News Articles March 22, 2010

News & Events

News
Events

March 22, 2010

Posted on Mar. 22, 2010

Quick summary of today’s news articles (Full text of articles follows):
- Thanks to the extra hour of daylight, the crew finished up the final strip of the new six inch thick, 75’ x 5,000’ runway at Alva Regional Airport. More concrete would be laid later connecting the old runway in four places to the new.
- A rolling industrial truck killed a man who was repairing the truck at Spirit AeroSystems Friday morning, according to authorities.
- The U.S. Court of Appeals has affirmed an arbitrator’s decision that said former Boeing workers in Oklahoma are entitled to early retirement benefits. About 1,200 employees worked at the plants in Tulsa and McAlester, Okla., which were sold to Onex Corp. in 2005, with the plant in Wichita, and became Spirit AeroSystems.
- Associated Press article about Oklahoma City being ranked as one of the top four large cities in the U.S. that has best weathered the recession, even mentioning the state’s aerospace maintenance industry.
- Lawton will be the focus of the state’s emerging unmanned aerial vehicle industry when the second Oklahoma Unmanned Aerial Systems Summit takes place at Great Plains Technology Center on Tuesday.
- Op-ed from The Oklahoman lauding the many accomplishments of the Oklahoma Center for the Advancement of Science and Technology (OCAST).
- Russia’s government-owned aerospace company United Aircraft of Moscow will announce Monday it is competing against Boeing for the $40 billion refueling-tanker contract, a Los Angeles attorney for the company said Friday.
- Boeing Co. will speed up production plans for its 777 and 747 models in anticipation of greater demand from commercial airlines.
- Washington Post editorial encouraging commercial air carriers to pay for their own retro-fitting as part of the implementation process for the Next Generation Air Transportation System, also known as NextGen.
STATE AIRPORTS

Miles of concrete
By Helen Barrett
Alva Review-Courier
3/20/2010

Like a behemoth from the past, the big yellow machine straddled the 25-foot
trough. Oval tracks at the end of the legs rumbled and screeched as they
inched their way down the mile-long path, leveling the gray concrete
beneath spewing beneath the enormous white machine in front.

Behind the mechanical creature, men with squeegees smoothed the material
followed by a long roller which provided a uniform surface.

Trucks ferried the warm, wet concrete from the batch plant at the far end
of the strip to the conveyor belt. In less than 30 seconds, they emptied
their loads, and headed back to the plant.

Thanks to the extra hour of daylight, the crew finished up the final strip
of the new six inch thick, 75’ x 5,000’ runway at Alva Regional Airport.
More concrete would be laid later connecting the old runway in four places
to the new.

“We started this runway project in September and it’s been raining ever
since,” Airport Manager Gerald Benson told the Alva City Council. “The
first time they took the motor grader down the runway, they buried it.“
Benson said the dirt work was completed in December. The dirt was
stabilized by mixing fly ash with it. Then it was packed until it becomes
nearly as hard as rock. Once the dirt was properly packed, the crew trimmed
it and let it set for a couple of months. “They started paving on March 4,“
Benson said. The crew did the outer 25’ strips first, then had to let that
cure for seven days before coming back to do the center portion.

“The dirt contractor will be back on-site about March 22 to edge the grass
at the side of the runway,” Benson said. “The electrical contractor will
start by the end of this month. It should take about 30 days.“

Benson said they hoped to have the new lights installed, striping and
painting finished by the end of April. At that point, the old runway will
be closed temporarily while the connecting strip is added at the north end
of the runway. Planes will take off and land on the new runway during that
time.

Completion of the project is expected by mid-June, weather permitting.

“We’ve had a long delay,” Benson said. “It’s been the craziest winter I’ve
ever seen.“

When construction is completed, the existing runway will become a second
taxiway.

Benson said he hopes the new AWOS (automated weather observing system) will
be installed next week. Some of the equipment has already begun arriving at
the airport. “It’s going to be a great asset to the City of Alva when we
get it finished,” Benson said.

Plans for the new runway began more than a decade ago. Federal funds were
not released for the project until after the land acquisition. The project
has been funded by grants from both the Federal Aviation Authority and the
Oklahoma Aeronautics Commission with a match by the City of Alva.

OK AEROSPACE INDUSTRY

Pryor man killed in Tulsa industrial truck accident
Matt Barnard, staff writer
Tulsa World
3/20/2010

A rolling industrial truck killed a man who was repairing the truck at a
Tulsa aerospace facility Friday morning, according to authorities.

The man was later identified as Roger Brooner, 58, of Pryor.

Brooner was working on the truck at Spirit AeroSystems, 3330 N. Mingo Road,
when it rolled onto him about 9:20 a.m., Tulsa Fire Department spokesman
Bill French said.

No one witnessed the accident, but it appeared that the truck dragged the
man in a circle through the parking lot before crashing into a car, pushing
it into the side of a building, French said.

He died at the scene, according to EMSA spokeswoman Tina Wells.

A worker told authorities that trucks similar to the one involved in the
accident are “notorious” for shifting out of gear, French said.

The man had been working on the truck Thursday and again Friday morning.

Spirit AeroSystems builds and repairs aircraft parts, according to the
company’s Web site.

Court rules for ex-Boeing workers
BY MOLLY McMILLIN
The Wichita Eagle
3/20/2010

The U.S. Court of Appeals has affirmed an arbitrator’s decision that said
former Boeing workers in Oklahoma are entitled to early retirement
benefits.

About 1,200 employees worked at the plants in Tulsa and McAlester, Okla.,
which were sold to Onex Corp. in 2005, with the plant in Wichita, and
became Spirit AeroSystems.

Hourly workers represented by the United Auto Workers had a labor agreement
that stated they could retire at age 55 with a pension and lifetime health
insurance paid by Boeing if they were laid off at age 50 or older and had
10 years of service with the company.

Boeing, however, argued that the obligation ended when it sold the plants,
saying the workers were terminated “as a result of divestiture.” It treated
the workers who were not hired by Spirit as having resigned.

The ruling might help a similar case in Wichita, said Society of
Professional Engineering Employees in Aerospace Midwest director Bob
Brewer.

“We don’t know to what extent yet,” Brewer said.

The two cases “almost mirror” each other, Brewer said, although the Wichita
case is going through the court system, not arbitration.

SPEEA filed a lawsuit in 2005, which the Machinists union joined.

“It’s absolutely a positive sign,” Brewer said. “We definitely know people
were wronged during the divestiture, and that’s why we have the lawsuit in
place.“

The affirmation by the Court of Appeals for the Seventh Circuit takes
Boeing to task.

“One imagines that Boeing’s concern in making these desperate arguments is
with having to pay lifetime health benefits to early retirees,” the finding
said.

It also noted how the commitment in the UAW’s agreements in contracts at
Detroit automakers helped drive them to the brink of bankruptcy.

“But Boeing is stuck with the commitments that it negotiated with the union
unless it can renegotiate them,” it said. “It was not required to agree to
provide lifetime benefits to workers represented by the UAW but it agreed
to do so and must live with its decision.“

The four cities that best weathered the recession
By CHRISTOPHER S. RUGABER
The Associated Press
3/10/2010

WASHINGTON—Call them the Final Four: The four large cities that have
made it through the Great Recession with the smallest increases in
unemployment.

Minneapolis, Buffalo, Oklahoma City and Rochester, N.Y., don’t have much
else in common. But a government report shows they’ve had the smallest
increases in joblessness over the past two years among cities with at least
1 million people.

None of the four relies on heavy manufacturing industries, such as autos or
steel, which have been hit hard by the downturn. And all have avoided the
extremes of the housing boom and bust that devastated much of California,
Florida and Nevada.

Minneapolis was the city with the smallest rise in unemployment among the
nation’s 49 largest metro areas, according to Labor Department data
released Friday. Its jobless rate rose by only 2.8 percentage points from
January 2008, a month after the recession began, through January 2010. Its
rate reached 7.7 percent that month.

Nationwide, the rate rose by nearly 5 points during those two years, to 9.7
percent in January, up from 5 percent. Employers cut 8.4 million jobs, the
most in any downturn since the 1930s.

Minneapolis benefited from a medical equipment industry that’s fared better
than other manufacturers during the downturn, according to Jeet Dutta, a
senior economist at Moody’s Economy.com. The city’s major employers include
Medtronic Inc. and Boston Scientific Corp. Health care is one of the few
sectors of the economy that have added jobs during the downturn.

Oklahoma City’s January unemployment rate of 6.7 percent, meanwhile, is the
lowest among large metro areas, the Labor Department said. It’s risen only
2.9 percentage points in the past two years. About a fifth of the city’s
workers are employed by state or local government, said Russell Evans, a
regional economist at Oklahoma State University. That includes the
employees of 29 Native American tribal governments in the region, most of
which have offices in Oklahoma City, the state’s capital.

Those workers benefited from federal stimulus money that helped plug holes
in the state government’s budget and avoid layoffs, he said.

In addition, booming oil and gas prices leading up to the recession and a
growing aerospace maintenance industry led to strong income gains for the
region’s workers even as the recession took hold in other parts of the
country, Evans said.

“Consumers in Oklahoma were a little slower than in the rest of the nation
to tighten their wallets,” he said.

Buffalo and Rochester, N.Y., by contrast, didn’t suffer so much in the
recession partly because their economies had already been struggling
beforehand. Buffalo’s unemployment rate was 9.2 percent in January. That’s
high but below the national rate of 9.7 percent. It rose only 2.9
percentage points during the recession.

Buffalo has diversified out of heavy manufacturing industries, like steel,
that used to underpin much of its economy and moved into growing areas like
health care, economists said. And last year, in the depths of the downturn,
Canadian shoppers flooded into the city as the U.S. dollar weakened against
the Canadian dollar.

“That’s been a boon to retailers,” said Marisa DiNatale, a director at
Moody’s Economy.com.

Unemployment grew 3 percentage points in Rochester, N.Y., reaching 8.7
percent in January. The city has also diversified, said Richard Dietz,
senior economist at the New York Federal Reserve. Its largest employer is
now the University of Rochester. The university took over from Eastman
Kodak, which is based in the city but has shrunk.

Overall, unemployment rose in nearly all 372 metro areas in January, the
Labor Department said Friday, because the weak recovery hasn’t spurred much
hiring.

The figures aren’t seasonally adjusted. And January is traditionally a grim
month for employment as retail workers and other seasonal employees lose
their jobs.

Among cities of all sizes, the lowest unemployment rates were in Fargo,
N.D. and Bismarck N.D. They reported rates of 4.8 percent and 4.9 percent,
respectively. Higher prices for agricultural commodities have bolstered the
upper Plains states throughout the recession.

UNMANNED AERIAL SYSTEMS

Unmanned flying machine enthusiasts to converge on city
Lawton Constitution
3/21/2010

Lawton will be the focus of the state’s emerging unmanned aerial vehicle
industry Tuesday.

The second Oklahoma Unmanned Aerial Systems Summit at Great Plains
Technology Center will draw interested parties from across the state for
presentations, an address by Lt. Gov. Jari Askins and a tour of a test
center at Fort Sill.

The entire industry is growing, said James Grimsley, chairman of the
Oklahoma Unmanned Systems Alliance, which is host for the summit. Unmanned
systems could be the most dynamic sector of aviation over the next decade
or so, and Oklahoma needs to make sure it’s positioned to take advantage of
the interest.

Much of the interest is in military applications; news accounts have been
filled with accounts of the Predator drone hunting down the Taliban and the
Global Hawk providing surveillance in Afghanistan, Iraq and even in Haiti.

For example, Grimsley’s own company, Design Intelligence Inc., is working
on research and development for a vehicle for the Air Force. Grimsley said
the demand for unmanned vehicles is coming from military personnel in the
field who are looking for better ways to accomplish their missions.

And technology is finally maturing that will allow designers to create
unmanned vehicles that will fill any number of niches. Grimsley’s company
is dealing with a micro vehicle, one that could be flown inside a
gymnasium. And the Marine Corps in interested in an unmanned aerial vehicle
that an deliver cargo.

TECHNOLOGY

OCAST positioned to bring innovation
POINT OF VIEW: Making progress in difficult times
BY RICHARD A. BENDIS
The Oklahoman
3/21/2010

State research and development budgets were challenged last year by an
international recession but as I look across the nation, a handful of
innovation-based state agencies continue to make progress even in difficult
times. The Oklahoma Center for the Advancement of Science and Technology is
one of those.

In my role as president and CEO of Innovation America, a national
organization with a mission to accelerate the growth of the entrepreneurial
innovation economy in America, I look for best practice technology-based
economic development agencies that are “game changers” in their respective
states. OCAST is one of the best examples I have seen for carrying out a
state’s initiative to develop its innovation economy.

OCAST has a robust pipeline of programs that includes applied research,
health research, small-business innovation research (SBIR), research and
development intern partnerships, nanotechnology, plant research,
manufacturing excellence and technology commercialization. This pipeline is
vital to the infrastructure that can help transform a state’s economy.

So, what are the attributes of a nationally recognized innovation-based
economic development model? My answer is one that has a sustained history
of success; bipartisan support from the governor and legislature;
involvement from the private sector; a focus on return on investment; and
accountability to the legislature, taxpayers and administration.

Through its programs and services, OCAST helps build Oklahoma’s research
and innovation capacity that will advance society, invent products,
diversify rural and urban economies, and discover medical breakthroughs
that will save millions of lives and improve our quality of life.

By any measure, OCAST is competitive with the best innovation-based models.
Its rigorous peer review process guarantees the best science and technology
projects are funded. OCAST has consistently delivered value in terms of
return on taxpayer-invested dollars, overall economic impact, jobs created,
and increase in per capita income.
In 2006 and 2009, two major national innovation conferences were held in
Oklahoma – the State Science and Technology Institute and the National
Association of Seed and Venture Funds. As a founding board member of both
of these associations, I can say there is no doubt that the national
reputation of OCAST and its nationally acclaimed strategic partner, i2E,
were a driving force in the decision to hold these conferences in Oklahoma
City.

Not only is OCAST recognized nationally as world-class model for helping
Oklahoma diversify and grow its economy and create high-skill and high-wage
jobs, but also Oklahoma is a recognized leader in state policies that
provide the enabling foundation for a sustainable innovation ecosystem. In
addition to OCAST, Oklahoma created EDGE (Economic Development Generating
Excellence) – a bold state-funded research endowment fund. Currently at
$150 million, the goal is to grow the fund to $1 billion to help transform
the state’s knowledge infrastructure.

OCAST is uniquely positioned to help drive Oklahoma’s continuing journey
into science and technology innovations. My message is to embrace
innovation and support the time-tested strategies developed at OCAST -
future generations of Oklahomans will be the beneficiaries.

Bendis is founding president and CEO of Philadelphia-based Innovation
America

TANKER CONTROVERSY

’Bizarre’ tanker twist: Russians will bid against Boeing for Air Force
contract
By Rami Grunbaum, Deputy Business Editor
Seattle Times
3/20/2010

Here’s the latest twist in the Air Force tanker saga: The Russians are
coming.

Russia’s government-owned aerospace company will announce Monday it is
competing against Boeing for the $40 billion refueling-tanker contract, a
Los Angeles attorney for the company said Friday.

United Aircraft of Moscow plans to unveil a U.S. partner and offer a
modified version of its Ilyushin Il-96 wide-body plane, said John Kirkland,
a Los Angeles lawyer representing the group.

The still-unidentified partner, “a U.S. public company and existing defense
contractor,” would assemble the planes in the U.S., he said. The Russian
interest in the tanker bid was first reported Friday by The Wall Street
Journal.

United Aircraft was formed under the authority of then-President Vladimir
Putin in 2006 to combine the most famous names in Russian aviation: Sukhoi,
Tupolev, Ilyushin, MiG.

Kirkland acknowledged it faces “significant hurdles … there are obvious
security issues, there are sanctions and restrictions on buying things from
Russia.“

He insisted, however, that “the Il-96 meets every single one of the final
RFP (request for proposal) requirements, and it comes in at a lower price
(than Boeing), so if it’s a fair competition, we win.“

One leading U.S. aerospace analyst thinks otherwise.

“What a completely bizarre idea,” said Richard Aboulafia of the Teal Group.

“There would be enormous political, technical and performance barriers. It
will not happen.“

For one thing, Aboulafia said, “The Il-96’s operating economics have more
in common with the KC-135’s than with the Airbus and Boeing jets scheduled
to replace the KC-135s.“

Kirkland said that might be true of the current Ilyushin Il-96, which uses
four engines. But United Aircraft will pitch a tanker using two modern,
fuel-efficient Western engines, he said.

“That’s a great idea, if the Air Force enjoys taking on much more risk and
if they delay the program a few years,” Aboulafia responded.

“Just when I thought (the tanker competition) couldn’t get any dumber this
comes along,” he added.

On another front in the tanker contest, European manufacturer EADS said
Friday it was asking the Pentagon for a 90-day extension of the bidding
deadline so it can decide whether to proceed without its partner Northrop
Grumman.

Northrop was scheduled to assemble EADS’s Airbus A330 tankers in a new
plant in Mobile, Ala. But it dropped out March 8, saying the contract
requirements tilted in Boeing’s favor by emphasizing price over additional
capabilities.

Kirkland said that “if Airbus doesn’t bid, we’ll step into their shoes” and
consider using the Mobile, Ala., site.

The Ilyushin Il-96 first flew in 1988 as the Soviet Union began to crumble.
Only 20 were sold before the passenger version was discontinued amid
economic chaos at home and little interest abroad. Russian civilian
aircraft, to the extent they are known in the West, are often considered
lumbering and unreliable.

But Kirkland said they are sturdy, noting they have ferried U.S. troops
into Afghanistan. United Aircraft makes the refueling tanker for Russia’s
air forces, based on the Ilyushin Il-76 airliner, and would convert its
newer airliner in similar fashion, he said.

He attributed the mechanical problems of Russian airliners to lack of
access to proper maintenance and training – something that could be
corrected if United Aircraft can establish a maintenance, repair and
overhaul base (MRO) in the U.S., he said.

“The whole economic incentive to do this transaction is we will have an MRO
facility in the U.S., to allow us to service Russian airplanes to eliminate
the maintenance problems people experience with Russian airplanes.“

That in turn would open the door for United Aircraft to market its Antonov
AN148 regional jet, for up to about 85 passengers, in the U.S. market.

“Its Putin’s favorite plane,” Kirkland said, adding that because of the
AN148’s low price, “Everyone should want it, they’re just worried about the
maintenance.“

He said his Russian clients told him that when President Obama met Putin,
the Russian president specifically asked about United Aircraft’s potential
bid on the tanker.

“Obama gave him his personal assurance they would be given a fair shot at
this like everyone else,” he said.

U.S. AEROAPACE INDUSTRY

Boeing accelerates production of 747s, 777s ahead of demand
By AP Wire Services
3/20/2010

NEW YORK (AP) – Boeing Co. will speed up production plans for its 777 and
747 models in anticipation of greater demand from commercial airlines.

Both are wide-body planes capable of carrying more than 300 passengers and
flying longer routes. Several Asian airlines have ordered the planes, which
are also more fuel-efficient than other aircraft models.

Asian and Latin American carriers have led the way for a surprisingly
strong recovery, while improvement at U.S. carriers has lagged. The
industry’s leading trade group, the International Air Transport
Association, cut its 2010 loss forecast in half for global airlines to $2.8
billion. The group also lowered its 2009 loss estimate to $9.4 billion from
$11 billion because of the year-end rally.

Many airlines across the globe reported losses in 2009 as travel demand
slumped. Boeing, the world’s second-largest aircraft maker behind Airbus,
said Friday that it sees the airline industry recovering this year,
followed by a return to profitability in 2011. That should lead to demand
for new aircraft in 2012 and beyond, the company said.

The company also said the speedup was necessary because of a
“conservatively managed approach to production.“

Boeing, based in Chicago, will increase production of its 777 in mid-2011
to seven airplanes per month from five. The ramp-up was originally planned
for early 2012. The 777 seats more than 300 people.

The 747-8, the newest version of Boeing’s iconic jumbo jet, has been
plagued by production problems. It took its first flight last month after
being delayed for more than a year.

The passenger version, which carries more than 400 people, is scheduled to
be delivered in the second quarter of 2011.

Production will increase to two airplanes per month from 1.5 in mid-2012.
The ramp-up had been scheduled for mid-2013.

Boeing lists 76 orders for the 747-8 freighter and 32 for the passenger
version, with the vast majority from international customers.

Boeing said it doesn’t think the new production schedule will have a
material impact on earnings this year.

NEXTGEN

The future of flight
Editorial
The Washington Post
3/21/2010

The Federal government is spending billions to equip the nation’s airports
with the Next Generation Air Transportation System, known as NextGen. This
satellite-based technology will make air travel faster, safer and greener.
Yet some airlines are balking at having to pay for their end of the
upgrade. But they will benefit from the implementation of NextGen and
should ante up.

The global positioning system in your car—even your Wii—is infinitely
more advanced than the 1950s-era radar system used to guide planes in and
out of the nation’s airports. Those radar blips make it impossible for
pilots or air traffic controllers to know the exact location of aircraft –
either in the air or on the tarmac. This requires planes to fly at safe
distances and take indirect routes to avoid collisions. Satellite equipment
in cockpits and control towers that will link up with the NextGen system
will give the precise locations of aircraft. The result can be more
takeoffs and landings and more direct routes. The reduced congestion, fuel
use and pollution will eventually improve air carrier profitability. But
this isn’t cheap—between $25 billion and $30 billion, according to the
Federal Aviation Administration, including an industry share.

New aircraft will come with NextGen equipment, but air carriers are
resisting coming up with the billions of dollars it will cost to retrofit
the existing fleet. The FAA is expected to require the equipment in most
controlled airspace by 2020. The signal ground stations will be in place by
2013. Transportation Secretary Ray LaHood told an aviation industry
conference this month that the White House was looking into the demands for
financial assistance. He offered nothing more than an assurance that the
administration wants to be helpful . Southwest Airlines was the first
carrier, in 2007, to commit its own money to retrofit its fleet with the
advanced navigation system. More than 60 percent of its aircraft will be
NextGen-ready within the next few weeks. It’s time for others to get on
board.

News Articles March 22, 2010

Posted on Mar. 22, 2010