| December 5, 2008 | News for the commercial aviation industry |
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- Boeing to announce six-month delay on 787, sources say
Boeing Co. will announce later this month that deliveries of its 787 Dreamliner will be delayed by at least another six months, The Wall Street Journal reports. That would mark the fourth such announcement for the company's advanced jet, pushing the earliest deliveries into summer 2010 -- two years behind schedule. Ripple effects are being felt throughout the company, as projects such as the updated 747 are delayed because of resources devoted to the 787. Though a Boeing spokesman refused to comment, an unnamed source told the Journal: "The real issue right now is that Boeing wants to make sure it has a believable date before going back to the customers with more bad news." The Wall Street Journal (tiered subscription model)
(12/5)        
- Judge blocks Mesa plan to use Aloha name
A Honolulu judge has temporarily blocked an effort by Mesa Air Group to re-brand its inter-island carrier as Aloha Airlines. Because many former workers at bankrupt Aloha blame Mesa for their employer's demise, U.S. Bankruptcy Court Judge Lloyd King said the sale of the Aloha name would be insensitive. King said he would continue the matter until until Feb. 19 in order to hear further comments from both sides. Honolulu Star-Bulletin
(12/4), Travel Weekly
(12/4)        
- Agent groups oppose bid by American, British Airways
ASTA and the Interactive Travel Services Association are urging the Department of Transportation to gather additional information from American Airlines, British Airways and their Oneworld partners regarding how antitrust immunity will affect those in the distribution channel. "As with other grants of antitrust immunity, travel agents could be harmed by the combined market power of the joint applicants," the groups said in a petition to the DOT. Travel Weekly
(12/4)        
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| Energy Bulletin |  |  |
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- Synthetic fuels gaining altitude, FAA expert says
Mark Rumizen, the FAA's leading expert on alternative fuels, says the U.S. is finally getting international attention for its efforts to develop jet fuel from sources such as coal, weeds and algae. That research is being spurred by the Commercial Aviation Alternative Fuels Initiative, which seeks to bring airlines, fuel companies and standards bodies together to help make synthetic fuels commercially viable. Mass High Tech (Boston)
(12/5)        
| Inside Aviation |  |  |
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- Runway de-icing fluid shortage could cause flight delays
A 99-day strike by potash mine workers in Canada could affect travelers in the U.S. this winter, according to the U.S. government, due to a severe shortage in a runway de-icing fluid that uses potassium acetate that comes from the mines. The strike ended last month, but chemical manufacturer Cryotech said it would be able to produce only 2 million to 3 million gallons of the fluid this winter, compared to 9 million last winter. "It is possible that runways may not be able to be maintained to the same level as previous years during winter storms," the FAA warned in a memo to airlines. Airports do have alternative de-icing chemicals to use for maintaining runway surfaces, but they are more expensive. USA TODAY
(12/5)        
- Moody's turns negative on airline outlook
Despite the sharp drop in fuel prices, Moody's Investors Service on Thursday issued a negative outlook for the global airline industry. Moody's said the "headwind" of declining demand "will limit airlines' ability to get the most out of their capacity-reduction programs," while tighter credit and liquidity pressures are "likely to constrain growth and fleet renewal initiatives." Forbes/The Associated Press
(12/4)        
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 | The Buzz(CORPORATE ANNOUNCEMENTS)
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| Regulatory Update |  |  |
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- DOT holds seminars on slot auction process
The Transportation Department will hold a seminar today on how to bid for airport slots as it presses ahead with its controversial auction plan. DOT officials met yesterday with about 80 airline representatives to explain how the government would determine which slots to confiscate for the sale, which is scheduled for Jan. 12. "The last thing the administration should do in its final days -- especially in light of the flagging economy -- is inconvenience passengers who have already booked flights, raise their fares, threaten jobs, and undermine the hundreds of millions in investments airlines have made in the New York-area market," said Delta Air Lines in a statement. Bloomberg Businessweek/The Associated Press
(12/4), NYTimes.com
(12/4)        
- No major changes to foreign ownership rules, says State Department
A U.S. negotiator is warning European carriers not to expect major changes to airline foreign ownership rules, at least in the short term. John Byerly said Thursday he doesn't think the U.S. will accede to European demands for liberalized ownership and cabotage rules in the ongoing "second-stage negotiations" to the original open skies treaty. A European official warned that the negotiations "have to succeed by 2010," or the whole agreement could be scuttled. But Byerly said he doubts that will happen. "In my way of thinking, it's just nutty to think we're going to take the whole trans-Atlantic structure down because one side doesn't get its way," he said. Air Transport World
(12/5)        
| Industry Trends |  |  |
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- Pressured by unions, three airlines drop voluntary safety program
Safety advocates are criticizing the waning of the Aviation Safety Action Program, an initiative designed to help carriers and government regulators identify potential safety hazards by allowing pilots to report their own mistakes without fear of punishment. The voluntary program has been shown to help lower accident rates, but American Airlines, Delta Air Lines and Comair have all dropped out of the program following disagreements with their unions, which accused the companies of unfairly punishing pilots. "The relevant players need to do whatever is necessary to ensure that these programs remain active and vital safety tools," says National Transportation Safety Board member Robert Sumwalt. USA TODAY
(12/4)        
- Cincinnati traffic drops 50% as businesses seek lower fares
With business travelers following the lead of leisure travelers in seeking out cheaper flights, Cincinnati/Northern Kentucky International Airport is bleeding customers to lower-cost competitors like Dayton, Ohio, and Louisville, Ky. A survey by the Cincinnati Enquirer found that three-fourths of local companies are using competing airports more than ever. "Unless you're suffering from delusion, you realize that the Cincinnati airport is now really in Dayton," says one aviation expert. At its peak in 2005, more than 22 million passengers passed through CVG airport. "We'll be lucky if we hit 10 million this year," says Lawson Walker II, chairman of the Kenton County Airport Board. The Cincinnati Enquirer
(12/5)        
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Avionics/Electrical Engineer | Southwest Airlines | Dallas ,Texas |
Director Crew Services | JetBlue Airways | Forest Hills, New York |
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| SmartQuote |  |  |
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 | I don't possess a lot of self-confidence. I'm an actor so I simply act confident every time I hit the stage."
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Founded in 1936, the Air Transport Association of America, Inc. (ATA) is the nation's oldest and largest airline trade association, representing the leading U.S. airlines. ATA airline members and their affiliates transport more than 90
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www.airlines.org.
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