December 18, 2012 -- Updated 1433 GMT (2233 HKT)
Boeing and AirAsia won; SAS and
Iberia lost. Here are the stories that had the air industry moving -- or
not -- this year. We start with one of Europe's oldest airlines -- and
one that still knows the meaning of passenger service -- SAS, which is
in dire straits. If the airline fails, and it's been on the brink
before, this will continue the trend in Europe toward consolidation that
included the acquisition by British Airways of struggling Iberia.
HIDE CAPTION
Aviation's biggest stories of 2012
STORY HIGHLIGHTS
- SAS, Iberia among airlines on the brink
- Boeing and Airbus both suffer setbacks and delays
- China expands its aerospace industry ambitions
- Highly-anticipated EADS and BAE Systems merger collapses
London's Olympic Games were a success -- the expected tourism boon not so much.
"Dark tourism" (travel to sites of death, disaster or the macabre) became a phrase.
And various climatic events conspired to wreak havoc on travel plans across the world.
But which were the stories that really stood out to those who are involved in the industry every day?
These are the top 10:
10. SAS on its last legs
"A new comprehensive plan will pave the way for a new, strong and competitive SAS," read the statement from SAS last month.
"The plan needs to be
fully implemented and new collective agreements must be signed in a very
short space of time in order for SAS to have access to necessary
funding."
One of Europe's oldest
airlines -- and one that still knows the meaning of passenger service --
is in dire straits. SAS faces aggressive competition from low cost
carrier Norwegian Air Shuttle, which has hundreds of aircraft on order
from Airbus and Boeing.
The pioneer of polar flights, fully 40 percent of SAS's workforce is to be chopped.
If the airline fails,
and it's been on the brink before, this will continue the trend in
Europe toward consolidation that included the acquisition by British
Airways of struggling Iberia.
Not that this consolidation under the International Airline Group (IAG) banner has gone well, either.
9. Iberia on the brink
IAG's Iberia will lose 4,500 jobs in a cost-cutting effort after losing €262 million (US$340 million) through September.
IAG characterizes Iberia
in a "fight for survival." Nearly 25 percent of its aircraft will exit
the fleet and pay might be cut by 35 percent.
There's a January 31,
2013, deadline for labor to reach an agreement with IAG, which is
negotiating to buy Spain's Vueling Airlines, which is based in
Barcelona.
8. A380 loved by passengers, but continues to be a profit drag on Airbus
The Airbus A380, a
technological marvel and by all accounts a passenger delight, continues
to be a thorn in the profit-and-loss statements of Airbus and parent EADS.
Discovery of wing rib
bracket cracks in 2011 after the November 2010 high-profile engine
failure on Qantas Flight 32 required costly refits.
Never a safety-of-flight
issue and affecting only a handful of the thousands of brackets on the
A380's wings, the retrofits and airline compensations cost Airbus nearly
€300 million (US$394.8 million).
Airline schedules all over the globe were disrupted as fixes took aircraft out of service.
The ad wars that broke
out between Boeing and Airbus in late November -- 747-8 versus the A380
-- only add another dimension to the long-running rivalry.
7. Boeing roars back with 737 MAX
The first 737 MAX is scheduled for delivery to Southwest Airlines in 2017.
In 2011, Airbus stunned Boeing by announcing orders and commitments for about 1,500 re-engined A320neos.
This year, Boeing came roaring back, expecting to finish with firm orders for around 1,000 re-engined 737 MAX aircraft.
Boeing still trails
market share, and the MAX will enter service two years later than the
NEO. But any way you look at it, this was Boeing's year.
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