An executive briefing on aviation for June 3, 2008, prepared by Asia Pulse, the real-time, Asia-based wire with exclusive news, commercial intelligence and business opportunities.

INDIAN GOVT ISSUES NOTICES TO COCA COLA, LUFTHANSA OVER SERVICE TAX

NEW DELHI - The government has slapped demand notices amounting to about Rs 77 crore (US$18.2 million) on nine companies, including soft drinks major Coca Cola India, German airline Lufthansa and Era Infra Engineering for evading service tax.

The Anti Evasion Wing of the Commissionerate of Service Tax slapped demand notices on soft drinks major Coca Cola India and German airline Lufthansa for service tax evasion, totalling around Rs 15 crore.

JETSTAR PACIFIC OPENS NEW AIR ROUTES IN VIETNAM

HANOI - Jetstar Pacific Airlines Joint Stock Aviation Company on June 1 opened direct air routes from Hanoi to Nha Trang resort in central coastal Khanh Hoa province and to central coastal Da Nang city with one daily flight on each route.

These are the first air routes launched by Jetstar Pacific since its inception under a business service agreement reached between the Australian Qantas Group airline Jetstar and Vietnam's second largest carrier, Pacific Airlines.

SANYO'S 'VIRUS WASHER' TO CLEAN AIR IN MOVIE THEATERS

TOKYO - Sanyo Electric Co. (TSE:6764) said Monday that it has agreed with Warner Mycal Corp. to install its air purification system in the movie theater operator's multiplex cinemas.

This air purification system features Sanyo's "virus washer" technology, which uses electrolyzed water to suppress the activity of viruses and bacteria .

LACK OF PILOTS LEADS JAPAN'S SKYMARK TO GROUND SOME FLIGHTS

TOKYO - Japan's Skymark Airlines Inc. (TSE:9204) said Monday that 168 flights through June 29 would be suspended or canceled because of a pilot shortage, canceling four flights for Monday alone.

The low-cost carrier said it grew short of pilots needed for daily operation of the Boeing 737 after two of roughly 20 pilots who fly that plane left their jobs last month for health and other reasons. It will seek to secure pilots by reassigning those who usually operate the Boeing 767 family and tapping the help of overseas staffing agencies.

QANTAS PAY RISE MUST BE LINKED WITH PRODUCTIVITY GAIN: TREASURER

CANBERRA - Any pay rise granted to Qantas engineers must be linked to productivity gains, Treasurer Wayne Swan says.

"We need an industrial relations system where any wage rises are linked to productivity," Mr Swan told reporters.

TAIWAN CAA CANCELS FAT'S RIGHT TO OPERATE DOMESTIC FLIGHTS

TAIPEI - The Civil Aeronautics Administration (CAA) has decided to officially rescind Far Eastern Air Transport Corp. (FAT) 's right to operate domestic flights as the heavily indebted carrier failed to resolve its operational problems by a Monday deadline, a CAA official said Monday.

CAA Director-General Billy Chang made the announcement after the agency received a report Monday afternoon from the Taipei-based carrier on how it was solving its problems.

TWO MALAYSIANS MAKE MARK IN AVIATION PARTS BUSINESS

KUALA LUMPUR - Two relatively young Malaysian entrepreneurs -- S. Jeyaraman, 46, and K. Rajandra Parasad, 36 -- have shown what determination and business savvy can do in business.

Within a short span of seven years, their aviation spare parts company, Aeroklass Sdn Bhd, has not only done well locally but also abroad.

MAS TAKES TOUGH COST-CUTTING MEASURES TO FACE GLOOMY OUTLOOK

ISTANBUL - Malaysia Airlines (MAS) (KLSE:3786) is taking tough cost-cutting measures, including freezing recruitment and reducing the budget of every division by 10 per cent due to the gloomy outlook for the aviation industry caused by rising jet fuel prices.

MAS will also identify areas that it can defer spending until the situation improves, said managing director and chief executive officer Idris Jala.

IRAN AND INDONESIA TO OPEN DIRECT FLIGHT

JAKARTA - The transport ministry said Indonesia and Iran will discuss plan to open direct flights between the two countries.

Air Transport Director General Tri S. Sunoko said Indonesia wants to facilitate transport of tourists from Iran to the country.

CHINA EASTERN AND KOREAN AIR EXPAND CODE SHARE CO-OP

BEIJING - Korean Air and China Eastern Airlines have added five flight routes into their code-share cooperation, under which both carriers can sell seats on each other's flights.

The five routes, including Shanghai-Seoul and Beijing-Seoul, expanded the cooperation from the two previous routes to seven.

EVERY SECOND AUSTRALIAN HOLIDAY PLANNED ON THE INTERNET

GOLD COAST - Every second Australian holiday is planned using the web, although some travellers still baulk at paying over the internet, new figures show.

Research conducted by Tourism Research Australia shows at least 50 per cent of travellers plan their accommodation and transport on the internet, whether it be through a search engine, government website or a last minute booking site.