Flight Safety Information November 18, 2011 - No. 236 In This Issue SpaceX Demo Flight To ISS May Slip FAA must justify ADS-B investment first: industry advisory group New safety lights on LAX runways will be delayed Aviation authority to celebrate 7th anniversary Flier sues Southwest, says owed 45 free drinks US airlines sue US Export-Import (Ex-Im) Bank over Air India deal TSA seeks to raise awareness of what is not allowed on airplanes Incidents of lasers vs. aircraft hit a record NMSU to host unmanned aircraft conference AI Express commander was found deficient during training GCAA sets global example in using iPad for safety audit Airline fights disclosure in NY crash suits Boeing Wins Provisional Order From Lion Air for Record 230 Jets SpaceX Demo Flight To ISS May Slip HOUSTON - Though tentatively targeted for early January, the NASA-sponsored Space Exploration Technologies Inc. (SpaceX) cargo resupply demonstration mission of the Falcon 9 and Dragon spacecraft to the International Space Station could slip a little later into the new year. "I think January is pretty aggressive," Alan Lindenmoyer, manager of NASA's Commercial Orbital Transportation Services (COTS) program, said following presentations on the status of the six-year-old cargo initiative before the American Astronautical Society national conference here Nov. 15. "At the end of this month, we will know better." Nonetheless, 2012 promises to be a year for major strides by SpaceX and Orbital Sciences Corp., representatives from the two COTS participants told the aerospace gathering. During the SpaceX demonstration mission, the Dragon spacecraft will attempt to rendezvous with the space station, allowing the U.S. crewmembers to grapple and berth the supply craft using Canadarm2. The mission's timing will depend on the outcome of NASA's SpaceX flight software assessments to identify potential hazards posed by two Orbcomm data-relay satellites carried by the Falcon 9 as secondary payloads and possible impingements of Dragon thruster firings on the station's outstretched solar panels, Lindenmoyer says. In addition, NASA intends to brief its Russian partners on the SpaceX mission strategy before signing off on the flight, according to Bill Gerstenmaier, NASA's associate administrator for human exploration and operations. Plans for a January liftoff from Cape Canaveral AFS are subject to change depending on the software test results and outcome of discussions with Russia, Gerstenmaier said from Moscow, where he was following the Nov. 16 docking of the Soyuz TMA-22 crew with the space station. Meanwhile, Orbital Sciences is preparing for a late February/early March flight test of the Taurus II/Cygnus rocket and cargo carrier from the Mid-Atlantic Regional Spaceport at the Wallops Flight Facility in Virginia, says Frank Culbertson, Orbital's senior vice president and deputy general manager. Orbital's commercial cargo carrier could be ready for a rendezvous and berthing demonstration flight as soon as late April, Culbertson says. http://www.aviationweek.com/aw/generic/story_channel.jsp?channel=space&id=news/asd/2011/11/17/06.xml&headline=SpaceX%20Demo%20Flight%20To%20ISS%20May%20Slip Back to Top FAA must justify ADS-B investment first: industry advisory group A special committee set up to steer the implementation of a critical NextGen technology has concluded there is - as yet - no business case for an equipage mandate. The Federal Aviation Administration (FAA) chartered the Aviation Rulemaking Committee (ARC) in 2010 to provide a forum for the aviation community to define a strategy for incorporating Automatic Dependent Surveillance-Broadcast (ADS-B) In technologies into the US National Airspace System. The ARC is composed of about two dozen representatives from various aviation user groups, as well as segments of industry and government. The ADS-B In ARC's initial recommendations were published at the end of September and have just been released. The committee was chaired by Steven J. Brown from the National Business Aviation Association and Thomas L. Hendricks of the Air Transport Association of America. While the ARC said it supported ADS-B as the primary mechanism to provide future surveillance for ATC in the NAS it said that, based on the current maturity of ADS-B In applications and uncertainties regarding the achievable benefits, there is not a NAS user community business case for near-term ADS-B In equipage. "Therefore, at this time, the ARC does not support an equipage mandate," it said, adding a recommendation that the FAA demonstrate to the satisfaction of the user community that equipage benefits are both achievable and operationally implementable in a cost-effective manner. "The ARC notes operational demonstrations of ADS-B In applications are in various stages of maturity but the required equipment standards, certification guidance, and operational approval guidance are not sufficiently mature to enable widespread manufacture of avionics and implementation of ADS-B In applications other than those directed toward situational awareness," said the committee. The ARC recommends the FAA use these demonstration projects to mature the equipment standards, certification guidance, and operational approval guidance to allow NAS-wide ADS- B In implementation. The ARC also recommends these field trials to validate key assumptions and benefits and to assist in relating benefits to equipage rates. It also recommends the FAA focus funding on accelerating the development of equipment standards, certification guidance, operational approval guidance, and any necessary policy adjustments to enable operational implementation of these applications. Feedback provided by the aviation community in response to those recommendations will be incorporated into an ARC final report due by June 2012 that will detail suggested next steps. http://www.airtrafficmanagement.net/view_news.asp?ID=4459 Back to Top New safety lights on LAX runways will be delayed The installation of more runway safety lights at Los Angeles International Airport has been delayed by more than a year because of a lack of federal funding, airport officials said. The $10-million to $15-million project calls for lights to be added at nine runway and taxiway intersections on the north and south sides of the airport. That would expand the system of lights that went into operation in mid-2009 at 10 locations. Connected to radar, the lights are designed to prevent runway incursions that can endanger planes taxiing to and from the terminals. The lights, which are embedded in the pavement, turn red to warn pilots when radar detects potential conflicts between planes or motor vehicles. The Federal Aviation Administration had planned to pay for and install the lights by the end of the year until the agency's budget was cut amid concerns about the federal deficit in Congress. Airport officials said that to keep the project going, Los Angeles World Airports, the operator of LAX, will pay for the lights and take over planning and installing them. They said, however, the project will not start until 2013 and the completion date has not been determined. "This is an important safety project for us," said Nancy Castles, an airport spokeswoman. "We have agreed to help the FAA get this done, although there is no official commitment yet to reimburse Los Angeles World Airports for all or a portion of the cost." http://latimesblogs.latimes.com/lanow/2011/11/new-safety-lights-on-lax-runways-will-be-delayed.html Back to Top Aviation authority to celebrate 7th anniversary ST JOHN'S, Antigua - The Eastern Caribbean Civil Aviation Authority (ECCAA) will celebrate its 7th anniversary as an independent civil aviation authority serving the OECS member states on December 1, 2011. The Eastern Caribbean Civil Aviation Authority is guided by the motto "Aviation Safety through Service and Partnership." Director General of the ECCAA Donald McPhail said the purpose of this recognition is to promote the importance of civil aviation in the social and economic development of states in general and of the OECS member states in particular, where the availability of air transportation is critical. McPhail said the most significant contribution of the ECCAA to the people of the OECS over the past seven years has been safety in transportation. "This is what the Eastern Caribbean Civil Aviation Authority is all about," he said. "It is charged with the responsibility to ensure the highest level of safety and security in civil aviation in the OECS. In carrying out this mandate, our organisation conducts safety and security oversight of all the airports, air traffic control systems including air traffic controllers, airlines, airplanes, aircraft maintenance facilities, pilots and engineers, in its efforts to ensure compliance of the applicable international standards and recommended practices on the parts of these entities. "This is done basically through a system of audits, inspections, tests and surveys." The ECCAA evolved from the Directorate of Civil Aviation (DCA) - Eastern Caribbean States established in 1957. From inception, the directorate was seen as a vehicle for facilitating a collective and uniformed approach to civil aviation matters affecting the then Windward and Leeward Islands, which now comprise the Organisation of Eastern Caribbean States (OECS). In 1961, the primary responsibility of the DCA was revised "to advise the governments of the Windward and Leeward Islands on all matters relating to civil aviation, including airfields and airport development, the implementation of ICAO conventions and the adequacy of air services." In 1982, the directorate became an institution of the OECS through the Treaty of Basseterre, which established the OECS. At the 35th Meeting of the OECS Heads of Governments, in 2002, the heads decided that, "a fully autonomous body should be established with the responsibility to regulate civil aviation activities within OECS Member States." Acting upon this mandate, in October 2003 at St Georges, Grenada, the OECS ministers responsible for civil aviation signed the agreement establishing ECCAA. However, this agreement had to be given legal effect through Acts of Parliament in OECS member states. By October 2004, five member states had passed the Eastern Caribbean Civil Aviation Agreement which signalled the ECCAA's birth. To date, the ECCAA regulates Civil Aviation in six of the OECS States: Antigua & Barbuda, St Kitts & Nevis, Dominica, St Lucia, St Vincent & the Grenadines and Grenada; and provides Communications, Navigation and Surveillance (CNS) services to the above mentioned states as well as to Montserrat, Anguilla and the British Virgin Islands. http://www.antiguaobserver.com/?p=67455 Back to Top Flier sues Southwest, says owed 45 free drinks (Reuters) - Southwest Airlines Co (LUV.N) was sued by an Illinois man over the discount carrier's decision to stop honoring coupons for free alcoholic drinks, which it had given to select travelers and which lacked expiration dates. The plaintiff Adam Levitt said Southwest had for years awarded customers like him, who bought tickets through its premium-priced "Business Select" program, hundreds of thousands of coupons for the drinks, which would otherwise cost $5 each. But on August 1, 2010, Southwest changed its policy, and said Business Select passengers may use their coupons only on the day of travel printed on them. Some other passengers were given more time. "In an industry where the competition is always knocking (or banging) on the door and where watching the bottom-line is more important than ever, we owe it to our employees, customers, and shareholders to find ways to operate smarter," Mike Hafner, vice president of cabin services, wrote on a company blog. Levitt, who lives in the Chicago area, said the policy change amounted to a breach of contract. He attached to his complaint copies of 45 coupons for free drinks, which he said he had accumulated and which the change left worthless. "Southwest decided that it would make more money -- improve its 'bottom-line' -- by choosing not to honor the coupons that consumers had already paid and bargained for," said the complaint filed on Wednesday in Chicago federal court. The lawsuit seeks class-action status for Southwest customers in the United States with unredeemed drink coupons. It seeks compensatory damages and other remedies. Southwest had no immediate comment. A lawyer for Levitt did not immediately return a call seeking a comment. U.S. carriers are reducing services and cutting expenses as fuel costs rise and an uncertain economy threatens to reduce demand for travel. Southwest, based in Dallas, has long been among the healthiest major U.S. carriers financially. The case is Levitt v. Southwest Airlines Co, U.S. District Court, Northern District of Illinois, No. 11-08176. Back to Top US airlines sue US Export-Import (Ex-Im) Bank over Air India deal WASHINGTON: In a bid to prevent Air India from receiving a $3.4 billion loan for the acquisition of 30 new aircraft, a trade body for leading US airlines has sued the US Export-Import (Ex-Im) Bank. The loan comes at entirely too high a price and "puts us at a competitive disadvantage", the Air Transport Association of America (ATA) President and CEO Nicholas E. Calio remarked. The ATA filed a suit with US District Court here, asking the court to deem the Ex-Im Bank's loan-guarantee unlawful. According to ATA officials, the Ex-Im Bank has already approved a $1.3 billion loan for Air India, with an additional $2.1 million pending consideration; the loans would support the carrier's acquisition of 30 aircraft, including 27 Boeing 787s for delivery between 2011-2015. The lawsuit follows an ATA letter to the Ex-Im Bank earlier this month, which said that loan guarantees to Air India and other foreign carriers fail to comply with specific statutory mandates and US taxpayers could be left to foot the bill for any default by a foreign carrier on its loans. With this lawsuit, ATA officials hope to prevent foreign carriers from receiving drastically lower - up to 50 percent - financing rates than US airlines. After all, an ATA spokesman said, the discounts afforded to these carriers have certainly added up. "Having received more than $52 billion in US taxpayer-funded loan guarantees over the last 10 years, foreign carriers have added capacity and gained market share," he remarked. In fact, such Ex-Im Bank guarantees have enabled these airlines to increase their capacity on US routes by 12 percent, he said. The overcapacity has also forced some American carriers to reduce their flight schedules and cut jobs, two actions Calio hopes to prevent with this injunction. "ATA has no choice but to seek judicial intervention in order to prevent our members from suffering irreparable injury," he said in a statement. "While we support the goal of expanding US exports, it cannot come at [this] expense." "Commercial aviation in the United States drives $1.2 trillion per year in economic activity and more than 10 million jobs; we cannot do that if we continue to face a harsh and punitive tax and regulatory environment that, along with this proposed action, puts us at a competitive disadvantage," Calio said. "It's time to level the playing field." http://economictimes.indiatimes.com/news/news-by-industry/transportation/airlines-/-aviation/us-airlines-sue-us-export-import-ex-im-bank-over-air-india- deal/articleshow/10778381.cms Back to Top TSA seeks to raise awareness of what is not allowed on airplanes NEWARK, N.J. - A cache of replica guns and grenades, daggers and hatchets, a slingshot, a pipe bomb - even a belt made of bullets - were piled into plastic bins on a table in a side room at Newark Liberty International Airport on Thursday morning. The items and 8 more tons of potentially dangerous and sometimes strange objects are collected each year from passengers trying to get past airport screeners, Transportation Security Administration officials said. "A homemade slingshot," Lisa Farbstein, a TSA public affairs manager, said as she picked up the wooden rock-launcher from a table. "Uncool at the airport. You don't want to see that." The TSA "show and tell" event Thursday was an effort to raise public awareness of what is not allowed on airplanes, as the holiday season approaches - although officials acknowledged some of the prohibited items should seem obvious to the regular traveler. A shiny stainless-steel serrated knife, about 1 ½ feet long, similar to the one flashed in the Rambo movies, for example. Or an inert land mine that one traveler had stashed away in his carry-on luggage. Upon opening the bag, an airport screener saw the words engraved into the metal device: "This side toward enemy." "Imagine being the officer who gets called for the bag check and opens it up to see that," said Thomas Carter, the airport's deputy federal security director. For questions about other, less obvious items, the TSA announced the creation of a mobile device application that shows what is permitted on carry-on baggage. A stapler? Farbstein typed the word on an iPad that displayed the application. The program reported the office supply is allowed in checked luggage or carry-ons. When she entered "knitting needles," the program asked what kind: "bamboo," "circular metal," "plastic?" Not all knitting needles are prohibited, Farbstein said. As Newark TSA officials displayed the load of prohibited items passengers had turned over in just the past few weeks, Republicans in Congress were calling for reforms at the 10-year- old agency. A report released by the Transportation and Infrastructure Committee, presided over by Florida Republican John L. Mica, called the agency "bloated" and ineffective. Don Drummer, the top TSA official at Newark Liberty, who took over six months ago following reports of low morale among TSA employees and several security lapses, declined to comment on the congressional report. But he said Newark had made progress in the last half-year. "You will probably see that we have processed over 8 million passengers, over 4.5 million checked bags, 24 million carry-on items screened over that time, and we haven't had any significant access incidents," Drummer said. "It's a function of training, it's a function of supervision." Nationally, since January, the TSA has confiscated 1,080 firearms leading to 689 firearms arrests, officials said. In the two weeks from Oct. 26 to Nov. 8 alone, screeners detected 59 firearms, an average of nearly four each day. Firearms and concealed weapons are of the greatest concern, Drummer said, standing near a belt with a buckle that also served as the handle for a hidden knife. But screeners spend significant time on potentially dangerous non-weapons that people inadvertently pack, slowing security lines, he said. "Sometimes they forget to take something out, sometimes they are in a hurry," he said. "But at the end of the day, they understand it's all about security." The prohibited items voluntarily handed over to screeners are donated to the Pennsylvania State Surplus Agency, Drummer said. The items are resold to the public by the state at a distribution center in Harrisburg, according to its website. http://news.bostonherald.com/news/national/northeast/view.bg?articleid=1381939&format=&page=2&listingType=natne#articleFull Back to Top Incidents of lasers vs. aircraft hit a record 'They have the potential for doing a lot of damage,' FAA administrator says. There have been more than 3,000 reported instances of lasers being pointed into aircraft so far this year - eclipsing the previous one-year record logged in 2010, according to federal aviation officials. "We don't want anybody laboring under the assumption that these are toys," said Randy Babbitt, administrator of the Federal Aviation Administration. "They're not. They have the potential for doing a lot of damage." Babbitt said in a Thursday telephone interview that as of Nov. 11, there have been 3,048 reported laser incidents across the country. The previous high was 2,836 incidents recorded last year. FAA's formal reporting system began in 2005. In St. Louis, there have been 20 laser incidents so far this year, FAA officials said Thursday. Last year, there were 17 recorded in the airspace near Lambert-St. Louis International Airport. When a high-powered laser shines into the cockpit of an airplane or helicopter, it can temporarily blind a pilot and make it difficult to safely fly or land the aircraft, Babbitt said. Federal authorities have pursued civil cases against people for violating FAA prohibitions against interfering with a flight crew. Violators could be subject to a civil fine of up to $11,000. Babbitt, a former commercial airline pilot, said the FAA and pilots groups support pending legislation that would make such misuse of lasers a stand-alone crime. Earlier this year, an O'Fallon, Mo., man issued a public apology for shining a green laser into the cockpit of Metro Air Support helicopter. A week later, in an unrelated incident, another helicopter was hit with a green laser above the Webster Groves area. Babbitt said the FAA recently launched a website to provide information on the danger of laser incidents and to make it easier for pilots and witnesses to report the incidents. Read more: http://www.stltoday.com/news/local/metro/incidents-of-lasers-vs-aircraft-hit-a-record/article_3aa8aadc-df4c-5e0b-907e-efd1ce6e0936.html#ixzz1e3Bj8sHD Back to Top NMSU to host unmanned aircraft conference LAS CRUCES - The New Mexico State University Physical Science Laboratory will host its 13th annual UAS TAAC (Unmanned Aircraft Systems Technical Analysis and Applications Center) Conference on Dec. 6-8 at the Tamaya Hyatt Regency in Santa Ana Pueblo. "The significance of a UAS conference in New Mexico continues to grow as we see development of the industry in the state," said Steve Hottman, associate dean and deputy director for research at PSL. "Our conference efforts have not only attracted the interest and support of industry and government leaders, but also have acted as a great platform for drawing business to the state, as with the recent Vulture project PSL is working on with DARPA." On Sept. 30, NMSU announced that PSL had entered a contract with the Defense Advanced Research Projects Agency to assist in the development and lead the flight-testing of the Vulture unmanned aerial vehicle, the prime contractor of which is Boeing. The Vulture II will have a 400-foot wingspan and weigh between 5,000 and 7,000 pounds. The idea for the Vulture, and NMSU's involvement in the project, began a few years ago at a UAS TAAC Conference. Topics for this year's conference include airspace access; the use of UAS by law enforcement, homeland security and the military; the availability of spectrum and bandwidth; and the challenges and opportunities facing unmanned aircraft systems. http://www.lcsun-news.com/las_cruces-news/ci_19362417 Back to Top AI Express commander was found deficient during training MUMBAI: The Air India Express commander who landed a Boeing 737 with 87 passengers at Oman's Salalah airport early this month by violating a number of safety norms was a former Indian Navy pilot who quit the force to join the airline. He had also faced difficulties in completing his command training on the commercial aircraft. Commenting on the commander's training and flying record, an Air India Express spokesperson said that some deficiencies were found during his training, but he was given adequate corrective instructions. After getting command, the captain had done over 1,000 hours of incident and accident-free flying. The Salalah incident occurred during his notice period as had resigned with plans to join a private airline in India. The commander and co-pilot are currently grounded and the Directorate General of Civil Aviation ( DGCA) is investigating the incident. On November 3, Air India Express flight 441 from Cochin landed at Salalah airport in a strong cross-wind of 35 knot after making two failed attempts at landing. The commander of the aircraft had violated the air-safety norm that disallows a Boeing 737 from landing when surface wind speed is over 25 knot. The commander also took other faulty decisions such as choosing to autoland though he was not trained to do so and despite the fact that the wind speed on ground was more than the maximum limit (to do an autoland) laid down by aircraft manufacturer Boeing. He also fed wrong data into the Flight Management System (FMS) which led him to believe the aircraft did not have enough fuel to divert and land safely in Abu Dhabi, the alternate airport listed in the flight plan. "Since the commander believed that there was not enough fuel to fly to any other airport, he must have decided that he had to land in Salalah under any circumstances,'' said a source. "That could have been dangerous had the weather deteriorated further,'' he added. The aircraft is grounded for repairs. The Air India Express flight 441 incident has now turned into a talking point among the airline's pilots as they cite it as an example of the continuing poor training standards in the carrier, which had an accident in May 2009 that killed 155 people. http://timesofindia.indiatimes.com/india/AI-Express-commander-was-found-deficient-during-training/articleshow/10775550.cms Back to Top GCAA sets global example in using iPad for safety audit GCAA announces "e-auditing" using Q-Pulse iPad app for audits. The app is available now for Q-Pulse users. Also available is an iPad app for Documents to reduce flight-deck paperwork WAM Dubai, Nov 15th, 2011 (WAM) -- The General Civil Aviation Authority (GCCA) has become the first aviation regulator globally to embrace mobile technology to enhance their oversight responsibilities by using the iPad to carry out safety audits. As the regulator of one of the fastest growing aviation markets in the world, the GCAA is committed to ensuring that this growth is managed safely. The initiative for adopting the iPad application was officially announced at the GCAA chalet in Dubai Airshow 2011 by Said Mohammed Al Suwaidi, Director General of the GCAA, and Ashley Marron, Gael's CEO. Safety auditors from GCAA and representatives of different airline were among the attendees. Monitoring the safety performance of more than 768 operators and 595 registered aircraft requires the regulator to implement efficient and effective oversight measures which is why the GCAA engaged with auditing technology specialists, Gael. The GCAA and Gael have a history of delivering ground-breaking initiatives having implemented "e-auditing" - a project which allowed the regulator to move from a laborious paper- based process to an electronically managed system that offered greater efficiency and dramatically improved traceability and analysis functionality . Executive Director for Aviation Safety Affairs, Ismaeil Al Balooshis, Said: "We were the first regulator in the world to implement such a robust electronic auditing platform and the project has been a huge success, resulting in a better relationship with our stakeholders, improved knowledge sharing and, ultimately, safer skies above the UAE." The GCAA identified that the audit process could be evolved to take advantage of mobile technologies like the iPad. Gael's CEO Ashley Marron stated "GCAA have provided us with a true insight and vision for how technology can be used to streamline processes and improve safety and quality without adding layers of bureaucracy. We are delighted to have worked closely with the GCAA to deliver their vision with the development and launch of the mobile Ipad products, which are set to transform how managing and performing audits will be performed in the UAE and beyond. Listening to our customers is a core principle of how we run our business and the outstanding relationship with the GCAA is a perfect of example of true collaboration working for the benefit of both companies." At the conclusion of the audit, the iPad facilitates a more accurate and collaborative close out process that allows the auditor and auditee to review and amend findings before submission. Once uploaded to Q-Pulse, the findings can automatically initiate non-conformance workflow and action tracking functionality. Khalid Ahmad Mousa, Audit Development Manager at the GCAA said of the technology "By using the iPad our auditors are spending more time assuring safety and less time duplicating data entry from their clipboard checklists to a system in their office. This allows immediate acceptance of the audit report meaning that when they leave the site their role in the audit is over until findings are actioned. The more I can get them auditing the more workload we can cover with same number of staff." WAM/ES/AM Bob Trevelyan President Sextant Readings 3020 Kerner Blvd, Suite E San Rafael, CA 94901 T: 415 457 1905 C: 415 717 3289 btrevelyan@sextantreadings.com bobt@gaelquality.com http://www.sextantreadings.com http://www.sextantreadings.com/American_Aviation_Brochure_Web.pdf Sextant Readings Solutions Inc. represents Gael Ltd. and Q-Pulse - the leading risk, safety and quality management software and services company - for the Americas' Aviation Business, with headquarters at 7119 E Shea Blvd, #109-561, Scottsdale, AZ 85254. Sales/Support can be reached at 3020 Kerner Blvd, Suite E, San Rafael, CA 94901 and +1 415 457 1905. Member NBAA National Business Aviation Association Member HAI Helicopter Association International Member AAAE American Association of Airport Executives Back to Top Airline fights disclosure in NY crash suits BUFFALO, N.Y. (AP) - Colgan Air is asking a judge to keep confidential statements and documents it's filed in lawsuits stemming from the 2009 crash of Continental Flight 3407 near Buffalo. In a motion filed Thursday in federal court in Buffalo, the regional airline and its parent, Pinnacle Airlines, say they want to stop lawyers for passengers' families from swaying potential jurors. The motion comes after the release last month of internal Colgan emails about pilot Marvin Renslow's qualifications to fly the type of aircraft that crashed. The emails created a media firestorm and raised questions about whether Colgan had improperly withheld important information from the federal agency that investigated the crash. Attorneys for the families on Thursday strongly denied that they're trying to sway potential jurors. Back to Top Boeing Wins Provisional Order From Lion Air for Record 230 Jets Nov. 18 (Bloomberg) -- Boeing Co. won a provisional order, worth $21.7 billion at list prices, from Indonesian budget carrier Lion Air for 230 of its 737 aircraft in what would be a record transaction for the U.S. planemaker. The commitment consists of 201 of the new 737 MAX model, which features upgraded engines, and 29 extended-range 737-900s, according to a statement. President Barack Obama today attended a signing ceremony for the deal in Bali, Indonesia, which coincided with a summit of Southeast Asian leaders. "This order is a big deal," Rob Stallard, a New York- based analyst with RBC Capital Markets who has an "outperform" rating on Boeing, wrote in a note to clients. "It gives a meaningful boost to Boeing's backlog and MAX order book." Lion Air's commitments are included in the 700 agreements for the 737 MAX that Boeing Commercial Airplanes President Jim Albaugh cited this week at the Dubai air show. Boeing decided in July to upgrade the top-selling 737 rather than build an all-new successor and hasn't yet signed any firm orders for the MAX. Boeing also said yesterday that lessor Aviation Capital Group plans to buy 35 of the 737 MAX jets and 20 of the current 737-800s, while Singapore Airlines Ltd. firmed an order for eight 777s valued at $2.4 billion at list prices. Carriers typically receive discounts on large orders. Asia-Pacific Opportunities Boeing expects to complete the Lion Air deal, which will include 150 options for more planes, "fairly shortly," spokesman Wilson Chow said at the signing ceremony, without elaboration. The Chicago-based planemaker expects to begin delivering 737 MAX aircraft to customers in 2017, he said. "This is a remarkable example of the trade, investment and commercial opportunities that exist in the Asia-Pacific region," Obama said at the signing ceremony. Airbus SAS in June announced an order for 200 A320neo planes from Malaysia-based AirAsia Bhd. a day after confirming an agreement for 180 A320 and A320neo planes from Indian carrier IndiGo. The A320neo is a revamped version of the A320, which competes with Boeing's 737. Jakarta-based Lion Air flies an all-Boeing fleet consisting of 737 models in different configurations and MD-90 jets, according to its website. The airline had 126 single-aisle Boeing jets on order through October, according to the planemaker's website. Lion Air has received 52 aircraft since its first order in June 2005. Lion's Fleet Boeing's Lion Air accord marks the second record broken this week by the 95-year-old company, after Emirates ordered 50 wide-body 777s with a list value of $18 billion on Nov. 13. Options for 20 more jets would push the value of that deal to $26 billion. Once it's signed, Lion Air's order will be Boeing's biggest by value and number of planes. The largest by value before this week was Air India's agreement to buy $11 billion in various models in 2006. By number of planes, AMR Corp.'s planned order for American Airlines in July would come the closest, though the 200-jet commitment that includes current 737s and 737 MAXes hasn't been fully completed yet. Boeing fell 0.4 percent to $66.09 yesterday in New York. The stock has gained 1.3 percent this year. Production of 777 and 737 jets at Boeing's Seattle manufacturing hub is being raised to record levels to help whittle down a seven-year backlog Albaugh has said is too high. GE-Safran Engines CFM International, General Electric Co.'s venture with France's Safran SA, is the sole provider of engines for the 737, including the new Leap engine on the upgraded 737 MAX. Based on list prices, the Lion Air engine orders are valued at more than $5.3 billion. The GE90 engine, the world's most powerful, is the only choice on the 777ER model ordered by Singapore Air. That contract is worth more than $450 million based on list prices. Separately, Boeing lost six orders for the 787 Dreamliner in the past week, countering a contract signed in Dubai for six planes and bringing this year's cancellations for the new, composite-plastic model to 32. Boeing Chief Executive Officer Jim McNerney said last month that the backlog for the plane won't grow until delivery slots become available sooner. In total, the planemaker has booked 495 net orders this year after 116 cancellations, according to its weekly website tally updated yesterday. That doesn't include the commitments for the 737 MAX. Read more: http://www.sfgate.com/cgi-bin/article.cgi?f=/g/a/2011/11/17/bloomberg_articlesLUU6206K50XV.DTL#ixzz1e33sAYJN Curt Lewis, P.E., CSP CURT LEWIS & ASSOCIATES, LLC