Financing modernization of the ATC system over the next 10 years with user fees instead of excise taxes might make it too easy for FAA to pass on cost overruns to airlines, passengers and other system users, Rep. James Oberstar (D-Minn.) believes. Speaking as the House Transportation aviation subcommittee launched hearings on the Bush Administration's FAA reauthorization proposal (DAILY, March 15), Oberstar linked the source of funds with the potential for loosened management reins.
To list an event, send information in calendar format to Ingrid Lee at [email protected] MARCH 19-21 -- SPEEDNEWS: 21st Annual Aviation Industries Suppliers Conference, Beverly Hills, Calif., 310-203-9603, Fax: 310-203-9352 MARCH 20-22 -- National Air Transportation Association: 2007 Annual Convention, Orlando, Fla., 703-845-9000; fax: 703-845-8176 MARCH 20-22 -- Professional Aviation Maintenance Association: 36th Annual Symposium, Orlando, Fla., 703-683-3171, fax: 703-683-0018
Europe is preparing for the summer 2007 launch of Ligne à Grande Vitesse (LGV)-Est, a new high-speed rail link between Paris and Strasbourg that Air France expects will cut into its passenger traffic. The EUR4 billion railway "will eventually become the French section of the 'Magistrale pour l'Europe,' a 1 500-kilometer rail link between Paris and Bratislava," said EU Transport Commissioner Jacques Barrot. As a consequence of the opening of the LGV-Est in June, the train journey time from Frankfurt to Paris will drop to 3h45m from 6h15m.
By George W. Hamlin Currently, Airbus faces the daunting prospect of not only getting the A380 program back on track, which will involve considerable additional investment, but also of meeting the competitive threat posed by Boeing's 787. The latter involves a "revised" A350, resulting in an aircraft that will enter the market several years after the Boeing product, and will require considerable -- and simultaneous -- development spending of its own.
Southwest has yet to tap a potentially large revenue pool offered by ancillary sales, but some analysts think the carrier is on the verge of taking advantage of its large customer base to maximize revenues outside of ticket sales. In a recent research report, analysts at Raymond James said ancillary sales currently represent only 2% of Southwest's revenue, compared with 15% at Ryanair, which translates to ancillary revenues accounting for about 25% of the airline's earnings.
FAA predicts that 350 microjets will enter the U.S. fleet next year, with this number growing by about 400-500 per year through 2020. The new microjets will help boost general aviation operations, with GA flight hours forecast to increase by an average of 3.4% a year.
The European Union will postpone the implementation of a new rule limiting hand baggage size at least until November 2007. The IATA standard size of 56 centimeters (22.4 inches) by 45 cm by 25 cm was due to be legally enforced uniformly throughout the EU from May, but airlines told the European Commission "they need more time to prepare," said the spokesman for European Transport Commissioner Jacques Barrot. They will get a six-month reprieve, which could be extended, said the spokesman. -MT
Boeing last week completed the first vertical fin for the 787 program, the largest structural part assembled by Boeing in-house. The fin was made and assembled at Boeing's Composite Manufacturing Center in Frederickson, Wash. The company describes the delivery as meeting "a key program milestone" for the 787 program as it moves toward final assembly and a July target for initial roll-out.
The European Commission said member states are not moving fast enough in developing functional airspace blocks (FABs), and the projects underway are not encouraging enough to meet the 2008 deadline for EC review. "Although discussions on creating functional airspace have lifted off," the EC said in a statement, "...few projects are promising enough to meet [EC] requirements by 2008." The EC added that it "fears the results over the next two years will not be sufficiently robust and beneficial."
The Allied Pilots Association says a large majority of its members support keeping the pilot retirement age at 60, instead of raising it to 65 as FAA proposes. In a recent telephone poll conducted by an independent company, 86% of APA members favored the current rule. A separate Internet poll conducted by APA found that 79% oppose changing the rule.
Spain will not be insulated from the strong aircraft demand predicted for the wider European region, Boeing predicts. Spanish carriers will need about 410 aircraft worth about $36 billion in the next 20 years, Boeing said last week. "Spain as well as Europe as a whole are very promising markets over the next 20 years," said Drew Magill, director of marketing for Boeing Commercial Airplanes. "We see the rate of growth for passenger traffic outpacing overall economic growth in the region."
30 Years Ago March 21, 1977 -- An Air-India brochure informs passengers that "IATA will not let us haggle. Not on paper. But if you, dear passenger, paid the normal fare on any airline in the world, we shall be glad to pay to have your head examined." 20 Years Ago March 18, 1987 -- Consolidation of the U.S. majors into six or seven megacarriers is drawing to a close, and the survivors can be expected to forge marketing, even ownership, alliances with foreign flag carriers to continue their growth, predicts one analyst.
U.S. airlines reported systemwide enplanements of 744.4 million in 2006, up 0.8% from the same period last year. Domestic passenger growth was effectively flat, while international passenger numbers rose 6%. American had the most passengers for the fifth year running, and the most international passengers for the 17th time. Southwest topped the domestic passenger list for the third year in a row. Atlanta was again the busiest U.S. airport, and Miami had the most international passengers.
Alaska Airlines executives say the carrier is facing challenges in its cargo operations after delivery delays affecting two Boeing 737-400s Combis. The airline won't receive the aircraft until late spring. The carrier warns the delays could result in $3.5 million in lost cargo revenue this spring. Options under consideration include allowing Kitty Hawk Aircargo to temporarily fly mail in Southeast Alaska, which would free the carrier's new 737-400 freighter that normally handles those flights to fly a daily route out of Anchorage.
Thales has installed a highly integrated ATC system at Bangkok's new Suvarnabhumi Airport so aircraft hand-offs can occur without anyone having to pick up the phone. Computer data are now automatically shared with controllers guiding approaches and departures and controllers in the tower approving landings, takeoffs and issuing taxiing instructions in a more data-driven enterprise.
US Airways CFO Derek Kerr says the carrier should close on a recently detailed $1.8 billion debt refinancing deal by the end of this week "if all goes as planned." The transaction puts the carrier's annual debt maturities below $200 million from 2007 through 2011.
You can now register online for AVIATION WEEK events. Go to www.aviationweek.com/conferences or contact Lydia Janow, 212-904-3225 or 800-240-7645 ext. 5 (U.S. and Canada only) APRIL 17-19 -- MRO 2007 Conference & Exhibition, Cobb Galleria, Atlanta, Ga. OCT. 17-18 -- MRO Asia 2007 Conference & Exhibition, Shanghai, China NOV. 7-8 -- MRO Europe 2007 Conference & Exhibition, Fiera Milano Congressi, Milan, Italy NOV. 28-29 -- A&D Finance Conference, New York, N.Y.
ILFC Chairman Steven Udvar-Hazy says the aviation industry is "grossly underestimating" the momentum the environmental movement is taking on. Hazy sees the negativity in the environmental arena that surrounds the industry accelerating at a greater rate than Airbus, Boeing, GE and Rolls-Royce are building aircraft that are more environmentally efficient. IFLC's chairman says the environmental movement will have a "profound effect" over the next 20 years.
Unisys has become the second registered traveler program vendor to be approved as a service provider by the Transportation Security Administration. And the company plans to have its RT Go program operational at Reno-Tahoe Airport by the end of March, said Larry Zmuda, partner for homeland security at Unisys. "Our enrollment statements have been shipped out. We met with Reno last week on the specifics," he said. "Our enrollment location will be at a storefront by the car rental location, while the kiosks will be at the B and C concourses."
