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     Bahrain-based Gulf Air is out to reinvent itself, pulling away from a long slow decline which has seen the carrier reduced to less than 15 aircraft serving a dwindling number of destinations amidst recurring losses. The CEO of the airline, James Hogan told a group of 200 airline executives and managers: “there is nothing stopping us from reclaiming a position of world class airline.” An announcement over the weekend that Qatar Airways (Gulf Airways, the national carrier of Oman, Bahrain and Abu Dhabi) will commence flights to Oman during next year’s Khareef Festival indicates at least the start of an era of cooperation and possibly coordinated flights with its former partner. Gulf Air is on track to double its fleet size in a rebuilding program that will see the airline return to some markets that had been dumped to quell losses, according to Mr. Hogan. A source noted that the airline is talking to various alliances with an eye to joining one soon. “They hope to return to profitability by 2005. Meantime this group which came into run the airline is quite open minded, talking to potential business partners while examining various methods to create synergies aimed at improving and growing their product.” . . . Speaking of growth, no one will deny that China and in particular, Shanghai seems to have the current formula for all types of growth. While plans are accelerated for a huge 100-kilometer industrial free zone that would encompass both the airport and deep-water port in a Shanghai logistics fantasy of the 21st Century, Universal is dusting off Bugs Bunny for a theme park opus, as the rest of the city builds like mad to welcome the World Expo in 2010. So how do you tie all of this together? The Communist Party Secretary Chen Liangyu probably wishes he hadn’t come up with a slogan and then insisted it be adopted. Sec. Chen suggested “Be A Loveable Shanghai Person” be plastered on billboards and in ads to bring a new sense of togetherness, so as Shanghai grows, then too would the spirit of it’s people. Only the word “love” in Chinese used in the campaign also means “cute.” No one is quite sure what the campaign is trying to say, but most Shanghai residents are sure that they are not cute. Best comment came from the newspaper Liberation Daily which concluded that whatever the politicians meant, should be “discussed and achieved starting with ourselves.” Now that’s cute . . . U.K. Government pops up with another plan to build an airport in addition to a half dozen other schemes ranging from more runways at Heathrow to new airports at Cliffe or Doncaster or Rugby. The latest would be built at Severnside where a new international air gateway would rise upon the Severn estuary in South Wales. The airport with approval could be open for business in 2012 and would serve southern and western England. The government notes that either Bristol or Cardiff airports (or both) would be closed as part of the plan . . . Despite objection by Southwest and other regional carriers, U.S. Department of Transportation gave green light to alliance/cooperation between Delta, Northwest and Continental to code-share initially on about half of their flights. What that means is that “the three amigos” (no name for the alliance just yet) now control 35% of the U.S. domestic market while the two biggest airlines in the world, American, with its TWA takeover controls 21%, and the United/USAir code-share controls about 22%. Before 9/11, what is happening with these consolidations and agreements amongst the U.S. main trunk carriers, would have been unthinkable. But last year’s losses amongst the carriers of better than $7.5 billion are scaring the hell out of everybody right now. Think about this. After the Pan Am B747 Clipper, “Maid of the Seas” Flight 103 was blown up above Lockerbie, Scotland December 21, 1988 killing 259 people aboard and 11 innocents on the ground, the oldest, most experienced American international airline was out of business less than three years later, period. Some day somebody has to examine what made aviation think that “Pan Am could never happen to all of us.” Meantime it might be worthwhile in the light of time to view an excellent new book in the “American Disasters” series titled “Pam Am 103 Terrorism Over Lockerbie” by Karen Bornemann. Published by Spies Enslow just this month, the 48-page picture book is suitable for children over nine to view , and is available on http://www.amazon.com . . . Cathay Pacific reportedly said some very nasty things about Dragonair management in its filing with Chinese authorities to be allowed schedules from Hong Kong to the mainland cities of Beijing, Shanghai and Xiamen. Now Dragonair counts its exclusivity of service between Hong Kong and the mainland as a pillar of its business scheme, wishing to give up anything else but sharing its most profitable routes. Cathay and its new partner DHL know that without the mainland, ex-Hong Kong, that its days could be numbered, as carriers and the rest of the world whittle away at the ex-patriot airline’s former exclusive contract in that part of the world. Public hearings are set for next week but unlike this sort of thing elsewhere in the world, when public debate opens up in a totalitarian state like China, heads can and will roll. It will be interesting, even fun for capitalists the world over to listen to the mudslinging, while observing what the China aviation authority does with this case . . . Meantime if things were not bad enough, comes a report about to be released to the Senate in Canada that says that aviation security throughout the country is less than zero as compared to the USA. What’s more the report continues, it will take at least three years for Canadian aviation to even be on a par with U.S. airport security today. Currently with more than 400 U.S. airports screening and checking as never before, while hiring continues to enlist security personnel to patrol on and around major U.S. airports, the situation in Canada appears to be just the opposite. Air Canada, for example said it relies on Canada Post to provide security for mail and packages it delivers. Canada Post makes no secret that unless a letter or package is torn, damaged or is spotted as suspicious, it sails right through the system. “Canadian air security is an illusion,” said one source. “Airline crew including pilots and stewardesses are conducting security procedures that they are not trained to do. It’s a real mess.”. . . That long awaited code-share arrangement between American Airlines and Cathay Pacific has won U.S. DOT approval after objections to the arrangement by United were put to rest. American puts its code on Cathay flights from three U.S. gateways and code-shares on services beyond Hong Kong to Bangkok, Kuala Lumpur, Penang and Singapore. Cathay gets a menu of code-shares with AA from up to 20 U.S. cities. What this means to bottom lines has already been proven in a similar deal AA has with Qantas which apparently has generated steady business at minimal additional cost. For air cargo, as American continues to develop new products utilizing its growing ability to move various commodities internationally, with its rich North and Latin American system, this new reach into Asia/Pacific can only be welcome news . . . Airbus now says that it will out produce Boeing in both sales and delivery of new airplanes in 2003. But the Chicago-based planemaker may have just seen the beginning of what will eventually become an inexorable decline into permanent second place in the world commercial airplane market. While Airbus on the strength of an order from Easy Jet late last year outsold Boeing 300 orders to 251 this year the European manufacturer will deliver 300 aircraft to Boeing’s 275-285. Jens Hinrichsen is the designer/director of Airbus A380 the mammoth airplane that will put Airbus in the position of undisputed leader in the race for blue ribbon as builder of the world’s premier big passenger and cargo airplane. A380 will also be the world’s only twin deck, four aisle airliner which also will appear as a dedicated three deck, 150 ton freighter Now scheduled to be tested in 2005 and in commercial operation with launch customer Emirates Airlines, in 2006 (EK has also ordered a cargo version of A380 as has FedEx) A380 in terms of what it represents compares to advances made during the 1920s when European aircraft from Junkers and Fokker, essentially changed the way the world flew. “We are utilizing components in A380 which will dramatically change the way future aircraft are built,” said Mr. Hinrichsin. Incorporating advanced technologies and manufacturing techniques are to be expected in creating such a large aircraft. As example Airbus A380 will be made up of a new material. Airbus has come up with fabrication of a hybrid of aluminum/glass fiber composite called “GLARE” which is both lighter in weight and resistant to cracks which are currently a challenge to aircraft in service. A380 will cost operators $240 million a copy versus $200 million for the Boeing B747-400. Airbus has said that it envisions a world market of 1,200 aircraft of the larger size in the years ahead while Boeing sees a need for less than 1000. Currently the A380 order book is at 98 but there are signs that current financial distress aside, perhaps United might be looking at A380 although the carrier said “no comment” to one report . . .