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Audit Initiated of FAA’s Air Traffic Facility Realignment

The Office of Inspector General plans to review the Federal Aviation Administration’s (FAA) plans for consolidating the Nation’s air traffic facilities, many of which are approaching the end of their useful lives. We are conducting this review at the request of the former Ranking Members of the House Transportation and Infrastructure Committee and House Subcommittee on Aviation, who stated that the current budgetary environment and FAA’s efforts to develop the Next Generation Air Transportation System present the Agency with an opportunity to realign its network of facilities. They asked that, along with FAA’s plans, the OIG specifically examine the cost drivers and technical challenges related to this effort. Accordingly, our audit objectives are to assess: (1) FAA’s current plans for realigning and consolidating its air traffic facilities; (2) FAA’s process for evaluating the feasibility and cost effectiveness of these plans; and (3) the major cost, technical, and workforce challenges involved with realigning and consolidating air traffic facilities.

Click to view the full FAA Facility Consolidation Audit Announcement .pdf

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    Boeing Production Rate Increase

    SEATTLE, May 17 — Boeing (NYSE: BA) today announced that it will increase production rates on the Next-Generation 737 program to 34 airplanes per month in early 2012. The planned rate increase is aimed at satisfying continued strong demand for the Next-Generation 737. In addition, the company continues to study further potential 737 rate increases, given continued customer demand.

    “With over 5,200 sold to date, the Next-Generation 737 is the workhorse in our customers’ fleets around the world,” said Boeing Commercial Airplanes President and CEO Jim Albaugh. “Even through the global economic downturn, our diverse 737 backlog has remained very strong. Increasing the 737 production rate is the right thing to do to meet the growth and fleet replacement needs of our customers.”
    The current production rate on the 737 program is 31.5 airplanes per month. Suppliers for the 737 program are prepared to support the rate increase. The production rate decision is not expected to have a material impact on 2010 financial results.

    “The global economy continues to recover this year and we believe that airlines will return to profitability in 2011,” said Randy Tinseth, vice president of Marketing for Boeing Commercial Airplanes. “We believe that there will be an increased demand for airplanes – especially in the market served by the Next-Generation 737 – in 2012 and beyond.”
    With more than 2,000 unfilled orders from more than 80 customers around the world, the Next-Generation 737 is the newest and most technologically advanced airplane in its class. Airfinance Journal’s investors’ and operators’ poll consistently ranks the Next-Generation 737 as the most preferred airplane in its class due to its wide market base, superior efficiency and lowest operating costs.

    Forward-Looking Information is Subject to Risk and Uncertainty
    Certain statements in this report may be “forward-looking” within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “expects,” “intends,” “plans,” “projects,” “believes,” “estimates,” “targets,” “anticipates,” and similar expressions are used to identify these forward-looking statements. Forward-looking statements are based upon assumptions about future events that may not prove to be accurate. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Actual outcomes and results may differ materially from what is expressed or forecasted in these forward-looking statements. As a result, these statements speak to events only as of the date they are made and we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by federal securities laws. Specific factors that could cause actual results to differ materially from forward-looking statements include, but are not limited to, statements we make regarding our guidance relating to future financial and operating performance, the effect of economic conditions in the United States and globally, and general industry conditions as they may impact us or our customers, as well as the other important factors disclosed previously and from time to time in our other filings with the Securities and Exchange Commission.

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    AerCap Opens Representative Office in Abu Dhabi

    AMSTERDAM, Jan. 19, 2011 – AerCap Holdings N.V. (NYSE: AER) today announced the opening of a representative office in Abu Dhabi, United Arab Emirates.

    AerCap’s new Abu Dhabi office will be managed by a team of highly skilled aviation industry professionals with extensive experience in the region and will be led by Simon McLean, previously Chief Operating Officer of Waha Leasing PJSC.

    The Abu Dhabi team will help expand AerCap’s activities in the Middle East/North Africa region, which is one of the world’s fastest growing aviation markets. AerCap has a total fleet of 350 aircraft including fourteen aircraft on lease to seven airlines in the Middle East/North Africa region.

    About AerCap
    AerCap is the world’s leading independent aircraft leasing company. AerCap also provides engine leasing, aircraft management services, aircraft maintenance, repair and overhaul services and aircraft disassemblies. The company has over $10 billion of total assets including committed purchases and focuses on new, fuel-efficient narrowbody and small widebody aircraft. AerCap is headquartered in The Netherlands and has offices in Ireland, the United States, China, Singapore, the United Kingdom and in The United Arab Emirates.

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    NTSB REQUESTING COMMENTS ON PROPOSED PROCEDURAL RULES FOR AVIATION CERTIFICATE ENFORCEMENT CASE

    The NTSB has issued an Advance Notice of Proposed Rulemaking (ANPRM) seeking comments from the public regarding amendments to its procedural rules dealing with review of Federal Aviation Administration (FAA) certificate actions and its rules concerning applications for fees and expenses under the Equal Access to Justice Act.

    The NTSB listed three main reasons for its undertaking a review of 49 CFR parts 821 and 826: (1) to respond to parties’ suggestions for changing the rules; (2) to update rules that may be outdated; and (3) to modernize the rules to accommodate prospective electronic filing and document availability in case dockets.

    The ANPRM indicates that certain parties have approached the NTSB concerning emergency certificate actions, which involve cases in which the FAA issues an immediately effective order revoking or suspending a certificate. In such cases, the NTSB’s procedural rules allow a party to challenge the emergency status of the case, and provide an expedited timeline for doing so. The rules currently require the NTSB’s administrative law judges to “consider whether, based on the acts and omissions alleged in the Administrator’s order, and assuming the truth of such factual allegations, the Administrator’s emergency determination was appropriate under the circumstances.” The ANPRM invites public comments concerning this standard of review, as well as other aspects of the emergency review process, such as whether a hearing should occur to allow parties to provide evidence concerning whether the case should be treated as an emergency. The ANPRM further invites comments concerning whether parties should have an opportunity for another level of appeal to challenge the emergency status determination.

    In addition, the ANPRM also solicits comments concerning electronic filing of documents for aviation certificate cases, and requests specific consideration as to whether such electronic filing is feasible for individuals who opt not to retain an attorney. The ANPRM further seeks feedback concerning whether any outdated information exists in the current procedural rules.

    The 60-day comment period for the ANPRM concludes on February 22, 2011. The ANPRM may be accessed at the following link: http://origin.www.gpo.gov/fdsys/pkg/FR-2010-12-22/pdf/2010-32056.pdf.

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    Phillips Service Industries Acquires Skytronics, Inc.


    LIVONIA, Mich., Feb. 21, 2011 /PRNewswire/ — Phillips Service Industries, Inc. (PSI), a global manufacturing and service corporation that serves a wide variety of industries with its diverse collection of technology-based companies, announced today that it has acquired Skytronics, Inc., a leading aircraft component manufacturer and maintenance repair organization located in El Segundo, CA.

    Skytronics specializes in the manufacturing, repair, overhaul and sales of aircraft ball screw and actuator assemblies and the transmissions that drive them. Skytronics is an OEM that also holds license parts manufacturing authority on stabilizer ball screws installed on Boeing 727/737/747/757/767 aircraft, as well as a distributor of both new and overhauled aircraft components.

    Established in 1956, Skytronics has been an FAA-approved Repair Station for over 50 years, with current FAA, EASA, CAAC and Boeing approvals. Skytronics has expanded its capabilities to include Boeing flight controls, horizontal stabilizer trim actuators (HSTAs), trim tab actuators, flap transmissions and leading-edge actuators. Skytronics also manufactures, repairs, overhauls and sells ignition harnesses, alternators, regulators and ignition lead conduits that are used in general aviation.

    The Skytronics acquisition further expands PSI’s reach into the aerospace market. Other PSI subsidiaries that serve the aerospace industry include Beaver Aerospace & Defense, Sciaky, Inc., Mountain Secure Systems, Evana Automation Specialists and PSI Repair Services.

    “The aerospace industry is very significant to PSI,” said Scott Phillips, CEO and President of Phillips Service Industries, Inc. “The Skytronics acquisition provides additional products and services to our valued customers.”

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  • NTSB SENDS TEAM TO ASSIST GOVERNMENT OF JAMAICA IN AVIATION ACCIDENT

    NTSB Advisory
    National Transportation Safety Board
    Washington, DC 20594
    December 23, 2009

    The National Transportation Safety Board dispatched a team of investigators to assist the government of Jamaica in its investigation of an accident involving an American Airlines B737-800 (N977AN) yesterday evening. At approximately 10:00 pm local time, the aircraft, operating as flight 331 from Miami, Florida, overshot the end of the runway while landing at Kingston, Jamaica in heavy rain, crossed a road and stopped on a beach. There were 148 passengers on board, and 6 crew. Multiple injuries have been reported.

    NTSB Chairman Deborah A.P. Hersman has designated senior air safety investigator John Lovell as the U.S. Accredited Representative. The U.S. team will also include five NTSB aviation specialists as well as technical advisors from the Federal Aviation Administration, American Airlines, Boeing Aircraft Company, and GE Aircraft Engines.

    The investigation is being conducted by the government of Jamaica Civil Aviation Authority, which will release all information on the progress of the investigation. The agency’s phone number is (876) 960-3965; the agency’s email address is jcivav@toj.com.

    ###

    NTSB Media Contact: Keith Holloway
    (202) 314-6100
    hollowk@ntsb.gov

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    Ethiopia Airlines Press Release

    Ethiopian Refutes Unfounded Reports In Relation to ET-409

    Ethiopian Airlines continues to refute any suggestions or conclusions made in reference to the recent accident of ET409 until the official results of the investigations are publicly released.

    However, quoting an unknown source, AFP reported on May 5, 2010 that the accident of Flight ET 409 was caused by pilot error based on preliminary report. AFP acknowledged that the report was “preliminary” and that it “has not been made public.” AFP also quoted the Lebanese Information Minister as saying that he “could not comment on the preliminary findings before the release of the final report…” Furthermore, AFP admitted that “none of the investigators would comment on the preliminary findings,” including the American and Ethiopian investigators. Therefore, Ethiopian fails to comprehend the coverage of the account by AFP in light of all the above information.

    Ethiopian Airlines has consistently maintained that it will not entertain any speculations or premature conclusions until the official findings are released and made public by the professionals designated to carry out the investigation in accordance with established international norms and principles. Ethiopian strongly believes that any release of information contrary to this process is not only unproductive but also misleading to the general public.

    During the past sixty plus years, Ethiopian has become one of the continents leading carriers, unrivalled in Africa for its efficiency, safety and operational success. It prides itself from the high standards of its workforce including pilots, technicians and many other highly qualified personnel. Professionals in any position at Ethiopian must undertake extensive training and pass stringent evaluation and scrutiny prior to their assignments. These requirements are consistent with international aviation standards of which Ethiopian is a dedicated subscriber and certified member.

    Any characterization of our pilots contrary to the foregoing is pure fabrication and cannot stand the test. Therefore, the assertions that the cockpit crew had limited experience on B737-800 and that the pilot had 200 hours of flight time in one month is far from the truth.

    Individual(s) spreading unfounded information are heartless in that they do not care about the feelings of the families and relatives of the victims in addition to misleading the public at large. We urge the media to refrain from publishing such information and patiently wait the release of the preliminary findings of the investigation.

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