19 AUG 2008 _______________________________________ *Laser blinds passenger jet pilot *United Airlines Names Kathryn Mikells CFO *Continental will furlough up to 180 pilots *Malaysia Airlines defends engineering reputation *FAA to Southwest: Pay $10M fine by Aug. 29 *Don Dillman to become UAL V.P. of Ops. Control Center *************************************** Laser blinds passenger jet pilot The pilot of a passenger jet was blinded by a laser device as the aircraft came in to land at Durham Tees Valley Airport, police said. The KLM jet, with 40 people onboard, landed safely after the co-pilot took the controls on Sunday night. A Cleveland Police helicopter was also targeted as it searched an area around the airport near Darlington. A police spokesman said a 19-year-old man had been arrested and charged with two counts of endangering an aircraft. Ground search A Cleveland Police spokeswoman said: "The incoming flight from Amsterdam was coming in to land at Durham Tees Valley Airport when a laser device was shone into the cockpit. "The pilot was temporarily blinded and the co-pilot landed the plane. "When the police helicopter was sent to investigate, it too was targeted by the laser device. "Officers on the ground were able to arrest a 19-year-old man, who was outside the airport, and the device recovered." She said there were no reports of injuries. The man is due to appear at Teesside Magistrates' Court on Friday. http://news.bbc.co.uk/1/hi/england/7568645.stm ************** United Airlines Names Kathryn Mikells CFO Jake Brace To Retire From Airline November 1 United Airlines announced Monday that Kathryn Mikells will be named senior vice president and chief financial officer, succeeding Jake Brace, executive vice president and chief financial officer, who is retiring November 1. In her new position, Mikells, who has held several leadership roles in the finance organization, will be responsible for treasury, tax, the controller function, budgets, financial planning and analysis, accounting, external financial reporting, and, for administrative purposes, internal audit. She also will be responsible for mergers and acquisitions, fleet planning, corporate development and investor relations. Brace has served since 2001 as CFO, as well as in the role of chief restructuring officer, leading the company's $23 billion restructuring. Since joining United in 1988, Brace has held several leadership positions, including vice president -- Corporate Development, vice president -- Financial Analysis and controller and senior vice president -- Finance. Prior to joining United, Brace also held leadership positions with American Airlines. He will continue to serve in an advisory role to the chairman and the company's board of directors. "Jake has brought significant capability to the role of CFO, combining strong business acumen, a solid financial background and critical thinking at a time when the company was going through a complex restructuring. We thank Jake for his unwavering commitment to United, and for leading the work that enabled this company to restructure and compete in a challenging competitive environment. We wish him well in the next phase of his career," said Glenn Tilton, United chairman, president and CEO. "Kathryn is a demonstrated leader who successfully managed critical departments within the finance organization. She is well suited and well prepared to take on the role of chief financial officer." Mikells most recently served as vice president of Investor Relations, representing United to the business and financial analyst community, and working closely with investors. Prior to that, Mikells held the role of vice president of Financial Planning and Analysis, responsible for business development and analytical support for business decisions and financial planning, including overseeing the company's operating and capital budgeting functions. She was previously vice president and treasurer for United, where she was responsible for United's treasury department, including corporate finance, risk management, cash management, insurance and corporate tax. "I have worked with Kathy for more than 10 years, and this is a role that she has prepared for, worked hard for, and that is well deserved," Brace said. Mikells joined United in 1994 as a financial analyst. She has held several leadership positions, including vice president of Corporate Real Estate, director of Corporate Planning, managing director of United NetVentures, chief financial officer of Mileage Plus, director of Financial Analysis, and manager of Operating Budgets and Treasury. Prior to joining United, Mikells spent six years in the financial services sector, including positions at GE Capital's Corporate Finance Group, Household International and Canadian Imperial Bank. FMI: www.united.com aero-news.net ************** Continental will furlough up to 180 pilots HOUSTON (AP): Continental Airlines Inc. will lay off 140 to 180 pilots in September, when the company begins reducing flights to cope with high fuel costs and a sluggish economy. The furloughs are part of about 3,000 job cuts that Continental expects. A union spokesman said Monday that the company had initially notified 500 pilots that they could be laid off, and the smaller number was "a dramatic improvement." The company said in a bulletin to employees on Friday that most of the other reductions were made through voluntary buyouts, early retirements and job sharing, reducing the need for layoffs. The pilot furloughs will start Sept. 9. If enough pilots take severance or early retirement offers, it could reduce the number of layoffs, the company said in the bulletin. Houston-based Continental said that more than 2,500 jobs have already been eliminated. The company said employees in stations that were closed were laid off, but the rest of the reductions were achieved without layoffs. The airline said it eliminated about 300 management and clerical jobs "through attrition and reduction-in-force." The company said efforts to reduce pilot furloughs were successful but "not sufficient to eliminate the need to furlough between 140 and 180 pilots. Mark Adams, a spokesman for the Air Line Pilots Association, said the company had sent layoff-warning notices to 500 of the carrier's 5,000 pilots. The union and company negotiated over retirement incentives and other measures to limit layoffs. "We saved a lot of pilot jobs," Adams said. "Would we have liked to save every pilot's job? Yes." Continental said in June that it would reduce U.S. capacity by 11 percent after the peak summer travel season ended. http://www.iht.com/articles/ap/2008/08/18/business/NA-US-Continental-Pilots. php *************** Malaysia Airlines defends engineering reputation Malaysia Airlines Engineering and Maintenance (E&M) has fought back against alleged reports blaming it for a recent spate of Qantas aircraft engineering incidents which were handled by the organisation. Malaysia Airlines E&M has released a statement advising of its standing, saying it is a certified approved organisation by 31 national aviation authorities including the Civil Aviation Safety Authority and the U.S Federal Aviation Administration. "Malaysia Airlines E&M has an impeccable track record, with over 80 customers including; Lufthansa, Saudi Arabian Airlines, Jet Airways and GECAS, one of the world's largest fleet owners and lessors," the company said in a statement released on Monday. "For Qantas, Malaysia Airlines E&M only handles heavy maintenance work for its B737-400 aircraft. To date, Malaysia Airlines E&M have only done heavy maintenance for one aircraft, registered as VH-TJU." The statement comes after media speculated that a Qantas Boeing 747-400 incident causing an emergency landing was related to the airline's decision to outsource aircraft maintenance to Malaysia. "The pilot's allegations were totally baseless. Qantas has confirmed that the aircraft was maintained in Australia, and is totally unrelated to Malaysia Airlines," Malaysia Airlines Managing Director/ Chief Executive Officer, Mr Idris Jala said. Another incident which involved a Qantas Boeing737-400 jet being grounded in Melbourne due to an air-conditioning fault was also linked to Malaysia, after news reports claimed there were 95 defects founds on the plane after maintenance by Malaysia Airlines E&M. "Qantas has stated that the air conditioning fault on the aircraft is unrelated to heavy maintenance checks done in Malaysia," Mr Jala said. "Regarding the heavy maintenance work for VH-TJU, there is no basis to the "so-called 95 defects" quoted by the media "The maintenance in Malaysia was done with the oversight of Qantas personnel. A total of 12 Qantas Engineering personnel were positioned at Malaysia Airlines E&M to provide technical oversight. In the course of the maintenance, defects were found and all these were rectified. After approvals by Qantas personnel, the aircraft flew back to Australia." "As for the case of a Qantas flight attendant experiencing a static/mild electric shock, we have investigated and identified the root cause of the issue. Although it is not possible to ascertain if the defect originated from the work at Malaysia Airlines E&M, this will be monitored for future similar work, to eliminate such instances from recurring." Regarding future maintenance in Malaysia, Mr Jala said Qantas has decided to only send 'overflow' heavy maintenance work overseas, and their decision not to send 2 of its 737-400 planes was due to space available at their work facility in Melbourne. "The decision has nothing to do with the media reports claiming that the first aircraft we maintained in Malaysia returned with a "string of defects" as these claims are totally unsubstantiated," Mr Jala said. "Malaysia Airlines E&M has 35 years of MRO experience, and is a certified approved MRO organization by 31 National Aviation Authorities. We are a highly sought after MRO provider with an excellent track record." http://www.etravelblackboard.com/showarticle.asp?id=81104&nav=2 ************** FAA to Southwest: Pay $10M fine by Aug. 29 (AP) Southwest Airlines Co. must pay a proposed $10.2-million fine by Aug. 29 or the matter of not grounding planes that missed safety inspections will be referred to the U.S. Attorney's office, the Federal Aviation Administration said. The FAA determined the penalty, announced in March, "is appropriate," the regulator said in an Aug. 12 letter to Dane Jaques, a lawyer for Southwest. The FAA reviewed information Southwest presented April 28, according to FAA regional counsel Lynette Word, who signed the letter. The agency "will refer the case to the United States Attorney's office for whatever action they deem appropriate," should Southwest fail to submit the payment, Word said. FAA spokeswoman Laura Brown released the letter yesterday. The FAA said on March 6 that Dallas-based Southwest operated 46 Boeing Co. 737s on 59,791 flights in 2006 and 2007 without fuselage inspections. Southwest hasn't yet decided how to respond to the letter, said Beth Harbin, a spokeswoman for the airline. The FAA had imposed the $10.2-million civil penalty in April against Southwest for not grounding planes that had missed inspections. A former chief maintenance worker for the FAA who was blamed for allowing Southwest Airlines to keep the planes flying retired in June. Southwest has acknowledged that some of its aging Boeing 737s flew to Long Island MacArthur Airport in the Town of Islip, opening the possibility that Long Islanders may have flown on planes that were not properly inspected. The older-model 737 300-series jets were at the center of Southwest's inspection problems. http://www.newsday.com/business/ny-bzsout0818,0,429801.story ************** Don Dillman to become UAL V.P. of Ops. Control Center Captain Don Dillman has elected to retire from American Airlines as Managing Director of System Operation Control (SOC) and has accepted a position as Vice President of Operations Control Center at United Airlines. **************