Aviation Daily

Staff
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Oliver Wyman
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Air Transport

Oliver Wyman
Click here to view the pdf Top Carriers: Los Angeles-San FranciscoYear Ended Second Quarter 2011, Ranked By Passengers Top Carriers: Los Angeles-San Francisco Year Ended Second Quarter 2011, Ranked By Passengers

Madhu Unnikrishnan
Iran’s threats to prevent oil shipments through the Straits of Hormuz caused oil prices to spike briefly this week, but the main concern for airlines in the medium term could be that an increasing demand for oil will put upward pressure on the price of fuel.
Air Transport

Darren Shannon
AMR Corp. says it will meet all debt obligations on its Bombardier CRJ700 fleet during the first months of its Chapter 11 reorganization, a move that indicates the regional jets will be included in the company’s fleet plan. The commitment is contained in a new filing with the operator’s bankruptcy court that invokes Section 1110 of the U.S. bankruptcy code. This section allows lenders to repossess their aircraft within 60 days of a Chapter 11 filing unless the carrier “cures the default” by meeting its obligations.
Air Transport

By Bradley Perrett
Gulfstream is seeing a shift in China's demand for large aircraft to more medium-size aircraft.

Darren Shannon
Republic Airways has delayed the appointment of a chief operating officer for its Frontier Airlines division by several weeks, missing a deadline for a position deemed crucial to the survival of the troubled mainline carrier. Under an agreement with Frontier pilots that will ultimately split the Denver-based airline from Republic, the appointment of the COO, along with several other senior management positions, was to be finalized by the end of December.
Air Transport

By Bradley Perrett
The city of Chongqing plans to spend 1 billion yuan ($160 million) in the next three years supporting airlines that help it in its campaign to become the international gateway to western China.
Air Transport

Darren Shannon
Grupo TAM has signed a code-share agreement with Star Alliance partner Turkish Airlines just months before a merger with Chile’s LAN Airlines could force the Brazilian operator to sever ties with the global alliance. The merger is expected to be completed by the end of the first quarter.
Air Transport

Jim Swickard
LightSquared is bringing back telecommunications veteran Marc Montagner to serve as CFO.
Air Transport

Darren Shannon
Shareholders in Brazilian carrier GOL Linhas Aereas Inteligentes have approved the sale of $100 million worth of new shares to Delta Air Lines, a move that formally endorses a “strategic alliance” between the two carriers.

By Adrian Schofield
Northrop Grumman has achieved the first stage of certification for an airport surveillance system operating at major airports in China that will make it much easier for the system to be deployed across the country. The Nova 9000 system received temporary certification in November, based on existing deployments at Beijing and Guangzhou. Another of these systems is expected to become operational in Shenzhen in mid-2012, Northrop executives tell Aviation Week. Final certification will be based on this and the existing systems.

Michael Mecham
Evergreen International Airlines has purchased its first 747-400 Boeing Converted Freighter (BCF) for delivery next year.

Platts
Fuel Watch: Global Jet Fuel Prices (midpoint) As of Dec. 21, 2011• compared with previous week and previous year cts/gal prev. week prev.

By Adrian Schofield
All Nippon Airways plans to use its Boeing 787s to open two new routes to the U.S. West Coast in late 2012. The routes will be the second and third international services created specifically for the 787.

Kristin Majcher
Miami-based Aeronautical Engineers, Inc. (AEI) hopes to gain an FAA supplemental type certificate (STC) for an MD-80 passenger-to-freighter conversion in late March or April after supply chain issues made an expected year-end approval impossible. David McDonald, AEI’s VP operations, says there was a delay in a crucial 9G cargo barrier material that was scheduled for delivery in September. The material is now expected to arrive in the first week of January.

Darren Shannon
The Department of Homeland Security (DHS) is deferring release of the Transportation Security Administration’s (TSA) long-awaited and congressionally mandated repair station security rules to the fourth quarter of 2012. “We have been working diligently to complete this task and to address all the issues raised by our industry partners,” TSA Administrator John Pistole says in a letter to industry groups. “TSA…has completed the review of all pertinent information available to adequately finalize the ongoing rulemaking.”

Staff
In observance of the year-end holiday season, Aviation Daily will not publish issues dated Dec. 27 through Jan. 3. Following the Dec. 26 issue, the next issue will be dated Jan. 4. During the interim, Aviation Week Intelligence Network subscribers can visit www.aviationweek.com/awin for continuous news updates.

Staff
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By Adrian Schofield
A new wide area multilateration (WAM) system deployed at Sydney Airport is believed to be the first use of this surveillance technology for both precision runway monitoring and coverage of terminal airspace. The WAM system, manufactured by Saab Sensis Corp., now is fully operational after being formally accepted into service in September. This followed a 14-month operational testing period, Airservices Australia officials tell Aviation Week.

Harrell Associates
Introducing the Aero 100 Airfare Benchmark Index Designed for anyone with risk on the future level of airfares – for example Airlines, Banks/Credit Card Companies, Corporate Travel Managers, etc. The Aero 100 Airfare Benchmark Index tracks daily airfares within the domestic airline market. The Aero 100 delivers financial risk mitigation and protection against constant fluctuation of airline ticket prices by providing the price settling mechanism for Commodity Futures Contracts.

Darren Shannon
Frontier Airlines stands to be one of the beneficiaries of the imminent demise of USA3000 because it is poised to pick up some of the carrier’s U.S.-Mexico routes and Apple Vacation’s allocation of seats on the flights. But the low-cost carrier faces a fight with AirTran Airways over rights to operate between Chicago and Cancun.

By Jens Flottau
International Airlines Group’s (IAG) bid for Lufthansa’s loss-making BMI British Midland division has prevailed over an offer by U.K. rival Virgin Atlantic. The transaction significantly strengthens the slot portfolio of IAG’s British Airways operation at London Heathrow International Airport with the addition of 56 daily slot pairs, which gives BA half of all slots at the congested airport, some 8% more than it held before the sale.

Oliver Wyman
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Andrew Compart
The union representing UPS pilots is challenging the FAA in federal court over its decision to exclude cargo carriers from its new crew rest rule for pilots. The Independent Pilots Association (IPA) filed its petition for review Thursday with the U.S. Court of Appeals in Washington. The filing does not explain the complaint—that will come when it submits its preliminary statement of issues—but the union offered a detailed out-of-court explanation in the interim.