News Articles March 26, 2010

• March 26, 2010
  
  

  Posted on Mar. 26, 2010

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

  • Valair Aviation, an AGC Aerospace & Defense Company, was awarded certification for the International Organization of Standards (ISO) 9001:2008.
  • State government is facing a catastrophe in the upcoming fiscal year unless more revenue can be found to offset an estimated shortfall of $850 million, a fiscal analyst said Thursday.
  • For the second time in two months, the state House of Representatives stopped churning out money bills for the upcoming fiscal year to complain Thursday most are left out of the budget-decision process.
  • On Thursday night, the U.S. Senate by unanimous consent completed work on three-month extension of the Federal Aviation Administration bill (H.R. 4853) pushing the expiration date to July 3.
  • The U.S. House was poised Wednesday to add language intended to strengthen airline pilot training standards to a bill to reauthorize operations of the Federal Aviation Administration and modernize the air traffic control system.
  • The security company Xe, formerly known as Blackwater, is shedding its aviation division, selling the unit for $200 million to AAR Corp.
  • An Air Force test pilot flew an A-10 Thunderbolt II jet aircraft at Eglin Air Force Base in Florida Thursday morning on a blend of biomass-derived and conventional JP-8 jet fuel. This was be the first flight of an aircraft powered solely on a biomass-derived jet fuel blend.
  • Cessna Aircraft Co. on Thursday issued 95 layoff notices to workers at its facility in Independence.
  • Production of the Eclipse EA-500 jet will resume, Eclipse Aerospace CEO Mason Holland promised Aviation Week March 23, but he declined to say exactly when that will occur or at what rate. Rather, he says, formal announcements about the very light jet program will be coming soon and should clarify things further.

  OK AEROSPACE INDUSTRY

  Valair Aviation Earns ISO 9001 Certification
  Quality Magazine
  3/24/2010

  OKLAHOMA CITY—Valair Aviation, an AGC Aerospace & Defense Company, was
  awarded certification for the International Organization of Standards (ISO)
  9001:2008.

  The ISO 9001 certification is awarded to those companies which meet global
  requirements set out to assure a systematic quality management system.

  “As an ISO certified company, we’ve demonstrated our commitment to quality
  management, to meeting requirements from both our customers and the
  regulators,” said Darryl Wilkerson, president of Valair. “From top to
  bottom, Valair employees continually strive to improve our performance and
  to enhance our customer’s satisfaction with our service.“

  By achieving ISO certification Valair Aviation has proven its maintenance,
  repair, and overhaul efficiencies and processes. The ISO certification
  allows Valair to pursue new business in marketplaces that require the ISO
  certification. The company’s firm commitment to quality and professionalism
  has solidified its superior reputation earned over the last 12 years.

  STATE BUDGET

  Changes needed to repair Oklahoma’s budget woes, expert says
  BY MICHAEL MCNUTT, Capitol Bureau
  The Oklahoman
  3/26/2010

  EDMOND – State government is facing a catastrophe in the upcoming fiscal
  year unless more revenue can be found to offset an estimated shortfall of
  $850 million, a fiscal analyst said Thursday.

  “We’ve been able to avoid the apocalypse up until now,” David Blatt,
  director of the Oklahoma Policy Institute, a state policy think tank, said.

  “If we’re going to avoid a sort of catastrophe, we need additional revenue
  to close that gap,” Blatt said after taking part in a panel discussion on
  the state’s budget sponsored by the University of Central Oklahoma Policy
  Institute.

  Lawmakers and Gov. Brad Henry, who proposed about $725 million in revenue
  enhancements in his budget, should tell residents ways to increase revenue
  or cut expenses, as well as the implications to state services and
  employees if no new sources of state revenue are found, Blatt said.

  Tax increases are unlikely, he said,

  In 1990, Oklahoma voters approved an initiative petition, State Question
  640, which requires a statewide vote on tax increases that fail to win
  approval of three-fourths of both houses of the Oklahoma Legislature.

  Blatt said his projections indicate the state will have a deficit of about
  $850 million after using $223.5 million from its savings account, the Rainy
  Day Fund, and the remaining $515 million of federal stimulus money.

  Rep. Ken Miller, chairman of the House Appropriations and Budget Committee,
  said members of the House fiscal staff estimates the state will have a hole
  “in the $500 million range.“

  Miller, who also took part in the discussion, said lawmakers have held
  various hearings and meetings on developing the budget for the 2011 fiscal
  year, which starts July 1.
  “I’m hopeful that we can make do with what we have and at this point I’m
  not prepared to recommend revenue enhancements or increases,” said Miller,
  R-Edmond.

  Paul Sund, a Henry spokesman, said the governor was aggressive in pushing
  and defending his revenue enhancement ideas in the opening weeks of this
  year’s session and has continued to make the case in negotiations.

  “The details of those negotiations are private and that certainly hinders
  any big public push, but we are continuing to press for initiatives that
  would reduce the impact of budget cuts on core services,” Sund said.

  Revenue this fiscal year is coming in about 26 percent below estimates,
  mainly because of energy prices and the recession.

  An $850 million shortfall would result in across-the-board cuts of 8 to 12
  percent for state agencies, Blatt said. If state lawmakers and the governor
  continue their practice of sparing education, public safety and health
  care, other agencies could be looking at 20 percent cuts, he said.

  The state still has $149 million in the Rainy Fund that could be used to
  offset the revenue shortfall.

  Sen. Clark Jolley, who also was on the panel, said he is optimistic that
  the next governor, regardless of political party affiliation, will be more
  aggressive in working to attract businesses to the state to lessen
  Oklahoma’s dependence on the oil and gas industry.

  Jolley, R-Edmond, said he wasn’t being critical of Henry, a Democrat.

  “Henry is doing what he can, but at the same time this (downturn) hit him
  at the very end,” Jolley said. “I think most of us thought we had already
  diversified enough and this downturn shows that we’re still heavily reliant
  on our natural resources of oil and gas and we need to further diversify in
  order to have a more stable economy for the future.“

  Budget process draws debate on Oklahoma House floor
  BY MICHAEL MCNUTT, Capitol Bureau
  The Oklahoman
  3.26.2010

  For the second time in two months, the House of Representatives stopped
  churning out money bills for the upcoming fiscal year to complain Thursday
  most are left out of the budget-decision process.

  Rep. Mike Reynolds, as he did last month, asked to debate appropriation
  bills to criticize the procedure to craft the 2011 fiscal year budget,
  which takes effect July 1. Several other lawmakers joined him in a
  discussion that took more than an hour.

  “The process needs to be open,” said Rep. Richard Morissette, D-Oklahoma
  City, pointing out the Legislature is exempt from the Open Meeting Act.

  Rep. Jerry McPeak, D-Warner, asked Rep. Ken Miller, chairman of the House
  and Appropriations Committee, which members of the GOP-controlled chamber
  were involved in budget discussions in “smoke-filled rooms.“

  “There seems to be a myth that is perpetuated that there’s some
  smoke-filled room where the doors are locked shut with chains on the
  outside,” said Miller, R-Edmond. “There is no smoke-filled room.

  “These conversations are taking place on phone calls, sometimes just
  dropping down to someone’s office,” he said. “Sometimes we have some
  substantial conversations just walking and stopping in the hall when we run
  into another.“

  The debate stopped what had been a regular flow of passage of appropriation
  bills. The bills are often called shell bills because they contain no
  figures.

  Figures will be added to the bills after a budget agreement is worked out
  by the governor and legislative leaders. The bills then will be brought
  back for approval by both the House and Senate and then sent to the
  governor.

  Miler said preliminary work has started on the 2011 fiscal year budget and
  that this year’s process is the same that has been in place for several
  years. He and the speaker are involved in negotiations with the Senate and
  the governor, he said, and each of the 101 members is either on his budget
  committee or on one of seven budget subcommittees. Each member also may
  attend the budget committee and subcommittee meetings, which are posted and
  open to the public.

  Reynolds, R-Oklahoma City, said: “I am stunned to learn that a $6 billion
  budget is negotiated in casual conversations in the hallway or on telephone
  calls. That’s an amazing thing.

  “If I were running for statewide office, that’s not the way I’d want to
  operate things,” Reynolds said, in a jab at Miller, who is running for
  state treasurer this year. “I’d want to do it different. I’d want full
  disclosure. I’d want every member of this body to have the opportunity to
  vote on an amount on every single bill.“

  FAA REAUTHORIZATION

  Senate completes FAA extension
  By Vicki Needham
  The Hill
  3/25/2010

  On Thursday night, the Senate by unanimous consent completed work on
  three-month extension of the Federal Aviation Administration bill (H.R.
  4853) pushing the expiration date to July 3.

  The temporary measure provides $3 billion for the Airport Improvement
  Program, $7 billion for FAA operations, $2.2 billion for facilities and
  equipment programs and $144 million for research, engineering and
  development programs. The levels of funding are consistent with levels in
  the House and Senate reauthorization bills and the fiscal year 2010
  Consolidated Appropriations Act, according to the House Transportation and
  Infrastructure Committee.

  The House and Senate are expected to meet within the next few months to
  work out differences on a longer-term FAA reauthorization.

  House To Add Tougher Pilot Training Standards to FAA Bill
  CQ Politics
  3/24/2010

  The House was poised Wednesday to add language intended to strengthen
  airline pilot training standards to a bill to reauthorize operations of the
  Federal Aviation Administration and modernize the air traffic control
  system.

  To pave the way for a House-Senate conference, the House this week is
  expected to take up a FAA reauthorization bill passed by the Senate on
  March 22 and paste in the text of its own bill, along with a separate
  measure to stiffen training standards for airline pilots. The House could
  vote on the package as soon as Thursday, after the Rules Committee acts
  Wednesday to set the process in motion.

  To buy time for potentially difficult negotiations on the broad FAA bill,
  the House passed a three-month extension Wednesday morning that will keep
  aviation programs running through July 3.

  The drive to toughen pilot training standards was spurred by a string of
  deadly regional jet crashes. The measure would require every pilot in an
  airline cockpit to have what is known as an Airline Transport Pilot (ATP)
  certificate, which requires, among other things, 1,500 hours of flight
  time. It is the highest grade of pilot certification and allows a pilot to
  act as the pilot-in-command of a commercial passenger plane.

  Pilots currently need only 250 hours of flight training to fly for a
  commercial airline, which some lawmakers say is inadequate.

  Some flight schools and the administration have sounded cautionary notes,
  however, about setting inflexible standards. As a result the bill was
  modified to give the FAA some leeway, though it retains the 1,500-hour
  mandate.

  Comprehensive pre-employment screening for pilots also would be required,
  as would creation of a database to give airlines access to a pilot’s
  comprehensive record. Current law requires the release of information only
  for the previous five years.

  Additionally, the measure would require the FAA to issue a new rule on
  pilot fatigue standards within a year of enactment.

  U.S. AEROSPACE INDUSTRY

  Xe sells aviation unit to AAR for $200 million
  By Staff and Wire Reports
  Tulsa World
  3/26/2010

  The security company formerly known as Blackwater is shedding its aviation
  division, selling the unit for $200 million to AAR Corp.

  The two companies announced the deal Thursday evening. Moyock, N.C.-based
  Blackwater now operates under the name Xe (zee) Services. Xe said the deal
  allows the company “to move forward on a firmer economic basis.“

  Wood Dale, Ill.-based AAR will get the aviation units that operate under
  the umbrella name of Aviation Worldwide Services. The division has a fleet
  of 58 aircraft, many of which are used under U.S. government contract in
  Afghanistan.

  AAR Chairman and CEO David P. Storch said in a statement that the market
  for government aviation “represents a tremendous growth opportunity.“

  AVIATION INNOVATION

  Air Force Makes First All-Engine Flight Using Alternative Jet Fuel Blend
  Aero News Network
  3/25/2010

  An Air Force test pilot flew an A-10 Thunderbolt II jet aircraft at Eglin
  Air Force Base in Florida Thursday morning on a blend of biomass-derived
  and conventional JP-8 jet fuel. This was be the first flight of an aircraft
  powered solely on a biomass-derived jet fuel blend.

  The biomass-derived fuel used for this event is referred to as hydrotreated
  renewable jet, or HRJ, and is part of a class of fuels derived from either
  plant oil or animal fat feedstocks. The feedstock source of the biomass
  powering the A-10 demonstration is camelina oil, a flowering plant in the
  same family as mustard, cabbage and broccoli, but not used as a
  food-source.

  Biomass-derived fuels offer the potential to reduce greenhouse gas
  emissions. While additional testing will be conducted to explore the full
  extent of their benefits, test data show that particulate emissions are
  reduced during combustion of biomass-derived fuels.

  This event marks the next phase in the Air Force’s alternative aviation
  fuel program and represents a milestone in worldwide development of
  alternative aviation fuels, paving the way for future Air Force HRJ
  certification flight tests of the F-15 Eagle, F-22 Raptor and C-17
  Globemaster III to begin this summer.

  The A-10 demonstration flight supports the Air Force’s 2010 Energy Plan
  goal to be prepared to cost-competitively acquire 50% of domestic aviation
  fuel from an alternative fuel blend by 2016.

  “The Air Force recognizes its role as a leader in energy management,” said
  Mr. Terry Yonkers, assistant secretary of the Air Force for installations,
  environment and logistics. “This demonstration underscores our commitment
  to advancing technologies that increase our use of renewable energy and
  reduce our consumption of imported foreign oil.“

  GENERAL AVIATION

  Cessna announces 95 layoffs in Independence
  by Daniel McCoy
  Wichita Business Journal
  3/25/2010

  Cessna Aircraft Co. on Thursday issued 95 layoff notices to workers at its
  facility in Independence.

  “This adjustment is part of the plan developed last year to align
  production rates with market demand,” Cessna spokesman Doug Oliver said in
  an e-mail. “This change does not impact our already-announced 2010 delivery
  schedule.“

  The Independence facility assembles and delivers several of Cessna’s
  single-engine piston models.

  Cessna has cut its total workforce in half since 2008.

  In Wichita, the company two years ago had 12,017 employees, according to
  the Wichita Business Journal’s employer list. Cessna’s employment last year
  was down to 6,036 workers.

  Eclipse Production To Resume, Holland Says
  By George Larson
  Aviation Week
  3/24/2010

  Production of the Eclipse EA-500 jet will resume, Eclipse Aerospace CEO
  Mason Holland promised Aviation Week March 23, but he declined to say
  exactly when that will occur or at what rate. Rather, he says, formal
  announcements about the very light jet program will be coming soon and
  should clarify things further.

  Holland told us that the recent decision by the Albuquerque, N.M., company
  to join the General Aviation Manufacturers Association is just another
  confirmation that his future agenda includes the restart of production. His
  first goal, however, is to bring the existing fleet of 250 aircraft into
  conformity before starting up the line again, he added.

  A series of developments have taken place in the program since Holland took
  it over, including the release March 16 of a training agreement with SimCom
  of Orlando, Fla. Two Level D simulators will be moved to Orlando under the
  deal with Eclipse retaining ownership of the equipment.

  SimCom training will encompass everything from type ratings to recurrent
  training under a Part 142 syllabus. Training is scheduled to start in the
  third quarter of 2010.

  Holland says he likes SimCom’s approach to training, adding the company is
  also very customer-oriented. “I’m customer-oriented. So the fit with
  Eclipse, it’s the perfect fit.” Holland says Eclipse pilots are the types
  of pilots who make up SimCom’s customer community. SimCom specializes in
  small class size and a highly personal approach for its largely
  owner-operator clientele.