The Weekly of Business Aviation

Staff
JAMES THOMPSON was appointed director of marketing and programs for Garrett Aviation Services. Thompson previously held marketing, programs and business development management positions with Rohr, Inc.

Staff
PENTAGON acquisition officials last week approved the Marine Corps plan to upgrade the AH-1 Cobra helicopter with a new four-bladed rotor system. Officials in a Defense Acquisition Board readiness meeting approved modification of 183 AH-1Ws. The program includes the four-bladed rotor system, new drive trains and hydraulic systems. Bell Helicopter is slated to receive a contract to begin development of the upgrade program. First flight is slated for late 2000 with a low-rate initial production decision in 2002.

Staff
REP. ARCHER, contesting the Internal Revenue Service's recent position to treat major engine overhauls as a capital rather than ordinary business expense, will take his fight to the White House if the tax agency continues to refuse to change its stance. The IRS this month told Archer that its interpretation of the tax code regarding overhauls applies only to a single airline and was not a major change in tax policy. See article on Page 170.

Staff
Conoco, Inc., which has been seeking a way to either expand its general aviation operations or exit the market, reached an agreement with Air BP under which "Air BP will assume Conoco's GA marketing activities, and Conoco will supply Air BP Jet A and avgas." Conoco will continue to market Jet A and JP-8 to commercial airlines and the military.

Staff
U.S. AIR FORCE T-38 trainer upgrades have begun following withdrawal of a Lockheed Martin protest to the General Accounting Office. Lockheed Martin protested after the Air Force awarded a McDonnell Douglas team $45.7 million on July 31 to design and develop a T-38 avionics upgrade and deliver two improved aircraft. The contract could involve modification of 425 aircraft. The protest was withdrawn late last month.

Staff
RAPCO, INC., Hartland, Wis., received FAA-PMA approval for its de-ice lead harness as a replacement part on Beech 1900D aircraft. Rapco officials said the harness is "significantly more rugged" with more than 30 percent lower cost of the original de-ice lead harness. For more information, call (414) 367-2292.

Staff
AVIATION AVIONICS&INSTRUMENT CORPORATION opened a 35,000-square-foot facility in Freeport, N.Y. The company is an authorized repair station for Gulfstream, Dassault Falcon and American Eurocopter aircraft, specializing in repair and overhaul of cockpit instruments, electrical systems, power supplies, switches, lights and engine indicators. AAIC is located at 210 Hanse Ave., Freeport, N.Y. 11520; telephone: (516) 868-7700; fax: (516) 868-2090.

Staff
MESA AIR GROUP INC. merged with Mesa Holdings Inc., a move that changes the company's state of domicile to Nevada from New Mexico. The firm cited substantial tax savings from Nevada laws as the reason for the action. The action, which became effective last week, was approved by shareholders earlier this year. Existing shares of Mesa common stock will be converted one-for-one into shares of the Nevada corporation. Mesa still has not decided where to locate its headquarters, but the company hopes to make a decision by yearend.

Staff
Citing "strong market positions and its favorable sales and profits outlook," Moody's Investors Service late last month assigned a Prime-2 short-term debt rating to Bombardier subsidiary Bombardier Capital Inc.

Staff
HOUSE WAYS AND MEANS COMMITTEE leadership is expected to announce plans shortly to form an internal task force to study transportation excise taxes.Committee leaders, who decided against taking action this year on a longer-term renewal of the aviation excise taxes (BA, Oct. 7/157), hope the task force will make its recommendations on transportation taxes early next year. A committee aide said the task force stems from concerns of Chairman Bill Archer (R-Texas) that transportation taxes may be duplicative in some instances and applied in an incoherent way.

Staff
KELLSTROM INDUSTRIES opened an office in Dublin, Ireland to service its customer base throughout Europe. Former AAR Corp. executive Martin Curtis will oversee the new operation. Kellstrom is involved in the purchasing, refurbishing, leasing, marketing and reselling of commercial jet engines and jet engine parts.

Staff
National Air Transportation Association said it was "outraged" at a provision in the FAA reauthorization bill, H.R.3539, that calls for airlines to obtain and share pilot records. H.R.3539 requires air carriers, before hiring a pilot, to request the pilot's records from the FAA, the pilot's previous air carrier employer and the National Driver Register. "This bill will have absolutely no effect on safety - yet will have a major effect on my business," said Flightstar Corp. President Bill Giannetti, a member of NATA.

Staff
The German government purchased seven GKN Westland Super Lynx helicopters, designated Sea Lynx Mk88A, under a contract valued at 100 million pounds ($156 million), GKN Westland said this month. Production will start in 1997 and the first aircraft will be delivered in 1999. The contract includes significant opportunities for German industry, with an industrial benefits package equal to the value of the contract. GKN Westland also is discussing with the German Navy a program to upgrade the 17 existing Mk88 Sea Lynx to Mk88A specifications.

Staff
FLIGHT CENTER announced a number of developments, including the completion of a "top-to-bottom" renovation of its air services facility at Boeing Field in Seattle. Flight Center launched a new aircraft sales department, headed by 23-year aircraft sales veteran Brad Wollen. The department will specialize in corporate aircraft and helicopter sales. Flight Center also opened a new in-flight catering operation, developed a new corporate identity and ordered three 5,000-gallon Trailmaster fuel trucks to improve quick-turn refueling.

Staff
Expressing months of frustration over Transportation Department proposals to sharply curtail aerial sightseeing flights over the Grand Canyon, the United States Air Tour Association (USATA) called Thursday for the removal of Transportation Secretary Federico Pena from office, citing what the group called Pena's "deplorable" performance.

Staff
GULFSTREAM AEROSPACE appointed two South American sales agents, Aerocentro de Servicios, C.A., of Caracas, Venezuela, and Macair Jet S.A. of Buenos Aires, Argentina. Aerocentro, which specializes in aircraft and helicopter sales and support, has maintenance and operations bases at La Carlota Airport in Caracas in addition to Maiquetia and Maturin. Macair Jet is part of the Macri group of companies, one of the largest industrial groups in Argentina.

Staff
A DRAFT ENVIRONMENTAL IMPACT STATEMENT for planned improvements at Lambert- St. Louis International Airport was published by FAA. The controversial proposal calls for construction of a 9,000-foot runway on the southwest side of the airport. Comments are due by Nov. 18.

Staff
FEDERAL AVIATION ADMINISTRATION is requesting comments on a proposed revision to its advisory circular on acceptable methods, techniques and practices associated with inspection and repairs to nonpressurized older aircraft weighing 12,500 pounds or less. Comments on proposed revision B to AC 43.13-1A are due Nov. 15 and should be sent to FAA Manufacturing Standards Section, AFS-610, 6500 MacArthur Blvd., ARB Room 304, Oklahoma City, Okla. 73125. To obtain a copy, fax a request to AFS-610 at (405) 954-4104.

Staff
REYNOLDS METALS COMPANY increased its aluminum-lithium capacity by 100 percent with the startup of a $5 million casting complex at its McCook, Ill., sheet and plate plant. Reynolds said aluminum-lithium is lighter than conventional heat-treated alloys.

Staff
EAGLEMARK FINANCIAL SERVICES formed a new division, Mooney Aircraft Financial Services, to provide retail financing for Mooney aircraft. Mooney Aircraft Financial Services will offer five- to 20-year aircraft loans, preferred interest rates and 24-hour loan processing. Eaglemark Financial Services, Chicago, Ill., is the financial services and insurance subsidiary of Harley-Davidson, Inc.

Staff
FED UP with Transportation Department proposals to severely restrict air tour operators, the United States Air Tour Association last week called for DOT Secretary Federico Pena's removal from office. See article below.

Staff
McDonnell Douglas last month launched an advanced version of its twin- turbine MD 900 Explorer helicopter that the company said will offer better speed, range, lifting capacity and operating costs. The new version, the MD 902 Explorer, will feature improvements in the helicopter's basic design and be powered by new Pratt and Whitney 206E turbine engines, allowing airspeeds of up to 137 knots at sea level, a 312-nautical-mile range and an endurance of 3.34 hours.

Staff
THE AVIATION EXCISE TAXES, which were temporarily renewed Aug. 27 (BA, Aug. 26/91), will lapse once again Dec. 31 since Congress adjourned for the year last week without passing an extension. The only action taken toward renewal was a "Sense of the Senate" resolution included in the FAA reauthorization bill that states the taxes "should" be reinstated for 18 months while long-term funding options are developed for the agency.

Staff
GRADY DEES was promoted to director of customer services for Universal Avionics Systems Corporation, and will continue to be based in Tucson, Ariz., where he will have increased responsibility for all field services and product repair services in Tucson and at the company's satellite shops. Dees has been with Universal Avionics (previously Universal Navigation Corp.) for more than five years.

Staff
FOKKER Model F28 Mark 0100 series airplanes (Docket No. 95-NM-59-AD; Amdt. 39-9762; AD 96-19-16) - requires inspections for cracking of the Hi- lok bolt holes in the main hinge fittings of the horizontal stabilizer and repair, if necessary. The amendment also requires modification of the main hinge rib connecting angles and modification of ribs. This amendment is prompted by a report indicating that cracking was found in the main hinge fittings of the horizontal stabilizer during fatigue testing.