16 JAN 2008 _______________________________________ *Philippines orders air safety audit after FAA downgrade *Qantas flight targetted by laser *US Congressional leaders concerned about runway safety *WSJ: Delta Merger Could Be Announced By Mid-February *Reports: Boeing To Announce Second Delay To 787 Program *************************************** Philippines orders air safety audit after FAA downgrade MANILA (AFP) - The government in the Philippines has ordered an air safety audit after a downgrading by US regulators hit its national flag carrier, a senior official said Wednesday. It follows an announcement by the US Federal Aviation Administration (FAA) that it had downgraded the country's ratings from Category 1 to Category 2 to reflect safety concerns. The revision affects Philippine Airlines (PAL), the only Filipino airline that flies to the United States -- routes which account for 30 percent of its operating revenues. But the downgrade may also lead to huge losses for the trade and tourism industries as it sends a negative impression of the Philippines, officials said. Among the FAA's concerns were outdated aviation regulations, poor training programmes for safety inspectors, and sub-standard licencing for air frame and engine inspectors. Senator Mar Roxas, chairman of the Senate committee on trade, Wednesday filed a resolution calling for an inquiry into the FAA downgrade. "It is not just enough to be compliant up to minimum (aviation) standards," he said, noting that "we have to be on par with the world's best." PAL said the FAA downgrade meant it would not be allowed to fly to new US cities or change the type of aircraft used on existing US destinations. In a statement, Transportation and Communications Secretary Leandro Mendoza said he had ordered a review into the deficiencies identified by the FAA, and vowed to rectify the problems. He said the Air Transportation Office, which is responsible for regulating air safety in the Philippines, was working with experts from the International Civil Aviation Organisation to address the problems. Mendoza promised Manila would "tap its available resources" to provide the solutions. "In effect the ATO has addressed and (is) continuously addressing the other deficiencies as per the FAA safety audit," he said. Robert Lim Joseph, president of the Network of Independent Travel Agencies, warned tourists and potential investors may shun the Philippines because of the downgrade. He said "billions of dollars" in potential revenues may be lost. Mendoza said he would urge congress to speed up passage of a bill that would create a Civil Aviation Authority of the Philippines to replace the ATO. PAL said Tuesday that the Category 2 rating bars it from increasing its 33 flights a week to the United States and US territories, and from changing the type or increasing the number of aircraft on those routes. PAL has been urging the ATO to "rectify the assessed deficiencies in its air safety oversight functions so the country can revert to Category 1." ************** Qantas flight targetted by laser Emergency services officials are investigating a report about an aircraft being targeted by laser beams in the Healesville area, north of Melboune, early this morning. The incident happened was reported by the pilots of the international flight. Country Fire Authority (CFA) spokesman, Scott Hamilton, says it is believed a person was aiming a laser beam at the aircraft to distract the pilots. He says it is a dangerous act but the flight was fortunately not affected. "The risk is that the pilots or the flight crew of the plane could be affected, certainly their eyesight could be affected," he said. "They're fairly high-powered type laser devices. One has been shone from the Healesville area up at the overhead flying Qantas planes." "Absolutely idiotic behaviour which could have ended up an absolute disaster," Mr. Hamilton said. http://www.abc.net.au/news/stories/2008/01/16/2139440.htm?section=australia *************** US Congressional leaders concerned about runway safety House aviation subcommittee chairman Jerry Costello plans tomorrow to meet with US aviation safety regulators to discuss runway safety and several close call incidents at the end of 2007. Representatives from the National Transportation Safety Board (NTSB), the National Air Traffic Controllers Association (NATCA) and the Air Line Pilots Association (ALPA) plan to meet with Costello. This follows a US government accountability office (GAO) report requested by Costello focusing on runway safety released in December 2007. "The several recent near-miss incidents, coming after the GAO's assessment that runway safety programs need more attention, are a wake up call," says Costello. He plans to discuss technology, staffing and funding. In December NATCA president Patrick Forrey sent acting FAA administrator Robert Sturgell a letter stating, "We have witnessed several alarming close calls in the airspace above Chicago and Oakland, and on runways at Philadelphia, Baltimore, and Newark." On January 3 FAA chief operating officer of the air traffic organization Hank Krakowski met with Forrey, and the two were scheduled to meet again last week. Forrey requested a meeting with Sturgell to highlight safety concerns regarding the air traffic control system, and met with the acting administrator in late December. Congress's house aviation subcommittee plans to hold a hearing on runway safety at the end of February. FAA is trying to reach a settlement offer with NATCA regarding a contract imposed on the union in 2006, while NATCA is pushing to formally reopen contract negotiations. Source: Air Transport Intelligence news *************** WSJ: Delta Merger Could Be Announced By Mid-February But Lawmakers May Be Concerned About Anti-Trust Violations The Delta Air Lines merger story may get very exciting, very quickly. Less than a year ago, Delta was campaigning against a hostile takeover attempt by US Airways. Now, there are reports Delta could announce a merger with another airline within a few weeks. As ANN reported, last week -- amid analyst suggestions that US airlines must consolidate or die -- Delta CEO Richard Anderson asked his board of directors for permission to talk with United and Northwest about a possible merger. After days without official word from Delta, the Wall Street Journal now reports he got that permission on Friday, has already begun talks, and could have a merger announcement by mid-February. Calyon Securities analyst Raymond Neidl told Forbes the decision will depend entirely on whether or not Delta believes such a merger is likely to pass antitrust standards. "Delta's serious about wanting to begin talks, and Northwest and United both like to be wooed, but we need a sign from Washington that they'd give their blessing," he said. Neidl maintains Delta's hiring of consolidation proponent -- and former Northwest chief -- Richard Anderson as CEO, and the promotion of Chief Financial Officer Ed Bastian to president, indicate the airline was preparing for a merger. In November, hedge fund Pardus Capital Management attempted to convince Delta, of which it owns 1.3 percent, and United, in which it has a five percent stake, that a merger was imperative to deal with rising fuel costs. In a possible attempt to demonstrate the positive effect on stock prices a merger could have, Pardus is believed to have planted a story with the Associated Press to the effect the two airlines were engaged in urgent merger talks in mid-November. Though many industry analysts think Northwest is a more likely candidate for a merger due to several factors -- including compatible route networks, and the fact both airlines belong to the SkyTeam alliance -- part of the Pardus rumor might still prove true. It's likely the two sides would try to get the deal done before the presidential elections, to enter the regulatory approval process under the lame-duck Bush administration. FMI: www.delta.com, www.nwa.com, www.united.com aero-news.net *************** Reports: Boeing To Announce Second Delay To 787 Program Would Push First Flight To Late June, No 2008 Deliveries ANN REALTIME REPORTING 01.15.08 1845 EST: Several sources, including The Wall Street Journal and Seattle Post-Intelligencer aerospace reporter James Wallace, say Boeing will announce a second delay to its 787 Dreamliner program early Wednesday. "I have just confirmed from an industry source that Boeing will soon announce more delays in the 787," Wallace writes on his P-I blog. "As much as another three months, the source said, which would push the important power-on milestone from late January to late March, and first flight to around the end of June." Wallace adds the latest delay will also prevent the delivery of the first 787 to launch customer All Nippon Airways this year. That timeframe is in line with what was reported earlier in the Journal. That paper says the imminent announcement comes as Boeing continues to struggle with parts shortages, and other supplier issues. "I would be surprised if a delay is anything less than three months," said John Plueger, president and COO of aircraft lessor International Lease Finance Corp. He said ILFC has been expecting more delays. As ANN reported last week, several analysts predicted the planemaker might need to once again push off its development schedule for the composite-bodied aircraft... though earlier estimates pegged the additional delay at three weeks, which may now appear overly-optimistic. Boeing announced a six-month delay to the 787 program last October -- a move that didn't draw much fire from airlines with orders for the Dreamliner. Whether the airlines' reaction would be as amicable this time around remains to be seen. Stay tuned... FMI: www.boeing.com aero-news.ne