07 DEC 2007 _______________________________________ *Report finds high risk of runway collisions at U.S. airports *Lion Air MD-90 loses three-metre-long part on takeoff *US Passenger 727 Operator Faces Uncertain Future *Air France-KLM Says It Will Bid For Alitalia *Texas Senator Named Ranking Member Of Aviation Subcommittee *Cathay Pacific to buy 8 Airbus A330 aircraft to expand fleet *US airlines ready to offer digital use aloft *Adam Aircraft A700 Certification Program Achieves Major Milestone *Frontier subsidiary Lynx receives FAA certification **************************************** Report finds high risk of runway collisions at U.S. airports Federal report blames lack of leadership, overworked controllers; FAA speeds up plans in placeWASHINGTON (AP) – Air travelers face a high risk of a catastrophic collision on U.S. airport runways because of faltering federal leadership, malfunctioning technology and overworked controllers, congressional investigators said Wednesday. The investigators had given the Federal Aviation Administration credit for reducing runway safety incidents from a peak in 2001. But they said the agency's "runway safety efforts subsequently waned" as the number of incidents settled at a lower level. Then, in the 2007 budget year that ended Sept. 30, the incidents spiked to 370 – 6.05 incidents per 1 million air traffic control operations. That approached the level in 2001, when there were 407 runway incursions and a 6.1 rate. At this time, "no single office is taking charge of assessing the causes of runway safety problems and taking the steps needed to address those problems," the Government Accountability Office said in a report requested by Rep. Jerry Costello, D-Ill., and Sen. Frank Lautenberg, D-N.J. After a conference spurred by that criticism, the FAA made moves to fix the problems quickly, including speeding improved runway markings and pilot training. The GAO report approved of those moves but also recommended more leadership from the FAA, better data collection and less overtime required of controllers. An incursion is any aircraft, vehicle or person that goes where it should not be in space reserved for takeoff or landing. Serious incursions, where a collision was narrowly averted, declined to a record-low 24 in 2007, compared with 31 the year before. But the report said they have stayed high enough to pose "a high risk of a catastrophic runway collision." Incursions >From fiscal year 2001 to fiscal year 2006, Dallas/Fort Worth International Airport was seventh in incursions, with 27, according to the GAO. In 2007, the airport had eight incursions, according to the FAA. But considering the airport's status as the third-busiest in the world when it comes to takeoffs and landings, the airport has had a relatively low rate of incidents among major airports. Most of the incursions at D/FW were classified as minor with little or no chance for collision. The airport has had no serious incursions since 2001, when it had three. While Wednesday's report deals with potential collisions on the ground, the U.S. Office of Special Counsel, the agency that protects government whistle-blowers, ordered an investigation this summer into reports that North Texas air traffic controllers are repeatedly covering up errors in which airplanes were allowed to fly into dangerous situations. Special Counsel Scott Bloch specifically mentioned unreported runway incursions in his letter to the Department of Transportation secretary. That investigation follows a 2004 special counsel report that found North Texas controllers intentionally ignored and covered up many instances in which jets flew too close to one another. Staffing issues In response to the national safety report issued Wednesday, the FAA said it had reached its goal of reducing the most serious incursions by almost 25 percent in 2007. The agency said the overtime was a short-term issue that could be resolved through stepped-up hiring. Hiring is focused on two dozen facilities with high overtime or six-day work weeks, according to the FAA, and a working group is studying whether scheduling changes could minimize fatigue. FAA spokeswoman Laura Brown said runway safety is a priority and the agency "is safely staffing all of its air traffic facilities." Mr. Costello and Democratic Rep. James Oberstar of Minnesota, the full committee chairman, urged quick approval of a House-passed FAA bill that would provide $42 million for incursion reduction and $72 million for runway lighting; require an FAA runway safety and technology plan; and force the FAA to reopen contract negotiations with controllers. The Bush administration opposes that provision. The GAO also urged the FAA to assume more responsibility from airports and airlines for safety in ramp areas, where planes park next to gates and 29 people have died between 2001 and 2006. One of those fatalities happened at Addison Airport in 2002, when a mechanic was crushed by a twin-engine plane's landing gear as he was inspecting it for problems. D/FW efforts D/FW has taken major steps in recent years to reduce the risk of runway collisions. Among the efforts: Taxiway change: The airport broke ground last fall on a "perimeter taxiway" system that will eliminate nearly all runway crossings by shuttling passengers on a road around the airfield to their gates. The $63.8 million project, 75 percent of which is paid for by the FAA, is scheduled to open next December. "You make it easier for the pilots and controllers," said Jim Crites, executive vice president for operations at D/FW. "There's no sitting there and waiting. You eliminate the need to cross a runway. It doesn't get any better than that." Runway lighting: D/FW is one of two airports where the FAA is testing a runway lighting system that works like a traffic light. The lights are embedded in the runways to give pilots a visible warning when the runway isn't safe to cross. Radar revisions: D/FW is also one of 34 of the busiest airports where the FAA has installed radar to monitor aircraft traffic. The GAO found that the radar doesn't work well when needed most – during heavy rain or snow. But the airport is scheduled to get a more advanced radar system that will give controllers a more complete view of airport activities by 2010. ***************** Lion Air MD-90 loses three-metre-long part on takeoff An MD-90 operated by Indonesia`s Lion Air has been grounded after the airline admitted that a three-metre-long part found on a runway belonged to it.The airplane lost the part on takeoff from Jakarta-Sukarno Hatta airport, December 4. Lion Air`s operational director told the Detikcom online news service the part was from the exhaust system and not vital for flight. He reportedly said it fell off the plane because of `a mistake of the workshop`. (Straits Times) (aviation-safety.net) *************** US Passenger 727 Operator Faces Uncertain Future CEO Says Champion Air May End Operations In 2008Charter operator Champion Air may soon suffer a technical knock-out, a victim to the loss of key contracts and high operating costs.The Minneapolis/St. Paul Star Tribune reports the airline, which operates a 16-plane fleet of Boeing 727 trijets, is nearing the end of a lucrative contract to fly 13 National Basketball Association teams. It also faces the loss of charter operations for Northwest Airlines subsidiary MLT Vacations... about 70 percent of the Champion's current flights.In a recent letter to federal mediators, Champion CEO Lee Steele wrote the airline faces the loss of "all contract revenue" on its current obligations by the end of August 2008, and will need new funds to survive."The NBA contract ends in 2008 and will not be renewed due to Champion's inability to upgrade to newer aircraft," Steele wrote in the October 4 letter to the National Mediation Board, obtained by the Star Tribune.Steele asked the board to delay pilot contract talks due to the airline's woes. Champion's 727s require three-pilot flight crews, including a flight engineer.For the moment, the airline is actively "seeking an investor who can be persuaded to finance a new fleet and a modified business plan."The lower [post-bankruptcy] costs at Northwest, MLT's decision to shift its business away, the NBA's desire for newer aircraft, and the burden of maintaining and trying to market an aging and inefficient B727 fleet have created a perfect storm," Steele told mediators.Champion posted a $488,000 loss for 2006, from operating revenue of $155 million. That followed a net income of $3.3 million for 2005.Many employees at Champion have responded to ongoing strife, by simply leaving. Forty percent of the 142 pilots at the airline as of January 2007 have left; some have been replaced, bringing the company's current roster to 107. A number of executives have also jumped ship.A representative with the Champion branch of the Air Line Pilots Association went before Northwest executives in October, asking for opportunities for Champion pilots to hire on with Northwest."If pilots were given an opportunity to transfer to Northwest Airlines if Champion does not survive, many pilots would stick with Champion throughout the next year," ALPA's Matt Marsh said.Champion spokesman Jon Austin admitted the airline is facing its share of problems."We will need to find new business opportunities to replenish our client roster and to fuel growth opportunities," Austin said. "This is particularly important to us in the coming year as many tour operators -- including some of our longstanding clients -- are increasingly using scheduled carriers for the travel portion of their packages."FMI: www.championair.comaero-news.net *************** Air France-KLM Says It Will Bid For Alitalia Poses Serious Challenge To Rival Bidder Air One Is there a ray of hope for Italy's struggling national carrier? On Thursday, Air France-KLM announced it will make an offer for Alitalia SpA.The Wall Street Journal reports the only serious challenge to an offer from the world's largest airline, based on revenue, would come from Italian carrier Air One SpA. The tiny airline planned to make an offer ahead of Thursday's deadline.As ANN reported, Air France-KLM was rumored to be the strongest contender for Alitalia, even after a seven-month effort by the Italian government to auction off the airline came to an unsuccessful end in July.A third bidder in that auction, Deutsche Lufthansa, walked away from efforts to sell off the airline... saying taking on the struggles at Alitalia would have negatively affected its debt rating.Indeed, it's something of a puzzlement why anyone would want Alitalia. The carrier loses about $1.5 million per day, according to the WSJ, and is well known for labor woes among its unions. A recent strike by transportation workers throughout Italy did little to make the airline more attractive to potential suitors.Diogenis Papiomytis, aviation consultant with Frost & Sullivan, says Air France-KLM is the likely choice, due to past experience with such situations."Air France-KLM are the most suited investor to take over Alitalia, more so than Lufthansa because they've gone through the process of merging two totally different airlines," said Papiomytis. "And they are the ones who will benefit the most from Alitalia."A takeover by Air One may be more suitable to some within Italy's fragile government, as Alitalia would remain in Italian hands... but there's considerable doubt the small airline has what it would take, financially and otherwise, to turn Alitalia around.In contrast, Air France-KLM offers considerable resources... but it may ultimately follow Lufthansa's reasoning, that taking on the Italian airline would hurt its profitability.Market value for Alitalia is said to be €1.1 billion; the airline also has about €1.2 billion of debt.FMI: www.alitalia.com, www.airfrance.comaero-news.net *************** Texas Senator Named Ranking Member Of Aviation Subcommittee Kay Bailey Hutchison Will Replace Trent LottIn a move met with measured cheers throughout the aviation industry, on Wednesday Senator Kay Bailey Hutchison (R-TX) was appointed as ranking member of the Senate Aviation Subcommittee.Hutchison was named to replace outgoing Mississippi Senator Trent Lott, who announced last week he will resign at the end of this year.A member of the Senate Commerce Committee for 14 years, Hutchison most recently served as Ranking Member of the Space, Aeronautics, and Related Sciences subcommittee. She also sponsored important aviation legislation, including the Aviation Security Improvement Act which was signed by the President in 2000 and the Aviation and Transportation Security Act of 2001 (S. 1447) which created the Transportation Security Administration.Hutchison also served as Vice Chairman of the National Transportation Safety Board from 1976 to 1978.American Airlines CEO Gerard Arpey said the Fort Worth-based airline was "delighted" with the news. "For many years Senator Hutchison has been recognized as one of the most effective leaders in Congress on the complex technical, economic, and policy issues of aviation and aerospace," he said. "Having previously served as Chairman of the Aviation Subcommittee, there could have been no better choice by the Senate leadership to fill this important position."Several general aviation groups also applauded Hutchison's appointment to a position previously held by Lott, who in recent months spoke out as a brash opponent to GA interests."We congratulate Senator Hutchison on her well-deserved appointment to ranking member of the Aviation Subcommittee,” said Pete Bunce, president and CEO of the General Aircraft Manufacturers Association. “She has exceptional experience in aviation policy, understands industry issues and represents a state with a strong general aviation tradition. We look forward to working with her to address the critical need to modernize the air traffic control system and other challenges that lay ahead for both government and industry.""We are pleased to learn that Senator Hutchison will be serving as the ranking member of the Aviation Subcommittee," added National Business Aviation Association President and CEO Ed Bolen. "The senator is very knowledgeable on aviation issues and has an in-depth understanding of general aviation."FMI: http://commerce.senate.gov, www.senate.gov/~hutchison/aero-news.net *************** Cathay Pacific to buy 8 Airbus A330 aircraft to expand fleet; total list price US$1.7 blnHONG KONG: (AP) Cathay Pacific Airways Ltd. said Thursday it will buy eight A330 Airbus aircraft with a total basic price of US$1.7 billion (€1.15 billion) to expand its fleet capacity.It didn't disclose the actual cost of the planes. Airlines usually receive significant discounts from list prices on large orders.The Hong Kong-based airline said delivery is scheduled for between 2010 and 2012. The new planes will be used by Cathay and its sister airline Dragonair and serve destinations in Asia Pacific and mainland China, it said in a statement."This is another significant development for the Cathay Pacific Group as we continue expanding our regional and long-haul fleets to further strengthen Hong Kong's position as a leading international aviation hub," Cathay Pacific Chief Executive Tony Tyler said in the statement.Tyler said the airline was also considering leasing or buying more Airbus A320 aircraft to meet expected growth on secondary routes in the region.Today in BusinessECB stands pat as Bank of England cuts ratesA leading Asian utility to cut carbon emissionsElevation of a Murdoch son suggests plan of succession Last month, Cathay ordered 17 new Boeing planes worth US$5.2 billion (€3.53 billion). The latest order of eight aircraft will take the Cathay group's fleet size to 200 planes.The new Airbus A330 planes will be powered by Rolls Royce Trent 700 engines, according to the statement.The company said it will pay for the transaction in six installments and fund the deal through commercial bank loans, other debt instruments or cash from its operations. http://www.iht.com/articles/ap/2007/12/06/business/AS-FIN-Hong-Kong-Cathay-Airbus.php **************** US airlines ready to offer digital use aloft JetBlue to test e-mail, text messaging serviceAt a time when airlines have cut back on meals and just about everything else, US carriers are about to launch a new era that at long last will allow passengers to send e-mails and instant messages and connect to the Web.The in-flight digital revolution begins Tuesday on a plane that JetBlue Airways has equipped with free WiFi access, allowing passengers to send e-mails and instant messages via their laptops or BlackBerrys.JetBlue is the first US carrier to offer the service, but industry giant American Airlines, trendsetter Virgin America, and Alaska Airlines have said they plan to take in-flight communication a step further by offering Internet access in 2008."If it works good," David Neeleman, JetBlue's founder and chairman, said, "we'll roll it out to our whole fleet."JetBlue's WiFi test run is part of an industrywide dash to attract passengers and build customer loyalty with high-tech amenities. Virgin already offers seat-to-seat text messaging, and United Airlines' seatback LCD screens play shows from digital entertainment servers on international flights.But US carriers are lagging their international competitors. Abroad, Emirates and Virgin Atlantic Airways Ltd. already offer in-flight e-mail and instant messaging services.Several legacy airlines had hoped to offer passengers onboard e-mail access years ago. For instance, American, United Airlines, and Delta Air Lines invested in an in-flight high-speed broadband service, but pulled out after the Sept. 11, 2001, terrorist attacks, said Henry Harteveldt, Forrester Research Inc.'s principal airline analyst.Outside the United States, Singapore Airlines, Lufthansa, SAS, and All Nippon Airways had installed the service called Connexion by Boeing, but the aircraft manufacturer in August 2006 decided to shut the service down.The airborne WiFi dream has been revived with the entrance of start-up carriers like JetBlue and Virgin, which ordered their new fleets with tech-savvy customers in mind, and the Federal Communications Commission's recent auction of air-to-ground communication links, Harteveldt said.JetBlue's service will be offered on select coast-to-coast flights - including between Boston and San Francisco, San Jose, and Seattle.JetBlue passengers using wireless-enabled laptops or WiFi-enabled BlackBerry smartphones will be able to send and receive e-mails and instant messages through their free Yahoo accounts or their BlackBerry service. The service will be offered on one plane, an Airbus A320 aircraft that JetBlue has retrofitted with WiFi access points - dubbed BetaBlue. It will fly five times a day, mostly on transcontinental routes, the airline's executives said.While JetBlue's service will enable passengers to stay better connected to the world below, it won't allow them to make calls on their smartphones. Wireless technology and cellular technology use different frequencies, and the Federal Aviation Administration has signed off only on JetBlue's WiFi offering, which the carrier tested extensively to prove it won't interfere with the flight controls or navigational equipment.JetBlue's service, which will begin Tuesday on an 8 a.m. flight from New York to San Francisco, probably will be a welcome perk. According to a survey of 1,077 passengers that Forrester conducted in the third quarter, 5 percent of leisure travelers would pay $10 for Internet access on flights that last less than one hour, and 10 percent would pay on flights that last between one and two hours.more stories like this"I don't know if that's addiction or what," Harteveldt said, "but clearly we feel a need to remain in touch everywhere we are."JetBlue passenger Josh Trout, an inflatable boat manager at Portsmouth-based Life Raft & Survival Equipment Inc., said he doesn't liked being overwhelmed by unopened e-mails after trips. The 28-year-old's 8830 BlackBerry was rendered useless this week during a four-day business trip in the Bahamas, where he said he couldn't use his cellphone or WiFi services.So, the minutes that his delayed Boston-bound plane sat on the tarmac at John F. Kennedy International Airport in New York Wednesday evening provided precious time to catch up on the "copious amounts" of e-mail from customers, he said.If one of his next flights is on BetaBlue, "I'd be ecstatic," he said.JetBlue passengers won't find out that they'll be on the WiFi aircraft until they arrive at the gate. BetaBlue will not be dedicated to a specific route, the airline said. Chances are good, though, that the plane will show up at Logan International Airport, because Boston is the carrier's second-largest market and the departure point for seven West Coast routes.Passengers will be limited to a special Web page for Yahoo's e-mail or messenger. If they try to go to Google's Gmail e-mail service or to another Web page, they will automatically be routed back to Yahoo. That's because JetBlue's WiFi service is being provided in partnership with Yahoo, BlackBerry-maker Research In Motion, and LiveTV, a JetBlue subsidiary that won an FCC spectrum auction to provide the WiFi.JetBlue is offering only e-mail and instant messaging because those activities consume less bandwidth than surfing the Internet, watching streaming videos, or playing online games. The carrier said it is not ruling out wider Internet access in the future.Travelers will be allowed to hop online while the airplane is at or above 10,000 feet. The aircraft will be equipped with a LiveTV technician sitting in a jump seat at the back of the plane to provide tech support, but it won't be outfitted with electrical sockets for recharging the devices' drained batteries.So far, the service has kinks. As BetaBlue flies across the country, its onboard monitors pick up a WiFi signal from 100 base stations that are spaced roughly 300 miles apart throughout the United States. The signal is handed off between bases, which can cause the service to conk out.During a two-hour, secret trial run from New York to just south of Washington, D.C., and back Wednesday, passengers ran into error messages for at least the first 15 minutes that said the Web pages wouldn't load. A technician rebooted the onboard server.The next day, the airline discovered the problem was that a ground cell tower had fizzled out - something a JetBlue spokeswoman said happens "very infrequently." http://www.boston.com/business/technology/articles/2007/12/07/us_airlines_ready_to_offer_digital_use_aloft/?page=2 **************** Adam Aircraft A700 Certification Program Achieves Major Milestone in Receiving First... Adam Aircraft A700 Certification Program Achieves Major Milestone in Receiving First TIA from FAAENGLEWOOD, Colo.--(Business Wire)--The Adam Aircraft A700 program has accomplished a major milestoneby receiving its first Type Inspection Authorization (TIA) from theFederal Aviation Administration (FAA). With this significantendorsement, the Adam Aircraft Flight Test Program is entering into anew phase where FAA representatives are authorized to begin flighttesting on the A700 for FAA certification credit. "This event confirms we are on target for achieving FAAcertification of the A700 in 2008," said Adam Aircraft PresidentDuncan Koerbel. "We have steadily moved from our first flight of thefully conforming A700 this spring into FAA testing by taking advantageof the commonality with the already certified A500 twin piston as wellas over 900 hours of development flying with the first two A700prototypes." In order to secure Type Certification of the A700, Adam Aircraftwill have four flight test aircraft dedicated to TIA tasks. The FAATIA validates that Adam Aircraft has submitted all necessaryinformation, including technical data, required to begin typecertification and concurred that the system under test reached a pointwhere it will meet all applicable FAA regulations. "We are meeting andexceeding our performance goals and will deliver what we believe to bethe best value for price, performance and cabin size in the VLJclass," Koerbel said. "Our first A700 TIA from the FAA is the formal starting point forFAA compliance certification flight testing of the aircraft. Thisevent is a culmination of the efforts of the entire company and is atestament to the work accomplished to date," said John Wolf, AdamAircraft Chairman and CEO. "We are grateful to the FAA team for theirsupport throughout this process." "Historically, new aircraft programs that have gone through therigorous testing to receive a TIA have also successfully obtained aType Certificate. TIA for the Adam Aircraft Flight Test Program willbe the first of many that the company will receive for the A700 whichwill lead to the final goal of full Type Certification," said Wolf. Adam Aircraft is currently testing the A700 Engine HandlingCharacteristics. Environmental testing will also begin next week atthe world renowned McKinley Climatic Chamber at Eglin Air Force Basein Florida. Used by the military and civil aviation, aircraft testsare conducted at extreme temperatures and in severe weather conditionsincluding hot weather, cold weather, freezing rain and blowing snow.Testing will involve Adam Aircraft personnel, Williams Internationaland the FAA. Adam Aircraft is a designer and manufacturer of advanced aircraftfor civil and government markets. The company uses computer-aideddesign, rapid prototyping, advanced manufacturing techniques, andcarbon composite materials to produce high-performance aircraft atattractive prices. The A500 twin-engine piston aircraft has been TypeCertified by the FAA, and the A700, which is currently undergoingflight test and development, will carry seven people and feature thebest people-to-price performance ratio of any VLJ. Adam Aircraftheadquarters are based at Centennial Airport (APA) in Englewood,Colorado, with additional facilities in Pueblo, Colorado, and Ogden,Utah. To learn more about the company, visit www.adamaircraft.com.Adam AircraftShelly Simi, 301-261-9601Cell: 202-550-0148shelly.simi@adamaircraft.com *************** Frontier subsidiary Lynx receives FAA certification Frontier Airlines' subsidiary Lynx Aviation received its operating certificate from the Federal Aviation Administration on Wednesday.Certification allows Lynx to begin operating flights from Wichita to Denver using Bombardier's Q400 aircraft.Lynx has to complete some paperwork for the U.S. Department of Transportation before it can begin the service, said Valerie Wise, air service and business development manager for Wichita Mid-Continent Airport. The flights are expected to begin sometime next week.Lynx is taking over the Wichita service from Express Jet. Express Jet has been operating the route since Oct. 1 with Embraer regional jets.• Kansas places 24th in venture capital rankingKansas ranked 24th in the nation for venture capital investment in the third quarter, according to a new report.The MoneyTree Report from PricewaterhouseCoopers and the National Venture Capital Association reported that $6.7 million was invested in Kansas companies in the July 1-Sept. 20 period."This report shows Kansas' ability to raise venture capital financing is improving," Tracy Taylor, chief executive of Kansas Technology Enterprise Corp., said in a release Wednesday. "However, more effort is needed in Kansas' efforts to attract venture capital."• Cessna completes deal for Columbia AircraftCessna Aircraft Co.' s deal to buy the assets of Columbia Aircraft Manufacturing Co. in Bend, Ore., has been finalized.Cessna's bid of $26.4 million for the producer of high-performance single-engine aircraft was accepted by the bankruptcy court last week.Now that the deal is final, the factory will carry the Cessna name and its two models of low-wing, turbocharged aircraft will be branded as the Cessna 350 and the Cessna 400.Cessna's parts distribution and network of dealers and service centers have begun plans to integrate sales and support of the two aircraft.http://www.kansas.com/business/biz_buzz/story/247421.html