From the editors of Aviation International News

This issue sponsored by Jet Professionals and Cutter Aviation.
February 10, 2009

Industry Consultant Sees Bizav Recovery Next Year
Sparta, N.J.-based Brian Foley Associates president Brian Foley foresees a recovery of the business aviation industry in the middle of next year, but not before unavoidable pain. “There are vulnerable companies that are young, leveraged or lack sufficient capital to ride out a prolonged downturn,” he said, adding that recent start-up air taxi, charter and fractional programs are likely to be “short lived.” However, Foley predicts that there will likely be some shakeups even at established, though weaker, business aviation companies. He lists single-product OEMs as being particularly at risk. Meanwhile, he said, FBOs, maintenance and other aviation service providers “will also find 2009 difficult,” especially in light of reports that “normal” business jet flight activity is down 30 to 40 percent. The good news is that he believes this activity decrease is only temporary until financial markets stabilize. “The manufacturing slowdown will quickly trickle down the supply chain, which will be one of the last segments to recover,” Foley noted. “Things will have settled by mid-2010 and the industry will once again be poised for growth, albeit slower than we’ve been accustomed to in the recent past.”

Brazilian Prosecutors Appeal Dismissed Pilot Charges
Prosecutors in Brazil are appealing the dropping of some accusations in the 2006 midair collision between a Gol Airlines Boeing 737-800 and an ExcelAire Embraer Legacy 600. The airliner crashed into the Amazon forest, killing all 154 aboard, while the business jet made an emergency landing at an Air Force base. Judge Murilo Mendes recently dismissed accusations that the American Legacy pilots, Joe Lepore and Jan Paladino, were negligent in not taking emergency steps for communications loss, ruling that nothing suggested an emergency situation. He also dropped charges against two of the air traffic controllers involved, accepting as normal the fact that they weren’t alarmed by another failure of an ATC system “characterized…by poor functioning, by repeated defects.” The judge’s downgrading of charges against another controller was not appealed, leaving no defendant facing a penalty greater than four years. Additionally, last week the Supreme Court in Brazil ruled that defendants can’t be jailed until all appeals are exhausted, a process that can take more than six years. Even if convicted, there is now little chance any of those accused in the accident will serve time.

Alphabets Petition TSA for LASP Rulemaking Group
NBAA, AOPA, the General Aviation Manufacturers Association (GAMA) and the Experimental Aircraft Association (EAA) late last week sent a joint letter to the TSA urging the agency to establish a rulemaking committee to address questions and concerns raised by industry and government about the TSA’s proposed Large Aircraft Security Program (LASP). The letter, sent to TSA acting Administrator Gale Rossides, reads: “Given the [LASP] proposal’s substantial lack of data regarding the effect of this program on general aviation, and TSA’s numerous requests for critical information from the public, we are formally requesting that TSA begin the steps necessary to establish a rulemaking committee. Creation of a dedicated work group would allow industry and the TSA to work together on requirements that would simultaneously enhance general aviation security and facilitate general aviation operations.” NBAA president and CEO Ed Bolen first suggested the formation of such a committee at the January 6 LASP hearing in White Plains, N.Y. “The business aviation community is committed to security…[but] we need to get this right,” he said last week. “I look forward to working with TSA officials on the formation of a rulemaking committee, so that we can effectively address questions and concerns.”

NIAR Partners with Bombardier on Learjet 85
Bombardier Aerospace has tapped the National Institute for Aviation Research (NIAR) at Wichita State University to provide material and structural testing and certification for the new Learjet 85. NIAR will be involved in FAA certification of the all-composite midsize twinjet, ranging from small coupon sample testing to structural certification of full-scale components. The move comes roughly five months after Bombardier terminated its contract for composite structures work with Grob Aerospace, which filed for insolvency in the fall. NIAR’s composite expertise will help Bombardier to complete the detail design and manufacturing of all primary and secondary structures for the Learjet 85 without Grob. The Composites and Advanced Materials Laboratory at NIAR specializes in developing low-cost manufacturing processes while providing thermal, mechanical and analysis tools. As the lead institution in the FAA’s Center of Excellence for Composites and Advanced Materials, NIAR performs a large majority of the FAA’s composite research and has worked with numerous aircraft manufacturers to develop composite materials. NIAR is also the headquarters for the NASA National Center for Advanced Materials Performance.

Sikorsky Takes First S-76D Up for a Whirl
Sikorsky’s S-76D made its first flight on Saturday at the company’s West Palm Beach, Fla. test facility. The helicopter taxied, hovered, made hover turns and achieved a top forward speed of 40 knots during the 30-minute flight. The flight came three years after Sikorsky began development of the latest S-76 variant. “The next generation of the S-76 helicopter begins today,” said program manager Jason Durno. “The S-76D helicopter brings Sikorsky’s popular S-76 to the next level in performance.” According to Sikorsky, the S-76D will feature upgraded Thales TopDeck avionics and autopilot, all-composite main rotor blades with optional ice protection and new Pratt & Whitney Canada PW210S engines. It will also have a quiet mode for “enhanced public acceptance,” as well as an increase in useful load and more range than the S-76C++. Sikorsky plans to certify the S-76D and begin deliveries next year. The aircraft will be produced at its Keystone facility in West Chester, Pa. Sikorsky said it has “delivery position agreements” for 100 of the new helicopters
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Boeing Reports Further Fourth Quarter Losses

 
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Also Noted...

House Transportation Committee chairman James Oberstar (D-Minn.) and House aviation subcommittee chairman Jerry Costello (D-Ill.) yesterday introduced a new FAA reauthorization bill with no user fees. The Federal Aviation Administration Reauthorization Act of 2009, if passed, would authorize nearly $70 billion for the agency for four years. The aviation subcommittee is holding a hearing on FAA funding tomorrow.

Citing falling aircraft orders and deliveries due to the global recession, Vero Beach, Fla.-based Piper Aircraft today laid off another 300 workers, leaving about 650 employees still on the job. The aircraft manufacturer will also have one-week, company-wide shutdowns (unpaid for all staff, including management) in April and July to avoid inventory build up and to provide time to assess “rapidly changing market conditions.” It further warned that more cuts might be necessary if market conditions continue to deteriorate.

Genoa, Italy-based Piaggio Aero Industries last week appointed Alberto Galassi as the company’s new CEO. He replaces José di Mase, who will continue to serve on Piaggio’s board and executive committee. Galassi has been with Piaggio since 2000 and played a “crucial role” in the company’s relaunch of the Avanti turboprop twin. He also facilitated the recent partnership with Mubadala and Tata, which is believed to have given the aircraft manufacturer sufficient capital to launch its long-planned business jet.

Very light jet air-taxi start-up Bikkair shut down last week, less than one month after the Rotterdam, Netherlands-based company began service with a Cessna Citation Mustang. In a statement, Bikkair said the current credit crisis has blocked access to necessary growth capital. “Without access to growth capital we are unable to make any other decision but to discontinue our operations,” company founders Leendert and Bas Bikker said.

If efforts by Textron to generate an additional $1 billion in cash in 2009 are unsuccessful, the company would consider sale of one or more of its “core assets,” a list that includes Bell Helicopter and Cessna Aircraft. The strategy was announced earlier today by Textron chairman and CEO Lewis Campbell, who described Bell as “a success story by any measure,” and noted that at least three companies might fight over the helicopter manufacturer. He added, however, that while there might be inquiries, there is no “for sale” sign out on Textron's manufacturing subsidiaries.

The NTSB is continuing its investigation into the fatal crash of a PHI Sikorsky S-76C++ near Morgan City, La. on January 4. Teardown and tests of all critical components thus far have revealed no anomalies, but the CVR picked up a “loud noise” at the time the helicopter abruptly lost torque in both engines. The remaining 12 S-76s operated by PHI for Royal Dutch Shell in the Gulf have been grounded at the customer’s request while the investigation continues.


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