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October 2008 Archives

Buried deep in the bowels of my recent Airline Business feature about how airlines can harness off-board and onboard mobile phone connectivity, British Airways planning and innovations manager Chris Carmichael is quoted as saying that the following scenario would be beneficial to passengers:

"Your meeting is overrunning, you whip out your Blackberry under your desk, check out your flight, change to the next flight, check-in and get your seat sorted all without leaving the meeting room. It sounds quite attractive."

BA check-in.JPGChris and his team have been working fast and furious on making this a reality. And his comment to me was a gentle hint at what was about to come.

Yesterday, BA introduced what it claims is a "first-of-its-kind capability", allowing its customers to check in for their flights from any Web-enabled mobile device across global markets in 11 different languages.

"No other carrier has provided mobile check-in at this global level," says BA. "This is a perfect service for global business travellers, and is a continued validation that with the rise of the iPhone and Google phone mobile web adoption is taking off."

By logging on to www.ba.com/mobile with any Web-enabled mobile device, customers can access the BA timetable, as well as select seats and check-in individuals, groups and families for departure or return flights in real time.

The site is powered by Usablenet, which has also developed mobile sites for many major airlines including American Airlines, JetBlue, Northwest Airlines and US Airways.

You may recall that we gave BA a big ole gold star for another recent innovation. The carrier made its application for Apple iPhone users available for free at the iTunes store, arming folks with real-time flight arrival and departure information, the full BA timetable, and enabling access to the carrier's web site. 

This is, to my knowledge, a move that hasn't yet been duplicated by other airlines (although you can now find a number of basic iPhone web apps from airlines and travel companies).

Here at RWG we like to get a little graphic sometimes. And so a big thanks to BA for sending along the pics above right and below.

BA check-in 2.JPG 

The Northwest page that says it all...

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Fast finger action over at Northwest's IT dept.

Check out www.nwa.com/corpinfo/profi/organ/

 

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Last week, when Bluebox slung a little good-natured mud by suggesting that Pansonic and Thales perhaps "weren't up to the challenge" of providing wireless IFE on the Boeing 787, I felt compelled to speak to the two hardware giants about whether or not wireless IFE is now viable, and if it has a place in new aircraft programmes, say for instance, the Airbus A350. Oh yes, and what they each think of Bluebox.

First up, Panasonic. eX2 Montage - Panasonic.JPGMy interview with the manufacturer's director of product marketing Cedric Rhoads focused on three main questions. Here is the first of my queries to Cedric in blue and the first of his oh-so-interesting responses in a box.

1) Is Panasonic still working on wireless IFE solutions (it appears that Airbus is pretty keen to have something for the A350)?

"Whether there is a role or market for wireless IFE is undetermined at this time. We believe that Airbus is not necessarily focused on a wireless IFE solution as much as they are on having an entry-level solution that is easier for Airbus to integrate and deliver. An entry-level solution serves a segment of the market that wants IFE, including AVOD, yet they're willing to sacrifice certain functionality, features and customization in exchange for a lower price and a shorter production configuration cycle."

"Wireless technology has certainly matured to the point where some of the obstacles have been removed. But there are certain trade-offs that you must make. Today's technology does not offer sufficient bandwidth, especially for large widebodies, to support wireless on-demand distribution.  It's just not an appropriate solution given the expectation our customers have expressed to us.  Do I think it's going to be a long term solution?  Perhaps, for some segments of the market, yet the limitations remain, thus, it will exist in parallel to wired systems."

"We were successful in developing a wireless system from a technical standpoint; the design worked, and worked well. We filed more than 25 patents in this design area. But again, wireless distribution simply required too much sacrifice in functionality."

"Panasonic has a solution for the A350. We're adapting the X Series product line to the requirements of the A350's specifications as well as market demands."

 

Oops a daisy! That's what US Airways' financial folks might have said after realizing there is a mistake in the carrier's quarterly report to the SEC. The filing, which holds a number of interesting revelations including a delay to A350 deliveries, says US Airways intends to achieve a fourth quarter domestic mainline capacity reduction of 5% to 7% and a 2009 domestic reduction of 4% to 6%.

US Air 757.jpgThe figures differ from US Airways' previously-announced plan to reduce fourth quarter domestic mainline capacity by 6% to 8% year-over-year, and domestic mainline capacity for 2009 by 7% to 9% from 2008 levels.

In an 8K filing this morning, US Airways clarifies the matter, saying the word "domestic" was "inadvertently inserted in referring to the fourth quarter and 2009 total mainline capacity reductions".

The company says fourth quarter 2008 domestic mainline capacity will be down 6% to 8% percent while Express capacity will be down 1% to 3% percent for the same period. For 2009 domestic mainline capacity will be down 8% to 10% percent while Express capacity will be down 5% to 7%  for the same period.

Say what? So capacity cuts will in fact be greater than previously estimated for full year 2009? Yes. And 2010 will see further fleet cuts too, says US Airways in its quarterly filing. Those little percentage points makes a big difference!

So the trial of Lumexis' new seat-back IFE system on a US Airways Airbus A320 may have been delayed, but that shouldn't stop us from getting a good look at it now. Lumexis was in attendance at the recent WAEA exhibition in Long Beach. Here are some Lumexis shots from the show. Sweet!

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Lumexis 2.JPG Lumexis 3.JPG Lumexis 5.JPG

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A Bombardier testbed aircraft equipped entirely with an all-electric braking system has executed its first flight. Bombardier's Global 5000 flying testbed aircraft was modified by removing its hydraulically actuated brake-by-wire control system and replacing it with Meggitt's EBrake suite.

Check out the full story here. Key info from my conversation with Bombardier:

Although the manufacturer used the Global 5000 for the test, it does not plan to equip its business jets with an all-electric braking system. Rather, Bombardier believes the technology is more applicable to commercial aircraft, says a spokesman for the company.

Bombardier has said it intends to use electric brakes on its 110/130-seat CSeries aircraft. However, it has not confirmed if it will choose Meggitt's system, notes the spokesman.

 

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Is the Gov. of my dear home state of Pennsylvania, Ed Rendell, under consideration Governor_Edward_G__Rendell.jpgby the Obama crowd for an appointment to US transportation secretary? 

Well, he says he'd like the job. And recent hill chatter suggests he is a serious contender.  

The following stories suggest the same.

http://theoverheadwire.blogspot.com/2008/10/transportation-secretary-short-list.htm

http://www.pennlive.com/midstate/index.ssf/2008/06/rendell_volunteers_to_serve_in.html

http://news.yahoo.com/s/cq/20081005/pl_cq_politics/politics2971165

But would Ed make a good DOT chief? As The Economist pointed out in its 26 June issue, "Ed Rendell, Arnold Schwarzenegger and Michael Bloomberg, the political juggernauts in Pennsylvania, California and New York City respectively, have launched a coalition to make infrastructure a national priority".

Respectable, respectable. I only hope this trinity's plan includes the Pennsylvania Turnpike, on which I am a regular disgruntled traveller. (Pennsylvania is frequently cited for having some of the worst roads in the nation.) 

Now where is our own little growing list of possible DOT heads? Here it is. We've got Mary Peters, Fred Smith and Bob Crandall rumoured to be on the McCain shortlist, while Ed Rendell, Jane Garvey and Linda Daschle are rumoured to be on Obama's shortlist. The Overhead Wire blog lists other folks on either side.

(Rendell photo at the following link www.flickr.com/photos/75148837@N00/486534193/

Some big news out of US Airways today. But you've got to look hard to find it. Go to page 56 of the carrier's latest SEC filing. That's where the Star Alliance member reveals its plan to delay the start of delivery of its 22 A350 XWBs until 2015 (as well as a few other gems). Check out my story now running on Flight.

Is this the first A350 delivery delay by a carrier? And does it foretell of things to come?

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Chicago is the place for pilots next week

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Louis Smith knows a thing or two about the aviation industry. A retired Northwest Airlines captain, who completed his career flying the McDonnell Douglas DC-10 on international routes, Louis heads up FLTops.com, a web-only career planning service for professional pilots.

I had the good fortune of meeting Louis earlier this month at the Boyd conference in Aspen. And so when I recently wrote about JetBlue Airways and Cape Air's new pilot recruitment programme for Flight, I asked Louis to give his thoughts. JetBlue A320.jpg 

First, some details about the so-called Aviation University Gateway programme, which identifies potential future Cape Air and JetBlue pilots at Embry-Riddle Aeronautical University and the University of North Dakota (UND).

Under the initiative, participants intern at Hyannis, Massachusetts-based Cape Air - which operates Cessna 402 aircraft - and then serve as an instructor at their respective flight school.

Following this process, candidates will fly with Cape Air for at least two years and then be eligible for a final interview at JetBlue, which operates Airbus A320s and Embraer 190s.

From a broad perspective, Louis believes the programme is "a very good resource strategy and necessary to build the supply of our next generation of pilots". However, to be really effective, he says:

"The programme should contain more than a guarantee of an interview. In today's slow pilot job market, an interview has considerable value. When the pilot hiring market later heats up, the corporations will need to create a hiring pool based on performance, not just a guaranteed interview."

No doubt there will be some interviewing going on next week in Chicago, where FLTops.com's next pilot job fair will kick off on 28 October. Check out the site here, and note the "dog" option.

Greyhound.JPGPilots who take the Greyhound bus to Chicago will get free admission to the "low time" session, which will host recruiters from US regionals American Eagle, Colgan Air, Mesaba and Pinnacle. "Just show us your Greyhound ticket and you're in the hunt," says the firm.

The job fair's "high time" room will host recruiters from Air India, All Nippon Airways and Delta Air Lines, among others.

Delta, you say? Why yes indeedy. The carrier, which is putting the finishing touches on a merger with Northwest Airlines, says it is "proudly recruiting pilots for first officer positions".

As a new Delta first officer, "you have an opportunity to initially be assigned to a Boeing MD-88/90, a 737NG, or even a 757/767 aircraft type among our fleet of more than 440 aircraft", it adds.

Let's just hope that demand doesn't drop too much in the coming months. Delta management recently warned that a severe dive in demand could prompt the carrier to cut its 767 fleet.

Key quotes from Delta CEO Richard Anderson:

"We can get the cost out quickly. We demonstrated that earlier in the year when we took about 15 airplanes out. We go very diligently and really attack all of the fixed costs that go with each one of those airplanes. I think we've demonstrated that we'd do that and we'd do it again," says Anderson.

He adds: "Given that the capital ownership of the 767-300 is as low as it is, we don't have to bring those airplanes back and won't bring those airplanes back to the domestic system just to add capacity for the sake of adding capacity."

Maybe this is geek squad stuff, but Brazilian start-up Azul is certainly warming to the idea of operating a sizeable fleet of Embraer 190s.

Earlier this year, the brainchild of JetBlue founder David Neeleman ordered 36 118-seat Embraer E-195s (which will feature LiveTV satellite television).

David Neeleman.jpgEmbraer has since revealed that the 36-strong order was altered during the third quarter. Instead Azul is now in the books for 31 E-195s and five brand new E-190s from the airframer.

This is in addition to the six E-190s being leased by Azul (two directly from JetBlue and four from Jetscape, which has acquired from JetBlue four E-190 deliveries).

And so, using some very simple addition that allowed me to squeak by in High School maths, it is evident that Azul plans to operate a fleet of at least 11 E-190s.

The carrier doesn't make mention of this apparent change in strategy on its web site. Indeed, Azul still indicates it intends to fly 36 E-195s.

Will Azul convert its entire order for E-195s to smaller-capacity E-190s? I can't rightly say. As recently as last month, Neeleman told me that Azul would launch in early 2009 with a mixture of E-190s and E-195s.

Just don't change the LiveTV plan, okay?  

A lovely little nugget just emerged from US Airways' third quarter earnings conference call (and it has nothing to do with the airline's massive net loss or its new financing agreement with Airbus and others).

Lumexis graphic.JPGCEO Doug Parker revealed the carrier is working with TWO vendors on a seat-back in-flight entertainment (IFE) system to replace drop-down IFE that on 1 November will be turned off and subsequently ripped out of the domestic Airbus A320 family fleet (the carrier's Boeing 737s are not equipped with IFE). 

As previously reported here, US Airways has been working with Lumexis to trial the company's fiber-to-the-screen IFE system. Last month that trial - which was scheduled to begin by the end of this month - was put on hold after Lumexis ran into a flammability issue on one of the items in the system's installation.

Doug did not mention Lumexis specifically today, but he said two vendors are involved. Hmmm, I wonder who else is involved? Or did Doug mis-speak? He says trials will begin in the first quarter.

Regardless of the IFE system selected by US Airways for its domestic aircraft, I think it's safe to say you won't be getting any freebee IFE in economy class.

US Airways asked that the Lumexis seat-back screens include a credit card swipe so that it has the ability to sell pay-per-view movies, drinks and food, and possibly initiate catalogue sales.

And today the carrier championed its ancillary revenue gains, saying it added nearly $60 million in additional revenue from such programmes as food/drink sales - including its popular water charge - during the third quarter.

(Lumexis graphic from www.lumexis.com

Travel expert Johnny Jet is running a killer video of his two-hour VIP flight on Qantas' new Airbus A380. Lucky duck. Qantas ambassador John Travolta and Australian singer Olivia Newton-John were also aboard the flight. Check out Johnny's web site at www.johnnyjet.com for more pics from the flight.

On a recent Southwest Airlines flight from Denver to Baltimore, it was clear to me that the carrier's cashless cabin strategy is working well. Flight attendants were busily swiping credit cards for those passengers who enjoy a little more kick to their glass of coke. One friendly attendant told me that the carrier has sold over 1,000,000 alcoholic beverages to passengers since the programme's 9 September launch. Southwest hasn't confirmed this figure, but says it has "definitely seen an increase in sales".

Cashless Cabin.JPGIn any case, all this great cashless action made me wonder - what about the credit card transactions that don't go through? The GuestLogix credit card devices used on board Southwest and other carrier's flights do not conduct real-time transactions....yet.

And so, as one would expect, there are probably more than a few instances where Southwest doesn't get paid when it lands the aircraft and completes the transactions.

A Southwest spokesman tells me that the carrier has had "so few" credit card declines that it really isn't a problem. However, the carrier has a few options available to it should you, errr someone, contemplate sliding a card that would otherwise be rejected on the ground.

Depending on the situation, says the spokesman, Southwest can either contact the customer directly or contact his or her credit card company. It's not clear if Southwest has taken the time and energy to do either. 

What is clear, however, is that Southwest knows that it isn't ideal that thirsty travellers can currently abuse the system by running otherwise unusable cards. And the airline has a plan of action.

RWG can reveal that Southwest is exploring how it might harness in-flight connectivity to facilitate real-time transactions.

A trial of Row 44's Ku-band solution on Boeing 737 aircraft is forthcoming and so real-time transactions are "definitely something we're looking at and considering", confirms the Southwest spokesman.

American Airlines' recent order for up to 100 Boeing 787s provided the weary airframer with a respite - albeit brief - from the near constant flow of negative news pertaining to the machinists' strike and the potential that this industrial action will delay the twinjet's delivery....again.

Lufthansa CSeries.jpgA nice firm CSeries order would also give a needed public relations boost to Bombardier, which has seen its shares struggle in the face of what the Globe and Mail rightly refers to as "the current climate of fear and uncertainty".

I had a great chat today with Forecast International senior aerospace analyst Raymond Jaworowski, who says Bombardier needs to get a firm CSeries order on the books in the not too distant future. Read the entire piece here, but the key quote is:

"I think they could probably go into next year without a firm order but not much more than early [next] year."

In short, Bombardier cannot afford the blow to its image if an order remains outstanding for its geared turbofan (GTF) bird, which has been a paper airplane for years (one that this RWG would love to see fly).

So what about Lufthansa? The carrier in July inked a letter of interest for 30 CSeries aircraft, enabling Bombardier to formally launch the programme. Three months later and the German operator has not yet firmed the deal. Lufthansa has "no date yet when we will firm the CSeries order", says a spokesman for the carrier.

In the same conversation, however, he reveals that Lufthansa is open to the possibility of ordering more 112-seat Embraer 195s. That's in addition to the 12 E-195s on order plus 18 E-190s that may very well be converted to the larger-capacity type.

"We will decide on the remaining 18 [E-190] aircraft later on, if we want them as E-190s or E-195s. So in the end, we might get 30 E-195s," says the spokesman.

And yes, Lufthansa believes there is room for both types in its fleet. "The CSeries aircraft has a capacity of 100-130 seats, which goes beyond the capacity of the E-190 family and thereby already caters to a different category. So we do not necessarily see too much interference."

Okay, grand. So what's the hold-up? Maybe Lufthansa is waiting for just the right moment. Personally, I can't think of a better place and time then the Wings Club luncheon in New York City on 19 November.

That's where Lufthansa chairman and CEO Wolfgang Mayrhuber will give his perspective "on a range of issues currently confronting the airline industry, including a weakened economy, the need for consolidation, changes in customer behaviours and the challenges and opportunities on Lufthansa's horizon", says the carrier in a press invite to the event.

Heck, it would be just in time for the US holiday of Thanksgiving...

(Photo care of Flightblogger...check out his photo stream on Flickr here)

Labour relations at American Airlines keep getting uglier. Last week, news emerged that the company's 14-year old Aviation Safety Action Plan (ASAP) - which allows employees to report safety problems confidentially - has been terminated. In light of this, the Allied Pilots Association (APA) is warning membership: "You have the right to remain silent. If you give up the right to remain silent, everything you say can and WILL be used against you!"

American 777.jpgNow the APA is accusing management of using outside PR firm Weber Shandwick to advise on the ASAP campaign. "How would you feel if e-mail exchanges between APA and AA in which APA was desperately seeking to come to an agreement [on ASAP] were CC'd to the PR firm?" asks the APA in an internal message.

I don't know what role, if any, Weber Shandwick is playing in management's correspondence with APA over ASAP. On somewhat of an aside, however, I will be the first to say that American's relationship with the press improved mightily the day it decided to hire Weber Shandwick to assist its PR efforts. That was at least a few years ago.

American has responded to the ASAP termination with the following statement:

"The APA's willingness to discard a 14-year program that has done so much for our pilots, our airline and our industry is impossible to understand. While we are disappointed by the APA 's action, we do not believe that the safety of American's operations will not be affected by the program's expiration. American will provide its pilots with a confidential hotline and online reporting system to report concerns directly to our safety department."

But the ASAP argument is just the tip of the iceberg. It's no secret that American and APA leadership have been embroiled in rather acrimonious contract negotiations. Proposals have been traded back and forth for months without success. One of the hot button issues is American's request for scope relief. Management wants to lift the cap on the number of seats in aircraft flown by commuter affiliates. Scope language in American's current pilot contract prohibits American Connection carriers from flying aircraft with more than 50 seats.

In an internal message to members, the APA reveals that management's scope proposal "seeks to remove every limitation on domestic and international codesharing as well as permitting unfettered operation of commuter air carriers flying ERJ-170s in two-class configuration - without any AA pilot job guarantees".

Needless to say, the APA will have none of it. But the revelation is pretty interesting. Wholly-owned subsidiary American Eagle is allowed to fly a limited number of 70-seat jets - 50 in total. The airline currently flies 25 Bombardier CRJ700s. And we've known for some time that options on a further 25 CRJ700s have never been firmed up (must to management's chagrin).

Under management's proposal, American "could theoretically operate without one pilot on the pilot seniority list, and management has admitted as much at the table", says the APA.

"We can have the best contract in the industry, but it wouldn't be worth the paper it's written on without APA pilots in the cockpits."

Is American Airlines less safe today? The Allied Pilots Association (APA) thinks so.
A 14-year old program that provides incentives to airline employees to report safety problems confidentially has been terminated at American, says pilot leadership.

American 757 cockpit.jpgIn an internal message to members, obtained by RWG, the Allied Pilots Association (APA) says "management's demand to change the most basic protective tenants of ASAP [Aviation Safety Action Plan] has resulted in that program's termination".

"While pilots have lost valuable protections, management has lost a valuable pipeline of safety information and AA [American Airlines] is a less-safe airline because of it."

Specifically, the APA accuses management of tabling an ASAP proposal that "increases a pilot's risk for discipline, making it unacceptable".

American could not be immediately reached for comment.

APA says it remains committed to achieving a renewed ASAP agreement "that ensures the preservation of the original intent to have a self-reporting safety program designed to protect pilots in exchange for invaluable safety insight into our operation".

However, with ASAP gone, the APA says pilots "can rely on the limited protections afforded by the NASA Aviation Safety Reporting System program, but must be aware that the FAA will be closely monitoring our operation".

The union has issued the following specific guidelines (number 6 is particularly poignant):

1. Treat every flight like a checkride. Ensure all required licenses and publications are current and in your possession. Take your time, be meticulous and thorough.

2. Carefully review all MEL requirements and Part One guidance -- don't rely on memory.

3. If you think you may have violated an FAR, AA Ops Spec or clearance, file a NASA ASRS report and TELL NO ONE ELSE. The NASA ASRS program may be accessed at asrs.arc.nasa.gov Web address. Visit the site and place it in your computer's "favorites" list.

4. If you suspect AA of violating FAA regulations, or observe any unsafe operation, report it to APA via an Observer Report (which can be accessed from the members' home page of the APA Web site).

5. If you have to file a company P2 report, have APA Safety review it prior to submission. You may e-mail them at P2review@alliedpilots.org or call at 817-302-2150.

6. Finally, DO NOT speak to your chief pilot about an operational event without APA representation. DO NOT use the Flight Department's "confidential" safety reporting hotline. You have the right to remain silent. If you give up the right to remain silent, everything you say can and WILL be used against you!

Bluebox Avionics joint MD Rick Stuart doesn't mince words.

Asked by yours truly why wireless IFE systems proposed by Panasonic and Thales were never deployed on the Boeing 787, Stuart said: "Perhaps they [Panasonic and Thales] weren't up to the challenge."

Bluebox.JPGWell, well. I think the gauntlet has been officially thrown. Note to Panasonic and Thales - let's talk!

But back to Bluebox. Fighting worlds aside, the company deserves a round of applause for getting a serious foot in the door with today's announcement that Airbus has commissioned Bluebox to provide its wireless IFE system for inclusion in the A380 demo mock-up in Hamburg.

Read all about it by clicking this not-quite-dark-enough blue link. Are my eyes just bad? Should I start bolding these things?

As noted in my article, even though the system is being installed on the A380 mock-up, Stuart says Bluebox may have a greater opportunity to test-flight it on a new commercial aircraft.

This, of course, begs the question of whether the A350 is the ultimate aim. Stuart declines to comment.

What he does say, however, and what isn't mentioned in my piece is this:

"Traditional systems are server based, which are fraught with many problems. They [IFE system makers] have tried to make them more reliable [but the systems] are still a nightmare as any airline would testify."

To remedy this, he says, Bluebox "took a blank piece of paper and worked backwards from an airline perspective". The resulting technology turned out to be "remarkably easy".

Bluebox in March will showcase its product range at the Aircraft Interiors Expo in Hamburg. That will be exactly four years after Airbus revealed its first production-standard A380 mock-up at the same show.   

What do FedEx founder and chief executive Fred Smith and high-powered lobbyist Linda Daschle have in common? Both are rumoured to be potential candidates for the job of US transportation secretary in the next administration. They join a list that is also speculated to include former FAA administrator Jane Garvey, former American chief Bob Crandall and - quite obviously - current transportation secretary Mary Peters.

Mary Peters.jpgFred's name came up last week at the Boyd conference in Aspen. Answering a question from the crowd about whether Fred would be a likely pick, Air Transport Association (ATA) of America chief James May said: "You'd have to ask Fred Smith that question. I would love it. I would love it if Fred would take the reigns in a John McCain administration" should McCain be voted in as President.

As reported here last month, Crandall is also rumoured to be under consideration should McCain get elected.

With respect to the Obama team, "I don't think they have identified anyone particularly," said May.

John Podesta, former chief of staff in the Clinton admin, is running the transition for Obama. It is understood that one of Podesta's closest advisors is Democratic Senator Tom Daschle, whose wife Linda Daschle boasts a history in senior FAA leadership.

Jane_Garvey.jpgNow a senior public policy advisor for law firm Baker Donelson, Linda Daschle's bio reads like a transportation secretary's resume. In her 30-year career, Daschle "rose to become the second woman ever to be deputy administrator of the FAA and the first woman to serve as FAA acting administrator".

But she has also come under some harsh scrutiny in the past.

American Airlines wants the selection of the next transportation secretary to be a priority for the next administration, be it led by Obama or McCain.
 
AMR VP, state and community affairs Kevin Cox noted during the Boyd conference that the selection "tends to be the last pick as when you're picking a baseball team".

He added: "If you look at the economy and how transportation has become tantamount to how we drive the economy forward, you cannot make it a last thought decision. We're less concerned about the names as we are about the prominence and importance placed upon it."

(Initial photo - Mary Peters)

The fate of Harbin Embraer revealed...

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Harbin Embraer.jpgThis week, when Embraer revealed that negotiations are underway concerning the pace at which Hainan Airlines' regional subsidiary Grand China Express will take Embraer ERJ-145 regional jets, I asked the following obvious question: "What does this mean for the airframer's Chinese JV Harbin Embraer, which produces the E-145?"

Mauro Kern, Embraer executive VP - airline market, who is about to board a flight, has just exclusively revealed that production at the facilities in Harbin "has not ceased at all".

"Grand China Express requested to slow down deliveries, in order to reduce the growth rate of the ERJ-145 fleet. The JV is in the process of negotiating a new delivery schedule with Grand China Express, which has not yet come to a final decision," says Kern.

He adds: Grand China ERJ-145.JPG"The ERJ-145 firm orders (covering 50 aircraft) is expected to remain unchanged, with a possible extension of the delivery stream beyond 2010 (current plan)."

Ten ERJ-145s of the original 50-strong order have already been delivered with 40 remaining.

Kern reiterates that there is no change to the Embraer 190 delivery schedule for Grand China.

(Photo at right - delivery to Grand China of Embraer's 1,000th ERJ-145)

I've just written a feature for the November issue of Airline Business about how mobile phones are poised to change the entire air travel experience. At least 90% of airline passengers carry mobile phones. But airlines are finally realizing how to take advantage of this fact for both their passengers' and their own benefit.

To help me conceptualize just how big a deal this will be, my friends over at Airbus/SITA partnership OnAir sent me the following storyline. It's about one man and his cell phone. My Bond.JPGI've embellished it just a tad. For example, I'm calling our adventurer James Bond (and in my version he looks more like Pierce not Daniel). Let's also make him married (to a gal named, oh I don't know...Mary) and willing to fly public transport. Yes, it's a sacrilege but you're reading RWG after all.

1. James is going from Geneva to Rio via London today.

2. Before leaving home in his Aston Martin, James checks in by mobile phone and receives his bar-coded boarding card on his phone.

3. He drops off his Louis Vuitton bag at the airport and the bar-coded baggage receipt is sent to his phone.

4. As he's saved time on check-in, James now can afford to go to the VIP lounge. He uses his mobile phone to gain access through a bar code.

Mr Leblon I.JPG5. When called, James boards his flight by running his mobile phone over the scanner at the gate.

6. On his flight to London, James sends a text message to his wife, reminding her to call the plumber (Mary jokingly tells James where he can stick the plunger).

7. Twenty minutes before landing in London, James receives a text message from the airline informing him that his connecting gate is 87 and that his flight to Rio will be delayed by 10 minutes to accommodate connecting passengers.

8. The flight crew is expecting connecting passengers and can verify that James Bond is indeed in the airport and traveling towards the right gate, thanks to the location sensing feature of his phone.

Early Times.jpg9. On his flight to Rio, James decides to purchase some duty free items (he knows his wife likes cheep whiskey and expensive perfume). The flight attendant authenticates the transaction in real time through a special GPRS device.

10. During the flight James catches up on email on his BlackBerry. He also checks the financial news on the Internet (and takes a few minutes to read the RWG blog since it hasn't yet been censored by the airline).

11. As he now relaxes, James finds voucher offers in the onboard catalogue. There are many offers for tourist events, such as reduced tickets for the Corcovado, the Tijuca etc but he'll be in Rio for business. However a voucher for a football game catches his eye and he cannot resist. He sends an SMS to the number provided, with the corresponding event code. He receives a bar-coded voucher for the game that he will redeem at the stadium entrance.

12. As James continues to read the onboard literature he finds out about the onboard concierge service and decides to spend some of his miles on a limo with driver during his stay in Rio. He calls the concierge and books the limo.

13. One hour before landing, James calls his business colleague who was going to pick him up to inform his that he has ordered a limo instead.

14. Half an hour before arrival James receives a text message from the airline informing him that his luggage will be delivered on Belt 8.

15. James has enjoyed a seamless travel experience thanks to his mobile phone (and an airline that is willing to invest in the technology necessary to put the customer first).

The End

Aircell did its part to prevent users of its Gogo in-flight connectivity service from logging on to XXX web sites.

In its "In-flight Etiquette" video the company urged: "When it comes to the sites you visit, be an angel. Remember you are in public. You wouldn't want to shock your neighbour or reveal confidential information."

Passengers heeded Aircell's suggestion. American Airlines in a statement last week said it "has not experienced any reported incidents of customers viewing inappropriate content via the Gogo service".

Nonetheless, shortly after reports surfaced that Delta Air Lines will filter pornographic content when it begins offering Gogo to passengers, American announced its own plan to do the same, saying its decision was based on feedback from customers - the Girls Against Porn group? - and employees (read flight attendants).

angel.JPG"American is following our lead. We announced the week before they did, kind of left them in an awkward position since they're already out there flying [Gogo]," says a Delta Air Lines spokesman.

So American garners the distinction of being the first US major to offer full in-flight Internet, while Delta gets the distinction of being the first US major to formally announce plans to police the skies.

I assure you I don't advocate XXX viewing in-flight. I grew up watching Highway to Heaven and Little House on the Prairie for God's sakes (good ole Half Pint).

At the same token, however, one must ask just where the line is going to be drawn. Who decides what qualifies as porn? Readers addressed some of these questions in response to a previous RWG post.

Will Air Canada and Virgin America - two leaders in the in-flight entertainment sector that plan to offer Gogo - now follow suit?

Quite possibly. Girls Against Porn is now urging folks to contact Virgin and tell them to filter porn on the carrier's flights.  

I know what you're thinking fellow in-flight connectivity enthusiasts. That third Ku-band-based connectivity provider - ViaSat - has fully emerged and Runway Girl has made nary a recent mention. Oh ye of little faith.

 

ViaSat.jpgWe've known for some time that ViaSat was interested in getting into the game. To be fair, however, the extent of their plans was less clear until IFE journo extraordinaire Brendan Gallagher penned an incisive piece about ViaSat last month during the World Airline Entertainment Association's conference and exhibition in Long Beach.

 

The addition of ViaSat to the Ku-band connectivity race makes for an exciting three-way competition with Row 44 and Panasonic Avionics.

 

But this could no doubt easily turn into a four-way or even a five-way if Arinc decides to take SKYLink commercial or should some new offering be unveiled by a T-Mobile/Lufthansa partnership (although this arrangement reportedly involves ViaSat).

 

The Ku-band saga got even more interesting last week when ViaSat announced it has teamed with Lufthansa Technik to offer "an end-to-end, ground to cabin broadband IP networking and entertainment system" for business aircraft. ViaSat will integrate its ArcLight mobile satellite technology with Lufthansa Technik's Ethernet-based NICE cabin network to provide IP connectivity. Then ViaSat revealed it has selected AeroSat to supply the antenna technology.

 

AeroSat is already supplying the antenna for Row 44's Ku-band solution, which will soon be tested on Boeing 737s operated by Alaska Airlines and Southwest Airlines.

 

These are all non-exclusive dating arrangements, however. Why bed down with only one partner, after all?

 

"From our perspective we're not interested in exclusive relationships...Because we would like every service provider to be using our antenna system," says AeroSat VP of business development William McNary.

 

Check out my latest article on the hoting up of the Ku-band antenna sector this week in Flight magazine (note to the editorially astute - for some reason the web site isn't recognizing semi-colons so consider this when you see an apparent run-on sentence).

 

Due to page constraints, I wasn't able to run all of ViaSat strategy director Bill Sullivan's interesting comments. Here is a trio of the best:


"I do believe there is a great deal of interest from other international carriers and [they are] waiting to see what Lufthansa does."


"Connexion did the in-flight broadband world a great service and in another sense, a great disservice...[Connexion] did all the work to use the Ku-band satellites and then put [the service] on the aircraft. But they had a huge fixed cost base. So when they pulled the plug, and said the business model didn't work, that left a bad taste with travellers and airlines."


"Because we have such a large customer base, we actually don't need airline customers. We'd love them but we've already got established GA and maritime customers."

Bombardier executives are headed to Hyderabad Airport for the inaugural India Aviation 2008 exhibition, which gets kicked off on 15 October.

The event, organized by India's Ministry of Civil Aviation and the Federation of Indian Chambers of Commerce & Industry, is being billed as "the first international exhibition of its kind in India on civil aviation sector".

But that's not stopping Bombardier from flogging its business jet portfolio. While the airframer is bringing a CRJ900 NextGen commercial jet for static display, it will also showcase its Learjet 60 XR, Challenger 605 and Global Express XRS business jets.

What about the CSeries cabin mockup? Will it be on display? I know I was quizzical in June when Bombardier opted not to showcase the CSeries mockup at Turkey's AIREX. At that time, a Bombardier spokesman told me it was "too heavy and expensive" to lug to AIREX.

The CSeries mockup is not mentioned in Bombardier's press release about the show, although Bombardier Commercial Aircraft VP sales for the Asia-Pacific market Trung Ngo suggests the 110/130-seater is ideally suited for longer routes in the Indian market.

It seems to me that India would be a good place to bring the mock-up, no? As the SBAC points out, in a statement to promote the event, the Indian civil aviation market has been experiencing a boon. "Until recently only two private airlines - Jet Airways and Air Sahara offered competition to national carriers, but in the last few years, a large number of private airlines such as Air Deccan, SpiceJet, Kingfisher Airlines, Go Air, Paramount, Indigo etc. have entered the domestic market," notes the SBAC.

"With air travel becoming a popular and cheaper option, the civil aviation sector is experiencing fast growth.  During 2006-07, total passenger traffic grew at 27.2% while the cargo traffic grew by 11.2%. The aircraft movement increased by 27.5% during the year.  The domestic air traffic is expected to grow up to 180 million and international traffic to 50 million passengers by 2020."

No doubt Bombardier will have some cabin pics to show attendees, perhaps from its newly-released CSeries promotional DVD (which I picked up at the Boyd conference). See some of the best snaps below.

Bombardier 1.JPG

Bombardier 2.JPG Bombardier 3.JPG Bombardier 4.JPG Bombardier 6.JPG

Labouring for breath in Aspen made me realize a few things - A) It was a good idea to quit smoking (okay, I sneak the very odd one); B) I am incredibly out of shape (though grateful for my dad's metabolism) and C) I should have booked the Boyd conference earlier and snagged a room on premises at the St Regis (although the Hotel Jerome was lovely).

CSeries promo.JPGBut while oxygen was in short supply, the same cannot be said about news from the conference. That flowed like the Colorado River, my friend. In short, the Boyd summit was a bloody treasure trove of information.

One of the chattier executives was Northwest Airlines VP international marketing and sales Fred Deschamps, who insisted - just before Boeing's Monday afternoon presentation - that the airframer needs to deliver the 787 within spec, noting that All Nippon Airways has more leeway in taking initial 787 deliveries outside of spec (read all about it, and Boeing's response, here).

Deschamps also revealed details about the post-merger plans of a combined Northwest/Delta, saying that some Northwest aircraft could move to Atlanta; that Northwest's 757s are staying put in Tokyo; and that the two carriers are looking at west coast hub opportunities but might have to make the best of Salt Lake City in the near-term.

Additionally, the Northwest/KLM relationship could be rejigged post-merger (either side could renegotiate the terms) and it is possible that there is "at least short-term pressure" to modify the alliance. The carrier also has its eyes focused on new Middle East and South American opportunities.

Frontier Airlines CEO Sean Menke also made some revelations, saying that the Denver-based carrier is interested in acquiring more Bombardier Q400 turboprops (yep, options are being firmed); a full-fledged codeshare with AirTran Airways is being pursued; and - okay not a huge shocker - he is not the biggest fan of regional jets (that would help explain why the Airbus A320 family and Bombardier Q400 operator removed Republic's E-Jets from its operation....that and the fact that the low-cost carrier found the per block hour cost a bit much).

The airframers were also forthcoming. Airbus director market forecasting Simon Pickup assured that final definition freeze of the A350 would occur at the end of this year. And Boeing director business strategy - marketing Richard Wynne told conference attendees that the maritime Poseidon (which is based on the 737NG) has just started to go down the production line. But Wynne's worthy contribution to the conference might best be summed up in quotes.

Here are some of his finest:

"We have every intention of surviving and not just surviving [but] thriving at Boeing."

"Did you hear that we're having a strike at Boeing? ...Clearly there is a communication issue between ourselves and the union."

"It [a successor to the 737] will be in the latter part of the next decade, not the middle."

Air Transport Association president and CEO James May, meanwhile, insisted that cabotage rights "will not change" now or in the foreseeable future. "There will be no laws on cabotage in the next or any ensuing Congresses," he predicted. Such rights, among the issues being discussed during second-stage European Union-USA open skies negotiations, would enable foreign carriers to operate domestic connections in the USA.

Perhaps the best moment of the conference, however, came when Marian Boyd - wife to Mike - managed to trump her always-quote-alicous husband when she interrupted him while he was speaking on stage. "Excuse me. I have some announcements to make," she said from the floor, adding to thunderous laughter: "He just thinks he runs the company."

(Pic above right from Bombardier's new CSeries promotional video...more on that later) 

Michael Boyd is well known for making colourful - sometimes hilarious - comments about the aviation industry. I'm here in Aspen covering Boyd's annual aviation forecast conference and let me tell you, Boyd has not disappointed.

Oberstar.jpgHere are some of Boyd's best observations, quips and jabs from today's show (in a handy Q&A format).

Would Congressman James Oberstar make a good Transportation Secretary?

"If Jim Oberstar knew half as much about the industry as he thinks he does, he'd be a great ramp agent."

How important is NextGen to current presidential hopefuls?

"Barack Obama wouldn't know ATC from an ATM machine."

How can you get the FAA's attention on NextGen?

"Why doesn't someone grab the FAA by the trachea and say 'fix this'."

How do you classify all the delays in deploying NextGen?

"NextGen is a no gen."

Will the Delta/Northwest merger have a big impact on the US aviation industry?

Delta and Northwest "are like two people who have shacked up for four years and have decided to get married".

What do you think of ATA CEO James May's statement that he would "take Norm Mineta over Mary Peters any day" in the role of Transportation Secretary?

"Maybe as a date."

What are your thoughts on China's ARJ regional jet?

"The Chinese are very creative. They've recreated the DC-9."

Other quotable quotes emerged from the conference. Here are some of the finest:

"When we launched the [A350] programme we thought it would be behind the 787 [delivery timeline], but we're catching up in our own little way" -  Airbus director market forecasting Simon Pickup.

"We are vested emotionally and financially in that hub [Memphis]. We won't give it up easy."  - Northwest Airlines VP of international marketing and sales Fred Deschamps.

"... sitting in front of 100 mayors on Friday, all of them [were] yelling and screaming about how we're cutting down capacity. But the short-term and long term solution is finding some sort of level playing field when it comes to the jet fuel price." - AMR VP, state and community affairs Kevin Cox.

(Photo above of James Oberstar)

I'm packing my bag and heading to Aspen in the wee hours of the morning to cover the ever-quotable Michael Boyd's annual aviation summit. With the memory of a certain United Airlines flight to LAX still fresh in my mind, I've opted to fly Southwest Airlines from BWI to Denver and make the scenic drive to Aspen.Six Pack.JPG

I'll have plenty to ponder during my four-hour car journey, such as how Sarah Palin unfortunately was not referring to tight abdominal muscles when she made her "Joe Six-Pack" comment during last night's debate. You know - the important stuff.

Mostly, however, I'll be thinking about the dire regional jet forecast that will be presented at the conference. While Boyd hasn't divulged all the details, his latest "Hot Flash" alert is enough to make Bombardier and Embraer reach for the menopause meds (or a beer, for that matter).

"Just a couple years ago, fuel was less than 15% of the total RJ operations. North of $3.50 - where it's been from time to time, fuel can approach 50% of costs," warns Boyd. Here is his composite of CRJ and ERJ 50-seater costs based on a 500-mile stage length.

Boyd RJ chart.JPGLest you think things are all doom and gloom, there is some good news in store for Bombardier and Embraer. Over 35% of global airline demand in the next ten years will be in the 75-125 seat airliner categories. I'm glad to hear it, not least of all because it valiates a little regional aircraft feature I wrote in April.

"That means very strong demand for Embraer E-Jets. It also means that there is an opening for other entrants into these categories," says Boyd.

Now how about that CSeries order, hmmm?

Delta Air Lines today received some good, environmentally-sound advice from a consumer - now that you are planning to offer in-flight Internet access, "maybe it is time to rethink the printing and publication of that mediocre in-flight magazine".
Delta Sky.JPG

The comment, from an individual that refers to him/herself as "Walkabout", was made in response to Delta's now-popular 1 October blog post about its first test of Aircell's Gogo broadband Wi-Fi system.

The blog, which describes a Delta manager's Gogo experience on a Boeing MD-88 at 33,000ft, is definitely worth a read.

But Delta should take Walkabout's suggestion to heart. The Delta in-flight magazine, called Delta Sky, "like all the other in-flight magazines, has become cliché, it is stuffed with innocuous ads that advertisers like but passengers abhor. It is time to save paper and the fuel it takes to fly these magazines around on thousands of planes each day throughout the year," says Walkabout.

"Instead, maybe Delta could get its content providers to put some of the airline's important information somewhere on its web site for the new users of this in-flight Internet to access while on the plane."

Now there's an idea, one that American Airlines would likewise be smart to consider. 

(Photo care of Delta Sky web site www.delta-sky.com/2008_10/)

Here at Runway Girl, we like to break the odd bit of news too (not just stoke the hell fires of controversy).fire.jpg

To that end, we (the multiple personalities of yours truly) can report that leasing firm Aviation Capital Group (ACG) has for the first time acquired new Airbus A330s.

According to a source, Colombia's Avianca brokered a sale/leaseback deal with ACG covering the first two of 10 A330-200s slated for delivery to the carrier.

These are six-year leases with renewal rights, says the source.

Aircraft number one - N948AC - has already been delivered, as reported today by Flight.

The widebody is equipped with Panasonic eX2 in-flight entertainment systems, with iPod connectivity, as the others will be too.

The second A330 covered in the sale/leaseback will be delivered in November.

Avianca continues to hold orders for eight more A330s with the airframer. The carrier already leases a 767-200ER from ACG.

Now then, does anyone have some salve? It gets kind of hot in here.

(Photograph taken by Matthew Bowden - www.sxc.hu/profile/thesaint)

Regional airline lobbying group the Regional Airline Association has been deliciously quotable of late. Today, for example, the group appeared to channel country singer Lori Morgan when making known its incredulity that the US DOT remains steadfast in its pursuit to auction New York slots despite this week's legal opinion from the Government Accountability Office to the contrary. To wit, the RAA asks:

"What Part of 'No' Don't They Understand?"

In Morgan's version, below, the follow-up lyric is: "To put it plain and simple, I'm not into one night stands." Something tells me that the RAA has no plans to make this argument a quickie. If necessary, these short-hoppers are ready to be in it for the long-haul.