February and April. However these systems do not normally interfere with holiday plans.

Rain usually falls in the evenings, bringing glorious sunny days. The average annual rainfall is 2000mm.

Temperatures are fairly consistent no matter what the season, remaining around a comfortable 29°C with a minimum evening temperature rarely dropping below 20°C.

The landscape is flat, low-lying coral atolls, thickly covered with coconut palms and other vegetation.

Australia's last unspoilt paradise lies in the azure waters of the Indian Ocean offering spectacular snorkelling, world-class diving, excellent fishing and the adrenalin-rush of kitesurfing.

Relax on empty beaches, visit uninhabited islands by canoe, watch spectacular birdlife or catch the ferry to Home Island to stay at the original Clunies-Ross residence and discover the culture and traditions of the Cocos Malay people.

Situated 2750 kms northwest of Perth, Western Australia, the Cocos Keeling Islands are a group of coral islands that form two atolls. Only two of the 27 islands are inhabited - the rest are waiting for you to explore them.

Cocos (Keeling) Islands Tourism Association Inc., PO Box 1030 Cocos (Keeling) Islands Indian Ocean WA 6799. Monday: 0800 to 1700 Tuesday - Thursday: 0800 - 1430 Friday: 0800 - 1600 Saturday (early flight): 1300 - 1600 Saturday late flight: 1400 - 1700 Sunday & Public Holidays: Closed.

There is one airport on West Island that receives two Virgin Australia flights a week from Perth, stopping over at Christmas Island on the way on one flight and the way back on the other. One way flights are at least $500.

The Cocos (Keeling) Islands are one and a half hours behind Western Standard Time (WST) and three and a half hours behind Eastern Standard Time (EST).

Australian citizens do not need a passport, but must carry some form of photographic identification.

The Cocos Islands are a popular stopover for sailing vessels en route to Mauritius. There is a sheltered anchorage at Direction Island where sailing vessel came anchor for $50 per week.

Travel between the direction Island anchorage and Home Island is possible via tender, or scheduled ferry service which operates between Direction Island and Home Island on Thursdays and Saturdays.

A local bus service from West Island Settlement to the jetty operates approximately 20 minutes prior to the departure of the ferry to Home Island.

On Thursday and Saturday the ferry diverts to Direction Island to allow tourists and locals access to this remote paradise. The ferry returns in the afternoon to return you to West Island.

Timetables are available from the Tourism office or the Duty Free Shop.

A Car Rental. Contact Geof Christie for availability and rates.

Cocos Autos, U12 Sydney Highway, Cocos Islands. Cocos Autos offers visitors to Cocos (Keeling) Islands an extensive and diverse range of vehicles.

Choose from single and dual cab utilities or 4WD dual cab utilities. Baby seats and booster seats are also available.

AW & KJ James Car Hire. Quality vehicles available for hire. Contact Ash or Kylie for availability and rates..

Cocos Surf Shop, In the Airport Complex.

Take cultural tours with some of the local tour operators or guide yourself around the islands to explore why they call the Cocos Islands a nature and water lover's paradise.

During the year, as well as the traditional events such as Easter, New Year, Christmas etc, Cocos hosts a number of unique events.

These include the annual Lagoon swim, where competitors swim from Home Island across the lagoon to West Island.

Individuals or teams may enter and whether you are a serious contender or wish to join in with the Hash House Harriers who always seem to get themselves disqualified for one thing or another, everyone has a load of fun.

It finishes in the evening with dinner and presentations to the winners and boat drivers.

Other unique events are the mid-year Cocos Ball, quiz nights, Music & Wine festival, Ardmona Cup and Cocos Olympics.

All visitors are encouraged to join in with these festivities and activities. Exact dates vary from year to year. Please check with the Cocos (Keeling) Islands Tourism Association before booking for particular events.

Don't forget visitors to the Island are also welcome to participate in the School Fete, Sports Carnival and concert events.

Cocos Diving, Cocos Dive, PO Box 1015, Cocos (Keeling) Islands, Indian Ocean WA 6799,Australia. AUD $200-2320.

2nd Wind Sailboards. July through to September only. Watersport holidays. Windsurfing, SUP'ing, kiting.

Pulu Keeling National Park.

Cocos Islands Golf Club. Thursdays. Play the most westerly golf course in Australia that also includes an international runway. Locals and visitors meet every Thursday afternoon for a friendly game of Scroungers Ambrose.

Be at the Donga next to the West Island Supermarket at 3.30pm. All adults are more than welcome, club hire is available and a full bar. You won't play this kind of golf anywhere else in the world, not to be missed.

Hash House Harriers. Contact Mike Wacuda Keogh - Honorary Piss Poor, West Island. Mixed hash which runs every Monday at 1630 Adults only event as there are Down Downs involved.

Run or walk through coconut trees, along white sandy beaches and through the inner lagoon taking in the length and breadth of West Island visiting places not normally seen by visitors and locals alike.

Notice is written on the Cocos Club board with the location of the event every Monday after lunch. All participants to bring six beers or UDL’S, ciders, wines, champers whether you drink or not.

Also bring a few dollars for the raffle and dress in Hash attire. Don’t be shy in asking what a tubing is when in the circle. 6 beers.

Supermarket, Clunies-Ross Avenue.

Community Resource Centre, Administration building. Monday to Friday 8.00am - 3.00pm. The Cocos Islands Community Resource Centre provides internet access and printing facilities.

Mobile phones are available for hire and wireless vouchers for your laptops. Come in for a coffee and check your emails, get some information, grab a tide chart or take home a classic Cocos Calendar. Open Mon - Fri (8am - 3pm).

Australia Post.

Cocos Club. Open 7 days a week.

There are two restaurants and a couple of cafes on Cocos. The Tropika Restaurant is on West Island, whilst Bunga Melati is on Home Island.

Malay cuisine is a selection of rice, noodles, curry and chilli, featuring chicken, beef, lamb and seafood dishes.

Food is prepared to be flavoursome and not particularly hot, unless requested. The Tropika has a mix of Malay and western style meals with a selection of meats, vegetables and salads available from the bistro.

Tropika, Located on West Island in the Cocos Beach Motel buffet dinner $33.

Dory's Cafe, Located on West Island just south of the medical centre. M-F breakfast and lunch, Sunday breakfast. a range of light meals from $15 up.

Bunga Melati, Located on Home Island in the small business centre. The restaurant will open for lunch or dinner on request.

Don't want to eat at a restaurant? Usually, every third Friday, the different social clubs of Cocos prepare a food night at the Cocos Club. Excellently priced meals are offered along with raffles and good-natured fun.

Come along, share a meal. The Cocos Club also offers visitors a great venue to get to know the locals and join in with any activity that is happening.

Cocos Beach Motel. AUD $140 and up. This 28 room motel is centrally located right in the middle of town, right on the beach and only across the road from the Cocos Club, airport and a short walk to the supermarket.

Many of the rooms have direct views to the Indian Ocean. Ideally suited to couples, singles or twin. Private ensuite and air conditioned. Three family rooms are available. On site restaurant: The Tropika.

Cocos Cottages. Architecturally designed cottages, purpose built tourist accommodation, overlooking the golf course and the lagoon. They offer spacious bedrooms, fully equipped kitchens, large undercover deck areas and on site BBQ area.

Located within easy walking distance of the supermarket, Cocos Club, tennis courts, golf club, restaurants and other facilities.

Cocos Castaway. $150 - $390.

Cyclone season is October to April.

Fresh water resources are limited to rainwater accumulations in natural underground reservoirs.



Tourism Observer

INDONESIA: Mount Agung Eruption, Indonesia To Divert Flights To Ten Airports

Authorities in Indonesia are on standby to divert flights destined for the holiday island of Bali as increasingly frequent tremors from a rumbling volcano stoke fears an eruption could be imminent.

Yet the Balinese government has sent a letter to address the “people around the world”, pleading with tourists that Bali is still safe.
However the official advice on the Australian Government’s Smart Traveller website says to exercise a high degree of caution.

It comes as Bali Nine member Scott Rush and 166 inmates at Indonesia’s Karangasem prison were evacuated amid fears Mount Agung could boil over.

Mount Agung, about 75 kilometres from the tourist hub of Kuta, has been shaking since August.

But in recent days it’s threatening to erupt for the first time in more than 50 years, forcing more than 80,000 people to flee their homes.

Hands up who else on the Island feels anxious? One island expat wrote on her blog.

Tourists have also said they have been forced out of accommodation close to the base of the volcano.

I had been at a wedding in a remote village of Munti Gunung in the north of Bali, one tourist said.

Around 11.30pm asleep back in the diving town of Tulamben I was woken by my Indonesian brother in law and told to pack our things and evacuate the area immediately.

It was quite a worrying moment because it was at that time we realised everyone in our hotel had already left.

Family staying in another hotel were kicked out and made to find their own way to safety.

Karangasem prison lies 23km to the southeast of the volcano, which is outside of the exclusion zone, but no chances were being taken.

Evacuated alongside Rush was Sydney man Michael Sacatides, who is serving time on drug charges and Indonesian woman Noor Ellis, convicted of the murder of her Australian husband Bob Ellis.

Karangasem prison governor, Kusbyantoro, said all the prisoners had been evacuated.

Bali attracts millions of foreign visitors every year to its palm-fringed beaches and an eruption would be a major blow to its tourism-dependent economy.

Yet in a statement from Pemerintah Provinsi Bali, Indonesia’s National Disaster Agency urged tourists to continue visiting Bali.

Bali tourism is safe. Do not spread the misleading news that Bali is not safe because Mount Agung is on the highest alert status.

Please, come and visit Bali,A.A. Gede Yuniartha Putra said from Denpasar.

A Tourist who was staying in a resort away from the volcano said how he watched Mt Agung become more active.

We even experienced six tremors while diving. Two felt huge, he said.

Within three hours our hotel shipped us to our next destination early. They sensibly moved all guests to avoid the impending chaos and shut down the hotel as best they could.

They saved us trauma and anxiety. We feel so much for the workers who have lost their incomes.

Swift assurances were made in a follow-up statement, claiming 50,000-60,000 visitors were still flying in and out of the country on Wednesday.

The statement said the raised hazard level of Mount Agung could discourage tourists but because most tourist destinations were far from the exclusion zone, visitors should not be worried.

Visit Indonesia Tourism assured visitors Bali was open for business and business as usual.

The airport in Bali’s capital Denpasar has not been affected but several countries including Australia and Singapore have issued travel advisories warning travellers to exercise caution.

In anticipation of an eruption, Indonesia plans to divert flights headed for Bali to ten other airports, including on nearby Lombok and to the capital Jakarta.

The planes will be diverted to their nearest location or where it originally took off from, transport minister Budi Karya Sumadi said.

Airlines are watching the situation closely and 100 buses have been prepared to evacuate tourists.

Virgin Australia said it would be making an extra fuel stop in Darwin for some of its flights between Australia and Bali in case it is forced to turn back.

Singapore Airlines said customers travelling between September 23 and October 2 could rebook flights or ask for a refund.

Officials announced the highest possible alert level on Friday due to the increasing volcanic activity, and told people to stay at least nine kilometres away from the crater.

The Indonesian Center for Volcanology and Geological Hazard Mitigation recorded almost 300 tremors Wednesday morning.

A thin column of smoke can be seen rising from the mountain’s summit.

Indonesia lies on the Pacific Ring of Fire where tectonic plates collide, causing frequent seismic and volcanic activity.

Mount Agung last erupted in 1963, killing nearly 1,600 people.

Meanwhile, a rumbling, belching volcano that’s threatening to blow had forced more than 7,000 people to flee their homes by Wednesday on an island in the Pacific nation of Vanuatu.

Authorities have declared an emergency on Ambae island, where activity at the Manaro volcano has increased recently, raising fears of a major eruption.

About 10,000 people live on the island, and villagers close to the volcano have been moved to schools and community halls on the island’s less vulnerable eastern and western regions.



Tourism Observer

ITALY: Government Will Not Save Alitalia

Alitalia’s staff rejecting a last minute restructuring bid to keep the airline afloat, has not only pushed the European airline to begin bankruptcy proceedings for the second time in a decade, but has also put Abu Dhabi-based Etihad’s European future in question.

Etihad paid €560 million for its 49 percent stake in Alitalia in 2014, the largest individual share of companies invested in the airline, and part of a larger €1.76 billion deal to recapitalise and restructure the company.

At its shareholder meeting on Thursday, the airline has indicated it will stick to its stated position: no more funds to prop up Italy’s struggling national airline.

Staff at the struggling airline are hoping for government intervention.

But Italy has said it will refuse to in and save the company by nationalising it.

And it isn’t hard to imagine that Alitalia going under will have a much bigger affect on Etihad’s business than it will on Italy’s economy, thus putting more pressure on the UAE’s national airline to act to save its investment.

Etihad is invested via equity in Alitalia, Airberlin, Jet Airways, Air Serbia, Air Seychelles, and Virgin Australia.

But it is its European investments are its biggest source of concern.

With Air Serbia, Etihad invested $200 million in 2013 for a 49 percent stake and management rights for five years.

Air Serbia has managed to eke out profits that have grown to one percent of revenue over the last two years. But its profits come from a market where it is unimpeded from the threat of much low cost competition.

According to the Centre for Aviation, low cost carrier Wizz Air, with much smaller unit costs of operation, is beginning to make an entry in the Balkans which could increase the level of competition Air Serbia is currently facing.

Meanwhile, Etihad’s investment in Airberlin has yet to bear fruit.

Etihad has invested into the company four times since 2011, from raising its ownership from 2.99 percent to 29.21 percent, to buying the European carrier’s frequent flyer program for €70 million, all of its Austrian operations NIKI, as well as putting up €300 million in bonds.

Yet despite its shrink to survive strategy, the haemorraging airline reported a loss lost year that had widened 16 percent to €447 million from 2014.

Earlier this year, long time foe, Lufthansa, became a saviour of sorts when it announced a $100 million multi-faceted agreement with Etihad to streamline its European business and wet-lease 38 aircraft from Airberlin’s Niki for its Eurowings subsidiary.

The deal will help stem some of the loss that is expected to bear in on Airberlin’s results which will come out..

It has been suggested Etihad’s European debacle is what prompted the shakeup that will lead to CEO James Hogan and CFO James Rigney’s departure come the summer.

The airline is also speaking with turnaround specialist Christoph Mueller, who revived Ireland’s troubled Aer Lingus before moving on to bringing back Malaysian Airlines a year after two crashes crippled its business.

If Mueller is appointed, he will work with a new airline equity investment chief, Robin Kamark, to help draft a new strategy to save its European carrier business, after the previous appointee departed for personal reasons.



Tourism Observer
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Best Airline Experiences, But With Which Airlines?

Airline photos from the 1950s capture the glamour. The passengers, dressed to the nines, recline in comfort – yes, even in economy. Instead of dining off meal trays, armed with plastic cutlery, they feast on generous serves of roast beef carved on a trolley, washed down with champagne served in a crystal flute.

These days, things look very different. Instead of an elite activity, flying has become an everyday event, albeit one with some distinctly unpleasant aspects. Shuffling barefoot through security, peeling the lid off airline meals that can be not so much as inedible as unidentifiable; all too often, flying becomes a test of endurance.

Planes that are quieter and more comfortable than ever before. A dizzying array of entertainment choices, in-flight bars and on-the- ground lounges are little luxuries that can take the rough edges off even the longest trip. And it's not just happening at the pointy end of the plane.

Conventional wisdom would have it that Boeing's long-awaited and admittedly fairly sexy 787 Dreamliner is the world's best aircraft. It is, after all, extremely quiet, fuel efficient, has larger windows than any other commercial jet and a lower cabin pressure to reduce jet-lag. And yet, it's still not as good as the Airbus A380.

It's the feeling of spaciousness that really sets this behemoth apart. Sure, there might be something like 500 people on board with you, but the A380 never feels crowded. Favoured by Emirates and Qantas for their long-haul journeys, these Airbuses are like cruise ships of the sky.

Their spacious upper decks, unique to the A380, are reserved solely for business and premium economy passengers on Qantas, while on Emirates it's business and first class only, with a stand-up bar area at the back of the plane.

On the A380's lower deck, meanwhile, there might be more people crammed in, but there are still ample toilet facilities, windows that appear deceptively large and let in plenty of light, and low noise levels despite the four huge jet engines blasting away just outside. Plus, with the connection of multiple air bridges, the A380s tend to unload surprisingly quickly.

The sad news for fans, however, is that despite their popularity with passengers, worldwide demand for A380s is waning among airlines, due to the superior cargo haulage and running costs of Boeing's 777s,plus the fact many airlines are favouring smaller planes over shorter routes, meaning these huge jets could soon become a thing of the past.

Singapore Airlines is so well known for high-quality service that it's almost a cliche to mention them here. But really it's impossible to avoid, because SQ's reputation for excellence is more than just a good marketing ploy: the Singapore experience is a cut above the rest.

It starts from check-in, where staff are friendly and helpful, and continues on through the whole flight. Unlike many other airlines, the "Singapore Girls" – and, given it's the 21st century now, Guys seem to be genuinely interested in ensuring you enjoy your experience.

Need help with your hand luggage? They're on it. Feel like a drink? It will arrive. Getting hungry mid-flight? They'll sort out a snack.

There are plenty of airlines that offer this sort of service up the front of the plane, but few who continue that attention to detail right the way back into economy. Singapore, however, does.

On SQ flights there's a dedicated drinks run as soon as the seatbelt sign has been switched off, so you'll be relaxing with a glass of wine and, if you insist, a glass of water before you know it. Food is served on large, spacious trays with proper cutlery and a real glass. Staff treat passengers like valued customers, rather than a source of annoyance.

In fact the entire flying experience is delivered with such professional courtesy and almost automaton-like efficiency that you're never left questioning why Singapore has earned its reputation as the clear leader in the field.

This recommendation should come with a serious caveat: not all Singapore Airlines economy class cabins are created equal. If you're flying on one of the old 777s, which occasionally still operate out of Sydney, you'll wonder what we're on about here.

Those clunkers have tiny, low-res entertainment screens, limited facilities and fairly outdated cabin designs. Blergh. On the newer planes, however the A380s and the new or retro-fitted 777s life in SQ economy class is beautiful.

How beautiful? Start with the service. No need to wait hours for the meal run to get your hands on a cocktail, the SQ staff begin the flight with a lap of the drinks trolley, meaning you'll have a Singapore Sling in front of you as the opening credits roll on your movie of choice.

Those movies, too, are a pleasure to watch on Singapore's high-res 10.6- or 11.1-inch screens, and you can still track your flight mid-movie on a separate mobile phone-sized screen below. There are more than 1000 options to choose from on Singapore's in-flight entertainment system, including more than enough English and foreign-language TV shows and movies to get you through long-haul hell.

There's more good news, too: seat pitches on Singapore Airlines economy range from 32 inches to 34 inches, which is slightly more than standard on other full-service carriers. Those seats are also extremely comfortable for this class, and all on the A380s have AC power, as well as Wi-Fi access.

The food is also excellent, with both Western and Asian options designed by SQ's "International Culinary Panel" of eight renowned chefs, including Australia's Matt Moran and Frenchman Georges Blanc.

There aren't many airlines that have committed so fully to the premium economy concept as Qantas. Some offer larger seats, but with the same food as economy class. Some feature AC power outlets for laptops, but without enough space to get your elbows out and start working. Others still offer better entertainment than economy, but with the same lousy headphones as everyone up the back of the bus.

Qantas, however, has gone the whole hog. Seat pitches range from 38 inches on standard planes to 42 inches on the A380, as opposed to 31 inches in economy.

All seats have laptop power through an AC outlet. Passengers are allowed 10 extra kilograms of checked-in luggage, get priority check-in and boarding through a dedicated lane, begin the flight with a glass of sparkling wine just like the fancy people in business class, plus are given noise-cancelling headphones and a new Country Road amenity kit with eye-mask, socks, toothpaste and toothbrush.

The highlight of Qantas' premium economy offering, however, is the food. As well as being able to pre-order your meal through the Q-Eat system (Qantas's online food directory), there's a permanent snack bar available on the A380s, and on all flights the meals are inspired by Neil Perry (though admittedly we're not entirely sure what that means) and are served up on proper tableware, a la business class.

No more plastic containers with foil lids for you. And when those meals include dishes such as barramundi with yellow curry, and tagliatelle with grilled chicken, washed down with a glass of premium Australian wine, you'll never want to go back to cattle class again.

There's plenty to like about Emirates' business class, starting with the complimentary limousine service to the airport, an efficient and courteous check in, and a good lounge with full bar service, tasty food and plenty of seating.

On board, multi-lingual staff tends to professionalism over overt friendliness, which results in quick response times and both cabin and loos kept clean and tidy. The brilliant in-flight entertainment system, with its choice of 190 movies and dozens of TV channels, can be accessed in any class, but A380 business-class seats are the most comfy in the skies in which to lie back and enjoy the show.

Seats extend two metres, allowing you to fully stretch your legs; have an in-built mini-bar and massage system; and come with a woollen blanket and down pillow. Useful little storage compartments allow you to have all your belongings within arm's reach. Meals are good, attentively dished up on Royal Doulton and never hurried through by flight attendants.

On the A380, a bar-lounge at the rear offers some rare alternative space in which to relax and chat to fellow passengers. And finally, it's hard to resist the amenities bag, one of the best in the skies, with Bulgari products and a decent toothbrush that doesn't bend at a touch.

In short, while no one aspect of Emirates' business-class service is necessarily better than that of some other airlines, it's the cumulative considerations that quickly add up, bringing you close to that unattainable goal, a pleasurable long-haul flight.

Forgetting the gorgeous lounge experience and cutting straight to onboard, they have us at hello – the tip of Qantas' pointy end is also the zenith of its generally excellent people power.

Those perky back-of-the-bus attendants are charming, but there's an elite squad up here, who know your name and seem to be very much looking forward to attending to your every whim, starting with a glass or two of vintage bubbles and a discussion of the Neil Perry menu before take off.

That menu is among the best in the sky, with recipes lifted from Perry's much-lauded Rockpool restaurant offerings played out with intriguing high-end ingredients. The accoutrements: amenity kits, comfy pyjamas and on some flights, virtual reality goggles are top notch.

The space per passenger is, well, very spacious, with room to invite someone over to dine with you. The privacy level is highly adjustable and the seat/bed, with its swivel-capability, massage functions and quality sleep accessories including sheepskin underlays and warm Doonas do everything an inanimate object possibly can to ensure you arrive refreshed.

The large screens, plentiful entertainment, thoughtful touches such as an easily-found countdown to landing clock are all just so. And look, we know, lots of airlines have their versions of those things. But it's that crack team of flight attendants who elevate the experience above and beyond.

They make you feel special with a way that is a deft mix between flawless silver service and friendly Australian character. And they are the reason Qantas First Class has won numerous awards.

Despite its slightly unfortunate slogan – "Enjoy ICE" – the Emirates in-flight entertainment system really is the one you would want on the journey of your dreams. There's a reason, after all, that Skytrax has awarded Emirates "World's Best In-flight Entertainment System" for 11 years running.

The system's name stands for "Information, Communication, Entertainment", and it features more than 2500 channels to keep you occupied through the flight. The information section has features such as the flight tracker, news and sports headlines, and three onboard cameras. In communication, you have "Wi-Fi in the sky" – all passengers get 10MB of free data – in-seat phone, SMS and email, and seat-to-seat messaging. However, it's the entertainment section that is the most exciting.

On selected Boeing 777s, passengers are able to watch live sport, as well as live news programs from the likes of BBC, CNN and Al Jazeera. On all flights there's a huge amount to both watch and listen to, from new-release and classic movies from Hollywood and the world, to box sets of great TV shows, plus selected episodes of thousands of other programs, music videos, documentaries, radio stations and even podcasts.

And passengers can navigate through all of this on Emirates' industry-leading 13.3-inch seatback screens in business class those screens blow up to 23 inches wide, and it goes up to 32 in first class, which is pretty much the IMAX of the skies.

It takes almost 14 hours to fly from the east coast of Australia to Dubai, but you'll still walk off the plane wishing you'd had time to watch just a few more shows.

Never underestimate the civilising effect of a scone. Halfway through a long flight, smoothing jam and clotted cream onto a warm cake transports you to a calmer, more Zen place. At least, that's the effect it has on me. And that's what I enjoy most about Emirates' economy food. More than their multicultural menu – ranging from chicken biryani to Szechuan prawns (yes, in economy) – it's the small indulgences. A dessert, cheese and crackers AND chocolate? Yes, please.

For main meals, there's usually fresh salad followed by four main-course choices, including meat, fish and vegetarian options. Signature Chinese dishes such as tender braised beef are excellent. Cheese plates tempt with interesting choices (all-Swiss cheese on a Zurich flight, for example); chocolates and Illy coffee follow. Breakfasts, often a poor afterthought on flights, are worth waking up for: plenty of juices, smoothies, berries with cinnamon-flavoured muesli, and fluffy omelettes that actually taste like eggs.

Interesting wines in business class start with Billecart-Salmon champagne from a family-owned French producer, offered on boarding. Regular promotions highlight regional wines or certain wine styles, such as a recent Argentine promotion featuring three Malbecs and a Malbec Cabernet Sauvignon, with an informative accompanying leaflet describing both the wines and Argentine wine regions.

The airline carries about 80 wines from other countries such as Australia, Austria, France, Italy, New Zealand, South Africa and the US.

At the back of the plane in business class on an Emirates A380 there's a semi-circular bar with adjacent sofas and dedicated bar tender. At 38,000 feet, you can order a martini, served up in a proper glass, toothpick, olive and all. Striking up a chat with an adjacent passenger, you get to feel like Daniel Craig, probably minus the sharp suit. Or the physique. Or the license to kill.

Trust an airline run by an Italian-Australian, born in a small town near Rome, not to tolerate the sludge that has long substituted for in-flight coffee. John Borghetti's Virgin Australia has done more than most, if not any, airline by collaborating with Nespresso and B/E Aerospace to deliver, initially on its A330 domestic business class, a near enough to cafe-standard coffee in the clouds.

The catch is that, internationally, you can only enjoy it on the carrier's business class Boeing 777 services as well as in the newly-introduced in-flight bar and in its "refreshed" premium economy. But, hey it's a start.

The modern frequent flyer might travel by air as often as people in the Golden Age rode in cars. But that doesn't mean we don't still want a sense of occasion. That's where Virgin Atlantic's fabulous Upper Class check in at Heathrow excels.

The theatre starts as soon as your chauffeur pulls into the drive snaking around a huge, gold, suspended sculpture and a concierge shepherds you and your luggage into the Upper Class Wing, a sexy gold- and red-accented private check in. Whiz through the private security channel and in no time and no stress, you're sipping Grey Goose martinis in the Clubhouse.

Designed by Studioilse, the London-based design studio led by Ilse Crawford, The Pier feels more like a luxury apartment than an airport lounge. They deliberately chose art, plants, furnishings, music and considered lighting to help any traveller forget they are in a transitory state. There's also a complimentary foot massage, showers, day suites for snoozing and an a la carte restaurant. The only downside is looking at the screen to realise your flight is boarding.

It used to be that you would dread a long layover in Santiago, Chile. It's far from the world's most exciting airport. However, Santiago is now a joy thanks to the recent opening of LATAM's new business class lounge, a two-storey monstrosity that's the largest in South America, and comes equipped with proper lie-flat beds in a darkened room, plus showers, dining rooms, meeting rooms, and even a video game and entertainment room.

While flying around South America on LATAM Airlines there were always frequent announcements made by pilots revealing the day's soccer scores. These were invariably met with a cacophony of whooping, clapping or jeering depending on the result. In an age of increasingly serious air travel, such incidents provide a welcome injection of humour and a wonderful reflection of the culture of one of the world's liveliest continents.

The trolley pulls up and there's a moment of recognition on the face of the flight attendant. She shoots a glance at my frock and then hands me the Kate Spade amenity kit in the exact same pattern. No need to buy a clutch for a night on the town at my destination then. Inside the Kate Spade and Jack Spade (for men) kits are superlative Australian-made ASPAR by Aurora Spa products, plus all the essentials including toothpaste and brush, earplugs, eye mask and travel socks.

It all started in 2009 with air crew in body paint. Air New Zealand has turned safety videos into an art form, collaborating with the likes of Peter Jackson, Bear Grylls and the All Blacks to produce a succession of entertaining instalments. The result? Passengers actually watch them and the all-important safety message is delivered with wit and panache. Many other airlines have tried to follow suit, but Air New Zealand still sets the benchmark.

Since a significant, much needed re-design last year, Qantas is the leading in-flight read. The editorial content is an engaging mix of inspiring travel, business and culture pieces with a clean, classy design that places a heavy emphasis on strong photography. The publication has also been well integrated with its corresponding app, website and social media portals.

Scoot around eBay, and you'll see American Airlines' PJ sets for sale alongside other fashion items. Undoubtedly, the airline doesn't condone the on-sale, but the fact that there's a black market for them – black being the operative word – is testament to the appeal of AA's new sleepwear.

While some in-flight PJs of lighter hues can be a tad revealing of what lies beneath, AA's version is a flattering black with a red trim and comes with matching slippers and a drawstring bag.

We types who like to change from street wear to comfy flying gear inflight know a thing or two about what makes a good plane loo. So too, do parents with infants and other small children who might need nappies and full sets of clothes changed. The main thing is space. And the Emirates A380 business class loos have it in spades. You could hold a conference in one of those cubicles. Combine that with frequent cleaning, nice-smelling amenities, great lighting and a pretty bunch of fresh flowers.

INDIA: Jetstar Denies It Is World’s Worst Airline

LOW-cost carrier Jetstar has hit back at claims it is the worst airline in the world and said the findings research by consumer watchdog Choice had no credibility.

Data compiled by 11 consumer groups globally including Choice was released earlier today after 11,000 passengers who travelled in the past year gave feedback and scored the performance of 73 airlines.

The findings showed Qantas was ranked as the best of the national carriers (ranking 36), ahead of rival airline Virgin Australia (51) and Jetstar came in last (73).

Jetstar has come dead last in a new survey of more than 100 airlines.

A new global study has found Jetstar to be the worst performing overall according to more than 11,000 people who took part.

But the budget airline has hit back, saying the survey lacks "veracity".

Jetstar spokesman Luke Enright criticised how the research was conducted and said it was not a fair indicator of all airlines.

He said the data size of Jetstar passengers which included more than 100 respondents of the 11,000 overall was “around half the number of people we carry on one flight and a lot less than 34 million customers who flew with us last year.”

They also called it an international survey but only surveyed people from eight countries, he said.

Emirates took the crown as the best airline in the world.

Tigerair was not included in the survey because the sample size of passengers was too small.

But Choice spokesman Tom Godfrey stood by the research and said it’s unsurprising Jetstar is disappointed in their poor performance but instead of trying to rubbish the survey, they should work on cleaning up their act.

People are sick of poor treatment, particularly when flights are delayed or cancelled.

Jetstar said they continued to do a lot of work behind the scenes on areas where we can improve, particularly on flight punctuality.

Customers rated airlines on a range of criteria including punctuality, checking in, boarding, treatment by staff, comfort on-board, meals, safety and value for money.

In comparison Australia-based airline Qantas ranked the 36th best airline in the world and Emirates came out on top.

The study was conducted by Choice, in association with watchdogs from around the world, and found more than a third of passengers who flew with Jetstar said they experienced disruptions from flight cancellation and waiting times of an average of at least four hours after scheduled departure times, the Daily Mail reported.

Jetstar only received one star out of five for overall satisfaction. The airline was rated 4.51 out of 10 for comfort and its website scored 4.81 out of 10.

Despite the findings, Jetstar say they question the results.

"There are a lot of holes in this latest survey, including leaving out our main competitor Tiger because they didn't collect enough responses, so the veracity of the report is questionable," a spokesperson said.

Air New Zealand ranked 26th in the world - well ahead of the two Australia-based airlines.

Here are the top five airlines according to the survey:

1. Emirates based out of the United Arab Emirates 8.29

2. Avianca based out of Columbia 8.17

3. Qatar Airways based out of Qatar 8.15

4. Luxair based out of Luxembourg 8.1

5. Singapore Airlines based out of Singapore 8.1

UAE: Emirates To Launch Triple Decker Plane Featuring A Swimming Pool, Games Room, Gym And A Park

Emirates Airline is all set to launch another game changer, if we are to believe the Dubai-based airline.

One of the world's leading airlines just unveiled plans for a commercial aircraft with jaw dropping - almost unbelievable - facilities.

On Friday midnight, Emirates took to Twitter to announce its plans to launch the world's largest commercial plane, a triple-decker 'APR001', featuring a swimming pool, games room, gym and a park!

However, aviation enthusiasts and flyers, who like to travel in style, will have to wait since this 'larger than life' is nothing more than an April Fool's Day prank by Emirates.

But then who is to say what the future hold for the future of aviation. Until then, enjoy Emirates' current world class facilities the next time you fly with them.

Besides Emirates, Virgin Atlantic and British Airways - to name a few - attempted to prank people by announcing a plane with 'flaps' and a Corgi Class.

In a statement issued by Virgin Atlantic today, the airline spoke about its new innovation, the 'flapenergy':

After nearly 30 years of offering customers the ultimate long-haul flying experience, Virgin Atlantic and its founder Richard Branson are once again breaking barriers by announcing a world first in aircraft innovation.

Almost a decade in the making, Virgin Atlantic has today announced that its world-class engineering team have been secretly working on the design and production of the world's first-ever aircraft using new patented technology - flapology - to create the world's first aircraft with flappable wings.

Named the Dreambird 1417, the new aircraft has been inspired by the innovative engineering of a bird in flight and its flapping wing. The Dreambird 1417 boasts wings that bend and flex to create a flapping motion that not only propels the aircraft forward but generates its own power to meet every electronic need onboard.

The flamboyant Sir Richard Branson, President of Virgin Atlantic and popular prankster said:

"Birds are the ultimate flying machine and it's been a lifelong ambition of mine to harness their energy and apply it to a passenger aircraft. Engineers all over the world have been trying for years to mimic a bird in flight and thanks to the perseverance and dedication of the team at Virgin Atlantic, we've finally succeeded. Not only have we harnessed this but we've also created a faster, cleaner more self-sustaining aircraft."

But Virgin Australia took their April Fool's prank further by 'unleashing' cabin crew of dogs, aptly called - Canine Crew:

CHINA: Hainan Airlines To Buy 13 Percent Of Virgin Australia For A$159 million

Billionaire Chen Feng’s HNA Group agreed to purchase a stake in Virgin Australia as the Chinese conglomerate adds to its more than $91 billion of assets worldwide.

The owner of Hainan Airlines will buy 13 percent of Virgin Australia for A$159 million ($114 million) and plans to raise that stake to about 20 percent over time, the Australian carrier said on Tuesday. Brisbane-based Virgin Australia already counts Air New Zealand, Singapore Airlines and Etihad Airways PJSC as major shareholders.

Branson 'a great believer in Virgin Australia'

Virgin Australia, with net debt of A$2.1 billion, has been reviewing its capital requirements and shares in the airline jumped in Sydney as it announced the fresh funds from HNA. The Chinese group’s toehold in Virgin Australia continues a multi-billion dollar spree that has scooped up everything from airlines to hotels and supermarkets.

In an alliance with HNA, Virgin Australia plans to start direct flights to and from China next year and fly some of those visitors on its network at home. Qantas Airways currently dominates that market. Last year, more than 1 million Chinese travellers visited Australia and by 2020, the number will climb to 1.5 million, Virgin said.

“We carry almost no traffic from China on our domestic network,” Chief Executive Officer John Borghetti said on a call with reporters on Tuesday. “This will change the dynamics. The way that China is growing, direct services in and out of China are very important.”

Virgin Australia stock rose as much as 7.1 percent to 30 Australian cents, matching HNA’s purchase price for its new shares. That’s still 46 percent lower than the price in April last year.

Two decades ago, HNA founder Chen walked the aisle of his startup Hainan Airlines’s single airplane serving refreshments. Last month, his conglomerate agreed to buy Swiss airline-catering company Gategroup Holding AG for about $1.4 billion. And yesterday, Air France said it’s in talks to sell half of its catering unit Servair to HNA.

HNA said in a statement Tuesday it will appoint one person to Virgin Australia’s board. The group will support the outcomes of Virgin Australia’s capital review, the Australian airline said in its statement.

That assessment won’t be completed “for a little while”, Borghetti said. Morgan Stanley previously estimated Virgin Australia needs a further A$700 million in financing, while Citigroup has said the requirement might be as high as A$853 million.

“It’s hard to say whether this is a big enough capital injection to change their fortunes,” said Daniel Mueller, an analyst at Forager Funds Management in Sydney.

The deal with HNA, which needs Australian competition and Chinese regulatory approvals, also complicates a potential shakeup among Virgin Australia’s largest investors after Air New Zealand in March said it may sell its 26 percent stake.

That stoked speculation that Singapore Air would snap up the stake. Billionaire Richard Branson, whose Virgin Group owns around 10 percent of Virgin Australia, said last week that Air New Zealand’s holding had attracted several potential buyers.

Singapore Air supported the HNA deal, while Air New Zealand wasn’t consulted because it no longer has a seat on Virgin Australia’s board, Borghetti said in the interview. Representatives for Air New Zealand and Singapore Air declined to comment on the deal.

Major shareholders will see their shareholdings diluted. Air New Zealand’s stake will fall to 22.5 percent from 25.9 percent; Singapore Air’s will decline to 20.1 percent from 23.1 percent; and Etihad’s will decrease to 21.8 percent from 25.1 percent, a Virgin spokeswoman said. Virgin Group goes to 8.7 percent from 10 percent.

THAILAND: Passengers Stranded After Tigerair Enters Dispute With Airport Authorities

Hundreds of passengers have been left stranded as a licensing dispute between budget airline Tigerair and Indonesia grounded flights to and from Bali until at least Friday morning.

More than 1700 travellers have been affected with around a dozen flights cancelled since Wednesday.

"Tigerair Australia sincerely apologises for the inconvenience caused by this decision and we are working to resume flights as soon as possible," the airline said in a statement.

Bali is one of the most popular destination for Australians. More than one million visit Indonesia each year.

At least 350 passengers are stranded in Bali awaiting flights home.

Virgin Australia, which owns Tigerair, was scheduled to operate two flights from Bali to bring as many affected customers as possible, according to a statement from Tigerair.

The issue arose after Indonesian government asked the budget airline to comply with new licensing conditions on Tuesday.

Rob Sharp, Tigerair's chief executive officer, said the airline had temporary approval under charter flight arrangement from Indonesia to operate between Australian cities and Bali until March 25, 2017, which has been ongoing for the past eight months.

"This involves selling tickets in Australia between Australia and Bali. Under the existing agreement, we are not able to sell tickets in Indonesia and we are fully compliant with this," he said.

The director-general of Air Transport in Indonesia had accused the airline of breaching its agreement and selling tickets in Indonesia.

Some of the travelers took to social media to blast the airline.

On her Facebook page, Melbourne resident Megan Deal said other airlines were either fully booked or charging ridiculous amounts.

"Our long-awaited family holiday has been ruined and I have to tell my devastated kids in the morning we are no longer going to Bali today!!" she said.

"Needless to say we will NEVER fly with your company again and will inform others not to do so either!!"

Qantas,Japan Airline, AirAsia Most Punctual Airlines In The Pacific

Qantas and Japan Airlines achieved the best on-time performance rates of any airline in the Asia Pacific region last year, while Thai AirAsia is the region’s most punctual low-cost carrier, a new report has revealed.

According to OAG’s latest ‘Punctuality League’ report for 2016, 87.56% of Qantas flights arrived at their destination on time last year, putting it top in Asia Pacific and fourth in the world. JAL (86.74%) was Asia Pacific’s second most punctual carrier, with Singapore Airlines (85.19%) third.

Continuing the strong performance of Australia and Japan, ANA (84.71%) and Virgin Australia (84.52%) were fourth and fifth respectively.

In terms of airports, Juanda International in Surabaya surprisingly topped the Asia Pacific rankings, with an OTP rate of 90.30%. This also made it the best performing “large” airport in the world (those handling in excess of 10 million passengers per year). Osaka Itami (89.56) was second in Asia Pacific, followed by three Australian hubs: Cairns (87.23), Brisbane (86.71) and Perth (85.86).

“Whether it is a 17-hour long-haul service or a one-hour connecting flight to a hub, the accuracy of both scheduling the service and delivering the stated on-time performance is incredible; especially when compared to so many other forms of transport,” said OAG’s John Grant. “This year’s report draws upon the largest ever number of flights tracked in a single year.”

Globally, the world’s most punctual airlines in 2016 were Hawaiian Airlines (89.87%), Copa Airlines (88.75%) and KLM (87.89%), while the best performing airports were Birmingham (91.28%), Newcastle (90.94%) and Surabaya (90.30%).

Etihad, Partners to Support Nearly 425,000 Jobs in Africa

Etihad Aviation Group (EAG) and its equity airline partners will support almost 425,000 jobs and are expected to contribute $3.6 billion GDP to the African economy in 2016, as Abu Dhabi becomes a key hub for business travel both into and out of the continent.

A report released by leading international research organisation Oxford Economics Group reveals that EAG and its partners make a substantial contribution to economic prosperity in Africa and throughout the global economy providing vital connections between leading commercial centres and emerging markets.

EAG and its partners will deliver a core economic contribution of $1.1 billion and a tourism contribution of $2.5 billion, said the report.

In turn, they will support 117,000 jobs through core operations, with another 308,000 jobs supported through the tourism contribution.

In 2016, Etihad Airways operates services to 117 passenger and cargo destinations around the world, and is expected to carry 19 million passengers on over 100,000 flights, among which almost 8,300 flights will be to and from Africa serving some 1.1 million passengers in the continent.

Since launching its first service to Egypt in 2004, Etihad Airways has expanded its operations across the African continent with the opening up of outstations in a further eight countries including South Africa, Morocco, Libya, Sudan, Kenya, Nigeria, Uganda and Tanzania.

The core contribution of $1.1 billion includes the impact of EAG’s global operations, its capital spending in Africa, and the operational impact of its partners.

Among this, EAG’s global operations alone will make a $400 million contribution to the economy and sustain 39,700 jobs in 2016, mainly through purchases of products and services from African-based suppliers.

James Hogan, President and Chief Executive Officer of Etihad Aviation Group, said:

“Many jobs across the supply chain in hotels, ground transport companies, freight forwarders, catering, manufacturing, and throughout the tourism industry, all benefit from the presence of the Etihad Aviation Group, with suppliers in these sectors creating tremendous employment opportunities for emerging markets such as Africa.

“These contributions to economies in Africa are substantial. They are also an indication of the continued increase in travel into and out of Africa via our hub in Abu Dhabi, signalling the possibility for even more growth and prosperity across the continent in the future.”

The economic contribution of tourism facilitated by Etihad Airways and its partners is also quantified in the report.

The spending of the 1.1 million international visitors carried into Africa on Etihad Airways and its partners’ flights in 2016 will leave a considerable economic footprint.

This is estimated to contribute $2.5 billion in GDP for the continent, supporting some 308,000 jobs.

By 2024, the number of visitor arrivals carried into Africa by Etihad Airways and its partners is projected to rise to over 3.2 million.

As a result, the GDP contribution grows to $5.6 billion, sustaining 596,000 jobs in the continent’s economy. In addition to the economic contribution, the report also recognises the positive economic impact of the air connectivity Etihad Airways and its partners bring to the continent.

Together, Etihad Airways and its partners will provide a boost to African productivity equivalent to $1.1 billion in 2016. This level of activity is equivalent to 72,200 jobs in the economy.

The productivity boost rises to $2.2 billion by 2024, equating to an estimated 145,000 jobs. EAG was established in 2014 and comprises four business divisions – Etihad Airways, Etihad Engineering, Hala Group and Airline Equity Partners. The group owns minority investments in seven airlines: airberlin, Air Serbia, Air Seychelles, Alitalia, Jet Airways, Virgin Australia, and Swiss-based Darwin Airline, trading as Etihad Regional.

Hogan said: “Our partners play a vital role in driving our business in Africa. Thanks to their networks and infrastructure, we have been able to service Africa more efficiently. Our investment in partner airlines has driven our growth around the world and in Africa.

2017 Best Airlines

For many locals and expatriates in the UAE, frequent travel is a part of life. They spend a great deal of time in the stratosphere, jetting off to another country three times a year, on average, according to a study. This is why choosing the best airline to travel with is very important for a lot of people.

AirlineRatings.com, which regularly reviews carriers around the world, has recently released its list of top 10 airlines for 2017, to let flyers know which ones excel in offering safety, comfort and service in the sky, and are able to maximise their profits at the same time.

According to the ratings agency, the airline that shows "exceptional performance" is Air New Zealand.

Winning the "airline of the year" award for the fourth time in a row, the Kiwi airline bested other carriers for its exemplary financial performance, in-flight innovations, operational safety, environmental leadership and motivation of its staff.

“In our objective analysis, Air New Zealand came out number one in virtually all of our audit criteria, which is an exceptional performance,” said AirlineRatings.com editor-in-chief Geoffrey Thomas.

Also worthy of high praises are other airlines that comprise the rest of the top ten list for 2017: Qantas, Singapore Airlines, Cathay Pacific, Virgin Atlantic/Virgin Australia, British Airways, Etihad Airways, All Nippon Airways, Eva Air and Lufthansa.

AirlineRatings picked the top ten airlines using four major international industry and government audits and nine key criteria, including fleet age, passenger review ratings, profitability, investment rating and key product offerings.

Emirates, included in last year’s edition, is missing in the top ten, but it did get the best in-flight entertainment award.

“The crash of the 777 was a serious blow to the airline’s safety record and thus, it has slipped out of the top ten,” Geoffrey Thomas, editor-in-chief, AirlineRatings.com, said.

Qantas scooped three awards for offering the best domestic airline service, catering and lounges.

The UAE’s Etihad Airways earned the award for having the “best first class”, while Virgin Australia won best business class.”

The “best cabin crew” award went to The Virgin Group
- Virgin Australia
- Virgin Atlantic
- Virgin America.

For excellence in long haul travel, the following airlines did it best:
- Delta Air Lines (Americas)
- Virgin Atlantic (Europe)
- Etihad (Middle East/Africa)
- Singapore Airlines (Asia/Pacific).

In terms of value and safety in the low-cost airline sector, the following stood out:
- Virgin America (Americas)
- Norwegian (Europe)
- Kulula.com (Africa/Middle East)
- Scoot (Asia/Pacific)

NEW ZEALAND: Air New Zealand Restricts Inflight Use Of Samsung Galaxy Note 7

Air New Zealand is the latest airline to restrict the inflight use of the Samsung Galaxy Note 7, over concerns its batteries could explode.

Qantas, Jetstar, Virgin Australia, Tiger Airways and other airlines around the world have banned passengers from switching on or charging the recalled phones onboard.

An Air New Zealand spokeswoman said: "On recommendation from the Federal Aviation Administration all Air New Zealand customers carrying Samsung Galaxy Note 7 devices must ensure that they are carried in the cabin only and not turned on or charged while onboard any Air New Zealand service.

It is understood flight attendants are advising passengers of the ban as part of the pre-flight safety briefing.

Earlier this month, Samsung announced an unprecedented recall of 2.5 million Galaxy Note 7s worldwide just two weeks after the phone was launched.

The move came after Samsung's investigation into reports of fires found rechargeable lithium batteries manufactured by one of its suppliers were at fault.

Samsung said it had confirmed 35 cases of the Galaxy Note 7 catching fire as of September 1, most of them occurring while the battery was being charged.

In a statement, the company said it was not aware of any incidents occurring in New Zealand.

AUSTRALIA: Virgin Australia Posts $225 Million Loss

Virgin Australia will post an annual loss of $224.7 million due to the impairments and charges it expects to record from its plans to position the airline for future profitability.

Australia’s second biggest carrier reports its full year results on August 5, but in a fourth quarter trading update has warned of the impact of the changes the airline says will save up to $300 million per year by the end of 2018/19.

Underlying profit for the 12 months to June 30 will meet guidance at $41 million, an improvement on the previous year’s $49 million, but the bottom line will be hit by previously announced impairments – most of which were recorded in the fourth quarter.

Virgin Australia said it will post a net loss of $228 million for the final three months of 2015/16, and a full year net loss of $224.7 million.

The airline’s changes include the streamlining of its fleet of aircraft and efforts to improve the efficiency of its crew and ground operations.

Virgin Australia cut domestic capacity by two per cent in the final three months of the 2015/16 year to reflect demand, and said its underlying pre-tax loss for the period narrowed by $15 million to $21.9 million.

“The group improved its underlying performance, passenger numbers and load factors in the fourth quarter in a challenging operating environment,” chief executive John Borghetti said.

“During the quarter, the group took action in response to operating conditions through strategic capacity reductions in line with demand.”

AUSTRALIA: Virgin Australia Is A Strategic Asset But Should Be Profitable

Virgin Australia's future is fundamentally sound, but ownership uncertainty was introduced after Air New Zealand flagged the potential sale of either part, or all, of its 25.99% stake in the airline. Air New Zealand CEO, Christopher Luxon, has been the only shareholder to state publicly that Virgin "needs to get profitable", and he was reported to have called for Virgin Australia CEO John Borghetti to resign before his own departure from the board. Chairman Elizabeth Bryan equally, reportedly rejected the call.

The announcement leaves the door open to another airline joining the share register, or for existing shareholders Etihad and Singapore Airlines to increase their holdings - or even a possible full takeover and subsequent delisting of the airline. Singapore Airlines has the most obvious strategic investment in Australia and the funds to easily acquire and recapitalise Virgin and therefore favourite to move. But this is far from certain; no public indications have been made and (though unlikely) it is possible that no buyer is interested.

Although Virgin is a highly valued strategic asset, with its domestic market reach, it must also be a profitable airline for its owners. For a variety of reasons, perhaps partly because of a divided board, Virgin has not achieved the recent success of its domestic competitor Qantas.

Since taking over as CEO in 2011 John Borghetti has led an ambitious and unprecedented brand repositioning from the cheap-and-cheerful 'new world carrier' Virgin Blue into an upmarket and glossy full service airline, Virgin Australia. With a clear objective to compete in the business market Mr Borghetti oversaw heavy investment into product, including refreshed airport facilities, rebranded aircraft, upgraded onboard products and new lounges. However, with the slump in mining activity and a slowing economy, the market is struggling to absorb the new product, and the resulting increase in fares has alienated a previously loyal base of low-fare travellers.

But more importantly, Virgin has produced a full-year net profit just once since Mr Borghetti took the reins: AUD22.8 million only, in FY2012.

This corresponded with Qantas Airways' industrial troubles, which concluded in a lock-out and the suspension of operations in 2011.

Virgin is on track now to achieve a FY2016 profit, but recent performance suggests it is taking longer than expected for the airline to find its new niche; the share price has hovered around AUD0.40/c since 2011, a far cry from a high of AUD2.78 in 2007 and well below the airline’s IPO price of AUD2.45 in 2003. Over the same period, Qantas was in contrast one of the best performing stocks on the ASX.

A significant portion of Mr Borghetti's leadership has been in aggressive competition with Qantas, which infamously pursued a "line in the sand" approach to its capacity share, provoking an unsustainable level of capacity growth in the domestic market. This took a remarkable toll on both airlines' bottom lines. Having since been subdued, Virgin however continues to perform below expectations.

By way of comparison, the Qantas Group reported its best 1HFY2016 result in history with a net profit of AUD688m; Virgin followed with an AUD45 million net profit. The disparity in results reflects the different stages each airline has reached in its respective transformations – Qantas has realised AUD1.36 billion of the AUD2 billion planned in just over two years of the three and a half year programme.

As a result of this transformation Qantas' domestic business has narrowed its unit cost disadvantage to Virgin to within 5%, reduced from almost 40% gap when the flag carrier established Jetstar in 2004 (though Virgin argues that the gap is wider).

Virgin Australia and Qantas Airways CASK minus fuel (AUD/c)

Cost is a core challenge for Virgin moving forward - since FY2010, Virgin's operating costs have increased by 65.5%, from AUD2.9 billion to AUD4.8 billion, while passenger revenue grew at a slower 48%. Virgin's CASK increased 21.3% over the same period, while margins have shrunk below levels the airline experienced as an LCC.

While Virgin stopped reporting its group yield at the end of FY2014, the numbers published at the time showed the airline had yet to achieve yield higher than Virgin Blue’s AUD0.1145 in FY2008.

On 21-Mar-2016 Virgin again called on shareholders Air New Zealand, Etihad Airways and Singapore Airlines to support the airline through a new unsecured term loan facility. Each airline will separately provide funding via a new loan facility in an initial step in strengthening Virgin Australia’s. The facilities are for a term of 12 months and based on arm's-length commercial terms. They are for an aggregate amount of AUD425 million with pro-rata participation from each shareholder based on their relevant interest.

Corresponding with the loan, Virgin announced a capital review to optimise its balance sheet and ensure it has an appropriate structure to access capital and improve cash flow generation and profitability. The review will include an assessment of the appropriate mix of debt and equity capital and operational initiatives to enhance cash flow and profitability, and could include options such as the issue of new share capital and possible asset sales. Former Nine Entertainment CFO and COO Simon Kelly is leading the review.

Standard & Poor's has downgraded Virgin's outlook from stable to negative following announcement of the loan and review, and while this does not affect Virgin's B+ overall corporate credit rating, S&P did revise the airline's liquidity profile to "less than adequate,"S&P did revise the airline's liquidity profile to "less than adequate," noting: "While we view Virgin Australia's operating performance to be fundamentally sound, we expect adverse currency and working capital movements, as well as increased capital expenditure relative to our previous base-case forecast, to affect the airline's current debt and liquidity levels". Standard & Poor's added: "This may require a sizeable new funding commitment over the next 12 months".

Nine days after Virgin announced another loan from its shareholders, Air New Zealand CEO Christopher Luxon moved to distance himself and his airline - resigning from the board of directors and reporting that the airline would explore a part or full sale of its 25.99% stake. Air NZ's stake is currently valued at AUD350 million (USD268 million), although a premium would be likely in any takeover.

Air New Zealand chairman Tony Carter said that the airline "does not want a large minority equity position in Virgin Australia as it focuses on its own growth opportunities", though it appears to have left the door open to a smaller position – perhaps around 10%. The airline is currently assessing other uses for the capital currently tied up in Virgin Australia, either in product reinvestment or to fund further expansion.

The existing trans-Tasman alliance between the pair will reportedly remain in place regardless of the outcome, where Virgin and Air New Zealand operate an immunised JV. Mr Luxon noted: “We look forward to continuing our partnership on the Tasman alliance, providing customers of both airlines with the most comprehensive trans-Tasman network.”

Under previous CEO Rob Fyfe, Air New Zealand first took a stake in Virgin during 2012 but Mr Luxon has always been the most vocal about the airline’s performance. In Feb-2015, Mr Luxon noted that Virgin’s product investments were over and the end of the capacity war meant that now “is the time to get profitable” – a comment that was met with a reminder that criticism should stay within the boardroom. In comparison, both Etihad Airways and Singapore Airlines have remained mute over Virgin’s performance, and in public statements have expressed support for both Mr Borghetti and the strategy.

Air New Zealand is in a period of its own expansion and product refreshment, and is likely at a point where – without a clear path for future returns – it does not find any value in an equity stake with Virgin.

Singapore Airlines the most likely buyer, but would require a takeover bid
Under Australia's Corporations Act 2001, a new shareholder is prohibited from purchasing more than 20% of Virgin Australia due to the prohibition in section 606(1)(c)(ii) of the Act. Likewise, an existing shareholder who has more than 20% but below 90% cannot automatically increase its holding under section 606(1)(c)(iii). If an airline wishes to acquire a holding that takes it above the limits in section 606, it must do so via a full takeover offer, as outlined in Part 6.3 of the Act.

There are several exemptions available in section 611 that would allow a new entrant to increase its holding outside the prohibition in section 606 without initiating a full takeover bid. For instance, Virgin Australia could issue new equity under section 611 item 10, allowing a new holder to enter the share register without triggering the requirement of a takeover bid. This is the method by which Virgin achieved its existing shareholding initially.

Section 611 item 9 also provides a "3% creep" provision, which allows an entity to increase its holding every six months by 3%, if it already holds at least 19% of the voting power in the company. Foreign entities are also subject to approval by Australia's Foreign Investment Review Board.

If a potential buyer cannot meet the non-takeover exemptions in section 611 and still wishes to acquire a larger holding in Virgin, they must institute a takeover offer by means of either an on-market bid or off-market bid, as required in section 611 items 1-4, and outlined in Part 6.3 of the Act. In most instances, an off-market bid is the preferred option as this allows the bidder to set conditions on the takeover bid. This is subject to the approval of the target shareholders, as well as the Australian Securities and Investments Commission (ASIC), who maintains regulatory oversight of the process.

If the buying entity is a foreign company - as most likely in this instance - all of the above is also subject to FIRB approval.

However, a more likely scenario could be either Etihad Airways or Singapore Airlines further increasing its stake to take majority control.

Etihad currently holds 25.1%, meaning that it could reach 51% with approval from Australia’s Foreign Investment Review Board. Australia is near-unique in having no limit on foreign ownership of a domestic airline (New Zealand is the only other country to adopt this policy).

But Singapore Airlines is the more likely candidate, having a long history of interest in Australia’s domestic market – including an attempt to purchase Ansett Australia from News Corporation in 2000 and later from Air New Zealand in 2001 – along with the strategic (and financial) means to do so.

Singapore Airlines' cash balance of USD3.2bn would be sufficient to fund the estimated USD1.5bn required to purchase, delist and recapitalise Virgin Australia. This would be a better fit for the airline's recent preference for avoiding minority stakes where it cannot exert full control the results of which are evident at Tigerair.

Singapore Airlines is currently authorised to increase its shareholding in Virgin Australia from 23.1% to 25.9%, but noted in Jan-2016 that it had made no decision on increasing to this point: "Whether or not we increase to that level is something we will decide along the way". In response to reports on Virgin Australia potentially being delisted, CEO Goh Choon Phon said that Singapore Airlines was "happy with Virgin being listed." Mr Goh said: "If something changes we will have to evaluate it as a shareholder, but this is not the point at which we would evaluate it".

In Apr-2016 Singapore Airlines physically settled a series of equity swaps that it had entered into with a counter-party at a cost of AUD3.18 million, or AUD0.467 per share – a significant premium to Virgin’s closing price of AUD0.35 on 07-Apr-2016. The decision to settle the swaps over Virgin shares rather than settle by cash increases Singapore Airlines’ exposure to any future financial support required by Virgin, and to quote Citi: "If one wanted to draw a 'loose' conclusion from last night's announcement, it's that Singapore Airlines does not seem to have objections to injecting further cash into Virgin".

However a purchase by Singapore Airlines may give pause to Australia's regulators. While domestic airlines can be fully foreign-owned, those operating international services cannot. Virgin Australia currently circumvents this requirement by ring-fencing its international operations using a separate (majority Australian-owned) vehicle, which complies with international bilateral agreements and Australia's Air Navigation Act — requiring majority local ownership of an international airline.

This structure consists of the domestic (and listed) Virgin Australia Holdings (VAH) and the international division as Virgin Australia International Holdings (VAIH).

VAIH is owned by existing VAH shareholders and has its own independent board of directors, but operates under a long term service and loan agreement with VAH: to provide aircraft, crew, maintenance and administration services. VAIH is subsequently billed for these services; however the airline notes its loan and future capital requirements are all funded from VAH. The split has had no operational impact. While this may continue to satisfy regulators, those opposed to the move would undoubtedly express their concerns.

Air New Zealand has been silent since announcing its review, and the airline is certainly canvassing several options for a sale. As noted, any full acquisition of its stake would require a takeover bid to be filed - though Air New Zealand could also consider a sale of a <20% share of its holding to a new buyer, avoiding this requirement.

An entrance by a wildcard player such as Delta Air Lines or United Airlines is unlikely but possible; likewise the arrival of a Chinese airline to the share register. Having endured a three-way marriage, both Etihad and Singapore would be eager to avoid a new airline trying to make its mark. Singapore Airlines would be particularly reluctant to have a Chinese airline partner. Etihad and Singapore could also increase their stakes proportionately, preventing a new entrant but limiting the need to absorb the airline.

Delisting Virgin Australia and launching a wide-reaching operational review could be the simplest way of reviving the airline; Virgin's operating fundamentals are sound and the domestic Australia market is high-yield with significant propensity to travel. Attempting the kind of review Virgin needs could be difficult under the eyes of three other major shareholders.