Flight Safety Information December 7, 2012 - No. 245 In This Issue Boeing 787 suffers two bruising days of problems AMX Brazilian Air Force Accident Airlines expect 3.6 billion passengers in 2016 Jackson Hole Airport mulls how to reduce bird strikes F.C.C. Calls on F.A.A. to Allow Electronics on Planes Six PIA pilots sacked for holding fake credentials PROS IOSA Audit Experts Delta orders up to 70 Bombardier regional jets Flight schools expect demand to take off Chinese Group Said in Talks to Buy AIG's Aircraft-Leasing Unit Boeing 787 suffers two bruising days of problems Boeing's 787 Dreamliner aircraft stands on the tarmac at Manchester Airport in Manchester, northern England. (Reuters) - Airlines flying Boeing Co's new 787 Dreamliners need to take extra steps to ensure the planes don't have engine failures or fires because of a manufacturing fault in the fuel line, a U.S. regulator said Wednesday. Improperly assembled parts in Boeing's newest jet could cause the planes to run out of fuel, experience "engine power loss or shutdown, or leaks on hot engine parts that could lead to a fire," the U.S. Federal Aviation Administration said in issuing a formal rule requiring U.S. carriers to inspect the fuel systems. The fuel issue first emerged Tuesday, the same day a United Airlines 787 flight with 184 people aboard had to make an emergency landing due to an electrical problem. While the combined episodes gave Boeing a painful black eye, several analysts said the issues posed little long-term risk for the plane maker, which is speeding up production and designing several new derivative jets to better compete with Airbus. Boeing shares fell just 0.2 percent to $73.87. "There are an awful lot of new features, new technologies and new manufacturing techniques that have produced an enormous number of teething problems, but so far no show stoppers," said Richard Aboulafia, an aerospace analyst with Virginia-based Teal Group. "We're seeing headaches, not heart attacks." United said Wednesday that a failed power generator was to blame for the flight from Houston to Newark diverting to New Orleans. It landed safely and there were no injuries. Five other generators in an aft electrical equipment bay powered the plane after the failure, and there appeared to be no outward signs of trouble, United said. "The pilots received messages in the cockpit," alerting them to the fault, said Christen David, a United spokeswoman. Boeing said the issue was not related to what caused an electrical fire in the same location aboard a test plane two years ago. In that case, Boeing has said, a foreign object in an electrical panel had caused arcing that led to the fire. The fuel problem had been a behind-the-scenes issue for Boeing since Japan's All Nippon Airways found a leak on October 23 and reported it to Boeing and the FAA. Boeing had issued a notice on November 11 alerting other early 787 customers, which include Qatar Airways, Japan Airlines LAN Airlines, Ethiopian Airlines and Air India. All Nippon Airways is currently Boeing's biggest 787 operator, owning 16 of the 38 jets delivered to buyers so far. All but one of the planes delivered so far were made at Boeing's factory in Everett, Washington, rather than its plant in North Charleston, South Carolina. United, the only U.S. carrier flying 787s, said Wednesday it had completed the FAA- mandated inspections. The fuel leaks were caused by improper assembly of the couplings at the Boeing factories, the FAA said. "These conditions, if not corrected, could result in fuel leaks, which could lead to fuel exhaustion, engine power loss or shutdown, or leaks on hot engine parts that could lead to a fire," the FAA said. Boeing said that despite that there were "multiple layers of systems to ensure none of those things happen". The safety order, known as an airworthiness directive, requires operators to inspect for correctly installed lockwires on the engine fuel line couplings within seven days of its publication. Within 21 days, operators must inspect the couplings to verify they have been assembled correctly. Despite the high-profile FAA action, the agency's safety order technically only requires inspections by United. The FAA only has U.S. jurisdiction and no other U.S. airlines currently fly the jet. For future planes, inspections will be performed at the factory. Other aviation regulators were expected to adopt the FAA rule and Boeing said half of the planes already had been inspected. Aerospace enthusiasts ridiculed the problems on message boards. "$200 million doesn't get you much reliability these days," said one. Another suggested that the problems in assembly and quality inspection might come from speeding up production. Boeing is aiming to produce 5 Dreamliners a month by year-end, up from 3.5 a month, and to reach 10 a month by next year. But the episodes appeared unlikely to affect Boeing's 787 order book, said Peter Arment, an analyst with Sterne, Agee & Leach. Boeing will get to the root cause and come up with any needed solutions, he said. While such circumstances are unexpected, they should not come as a surprise given the revolutionary nature of the plane, Aboulafia, of the Teal Group said. Airlines will watch closely to ensure aircraft are ready and that corrective measures are taken, given the cost of cancelled flights. "But in terms of doubting what the aircraft can do," he said, "I don't think we're seeing that yet." Back to Top AMX Brazilian Air Force Accident Date: 06-DEC-2012 Time: 15:51 Type: AMX Operator: FAB - Brazilian Air Force Fatalities: Fatalities: 1 / Occupants: 1 Airplane damage: Written off (damaged beyond repair) Location: Machadinho - Santa Catarina - Brazil Phase: En route Nature: Military Narrative: An AMX Brazilian Air Force (FAB) fighter plane crashed after hitting a 40m transmission (high-voltage) tower of the Electric Power Plant of Machadinho, at about 09:40 a.m. on the border of Santa Catarina and Rio Grande do Sul. The plane fell into a lake at the plant, and came to rest just partially submerged. The pilot did not survive the accident. www.aviation-safety.net Back to Top Airlines expect 3.6 billion passengers in 2016 December 6. 2012 - Airlines expect to carry about 3.6 billion passengers in 2016, exceeding 2011's passenger load by more than 800 million, according to new data. The International Air Transport Association today released a report projecting 5.3% average annual growth in passenger numbers between 2012 and 2016. Almost 500 million of those new passengers will travel on domestic routes while 331 million will travel internationally. The emerging economies of Asia Pacific, Latin America and the Middle East will see the strongest passenger growth, the group predicts. Many of those passengers - about 193 million - will be traveling routes within or connected to China. The Asia-Pacific routes will account for about 380 million passengers over the forecast period. However, through 2016, the USA will continue to be the largest single market for domestic passengers with a total of 710.2 million. In that same year, there will be 223 million passengers on international routes connecting to the USA, making it the largest single market for international travel as well, the association said. "Despite the current economic uncertainty, expected demand for connectivity remains strong. That's good news for the global economy," IATA Director General and CEO Tony Tyler said in a press release. By 2016, the top five countries for international travel based on the number of passengers will be: the USA, the United Kingdom, Germany, Spain, and France. By 2016, the five largest markets for domestic passengers will be the USA, China, Brazil, India and Japan. http://www.usatoday.com/story/todayinthesky/2012/12/06/airlines-passengers- growth/1751327/ Back to Top Jackson Hole Airport mulls how to reduce bird strikes JACKSON, Wyo. (AP) - Jackson Hole Airport officials are considering creating a new sage grouse breeding ground to draw the large birds away from the runway. The Jackson Hole News and Guide reports (http://tinyurl.com/aee2ev8 ) the airport has recorded 60 bird strikes since 1994, and about half have involved sage grouse, whose dwindling populations have made them a candidate for federal protections. Wyoming Game and Fish Department biologist Joe Bohne says a sage grouse breeding ground, or lek, off the runway's north end is the source of most of the problems. The airport is trying to craft a new federally required "wildlife hazard management plan" to reduce bird strikes. Members of the Upper Snake River Basin Sage-Grouse Working Group discussed the airport's strategy Thursday. The plan is not yet concrete. ___ Information from: Jackson Hole (Wyo.) News And Guide, http://www.jhnewsandguide.com http://www.seattlepi.com/news/article/Jackson-Airport-mulls-how-to-reduce-bird- strikes-4098281.php#ixzz2EMtyuQSG Back to Top F.C.C. Calls on F.A.A. to Allow Electronics on Planes American Airlines Pilots are now permitted to use iPads during takeoff and landing, but use by passengers is still banned. Now the United States government is telling the United States government to allow devices on airplanes during takeoff and landing. Julius Genachowski, chairman of the Federal Communications Commission, sent a letter to the Federal Aviation Administration Thursday, urging the agency to allow more electronics on airplanes. Mr. Genachowski said the F.A.A. should "enable greater use of tablets, e-readers, and other portable devices" during flights. The letter was first obtained by The Hill. The letter, which was addressed to Michael Huerta, the acting administrator of the F.A.A., went on to promote the importance of allowing people to use these devices on planes as more Americans become increasingly reliant on devices for work and pleasure. "They empower people to stay informed and connected with friends and family, and they enable both large and small businesses to be more productive and efficient, helping drive economic growth and boost U.S. competitiveness," Mr. Genachowski wrote. The F.A.A. did not respond to a request for comment. Although there is no proof that devices like Amazon Kindles and Apple iPads interfere with an airplanes avionics, the F.A.A. has maintained strict rules about passengers turning off their devices during takeoff. After repeated pressure from the public and media outlets, the F.A.A. has since relented. The agency said it would initiate a review of its policies about electronic devices in all phases of flight, including takeoff and landing. But this review process has been slow. "This review comes at a time of tremendous innovation, as mobile devices are increasingly interwoven in our daily lives," Mr. Genachowski said in the letter. The last time any testing was done to review gadgets on planes was in 2006, long before iPads and most smartphones and e-readers existed. During the study, the F.A.A. found that "there was no evidence saying these devices can't interfere with a plane, and there was no evidence saying that they can." Still, they chose to enforce strict rules about gadgets on planes during takeoffs and landings. But not everyone has been forced to put their gadgets away. Earlier this year the F.A.A. approved iPads instead of paper flight manuals in the cockpit for pilots, but the agency still refuses to allow passengers to read Kindles and iPads during takeoff and landing. http://bits.blogs.nytimes.com/2012/12/06/fcc-calls-on-faa-to-allow-electronics-on- planes/ Back to Top Six PIA pilots sacked for holding fake credentials Six pilots of Pakistan International Airlines (PIA) were sacked for holding fake degrees, while five hundreds others airline staffers were also found to have bogus credentials. Captain Fahim and Captain Arshad, who have flown the airplanes of various prime ministers and presidents, are also among the sacked pilots. The academic qualification for cadet pilot in PIA is Inter. The sacked pilots had submitted their fake certificates of Matric and Inter. Captain Fahim and Captain Arshad had been discharging their duties in PIA for 18 year. The other sacked pilots included Captain Zaib, Captain Shayan, Captain Asmat and Captain Shahid Mannan. According to the airline sources, more than 500 staffers are also found to have fake credentials. The sources said that no action have been taken against them on the pressure of CBA workers union Peoples Unity. http://www.nation.com.pk/pakistan-news-newspaper-daily-english-online/national/07- Dec-2012/six-pia-pilots-sacked-for-holding-fake-credentials Back to Top Back to Top Delta orders up to 70 Bombardier regional jets MINNEAPOLIS (AP) - Delta Air Lines is ordering up to 70 regional jets from Bombardier as part of a major shift in the planes it uses for hauling passengers around the U.S. Delta announced a firm order for 40 of the CRJ900 planes on Thursday, and options for 30 more. The deal would be worth $3.29 billion at list prices if Delta exercises the options, although discounts on such a big order are common. The new planes are part of Delta's shift toward larger jets. They'll have 76 seats, making them smaller than Delta's mainline planes but larger than other regional jets. The new planes also have first-class sections, allowing Delta to sell more seats at higher prices. They'll replace 50-seat jets currently flown on Delta's behalf by regional airlines. Those 50-seaters have become unprofitable at higher fuel prices, and none of Delta's 50- seaters have first-class sections. Like other regional jets, the new planes will be flown by a regional partner on Delta's behalf. The first of the new planes begin arriving late next year. Delta is moving away from 50-seat and smaller regional jets. The airline has said it believes passengers prefer larger planes, especially on longer flights. In June, Delta pilots approved a new union contract that allows it to expand flying by large regional jets in exchange for phasing out more 50-seaters. Delta already has 101 CRJ-900s flown by Pinnacle Airlines Corp., SkyWest Inc. and SkyWest's ExpressJet unit. Those same airlines also fly the 50-seat CRJ-200s that Delta is in effect trading in to Bombardier for the new planes. Delta spokesman Anthony Black said it isn't known yet which regional airline will fly the new planes, or which ones will be losing the 50-seaters. Delta will still have 226 of those CRJ-200s, even after it sends 60 back to Bombardier. Delta also has another 154 larger regional jets that have first-class seats. Delta said this fall that it was looking for 76-seat regional jets. It's a big win for Montreal-based Bombardier, whose small-jet regional jet business has been in the doldrums as other airlines also shift away from 50-seaters. Back to Top Flight schools expect demand to take off Within the next few years, U.S. airlines are expected to see a severe pilot shortage as thousands of older captains and copilots retire and jetliner fleets swell. While local flight schools have seen only a slight uptick in student enrollments, they expect interest to surge and are gearing up their programs to meet the need. Among them: the aviation programs at Broward College and Lynn University and private flight schools such as American Flyers in Pompano Beach and Pelican Flight Training in Pembroke Pines. As part of its curriculum, Lynn's School of Aeronautics in Boca Raton teaches student pilots to use electronic iPads rather than paper maps and charts. "More airlines are starting to go with iPads as a means to save paper and reduce weight," said Jeffrey Johnson, the school's dean. Lynn's advanced flight students also are taught in a sophisticated twin-engine aircraft with a "glass" cockpit that features computer screens, much like those in airliners, he said. American Flyers, at Pompano Beach Air Park, has created an academy geared specifically for airline careers. "We tell students on the first day that this is their first day at an airline," said director Andrew Henley. "It's good preparation for them." Broward College's Aviation Institute in Pembroke Pines offers flight training on computer simulators and a "jet transition program" that familiarizes students with airline procedures, said Jan Shakespeare, the institute's associate dean of aviation operations. The school offers scholarships on a limited basis and the opportunity for graduates to return as flight instructors, a job that enables them to build flying time quickly and meet airline requirements. "There's no doubt a pilot shortage is coming," said Terry Fensome, owner of Pelican Flight Training at North Perry Airport in Pembroke Pines, adding that if an airline is unable to hire enough qualified pilots, it would have to park some of its planes. Some airlines expect see 500 pilots per month retire within the next year, because many were Vietnam-era military pilots. And airlines worldwide are projected to need 34,000 new planes to replace older, less efficient ones over the next two decades. Those planes will create a need to hire more than 531,000 pilots, with 69,000 of those in North America, according to a Boeing study. Almost all 102 students at the Aviation Institute aim to be airline pilots. Among them is Edward Weisenberger, 18, of Oakland Park, who recently soloed in a Cessna 172. http://articles.sun-sentinel.com/2012-12-06/news/fl-pilot-shortage-20121205_1_airline- pilots-pilot-shortage-student-pilots Back to Top Chinese Group Said in Talks to Buy AIG's Aircraft-Leasing Unit The bid by ICBC, New China Trust and others would value ILFC at about $5.5 billion A group led by New China Trust Co. and its chairman Weng Xianding is in talks to buy a controlling stake in American International Group Inc. (AIG)'s aircraft-leasing unit, three people with knowledge of the matter said. The group, which includes China Aviation Industry Fund and Industrial & Commercial Bank of China Ltd., is bidding for International Lease Finance Corp. together with ILFC's management, the people said, asking not to be identified because the talks are confidential. A deal may value ILFC at about $5.5 billion, one of the people said. Based on that valuation, a transaction could mark the biggest Chinese acquisition in the U.S., potentially beating China Investment Corp.'s $3 billion purchase of a stake in Blackstone Group LP (BX) in 2007, data compiled by Bloomberg show. ILFC, based in Los Angeles, is the largest aircraft lessor in China with a 30 percent market share and currently has more than 175 aircraft leased to 16 airlines in the Greater China region, according to the company. It had 918 aircraft in its leased fleet as of September, with a book value of $34.9 billion, according to the most recent quarterly report. Jon Diat, a New York-based spokesman for AIG, declined to comment. Phone calls to Xu Chunqi and Liu Liwei, listed as officials in charge of information disclosure in New China Trust's 2011 annual report, went unanswered. Officials at China Aviation Industry Fund weren't reachable. ICBC spokesman Wang Zhenning declined to comment. Past Attempt AIG, which considered selling ILFC in 2009 as it sought to repay a more than $182 billion government bailout, last year said it planned an initial public offering of the unit. The IPO may take place next year if financial markets stabilize, ILFC Chief Executive Officer Henri Courpron said in early November. Under terms of the deal being discussed, AIG would retain a minority stake in ILFC, the people said. Aircraft delivery financing will rise to $104 billion in 2013 from $95 billion this year, Kostya Zolotusky, managing director at Boeing Capital Markets, the Chicago-based planemaker's finance arm, said in an interview this week. The figure will rise to $132 billion in 2017, he said. Most lessors trade below book value, indicating aircraft assets may be overvalued, according to JPMorgan Chase & Co. AIG acquired ILFC in 1990 for $1.16 billion, data compiled by Bloomberg show. The unit has more than 200 aircraft on firm order, including Boeing Co.'s 787 Dreamliner and Airbus SAS's new A320neo. Airbus, which has an A320 assembly plant in China, won an order for 50 planes from the leasing arm of state-controlled ICBC in August. Bank of China Ltd. and Bank of Communications Co. also have aircraft leasing arms. A group led by Sumitomo Mitsui Financial Group Inc. (8316) agreed in January to buy Royal Bank of Scotland Group Plc's aviation division for about $7.3 billion in the world's biggest acquisition of a leasing business. New China Trust, 19.5 percent owned by Barclays Plc, was the country's 18th biggest trust company by assets under management in 2009, according the latest ranking on China Trustee Association's website. Net income jumped 43 percent in 2011 to 496 million yuan ($80 million), the company's website shows. http://www.bloomberg.com/news/2012-12-07/chinese-group-said-in-talks-to-buy-aig-s- aircraft-leasing-unit.html Curt Lewis