Michael McGowen has become general counsel of Seattle-based Teledesic. He was a partner in the Seattle law firm Perkins Coie. McGowen succeeds Dennis James, who will remain president. Len Quadracci has been promoted to vice president from director of system engineering.
David J. Mason has been named vice president-public affairs and Michael McHenry director of technology and commercial development of Kaufman Holdings, Fords, N.J. Mason was vice president-regulatory affairs. McHenry held the same posts with subsidiary Hatco Corp.
Aerolineas Argentinas continues to melt down. Late last week, the Buenos Aires-based airline indefinitely suspended service to seven international destinations-- all long-haul flights except to Madrid. SEPI, the Spanish state industrial holding company that owns 90% of Aerolineas, has balked at putting more money into the debt-ridden carrier, which is also beset with labor problems.
The U.S. Air Force Museum broke ground this month for the construction of a $16.6-million, 190,000-sq.-ft. hangar on the grounds of Wright-Patterson AFB near Dayton, Ohio. The hangar represents phase one of the museum's Cold War Expansion, the largest of three new facilities envisioned. Museum Director Charles D. Metcalf said the hangar is scheduled for completion in 2003, coinciding with events commemorating the Centennial of Flight. Expansion plans include a tower to house the collection of intercontinental ballistic missiles and a new space gallery.
Capt. Larry B. Edeal has become director of flight standards for TAG Aviation USA of San Francisco and Lance R. Fera vice president-client services based in White Plains, N.Y. Fera was director of sales and marketing for Honeywell Commercial Electronics Systems.
The U.S. Air Force's selection of Boeing's avionics modification program to upgrade its fleet of C-130 transports is a major setback for Lockheed Martin, but a significant win for Boeing's growing military services business.
Frontier Airlines on May 31 reported record net income for its 2001 fiscal year, but one day later it warned that the current quarter won't be as rosy. The Denver-based carrier earned $54.9 million in fiscal 2001, which ended Mar. 31, more than doubling the previous year's net as revenue grew 43.4% to $472.9 million. For the quarter ending June 30, it expects earnings per share between 28 and 38 cents, down from 57 cents a year earlier.
The FAA has turned to the TV cameras. Real-time airport delay information from the FAA's Air Traffic Control System Command Center's Web site, www.fly.faa.gov, last week began airing as a ``ticker'' across TVs tuned to the CNN Airport Network. The move is a joint effort of the FAA, CNN and the American Assn. of Airport Executives.
The Pentagon's new leadership intends to seek incremental spending increases for defense science and technology programs that combined would receive about $8 billion a year versus the current $7 billion plus, backed by a special fund to speed the transition of new weapons technologies into the field.
General Dynamics Corp. last week completed its acquisition of Galaxy Aerospace Co., which had been a joint venture of Hyatt Corp. and Israel Aircraft Industries Ltd. The purchase price was $353 million in cash, but the former owners could receive up to an additional $315 million through 2006, depending on whether certain revenue targets are met. Galaxy, which is now part of GD's Aerospace group, is expected to generate revenues of $635 million in 2002.
Malaysia Airlines (MAS) has scrapped plans to spin off its domestic operations. The idea was broached last year because the carrier's domestic service suffers from poor yields. The government has not approved a fare hike since 1992. MAS has said it needs at least a 50% average jump to make the routes profitable. MAS' new managing director, Mohd Nor Mohd Yusof, said losses on domestic services contributed significantly to the airline's $350-million loss in fiscal 2000. He hinted that significant domestic fare hikes are coming, but they will need cabinet approval.
Workers at Boeing's military aircraft and missile systems facilities in St. Louis approved a new, three-year labor contract June 3, averting an impending strike. The International Assn. of Machinists and Aerospace Workers (IAM), which represents about 3,200 employees at the factory, and Boeing hammered out a pact that provides job protection in exchange for increased productivity. Boeing has agreed not to lay off workers unless a ``catastrophic'' change occurs, such as the loss of a major contract.
As the Bush Administration proceeds with its reviews of U.S. defense needs, it would do well to remember the defense industry serves two masters: the government and shareholders. For decades, defense contractors have been widely viewed as part of a vast military-industrial complex, as though they were captives of the Pentagon. And to a large extent, that's how they were managed. But last summer's abandonment of aerospace/defense stocks by Wall Street was a poignant reminder that defense contractors will enjoy no free ride just because they are patriots.
Air Transport Assn. member airlines have added to their contracts of carriage 12 customer service measures that they have been observing voluntarily during the past year. The change makes the carriers legally liable for providing the measures, which were recommended initially by Transportation Dept. Inspector General Kenneth Mead. Announcing the initiative June 7 at a press conference in Washington, airline CEOs and House Transportation Committee Republican leaders said consumer-protection legislation isn't needed.
John E. (Ted) Gordon has been named vice president-Washington operations and Perri A. Hite corporate secretary of Alliant Techsystems of Minneapolis. Gordon succeeds William R. Martin, who is retiring. Gordon was a corporate vice president of Litton Industries and head of its Washington office. Hite was assistant corporate secretary.
Continental Airlines took delivery of the first of 10 Boeing 737-900s on May 31. The twin-engine jet is among 36 new Boeing aircraft the airline plans to acquire this year. According to the company, Boeing also will deliver 15 737-800s to Continental. The -900 is configured with 149 coach and 18 first-class seats, and features a fourth lavatory in the middle of the cabin. Plans call for Continental to install a fourth lavatory in 59 737-800s in its fleet, and reconfigure the cabin to seat 18 in first class and 132 in coach.
William J. Wallach (see photos) has been promoted to president/general manager from vice president-marketing and sales, Carl E. Zlock to executive vice president from vice president-finance and administration, Bradford S. Walters to vice president-operations from director of program management and Donald R. Cohee to vice president from director of research and technology, all at ILC Dover Inc., Frederica, Del.
May traffic for nine U.S. major airlines fell 2% compared to volume for May of last year, but the nation's regional carriers showed solid improvements in spite of the sluggish economy. Seating capacity for the majors increased by 3%.
U.K. aerospace distribution service company Umeco is broadening its reach in North America with the $22-million acquisition of Fort Worth-based Abscoa. The inventory management and fastener distribution company, with a staff of 100 at three U.S. sites, is to be merged with Umeco's subsidiary Pattonair International. Pretax profits at Umeco rose 38% to $15.8 million in the fiscal year ending Mar. 31, on the back of a 72% increase in sales.
Another shoe may be about to drop in NASA's human spaceflight program, which has been scrambling to explicate how it plans to do the work it still has to do on the International Space Station with the funds it has available. Top managers huddled with White House Office of Management and Budget types at the Johnson Space Center last week to go over the books, and another meeting is set this week here.
Swissair Group Chairman/CEO Mario Corti has unveiled a recovery plan designed to shrink overhead and lower the troubled airline's direct operating costs. The far-reaching cost-saving plan, called Change 2001, will involve job cuts, although senior Swissair executives declined to specify how many positions would be eliminated. Less than a month from a self-imposed deadline for ending financial support to ailing French affiliates, it is still unclear if new investors can be found in time to save Air Liberte and AOM (AW&ST May 28, p. 40).
The Coalition of Airline Pilots Assns. gives the FAA ``thumbs up'' for announcing it will strictly enforce a 16-hr. flight/duty-time rule for pilots--but a ``thumbs down'' on the 1985 rule's relevancy to today's operations. The 26,000-member coalition says there is a critical need to first review and revise the regulations before enforcing them and is asking Congress to investigate why the FAA had not stipulated new rules. CAPA claims the 16-hr.
As the Bush Administration labors for a long-haul Asia policy, leading strategists are urging Washington to stiffen regional security bonds, fortify Japanese defense and cultivate India as an eventual strategic partner to offset Chinese regional dominance.
Boeing says it is prepared to make an immense investment in the nation's aging air traffic control system, boosting capacity and fundamentally changing the way pilots and controllers interact. But despite an implied rush to get started, officials are not yet ready to say when they'll begin building the program's backbone, a satellite-based communications, navigation and surveillance network, or how much it will cost.
