Flight Safety Information May 13, 2014 - No. 097 In This Issue Australia to Spend $84 Mln on Malaysian Jet Search Federal balloon pilot crackdown may impact Balloon Fiesta Malaysia Airlines may sell its engineering unit in a bid to return to profitability PRISM SMS Airbus' first jet marks 40 years in service Nigerian Civil Aviation Authority issues licence to new airline ERAU Unmanned Aircraft Systems Short Course, Seattle Campus Upcoming Events Australia to Spend $84 Mln on Malaysian Jet Search CANBERRA, Australia May 13, 2014 (AP) - The Australian government plans to spend 90 million Australian dollars ($84 million) on the search for the missing Malaysian plane. Australia is leading the search for missing Malaysia Airlines Flight 370, which is thought to have disappeared in the Indian Ocean with 239 people aboard on March 8. Budget documents released Tuesday showed that the government has budgeted AU$90 million for the search in the current fiscal year through June and next fiscal year. "The actual cost will depend on a number of factors, including the outcome of procurement processes for specialist services, the length of the search and the extent of contributions from other countries," the documents said. Countries involved in a multinational air and sea search based in the western city of Perth covered their own costs. But the search is moving into a second phase in which commercial underwater operators will be contracted to scour a vast expanse of sea bed with sonar equipment looking for wreckage. That phase is expected to start next month and continue for eight to 12 months. The documents put no limit on what Australia is prepared to spend. http://abcnews.go.com/International/wireStory/australia-spend-84-mln-malaysian-jet- search-23691951 Back to Top Federal balloon pilot crackdown may impact Balloon Fiesta ALBUQUERQUE (KRQE) - Tired of all the crashes into power lines, buildings and trees, the Federal Government may be getting ready to crack down on hot air ballooning and that has pilots worried about the future of their sport and the future of New Mexico's big event - the Albuquerque International Balloon Fiesta. In a recent memo released by the National Transportation Safety Board, regulators say crashes are becoming way too frequent. They're now asking for tougher regulations for the sport which some fear could let some of the air out of Balloon Fiesta. "As it was proposed, it would have potential for huge negative effect on the hot air ballooning industry across the board," said Scott Appelman, a longtime balloon pilot. Appelman has been ballooning for 31-years. He's also the president of the "Rainbow Ryders" Hot Air Balloon Company and Chairman of the Balloon Federation of America (BFA.) Appelman is among others in the BFA who are now opposing the NTSB's preliminary call for more oversight into hot air ballooning for specific reasons. The NTSB has asked the FAA for more oversight on balloon pilots which could likely mean things like more flight tests, inspections and licensing. But Appelman is worried what's being asked for is too vague. "Totally up for making the sport safer, regulating the heck out of it, i don't know if that's the answer," said Appelman. The Feds are specifically targeting pilots who fly passengers around, "They could come on in here and all of the sudden they got the exact same rules as we're flying international flights in a Boeing 777," said Appelman. Appelman says he's concerned that the Federal Government's red tape could push some casual pilots out of flying with excessive training, tests and paperwork. "I think the cost of implementing the programs, this would become over-burdensome to the recreational flyer," said Appelman. Appelman says that could also causes changes for pilots who attend the Albuquerque International Balloon, seeing excess regulation possibly bringing fewer pilots coming here to fly and fewer pilots giving balloon rides. "The Balloon Fiesta people fly sponsors, so is that all of the sudden considered a ride? Therefore yes it's absolutely going to effect the events across the country," said Appelman. While he says pilot training should be addressed, Appelman thinks the Feds could be on the verge of overreacting. "We're all about trying to find the safest means possible, but it needs to be a melding of industry and regulatory authorities," said Appelman. The NTSB wrote its letter to the FAA about a month before last week's deadly balloon crash in Richmond, VA. There's no timetable for when the FAA will decide if ballooning needs more regulations. The NTSB says almost 120 people have died in the U.S. from balloon crashes over the past 50 years. KRQE News 13's archives show at least a dozen have happened in Albuquerque during Fiesta. http://krqe.com/2014/05/12/federal-balloon-pilot-crackdown-may-impact-balloon- fiesta/ Back to Top Malaysia Airlines may sell its engineering unit in a bid to return to profitability KUALA LUMPUR, Malaysia - National carrier Malaysia Airlines (MAS) is believed to be mulling over the idea of selling MAS Engineering, as part of its plan to return to profitability. The spin-off of the non-core business division will allow the ailing carrier to pump the proceeds into its core unit, which is passenger chartering. According to an aviation industry source, the plan is much better for MAS, rather than declaring bankruptcy or calling for a privatisation exercise. "Singapore Airlines did the same by selling non-core units as part of its restructuring plan. MAS can sell its engineering division to raise money to finance its airline operations instead," the source told Business Times last week. The source said the spin-off would allow MAS to focus on its core operations while lowering its maintenance, repair and overhaul (MRO) costs. "That would eventually help reduce its overall operation cost. The sale will also bring strategic investors into the company and allow MAS to tap third-party investors, too," the source said, adding that MAS could still hold some shares in MAS Engineering. According to Cheng-Lung Wu, the author of an aviation book, the spin-off or outsourcing of non-core businesses is currently in trend as it helps the airline to become more competitive. "These non-core units do not always work efficiently within an airline structure, especially if the sole function of these units is to serve the core business," Wu wrote in his book, Airline Operations and Delay Management. He said an airline's core business, namely passenger chartering, requires many supporting units within the organisation, such as ticketing, marketing, planning and sales. Other non-core businesses such as ground-handling, catering and maintenance are likely to be outsourced in the future to other airlines or thirdparty companies. It could also be spun-off as independent companies within the group of the mother airline organisation. However, it is understood that MAS does not yet have a solid plan on the sale of its engineering division. "They (MAS) are thinking about whether to build value in the unit (MAS Engineering) first and then sell it or to just spin it off to another company. It is only an idea," the source said. Alliance Research's aviation analyst Tan Kee Hong said the spin-off of MAS' non-core businesses, such as the engineering division, is possible as the airline's management continues to implement cost-cutting initiatives with a focus on labour and maintenance expenses. "There will be a review of the network, which could reduce the frequency of unprofitable routes or see them dropped altogether," Tan said in a research report. Meanwhile, MAS Employee Union (MASEU) president Alias Aziz said the union will oppose the idea of selling MAS Engineering. He said the division has some of the world's top aircraft engineers who are currently servicing both MAS and other airlines. MASEU executive secretary Mohd Jabarullah Abdul Kadir said he is also unsure if the division's 4,000 employees would be able to keep their jobs should MAS decides to sell. Both Alias and Jabarullah are concered that MAS Engineering's fate would end up like the airline's catering service department. MAS disposed of 70 percent of its stake in MAS Catering in 2003 as part of its restructuring strategy. Source: nst.com.my http://www.eturbonews.com/45652/malaysia-airlines-may-sell-its-engineering-unit-bid- return-profi Back to Top Back to Top Airbus' first jet marks 40 years in service Airbus' first aircraft, an A300B for Air France. Photo: Airbus Airbus delivered its first aircraft 40 years ago, on May 10, 1974. The A300B was also the world's first twin-engine wide-body jet. In July 1967, France, Germany and the United Kingdom agreed to jointly develop an airliner. At the time, American companies owned more than 80 percent of the world airliner market, according to Airbus' historical narrative. The "B" in the name of the first airliner Airbus produced refers to one of the big stumbles in the early history of the program. The A300 was initially going to carry 300 passengers on short- to medium-distance flights. But Rolls-Royce didn't come through with the new engine required to power the aircraft. So Airbus went with an existing American engine, limiting capacity to 250 passengers, but cutting costs. A few months after Airbus announced the revised "A300B," the United Kingdom pulled out of the program, although Britain's Hawker Siddeley remained the supplier of the jet's wings. On Sept. 3, 1970, Air France signed a letter of intent to buy six A300s. Lufthansa followed, ordering three A300s, with four options. The A300 entered service with Air France on May 23, 1974, flying form Paris to London. In 1973, Airbus took the A300 on a six-week tour of the Americas in an effort to win international orders. But the first non-European order came from Korean Airlines, which signed up to buy four of a longer-range version, the A300B4, in September 1974. Airbus followed this up with sales to Indian Airlines, South African Airways and Air Inter. But then an 18-month sales drought resulted in unsold aircraft sitting in Toulouse and a production cut to one aircraft every two months. The A300 gained market viability in 1976, when it started being able to fly as far as 90 minutes from the nearest airport under international rules. The U.S. Federal Aviation Administration still required two-engine airplanes to remain within an hour of an airport until 1985, but gave dispensation allowing longer diversion times in the Caribbean area. Airbus' big break came in March 1978, when U.S. carrier Eastern Air Lines ordered 23 of the jets, with nine options, after leasing four A300s for six months at Airbus' behest. In July 1978, Airbus launched the A310, which would carry fewer passengers but fly further than the A300. It entered service in 1983. Airbus eventually built 878 A300s and A310s. It delivered the final A300, to FedEx, in 2007. Boeing launched its first twin-engine wide-body, the 767, in 1978. The 767 was the first twin-engine airliner certified to fly 120 minutes (and then 180 mintes) from the nearest airport. Boeing has since gone on to build the 777 and 787 Dreamliner twin-engine wide-bodies, while Airbus has added the A330 and A350 XWB. http://www.seattlepi.com/business/boeing/article/Airbus-first-jet-marks-40-years-in- service-5471828.php Back to Top Nigerian Civil Aviation Authority issues licence to new airline ABUJA, Nigeria - The Nigerian Civil Aviation Authority ( NCAA) on Monday issued the Air Operators' Certificate ( AOC) to AZMAN Air Services, the latest entrant in the domestic air transport industry. Speaking at the event, the acting director general of NCAA, Mr Benedict Adeyileka read the riot act to domestic airline operators, urging them to avoid cancellation of flights, delayed and deferred maintenance of aircraft and other infractions that constitute a threat to air safety. He said the authority will not hesitate to clamp down on defaulting airlines. Adeyileka said the NCAA issued the certificate to AZMAN Air Services after two years of scrutiny into the documents and manuals of the airline in line with the prescribed requirements. The NCAA director general said beyond the issuance of the air operators ' certificate to the airline, its owners must pursue air safety and consumer satisfaction, if it wants to remain in sustainable business. The era in which domestic airlines violate passenger rights through delayed flights and unnecessary cancellation, Adeyileka said would no longer be tolerated by the regulatory authority. He said the airline must at all times pursue the safety of its operations as a primary responsibility, warning that any airline that has a questionable safety record would be banned . He said: "Any airline that NCAA and its officials cannot fly will not be allowed to operate . Such airlines will be banned. "This is the reason all domestic airlines must ensure they have adequate spares for aircraft maintenance, avoid flight delays and unnecessary flight cancellations . The NCAA will not grant any extension for crew licence approvals and aircraft maintenance . It must be noted that NCAA inspectors do not issue air operators ' certificate." The NCAA boss cautioned against non remittance of five per cent ticket sales charge the authority is statutorily empowered to collect from airlines, affirming that prompt compliance of such payment would be tied to renewal of crew licences and renewal of certificate of airworthiness of the airline . He urged the managers of AZMAN Air Services to learn from the experiences of other operators, by being proactive in handling issues that would not amount to poor planning. Such shoddy planning, he said leads to emergency situations that the NCAA would not tolerate. He urged AZMAN Air services to comply with all safety rules and regulations, even as he said the airline should define their market share by exploring many routes that appear very dormant. He said: "Bad planning by any airline does not constitute to an emergency for the NCAA. It is for this reason that NCAA has opened lines of communication to resolve all issues that would arise including safety and consumer protection. "What is important is how this process is managed . To keep safer skies operators must continue to pursue safety as a collective responsibility ." In his remarks, the president of AZMAN AIr Services , Alhaji Adbulmunaf Yunusa said the path towards achieving the certification was tortuous. He said: "It is a day of celebration, having successfully accomplished the tedious and gruelling process of certification that the company embarked upon since 2011. "The process we have gone through is a comprehensive well designed and crafted programme that is geared towards the provision of safe reliable and efficient airline services in Nigeria. "No wonder there are not many investors who are interested in aviation , as a sector that is risky , competitive and hugely capital intensive ." He said the mission of the airline was to create opportunities for a viable and robust aviation sector that empowers players to create jobs for youths. He said the airline had trained over 74 young men and women to pursue various aspects of aviation at the college in Zaria. The company, he said hadtrained various cadre of technical crew in training facilities within and outside the country . He said: "We shall soon commission our training facility to conduct training for our staff and others under the purview of the NCAA. "But, to ensure a robust aviation sector, you need to make the environment enabling by providing incentives. "The major factors affecting and bedevilling the development of the aviation sector is the absence of a support system that would address the numerous problems faced by operators. "Among the problems is dearth of funding, inadequacy of personnel , inadequacy of training infrastructure , inadequacy of maintenance and engineering infrastructure , lack of good organisation if the industry and administrative bottlenecks . "To develop the sector, government should provide incentives through the provision of maintenance infrastructure , training of personnel , finance and others." Source: worldstagegroup.com http://www.eturbonews.com/45698/nigerian-civil-aviation-authority-issues-licence-new- airline Back to Top View this email in a web page TWO-DAY CONTINUING EDUCATION UNIT (CEU) COURSE UAS Applications, Operations and Support: Key Topics of Industry This two-day, continuing education unit (CEU) course is specifically designed for professionals and specialists seeking to expand their understanding of the application, operation and support of unmanned aircraft systems (UAS). Discussions will focus on the considerations, regulations, policies, business opportunities and challenges of the industry. This course is developed and taught by Embry-Riddle Aeronautical University-Worldwide faculty with UAS operations and research experience. Who Should Attend: ? Business Developers ? Executive Leadership ? Small Business Owner/Entrepreneur ? Engineers (including aerospace, communications, electrical, GNC, hardware, logistics, software, systems, quality assurance and test) ? UAS Operators, Pilots, Sensor Operators ? Analysts (system, data management, manufacturing, operations, procurement, research and quality) ? Managers (account, contracts, program, project and operations) ? Training Developers/Coordinators ? Administrators (government, contracts, IT and property) ? Planners (mission, facilities, schedule and strategic) ? Technicians (avionics, electronics, manufacturing and radio frequency) ? Writers (technical, grant and proposal) Key Topics: ? Introduction and Impact of UAS ? UAS Designs ? Legislation, Certification and Regulation ? Industry Concerns ? Applications ? Operational Profiles ? Business Opportunities ? Future of UAS When: Where: Course Fee: Thursday, June 5 to Friday, June 6 Embry-Riddle Worldwide Seattle Campus 1000 Oakesdale Avenue SW Suite 110 Renton, WA 98057 USD $700 Time: 8:00 a.m. to 5:00 p.m. with an hour lunch For more information: Al Astbury, Office of Professional Programs Tel: (866) 574-9125 * email: training@erau.edu CLICK HERE FOR ADDITIONAL DETAILS AND REGISTRATION Embry-Riddle Aeronautical University 600 S Clyde Morris Boulevard Daytona Beach, FL 32114 USA If you wish to be removed from this group's mailing list, click here Upcoming Events: Airport Show Dubai May 11-13, 2014 Dubai International Convention and Exhibition Centre (DICEC) www.theairportshow.com/portal/home.aspx International Humanitarian Aviation Summit 12-14MAY Toledo, Spain www.wfp.org National Safety Council Aviation Safety Committee Annual Conference Savanah, GA - May 14-15, 2014 Contact: tammy.washington@nsc.org http://cwp.marriott.com/savdt/artexmeeting/ Embry-Riddle to offer Aviation SMS Workshop Daytona Beach, FL May 20-22, 2014 www.erau.edu/case ICAO Loss of Control In-Flight Symposium 20-22 May 2014 - Montreal www.icao.int/meetings/loci Asia Pacific Aviation Safety Seminar 21-22 May 2014, Bangkok, Thailand http://bit.ly/APASS2014 SMS & Risk Management Training Tampa, FL June 4-5, 2014 http://atcvantage.com ERAU Unmanned Aircraft Systems Short Course Seattle, WA June 5-6, 2014 http://proed.erau.edu/programs/specialized-industry-training/unmanned-aircraft-systems- workshop-nv/index.html 6th Annual Aviation Human Factors & SMS Seminar June 24th & 25th 2014 Dallas, TX www.regonline.com/builder/site/Default.aspx?EventID=1384474 21st Century Pilot Reliability Certification Workshop June 30th and July 1st, 2014 Hasbrouck Heights, NJ 07605 Please contact Kacy Schwartz kacy@convergentperformance.com 719-481-0530 International System Safety Society Annual Symposium 04-08AUG2014 - St. Louis, MO http://issc2014.system-safety.org Curt Lewis