Aviation Daily

Madhu Unnikrishnan
Sen. Claire McCaskill (Mo.) is the first Democrat to sign onto a Senate bill prohibiting U.S. carriers from participating in the EU’s emissions trading system (ETS). Senate Bill 1956, the “European Union Prohibition Act,” was introduced by Sen. John Thune (R-S.D.) at the end of last year and aims to prevent the EU from mandating that U.S. carriers pay into the ETS. At issue for McCaskill is the EU’s demand that airlines pay for emissions for the entire length of the flight, not just the portion in EU airspace.
Air Transport

Amy Svitak, [email protected], Amy Svitak, [email protected]
Iridium CEO Matt Desch says his company will announce an agreement by June with global air traffic monitoring authorities to place automatic dependent surveillance-broadcast (ADS-B) terminals on its Iridium Next second-generation satellite constellation, which is scheduled to be fully operational by 2017.
Air Transport

By Jen DiMascio
If Congress fails to undo legislation imposing steep budget cuts over the next 10 years, it could end the FAA’s NextGen air traffic modernization program and set back efforts to use unmanned aerial vehicles in civilian airspace, aerospace industry officials say.
Air Transport

By Jay Menon, Jay Menon
The International Air Transport Association (IATA) yesterday suspended cash-strapped Kingfisher Airlines from its Clearing House for non-payment of taxes. “IATA has suspended Kingfisher Airlines’ participation in the IATA Clearing House (ICH). This is because the airline did not settle their ICH account within the stipulated deadline,” IATA spokesman Albert Tjoeng says. The India-based airline “will be reinstated after it fulfills the ICH requirements,” Tjoeng adds.
Air Transport

Kristin Majcher
Sabena Technics’ maintenance facility in Bordeaux, France, is in the process of performing substantial heavy check and repair work on two of Afriqiyah Airways’ Airbus A330 aircraft, which arrived at the MRO last week. Several aircraft in the Libyan operator’s fleet suffered damage during recent conflicts. Philippe Rochet, Sabena Technics’ EVP-airframe services, says the MRO sent a maintenance task force of 10 engineers to Libya to prepare the aircraft for ferry flights to Bordeaux.

Kerry Lynch
The business aviation market is showing early signs that the momentum at the end of last year is carrying into 2012 with key indicators improving in January, according to initial analyst reports. Used aircraft sales continued to strengthen, and prices jumped dramatically in January for the first time in months, according to Jetnet’s latest report. Business aircraft flights, meanwhile, reached their highest levels of activity in nearly a year, according to FAA and Morgan Stanley data.

Oliver Wyman
Click here to view the pdf Carrier Yield Trend - Seattle/Tacoma, WA Carrier Yield Trend - Seattle/Tacoma, WA Yield (Cents) 3Q11 3Q10 3Q11Mkt.

Andrew Compart
Republic Airways’ biggest shareholders never fully bought into the holding company’s plan to simultaneously run a fixed-fee regional airline business and a self-branded low-cost carrier, contributing to Republic’s decision to try to sell or spin off its Frontier Airlines subsidiary this year, Republic Chairman and CEO Bryan Bedford says.
Air Transport

Andrew Compart
Pinnacle Airlines is looking for a new CFO—again. Ted Christie, who joined the Memphis, Tenn.-based regional carrier in mid-July to replace a CFO who left to become CFO at San Francisco-based low-cost carrier Virgin America Airlines, has resigned to become the CFO at South Florida-based, low-cost carrier Spirit Airlines.
Air Transport

Darren Shannon
An already heated debate about Mexicana de Aviacion’s debt obligations has exploded in the past few days as creditors scramble to regain losses incurred by the carrier’s grounding in August 2010. At issue is a legal obligation by Mexicana to gain the approval of 51% of its creditors by value for any reorganization plan, which enables the company to proceed with its court-protected restructuring with the backing of just a small number of creditors holding large amounts of debt.
Air Transport

Madhu Unnikrishnan
Market-based measures (MBM), such as emissions trading or carbon taxes, are a necessary part of combatting aviation’s greenhouse gas (GHG) emissions, but these measures cannot be imposed in isolation, a new study from the World Bank finds. Instead, market-based measures need to be explored in tandem with technology, operations and infrastructure, and governments have a role to play in all of these measures.
Air Transport

Frank Jackman
Pemco World Air Service, one of the largest independent airframe MRO providers in the U.S. and a long-time specialist in passenger-to-freighter conversions, Monday filed for Chapter 11 bankruptcy protection. The company says that it has secured debtor-in-possession (DIP) financing and that it plans to restructure and emerge from Chapter 11 within 90 days.

By Jens Flottau
Air Baltic plans cuts in its employment base and 15% staff reductions in an attempt to return to profitability by 2014, says its new CEO, Martin Gauss.
Air Transport

Graham Warwick
Canada’s AeroMechanical Services (AMA) has received its first approval to activate its Iridium satellite-communications system, on a Bombardier CRJ900 operated by a U.S. customer. Calgary-based AMA’s AFIRS 228 automated flight information system provides satellite communications, including safety services, over Iridium, as well as data downlinking for maintenance, uploading for electronic flight bags and text messaging for crews.
Air Transport

Staff
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Madhu Unnikrishnan
The Middle East will be one of aviation’s more compelling growth stories over the next 10 years as the region transforms itself into an airline powerhouse, an analysis of Aviation Week Intelligence Network data shows. The region stands to reap the benefits of its geography and changing traffic flows to punch far above its weight in the industry.
Air Transport

Leithen Francis
Malaysia Airlines (MAS) next month will unveil the brand name of its new short-haul premium carrier, says MAS Chief Operating Officer-Short-Haul Ignatius Ong, who gave a media briefing this week in Kuala Lumpur. He says the new business will be positioned as a full-service, short-haul carrier catering to premium travelers. The aim is to have it start flying in mid-year with Boeing 737-800s, he adds.
Air Transport

Darren Shannon
Air Panama, the country’s second- largest operator, appears to be the beneficiary of AviancaTaca’s decision to shutter its Panamanian subsidiary, Aeroperlas, Feb. 29 with minimal notice. Local authorities say Air Panama will assume the routes once served by its rival, which operated two ATR 42s and a couple of Cessna Caravans under the TACA Regional banner. Aeroperlas was the country’s third-largest airline.
Air Transport

Oliver Wyman
Click here to view the pdf U.S.

Robert Wall
Jazeera Airways is eyeing modest improvements in 2012 as the airline shifts its focus from returning to profitability to achieving moderate growth. Despite a 37% increase in the cost of fuel, the Kuwait-based, low-cost carrier delivered a 2011 full-year net profit of 10.6 million Kuwaiti dinar ($38.1 million), following a 2.8 million dinar loss the previous year. The outlook for 2012 is positive, with the airline looking to make small improvements in yield performance, Jazeera Airways Chairman Marwan Boodai tells financial analysts.
Air Transport

By Adrian Schofield
Nav Canada is buying an air traffic control system from Germany’s DFS, part of a developing trend of air navigation service providers (ANSPs) buying technology from each other, rather than manufacturers. This deal is notable because Nav Canada is usually the one selling its technology to other ANSPs. Nav Canada says agreements like these avoid duplicate development costs and enable field-proven systems to be deployed.
Air Transport

Oliver Wyman
Click here to view the pdf U.S.

Robert Wall
The consortium trying to revive the Fokker 100 has decided to make a change in its engine choice, opting for the Pratt & Whitney PW1000 geared turbofan. The engine will effectively have the same 56-inch-diameter-fan configuration Pratt & Whitney is providing in the PW1200G for the Mitsubishi Regional Jet. The engine replaces the Rolls-Royce BR725 that Rekkof Aircraft, the company behind the Fokker 70/100NG, last year identified as its preferred engine offering.

Darren Shannon
AMR Corp. tells its labor unions that “time is running out” for them to reach agreement on new contracts, a warning that indicates the company may soon seek court intervention in its negotiations.
Air Transport

Staff
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