Flight Safety Information December 14, 2010 - No. 255 In This Issue Get Ready for Takeoff: Brazil to Loosen Foreign Ownership Rules for Airlines FAA issues warning about laser pointers blinding pilots Lawmakers Seek Full Compliance on Air Carrier Disclosure Airbus forecasts faster recovery for industry American Airlines is inspecting 87 Boeing 757s New CASA maintenance regs to come online Report Out On FAA And 3RD Party Role In Developing RNAV Procedures RussiaInvestigators study voice recorder from crashed Russian Tu-154 Newfoundland Premier wants independent agency to monitor offshore oil safety Safety Management System (SMS) Get Ready for Takeoff: Brazil to Loosen Foreign Ownership Rules for Airlines (WSJ) With Brazil preparing to lift the foreign ownership cap on its air carriers from 20% to 49%, expect more mergers and capital-raising in the next two to three years - and opportunities for foreign airlines to penetrate Latin America's largest market. With Brazil's buoyant economy and its role as host to the 2014 World Cup and 2016 Olympics, the country's airlines are cleared for take-off. Bloomberg NewsAs of October, Brazil had 16 operating airlines. Two - TAM S.A. and Gol Linhas Aereas Inteligentes S.A. - are dominant, but there are at least four more substantial smaller carriers that could need capital or larger partners, or may want to go public. The industry fundamentals are excellent. In the first half of the year, domestic traffic grew 28%, well above the 8% global growth rate, according Sao Paulo's brokerage Coinvalores. For the full year, the domestic Brazilian flights are likely to end up 20%, more than twice the robust 7.5% projected GDP expansion. For 2011, air traffic is expected to remain strong due to both GDP growth and lower ticket prices, which are stimulating a wider demand. This growth was the impetus for the planned hook-up, announced in August, between Brazil's largest carrier, TAM, and Chilean LAN Airlines S.A. Together the two companies will stake their claim to the larger South American market as well. TAM and LAN are the companies most directly affected by the planned change in ownership rules, as they planned to combine under a single holding company, LATAM Airlines Group S.A. Their agreement, which is awaiting regulatory approval, was structured to comply with the 20% limit on foreign ownership in Brazil but is expected to be revised as soon as the new law is approved. TAM supports the change in the law because it will bring more investments to the country, its CEO, Marco Antonio, said in an email. The proposal should come to a vote in the next few months, according to Brazilian congressman Rodrigo Rocha Loures, who sponsored the bill. He expects it to be approved take effect before the end of the first half of 2011. Gol, TAM's chief rival in Brazil, has signaled that it has no plans to follow in TAM's foosteps with a merger or JV. Privately held Gol is controlled by the family of its CEO, Constantino De Oliveira Jr. In contrast to TAM, which caters to corporate customers, Gol is a low cost carrier. It expanded its franchise by acquiring Brazil's flag carrier Varig in 2007, after Varig had gone through a judicial reorganization. "But it doesn't mean a rival won't knock on his door," says an industry analyst in Brazil. U.S. airlines have been strained enough in recent years that they are probably not in a position to consider major deals in Brazil, according to analysts. But there has been speculation that British Airways had LAN and TAM in its sights. British Airways, however, has said it is not currently in discussions with any airlines. BA says it is focused on its merger with Spain's Iberia and the creation of their new holding company, International Airline Group, which it says might be a vehicle for further consolidation. Beyond the two large carriers, there are others that could spawn transactions of one sort or another when the foreign ownership restrictions are loosened. "We could also see interest for the regional carriers, as the agricultural growth has strengthened some local hubs," says Felipe Rocha, analyst with Link Investimentos, in São Paulo. Another target could be Azul Linhas Aereas Brasileiras, created in 2008 by the David Neeleman, the founder of JetBlue Airways Corp., with financial backing from some of JetBlue's original investors. But the company has other plans. "The change in the law doesn't mean anything to us," Neeleman says. "We are generating enough cash. We are not thinking about this." Rather than a partnership with a larger airline, his company would probably prefer to go public. As a new company, Azul should end 2010 with a yearly rate of growth around 50%. TRIP Linhas Aereas, a regional air carrier serving more than 80 cities could also receive more investment from its U.S. partner, SkyWest Inc., holding company for SkyWest Airlines and Atlantic Southeast Airlines. The market is unsure of what to expect from the private low cost Webjet, created in 2005 by financial sector executives. After several restructurings, control now belongs to a group called GJP Participacoes. The company, which has routes between the main Brazilian cities, has recently been in the spotlight because of a series of flight cancellations, due to limited personnel. With its mix of large and small players, Brazil's airline sector plainly warrants regular reconnaissance by airlines elsewhere, and by those looking for a way to invest in Brazil's boom. Back to Top FAA issues warning about laser pointers blinding pilots HOUSTON -- The Federal Aviation Administration said it's seeing a dramatic increase in the number of people pointing lasers at pilots as they come in for a landing. "When a pilot's eyes are hit by a laser fired from the ground, or wherever, first of all it impacts his night vision instantaneously. If it is a very powerful laser it can literally blind the pilot," said aviation expert Jay Miller. What started as a nuisance, is now a serious risk, the FAA said. FAA Administrator Randy Babbitt is concerned enough to devote his Department of Transportation blog to the issue of lasers and aircraft. "Some of these exposures have required pilots to have to temporarily give up control of an aircraft to their co-pilot or abort a landing," he said. That is what happened in September at Hobby Airport. A corporate jet pilot had to turn over control to the co-pilot on final approach because he was temporarily blinded by a laser. It is a growing problem. When 11 News first reported the issue of lasers and aircraft in 2005 there were 283 incidents around the country. Those have grown steadily each year up to 1,527 in 2009. Texas is second in the nation for the number of incidents in 2009 with 143, and Houston is third in the country by city with 42. But they have exploded this year. There have been 2,585 so far in 2010, 47 of those happened right here in Houston. The most recent was Nov. 27 and involved a Southwest Jet on approach to Hobby Airport four miles away at 1,100 feet. On Nov. 13 a Southwest Jet three miles southwest of Intercontinental Airport at 5,000 feet was also hit. It is not just commercial airliners. In September; a medical helicopter on final approach to Hobby was hit at about 700 feet. It is a new generation of green lasers that are extremely powerful and relatively inexpensive that are believed to be the biggest problem. Some are even weapons grade. "All that you have to do in air combat is blind the pilot and in a single seat fighter plane that is a very critical issue," Miller said. There have been prosecutions around the country for shining a laser in a jet cockpit. It is a federal offense. Investigators think that some of the incidents are accidental because the bright lasers are sometimes used in astronomy. But they still believe the majority of them are intentional. The goal is to educate the public on how it could be catastrophic. khou.com Back to Top Lawmakers Seek Full Compliance on Air Carrier Disclosure BUFFALO (wned) - Even though the new Airline Safety Bill requires immediate disclosure of an air carrier's name when booking a flight, some ticket vendors are not complying. Today, the local Congressional delegation and the Families of Continental Flight 3407 called on the Department of Transporation to enforce the law which was signed in August. Congressman Brian Higgins says raising awareness should benefit the flying public. The South Buffalo Democrat says if some websites can tell you who is flying your plane, all of them can. "We are asking the Department of Transportation in Washington to ask for strict compliance to this law and those who don't comply should be stricly fined for their non- compliance," said Higgins. "It's not a question of ability, it's a question of will." Senator Charles Schumer says there should be serious repercussions if all the information about a flight is not provided as intended by Congress. Schumer says some travel websites are ignoring the law of the land. Continental Flight 3407, operated by the smaller Colgan Air, crashed in Clarence Center last year, killing 50 people. Poor pilot training was cited as a cause. http://www.publicbroadcasting.net/ Back to Top Airbus forecasts faster recovery for industry COLOMIERS, France European plane-maker Airbus is forecasting a faster-than-expected recovery in the aircraft industry. It says the world will need $3.2 trillion (euro2.4 trillion) in new passenger and freighter aircraft over the next 20 years. That figure translates to nearly 26,000 planes. The company cites growing demand for more eco-friendly planes, strong growth in new markets and the expansion of low-cost airlines in Asia. The company released the figures Monday during a 2010-2029 market forecast issued in Colomiers, southern France. They are slightly less optimistic than the long-term predictions of Chicago-based rival Boeing Co. Boeing says the global airline industry will need $3.6 trillion (euro2.7 trillion) in new aircraft, or 30,900 new jets, between now and 2029. http://www.businessweek.com/ap/financialnews/D9K2VMT80.htm Back to Top American Airlines is inspecting 87 Boeing 757s American Airlines is inspecting two-thirds of its Boeing 757 fleet after a hole ripped open in October on one of its 757s flying from Miami to Boston. The Fort Worth-based carrier is checking 87 of its 124 Boeing 757 aircraft based on a service bulletin issued by Boeing, airline spokesman Tim Smith said. Close to half the inspections have been completed, Smith said. "We have been accomplishing the inspections expeditiously as the aircraft flow through our maintenance facilities for other routine maintenance," Smith said. "There is nothing we can report at this time as to any findings related to the inspections." On Oct. 26, a 1-by-2-foot hole in a Boeing 757-200 aircraft at 31,000 feet opened just above the passenger loading door on the left side near the front of the aircraft. The cabin lost pressure and the plane made an emergency landing in Miami. Afterward, the plane was grounded as inspectors worked to determine what caused the hole and whether metal fatigue was at fault. Boeing issued its service bulletin Nov. 22, asking operators to inspect a portion of the upward fuselage of some 757s, Boeing spokeswoman Julie O'Donnell said. The company said 667 airplanes worldwide are affected by the bulletin. The Federal Aviation Administration is expected to make Boeing's bulletin inspections mandatory soon and is preparing an airworthiness directive for operators of the Boeing 757. On Friday, The Wall Street Journal reported that the inspections had begun and said government investigators have been looking at the American accident, as well as cracks found on a United Airlines 757, also in October. Earlier this year, the FAA required airlines to check for cracks in 135 Boeing 737s after government safety inspectors determined that metal fatigue caused a Southwest Airlines plane's fuselage to rip at 35,000 feet in July 2009. Read more: http://www.star-telegram.com/ Back to Top New CASA maintenance regs to come online New CASA maintenance regs take effect from June. CASA's long awaited revised maintenance suite of Civil Aviation Safety Regulations (CASRs) have been signed into law, and will take effect from June 27 2011. The new CASRs cover continuing airworthiness requirements (Part 42), approved maintenance organisations (Part 145), maintenance personnel licensing (Part 66) and maintenance training organisations (Part 147). "The outcome-based approach of the new regulations means there is a clear focus on safety outcomes at all times, while providing the aviation maintenance industry with flexibility," said CASA director of aviation safety John McCormick. Parts 42 and 145 at this point are only applicable to RPT aircraft and operators, and will be phased in over a two year period. Revised regs for other aviation sectors such as charter, aerial work and private flying are to "be developed at a later date, after wide consultation with these sectors," according to CASA. New rules under Part 42 for charter operators are aimed at being in place by June 27 2013, and "will combine current RPT and charter operations and require aircraft used for these purposes to be operated and maintained to the same standard", according to CASA. The new rules will ensure RPT operators establish continuing airworthiness management systems, maintenance organisations will need to introduce safety systems and human factors training, and all licensed aircraft maintenance engineers will have their licences re-issued. Detailed information on the regulations is available on the CASA website http://australianaviation.com.au/2010/12/new-casa-maintenance-regs-to-come-online/ Back to Top Report Out On FAA And 3RD Party Role In Developing RNAV Procedures December 14, 2010 - On Friday the U.S. Department of Transportation's Office of Inspector (OIG) issued their report on the Federal Aviation Administration's (FAA) oversight of new flight procedures using Area Navigation (RNAV) and Required Navigation Performance (RNP) and its use of third parties to develop them. These technologies are key building blocks for the Next Generation Air Transportation System. It will provide shorter and more direct flight paths, improve airport arrival rates, enhanced controller productivity, fuel savings, and reduced aircraft noise. OIG conducted their review at the request of the Chairman of the House Subcommittee on Aviation, who stated that a clear understanding of third-party roles is needed before they can be expanded. Overall, OIG found that the role of the two third parties the FAA had approved to develop RNP procedures remains unclear, as well as FAA's strategy for implementing timely, high-value routes using in-house resources. The FAA has also not fully established an oversight program for third parties, defined the staffing levels needed to oversee them, or finalized key guidance to industry on qualifications to become a third-party developer. OIG made eight recommendations to help the FAA effectively implement and coordinate RNAV/RNP procedures and establish an oversight program for third parties. Overall, the FAA's response met the intent of most of their recommendations; however, OIG has requested that FAA provide additional clarifying information for three of them. FAA has clarified its role in developing new RNP procedures, stating that it will primarily rely on its own resources rather than third parties. Therefore, the role of the two third parties FAA has approved to develop RNP procedures remains unclear, as well as FAA's strategy for implementing timely, high-value routes using in-house resources. Thus far, the FAA has mostly delivered overlays of existing routes that do not provide shorter flight paths to alleviate airspace congestion, a major industry concern. This is because the FAA has mainly focused on developing a targeted number of procedures each year, not measuring user benefits. As a result, airlines have not widely used the FAA's RNP procedures and state that third parties may provide additional technical expertise to develop the procedures they need. The FAA contends that it has the technical expertise to deliver more efficient procedures without third parties but has yet to assess its in-house skill mix. The FAA also has not fully established an oversight program for third parties, defined the staffing levels needed to oversee them, or finalized key guidance to industry on qualifications to become a third-party developer. Such guidance is essential, as third parties would perform procedural development and maintenance functions historically performed solely by FAA. In 2007, the FAA's Flight Standards Service established a third party oversight office, but it will be difficult to determine how many staff this office will need until the FAA better defines the extent of third party use. The FAA also faces resistance to the third- party program within its Air Traffic Organization (ATO) Office of Aviation Systems Standards and organizational barriers among various lines of business that could delay new, comprehensive oversight policies. Thus far, these problems have impeded the FAA's ability to oversee its own procedures, which raises questions as to how effectively the FAA can monitor third parties. Without a coordinated oversight system in place, the potential for operational and safety risks increases. OIG is making a series of recommendations to help the FAA effectively implement and coordinate RNAV/RNP procedures and establish an oversight program for third parties. NextGen will rely on new routes and procedures that primarily use satellite-based navigation and on-board aircraft equipment to navigate with greater precision and accuracy. These new routes and procedures are commonly referred to as RNAV and RNP. For RNAV, pilots can use a combination of Global Positioning System (GPS) and other self-contained systems on-board aircraft to fly any desired flight path by reducing the limitations imposed by ground-based navigation systems. RNP is a form of RNAV that adds monitoring and alerting capabilities to the cockpit to alert the pilot when the aircraft cannot meet specified navigation performance requirements. RNP has the potential to allow more "lanes" or routes in the same airspace, creating additional capacity where needed. Traditionally, aircraft have been required to fly routes between ground-based navigational aids to maintain required navigation accuracy of on-board systems. RNAV and RNP can increase airspace efficiency by providing more direct paths (see figure below), thereby improving airport arrival rates, enhancing controller productivity, saving fuel, and reducing aircraft noise. http://avstop.com/ Back to Top RussiaInvestigators study voice recorder from crashed Russian Tu-154 Tupolev Tu-154 airliner made an emergency landing at Moscow's Domodedovo airport Russian investigators study three versions of Dagestan-bound plane crash One engine of Dagestan-bound plane functioned until landing Moscow plane crash rooted in industry mess? Fifty-five passengers of troubled Dagestan-bound plane remain in hospitals Multimedia Tu-154 makes emergency landing in Moscow airport Tu-154 plane accident in Domodedovo airport: 3d reconstruction Specialists from the Interstate Aviation Committee (MAK), a CIS flight safety watchdog, have begun studying the voice recorders from air traffic controllers and the crew of a Dagestan Airlines Tupolev Tu-154 airliner which made an emergency crash- landing at Moscow's Domodedovo Airport on December 4, the committee said on Monday. "A flight, engineering and administration sub-committee and also a working group of air-traffic, weather, medical and other specialists is continuing to gather and process evidence and documentation for the investigation. Work is continuing on dissembling the fuel pumps in the aircraft's fuel system," MAK said. MAK specialists have also taken fuel from the tanks of the left wing, and fuel and oil from the left fuselage engine and also taken samples of fuel from the tanker supplies at Vnukovo Airport, from where the aircraft took off en route to Makhachkala, Dagestan. "Together with Tupolev company specialists, we are studying fragments of the aircraft and looking at the flight instruments and cabin equipment." MAK said. Two passengers died and 80 were injured from the 163 passengers and ten crew on board after the Tu-154 made an emergency landing at Domodedovo shortly after taking off from Vnukovo Airport. The fuselage broke into several pieces when the aircraft ran off the runway at Domodedovo. http://en.rian.ru/russia/20101213/161751729.html Back to Top Newfoundland Premier wants independent agency to monitor offshore oil safety The Newfoundland and Labrador government wants an independent safety agency for its offshore oil sector after a deadly helicopter crash prompted calls for a regulatory overhaul. "I will be contacting the federal government to begin discussions about the setup of a stand-alone regulator," Premier Kathy Dunderdale said to applause in the House of Assembly Monday. "There is nothing more important than human safety in our offshore. This is a matter of high importance and we will work expeditiously with our partner, the federal government, to ensure this happens as quickly as possible." The province jointly manages offshore resources with Ottawa under the Atlantic Accord. A spokesman for Natural Resources Canada said the department is reviewing the recommendation and will work with the province. But Paul Duchesne said the Canada- Newfoundland and Labrador Offshore Petroleum Board - which now oversees offshore safety - is "a strong, independent regulator." The Premier's remarks came just hours after the board said it will act on almost every recommendation from the helicopter safety inquiry. But chairman Max Ruelokke stressed it is up to the province and Ottawa to create a new and truly independent safety body. Critics say the board is in a conflict of interest because it has the task of developing offshore resources to the maximum extent while also protecting workers and the environment. The helicopter safety probe was called after Cougar Flight 491 crashed into the sea on March 12, 2009, killing 17 of 18 people on board. Inquiry head Robert Wells made 29 recommendations last month to improve the safety of helicopter travel to offshore oil platforms. Ms. Dunderdale said the provincial government accepts every one. The board said it accepts 27 of the recommendations in full. It will continue banning night flights except for medical emergencies, and will reassess that recommendation when a fully equipped search and rescue chopper is certified, likely in coming months. Mr. Ruelokke told a news conference Monday that workers who don't feel safe flying at night have the right to refuse. Mr. Wells also called for a safety regulator independent from the board to better safeguard workers and the environment. Mr. Ruelokke deferred to the province and Ottawa. "We believe that decision is a policy matter, and policy should be determined by those people who are elected to govern - not by regulators," he said. The province's support for independent oversight runs counter to oil companies that told the inquiry there's no need for a regulatory shakeup to enhance helicopter safety. Mr. Ruelokke stressed Monday, as he has before, that the board's chief safety officer already acts independently. And he noted that tragedy and near-misses have struck oil-and-gas jurisdictions in Norway, the United Kingdom and Australia that have separate safety agencies. "Helicopter transport of workers does present risks," he said. Mr. Ruelokke cited a February, 2009, incident in the North Sea in which all 18 offshore workers were rescued after a controlled ditching. In April, 2009, the month after the Flight 491 disaster, a helicopter crashed in the North Sea, killing all 16 people on board. "These incidents also demonstrate that the training and equipment provided to offshore workers is to improve their chances of survival in the event of a controlled ditching," Mr. Ruelokke said. "A crash is an entirely different event and, unfortunately, when crashes happen, training and equipment may not be enough." Still, Mr. Wells stressed in his four-volume report the need for more "proactive and vigorous" regulation as companies seek oil far from shore. He also noted that the shift a year ago to a goal-based offshore regulation system requires a safety watchdog that is "powerful, independent, knowledgeable and equipped with expert advice." "Safety should never, ever be taken for granted," Mr. Wells said in an interview. "Oil operators are going further afield into deeper and more dangerous waters. Therefore, the emphasis on safety has to be absolutely top-notch. http://www.theglobeandmail.com/news/national/atlantic/newfoundland-premier-wants- independent-agency-to-monitor-offshore-oil-safety/article1835221/ Curt Lewis, P.E., CSP CURT LEWIS & ASSOCIATES, LLC