The Republican-controlled House of Representatives Appropriations Committee is moving to further rein in federal subsidies under the Essential Air Service (EAS) program to local U.S. communities, according to a committee report explaining its markup of next fiscal year’s annual spending. If their provisions are enacted, the spending panel’s markup would prohibit EAS payments to communities requiring a per passenger rate of subsidy in excess of $500, half the $1,000 limit imposed under the Airport and Airway Extension Act of 2011.
Europe’s goal of developing a database that collects aviation occurrence reports from across the region and helps identify broad safety trends is moving closer to reality as both data quality and reporting consistency improve, the European Aviation Safety Agency (EASA) reports.
Taiwan’s EVA Air is planning to reduce its freighter fleet and phase out its MD-90 passenger aircraft. President Austin Cheng says all 11 of the MD-90s are being sold to Delta Air Lines, with five scheduled to be transferred next year, three more in 2015 and the last three in 2016. Delta repeatedly has espoused the benefits of operating MD-90s and earlier this month said it intended to expand the fleet. Cheng also says the airline is phasing out its MD-11 freighter fleet.
Malaysia Airlines (MAS) on Aug. 5 is scheduled to resume service between Kuala Lumpur International Airport and Dubai International Airport some 19 months after dropping the route as part of a cost cutting initiative. “Dubai was one of the routes that were suspended in our route rationalization exercise in January 2012. We continuously monitor market demand, and are happy to be able to add back Dubai into the MAS network to extend our reach and strengthen our offering to customers,” says CEO Ahmad Jauhari Yahya.
All Nippon Airways and AirAsia are dissolving their low-cost carrier joint venture, a move both carriers have been signaling for weeks following disagreement about how to run the LCC. ANA’s board formalized the decision at a June 25 meeting, and signed an agreement with AirAsia that will see ANA take full control of the AirAsia Japan LCC. It already controls 51% of the share capital. ANA says it will buy AirAsia’s stake in the LCC, which will operate as a wholly owned subsidiary of ANA. The carrier will use the AirAsia brand until Oct. 31.
Singapore Technologies Aerospace (ST Aero) plans to ask the U.S. FAA for a supplemental type certificate (STC) covering a 15-pallet freighter conversion program for the Boeing 757. The Singapore-headquartered maintenance, repair and overhaul (MRO) company already has a 14.5-pallet freighter conversion program for the 757, but wants to offer 15 pallets so its program can remain competitive, says a ST Aero spokeswoman, adding that there is already a competitor offering a 15-pallet 757 freighter conversion program.
The FAA still cannot reliably determine how many flight standards safety inspectors it needs and where for commercial aviation oversight, which could be causing some staffing shortages, the Transportation Department’s inspector general’s office (DOT IG) says in a new audit report. But the data for the FAA’s staffing model also remains so unreliable that no one can say for sure, the IG adds.
Emirates will cut its schedule by up to 225 weekly flights as it readies for the closure of one of Dubai International’s two runways next year. The biggest user of Dubai International, Emirates will reduce its flight schedule by 15% to accommodate the 80-day closure, planned to begin on May 1, 2014. This will result in a cut of up to 225 flights from its current 1,470 flights per week schedule.
Singapore Airlines (SIA) Cargo is undergoing a management change with Lee Lik Hsin replacing Tan Kai Ping. The Star Alliance carrier says Lee will become CEO of SIA Cargo on Aug. 1 replacing Tan who gets Lee’s current job as SIA senior VP president for corporate planning. SIA Cargo is the airline’s most troubled business unit, posting an operating loss of S$167 million ($132 million) in the fiscal year ending March 31, due to the global downturn in the air cargo market.
Spairliners has leveraged the experience it gained from its initial Airbus A380 component support capabilities—from parts pooling to logistics—to launch similar services for Embraer E-Jet-family aircraft. The company, a joint venture between AFI-KLM and Lufthansa Technik, was set to highlight the work at the Paris air show, announcing that it began its E-Jet component service in late April and has $80 million worth of E-Jet line replaceable unit inventory—from landing gear to engine parts.
Air New Zealand has revealed more details of where it will deploy its Boeing 787-9s, on what will be the first routes for the -9 variant operated by any airline. Initial 787-9 deliveries will be used on long-haul flights from Auckland to Shanghai and Tokyo, and midrange flights to Perth, Papeete, and Honolulu. The first 787-9, which is due for delivery in July, will probably be used on Auckland-Perth flights for a short period, the carrier tells Aviation Week. Then it will likely be switched to a longer route, to either Tokyo or Shanghai.
Air Transportation Modernization Conference September 9-11, 2013 Washington, D.C. Re-Defining NextGen: Setting Priorities • Implementing Capabilities • Delivering Benefits Join industry experts including airlines, government agencies and leading technology providers as they answer: What’s next after sequestration? Learn more and register now at www.aviationweek.com/events/nextgen
The U.S. Justice Department, currently analyzing the proposed American Airlines-US Airways merger for antitrust concerns, should be wary of relying on the market presence of Southwest Airlines to hold down post-merger fares, the Government Accountability Office (GAO) cautions. The GAO’s warning relies on a study published in the May issue of the Transportation Research Board’s journal, and was delivered to Congress by the GAO in June 19 testimony to the Senate’s aviation subcommittee on how the merger might affect markets.
The Defense Department says it plans to take steps to better employ the under-used Civil Reserve Air Fleet (CRAF) as the nation transitions from a wartime mind-set.
For the FAA and all of those interested in transportation policy and appropriations, this week is unusually important. The Transportation Department could see its presidential nominee, Anthony Foxx, voted on and confirmed by senators, while other Capitol Hill action will provide key insight into expected spending for fiscal 2014.
The owners of Heathrow have said that building a new airport to serve the U.K. capital would leave the country worse off. In its report—Heathrow: Best placed for Britain—the airport owners LHR Airports Limited, along with architectural and planning consultants AECOM and Quod, have said that expanding Heathrow is quickest and cheapest way of maintaining a hub airport with connection to growing markets.
