Oklahoma Aerospace ALLIANCE

News Articles March 31, 2010

  • March 31, 2010

    Posted on Mar. 31, 2010

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

    - Enid Woodring Regional Airport is a busy place these days, not just with
    airplanes and fuel but expansion work as well.

    - Russia’s Antonov AN-124 cargo jet, one of the largest aircraft in the
    world, landed at Tulsa International Airport on Tuesday for refueling and a
    crew rest, airport officials said.

    - Putting on protective goggles, latex gloves and a plastic apron, U.S.
    Rep. Mary Fallin went to work Tuesday morning at a NORDAM assembly line in
    north Tulsa.

    - Journal Record op-ed by Phil Busey and Dick Burpee comparing San
    Antonio’s aerospace industry to Oklahoma’s aerospace industry, in
    particular Tinker Air Force Base.

    - Tulsa World editorial encouraging the state’s education leaders to
    continue its efforts to obtain a federal grant through the Race to the Top
    initiative.

    - The aviation industry is recovering from the downturn, National Air
    Transportation Association president Jim Coyne told attendees at Tuesday’s
    Wichita Aero Club luncheon. Fuel sales, used aircraft prices, flight hours
    and business with fractional ownership companies have risen during the
    first quarter of 2010, he said.

    - French President Nicolas Sarkozy on Tuesday pressed President Barack
    Obama for assurances that the Pentagon’s continuing search for a contractor
    to build a $35 billion fleet of new aerial-refueling tankers would be fair.

    - Column from Time magazine questioning why the Obama Administration is
    finding it difficult to fill the Transportation Security Administration’s
    top spot.

    STATE AIRPORTS

    Hammers are flying at Woodring airport
    By Robert Barron, Staff Writer
    Enid News and Eagle
    3/20/2010

    ENID – Enid Woodring Regional Airport is a busy place these days, not just
    with airplanes and fuel but expansion work as well.

    A new airport rescue firefighting vehicle and maintenance building
    currently is under construction. The facility will house the airport’s
    firefighting and snow removal equipment. It replaces a building constructed
    in the 1940s, and Airport Director Dan Ohnesorge hopes to see it complete
    this summer.

    Another project is lengthening 66th Street, where it runs along the east
    perimeter of the airport, for better utilization by Cimarron Industrial
    Park and the foreign trade zone there. That project is expected to start in
    mid-May and be completed in about eight months, Ohnesorge said.

    “It was helped along with a $400,000 grant from the Oklahoma Department of
    Transportation industrial road program,” he said.

    The foreign trade zone allows businesses to trade in products duty free or
    at reduced duty costs.

    KC Electric also is installing a Precision Approach Path Indicator that
    guides approaching aircraft to the proper angle when landing.

    “We’re also working with other electrical projects on the main runway. It
    should be done in 60 days depending on weather,” he said.

    Ohnesorge and Airport Advisory Board members are proceeding with the
    airport master plan to build the type of airport Enid will need in the
    future.

    “We envision 25 years in the future and try to sequence improvements to the
    airport. We’re getting input from pilots, the airport board members,” he
    said.

    A major project coming in the near future is a micro-surface for runway
    13/31 and the associated taxiway. Ohnesorge said the current overlay is
    asphalt containing significant cracking, and Oklahoma Aeronautics
    Commission has allowed a grant to fix the cracks and put a micro-surface on
    it.

    Crews also are working on a terminal renovation. The old TSA room has been
    turned into an additional dining area, and Ohnesorge wants to perform some
    remodeling to make it bigger. City crews have done part of the work, which
    saved the city significant savings on the project.

    Welcome to Tulsa
    One of the world’s largest planes lands at the airport
    By D.R. STEWART, Staff Writer
    Tulsa World
    3/31/2010

    Russia’s Antonov AN-124 cargo jet, one of the largest aircraft in the
    world, landed at Tulsa International Airport on Tuesday for refueling and a
    crew rest, airport officials said.

    The Antonov Airlines jet, with four turbofan engines, was parked most of
    the day on the apron between the east and west concourse at Tulsa
    International.

    The flight originated in Lawton and was scheduled to depart Tulsa at
    midnight, said Jeffrey Strow, office manager of Atlantic Aviation, 7500 E.
    Apache St.

    “They’re headed overseas,” he said. “We provide all the ground-handling
    services, ground transportation, catering and hotel reservations for them.“

    The AN-124, which first flew in 1982, was designed by Russia’s Antonov
    Design Bureau to be the largest transport aircraft in the world.

    With a wingspan of 240 feet, 5 inches, it is larger than the United States’
    Lockheed C-5B Galaxy’s 222-foot, 8-inch wingspan – the largest aircraft in
    North America.

    However, it is smaller than the Antonov AN-225 Cossack, which measures 290
    feet, 2 inches across the wings.

    The Antonov cargo jets occasionally visit Tulsa to transport aircraft
    components for Spirit AeroSystems Inc., officials said.

    Last year, Antonov Airlines submitted an emergency exemption application to
    the U.S. Department of Transportation to fly a fully assembled G650
    business jet wing manufactured in Tulsa by Spirit AeroSystems to Gulfstream
    Aerospace Corp. in Savannah, Ga., government documents say.

    Antonov’s application to DOT said the wing measures 58-by-19.25-by-9.25
    feet and “cannot be accommodated by any freighter aircraft operated by U.S.
    carriers.“

    OK AEROSPACE INDUSTRY

    Fallin gets to work on campaign
    Gubernatorial hopeful launches bid in factories
    By MICHAEL OVERALL, Staff Writer
    Tulsa World
    3/31/2010

    Putting on protective goggles, latex gloves and a plastic apron, U.S. Rep.
    Mary Fallin went to work Tuesday morning at a NORDAM assembly line in north
    Tulsa.

    Saying they expected her to do it just long enough to have a picture taken,
    plant managers deliberately assigned her one of the most labor-intensive
    jobs – using hand-held power tools to put the final polish on newly
    manufactured aircraft windows.

    Then the Republican gubernatorial hopeful kept at it for nearly 45 minutes,
    even starting over on a Boeing 747 window after it failed inspection. All
    without a photographer in sight.

    “I wanted to work,” Fallin said. “And this is hard work.“

    So is running for governor.

    With Congress in recess, Fallin embarked this week on a 15-day tour that
    will take her to 21 counties across the state to experience a variety of
    “ordinary” jobs.

    Among others, she plans to work as a veterinarian’s assistant in Nowata, a
    nurse’s aide in Muskogee, a UPS driver in Oklahoma City and a ranch hand in
    the Panhandle.

    “I want to be sure to listen to the people of Oklahoma,” Fallin said. “Not
    only the employers, but the employees.“

    Fallin and state Sen. Randy Brogdon are the leading Republican contenders
    to appear on November’s ballot for governor.

    Tuesday afternoon, after her stint at NORDAM, Fallin spent half an hour
    operating heavy machinery at a Webco factory in Sand Springs.

    The company recently cut back on health-care benefits after state mandates
    caused premiums to increase, Fallin said.

    “So mandates can backfire,” she said later, while meeting with members of
    the media at the Tulsa Press Club. “You don’t do the employees any favors
    by making the costs go up for the employers.“

    Along with a few other congressional Republicans, Fallin recently made
    national news by appearing on a U.S. Capitol balcony with a “Don’t Tread on
    Me” flag during a tea party rally against the Democratic health-care
    legislation.

    Other members of Congress used underground passageways to avoid the
    protesters, Fallin said.

    “But I wanted to mingle with the people,” she said, “and I wanted to hear
    what they had to say.“

    Some Democratic lawmakers accused the protesters of using racial slurs and
    making physical threats.

    “There’s no place for that whatsoever in our political system,” Fallin
    said.

    “From what I saw, it was peaceful. And people on both sides were expressing
    their opinions.“

    Other jobs on the “Working Across Oklahoma” tour will include driving a bus
    in Lawton, waiting on tables in Muskogee and hosting a radio program in
    Weatherford.

    Other Republicans in the governor’s race are Roger Jackson of Oklahoma City
    and Yukon businessman Robert Hubbard.

    Democratic candidates are Lt. Gov. Jari Askins and Attorney General Drew
    Edmondson.

    Primary elections are set for July 27.

    Aerospace growth critical to oklahoma
    By Phil G. Busey Sr. and Dick Burpee
    Guest Columnists
    The Journal Record
    3/26/2010

    Aerospace is a strong business platform for economic growth in Oklahoma.
    While the recession batters many industries, government-related aerospace
    and Department of Defense contracting remains strong.

    Critical to Oklahoma is the sustainment and commitment of Oklahoma and our
    congressional delegation to ensure the viability of U.S. Air Force bases
    like Tinker Air Force Base in Oklahoma City and support for commercial
    aviation giants like American Airlines. Tinker has more than 25,000
    employees and contributes $3 billion to Oklahoma’s economy annually.

    Nothing is certain and Oklahoma must work diligently to ensure our military
    facilities remain BRAC (Base Closure and Realignment Commission) proof
    while we offer incentives for new companies to consider Oklahoma as a base
    of operations. Critical to the sustaining of larger defense-oriented
    aerospace companies are efforts to continually ensure new work is added to
    Tinker AFB.

    As the Air Force brings on new aircraft platforms, maintenance repair and
    overhaul work is funneled to Tinker. There are three Air Force depots
    nationally. All compete for work.

    Oklahoma cannot take its eye off the ball. This competition is fierce.
    Right now 70 percent of Tinker’s $5.2 billion annual budget is spent out of
    state.

    There is a core of capable small business suppliers that can be attractive
    to larger companies for support. Supporting and marketing an Oklahoma
    supplier base can be an economic incentive. Further, segments of the
    industry are experiencing an inability to find and hire trained mechanics,
    engineers and support technicians. This is both local and national.
    Oklahoma must meet these demands to compete effectively. Strong work force
    development is a business plus.

    Oklahoma can learn from San Antonio. Kelly Air Force Base was a competing
    depot until closed during the BRAC round in 1995.

    A critical evaluation factor then and for Tinker was efficiency and
    productivity ratings. After Kelly was closed, San Antonio formed the San
    Antonio Port Authority and with the help of Sen. Kay Bailey Hutcheson,
    R-Texas, and Texas leaders, was able to retain large aerospace facilities
    and has grown a premier location for aerospace support.

    Today there are 13 aerospace companies at the complex generating more than
    $1.5 billion in local revenue and 8,000 jobs. This complex is on a rapid
    growth plan into the 21st century.

    Major tenants have announced expansion and new job creation. Boeing is
    adding capabilities to service its new 787 Dreamliner there. Lockheed is
    adding commercial business.

    Touring facilities in San Antonio in April 2009, we were advised a new $84
    million in contract modification work for the KC-135 was coming. The work
    is for Tinker but being performed in San Antonio. We have to strive to
    bring this type of work to Oklahoma.

    Oklahoma’s leaders must come together aggressively identifying and
    developing support to attract new contracts and facilities. We have to
    ensure Tinker and all our military bases are working at the highest
    capacity to withstand future BRAC rounds.

    In tough economic times we have the option to commit to the strategic
    development of this vital industry. Economic diversification building on
    aerospace and an established energy sector means future expansion and the
    ability to compete nationally.

    Phil G. Busey Sr. is chairman and CEO of the Busey Group of Companies and
    retired Lt. Gen. Dick Burpee (USAF) is with RAB Enterprises LLC

    STEM EDUCATION

    Lost race
    We’ll get ‘em next time
    By World’s Editorial Writers
    Tulsa World
    3/31/2010

    The first round of the Race to the Top competition for a federal education
    jackpot has ended, and Oklahoma wasn’t much of a factor. Forty-one states
    competed and Oklahoma placed 34th, well out of the money.

    Considering the efforts of the Legislature, the governor’s office and state
    education officials to make the state competitive in the effort, it would
    be easy to be angry or ungracious in defeat.

    Doubting minds will immediately notice that the two big winners in the
    competition are Tennessee and Delaware, states with congressmen key to
    Education Secretary Arne Duncan’s hopes of passing changes to the No Child
    Left Behind law.

    Coincidence? Probably.

    Those inclined toward conspiracy will also notice the names of key
    political states in the president’s re-election hopes – Florida, Illinois,
    Pennsylvania and Ohio – in the top tier of the competition. Oklahoma, one
    of the reddest of the red states, is at the bottom with other states that
    Obama is likely to ignore in the 2012 campaign, such as Wyoming, South
    Dakota and Alabama.

    Again, no smoking gun, just an itchy feeling.

    But it doesn’t take a paranoid to come to this conclusion: The Obama
    administration had no reason to want to help Oklahoma in its quest for Race
    to the Top money, and apparently it didn’t do so.

    In the end, however, the state’s best response is to behave as if the
    competition was on the level, and resolve to do better in the second round.
    Some $3.4 billion is still available and Oklahoma can compete for as much
    as $175 million of that.

    Remember your elementary school coach’s words: When you lose a competition,
    get up, dust yourself off and start learning from the experience. Accept
    the challenge to win next time.

    State leaders need to study the winning proposals and find out what
    advantages Tennessee and Delaware brought to the competition, and then go
    those proposals one better.

    There is too much money at stake and its potential impact for the
    schoolchildren of Oklahoma is too important to declare Race for the Top a
    politically fixed game. We have to compete with an eye toward winning next
    time.

    GENERAL AVIATION

    Aviation chief sees signs of recovery
    BY MOLLY MCMILLIN
    The Wichita Eagle
    3/31/2010

    The aviation industry is recovering from the downturn, National Air
    Transportation Association president Jim Coyne told attendees at Tuesday’s
    Wichita Aero Club luncheon.

    Fuel sales, used aircraft prices, flight hours and business with fractional
    ownership companies have risen during the first quarter of 2010, he said.

    Coyne expects increases again in the second quarter.

    That’s good news, he said. But it will take time for that to translate into
    new aircraft sales, which lag the rest of the industry.

    “It definitely will be a while,” Coyne said.

    Corporate profits drive aviation sales.

    And businesses still face uncertainty. For one, they are waiting for
    clarity from Congress about tax policies, he said.

    NATA represents about 2,000 general aviation service companies, such as
    fixed-base operators, charter providers, aircraft management companies,
    maintenance and repair organizations, and flight training and airline
    service companies.

    Yingling Aviation president Lynn Nichols said after Coyne’s speech that his
    business validates what Coyne said about an improving aviation industry.

    Two leading indicators for Yingling – fuel sales and part sales – are up.

    “We’re encouraged,” Nichols said. “It’s been a good solid five months in a
    row.“

    Coyne, a former member of the U.S. House of Representatives, is a pilot
    with instrument and multi-engine ratings. He has an undergraduate degree
    from Yale and an MBA from Harvard University. He served in the White House
    as a special assistant to President Reagan and as director of the Office of
    Private Sector Initiatives.

    He was named president of NATA in 1994.

    “I am fully recovered from my time in Congress,” Coyne quipped. “I went
    through the 12-step program.“

    His “greatest loves in life” are aviation and politics, he said.

    A year ago, Coyne wrote President Obama after Obama’s State of the Union
    address in which he criticized the use of private aircraft by CEOs.

    “He took this unnecessary swipe at people who use private jets,” Coyne
    said.

    The comment made the downturn in the business jet industry worse, Coyne
    said.

    In the letter, Coyne told Obama that as president, he would come to
    appreciate the benefits an airplane would give him.

    “It’s a little bit of a stretch to call Air Force One a business aviation
    airplane,” Coyne said. “But that’s what it is.“

    On Sunday, Obama praised the use of the aircraft when he spoke to troops in
    Afghanistan.

    “I’m pleased that he’s figured out what I told him is true,” Coyne said.

    In fact, there’s never been a president who has used Air Force One as much
    as Obama, he said.

    Obama is not the only president who uses an aircraft as a critical part of
    doing business.

    Presidents, vice presidents and many other business people of companies and
    organizations use business aircraft as a “critical” part of their business,
    Coyne said

    TANKER CONTROVERSY

    Sarkozy weighs in on tanker contract
    By JEN DIMASCIO
    Politico
    3/30/10

    French President Nicolas Sarkozy on Tuesday pressed President Barack Obama
    for assurances that the Pentagon’s continuing search for a contractor to
    build a $35 billion fleet of new aerial-refueling tankers would be fair.

    Answering a French reporter’s question during a joint news conference with
    Obama at the White House, Sarkozy stressed the importance of trust between
    the two nations, particularly in the bidding for the new tankers.

    The French president and other European officials have criticized the
    bidding process as unfairly favoring Boeing over the European Aeronautic
    Defence and Space Co.

    “I said to him, ‘I trust you.’ And I do trust him,” Sarkozy said. “If you
    say to me that the request for proposals, the call for tenders, will be
    free, fair and transparent, then we say EADS will bid, and we trust you.“

    “The trust is justified,” Obama replied, noting that Defense Secretary
    Robert Gates, who’s been overhauling procurement procedures, would make the
    decision.

    “The president does not meddle in these decisions. … I maintain an arm’s
    length approach,” Obama added, “but I have assurances from Secretary of
    Defense Gates that, in fact, the rebidding process is going to be
    completely transparent, completely open and a fair competition.“

    Earlier, during a visit with British Prime Minister Gordon Brown in London,
    Sarkozy’s disappointment with the tanker bidding had been more evident.

    “If they want to be heard in the fight against protectionism, they should
    not set the example of protectionism,” Sarkozy was quoted as saying by
    Reuters. “There is what you say, and then there is what you do.“

    This is the third time the Air Force has tried to acquire a new fleet of
    tankers to replace its aging KC-135s first made in the Eisenhower era.

    EADS, which dropped out of the bidding with its U.S. partner, Northrop
    Grumman, is now considering whether to stay in the fight against Boeing on
    its own. Defense insiders say other U.S. companies are unlikely to form the
    kind of partnership EADS had with Northrop.

    Bids for the tanker are due to the Pentagon by May 10, but EADS has asked
    for a 90-day extension to regroup after Northrop pulled out.

    The Pentagon is still considering the request.

    “We have a company that has reached out to us to explore the possibility of
    participating in this bidding process and has raised the prospect of
    needing more time,” Pentagon spokesman Geoff Morrell told reporters
    Tuesday. “We’re trying to gain a better understanding of why they would
    need more time.“

    AVIATION SECURITY

    Travel Snafu: The Stumbling Search for a TSA Chief
    By Mark Thompson, Washington
    Time
    3/31/2010

    More than a year into President Obama’s Administration – and three months
    after the Nigerian underwear bomber failed in his attempt to blow a U.S.
    airliner out of the sky over Detroit – the nation still doesn’t have a top
    cop at the Transportation Security Administration (TSA). Why is the
    Administration having such a tough time filling this vital slot?

    Robert Harding, the most recent nominee, withdrew from consideration last
    Friday after concerns were raised about government contracts he had
    received following his retirement from the Army. In withdrawing his
    nomination, Harding said the “distractions caused by my work as a defense
    contractor would not be good for this Administration, nor for the
    Department of Homeland Security.” His withdrawal followed the similar fate
    two months earlier of former FBI agent Erroll Southers, after revelations
    that he had tapped into a federal database seeking information on his
    estranged wife’s boyfriend. Southers had initially told Senators he asked a
    co-worker’s husband in the San Diego police department to run a background
    check, but later admitted that he himself had conducted two database
    searches into the man’s background.

    Political considerations may well have played a role in the derailing of
    both nominations. When Southers withdrew, the White House issued a
    statement quoting him saying that his desire to serve “has been obstructed
    by political ideology.” To be sure, the poisonous atmosphere on Capitol
    Hill has made it necessary for any candidate to be bulletproof in order to
    withstand partisan scrutiny. But it’s clear that, despite the Obama
    Administration’s reputation for scrubbing its candidates before nominating
    them, there appears to have been poor vetting in both these cases. “In this
    politically toxic environment, it only takes one thing to derail a
    nomination,” says Richard Cooper, a former Department of Homeland Security
    official. “But there were a lot of outstanding questions about Harding’s
    contracts.“

    Harding, a two-star Army general, retired in 2001 and two years later set
    up a company with his wife as his partner. Then, in 2008, their company
    landed a nearly $100 million contract from the Army that involved
    identifying people via retinal scans and other unique biometrics. Harding’s
    company was the only bidder, according to the Washington Post. The company
    collected about $200 million in federal contracts before Harding sold it
    last year.

    Harding landed the contract after certifying he was a “service disabled
    veteran” because he suffered from sleep apnea, which would have given him
    an edge over other prospective bidders. Cooper notes skeptically that he
    too suffers from sleep apnea. “But it has never been what I would call
    disabling,” he wrote on his blog Monday. “If anything, I find myself
    shaking my head in complete disbelief that of all the truly serious
    injuries that halt the military careers of our service members, this
    breathing disorder would be excuse enough to get a multimillion-dollar
    contract.“

    A second troublesome contract called on Harding’s firm to provide 40
    interrogators to work in Iraq for his old office – the Defense Intelligence
    Agency – where he had served as director of operations from 1996 to 2000.
    While the contract could have been worth $50 million, the Army ended it
    after spending only $6 million because of the relatively few Iraqis the
    U.S. military wanted to question, Harding told a Senate committee last
    week. But some $2.4 million of that ended up being questioned by government
    auditors. That included “severance payments” averaging $20,000 each that
    Harding had paid to each of the 40 interrogators after the government
    canceled the contract – payments Harding could not legally make because
    they were not provided for in the scope of the agreement with the
    government.

    The Obama Administration now has to start over, for a third time, and there
    is concern it will be months before another TSA nominee can be found and
    vetted. The vacancy could be both a security problem for the nation and a
    political problem for the Obama Administration. Brian Jenkins, a terrorism
    expert with the Rand Corp., says a TSA without a confirmed leader hurts in
    two ways: it’s bad for front-line morale, and it means there will be no
    bold policy proposals coming from the agency. “TSA can continue to tread
    water while it awaits a leader,” says Jenkins. “But the threat is dynamic,
    and treading water isn’t good enough.“

    The failure to get someone running TSA is only a minor irritant so long as
    no major terrorist attack happens on an airplane, ship or train while the
    spot is vacant. But if there’s no one in charge of preventing it when
    something does happen, it’s also a political disaster that could mortally
    wound a President’s hopes for a second term.

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