News Articles March 23, 2010

• March 23, 2010
  
  

  Posted on Mar. 23, 2010

  Quick summary of today’s news articles (Full text of articles follows):

  • Two articles regarding the passage of the $34.5 billion FAA Reauthorization Bill yesterday by the U.S. Senate that includes, among other things, $8.1 billion for the Airport Improvement Program and an increase in the avgas tax to 36 cents from 22 cents.
  • Increasing deliveries of Phenom very light and light jets were not enough to offset a sharp drop in commercial aircraft deliveries at Embraer, driving the Brazilian aircraft maker’s full year profit down 36% to $248.5 million.
  • The Transportation Security Administration is listening to the general aviation community as it formulates its new security plan for the general aviation community, a source close to the program tells Aviation Week, who credits TSA Associate Administrator John P. Sammon as a prime reason why the administration is radically scaling back its original Large Aircraft Security Program.

  FAA REAUTHORIZATION

  Bill aims to speed up air traffic system overhaul
  By JOAN LOWY
  The Associated Press
  3/23/2010

  WASHINGTON – Transforming the nation’s air traffic system by replacing
  World War II-era radar with 21st century GPS technology would be
  accelerated under a bill approved Monday by the Senate.

  The $34.5 billion bill funds the Federal Aviation Administration through
  Sept. 30, 2011. It also addresses a series of safety concerns raised by the
  crash of a regional airliner last year near Buffalo, N.Y., that killed 50
  people.

  The centerpiece of the bill calls for key elements of the FAA’s NextGen
  program to be in place at the busiest American airports by 2014. The system
  won’t be fully in place for noncommercial aircraft until after 2020.

  The nation’s antiquated air traffic control system is a major source of
  airline delays.

  The new system is projected to cost the FAA as much as $22 billion through
  2025. Airlines would have to spend as much as $20 billion more to install
  equipment in their planes.

  In the long term, the system is expected to save airlines money by allowing
  planes in crowded air corridors to take more direct routes and fly closer
  to each other without safety risks, reducing delays, saving energy and
  cutting down on pollution, including greenhouse gas emissions. Pilots will
  have real time information on the location of other aircraft.

  The system is crucial to handling the expected growth in air traffic from
  about 700 million passengers in 2009 to the more than 1 billion annually by
  2023.

  The United States lags behind other nations in making the transition to the
  new technology, said Sen. Jay Rockefeller, D-W.Va., a key sponsor of the
  bill. Even Mongolia, he said, is further along.

  “It’s embarrassing,” said Rockefeller, the chairman of the Senate Commerce,
  Science and Transportation Committee.

  The bill, passed by a 93-0 vote, contains a provision authorizing the FAA
  to make grants to airlines to help cover equipment costs. Some airline
  executives have said that as much as they want the new system, they can’t
  afford to put it in their planes.

  Airlines have suffered repeated shocks over the past decade, including the
  Sept. 11 terror attacks, the SARS virus, volatile oil prices and the
  current economic downturn. They have shed more than 158,000 full-time jobs
  since employment peaked in 2001 and lost an estimated $30 billion to $60
  billion in recent years.

  Sponsors of the bill labored for a week to reach compromises with senators
  over amendments. Moments before passage of the bill, the Senate accepted
  without opposition a Rockefeller amendment containing some of those
  compromises.

  Rockefeller’s staff declined to release a copy of the amendment. However, a
  list obtained by The Associated Press showed more than a dozen provisions
  on issues ranging from flights over the Grand Canyon to air quality in
  airline cabins.

  Among the safety measures in the bill is a requirement that FAA update how
  many hours airlines can require pilots to work and how much rest they must
  get between work days. Airlines would be required to have remedial training
  programs for pilots who fail skills tests or make other errors, and
  programs that use electronic data recorded during flights to spot safety
  trends before they cause an accident.

  The bill also:

  -Raises the minimum number of hours of flying experience an airline
  co-pilot must have from 250 hours to 800.

  -Bans pilots from using personal electronic devices in the cockpit, a
  response to an incident last October in which pilots of a Northwest
  Airlines plane flew more than 100 miles past their destination of
  Minneapolis while they were working on their laptops.

  -Doubles to twice a year the frequency of FAA inspections of foreign
  aircraft repair and maintenance stations that work on U.S. planes.

  -Contains a “passenger bill of rights” that would require airlines to
  provide food, water and other amenities to passengers kept waiting on
  tarmacs and give them the opportunity to deplane after a three-hour wait.

  That would give legal status to Transportation Department rules adopted in
  December that also limited tarmac waits to three hours and fine airlines up
  to $27,500 per passenger for violations.

  -Authorizes $8 billion over two years for airport improvement projects,
  which supporters said would generate 150,000 jobs.

  The House passed a three-year FAA funding bill last year that includes
  several contentious labor provisions not part of the Senate bill. The House
  bill would also raise the passenger facility charge, which goes to airports
  to pay for improvements, from $4.50 per ticket to $7. Differences between
  the two bills remain to be worked out.

  Associated Press writer Jim Abrams contributed to this report.

  Senate Passes FAA Reauthorization Bill
  Long-Stalled Legislation Finally Passes Significant Legislative Hurdle
  Aero News Network
  3/23/2010

  The U.S. Senate on Monday finally passed the $34.5 billion FAA
  Reauthorization bill with a unanimous 93-0 vote. The bill funds the FAA
  through September 2011, and establishes clear deadlines for the adoption of
  existing NextGen navigation and surveillance technology. For example, the
  bill requires the development of Required Navigation Performance (RNP) and
  Area Navigation (RNAV) procedures at the busiest 35 airports by 2014, and
  for the entire National Airspace System (NAS) by 2018.

  The bill directs the FAA to accelerate planned timelines for integrating
  Automatic Dependent Surveillance-Broadcast (ADS-B) technology into the NAS,
  requiring the use of “ADS-B Out” on all aircraft by 2015 and the use of
  “ADS-B In” on all aircraft by 2018, creates an “Air Traffic Control
  Modernization Oversight Board” to provide better oversight of FAA’s
  modernization programs, and establishes a “Chief NextGen Officer” position
  at FAA to oversee implementation of all NextGen programs, and provide
  greater accountability over the modernization process.

  On the issue of airline safety, the bill mandates that all carriers adopt
  Aviation Safety Action Programs (ASAP), Flight Operational Quality
  Assurance (FOQA) programs and Line Operations Safety Audit (LOSA) programs.
  It authorizing $8.1 billion to support airport infrastructure through the
  Airport Improvement Program (AIP), requires airlines to examine a pilot’s
  entire flight history, including previous tests of flying skills, before
  the pilot is hired and requires air carriers to implement a formal remedial
  training program for underperforming pilots.

  The FAA will have to re-evaluate pilot training and qualification
  regulations to ensure pilots have the proper skills and experience. Should
  the FAA fail to do this by the end of 2011, all air carrier pilots will be
  required to have logged at least 1,500 flight hours before flying an
  aircraft with paying customers aboard. The FAA is also required to revise
  the flight and duty time regulations for commercial air carrier pilots and
  issue the final rule within one year to address pilot fatigue.

  The House and Senate funding measures mirror previous modernization
  proposals in that they increase the general aviation fuel tax from 22 to 36
  cents per-gallon to help fund system transformation.

  “After so many years of delay, this bill takes significant steps to improve
  safety and modernize our air transportation system, while supporting jobs
  and stimulating our economy. I am pleased the Senate moved quickly to
  approve this critically important legislation,” said Senate Commerce,
  Science, and Transportation Committee Chair John D. Rockefeller IV.

  Senator Kay Bailey Hutchison, the committee’s ranking Republican, agreed.
  “This critical legislation is long overdue,” she said. For too many years,
  our nation has put off the daunting task of modernizing our country’s
  antiquated air traffic control system. Modernization of the country’s air
  traffic is crucial to our economic growth and will move America closer to a
  more efficient and effective use of our national airspace. This measure
  will improve the safety of air travel for millions of Americans, and
  represents an important commitment to the future of aviation in this
  country.“

  Reaction came quickly from several of the nation’s aviation associations.

  “NBAA and other general aviation associations have been strong advocates
  for proposals to modernize the nation’s aviation system, and the action
  taken by Senate leaders today marks a good step in that direction,” said
  NBAA President and CEO Ed Bolen.

  “Importantly, the legislation builds on the fuel tax to help pay for
  modernization, instead of resorting to user fees,” Bolen said. “This
  approach is the one uniformly supported by general aviation to help pay for
  ‘NextGen’.“

  Bolen noted that throughout the FAA reauthorization process, NBAA and other
  general aviation organizations have pointed out that unlike user fees, fuel
  taxes are paid at the pump, making them an efficient, effective, reliable
  and environmentally sensible way for those using general aviation aircraft
  to help pay for FAA funding and infrastructure investments.

  “We look forward to working with leaders in both the House and Senate
  toward passage of final legislation to modernize the nation’s aviation
  system so that it remains the world’s largest, best and safest,” Bolen
  concluded.

  GAMA issued the following statement upon passage of the bill late Monday
  afternoon:

  “We are extremely pleased with the passage of this bill which takes a
  number of critical steps needed for the acceleration of NextGen,” said
  GAMA’s President and CEO, Pete Bunce. “We commend Senators Rockefeller
  (D-WV), Hutchison (R-TX), Dorgan (D-ND), DeMint (R-SC), Baucus (D-MT) and
  Grassley (R-IA) for their leadership and dedicated work in reauthorizing
  and improving FAA programs. We look forward to working with them and the
  aviation leadership in the House to send a final FAA reauthorization bill
  to President Obama for his signature.“

  National Air Transportation Association (NATA) President James K. Coyne
  praised the Senate for passing the FAA reauthorization.

  “I would like to congratulate the U.S. Senate for approving a two-year FAA
  reauthorization bill that is void of user fees and that provides a fair jet
  fuel tax increase,” stated Coyne. “The bill also includes several mandates
  for accelerated implementation of the Next Generation Air Transportation
  System (NextGen). While the House recently approved another extension
  through July 3, 2010, I am hopeful that a conference committee can be
  convened as quickly as possible to ensure that a comprehensive bill can
  finally be approved.“

  The bill does differ in some way from the House bill passed last year, and
  those differences will have to be reconciled in a House-Senate conference
  committee.

  VERY LIGHT JETS

  Embraer Deliveries, Profit Falling
  Aviation Week
  By Robert Wall
  3/23/2010

  Increasing deliveries of Phenom very light and light jets were not enough
  to offset a sharp drop in commercial aircraft deliveries at Embraer,
  driving the Brazilian aircraft maker’s full year profit down 36% to $248.5
  million.

  But there are signs of recovery that started to emerge at the end of the
  fourth quarter. Order intake therefore is expected to increase from the 23
  regional jets booked last year. The slow pace of new order intake last year
  also led to a reduction in Embraer’s order backlog by $3.3 billion to $16.6
  billion at the end of 2009.

  Embraer expects to deliver 227 aircraft this year, split between 90
  commercial jets and 137 business aircraft. The latter will comprise 120
  Phenoms and 17 larger types – the Legacy 600 and 650s and Lineage 1000s.

  Deliveries last year were two aircraft higher than expected, with 244
  business and regional jets going to customers. That total was dominated by
  93 of the lower margin Phenom 100 very light jets (only one Phenom 300
  light jet was handed over before year’s end). The highest number of
  regional jet deliveries was 62 Embraer 190s.

  Net sales should reach $5 billion, with commercial aviation accounting for
  $2.6 billion of the total, business aviation for $1.1 billion, defense for
  $650 million, and services and other work for the remaining $650 million.

  The 2010 guidance for earnings before interest and taxes (EBIT) is $300
  million, a further decline. EBIT in 2009 was $335.6 million and at $537
  million in 2008.

  Fourth-quarter results came in ahead of expectations, says analyst JP
  Morgan, which notes sales were 7% above estimates, “mainly on bizjet
  strength.” The analyst also points to optimism about improving conditions
  in 2010. But JP Morgan worries about the potential for a multiyear decline
  in the commercial aircraft business. “We are not convinced Embraer will see
  many new orders without the substitution of a more fuel-efficient engine to
  match those of competitors,” JP Morgan says.

  AVIATION SECURITY

  TSA Developing More Measured Approach to GA Security
  By Fred George
  Aviation Week
  3/23/2010

  The Transportation Security Administration is listening to the general
  aviation community as it formulates its new security plan for the general
  aviation community, a source close to the program tells Aviation Week, who
  credits TSA Associate Administrator John P. Sammon as a prime reason why
  the administration is radically scaling back its original Large Aircraft
  Security Program (LASP).

  When first proposed, the LASP applied to all aircraft over 12,500 lb max
  takeoff weight and generated vehement opposition from the general aviation
  community. But the new plan, the source said this weekend, is likely to
  exempt all general aviation aircraft smaller than mid-size jets as defined
  by maximum takeoff weight and / or fuel capacity.

  Pilots of such mid-size and larger GA aircraft would be required by TSA to
  go through a vetting process and earn “trusted pilot” credentials. Such
  credentialed pilots then solely would be responsible to determine who is
  allowed to board the aircraft, similar to how general aviation pilots
  screen passengers today.

  In a related proposal, TSA is looking into a credentialing process that
  would allow vetted pilots to have unfettered access to their aircraft on
  general aviation ramps at air carrier airports without the need for
  escorts. But that will require each air carrier airport authority to accept
  the TSA pilot vetting process, and that could prove difficult to
  accomplish.