Aviation Daily

Eclat Consulting

By Adrian Schofield
FAA is delaying by six months the introduction of a rule that extends the scope of its drug- and alcohol-testing program, but the delay has not eased the repair station industry's concerns about the rule. The agency had already established a compliance date of April 10 for the new drug testing rule, which was issued in January. Yesterday, however, FAA said the compliance date will be pushed back to Oct. 10. The new rule is intended to make sure that all repair and maintenance sub-contractors are included in the program, FAA said.

Steven Lott
Worldwide passenger traffic jumped 6.8% in February and freight traffic increased 5.4%, according to IATA, supporting the association's optimistic view that the industry is recovering.

Steven Lott
JetBlue for the third consecutive year took the top spot in the annual Airline Quality Rating (AQR) study, as the airline's poor on-time arrival rate in 2005 was more than offset by nearly perfect scores in other categories, beating AirTran and Southwest.

Steven Lott
Aerocalifornia was grounded by the Mexican government yesterday after regulators decided the carrier did not meet safety standards.

By Jens Flottau
Airbus plans to pick one of four possible places for its final assembly line in China by the end of April, according to a senior Airbus executive. "We can't complete a lot of the feasibility study until we know where it is going to be," Airbus China President Laurence Barron said in an interview. The manufacturer is looking at Shanghai, Zhuhai, Xian and Tianjin as possible locations for an Airbus A320 series final assembly line. Following the feasibility study, Airbus plans to make a final decision on the project in the summer. -JF

Staff
About 45 aircraft in the US Airways mainline fleet are now sporting the new livery, which represents about 12% of the total mainline fleet. Specific to its 56 Boeing 737-300s and 40 737-400s, 11 former America West 737s will be painted in 2006, with the remaining 16 slated for 2007. For the former US Airways 737-300s, all 29 are scheduled for painting in 2007. The 737-400s will take on the new livery between 2007 and 2009, with the vast majority of these planned for painting in 2008.

Benet Wilson
Canada has exceeded ICAO requirements by screening all checked baggage onboard international flights and on most domestic commercial passenger flights. Lawrence Cannon, Canada's Minister of Transport, Infrastructure and Communities, made the announcement during a keynote address at the Canadian Aviation Security Conference in Ottawa.

Steven Lott
United and Delta on Friday raised fares in many markets and, which, if matched by competitors, would represent the industry's second broad increase in 2006 and the largest walk-up fare hike in more than five years.

Steven Lott
World Airways last week prepaid the remaining $24 million outstanding balance of a term loan guaranteed primarily by the Air Transportation Stabilization Board (ATSB). The company used available cash to fund the prepayment. World had paid the first $6 million installment of the $30 million term loan on schedule in December, leaving a balance of $24 million. There were no financial penalties applicable to today's prepayment, the carrier said.

Steven Lott
LOT Polish Airlines last week named Krzysztof Kapis as its new president and CEO after a three-month search for a new leader. Marek Grabarek was forced out late last year after a new government took over in November (DAILY, Dec. 21). Kapis has been president of the Polish Civil Aviation Office and belonged to many international civil aviation organizations. He represents Poland at ICAO's general assembly. Kapis is returning to the airline after serving more than 25 years in various executive positions, including commercial director.

KLM

Staff
Named Michel Coumans to succeed Elfrieke van Galen as managing director-KLM cityhopper and CEO-KLM cityhopper U.K. Van Galen will soon be appointed to another position within the KLM Group.

Staff
Named Zachary Grasley, a civil engineering doctoral student at the University of Illinois at Urbana-Champaign, the recipient of its Outstanding Student of the Year award.

Staff
Promoted Donald Jay, previously VP-branch and flight operations, to chief operating officer.

Steven Lott
AMR's board on Friday approved changes to the American's management compensation program after the current plan was blasted by union leaders and employees. The change gives a combination of stock and cash distributions for compensation granted under the 2003-2005 Performance Share Plan, previously known as the Performance Unit Plan. Cash payments will be consistent with American's annual incentive plan. No further details were released. The AMR board also decided to make similar changes to the 2004-2006 Plan. -SL

DHL

Staff
Tapped Charles Brewer, manager of the company's country operations in Malaysia, to become executive VP-U.S. Air Products and Services and join DHL's U.S. Management Board.

Staff
Singapore TEchnologies Aerospace signed a five-year, US$12.5 million deal with an unnamed full-service Asian carrier for component maintenance and management of 13 Airbus A320 planes.

Staff
You can now register online for Aviation Week events. Go to www.AviationNow.com/conferences or contact Lydia Janow, 212-904-3225 or 800-240-7645 ext. 5 (U.S. and Canada only) APRIL 5-6 -- U.S. Defense Budgets and Programs Conference, Arlington, Va. APRIL 25-26 -- MRO Military Conference, Phoenix APRIL 25-26 -- MRO USA Conference & Exhibition 2006, Phoenix MAY 17-18 -- MRO Military Europe, Berlin SEPT. 19-21 -- MRO Asia, Xiamen, China OCT. 24-26 -- MRO Europe, Amsterdam

George Hamlin
By George W. Hamlin Recently there has again been discussion of mergers in the U.S. airline industry. Since it's likely that there will be consolidation eventually, whether by merger, carrier failure or both, it's worth considering whether the urge to merge is desirable. The answer, of course, is that perspective is everything.

Luis Zalamea
Workers at Lloyd Aereo Boliviano staged several protests last weekend in a bid to spur the government to save the troubled carrier; the protests reportedly resulted in the suspension of LAB's operating license.

Staff
To list an event, please send information in calendar format to Ingrid Lee at [email protected] APRIL 3-7 -- ACI-NA/NTSB Media Relations & Crisis Communications Seminar, NTSB Academy, Ashburn, Va., 202-293-3032, email [email protected] APRIL 4-10 -- Experimental Aircraft Association Sun 'n' Fun Fly-In, Lakeland Linder Regional Airport, Lakeland, Fla., 920-426-4800

Staff
International Aero Engines won new business from Indian carrier Air Deccan after finalizing a deal to supply its V2500 engines for 30 Airbus A320s the airline has on order. IAE said the value of the agreement was $500 million. The airline also opted for IAE's V2500Select service package and upgrade program.

Staff
American says it will retrofit its entire fleet of Boeing 737-800s with blended winglets between May 2006 and September 2007, requiring an order for 76 winglets sets. The carrier outfitted a single 737-800 with winglets last year, and its evaluation showed the devices produced the expected fuel savings. The retrofits will be carried out at American's Tulsa maintenance facility.

Steven Lott
Virgin Atlantic last week signed a code-share deal with Air China and will start cooperating this summer.