Flight Safety Information March 27, 2020 - No. 063 In This Issue Incident: Sunwing B738 near Sault Ste Marie on Mar 5th 2020, fuel imbalance Russian pilot missing after military jet crashes into Black Sea NTSB report concludes Staunton pilot was intoxicated at time of Crozet plane crash American Airlines flight attendant dies of coronavirus, elevating fears in the industry Korean Air chief defeats 'nut rage' sister's challenge American Airlines Pilots Bid for Early Outs Under Virus Deal Plane parking spaces hard to find as coronavirus grounds thousands of aircraft World's ailing airlines appeal for aid as U.S. offers $58 billion Singapore Airlines Arranges for Major Funding Injection FAA Grants NATA Requested Crewmember Relief Tougher ID Requirements For Domestic Flights Postponed To 2021 Southwest Airlines Says It's Losing 'Big Money' on Every Flight The Airlines Most in Danger of Going Under During the Crisis The USC Aviation Safety & Security Program Has Moved Online! Incident: Sunwing B738 near Sault Ste Marie on Mar 5th 2020, fuel imbalance A Sunwing Boeing 737-800, registration C-FJVE performing flight WG-374 from Sault Ste Marie,ON to London,ON (Canada) with 107 people on board, was climbing out of Sault Ste Marie when the crew received a fuel imbalance alert for the right hand tank. The crew declared PAN PAN and levelled off at FL270. While working the related checklists the crew determined the cross feed valve was open, completed the checklist, and allowed the fuel to balance again. The flight continued to destination for a safe landing about 35 minutes later. The Canadian TSB rated the occurrence a reportable incident but did not open an investigation. https://flightaware.com/live/flight/SWG374/history/20200305/1325Z/CYAM/CYXU http://avherald.com/h?article=4d502e72&opt=0 Back to Top Russian pilot missing after military jet crashes into Black Sea The Russian military has deployed ships, helicopters and drones to look for a missing fighter pilot in the Black Sea after its Su-27 fighter jet went down off the Crimean coast. The rescuers face severe weather. Russian Su-27 fighterjet A fighter jet crash near Crimea prompting a large-scale rescue effort by the Russian military, involving several drones, four helicopters, and 11 civilian and military vessels, Russian official said on Thursday. The Su-27 jet fell off the radar while flying a scheduled mission above the Black Sea on the previous evening, authorities said, without providing details on the assignment. "Preliminary data indicates the plane has fallen into the sea," Russian military officials said after the incident. Rescuers brave strong winds The pilot's fate remains unclear. The plane's last location was recorded some 50 kilometers (31 miles) from the city of Feodosia on the eastern coast of the Russian-controlled peninsula. On Wednesday evening, the authorities reported receiving a signal from an emergency radio beacon in the area, which they hoped was coming from the pilot's emergency rescue boat. On Thursday, however, the Russian Defense Ministry said that the reports of the signal "have not been confirmed." "The search for the pilot in the operating region has been made more difficult due to adverse meteorological conditions" including a severe storm with gusts of wind of up 17 meters (56 feet) per second, officials said. Breakdown after breakdown The Wednesday crash of the single-seat fighter jet is only the latest in the series of high-profile issues affecting Russia's jets and other advanced weaponry. Just hours before contact with the Su-27 was lost off Crimea, an L-39 training jet went down in the nearby Krasnodar Krai, with its sole pilot losing his life. In December last year, Russia's cutting edge Su-57 fighter jet went down during a training mission in the east of the country, with the pilot ejecting and surviving the incident. Less than two weeks before that, a deadly fire broke out on Russia's only remaining aircraft carrier, Admiral Kuznetsov, while it was docked for maintenance work in Murmansk. Also in 2019, an explosion at Russia's main nuclear weapons test facility claimed the lives of five nuclear scientists and sounded alarm bells across Europe over possible radiation, and a fire on a Russian military submarine killed 14 servicemen, almost all of whom were high-ranking and highly decorated officers. https://www.dw.com/en/russian-pilot-missing-after-military-jet-crashes-into-black-sea/a-52931725 ************ Date: 25-MAR-2020 Time: 20:10 LT Type: Sukhoi Su-27 Owner/operator: Russian Air Force Registration: C/n / msn: Fatalities: Fatalities: / Occupants: 1 Other fatalities: 0 Aircraft damage: Aircraft missing Location: Black Sea, near Belbek - Phase: En route Nature: Military Departure airport: Belbek Destination airport: Narrative: The Sukhoi Su-27 reportedly crashed into the Black Sea during a routine flight, 50 km from Théodosie. A distress signal emitted by the ELT plane was recorded in the area at 20:11 LT, a statement said. A rescue operation was immediately launched. An An-26 aircraft and a Mi-8 helicopter from the Southern Military District emergency services were deployed in the crash zone. The pilot's search is complicated by the bad weather conditions, said the Russian Defense Ministry. Update 26-mar-2020 : Russia's maritime operations services told: "The signal has been detected. A helicopter is heading to that region. It is very far from the search zone, from the initial coordinates," https://aviation-safety.net/wikibase/234386 Back to Top NTSB report concludes Staunton pilot was intoxicated at time of Crozet plane crash CROZET, Va. (WHSV) - The National Transportation Safety Board (NTSB) has issued its investigative report into a 2018 Crozet plane crash that killed a Staunton pilot. On April 15, a Cessna 525 piloted by 51-year-old Kent Carr, who was a long-time Staunton resident, crashed into several trees and then a slope near Crozet. The crash happened with rain and mist in the area and lightning detected to the northeast and south of the closest airport, Charlottesville-Albemarle Airport (CHO). However, Lockheed Martin Flight Services said in the days after the crash that Carr had made no contact with them. According to a preliminary report from the NTSB issued about two weeks after the fatal crash, Carr had not filed a flight plan when he took off from Richmond Executive - Chesterfield County Airport (FCI) around 8:35 p.m., destined for the Shenandoah Valley Regional Airport (SHD) in Weyers Cave. The NTSB's final report, issued this week, found that Carr was intoxicated at the time of the crash. According to the report, a friend of Carr told the NTSB that he had had "a couple of drinks" with dinner that night and left her home around 7:30 p.m. The friend told investigators she thought he was going to a hotel for the night, since it was getting dark, but security video from the FCI airport showed that he arrived just after 8 p.m. and walked to the Cessna 525, which he personally owned. Carr had a private pilot certificate with ratings for airplane single-engine land, multiengine land, and instrument airplane. He had a type rating for the Cessna and also held a third-class medical certificate issued in 2016. Under FAA guidelines, third-class medical certificates are designed for student, recreational and private pilots. He had logged just over 700 hours of flight experience in total and family members said the day before the crash, he had flown to Richmond to perform a flight review. But on that night, the NTSB says Carr walked around the plane for about three minutes, as seen on surveillance video, boarded the plane, closed the main cabin door, and then initiated the engine start sequence at 8:17 p.m. About two minutes later, the plane began to taxi to the departure end of a runway and then began takeoff at 8:33 p.m. The FAA prohibits any person from acting or attempting to act as a crew member on an aircraft within eight hours of having any alcoholic beverage. According to the NTSB, an airport employee said Carr did not communicate on the Unicom frequency while taking off. The weather conditions at the airport at the time were wind from 140° at 12 knots, 10 miles visibility, and broken cloud ceilings at 3,200 and 4,000 ft above ground level. But along Carr's flight route to Weyers Cave, the conditions were significantly worse. The weather observation in Charlottesville had wind from 020° at 4 knots, visibility 2 ½ miles, rain and mist, broken clouds at 700 ft agl, overcast clouds at 1,500 ft., and lightning detected to the northeast and south. There were two SIGMET advisories in effect for the Crozet area: one for a line of severe thunderstorms moving at 40 knots with hail up to an inch and wind gusts, as well as separate advisory with the same severe thunderstorm information but differently listed cloud top levels. Three Bombardier CRJ-200 airplanes that had recently passed through the area near CHO had issued urgent pilot reports about moderate turbulence in the vicinity and overcast conditions. According to Lockheed Martin Flight Services, Carr did not obtain a weather briefing or use their direct user access terminal service for his flight, however. From 8:42 p.m. to 8:47 p.m., the NTSB says Carr flew through a thunderstorm line on his way to Weyers Cave. There were no lightning strikes within 10 miles of the crash site around the accident time, however. According to air traffic control data provided by the FAA, radar showed that Carr's plane reached a maximum altitude of 11,500 ft. at 8:40 p.m., then descended and leveled off at an altitude of 4,300 ft. (below the minimum safe altitude of 5,700 ft. for SHD guidelines) at 8:44 p.m. The plane stayed at that altitude until 8:53 p.m., which is when radar shows it began a descending left turn. The last two radar returns were 5 seconds apart and showed the airplane at 3,300 ft and 2,800 msl, which indicated that the airplane was descending about 6,000 ft per minute. Radar lost contact at 8:54 p.m. A witness near the crash site told investigators he heard the "screaming of the engines" and felt the ground shake when the plane made impact shortly afterward. At the time of the crash, the witness said the cloud ceiling was "really low" and there was heavy rain in the Crozet area. The plane hit three 40-feet trees and then crashed into a slope, leaving an impact crater 4-feet deep. The plane was "highly fragmented" after the crash, according to the NTSB, with the left engine in the impact crater and the right engine about 60 feet past the impact location. The Commonwealth of Virginia Department of Health, Office of the Chief Medical Examiner, performed an autopsy on Carr. The autopsy report indicated that he died of multiple blunt force trauma injuries. A toxicology test performed at the FAA's Forensic Sciences Laboratory identified ethanol at 0.080 gm/hg, which equates to 0.080 gm/dl and cetirizine in his muscle tissue. Cetirizine is a sedating antihistamine available over the counter and by prescription that carries a warning to avoid driving a motor vehicle or operating machinery due to possible drowsiness. It also warns to avoid alcohol use because of increased drowsiness. As far as ethanol, Title 14 CFR 91.17 of FAA regulations prohibits anyone from acting as a crew member with 0.040 gm/dl or more ethanol in their system. Regulations also prohibit anyone from flying within 8 hours of drinking. Final NTSB reports, like this one, typically take years to produce. You can read the full report here. https://www.nbc29.com/2020/03/26/ntsb-report-concludes-staunton-pilot-was-intoxicated-time-crozet-plane-crash/ Back to Top American Airlines flight attendant dies of coronavirus, elevating fears in the industry Paul Frishkorn, a Philadelphia-based American Airlines flight attendant and union representative, died Monday from coronavirus, the airline confirmed Thursday. "Earlier this week, we lost a respected, longtime member of the American Airlines family, who tested positive for COVID-19," a statement from American Airlines released Thursday read. "Our hearts go out to Paul's loved ones, many of whom work for American." Lori Bassani, president of the Association of Professional Flight Attendants, which represents 27,000 flight attendants at American Airlines, said in a statement, "It is with deep sadness we report that one of our own ... has passed away from Covid-19," Frishkorn, 65, was described as a tireless advocate for the flight attendant corps who was spending time in the Philadelphia crew room "answering questions and assisting our members through this difficult time" before he fell ill. "Paul is the first of our colleagues to lose his life as a result of this deadly virus. We are deeply saddened and are reminded that no precaution is too much to take during this horrible time," the statement from Bassani said. Coronavirus precautions: Southwest, Delta, American Airlines reduce food, drink services Speaking by phone to USA TODAY, Bassani said that Frishkorn's death has increased the already deep concern for flight attendants working amid the highly contagious virus. "When this hits one of your own, it sheds a whole new light on the coronavirus," said Bassani. "This does spread more fear among our ranks. This is a killer virus, unlike any we have experienced." Frishkorn was honored as one of American's Flight Service Champions twice for his dealings with customers. Tracy Sear, a flight attendant for American Airlines, told CNN that he was a larger-than-life presence who enjoyed figure skating and loved to laugh. American Airlines announced Tuesday it is implementing new safety measures that begin Friday and last through April 3. The airlines will offer "limited" food and beverage options to further provide for social distancing and minimal contact between flight attendants and customers," Passengers can also now switch up their seating arrangements to aid with social distancing and the airlines will "block" all seats adjacent to flight attendant jump seats. For flights less than four and a half hours, no meals or snacks will be served. Beverages will be available "upon request." Longer flights will do away with snacks but serve drinks as usual and provide regular meals to passengers in the main cabin. First-class passengers will be given their meals on "one tray versus in courses." https://www.yahoo.com/news/american-airlines-flight-attendant-dies-022108582.html Back to Top Korean Air chief defeats 'nut rage' sister's challenge The "nut rage" heiress who forced a plane to turn back over her macadamias failed Friday to wrest control of the family airline from her brother, in what analysts said illustrated the power of incumbents at South Korea's chaebols. Cho Hyun-ah, 45, whose family control the Hanjin group that includes flag-carrier Korean Air, made headlines worldwide with her furious reaction over an improperly served bag of nuts in first class. The airline is now in the throes of a corporate crisis because of the coronavirus pandemic, with hundreds of flights cancelled, staff going on unpaid leave, and executives taking pay cuts. A months-long battle for control came to a head Friday at the annual meeting of Hanjin Kal, the holding company for the conglomerate, when Cho and an activist investment fund, Korea Corporate Governance Improvement (KCGI), sought to oust her younger brother Cho Won-tae from the chairmanship. Cho Won-tae, backed by other family members and Korean Air's US alliance partner Delta Air Lines, fended off the challenge, winning 56.67 percent support in a shareholder vote. Hanjin is one of the multifaceted, family-controlled conglomerates known as chaebol that dominate business in South Korea and played a key part in its rise to become the world's 12th-largest economy. But several now stand accused of murky political connections and stifling innovation and smaller firms. Many chaebol families retain only a small ownership stake in their companies, but maintain control through complex webs of cross-shareholdings between subsidiaries, and rapid promotions for family members. KCGI had called for Cho Won-tae's replacement with a professional businessman, accusing him of "repeated strategic mistakes" leading to Korean Air's accumulated losses of 1.74 trillion won ($1.4 billion) over five years. "You can't just run a company because you happen to be a grandson of its founder," the fund's head of global business Lee Seung-hoon told AFP earlier this month. But Hanjin Kal shares rocketed after the result, closing up 29.9 percent, with investors cheering the lifting of uncertainty. Cho Won-tae inherited the Hanjin Kal chairmanship after the siblings' father Cho Yang-ho -- who led the successful bid for the Pyeongchang Winter Olympics -- died last year. The Hanjin group was in financial trouble long before the coronavirus outbreak wreaked havoc on airline finances worldwide -- subsidiary Hanjin Shipping was once one of the world's top 10 container lines, but went bankrupt in 2017. Cho Won-tae's victory "underscored how difficult it is to introduce business management unrelated to chaebol families" in South Korea, Kim Dae-jong, business professor at Sejong University in Seoul, told AFP. "He has cemented a third-generation ownership over the Hanjin group," he said. "He now faces a mission to prove to shareholders past controversies surrounding his family will never be repeated again on his watch." https://www.yahoo.com/news/korean-air-chief-defeats-nut-rage-sisters-challenge-074355264--finance.html Back to Top American Airlines Pilots Bid for Early Outs Under Virus Deal • 64- and 63-year-old pilots to get priority • Paid leaves of absence, unpaid leave are options for all pilots About 600 American Airlines pilots could be selected for early retirement effective April 1, under a deal between the airline and its pilots' union in response to the novel coronavirus. Pilots who will be age 62 or older by May 1 were eligible to apply this week for "voluntary permanent leaves of absence," according to the Allied Pilots Association. American will decide who is selected, and priority generally will go to pilots who are age 64 and then to those who are age 63. The types of aircraft the pilots fly will also be a factor, the union said in a message to its members. The airline is expected to choose a minimum of 598 pilots for the early outs under a deal reached by American and the APA earlier this month. If American doesn't get enough takers among that age group, the company may award early retirements to 62-year-old pilots, the union said. Those selected for the early outs will get full benefits and about 60% of their regular pay-based on the number of hours that pilots generally fly each month-until they reach age 65, the mandatory retirement age for pilots, said Dennis Tajer, a spokesman for the union who is also a pilot at American. The agreement, which also allows pilots to opt for short-term paid leaves of absence and voluntary long-term unpaid leave, will allow American to reduce its short-term costs while also maintaining a workforce that will allow the airline to get back up to speed quickly once the COVID-19 epidemic has abated, Tajer said. The "innovative" agreement is a model for the industry, he said. Airlines are suspending flights to more and more destinations because of the epidemic. The economic ramifications could be massive. U.S. passenger and cargo carriers directly employ about 750,000 people worldwide and help drive more than 10 million U.S. jobs, according to Airlines for America, an industry association. American Airlines didn't immediately respond to requests for comments. Leaves of Absence, Unpaid Leave Pilots of all ages under the deal between American and the APA can bid for temporary leaves of absence with about two-thirds pay for periods of one, three, and six months. They also can request long-term unpaid leave with continued medical and other benefits. Bidding for paid temporary leaves of absence or long-term voluntary unpaid leave begins Thursday evening, the APA said. Bids for early outs were due early Thursday, the union said. Early-out awards will be announced Friday afternoon, and awards of paid temporary leaves of absence and long-term unpaid leave will be announced March 30, it said. The union is continuing to bargain with American over a new collective bargaining contract, part of a wave of labor negotiations involving the top four U.S. airlines. The APA wants big changes to the current labor contract, which was reached during a time when American was in bankruptcy, Tajer said in an earlier interview. Rebecca Kolins Givan, a professor at the Rutgers School of Management and Labor Relations, said the deal reached by the American pilots shows that airline unions have learned from the aftermath of the 9/11 terrorist attacks, which resulted in a sharp decrease in air travel that affected the industry's bottom line. "The airline industry went through a crisis like this after 9/11 and these unions have experience negotiating on behalf of their members during this time of extreme economic uncertainty," she said. https://news.bloomberglaw.com/daily-labor-report/american-airlines-pilots-bid-for-early-outs-under-virus-deal Back to Top Plane parking spaces hard to find as coronavirus grounds thousands of aircraft It's a bit like the mystery of where butterflies go in the rain - where do the worlds planes go when they're not flying? It's one of the many unprecedented problems the COVID-19 pandemic has thrown up for the aviation industry. Airlines have spent decades mastering the art of maximising the amount of time an aircraft is in the air and shortening the turnaround time between flights as much as possible, because an aircraft on the ground doesn't make any money. But with coronavirus effectively pressing pause on the travel industry, airlines around the world have been forced to ground most of their aircraft and in some cases their entire fleet. To put this into perspective, Singapore Airlines usually operates a fleet of nearly 140 aircraft and is now using just nine. American Airlines has to park 450 of its aircraft, Delta around 600 and Lufthansa 700. It's a bit like Christmas Eve in the supermarket car park, except you're attempting to find space for something that weighs around 250 tonnes. And, if you accidentally scratch something or make a small dent, it's going to cost you a few million dollars to fix. At least. To make matters worse, space was already in short supply. The grounding of every Boeing 737 MAX 8 in the world after two notorious commercial airliner disasters meant hundreds of aircraft were already grounded. The infamous town of Roswell is offering airlines parking space at its airport. It says there is space for around 300 aircraft and the airport told local media they would charge airlines just US$14 a day per aircraft. It's hard to get a carpark in Auckland for that price. It's not known at this stage where Air New Zealand will park some of its grounded fleet, but it has the options of a handful of air force bases around the country. Airports such as Atlanta Hartsfield Jackson in the United States is the busiest airport in the world by passenger number. It usually operates five runways with aircraft leaving just seconds apart, all day. Now, it has turned three of its runways into parking space. The parking wardens of the aviation world, the airports which own the land, appear to be keeping their ticket machines in their pockets. The New Zealand Government is also stepping in during this time, paying all passenger-based Government charges and covering Airways related fees for the next six. Just like the supermarket carpark at Christmas, let's hope the chaos only lasts a short while and things return to normal soon. https://www.newshub.co.nz/home/travel/2020/03/plane-parking-spaces-hard-to-find-as-coronavirus-grounds-thousands-of-aircraft.html Back to Top World's ailing airlines appeal for aid as U.S. offers $58 billion DUBAI/SINGAPORE (Reuters) - Global airlines urged the world's major economies to act quickly to prevent irreversible damage to an industry that has seen demand decimated almost overnight by the coronavirus crisis. Several states have already stepped in to help airlines hammered by the travel slump, with the United States offering $58 billion in aid, Singapore announcing support for aviation and Australia easing competition rules. As leaders from the Group of 20 nations met for a video summit, the International Air Transport Association (IATA) asked governments to provide or facilitate financial support for the major carriers it represents. "The spread of the COVID-19 pandemic around the globe and the resulting government-mandated border closings and travel restrictions have led to the destruction of air travel demand," IATA Chief Executive Alexandre de Juniac said in an open letter. Underlining the industry's plight, AirAsia, the region's biggest budget carrier, became the latest to announce sweeping schedule cuts and said some of its businesses would halt flights altogether for a period. Singapore Airlines said it would tap existing investors for up to S$15 billion ($10.5 billion) through the sale of shares and convertible bonds to offset the shock to its business from the coronavirus outbreak. It also arranged a S$4 billion bridge loan. "Many airlines have been paying out more in refunds than they have received in new booking revenues," de Juniac, a former head of Air France-KLM, said. "The average two-month cash reserves held by airlines are rapidly being exhausted," de Juniac added, calling for direct financial support, loans or tax relief. LOADING CARGO In a desperate bid to preserve some revenues and keep global supply chains operating, U.S. Delta Air Lines, Air New Zealand and Abu Dhabi's Etihad Airways joined a list of carriers that have offered to charter passenger planes as freight transporters, using their spacious cargo holds. About half of the world's air cargo normally travels in the bellies of passenger planes, so the cancellation of passenger flights has led to a sharp reduction in capacity, with knock-on effects on food, industry and other trade. U.S. airlines, like others around the globe, have been reeling from the slide in passenger numbers and on Wednesday the U.S. Senate passed a $58 billion rescue package, half in the form of grants to cover some 750,000 airline staff wages. Those receiving funds cannot lay off employees before Sept. 30 or change collective bargaining pacts. The bill has restrictions on stock buybacks, dividends and executive pay, and allows the government to take equity, warrants or other compensation as part of the package. The U.S. House of Representatives is expected to back the move on Friday. President Donald Trump has promised to sign it. A HEAVY PRICE IATA, which estimates the pandemic will cost the global industry $252 billion in lost revenues this year, said earlier it had written to 18 countries in the Asia-Pacific region, including India, Japan and South Korea for emergency support. Australia and New Zealand have joined other governments in announcing some financial relief. But this has not stopped carriers from putting staff on leave and grounding planes. Virgin Australia plans to permanently cut more than 1,000 jobs among the 8,000 staff that have already been stood down. Australia's Flight Centre Travel Group said it would cut 6,000 travel agent roles globally. In a move unthinkable under normal conditions, Australia's competition regulator said it would allow Virgin, Qantas Airways and Regional Express to temporarily coordinate schedules and share revenue on 10 regional routes. https://finance.yahoo.com/news/airlines-turn-cargo-revenue-u-001031767.html Back to Top Singapore Airlines Arranges for Major Funding Injection This story is part of AIN's continuing coverage of the impact of the coronavirus on aviation. Singapore Airlines (SIA) expects to raise as much as S$15 billion ($10.36 billion) through the sale of S$5.3 billion in new shares and up to a further S$9.7 billion through 10-year mandatory convertible bonds (MCBs), the company announced Thursday. SIA has also arranged a S$4 billion bridge loan facility with DBS Bank to support its near-term liquidity requirements as cash drain accelerates amid the Covid-19 crisis. The company said it intends to use the proceeds from the rights issues to fund capital and operational expenditure requirements. While both issuances stand subject to shareholder approval at an extraordinary general meeting (EGM), SIA said its largest shareholder-Temasek Holdings-will underwrite the funding. "This is an exceptional time for the SIA Group," said SIA chairman Peter Seah. "Since the onset of the Covid-19 outbreak, passenger demand has fallen precipitously amid an unprecedented closure of borders worldwide. We moved quickly to cut capacity and implement cost-cutting measures. We have also worked closely with the Singapore government to bring Singaporeans home safely during this time. At the same time, we are also working with various parties to enable our staff on no-pay leave to have other income opportunities." The aviation sector serves as a key pillar of Singapore's economy, supporting 12 percent of the country's gross domestic product and 375,000 jobs. SIA Group-which includes SIA, SilkAir, and Scoot-account for more than half of the passengers flying into and out of Singapore Changi Airport. On Monday, Singapore Airlines said it will cut 96 percent of its system capacity originally scheduled through the end of April and ground most of its fleet as tightening border controls brought international air travel to a near standstill. The moves will see 138 Singapore Airlines and SilkAir aircraft grounded out of a total fleet of 147, while 47 of 49 aircraft sit idle at low-fare subsidiary Scoot. Measures to build liquidity and reduce spending and operating costs at SIA include ongoing discussions with aircraft manufacturers to defer upcoming aircraft deliveries. Other moves have involved executive salary cuts and voluntary unpaid leave for certain management positions while SIA remains engaged with unions on more cost-cutting measures, steps toward which the company said it would take "imminently." https://www.ainonline.com/aviation-news/air-transport/2020-03-26/singapore-airlines-arranges-major-funding-injection Back to Top FAA Grants NATA Requested Crewmember Relief Yesterday, the FAA issued exemptions in response to the National Air Transportation Association's (NATA) requests for relief from certain crew training and checking requirements for Part 135 operators. The two exemptions granted to NATA are available to all Part 119 certificated carriers operating under Part 135. Two additional exemptions granted to A4A provide similar relief for those conducting training under Part 121. All operators seeking to use the available relief are required to provide a Letter of Intent to the FAA in the manner and form described in the exemption, obtain Operations Specification A005 from their FAA inspector, and follow other conditions and limitations outlined within the exemption. Every Part 135 operator should obtain and carefully review these exemptions. Exemption No. 18509 Regulations addressed: §§ 135.293(b), 135.295(e) and (g), 135.297(c)(1)(i) and (ii), 135.331(c)(3), (5), and (7), 135.347(a), and 135.351(b)(2) and (c)Provides alternative methods to conduct certain required crewmember emergency procedures during recurrent and upgrade training, testing, and checking. Exemption No. 18510 Regulations addressed: §§ 135.245(c), 135.247(a), 135.301(a), 135.323(b), 135.337(g), 135.338(g), 135.339(b), 135.340(b), and 135.505(d) Provides additional time for completion of recurrent training and qualification activities for ground personnel and crewmembers of up to three calendar months after the month that the activity was due to have been completed. Exemption No. 18511 and Exemption No. 18512 provide similar relief for those Part 135 operators required or opting to comply with Part 121 training regulations. "NATA staff has been meeting with FAA and other government officials daily during this crisis to obtain the latest information for members and provide input on industry needs. The Association is grateful the FAA is acting quickly to ensure necessary access to air transportation remains available," stated NATA President and CEO Timothy Obitts. "These exemptions address several currency matters of operators. I am confident additional action granting relief for certain expiring pilot medicals is forthcoming. In this time of great need, NATA and our members value the FAA's willingness to collaborate on effective solutions," stated NATA Vice President John McGraw. https://www.aviationpros.com/airports/press-release/21131531/federal-aviation-administration-faa-faa-grants-nata-requested-crewmember-relief Back to Top Tougher ID Requirements For Domestic Flights Postponed To 2021 Starting in October 2021, passengers on domestic flights will probably need a REAL ID-complaint identification document to board a domestic flight. If you don't already have a REAL ID-compliant drivers license or ID, you have an additional year to get one before you probably need it to board a domestic flight. The Dept. of Homeland Security has pushed back the enforcement deadline from Oct. 1, 2020 to Oct. 1, 2021 in light of the coronavirus pandemic. This is "essentially an enhanced drivers license," as NPR's Brian Naylor has reported, compliant with legislation passed by Congress back in 2005 to unify security standards for the IDs across states. "The federal, state and local response to the spread of the Coronavirus here in the United States necessitates a delay in this deadline," Acting Homeland Security Secretary Chad Wolf said in a statement Thursday. "States across the country are temporarily closing or restricting access to DMVs," Wolf added. "This action will preclude millions of people from applying for and receiving their REAL ID." You can tell if your ID is REAL ID-compliant by checking if it has a star on the top, a star inside a circle, or a bear with a star, according to DHS. Several states such as Washington, Michigan, Minnesota, New York and Vermont issue Enhanced Drivers Licenses (EDL), which will also be accepted, even though they don't carry a star marking. Almost every state is currently issuing drivers licenses that meet these standards. DHS had said that all states are "on track to begin issuing compliant licenses and IDs by the October 1, 2020 deadline," though it's not clear if that has changed in light of the pandemic. These IDs will also be needed to enter most federal buildings and military bases. Even after the new enforcement deadline passes, there are a few other types of documents that will be accepted instead, such as a passport or U.S. military ID. And as Naylor reported, "REAL ID has been fought by many states that objected to the new law, saying it's a form of national ID or too expensive to implement." https://www.npr.org/sections/coronavirus-live-updates/2020/03/26/822031112/tougher-id-requirements-for-domestic-flights-postponed-to-2021 Back to Top Southwest Airlines Says It's Losing 'Big Money' on Every Flight (Bloomberg) -- Southwest Airlines Co. is losing "big money" on every flight, raising the risk of worker furloughs in the longer-term despite billions of dollars in immediate aid from the U.S. government. The biggest U.S. discounter is "appreciative" of the package of loans and cash assistance approved by the Senate and awaiting a vote in the House of Representatives, Chief Executive Officer Gary Kelly said Thursday. If approved and signed by President Donald Trump, the program would provide an option to secure cash "that's at least accessible, and quickly and simply," he said. Airlines have been battered as the spread of coronavirus and related government-imposed travel restrictions have caused demand for flights to collapse. The number of passengers flown by U.S. carriers has tumbled from about 2.5 million a day before the virus outbreak to just 239,000 screened by security officials Wednesday, according to Airlines for America, a trade group. "The load factors are at levels we've never seen," Kelly said in a video message to employees, referring to the proportion of seats filled on planes. "I can assure you we are losing money on every single flight, and big money. So that can't be sustained indefinitely." Kelly said he's a "firm believer" that in economic catastrophes the federal government must "flood the country with liquidity or cash to give people the means to get through this" and avoid bankruptcies across industries. Airlines are among those hardest hit by the crisis, he said. Passenger airlines are eligible for as much as $25 billion in payroll support under the pending U.S. rescue program, with another $25 billion in loans. The funds "come at a cost," Kelly said. The government could require equity or other securities in return for cash to keep workers on the job. Other restrictions would apply, including restraints on executive pay. 'Can't Promise' Southwest, which has never laid off workers or cut pay, doesn't have plans for furloughs, but "I can't promise that won't happen," Kelly said. "We have opportunities to raise capital in the private markets, and now we also have that opportunity with the federal government," Kelly said, "We are going to work hard to make a commitment not to furlough people anyway, but the government grant program could prove to be something that gives us a lot more confidence that we can follow through with that." Southwest earlier said it would shave capacity at least 20%, freeze hiring and offer leave to workers to reduce operating costs. The Dallas-based carrier secured a $1 billion term loan and drew down the full amount of an existing $1 billion unsecured revolving credit facility earlier this month. https://www.yahoo.com/finance/news/southwest-airlines-says-losing-big-035440929.html Back to Top The Airlines Most in Danger of Going Under During the Crisis (Bloomberg) -- The global airline industry has never had it so bad. Not even after the 9/11 terrorist attacks. Airlines could lose a quarter of a trillion dollars in revenue this year, according to the International Air Transport Association, as travel comes to a standstill with countries locked down to fight the coronavirus. Most carriers will go bankrupt by the end of May if they can't find support, Sydney-based CAPA Centre for Aviation said last week. "In this very difficult period, it will only be the survival of the fittest" - Qatar Airways CEO Akbar Al Baker Which airlines are most at risk? Like the virus, the crisis is indiscriminate, affecting everyone from budget operators to national flag carriers. Aircraft manufacturers and their suppliers also are under immense pressure, with Boeing Co. calling for billions of dollars in state support and Airbus SE extending credit lines and canceling its dividend. Using the Z-score method developed by Edward Altman in the 1960s to predict bankruptcies, Bloomberg News filtered out listed commercial airlines to identify the ones most at risk of going bust, based on available data. The calculations don't take into account government bailouts or other funding sources that could help keep operators alive. While the list is concentrated in Asia, mostly due to high debt levels, European carriers aren't immune, as the collapse of U.K. regional airline Flybe Group Plc proved. According to Altman, scores of 1.8 or below indicate a risk of bankruptcy and scores over 3 suggest sound footing. Indebted low-cost carrier Norwegian Air Shuttle ASA and Air France-KLM both landed below the threshold, as did American Airlines Group Inc. and SkyWest Inc. Governments around the world are in talks with aviation companies about financial support, and those with deep-pocketed backers -- such as Delta Air Lines Inc. with billionaire investor Warren Buffett -- will have access to other avenues for cash. Qatar Airways Chief Executive Officer Akbar Al Baker warned that many airlines will go bust, limiting the scope for takeovers. "People that were bragging about not taking state aid and being independent are now themselves all over the world asking for state aid," he said Thursday on Bloomberg Television. The Z-score involves five variables measuring liquidity, solvency, profitability, leverage and recent performance. The model initially had accuracy rates of over 95% in predicting bankruptcies, but has come down to between 80% and 90% based on a year before insolvency, Altman said in a 2018 interview. A spokesman for Pakistan International Airlines Corp. said losses and debt have become too much for the company to handle alone and that options suggested to the government include a debt-to-equity swap and long-term bond issue. A representative for AirAsia Group Bhd declined to comment, while PNG Air Ltd. didn't respond to a request for comments. The communications director for Kenya Airways Plc, which is now operating only a handful of local flights, couldn't immediately comment. SpiceJet Ltd. sees "no possibility at all" of failing, has maintained adequate cash flows and expects a surge in demand as the virus is contained, a spokesman said. Virgin Australia Holdings Ltd., which has furloughed 80% of its workforce and slashed flights to a bare minimum, said it is taking measures to rapidly reduce its cost base to preserve cash. Asiana Airlines Inc. said it secured a bridge loan and will receive 1.6 trillion won ($1.3 billion) from Korea Development Bank and other creditors. It also said financials will improve once HDC Hyundai Development Co. and its partners complete their acquisition of Kumho Industrial Co.'s stake. Also, the Korean government will meet Friday to discuss the airline industry and measures to provide emergency funds to large companies, Yonhap News reported Thursday. Avianca Holdings SA didn't respond to requests for comment. The Bogota-based company has offered its 21,000 employees unpaid leave and is negotiating payment terms with suppliers. Norwegian Air is trying to secure a government lifeline worth up to $270 million under certain conditions, and this week two Nordic banks were approved to provide a guarantee for the required 10% for the first tranche. The airline declined to comment further. A spokeswoman for Air France-KLM declined to comment. The airline counts the French and Dutch governments as its biggest shareholders, and both governments have signaled they will provide support if needed. American and SkyWest declined to comment. U.S. passenger carriers are poised to receive up to $25 billion in payroll support funds and cargo haulers $4 billion -- earmarked for items like salaries, benefits and healthcare -- with a like amount of loans. Much hinges on an airline's ability to use cash in hand or access more money. Some in Asia, including Korean Air, Asiana, China Southern Airlines Co. and China Eastern Airlines Corp. have reserves to last only weeks, according to Bloomberg Intelligence. IndiGo, operated by InterGlobe Aviation Ltd., has enough to last about a year even if its fleet remains grounded (and staff costs drop only 30%), BI analysts including James Teo wrote in a note Wednesday. Different methods of estimating airline viability give out varying results, and not all airlines that are short of cash are going to go bust. The model used by BI uses publicly available data on cash in hand and operating expenses to reach estimates on monthly cash burn. That method doesn't take into account undrawn credit facilities or unencumbered aircraft assets, which are often used as a cash buffer, said Teo. The model assumes 100% capacity cuts and zero cash inflow. Singapore Airlines Ltd. unveiled a plan to initially raise about S$8.8 billion ($6.2 billion) to contend with the impact of the virus, with state investor Temasek Holdings Pte., the carrier's biggest shareholder, saying it would back the resolutions. The carrier's shares fell as much as 10% Friday following the announcement, before paring the loss to 3.2% at 11:50 a.m. local time. Air China Ltd. declined to comment and China Southern didn't respond to an email for comments. China Eastern said it maintains sufficient liquidity funds, which can fully guarantee normal production and operation. Qantas Airways Ltd., Cathay Pacific Airways Ltd. and IndiGo declined to comment. A Korean Air spokeswoman said the company is about to raise funds through asset-backed securities, reflecting market confidence in the carrier. "We also expect the government to provide support measures," she said, adding that the airline plans to generate more revenue by increasing cargo operations. Japan Airlines Co. issued bonds earlier than originally planned based on the trend in interest rates, according to a spokesman, who said details on the company's financials will be revealed in its next earnings. All Nippon Airways Co. declined to comment, saying the health and safety of its passengers and employees was its priority. Airlines could sell assets including planes to raise cash. Without taking that step, assuming revenue from ticket bookings is kept, some may still last more than a year, according to analysts at Credit Suisse Group AG. While the liquidity situation is fluid and doesn't take into account potential bailouts, this list gives a sense of which airlines are best-positioned if travel is suspended for longer. Ryanair Holdings Plc said it had cash and equivalents of over 4 billion euros as of March 12, undrawn credit lines and nearly 300 owned aircraft valued at about $8 billion to $10 billion. It declined further comment. EasyJet Plc declined to comment. Panama's Copa Holdings SA grounded its fleet as of Monday. It said earlier in the month that the impact on its finances depended on the extent of the pandemic and related travel hit. A spokesman declined to comment further. https://www.yahoo.com/finance/news/airlines-most-danger-going-under-035548868.html Back to Top The USC Aviation Safety & Security Program Has Moved Online! The following upcoming courses will take place in our virtual WebEx classrooms. Human Factors in Aviation Maintenance Knowledge and understanding of human factors in the realm of aviation safety with a focus on the role of the maintainer. March 30 - April 3, 2020 4.5 Days Tuition: $2575 Incident Investigation/Analysis For managers and supervisors who may be required to investigate, implement, or review safety findings and recommendations resulting from aviation incidents. April 6-10, 2020 4.5 Days Tuition: $2575 More classes will move online soon. If you want to take a specific class online, or have any questions, please contact us. Earn Credit for FlightSafety Master Technician-Management Program Students taking the following USC courses will earn elective credits towards FlightSafety International's Master Technician-Management Program • Human Factors in Aviation Safety • Gas Turbine Accident Investigation • Helicopter Accident Investigation • Safety Management for Aviation Maintenance • Safety Management for Ground Operations Safety • Accident/Incident Response Preparedness Earn Credit for FlightSafety Master Technician-Management Program Students taking the following USC courses will earn two points toward completing the application for the National Business Aviation Certified Aviation Manager Exam. • Aviation Safety Management Systems • Accident/Incident Response Preparedness • Human Factors in Aviation Safety • Aircraft Accident Investigation • SeMS Aviation Security Management Systems For further details, please visit our website or use the contact information below. Email: aviation@usc.edu Telephone: +1 (310) 342-1345 Photo Credit: Glen Grossman Curt Lewis