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Airline Passengers Benefit as Flight Attendants Gain Ground on Sanitation and Temperature Standards

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    GE and AVIC Sign Agreement for Integrated Avionics Joint Venture

    GE Aviation of the United States and Aviation Industry Corporation of China (AVIC) today announced the signing of the agreement to form their new joint venture company. Chinese Commerce Minister Chen Deming and the U.S. Commerce Secretary Gary Locke witnessed the public signing by David Joyce, president and CEO of GE Aviation and Zhang Xinguo, vice president of AVIC today in Chicago.

    The new AVIC and GE joint venture company will develop and market integrated, open architecture avionics systems to the global commercial aerospace industry for new aircraft platforms. This system will be the central information system and backbone of the airplane’s networks and electronics and will host the airplane’s avionics, maintenance and utility functions. GE and AVIC will continue to service their legacy programs and existing contracts with customers. The agreement is subject to government approvals and the issuance of an operating license.

    This 50/50 joint venture represents a significant milestone in the growing aerospace relationship between Chinese aviation industry and GE Aviation since the mid-1980s. Chinese airlines now operate more than 2,500 jet engines produced by GE and CFM International (joint company of GE and Snecma), with an additional 1,000 engines on back order. GE Aviation’s collaboration in China also involves investment in a network of facilities for technical training, manufacturing, spare parts distribution, and engine maintenance and overhaul. Additionally, GE is powering China’s new ARJ21 regional aircraft and CFMI was selected to power the new Chinese C919 aircraft.

    The new GE-AVIC joint venture extends the relationship beyond engines into commercial avionics. It will enable GE and AVIC to grow a business together that will create jobs globally, including hundreds of new jobs in the US, the UK and China.

    “GE is extremely pleased and excited to be a part of this unique aviation business. The JV will build on the extensive avionics capabilities of both companies and create a technology center of excellence to serve the commercial aviation market,” said David Joyce. “GE’s aviation business in China results in 1,800 high-technology jobs in the U.S. The jobs are involved in producing and supporting jet engines for China, as well as developing the new engine and avionics system for the C919.”

    The joint venture company will be headquartered in China and will be the single route-to-market for integrated avionics systems for both GE and AVIC for new commercial aircraft. Also, GE and AVIC will each provide avionics products to the joint venture company as a customer and distributor.

    “The combination of AVIC and GE’s aviation experience, technical know-how and people skills will lead to the development of highly competitive commercial avionics products,” said Zhang Xinguo. “AVIC is looking forward to a long and successful partnership.”

    The name of the joint venture is GE-AVIC Civil Avionics Systems Company Limited. The joint venture will have its Chairman and General Manager nominated by AVIC and GE respectively with final approval from its board of directors. The company will be initially located at Zizhu Digital Hub Science Park in Shanghai until a permanent location is secured.

    “The joint venture will work to secure systems and other avionics products on future aircraft adding to the overall economic value and jobs created,” said Lorraine Bolsinger, president and CEO of GE Aviation Systems. “The JV and C919 program will support and maintain at least 300 high-tech jobs locally in each the US and China. This venture will challenge our team to come up with break-through technology. GE and AVIC will together develop a world-class engineering organization and the JV itself will be creating new IP and new technology. This is a 50/50 partnership; you have to be all in and be very committed.”

    The initial focus for the joint venture is integrated avionics systems for the C919 aircraft. This selection was formalized in a Letter of Intent with COMAC memorialized in a public signing on July 12, 2010. COMAC anticipates delivering more than 2300 C919 aircraft over the 20-year life of the program. This market potential provides an estimated value for the AVIC GE avionics systems of approximately $2 billion.

    Jeff Immelt, Chairman and CEO of GE and Lin Zuoming, president of AVIC, originally signed the framework agreement on November 15, 2009 regarding the formation of the visionary joint venture and the intention of jointly creating a market-leading integrated avionics system supplier.

    Since a major restructuring in November 2008, the AVIC Group has been ranked in the Fortune’s Global 500 list with a diversified aviation business portfolio ranging from helicopter-making to plane manufacturing. The company has also developed strong capabilities to supply avionics products to various models of aircrafts, both for military and civil use. AVIC has also been active in extensive international exchange and cooperation, viewing all industrial players in the aviation space globally as potential partners.

    China Aviation Industry Corporation (AVIC) is an ultra large state-owned enterprise and an investment institution, authorized and managed by the Central People’s Government. It is reorganized from AVIC I and AVIC II. The AVIC group oversees a wide range of business units, including defense, transport aircraft, aviation engine, helicopters, avionics, electromechanical systems, general aviation aircraft, aviation research and development, flight test, trade & logistics and asset management. It has nearly 200 subsidiaries (branches) and over 20 listed companies with a total of 400,000 employees. AVIC was ranked 330th in the Global Fortune 500 for 2010. It was the first Chinese aviation industrial company to make it into the rarified league. For more information, please visitwww.avic.com.cn.

    GE Aviation, an operating unit of GE (NYSE: GE), is a world-leading provider of jet engines, components and integrated systems for commercial, military, business and general aviation aircraft. GE has a global service network to support these offerings.

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    NTSB MEETS TO CONSIDER SAFETY STUDY ON THE USE OF AIRBAGS IN GENERAL AVIATION AIRCRAFT

    National Transportation Safety Board
    Washington, DC 20594

    January 6, 2011

    The National Transportation Safety Board will hold a public
    Board meeting to consider a safety study on the
    effectiveness of airbags in general aviation (GA) aircraft.

    The NTSB initiated the safety study to 1) examine the
    effectiveness of airbags in mitigating occupant injury in a
    survivable GA accident, 2) identify any unintended
    consequences of airbag deployments, and 3) develop
    procedures to assist investigators in documenting airbag
    systems in future investigations.

    During the course of the study, investigators became aware
    of several potential issues that could compromise occupant
    safety associated with the use, adjustment and design of
    restraint systems. All of these findings will be presented
    to the five-Member Board for their consideration.

    The meeting will be held on Tuesday, January 11, at 9:30
    a.m., in its Board Room and Conference Center, 429 L’Enfant
    Plaza, S.W., Washington, D.C.

    A live and archived webcast of the proceedings will be
    available on the Board’s website at
    http://www.ntsb.gov/Events/Boardmeeting.htm. Technical
    support details are available under “Board Meetings.” To
    report any problems, please call 703-993-3100 and ask for
    Webcast Technical Support.

    A summary of the safety study, which will include its
    findings and safety recommendations, will appear on the
    website shortly after the conclusion of the meeting. The
    entire study will appear on the website several weeks later.

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    Air India Express compliance in key areas reviewed by DGCA

    Air India Express compliance in key areas viz. Operations, Maintenance, Safety, Security and Commercial were reviewed in a meeting convened by the Director General of Civil Aviation (DGCA) in Delhi, recently. Dr. Nasim Zaidi, DGCA, Mr. Arvind Jadhav, Chairman & Managing Director, Air India Express and officials from DGCA and Air India Express attended the meeting.

    DGCA highlighted certain issues relating to positioning of officers in Operations, Safety and Training areas, Pilots on the regular roll of Air India Express, Flight dispatch, Crew rostering and monitoring of their Flight Duty Time Limitations (FDTL), Internal auditors, pre-flight medical, requirement of more mechanics etc. during the meeting.

    Air India Express has already acted upon these issues viz. issuance of office order for appointment of the Chief of Operations, order to have the pilots deputed to Air India Express to continue for a period of five years, deployment of the trainee pilots, under training now, on Boeing 737s, Computerization and automation of the Crew rostering system & FDTL monitoring, ensuring implementation of regulations with regard to Pre-flight medical, recruitment of additional mechanics from Defence etc.

    Memorandum of Understanding already exists between NACIL and Air India Express regarding Flight Dispatch, Ramp and Traffic Handling.

    The Chief Operating Officer, NACIL will soon issue Standard Operating Procedures including strict compliance with training schedule on monsoon and ALAR tool kit, regulations on special precautions during take-offs and landings, 100% FOQA, Crew Resource Management & optimal use of First Officers, strict implementation of regulations on simulation of unsafe situation during training, strict adherence to approach parameters and Voluntary safety reporting system.

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  • IATA Release: Global Traffic Falls 2.4% in April – Volcano Dents Recovery

    Geneva – The International Air Transport Association (IATA) announced international scheduled air traffic results for April 2010. Passenger demand slumped by 2.4% as a result of massive flight cancellations centered in Europe during the six days in April following the eruptions of an Icelandic volcano. The fall in traffic interrupted the industry’s recovery from the global financial crisis.

    International scheduled cargo traffic, less impacted by the cancellations, saw the pace of its recovery slow to 25.2% growth in April (down from the 28.1% improvement recorded in March).

    “The ash crisis knocked back the global recovery – impacting carriers in all regions. Last month, we were within 1% of pre-crisis traffic levels in 2008. In April, that was pushed back to 7%,” said Giovanni Bisignani, IATA’s Director General and CEO.

    “European carriers bore the worst of the volcano’s impact. Their 11.7% drop in passenger traffic could not have come at a worse time. Europe’s slow recovery from the global financial crisis and its currency crisis are already a huge burden on the profitability of its airlines. The uncoordinated and excessive cancellations and unfairly onerous passenger care requirements rubbed salt into the European industry’s wounds,” said Bisignani.

    The April drop in demand in Europe can be attributed to both the flight cancellations (two-thirds of the total decline) and follow-on cancellations due to uncertainty of the availability of air travel (one-third). Early indications for May show a rebound in travel from the disrupted levels in April.

    Looking ahead, Bisignani challenged Europe to reform its air traffic management. “The ash crisis was an embarrassing wake-up call for European governments. We need leadership to deliver the Single European Sky, fair passenger rights legislation and continent-wide coordination,” said Bisignani.

    The scale of the ash crisis saw global load factors drop to 76.9% from the 78.0% recorded in March. Freight load factors also dipped to 55.3% from the 57.1% recorded in the previous month. While March traffic was within 1% of pre-crisis levels for both passenger and cargo, this slipped to 7% for passenger and 3% for cargo in April.

    International Passenger Demand
    The ash crisis accentuated the asymmetrical nature of the economic rebound.

    European carriers posted an 11.7% demand drop in April (compared to a 6.2% increase in March). Uncertainty of service reliability in the aftermath of the ash cancellations and major unrest in Greece as a result of the currency crisis added to the weaker European demand during the month. Limited GDP growth expectations of 0.9% continue to dampen demand across the continent.
    North American carriers posted a 1.9% decline in demand, primarily as a result of the impact of the ash crisis on North Atlantic routes. This is a major step backwards from the 7.8% growth recorded in March. This fall in demand was less than half the 4.5% cut in capacity, pushing load factors to 80.2%.
    Asia-Pacific carriers saw their strong growth slow to 3.5% (from the 12.9% growth recorded in March). Robust GDP growth of 7% (Asia excluding Japan) is supporting the strong recovery.
    Middle Eastern airlines recorded the strongest traffic growth at 13.0%, which is about half the 25.9% increase of the previous month.
    African carriers also saw their recovery slow to 8.6% growth in April, down from the 16.9% growth recorded during the previous month.
    Latin American carriers posted a 1.2% increase for the month, a quarter of the 4.6% growth recorded in March, which was already a weak month as a result of the Chilean earthquake.
    International Cargo Demand
    Air freight was also impacted by the ash crisis, although less dramatically than passenger traffic. The global purchasing managers’ index rose to its second highest level ever in April, indicating that the fundamentals of the air freight business were not impacted by the crisis. We are, however, nearing the end of the inventory cycle and would expect freight growth to slow down over the rest of the year.

    European carriers showed the weakest growth at 8.3%, down from the 11.5% growth recorded in March. Poor economic performance prior to the ash crisis had seen European airlines lagging behind the rebound experienced by other regions.
    North American carriers recorded a 23.8% increase. While impressive, this was still below the 29.0% recorded in March.
    Asia-Pacific carriers, which make up 46% of international cargo operations, recorded growth of 33.2%, slightly below the 35.4% recorded during March.
    Middle Eastern carriers saw their growth rate slow to 25.9% from the 35.5% recorded in March.
    Latin American carriers saw the largest increase in cargo demand for the second straight month with a 63.0% increase – an improvement on the 47.9% recorded in March.
    African carriers also showed an improvement, from 51.4% in March to 54.6% in April.
    “The ash crisis was a shock. While there is always a danger of the consequences of renewed volcanic eruptions, the impact on passenger confidence should be limited. Unfortunately, we are trading ash for two additional uncertainties – strikes and a growing currency crisis – both of which are also focused on Europe,” said Bisignani.

    “The labor unrest plaguing Europe this year is unbelievable. It’s a tough competitive world. Airlines need to reduce costs to be competitive. Labor must realize that their pay checks are supported by the performance of the company. The middle of a very fragile recovery is not the time for striking. This mentality is divorced from reality,” said Bisignani.

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