From the editors of Aviation International News

This issue sponsored by Honeywell Avionics, Rockwell Collins, and Cutter Aviation.
September 20, 2007

FAA Reauthorization Clears House 267-151
 The House of Representatives this afternoon approved an FAA reauthorization bill that raises the tax on jet-A from 21.8 to 35.9 cents a gallon and the tax on avgas from 19.3 to 24.1 cents a gallon. To the relief of general aviation, it contains no user fees and no concessions to the airlines. The airline taxes–including 7.5 percent on tickets and 4.3 cents a gallon on jet fuel–will remain at existing levels. Money from the tax hikes on GA fuel would be earmarked exclusively for ATC modernization. But the battle between the airlines and GA is far from over. The Senate still has to pass its version of FAA reauthorization, a version that contains a $25 per-flight user fee for turbine IFR operations, and then a conference committee has to reconcile differences. President Bush has threatened a veto because the House bill contains a provision that would force the FAA and the National Air Traffic Controllers Association to reopen the disputed contract put into force last summer. The House bill does not currently have sufficient support to overturn the veto.

Bizjet Forecast Shows Blue Skies, with a Few Clouds
Forecast International yesterday released a prediction that 14,978 business jets, worth some $192 billion, will be manufactured between 2007 and 2016. The Connecticut-based market research firm estimates that very light jets will account for 39 percent, or 5,783, of business jet deliveries during the time frame. Further, Forecast projects that annual business jet production will top 1,000 aircraft this year, exceed 1,200 next year and reach 1,500 by 2011. However, not everything is good news within the business jet industry, according to the forecaster. The report notes that demand in the key North American market has been cooling due to market saturation, but this is being offset by demand from other regions such as Europe, the Middle East and the Asia-Pacific region. Another problem is that “existing sizable order backlogs have resulted in capacity bottlenecks for certain manufacturers,” leading to frustrated customers who just want their airplanes sooner rather than later. Forecast International also noted that implementation of aviation user fees in the U.S. could adversely affect demand.

PMI Media VLJ Outlook Contains Mixed Messages
A soon-to-be-released very light jet forecast from PMI Media estimates that 7,650 VLJs, worth some $18.36 billion, will be delivered between 2007 and 2016. “We are predicting 2007 deliveries of VLJs to be around the 200 mark, up from our 2006 forecast of 175. In the first half of 2007, 31 Cessna Mustangs and Eclipse 500s were delivered, so the second half of the year should see a steep ramp up in production activity,” the forecaster wrote. While the VLJ order book currently stands at more than 4,010 aircraft, the research firm said there are still “major uncertainties” in this emerging market. In particular, PMI cites questions about the suitability of the new aircraft types to the robust demands of the air-taxi market and the consequence of continuing production delays at Eclipse. Another worrisome indication, the forecaster said, “is some anecdotal evidence that the current volatility in global economic markets might soon impact the VLJ and wider business jet sectors.”

’Leading Aviation Experts’ Call For Privatized ATC
The Reason Foundation has assembled a group of nine “leading aviation experts”–including former DOT Secretary Jim Burnley, former FAA Administrator Langhorne Bond and former NBAA president Jonathan Howe–that is calling for “significant changes” to the U.S. ATC system. According to the libertarian think tank, these experts warn that without serious reforms, the air traffic system will be unable to accommodate growing air travel, forcing the U.S. to ration its airspace. Reason said the group wants a privatized air traffic organization (ATO) that is run like a business, separated from the FAA and “funded by a steady, reliable revenue stream that isn’t subject to politics.” The group’s position on aviation user fees is fuzzy, but it would like the ATO to be “funded directly by aviation customers.” It also suggests that the ATO be allowed to consolidate, reorganize and improve its facilities and equipment to better accommodate users, as well as reconfigure airspace consistent with NextGen capabilities. The Reason Foundation has been advocating a privatized U.S. ATC system for more than 10 years.
AEXJet To Keep Flying Despite Bankruptcy Filing
Aspen Executive Air (AEXJet), an ARG/US Platinum-rated charter operator, voluntarily filed for Chapter 11 bankruptcy protection last week in the U.S. Bankruptcy Court, District of Delaware. The petition lists up to $100 million in liabilities, with more than 200 creditors. The list of liabilities includes $19,834,442 to JLT Aircraft Holding for money owed on the lease of two Gulfstream G200s; $11,206,764 to Walker Aircraft on the lease of a Dassault Falcon 900B; $300,847 to FlightSafety International; $167,554 to Pratt & Whitney Canada; and $44,210 to CAE SimuFlite. “This is a necessary step that will strengthen the company and allow AEXJet to move forward,” CEO John Gallager stated. The company will continue operating, Gallager said, and would be entering into a “business combination” with another charter operator. He added that the identity of the operator “must remain confidential,” but noted that negotiations should be complete by the end of next week.

NTSB Gives More Details of Beechjet Dual Flameout
The NTSB this week finally released initial factual information about the Flight Options Beechjet 400A that experienced a dual engine flameout on Nov. 28, 2005. Both of the airplane’s Pratt & Whitney Canada JT15D-5 turbofans, which had been inspected 31 hours earlier, failed on a positioning flight to Marcos Island, Fla., when power was reduced after the fractional jet was cleared to descend to FL330 from FL380. The two ATP-rated pilots, the only occupants, declared an emergency. The pilot told the NTSB that he believed ice in the fuel lines caused fuel starvation. Weather was VMC, with light drizzle and an 8,000-foot overcast. Temperature was 21 degrees C and dew point 19 degrees C. Attempts to restart the engines were unsuccessful. The crew was vectored for an emergency landing at Jacksonville International Airport, where the local controller provided mileage calls for the last 15 miles. According to the Safety Board, the twinjet’s right main tire blew after the crew landed the airplane deadstick on the runway. Damage was minor, with no injuries. The incident is still under investigation.


Also Noted...

The Air Force has suspended deliveries of the Hawker Beechcraft T-6A Texan II trainer “pending investigation of contract delivery issues,” according to a spokesman for the Air Education & Training Command (AETC), which operates the single-engine turboprop for Air Force specialized undergraduate pilot training. “AETC continues to execute its primary mission of undergraduate pilot training under a g limitation suggested by the program office,” the spokesman said.

The FAA released multiple notams that restrict GA operations in New York metro airspace during the UN General Assembly next Monday through Wednesday. La Guardia and JFK Airports will be off limits to Part 91 operators during certain times, and multiple TFRs will be present in the area. Special ingress and egress procedures will also be in effect for Morristown Airport. GA operations at Teterboro will remain available due to a 2-nm exclusion in one of the TFRs. Special procedures are currently in effect for New York City heliports and seaports until October 5.

A King Air C90 crashed in a shopping center parking lot just after 8 p.m. last night while on approach to Chattanooga (Tenn.) Metropolitan Airport. There were no fatalities, but four people aboard suffered injuries after the turboprop twin hit a utility pole about 2,000 feet from the runway and then cartwheeled into cars in the parking lot. The NTSB is on-scene investigating the accident.

Austrian charter operator JetAlliance placed a $105 million order for 10 Citations at the Jet Expo international business aviation exhibition in Moscow, Cessna announced yesterday. The order consists of one CJ1+, two CJ2+s, two CJ3s, three XLS+s and two Sovereigns. Deliveries will take place in 2009 and 2010. JetAlliance announced an order for 25 Citations in May.

PremiAir has introduced “first-come, first-served” rationed slots for access to the London Heliport after increased landing fees failed to control rising demand at the movements-restricted site. The facility is limited to just 12,000 movements per year. Concern that the heliport would reach this quota before year-end forced the company to restrict the daily number of slots.

Signature Flight Support has added two more FBOs to its European network. It has opened a new facility at Liege in Belgium and has acquired the former ATAS base at Greece’s Thessaloniki Airport. The group has also just reopened its Paris Le Bourget FBO after extensive remodeling. Signature, which is part of the BBA Aviation, now has a global network of 82 locations throughout North America, South America, Europe, Africa and Asia.


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