Industry News

May 21, 2008

DOT OFFERS CONTROVERSIAL LGA PROPOSAL
U.S. Department of Transportation officials in March unveiled a proposal to reduce delays at New York’s heavily congested LaGuardia Airport by cutting flights and auctioning off the right for new competitors to fly there. LaGuardia becomes the third major airport serving New York City to have flights reduced in recent months as DOT looks to find a solution for gridlock that plagued the region last summer. The plan calls for reducing the number of landings and takeoffs at LaGuardia from 75 per hour to 74.
Perhaps the most controversial component of the proposal is that major airlines currently serving LaGuardia would lose up to 20 percent of their existing flights at LGA. The flights would be auctioned to the highest bidder, beginning as early as the end of the year, according to D.J. Gribbin, general counsel for DOT. The plan is to increase competition to ultimately bring airlines to attempt to keep costs down by flying larger planes into LGA, Gribbin says. Larger planes would allow more passengers to fly into LGA without adding delays.
The Air Transport Association calls the proposal “ridiculous” and says the government doesn’t have authority to impose the changes. The Port Authority of New York & New Jersey, which operates LaGuardia, also opposes the move. Says the authority, “Instead of modernizing a 1950s-era air traffic control system to meet passenger demand for more flights, the DOT and FAA are choosing to charge passengers more money via an auction without reducing delays and delivering relief. The right solutions are increasing capacity, rationalizing airline schedules, and improving customer service.”

DETROIT METRO EXPLORES SELLING NAMING RIGHTS
Detroit Metropolitan Wayne County Airport enters a management services agreement with the General Sports Companies, in partnership with McConnell Communications to plan, design, promote, sell, negotiate, and administer naming rights and sponsorship contracts on behalf of the Wayne County Airport Authority (WCAA). As part of the agreement, the partners will develop a comprehensive sponsorship and marketing opportunity program for DTW that will feature naming rights sales and management for the airport’s new state-of-the-art, 26-gate North Terminal complex, scheduled to open later this year.

Briefings ...

AIR CANADA — launches new nonstop service between Richmond (VA) and Toronto.

airmall® — at Boston Logan Int’l Airport opens a Sunglass Hut and a Johnston & Murphy outlet in Terminal B, the latter offering high-quality apparel and crafted leather goods for men.

aci-na — Airports Council Int’l–North America commends the U.S. DOT for its announcement to amend the Part 250 compensation available to passengers who are involuntarily denied boarding, and for expanding measures to passengers flying on smaller aircraft.
• ACI-NA commends DOT’s recent proposal to amend the 1996 Policy Regarding Airport Rates and Charges to recognize airport proprietors’ role in managing congestion at their airports. For this same reason, however, ACI-NA does not support, in its current form, the Supplemental Notice of Proposed Rulemaking (SNPRM), to create slot auctions at LaGuardia airport.

asig® — of Orlando announces that American Airlines renews its agreement for aircraft fueling services at ten of its U.S. locations.

boston museum of science/aurora flight services — announces details of its new solar-powered airplane called Odysseus. Aurora and partners BAE Systems, Draper Laboratory, and Sierra Nevada were recently awarded a contract from the Defense Advanced Research Projects Agency for development of a new unmanned aircraft that can stay aloft for up to five years; www.aurora.aero.

chantilly air — of Manassas, VA opens a 36,000-sq. ft. hangar complex as it expands its FAA Part 145 maintenance capabilities, now servicing most major turbine OEMs, including Bombardier, Cessna, Gulfstream, and Hawker Beechcraft. The company also has repair agreements for Pratt and Whitney’s PT6, JT15D, and PW305 series engines.

city of cleveland — is one step closer to creating a separate police force at Cleveland Hopkins Int’l Airport via legislation passed by the city’s Aviation and Transportation Committee. If approved, 45 officers now working at the airport go back on the streets and a new, separate force will provide security.

city of dallas — considers a new $571 million passenger terminal at Dallas Love Field, one of three options, all of which run from $150 million to $400 million more than originally estimated. The 2006 reform of the Wright Amendment calls for the city and Southwest Airlines to invest a minimum of $150 million and a maximum of $200 million to modernize Love Field, a cap that can be exceeded if both parties agree.

city of folsom (ca) — and Sacramento County reach a settlement agreement in a lawsuit filed by Folsom last year over the expansion of cargo operations at Mather Airport. Under the agreement, the county and city will jointly hire a consultant to develop noise abatement procedures and examine alternative flight paths into Mather.

city of los angeles — questions whether the LAX airport director Gina Marie Lindsey improperly influenced the hiring of an engineering firm, DMJM Aviation, Inc. of Tampa, to manage a $5-8 billion capital improvement program.
dt research — and Jaco Electronics announce a partnership with Image Base International to install digital signage and interactive kiosks at the Portland (OR) Int’l Airport.

ECLIPSE AVIATION — of Albu-querque receives certification to register and operate the Eclipse 500 very light jet in India and Australia.

faa — Federal Aviation Adminis-tration takes legal action to overturn a ban on the fastest jets that fly out of Santa Monica (CA) Airport, serving the city of Santa Monica with a cease-and-desist order challenging a municipal ordinance that bars jets with approach speeds of greater than 136 mph. The Category C and D jets include Gulfstream IV, Challenger, and Citation X aircraft, which account for some 9,000 operations annually, or about 7 percent of flight operations.

fitch ratings — foresees minimal immediate effects on the operations of U.S. airports stemming from the planned merger of Delta and Northwest Airlines. Close of the transaction is expected in 2009. While Fitch says the merger itself may not have an immediate effect on the nation’s airports, the changing economics of the airline industry overall may begin to influence airport financial operations as 2008 progresses.

ft. smith (ar) airport — reports that former airport manager Robert Johnson will receive almost three-quarters of a million dollars in an agreement with city directors and airport commissioners to settle two lawsuits that grew out of his 2003 firing. Johnson will receive $725,000; of that, $262,000 will be from a deferred compensation plan to which Johnson was the sole contributor. Two insurance carriers for the Airport Commission will pay $348,000, the commission will pay $75,000, and the city will pay $40,000.

frasca int’l, inc. — of Urbana, IL awards a contract for a DA-42 Flight Training Device (FTD) by Quindao Jiutian International Flight Academy (QJIFA), China. The FTD will also feature Frasca’s TruVisionTM 170 X 40 FOV Visual System and Garmin G1000 avionics.

fta — Federal Transit Adminis-tration (FTA) announces it intends to move along the Dulles/Washington Metro rail project and will commit $158.7 million to use toward completion of a financial plan, construction plans, detailed engineering specifications and cost estimates, and other technical requirements.

glendale-burbank-pasadena airport authority — after eight years and spending some $6 million on a Part 161 study, proposes to ban all overnight flights at Bob Hope Airport. The proposal would send some 16 private flights each night to Van Nuys, the world’s largest general aviation airport.

hai — Helicopter Association Int’l based in Alexandria, VA modifies its bylaws in an effort to broaden its pilot and maintenance technician membership; www.rotor.com.

HAWAIIAN AIRLINES — inaugurates daily nonstop service between Oakland Int’l Airport and Honolulu May 1.

hondajet east — a sales and service representative for Honda Aircraft Company, Inc., announces that the Albany (NY) Int’l Airport will be home for the HondaJet Sales and Service facility servicing the Northeastern U.S. It is one of five dealership locations in the U.S.
• HondaJet also reports that all major assembly and testing of the prototype HondaJet have been conducted at the company’s existing Greensboro, NC facility, which opened in 2001. Honda Aircraft Co. anticipates its first test flight of a conforming model in early 2009, with the overall timetable targeting type certification in 2010.

honolulu int’l airport — is developing some $20 million in restaurant improvements. First to begin serving meals was Dewar’s Clubhouse Bar & Grille, opened at the Central Concourse by concessionaire HMSHost Corp. The airport is also adding a parking garage in December among other upgrades.

houston airport system — unveils plans for a $1.2 billion renovation project at George Bush Intercontinental Airport’s (IAH) Terminal B.
• IAH also hosts the inaugural flight of Singapore Airlines, becoming the first to connect Houston to Moscow, Russia, and Singapore.

jet aviation — based in Zurich, Switzerland and Beijing-based Deer Air, a subsidiary of HNA Group, enter a joint venture agreement under which the two companies will operate a fixed base operation and line maintenance facility at Beijing’s Capital Int’l Airport. Services are expected to be ready for the Olympic Games in Beijing, Aug. 8-24.

jet professionals — based at Teterboro, NJ adds technical recruitment from its recently established Dallas office.

jettech — which specializes in developing avionics and RVSM aftermarket solutions, teams with Sandel Avionics to develop a ‘glass cockpit’ for all Cheyenne turboprop and pre-275 serial numbered Citation 500 aircraft; www.sandel.com.

kansas city int’l airport — is told by a Platte County judge that graves of homestead pioneers scattered across airport property must stay in place, thereby stopping a city-backed plan to relocate numerous 1800s-era cemeteries to make way for economic development. In March, city officials testified that relocating the graves would help generate additional development on the 7,000 acres of vacant property.

lambert-st. louis int’l airport — teams with the American Heart Association to establish two one-mile walking paths in the airport for passengers looking for exercise while waiting for flights.

majestic jet, inc. — a jet charter and aircraft management company based in Ft. Lauderdale, receives its Part 135 air carrier certificate from FAA and launches its charter operations with a fleet of Gulfstream Astra G100 and Bombardier Learjet 55 aircraft, with plans set for additional Learjet aircraft.

mayo aviation — of Englewood, CO adds Beech King Air 90 and 200 series aircraft to its Part 145 Repair Station Certificate. Mayo operates and maintains a fleet of Beech King Air 90, 200, and 300 series aircraft in addition to Lear 31, 35, 55, Cessna Citation 560 and Challenger 300 and 600 series.

million air-salt lake city — adds a Gulfstream G200 aircraft to its FAR Part 135 operating certificate; it is the third Gulfstream that Million Air/SLC has been retained to manage and operate in 2008.

national treasury emp-loyees union — of Washington, D.C. files a Freedom of Information Act suit seeking a range of documents from the Transportation Security Administration as part of a union effort to determine whether proficiency tests administered to the screener workforce are fair, valid, and free from discrimination. The tests play a role in the annual certification process for front-line security screeners to retain their jobs.

neubert aero corp. — based in Tampa is awarded a contract for installation of i-AIR®, its advanced GIS/GPS Data Collection Solution for Part 139 airports, by the St. Augustine/St. John’s County (FL) Airport Authority.

ntsb — National Transpor-tation Safety Board says preliminary aviation accident statistics for
2007 show there were 24 non-fatal accidents involving Part 121
airlines. No fatalities occurred among Part 135 commuter operators
(fewer than ten seats); on-demand Part 135 operations reported 43 fatalities, up from 16 in 2006. While the number of general aviation accidents rose
from 1,518 in 2006 to 1,631, fatalities were down from 703 to 491, a 30 percent
drop and the lowest annual total in over 40 years.

phoenix sky harbor int’l airport — seeks city council permission to hike some parking rates by as much as 75 percent over time. The airport seeks the increase to help pay for its $3.3 billion airport development plan, which includes building a $1.1 billion automated train.

purvis systems inc. — a Middletown, RI-based IT systems and service provider for public safety, emergency management, and defense industries, reports its Emergency Notification System (PURVIS ENS) has been selected for implementation by the Rhode Island Airport Corporation Police at T.F. Green Int’l Airport; www.purvis.com.

rockwell collins — and ARINC DirectSM announce the first installation of their high-speed Internet communications solution for business jets, eXchangeTM with Service by SKYLink, on a Citation X aircraft.

sacramento metropolitan arts commission — selects three internationally known artists to propose and ultimately design art pieces for Sacramento’s planned airport expansion. Artists Donald Lipski, Lawrence Argent, and Christian Moeller will be asked to propose and then design art that will be integrated into the building’s architecture. Overall budget for the arts initiative is $8 million.

sita — an IT provider which tracks passenger baggage worldwide, publishes a report which shows how baggage handling can be improved at the world’s busiest airports through the better use of technology. SITA says RFID (Radio Frequency Identification) could save industry as much $700 million if fully implemented across the industry. The “Baggage Report” says the air transport industry lost $3.8 billion in 2007 because of growing pressures on baggage management linked to passenger volumes, tight aircraft, turnaround times, and heightened security measures. Figures show that 42.4 million bags were mishandled or delayed in 2007.

starbucks — opens one of two retail outlets at the Edmonton Int’l Airport.

state of maryland — is assessing airlines operating at Baltimore-Washington Int’l Thurgood Marshall Airport $25 million in new charges, including $13 million it says is owed by Southwest Airlines. The additional charges are being imposed to cover increased expenses, including higher security and utility costs. In Southwest’s case, the state says it found that it had been undercharging the airline for its new terminal space. The charge is in addition to $32 million in rent and fees Southwest paid the airport in FY2007.

universal avionics systems corp. — of Tucson is issued that a Part 25 Supplemental Type Certificate (STC) for the MFD-640 Multi-Function Display. Chicago Jet Group, in conjunction with Delta Engineering of New Castle, DE, was issued the STC for installation of the MFD-640 on Dassault Falcon 50 aircraft.

u.s. dot secretary — Mary E. Peters launches Fast Lane, the department’s new blog, accessible at fastlane.dot.gov to serve as an on-line community for those interested in the nation’s transportation system and its future.