USA Aviation NEWS

Monday, 4 April 2011

AAR Receives $27 Million Order for Specialized Shelters

AAR (NYSE: AIR) announced today that it has received a $27 million order for specialized shelters to be used for the U.S. Army's Standard Automotive Tool Set (SATS) program. To date, AAR has delivered more than 2,000 of these specialized shelters as part of a 10-year ID/IQ contract.

"We have a successful track record of providing versatile mobility solutions and are grateful for the opportunity to support the U.S. Army's SATS program," said Timothy J. Romenesko, President and Chief Operating Officer of AAR CORP. "We take pride in knowing that our products are used to improve efficiencies and facilitate field repairs in support of U.S. Army Combat Service and other national priorities that require specialized and durable mobility products."

AAR Mobility Systems designs and manufactures specialized rapid deployment equipment and mobile tactical shelters used to mobilize, deploy and sustain forces.

AAR is a leading provider of products and value-added services to the worldwide aerospace and government and defense industries. With facilities and sales locations around the world, AAR uses its close-to-the-customer business model to serve aviation and government and defense customers through four operating segments: Aviation Supply Chain; Government and Defense Services; Maintenance, Repair and Overhaul; and Structures and Systems. More information can be found at www.aarcorp.com.

Named One of the Most Trustworthy Companies by Forbes.

This press release contains certain statements relating to future results, which are forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on beliefs of Company management, as well as assumptions and estimates based on information currently available to the Company, and are subject to certain risks and uncertainties that could cause actual results to differ materially from historical results or those anticipated, including those factors discussed under Item 1A, entitled "Risk Factors", included in the Company's May 31, 2010 Form 10-K. Should one or more of these risks or uncertainties materialize adversely, or should underlying assumptions or estimates prove incorrect, actual results may vary materially from those described. These events and uncertainties are difficult or impossible to predict accurately and many are beyond the Company's control. The Company assumes no obligation to update any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events. For additional information, see the comments included in AAR's filings with the Securities and Exchange Commission.

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.Gulfstream new flagship crashes on test flight - Four dead

“Our thoughts and prayers go out to the families of those who were lost,” said Joe Lombardo, president, Gulfstream Aerospace.

The accident is under investigation by Gulfstream, the National Transportation Safety Board and the Federal Aviation Administration.

Federal Aviation Administration spokesman Lynn Lunsford said the plane went down shortly after taking off from Roswell International Air Center. The G650's landing gear collapsed, Lunsford said, and the plane burst into flames.

The luxury jet was one of five in flight-test mode. Savannah-based Gulfstream has more than 200 firm orders for the G650, which carries a price tag of $64.5 million and when certificated will be the fastest civil aircraft in the world. It has already achieved the high speeds and the first G650 was expected to be delivered in 2012.

“We are cooperating 100 percent with the investigation,” Lombardo said.

U.S. Senate urged to support biofuelsWASHINGTON, March 31 (UPI)

Biofuel advocates urged members of a U.S. Senate panel to increase support for an industry touted as one that will help wean the country from oil imports.

In a hearing designed to air out concerns in advance of the 2012 Farm Bill, Jeff Broin, chief executive officer of Poet LLC, an ethanol producer, told the Senate Agriculture Committee that farmers required consistent support for biofuel production, The Detroit News reported Thursday.

"If (farmers) see the government wavering in support of a government program, they back away," Broin said.

Earlier this week, President Barack Obama said sharp reduction in oil imports required "biofuels made from things like switch grass, wood chips and biomass."

At the Senate hearing, Michigan State University chemical engineering Professor Bruce Dale said, "There's no way to a sustainable transport sector without sustainable biofuels."

Dale said government support is needed for delivery infrastructure for biofuels, such as fuel pumps dedicated to new fuels, the newspaper said.

Dayton to lose its lone international flight

There will soon be less "international" flying at Ohio's Dayton International Airport.

The airport will lose its only regularly scheduled nonstop international flight when Air Canada discontinues its regional service to Toronto on May 1. The service is operated by Air Canada affiliate Air Georgian.

"Unfortunately, the route did not perform to our expectations," Air Canada spokesman Peter Fitzpatrick tells the Dayton Business Journal.

Air Canada's Dayton-Toronto route had been hit with declining passenger totals, according to the Business Journal, which says "the airport averaged about 250 passengers monthly on the route" in 2010.

Air Canada launched the service in 2008 with two daily round-trip flights, but pared that back to a single daily flight last fall.

The Dayton Daily News adds "Terrence Slaybaugh, Dayton's director of aviation, said Air Canada ultimately decided to concentrate on its (nonstop) service from Cincinnati/Northern Kentucky International Airport to Toronto. The service from Cincinnati is aboard 50-seat regional jet aircraft, compared with a 19-seat Beechcraft 1900 turboprop plane from Dayton."

Dayton International is about 65 miles from central Cincinnati and about 80 miles from Cincinnati/Northern Kentucky International.

Air traffic supervisor suspended, asked Southwest 737 to check on private plane

The Federal Aviation Administration has suspended an air traffic supervisor after "totally appropriate" actions brought a Southwest Airlines flight too close to a small private plane over Florida on Sunday.

Bloomberg News describes the incident, writing "the controller in central Florida asked the Southwest crew at 12,000 feet to fly closer to a single-engine Cirrus aircraft to check on a crew that had been out of radio contact, the Federal Aviation Administration said in a statement today."

The Associated Press says "the Southwest crew agreed, was directed toward the (Kissimmee-bound) Cirrus and reported the aircraft in sight, the agency said."

USA TODAY adds "the pilots on Southwest Flight 821 were so close to the single-engine plane at about 5 p.m. on Sunday that they could see two people in the cockpit, the FAA said."

The Orlando Sentinel says "both planes landed safely. But the agency said the Sunday incident brought a Boeing 737, Southwest Airlines Flight 821 from Phoenix, too close to the private plane, a Cirrus SR22, violating FAA rules about safe separations between aircraft."

The Southwest flight had 137 passengers and a crew of five, according to CNN.

"By placing this passenger aircraft in close proximity to another plane, the air traffic controller compromised the safety of everyone involved. This incident was totally inappropriate," FAA Administrator Randy Babbitt says in a statement. "We are reviewing the air traffic procedures used here and making sure everyone understands the protocols for contacting unresponsive aircraft."

As for the pilots involved in the incident, Southwest spokeswoman Brandy King tells The Dallas Morning News they've been placed "on paid leave pending the conclusion of the investigation."

Of course, for air traffic controllers, the incident is the second in about a week.

USA TODAY's Alan Levin writes it "comes after a supervisor controlling traffic at Ronald Reagan Washington National Airport fell asleep for at least 24 minutes shortly after midnight on March 23. Two airliners landed at the airport before the controller was awakened, the National Transportation Safety Board said."

The Wall Street Journal adds:

Taken together, the incidents indicate "there is something basically wrong" with the mind set and discipline of portions of the FAA's controller work force. "Supervisors establish the tone and the culture," said John Goglia, a former safety board member, but the two events "raise questions about their ability to think and appropriately separate aircraft."

Southwest flight makes emergency landing, 'hole' found on top of jet

A Sacramento-bound Southwest Airlines flight declared an in-flight emergency this evening and diverted to Yuma, Ariz., because of "rapid decompression in the cabin," The Arizona Republic reports.

The Sacramento Bee writes "Southwest Airlines Flight 812 made a rapid descent to 11,000 feet after the incident occurred and later landed safely at Yuma Marine Corps Air Station/International Airport at 4:07 p.m. (7:07 p.m. ET), FAA spokesman Ian Gregor wrote in an email."

Southwest issued a statement shortly after 9:30 p.m. ET, saying:

Southwest Airlines Flight 812, the scheduled 3:25 pm departure from Phoenix to Sacramento today, diverted to Yuma, Ariz due to loss of pressurization in the cabin. Upon safely landing in Yuma, the flight crew discovered a hole in the top of the aircraft. There are no reported Customer injuries. One of the Flight Attendants, however, received a minor injury upon descent.

Sacramento's KCRA TV reports that "the plane descended 16,000 feet in a minute, according to the flight-tracking website called flightaware.com."

There were 118 people on the flight, which had taken off from Phoenix en route to Sacramento. The aircraft involved was a Boeing 737-700, according to flightaware.com.

The FAA's Gregor tells The Associated Press that the cause of the decompression wasn't known as of 10 p.m. ET Saturday.

As for the "hole," several passengers described what they saw to the various media sources reporting on the incident.

"You can see daylight through it," a passenger identified as Brenda Reese is quoted as saying to KCRA by cellphone.

"It's at the top of the plane, right up above where you store your luggage," Reese added to AP in a telephone interview. "The panel's not completely off. It's like ripped down, but you can see completely outside."

AP writes "Reese said there was 'no real panic' among the passengers, who applauded the pilot after he emerged from the cockpit following the emergency landing."

Another passenger on the flight -- identified only as "Cindy" -- describes the scene to Sacramento's CBS 13.

"They had just taken drink orders when I heard a huge sound and oxygen masks came down and we started making a rapid decent. They said we'd be making an emergency landing," CBS 13 quotes the woman as saying. "There was a hold (sic) in the fuselage about three feet long. You could see the insulation and the wiring. You could see a tear the length of one of the ceiling panels."

"An FAA inspector is en route to investigate," CNN reports on its website.

Southwest says in its release that it "will work with the Federal Aviation Administration (FAA) and the National Transportation Safety Board (NTSB) as they investigate this event."

Essential Air Service cuts could ground rural communities

effectiveness and cost of the program.

Thirty years and counting

EAS has a lengthy history, dating back to 1978 when the Airline Deregulation Act took effect. The concern was that once the government stepped back from regulating routes and fares, certain areas of the country would lose all airline service. So through a series of temporary measures that eventually became permanent, the government began subsidizing airlines to serve routes they would have abandoned. Today the U.S. Department of Transportation subsidizes commuter airline service to approximately 140 communities throughout the United States that "otherwise would not receive any scheduled air service." A detailed guide to EAS is available on the DOT's website.

When I served on the DOT's Future of Aviation Advisory Committee last year, reform of Essential Air Service was among the recommendations we provided to DOT Secretary Raymond LaHood. Recommendation #13 reads: "First, as an interim measure, limit the communities within the contiguous 48 States that are eligible for air service subsidies to those that were receiving it on a date specified in 2010. Second, update the criteria for EAS eligibility, recognizing there are communities that are or can be efficiently served by other modes of transportation through 'leakage' to nearby airports that provide good connections and often low-fare service, or intermodal transportation services."

Several of us on the FAAC were vocal in noting that many small and rural communities—including but not limited to those in Alaska—still rely heavily on EAS. However, we also acknowledged that in some communities EAS has come to define government pork.

The waste comes primarily from that phenomenon known as "leakage," whereby citizens of subsidized communities drive to outlying airports, primarily served by low-cost carriers, thus negating the need for those subsidies. In discussions with DOT officials, we were told: "There's a lot of leakage." In fact, the DOT estimates it occurs in more than 90% of EAS communities. But while our suggestions were directed to the DOT, another vision of reform was taking place in Congress.

Time to sunset?

Last month Rep. John Mica (R-Fla.), chairman of the House Transportation and Infrastructure Committee, introduced the FAA Reauthorization and Reform Act of 2011. If this legislation is approved in its current state, it will terminate the EAS program on Oct. 1st, 2013, in all states except Alaska and Hawaii. In a press release, the majority members claim that sunsetting EAS will provide "savings of approximately $400 million over four years."

As deficit cutting takes center stage in Washington, EAS is somewhat vulnerable, and subsidized airline routes that support light passenger loads are particularly vulnerable. Case in point: The Atlanta Journal-Constitution recently reported that aircraft have often flown empty on an EAS route between Atlanta and Macon, creating an actual subsidy of $464 per passenger when calculated by ridership. This prompted one Republican congressman to label it as an example of "the most wasteful government spending."

However, there remains support for EAS in both chambers of Congress. In March, Sen. Jay Rockefeller (D-W.V.), Chairman of the U.S. Senate Committee on Commerce, Science and Transportation, met with Secretary LaHood to plea for keeping EAS in his home state and throughout the U.S.

Then there's Rep. Nick Rahall (D-W.V.), the top Democrat on the House Transportation and Infrastructure Committee, who recently stated the bill crafted by Republicans would "break the commitment" made to rural communities: "By cutting off this critical lifeline, rural Americans were told that the FAA now stands for 'Find Another Airport.' I think this is wrong and I will continue to work with my colleagues in a bipartisan fashion to honor the promise that Congress has made to people in rural America."

As much of the budget debate occurs along party lines, when it comes to EAS it appears that geography often trumps ideology. For example, 28 members of the Alaska State Legislature voted unanimously in February to urge Congress to continue funding, through legislation sponsored by a Republican.

Support for EAS has come from other quarters as well. One is a coalition of four key aviation trade organizations with vested interests: the Airports Council International-North America, the American Association of Airport Executives, the National Association of State Aviation Officials and the Regional Airline Association. In a joint letter to Congressional representatives they wrote: "Cutting EAS would be a deathblow to the economic health of hundreds of small communities across the nation. It is unimaginable that a business would start up in, or relocate to, a community where the closest commercial airport is located over two, four, six or even eight hours away." The letter concluded: "[E]liminating EAS outright in the lower 48 states is the wrong thing to do, and now is the worst time to do it."

Will EAS live?

The fate of the Essential Air Service program seemingly will be decided within the coming months or even weeks. But what of the communities that may lose air service? Do you live in a subsidized town and worry about EAS cuts? Or do you feel that EAS is a waste of taxpayer funds? Please share your thoughts with us.

Read previous columns

Bill McGee, a contributing editor to Consumer Reports and the former editor of Consumer Reports Travel Letter, is an FAA-licensed aircraft dispatcher who worked in airline operations and management for several years. Tell him what you think of his latest column by sending him an e-mail at USATODAY.com at travel@usatoday. Include your name, hometown and daytime phone number, and he may use your feedback in a future column.

Monday, 4 April 2011

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