25 MAY 2009 _______________________________________ The Stamp Of Colgan Air Flight 3407 The Road to 787 First Flight - May 22 - Revising the gauntlets British Airways reports worst quarterly loss as fares slump FAA Authorization Passed by House TSA security proposals need balance, committee says *********************************** The Stamp Of Colgan Air Flight 3407 By Glenn Pew, Contributing Editor, Video Editor The fatal crash of Colgan Air Flight 3407 has commuter air transportation in the public hot seat and hot on freshly minted FAA administrator Randy Babbitt's personal plate. Just last week, and all related to the crash: One carrier was fined, four senators called for an independent investigation into federal oversight of carriers, and a then pre-confirmation Babbitt kept safety high on his list of talking points. Babbitt at a Tuesday hearing told senators, "I think we need to look at the training" and "safety will be my number-one priority." Citing growth as the driving factor that was pushing less experienced pilots to fly more commuter aircraft into unfamiliar airports, Babbit said it all adds up "to make an environment that exposes them to a lot higher risk levels." Senators who heard testimony about the February Colgan crash that killed all 49 aboard and one on the ground near Buffalo are pushing the Transportation Department's inspector general to see if regulations and oversight enforcement and compliance are having their desired effect. And a $1.3 million federal fine was issued against Gulfstream International Airlines, which once trained the Colgan flight's captain, for falsified records that allowed pilots to fly beyond regulated limits. Babbitt's comments Tuesday imply that he will hold the agency accountable to NTSB recommendations. "We have an obligation to either adopt, modify and adopt or explain why we didn't adopt any particular recommendation," Babbitt told senators. A relative of one of the crash victims of Colgan Air who earlier had the chance to interact with Babbitt and then witnessed the Tuesday hearing was optimistic about Babbitt's potential influence on the FAA, but "it will depend with how well he deals with the bureaucracy." http://www.avweb.com/avwebflash/news/colgan_crash_fatigue_faa_babbitt_ntsb_s enator_investigation_200425-1.html *********************************** The Road to 787 First Flight - May 22 - Revising the gauntlets By Jon Ostrower on May 22, 2009 3:24 PM Day one of engine testing saw the twin Trent 1000 engines run as high as 80%, with propulsion testing wrapping up around 10:30 PM PT yesterday evening, according to program sources. In addition, the aircraft underwent further testing of the flight control hydraulics and very-high frequency and high frequency radio checks. Higher power setting runs are on the docket for testing today. As the program looks ahead to the coming days, Boeing has restructured the road to 787 first flight with significant changes in the intermediate and final gauntlet tests. Scott Fancher, general manager and vice president of the 787 program, said yesterday at Boeing's annual investor conference: "In about two weeks, we'll run into what we refer to as the intermediate gauntlet test, similar to the factory gauntlet tests, but much, much more robust. Here we will operate the aircraft on engines seven days, 24/7 with aircrew on the flight deck simulating ground and flight environments, not just nominal flight profiles but a wide range of off-nominals as well, demonstrating the full robustness and gaining confidence in the robustness of the aircraft. From there, we'll go into preflight checks, taxi tests, then into first flight." Fancher added: "I also want to talk about the seven day intermediate gauntlet test, but to give you a sense for the maturity accelerating on the program originally that seven day gauntlet test was scheduled for not long before first flight. We've actually pulled that to the left, because quite frankly the systems are mature and ready to take it earlier from where we originally planned." Boeing originally planned an eight-day final gauntlet ahead of preflight checks, but now says: "Some of the final gauntlet testing has been moved into intermediate gauntlet tests to help retire risk earlier by getting through those test sequences." The company declined to specify the revised duration of the final gauntlet, saying only that "it will be much shorter." http://www.flightglobal.com/blogs/flightblogger/2009/05/the-road-to-787-firs t-flight---14.html *********************************** British Airways reports worst quarterly loss as fares slump; Airline Will Pay No Dividend, Cut Capacity By 4% May 23, 2009 LONDON - British Airways, Europe's third-largest long-haul airline, on Friday reported its worst quarterly loss since records began as it reduced tickets prices to stimulate demand amid a sharp slowdown in air travel. It also said it would pay no dividend in 2008, did not give any guidance for the year and announced further capacity cuts for the winter. It sees no sign of an economic recovery. British Airways posted a loss of 231 million pounds ($366 million) in the fourth quarter compared to a profit of 74 million pounds in the year-earlier quarter. Its operating loss came in at 309 million pounds, its worst quarterly performance since records began. Revenue fell 8% to 1.95 billion pounds. In order to fill its plane, British Airways used promotions, so that average fares declined 2.5%. Excluding currency fluctuations, they slumped 16%. British Airways shares were last down 2% in London. No guidance, no recovery The airline gave a bleak outline of the future and, unlike its rival Air France-KLM, said it sees no sign of stabilization. Chief Executive Willie Walsh told analysts in a conference call that he believes the airline isn't suffering more than its peers but is being more truthful. "I think we're calling it more accurately and more realistically than perhaps some of our competitors," he said. Shares of Air France-KLM surged on Wednesday after it reported a smaller -than-feared loss for the year and said it has seen signs of stabilization across its business. British Airways didn't give any guidance for the year, saying there simply isn't sufficient visibility, but it cautioned investors not to expect a quick recovery. It underscored that during the past downturn, after the 9-11 attacks, fuel prices were hovering around $20 a barrel. Today they are three times higher, which remains a significant weight on the bottom line. Tony Shepard, analyst at Charles Stanley, said the lack of guidance, although expected, would disappoint some investors. British Airways had previously forecast a 10% drop in revenue this fiscal year. The airline also said that it would cut capacity by 4% this winter, grounding 16 aircraft. It wouldn't detail how the cuts will be spread between long-haul and short-haul flights, but said it would make it a priority to preserve its slots. In an effort to reduce costs further, the airline said it's reviewing its fleet plan and has decided to defer the replacement of the Boeing 737-400s it operates out of Gatwick. The airline is also pushing hard to reduce staff costs. It has a pay freeze in place and is offering unpaid leave as well as part-time to its employees. It said discussions with engineering, baggage-handling and pilot unions are progressing well. But Walsh said negotiations with cabin-crew unions have stalled because of a "difference in attitude." So far the cabin-crew unions have insisted that the downturn should be addressed with temporary changes only, while management wants deeper and permanent change. British Airways also said that it's reaping the benefits of its move to a single terminal at its London Heathrow hub. It forecast its operating costs at that airport will fall 13%, or 50 million pounds, in the current fiscal year. Turning to its merger plans with Spanish peer Iberia, it said the talks continue albeit at a very slow pace. Walsh said once again that British Airways' pension deficit remains a key issue for Iberia. Source: marketwatch.com http://www.eturbonews.com/9398/british-airways-reports-worst-quarterly-loss- fares-slump *********************************** FAA Authorization Passed by House By Kathryn A. Wolfe, CQ Staff Congressional Quarterly Today The House passed an FAA reauthorization bill Thursday that would bolster aircraft inspections and passenger protections, despite Republican criticisms that some other provisions could cost thousands of American jobs. The bill (HR 915), passed 277-136, would reauthorize the agency through 2012. A manager's amendment was adopted by voice vote that strikes out the bill's now-defunct fiscal 2009 funding, which has the effect of lowering the overall authorization from $70 billion to just over $50 billion. A Senate Commerce, Science and Transportation Committee aide said that panel hopes to mark up a companion bill in June. Congress has until the end of September to clear a bill before the current short-term extension expires (PL 111-12). John L. Mica, R-Fla., ranking member of the House Transportation and Infrastrucutre Committee, criticized three provisions in the House bill, including two he said could jeopardize thousands of American jobs. He targeted primarily a provision that would require the FAA to inspect certain overseas aircraft repair stations at least twice yearly and mandate that workers there pass drug and alcohol tests. Another would cancel anti-trust immunity granted to certain airline partnerships unless it was renewed. "We can't leave here and say we eliminated more jobs, and many of these jobs, whether it's repair stations or the airline industry, are good paying jobs that people need so desperately today," Mica said. http://www.airportbusiness.com/web/online/Top-News-Headlines/FAA-Authorizati on-Passed-by-House/1$28395 *********************************** TSA security proposals need balance, committee says By AOPA ePublishing Staff Balance. That's the message members of Congress are sending to the Transportation Security Administration (TSA) regarding its proposed Large Aircraft Security Program (LASP). During a May 14 House Homeland Security Committee meeting on the TSA Authorization Act (H.R.2200), members of Congress expressed their concerns about LASP. Rep. Pete DeFazio (R-Ore.) stressed the need for the TSA to work with the GA industry to "develop reasonable security policies and procedures that strike the appropriate balance between security and the movement of goods and commerce." As it stands now, LASP lacks balance. It would apply commercial air carrier security measures to general aviation aircraft weighing more than 12,500 pounds, regardless of the type of operation. It also would require crewmember criminal record checks, watch list matching of passenger manifests, biennial third party audits of each aircraft operator, and new airport security requirements. "These policies must enhance general aviation security yet reflect the necessary flexibility and mobility needs of this diverse and important segment of our national transportation system," DeFazio said. . Committee Chairman Bennie G. Thompson (D-Miss.) said he agreed that the LASP proposal had several "problematic" requirements for GA that "may not be the most effective means of securing these types of aircraft." Thompson also noted that Congress would have more hearings on LASP to come up with a workable solution. "I assure my colleagues and industry stakeholders that the committee will closely monitor the LASP process and provide the appropriate TSA oversight and support to achieve a fair, reasonable, and enhanced general aviation security program which benefits our homeland security," Thompson said. Other committee members, including Reps. Paul Broun (R-Ga.), Sheila Jackson Lee (D-Texas), Henry Cuellar (D-Texas), Loretta Sanchez (D-Calif.), and Charlie Dent (R-Pa.), echoed DeFazio and Thompson's concerns and called for a more balanced approach to GA security. http://www.aopa.org/advocacy/articles/2009/090520markup.html *********************************** Curt Lewis, P.E., CSP CURT LEWIS & ASSOCIATES, LLC