Industry News

AIP Targeted for $600 Million Reduction

President Bush's budget request for fiscal year 2006 is now available. As part of the budget for the Department of Transportation, the Airport Improvement Program is targeted for a $600 million reduction below the authorized level while other programs of importance to airports, including the FAA air traffic control modernization program would suffer cuts as well.

The budget request also includes $14 billion for the FAA to support new infrastructure, hire new air traffic controllers, and deploy technology to enhance aviation capacity and safety. The budget triples funding for the Joint Planning and Development Office.

The Budget in Brief is available at

Illinois Governor Voices Support for Third Chicago Airport

Gov. Rod Blagojevich (D) announced his support of building an airport in Peotone during his recent State of the State address. He says O'Hare does need to be expanded, but that will not be enough. In order to handle the demand in the region another airport is necessary. Tentatively named Abraham Lincoln National Airport, the facility has been championed by U.S. Rep. Jesse Jackson Jr. (D) and could be built with private investment.


ACC--Airport Consultants Council is seeking airport consultants who are skilled in the National Environmental Policy Act (NEPA) process to teach sessions at its upcoming courses;

ACI-NA--begins its search for new leadership, following the announcement that David Plavin, CEO and president, will depart at the end of the year.

THE AIR GROUP--adds two new Gulfstream IVs to the nationwide private jet fleet it manages. The new jets are based at Van Nuys and Teterboro.

DELTA AIR LINES--completes its planned reduction of daily flights at DFW Int'l., leaving 24 gates open in the airport's Terminal E. This is the final step of the airline's restructuring announced in September 2004.

DETROIT METRO--announces its vacant Davey Terminal will be demolished to make way for a new North Terminal.

DULLES INT'L--releases its Draft Environmental Impact Statement for constructing two new runways.

EL TORO MARINE AIR BASE--will be converted into a regional airport to take pressure off Los Angeles Int'l, despite objections from Orange County officials.

FAA--awards Lockheed Martin the contract to modernize the flight service station system, which provides pilots with weather information.

FORT WAYNE INT'L--files a lawsuit seeking more than $560,000 in damages against ATA Airlines Inc. for breach of contract, after the airline's decision to end air service between Fort Wayne and Chicago.

GENERAL MITCHELL INT'L AIRPORT--opens a $6.8 million passenger Amtrak rail facility. The station will serve rail passengers connecting to the airport, along with rail-only passengers using Amtrak's service to and from Chicago.

INDEPENDENCE AIR--will expand its network by adding connecting service from Stewart Int'l to five major West Coast destinations via its hub at Dulles Int'l.

JETBLUE--announces plans to expand at Boston's Logan Airport, leasing an entire terminal and increasing its gates at the airport from 2 to 11.

LAMBERT INT'L--boards the fewest number of passengers in 2004 in more than 20 years. The decrease was expected after American Airlines reduced its flights here in November 2003 by half.

LAX--suspends one of only two shuttle companies allowed to pick up passengers without reservations at the airport after a state regulatory agency took away Prime Time Shuttle's operating permit.
... will receive a $5.9 million insurance settlement for business losses suffered as a result of the 9/11 terrorist attacks.

MILLION AIR--announces construction has begun for its hangar expansion and office building at Oakland County Int'l, doubling the size of the existing aviation facility.

MSP--State of Minnesota pollution authorities are seeking $125,000 in fines, and corrective actions costing more than $3 million, for a pair of jet fuel leaks at Minneapolis-St. Paul Int'l in February 2003.

NBAA--releases its training guidance for the next generation of very light jets; Training Guidelines for Single Pilot Operations of Very Light Jets and Technically Advanced Aircraft.

NTSB--National Transportation Safety Board requires all Part 121 and 135 air carriers to obtain any notices of disapproval for flight checks for certificates and ratings for all pilot applications and evaluate this information before making a hiring decision (A-05-01).

ORLANDO SANFORD INT'L--awards a rental car concession to Enterprise Rent-A-Car. Vanguard Car Rental USA, Inc., parent company of Alamo and National, is building a rental car facility at a new site at the airport.

PHOENIX SKY HARBOR INT'L--the new concourse under construction here and expected to be complete in March 2005, will provide eight new gates for Southwest Airlines.

PHILADELPHIA INT'L--agrees to pay US Airways $6 million for the use of 30 jet bridges owned by the airline.

SABRELINER CORP.--is awarded a subcontract from DynCorp Technical Services, LLC to provide airframe depot support of the Air Force fleet of 76 Learjet C-21A aircraft. The potential value of the seven-year contract could be in excess of $17 million.

SAFEGATE--acquires Airfield Signs, a manufacturer of airfield guidance signs.

SENATOR CONRAD BURNS (R-MT)--is selected as Chairman of the Senate Subcommittee on Aviation.

SONG--plans for a spring expansion of its fleet. Delta's low-cost offshoot will add 12 Boeing 757s to its current fleet of 36. Song will also add 36 new flights by September.

SOUTHWEST AIRLINES--announces its will discontinue service at Houston's Bush Intercontinental Airport in April because of ongoing losses.

TAC AIR--agrees to acquire the McGhee Tyson Airport FBO operation of Knox-Air.

TSA--announces that Baltimore-Washington Int'l will be the eighth airport to receive a new explosives detection trace portal to screen passengers and the Pier D security checkpoint; part of the Phase II pilot program to test and evaluate the trace portal for screening passengers for explosives.

TURNER CONSTRUCTION COMPANY--is awarded a $220 million contract to provide construction services for Delta Air Lines at JFK Int'l.