November 30, 2011

American Airlines Flights to Jamaica secure

TOURISM interests are optimistic that American Airlines will not cut its 52 weekly flights into Jamaica despite yesterday's announcement that the airline and its parent company, AMR, were bankrupt.

Jamaica signed a controversial US$4.5-million ($385-million) airlift-guarantee deal in 2008 which provided an incentive for the US carrier to keep flying to the island from three American gateways.

Tourism Minister Edmund Bartlett defended the deal at the time, saying the Caribbean was one of the regions marked by American Airlines for reduction in air service in September of that year.

Director of Tourism John Lynch said yesterday that Jamaica does not expect the airline to back away from the deal. "We have not had any indication from American Airlines of any flight reduction at this time and so we are not expecting any cancellation in bookings," he told the Business Observer.

American Airlines currently operates three daily flights out of Miami into Kingston and three into Montego Bay, plus five flights a week each from Chicago and Dallas.

Lynch said there were a lot of forward bookings for the winter tourism season which begins on December 15 and there is no expectations that these will be cancelled.

The decision to file for Chapter 11 protection should not cause significant alarm, he said. "All major carriers have gone into Chapter 11 to adjust cost and bring it down and since (American) had the highest operating cost the decision had to be taken," he said.

However, Evelyn Smith, president of the Jamaica Hotel and Tourist Association (JHTA), said: "It is important that both public and private sector interests monitor the situation."

She also worried whether any other airline would be able to fill the gap if American did cut flights to the island.

"We will be in touch with our overseas partners to see if bookings are being cancelled even as we raise the tough question of whether we have enough seats on the other carriers into the island," she said.

Ian Burns, CEO of REDjet, said that if American did reduce its flights, his company would try to take up the slack.

"The opportunity for REDjet is good as our licence also allows us to fly to the States," he said yesterday.

The bigger airline's woes are a sign that its old fashioned business model doesn't work any more, he added.

"The future lies with smaller, private companaies like REDjet," he said. "Similarly we've seen Air Jamaica and Caribbean Airlines struggle because they have tried to follow that type of model."

Martha Pantín, American's regional spokeswoman, said that the airline cannot speculate as to any future decisions. "Our customers will see no immediate change as a result of the filing, and can be confident that they can continue depending on us," she said.

Elizabeth Brown-Scotton, chief commercial officer of MBJ Airports Ltd, which operates the Sangster International Airport in Montego Bay, said the airport is not expecting any major changes. "MBJ is not expecting nor have we been notified of any operational changes. It is business as usual."

— With additional reporting by Paul Allen

Brother Reflects on Life of Port Washington Pilot Killed in Crash. William Didier was "happy as clam" when he was in the air, sibling says. Piper PA-31-350 Navajo Chieftain, N59773. Riverwoods, Illinois.

William Didier. 
Photo Courtesy Peter Didier.

Two days after Port Washington native William Didier, 58, died when the medical transport plane he was flying went down in a Chicago suburb, his relatives in Port are coping with the loss to their tight-knit family.

Peter Didier, William's older brother by seven years, lives on a farm a few miles north of downtown Port Washington on County Highway KW with his three sons, who together own RE/MAX United real estate in Port Washington.

It's the same farm Peter and William - better known as Bill - grew up on and shared until Bill moved to another house in Port Washington with his wife.

Bill continued to live in Port until he moved to Cedar Grove five months ago to be closer to his new job flying medical transport planes for Trans North Aviation, which owned the plane that crashed Monday night in Riverwoods, IL, about 30 miles northwest of Chicago.

It was on the family farm that Bill had his first close encounter with flying, Peter said. In 1957, their father Nick and his business partner arranged for a small plane to pick the two of them up on the farm and take them to the Milwaukee airport, where they took an airliner to New York City for the World Series.

"I remember seeing the airplane landing in the cow pasture and taxiing over to the house," Peter said. "I thought that was really cool."

After that, the brothers asked to take flying lessons and both became recreational pilots.
Read more:   http://portwashington-wi.patch.com

Two bodies found in New Zealand chopper wreckage

Divers have found the bodies of two men killed in a helicopter crash off New Zealand, as details emerge of the chopper's role in a rescue mission during firefighting efforts in the country's far north.  The bodies of the pilot and a ranger with the Department of Conservation were found by divers in the wreckage about midday on Thursday (1000 AEDT).   The five-seater Squirrel helicopter was on a rescue flight when it crashed into the sea off the Karikari Peninsula, in New Zealand's far north, on Wednesday night, the company which operates the aircraft said.

Salt Air chief executive Grant Harnish said the helicopter had been fighting a large scrub fire but had dumped its monsoon bucket after being asked to pick up people caught out by the blaze.  "The pilot had been requested by authorities to divert in order to extract people from the beach, away from approaching flames and out of harm's way," he said in a statement.   Mr Harnish said conditions were extremely difficult at the time of the crash.  "We only ever operate under those conditions if we believe human life is at risk," he said.

Two commercial divers had confirmed the bodies were in the cockpit in about seven metres of water off Karikari Moana beach.  The company was working to get the family of the pilot, who it did not name, to the crash scene.  The helicopter had been helping contain the scrub fire on the Karikari Peninsula near Matai Bay.  It crashed into the sea about 9.30pm local time.  "We cannot speculate at this stage about the cause or likely cause of the crash," Mr Harnish said.

An initial search by two helicopters and a fishing boat could not locate it and it was not until 6.30am on Thursday that it was found.  A fishing boat found an oil slick and a crew member who went into the water spotted the wreckage on the sea bed but could not see if the men were inside.  Two Civil Aviation Authority investigators and a safety adviser would look into the cause.

A CAA spokeswoman says the wreckage will be videoed before anything is removed from the water.  The fire, which is being treated as suspicious, started at 7.15pm on Wednesday. It was fanned by strong winds and quickly spread, destroying three homes and forcing five people into the sea to escape from the flames.
http://news.brisbanetimes.com.au

Infratil airport halts Iran Air fuel sales

Infratil's Manston airport in Kent, England, has stopped refuelling Iran Air flights in the face of US sanctions that had spurred fuel suppliers at Heathrow to refuse to deal with the state-owned airline.  The US imposed sanctions on Iran amid suspicions the Middle Eastern state was developing nuclear weapons under the guise of a civilian nuclear power programme. Voice of America reported on June 28 that the US toughened the sanctions, imposing new penalties on Iran Air because it was concerned the airline may be carrying military payloads for the Iranian regime.

Iran Air flights have been allowed to continue using Heathrow but were forced to fly on to Manston for fuel for return journeys to Iran.  Steve Fitzgerald, head of Wellington-based Infratil's European Airports division that includes Manston and Glasgow Prestwick, said the company had checked with British authorities that the fuel sales didn't breach any laws.  The decision to cease fuel sales was "a commercial, judgmental decision," Mr Fitzgerald said.

"There's concern among governments that dealing with Iran at the moment is sensitive.  "Iran Air was advised a week ago that Kent International Airport is no longer willing to supply them with fuel."  The Iran Air fuelling arrangements with Manston were picked up by British media including the BBC and Daily Mail Online. They come amid a deepening diplomatic rift between the UK and Iran, after protesters stormed the British embassy in Tehran. The UK responded by expelling Iranian diplomats.

Will Harrisburg International Airport (KMDT) land bigger planes?

Between 2002 and 2006, Air Canada, Delta, United and U.S. Airways all filed for Chapter 11 bankruptcy. Passengers bought tickets, planes took off, planes landed and each of the airlines emerged stronger and still doing business in the Harrisburg region.

HIA hopes for the same as American Airlines begins its journey through the bankruptcy court. Anyone scheduled to fly American out of HIA in the coming months should not be affected by the filing, airport spokesman Scott Miller said.

There are bigger long-term questions facing the airport:

Facing rising fuel costs, airlines are scrapping many routes flown by small jets, like those that account for more than half of HIA’s traffic. So far, HIA hasn’t been affected, but airlines are expected to continue cutting less profitable flights across the country.

Can the airport convince its airlines that the best way for everyone to make money is to land more and bigger planes along the Susquehanna?

HIA will need to, according to industry analysts. If not, the airport could be in the next wave of cutbacks as airlines try to save costs.  “It’s vulnerable,” said Seth Kaplin, an analyst for Airline Weekly. “It’s a sizable market, but it’s not isolated. It’s not a place where people have to fly out of there or they can’t fly at all.”  Why is all this happening now? Blame gas prices.

In the late '90s, when gas was less than a dollar a gallon, it made sense for airlines to buy or lease 50-seat jets to serve regional markets. They could make more money flying a full 50-person jet than a half-empty plane that carried three times that many.  That model doesn’t work anymore.

Because a 50-seat plane still needs a lot of fuel, the airlines only reliably make money if they fill up the larger planes. That spelled the end of commercial service to places like St. Cloud, Minn., and Oxnard, Calif. Similar markets have fewer small planes going in and out.  HIA insists it shouldn’t be lumped in with those cities.
Read more . . . http://www.pennlive.com

Dallas Love Field Airport Gate Crasher Sentenced



DALLAS - A man who led police on a car chase that end up on the runway of Dallas Love Field was sentenced Wednesday to more than 22 years in federal prison.

In August 2010, Dallas police officers tried to stop Michael Browne, 47, when they spotted him driving a truck that had been reported stolen.

After leading officers on a winding chase through rush-hour traffic, Browne crashed the vehicle through a security gate that led to the Love Field runway.

The gate was routinely used for ambulances and emergency personnel and was guarded by Love Field personnel. However, Browne rammed the gate at high speed with DPD officers close behind.

After a short pursuit on the actual runway, officers disabled Browne's truck and took him into custody.

One year ago, Browne pleaded guilty to one count of interfering with security screening personnel. Today, U.S. District Judge Barbara M. G. Lynne sentenced him to 270 months (22.5 years) in federal prison.

The case was investigated by the FBI and the TSA-Federal Air Marshal Service.

Rockwell 690, N690SM: NTSB Releases Preliminary Report. Apache Junction, Arizona.

NTSB Identification: WPR12FA046
Nonscheduled 14 CFR Part 91: General Aviation
Accident occurred Wednesday, November 23, 2011 in Apache Junction, AZ
Aircraft: ROCKWELL 690, registration: N690SM
Injuries: 6 Fatal.

This is preliminary information, subject to change, and may contain errors. Any errors in this report will be corrected when the final report has been completed.

On November 23, 2011, about 1831 mountain standard time (MST), a Rockwell International 690A, N690SM, was substantially damaged when it impacted terrain in the Superstition Mountains near Apache Junction, Arizona, about 5 minutes after takeoff from Falcon Field (FFZ), Mesa, Arizona. The certificated commercial pilot and the five passengers, who included two adults and three children, were fatally injured. The airplane was registered to Ponderosa Aviation, which held a Part 135 operating certificate, and which was based at Safford Regional Airport (SAD), Safford, Arizona. The personal flight was operated under the provisions of Title 14 Code of Federal Regulations Part 91. Night visual meteorological conditions prevailed, and no flight plan was filed.

According to several witnesses, the children's father, who was a co-owner of Ponderosa Aviation and who lived near SAD, regularly used the operator's airplanes to transport the children, who lived near FFZ, between FFZ and SAD or vice versa. According to a fixed base operation (FBO) line serviceman who was familiar with the children and their father, on the night of the accident, the children arrived at FFZ about 15 minutes before the airplane arrived. The airplane was marshaled into a parking spot adjacent to the FBO building; it was already dark. The father was seated in the front left seat and operating the airplane, and another individual was in the front right seat. After shutdown, the father and a third individual, whom the line serviceman had not seen before, exited the airplane. The individual in the front right seat did not exit the airplane; he remained in the cockpit with a flashlight, accomplishing unknown tasks, and subsequently repositioned himself to the front left seat.

The father went into the FBO to escort the children to the airplane. The father, three children and the third individual returned to the airplane. The individual in the front left seat remained in that seat, the third individual seated himself in the front right seat, and the father and three children situated themselves in the rear of the airplane. Engine start and taxi-out appeared normal to the line serviceman, who marshaled the airplane out of its parking spot.

Review of the recorded communications between the airplane and the FFZ air traffic control tower (ATCT) revealed that when the pilot requested taxi clearance, he advised the ground controller that he was planning an "eastbound departure." The flight was cleared for takeoff on runway 4R, and was instructed to maintain runway heading until advised, due to an inbound aircraft. About 90 seconds later, the ATCT local controller issued a "right turn approved" clearance to the flight. Review of the preliminary ground-based radar tracking data revealed that the takeoff roll began about 1826 MST, and the airplane began its right turn towards SAD when it was about 2 miles east of FFZ, and climbing through an altitude of about 2,600 feet above mean sea level (msl). About 1828, the airplane reached an altitude of 4,500 feet msl, where it remained, and tracked in an essentially straight line, until it impacted the terrain. The last radar return was received at 1830:56, and was approximately coincident with the impact location. The airplane's transponder was transmitting on a code of 1200 for the entire flight.

The impact site was located on steep rocky terrain, at an elevation of about 4,650 feet, approximately 150 feet below the top of the local peak. Ground scars were consistent with impact in a wings-level attitude. Terrain conditions, and impact- and fire-damage precluded a thorough on-site wreckage examination. All six propeller blades, both engines, and most major flight control surfaces were identified in the wreckage. Propeller and engine damage signatures were consistent with the engines developing power at the time of impact. The wreckage was recovered to a secure facility, where it will be examined in detail.

According to the operator's and FAA records, the pilot had approximately 2,500 total hours of flight experience. He held multiple certificates and ratings, including a commercial pilot certificate with single-engine, multi-engine, and instrument-airplane ratings. His most recent FAA second-class medical certificate was issued in July 2011, and his most recent flight review was completed in September 2011.

According to FAA information, the airplane was manufactured in 1976, and was equipped with two Honeywell TPE-331 series turboshaft engines. The airplane was recently purchased by the operator, and was flown from Indiana to the operator's base in Arizona about 1 week prior to the accident. The airframe had accumulated a total time in service (TT) of approximately 8,188 hours. The left engine had accumulated a TT since major overhaul (SMOH) of about 545 hours, and the right engine had accumulated a TTSMOH of 1,482 hours.

The FFZ 1854 automated weather observation included winds from 350 degrees at 5 knots; visibility 40 miles; few clouds at 20,000 feet; temperature 23 degrees C; dew point -1 degrees C; and an altimeter setting of 29.93 inches of mercury. U.S. Naval Observatory data for November 23 indicated that the moon, which was a waning crescent of 3 percent, set at 1605, and local sunset occurred at 1721.


=================

Pinal County court records for Shawn Perry, the 39-year-old pilot whose small commuter plane crashed into the Superstition Mountains on Thanksgiving eve, reveal Perry allegedly grounded himself from his job as a pilot for Safford, Arizona-based Ponderosa Aviation, Inc. due to severe depression in 2010.

Perry had also filed for bankruptcy last year after he and his wife Karen previously underwent wage garnishment from their jobs as a pilot and flight attendant for Delta Airlines.

A response filed by the lawyer of Perry’s wife during the couple’s divorce proceedings in Nov. 2010 claim Perry wrote an email to his wife a few months prior outlining the extent of his depression.

“Today I spoke to the chief pilot at US Airways and Ponderosa and officially grounded myself due to my depression,” the document reads. “I have kind of opened a box and don’t really know what to expect from here.”

The response filed by Angela M. Wilson-Goodman of Wilson-Goodman & Fong PLLC said Perry was bi-polar and extolled suspicions that he combated thoughts of suicide. Perry wrote a short email to his wife around the time of his alleged depression-leave that simply read: “I wish you the best, I will always regret. Goodbye.”

Documents also show Perry, who perished along with his three children and two other passengers in the nighttime crash on Nov. 23, 2011, had filed for bankruptcy in Oct. 2010.

Onboard the plane were Perry, his son Luke, 6; Logan, 8; his daughter Morgan, 9; pilot Russel Hardy, 31; and plane mechanic Joseph Hardwick, 22.

Investigators with the National Transportation Safety Board are expected to release a preliminary report on the cause of the crash in the coming days.

Rockwell Commander 690A, N690SM: Accident occurred November 23, 2011 in Apache Junction, Arizona

NTSB Identification: WPR12MA046 
 Nonscheduled 14 CFR Part 91: General Aviation
Accident occurred Wednesday, November 23, 2011 in Apache Junction, AZ
Aircraft: ROCKWELL 690, registration: N690SM
Injuries: 6 Fatal.

This is preliminary information, subject to change, and may contain errors. Any errors in this report will be corrected when the final report has been completed. NTSB investigators traveled in support of this investigation and used data obtained from various sources to prepare this aircraft accident report.


On November 23, 2011, about 1831 mountain standard time (MST), a Rockwell International 690A, N690SM, was substantially damaged when it impacted terrain in the Superstition Mountains near Apache Junction, Arizona, about 5 minutes after takeoff from Falcon Field (FFZ), Mesa, Arizona. The certificated commercial pilot and the five passengers, who included two adults and three children, were fatally injured. The airplane was registered to Ponderosa Aviation, which held a Part 135 operating certificate, and which was based at Safford Regional Airport (SAD), Safford, Arizona. The personal flight was operated under the provisions of Title 14 Code of Federal Regulations Part 91. Night visual meteorological conditions prevailed, and no flight plan was filed.

According to several witnesses, the children's father, who was a co-owner of Ponderosa Aviation and who lived near SAD, regularly used the operator's airplanes to transport the children, who lived near FFZ, between FFZ and SAD or vice versa. According to a fixed base operation (FBO) line serviceman who was familiar with the children and their father, on the night of the accident, the children arrived at FFZ about 15 minutes before the airplane arrived. The airplane was marshaled into a parking spot adjacent to the FBO building; it was already dark. The father was seated in the front left seat and operating the airplane, and another individual was in the front right seat. After shutdown, the father and a third individual, whom the line serviceman had not seen before, exited the airplane. The individual in the front right seat did not exit the airplane; he remained in the cockpit with a flashlight, accomplishing unknown tasks, and subsequently repositioned himself to the front left seat.

The father went into the FBO to escort the children to the airplane. The father, three children and the third individual returned to the airplane. The individual in the front left seat remained in that seat, the third individual seated himself in the front right seat, and the father and three children situated themselves in the rear of the airplane. Engine start and taxi-out appeared normal to the line serviceman, who marshaled the airplane out of its parking spot.

Review of the recorded communications between the airplane and the FFZ air traffic control tower (ATCT) revealed that when the pilot requested taxi clearance, he advised the ground controller that he was planning an "eastbound departure." The flight was cleared for takeoff on runway 4R, and was instructed to maintain runway heading until advised, due to an inbound aircraft. About 90 seconds later, the ATCT local controller issued a "right turn approved" clearance to the flight. Review of the preliminary ground-based radar tracking data revealed that the takeoff roll began about 1826 MST, and the airplane began its right turn towards SAD when it was about 2 miles east of FFZ, and climbing through an altitude of about 2,600 feet above mean sea level (msl). About 1828, the airplane reached an altitude of 4,500 feet msl, where it remained, and tracked in an essentially straight line, until it impacted the terrain. The last radar return was received at 1830:56, and was approximately coincident with the impact location. The airplane's transponder was transmitting on a code of 1200 for the entire flight.

The impact site was located on steep rocky terrain, at an elevation of about 4,650 feet, approximately 150 feet below the top of the local peak. Ground scars were consistent with impact in a wings-level attitude. Terrain conditions, and impact- and fire-damage precluded a thorough on-site wreckage examination. All six propeller blades, both engines, and most major flight control surfaces were identified in the wreckage. Propeller and engine damage signatures were consistent with the engines developing power at the time of impact. The wreckage was recovered to a secure facility, where it will be examined in detail.

According to the operator's and FAA records, the pilot had approximately 2,500 total hours of flight experience. He held multiple certificates and ratings, including a commercial pilot certificate with single-engine, multi-engine, and instrument-airplane ratings. His most recent FAA second-class medical certificate was issued in July 2011, and his most recent flight review was completed in September 2011.

According to FAA information, the airplane was manufactured in 1976, and was equipped with two Honeywell TPE-331 series turboshaft engines. The airplane was recently purchased by the operator, and was flown from Indiana to the operator's base in Arizona about 1 week prior to the accident. The airframe had accumulated a total time in service (TT) of approximately 8,188 hours. The left engine had accumulated a TT since major overhaul (SMOH) of about 545 hours, and the right engine had accumulated a TTSMOH of 1,482 hours.

The FFZ 1854 automated weather observation included winds from 350 degrees at 5 knots; visibility 40 miles; few clouds at 20,000 feet; temperature 23 degrees C; dew point -1 degrees C; and an altimeter setting of 29.93 inches of mercury. U.S. Naval Observatory data for November 23 indicated that the moon, which was a waning crescent of 3 percent, set at 1605, and local sunset occurred at 1721.



APACHE JUNCTION, Ariz. - On the night before Thanksgiving, a plane crashed into the side of the Superstition Mountains, killing everyone on board.

There were six people on the plane, including a father and his three children. They were headed to Safford to celebrate the holiday.

Now the mother of those children is speaking publicly for the first time.

Karen Perry's entire immediate family was tragically killed and she's decided to open up to the public by sitting down with the Pinal County Sheriff's Department for an interview to let everyone know how she's doing.

"I'm holding up as best as I can. I've had a great deal of family and friends visiting and helping and organizing how we're going to deal with the next few weeks and the services and all that," she said.

Morgan, Logan and Luke -- the three children who died in the crash were not the only victims. Their father, Shawn Perry, along with fellow pilot Russell Hardy and airplane mechanic Joseph Hardwick.

"I'm deeply touched by everything that has been put out for my family," she said. "They were very special children."

Pictures and video captured the moment of the plane crash and the fiery aftermath.

Along with analysis of the wreckage should shed some light on the crash, but the National Transportation Safety Board has yet to offer any details at this point. But an NTSB investigator did say radar data shows the pilot turned to the southeast and "basically flew straight and level" until his small plane hit the peak.

Karen is preparing for services to honor the victims and surviving with the support of others.

"It's just a tragic event and I think we all need answers..we all want answers and it's going to take awhile for that to happen."

The sheriff's office distributed the Perry's interview to the media because she's been flooded with phone calls and visits from multiple reporters. She says she's received condolences from around the world.

The NTSB has not yet released results of their preliminary investigation.

http://www.myfoxphoenix.com

Supreme Court takes case on pilot's privacy

STORY HIGHLIGHTS
  • The court tries to figure out what Congress intended by the words "actual damages"
  • Stanmore Cooper says the words cover mental and emotional distress
  • The government argues they are aimed at monetary damages
  • Cooper says the public disclosure of his HIV status caused him harm
Washington (CNN) -- The Supreme Court wrestled Wednesday with a familiar, if elusive, foe -- legislative intent -- when considering whether a California man should be compensated after the government violated his privacy by disclosing his personal medical history.

The justices appeared torn over the meaning of two fuzzy words in federal law -- "actual damages" -- and whether Stanmore Cooper's claims of mental and emotional distress are covered under the Privacy Act.

"The argument you have made -- and I certainly understand it, that this is the Privacy Act and so it's precisely these types of damages that you would be concerned about -- really cuts both ways," said Chief Justice John Roberts to Cooper's lawyer.

"What you are saying is this (law) covers a really big chunk of damages, because this is what the whole act was about," Roberts said. "And it seems to me that argument suggests that there is some weight to the government's point: that if you are going to get that, you really do need clearer" language in the law that would immunize the government to some extent, from a flood of hard-to-disprove lawsuits.

The ambiguity has divided lower courts for years, and privacy experts say the ease with which the government can collect and share information in the digital age makes the issue of personal privacy liability ripe for review.
 
Cooper, 69, became a licensed recreational pilot in 1964, but two decades later the San Francisco man was diagnosed with the HIV virus. As his condition worsened over time, he let his private pilot's certificate and his airman medical certificate lapse.

Read More:  http://www.cnn.com
 .

Piper PA-32RT-300T, N36824: Accident occurred November 29, 2011 in Hailey, Idaho.

NTSB Identification: WPR12LA048 
 14 CFR Part 91: General Aviation
Accident occurred Tuesday, November 29, 2011 in Hailey, ID
Aircraft: PIPER PA-32RT-300T, registration: N36824
Injuries: 1 Serious,1 Minor.

This is preliminary information, subject to change, and may contain errors. Any errors in this report will be corrected when the final report has been completed. NTSB investigators may not have traveled in support of this investigation and used data provided by various sources to prepare this aircraft accident report.


On November 29, 2011, about 1900 mountain standard time, a Piper PA-32RT-300T, N36824, impacted the terrain about one mile east of Friedman Memorial Airport, Hailey, Idaho. The pilot received minor injuries, his passenger received serious injuries, and the airplane, which was owned and operated by the pilot, sustained substantial damage. The 14 Code of Federal Regulations Part 91 personal transportation flight, which had just departed Hailey for Nampa, Idaho, was being operated in night visual meteorological conditions. No flight plan had been filed.

According to the pilot, during the initial climb over the valley that extends south from Hailey, he was focused on trying to get the autopilot system set up in a manner that would allow it to be used to direct the airplane to Nampa. During the time that the pilot was focused on the autopilot, the airplane began turning to the left without him being aware of it. As the airplane continued to turn, it approached the steeply rising terrain to the east of the airport. The passenger, who was looking outside, noticed the oncoming terrain and made the pilot aware of the situation. When the pilot saw the terrain, he quickly reached the conclusion that he was not going to be able to avoid it, so he maneuvered the airplane into a controlled crash.





The Federal Aviation Administration and the Clark County Sheriff's Office are investigating the crash of a small plane Tuesday night. The sheriff's office says the call came in just after 7 PM that a small plane went down on the mountain just east of Hailey.

The pilot, 56-year-old Paul Tower of Boise, told officials that he tried to activate the plane's autopilot after takeoff from Friedman Memorial Airport to a route Tower programmed before takeoff. Tower said it didn't engage correctly and the plane banked left sharply. Tower said he could see the mountain in his landing lights so he pulled up to slow the plane. The aircraft hit the mountain on the ridge at the top of Water Gulch.

Tower and his passenger, 40-year-old Christina Rathbun of Boise were taken to St. Luke's Wood River Medical Center by helicopter. They were later flown to St. Luke's in Boise. 

HAILEY, IDAHO  - Two people from Boise were hurt after their private plane crashed near Hailey last night.

The Blaine County Sheriff's Office said 56–year–old Paul Tower was the pilot of the plane.

Police said he attempted to activate the auto pilot just after take off from the Friedman Memorial Airport.

He set a pre programmed course when he noticed the auto pilot did not seem to engage correctly.

Police said the plane then banked sharply to the left and he could see the mountain in his landing lights.

He pulled up to slow the plane and the plane impacted the mountain on the ridge at the top of water gulch.

Police said the passenger in the plane was 40–year–old Christina Rathbun.

Both individuals were taken to St. Luke's in Boise.

The crash is still under investigation.

IDENTIFICATION
  Regis#: 36824        Make/Model: PA32      Description: PA-32 Cherokee Six, Six, Saratoga, Turbo
  Date: 11/30/2011     Time: 0156

  Event Type: Incident   Highest Injury: Minor     Mid Air: N    Missing: N
  Damage: Unknown

LOCATION
  City: HAILEY   State: ID   Country: US

DESCRIPTION
  AIRCRAFT CRASH LANDED IN A REMOTE AREA, NEAR HAILEY, ID

INJURY DATA      Total Fatal:   0
                 # Crew:   2     Fat:   0     Ser:   0     Min:   2     Unk:    
                 # Pass:   0     Fat:   0     Ser:   0     Min:   0     Unk:    
                 # Grnd:         Fat:   0     Ser:   0     Min:   0     Unk:    

WEATHER: VFR

OTHER DATA
  Activity: Pleasure      Phase: Unknown      Operation: OTHER


  FAA FSDO: BOISE, ID  (NM11)                     Entry date: 11/30/2011 
 
http://registry.faa.gov/N36824
 
http://www.airnav.com/airport/SUN
 
http://www.kmvt.com
 

Great Lakes Helicopter Releases A Statement About Losing Their Pilot, Friend: She Was More Than An Employee


Great Lakes Helicopter Loses Pilot

Breslau, ONTARIO - Yesterday morning at approximately 11:30 a.m., One of Great Lakes Helicopters was informed that one of our helicopters had been involved in an accident.

The Robinson 22 Helicopter C-GVAR piloted by 29 year-old flight instructor Tiffany Hanna, was conducting a routine flight training exercise with a student at the time of the incident.

“We are saddened and shocked by the loss of flight instructor, Tiffany Hanna who did not survive the accident,” said Jo Anne Leyburne, General Manager of Great Lakes Helicopter. “Tiffany was more than just an employee, she was a great friend and confidant. We have all lost a dear member of the Great Lakes family. Our thoughts and prayers go out to all families and friends at this difficult time.”

The Transportation Safety Board is investigating the accident but the cause has not been determined.

Our student was taken to Hamilton General Hospital where he is being treated for his injuries. No further details are being released by the hospital at this time.

A memorial trust fund will be set up for Tiffany’s immediate surviving family. Please check out our website next week for details.

Given the circumstances we ask the media to respect the privacy of family and friends as they deal with this tragedy. No further comment will be made at this time.

Jo Anne Leyburne

General Manager
Great Lakes Helicopter

Victim identified in crash: Helicopter pilot conducting flight training

Twenty-nine-year-old helicopter pilot and mother of two Tiffany Hanna has been identified as the victim in Monday’s fatal helicopter crash at the Region of Waterloo International Airport.

Victim identified in crash.
Tiffany Hanna

Twenty-nine-year-old helicopter pilot and mother of two Tiffany Hanna has been identified as the victim in Monday’s fatal helicopter crash at the Region of Waterloo International Airport.

Hanna, a flight instructor with Great Lakes Helicopter, was conducting a routine flight training exercise with a student Monday morning, when the helicopter crashed into a stormwater pond at the airport.

Hanna was pronounced dead at the scene. Her student, who has yet to be identified, was rushed to a Hamilton General Hospital to be treated for injuries.

Investigators with the Transportation Safety Board of Canada have indicated it appeared the helicopter, a Robinson 22, lost power soon after takeoff and hit the ground hard. But officials aren’t making any premature guesses as to the cause of the crash.

“The engine has been removed and has been transported to our Richmond Hill office,” explained safety board spokesperson Julie Leroux.

While the investigation continues, Hanna’s family and co-workers are left in mourning,
reflecting upon memories shared with the young pilot and mother.

Great Lakes Helicopter general manager Jo Anne Leyburne offered condolences in a statement from the company.

“Tiffany was more than just an employee, she was a great friend and confidant. We have all lost a dear member of the Great Lakes family. Our thoughts and prayers go out to all families and friends at this difficult time.”

A memorial trust fund is being set up to help support Hanna’s family, with details about the fund on the company’s website at www.greatlakeshelicopter.ca.

Funeral services for Hanna will be held on Friday at 11 a.m. at Brock and Visser Funeral Home in Woodstock. Hanna’s obituary noticed stated that she was the beloved partner of Stephen Dillman and the much-loved mother of Tyler and Daxton.

 http://www.cambridgetimes.ca

Two people missing, feared dead after helicopter crashes while fighting fire in New Zealand

WELLINGTON, New Zealand — A pilot and conservation worker are missing and feared dead after the helicopter they were flying to fight a fire crashed into the ocean off New Zealand’s far north coast.  Northland police inspector Lou Alofa said the helicopter was located Thursday morning in about seven meters (23 feet) of water and that dive teams were on their way to the scene. He said the chopper went missing Wednesday night while fighting a large scrub fire in Matai Bay near Kaitaia.

Alofa said the fire broke out at about 7 p.m. Wednesday. Reports indicate the fire burned down at least two homes.  Department of Conservation spokesman Rory Newsam said a Northland staff member is missing and the agency was meeting Thursday with the family of the worker.

Cessna 182: 2 confirmed dead in Ruidoso plane crash, canine was also killed. Destination airport: Sierra Blanca Regional (KSRR), New Mexico.

RUIDOSO, NM  -Two people were confirmed dead Wednesday afternoon after officials found a crashed plane 40 miles outside of Ruidoso.

The plane left Scurry County for Ruidoso New Mexico but never landed. The plane was reported missing on Saturday. The single engine Cessna was registered to "JD & KAT LTD" out of Snyder, Texas.

A family member has told KCBD that the fatalities included plane owner Jerry Don Greene of Hermleigh, Texas and a woman whose name has not yet been released. Greene's dog was also killed in the accident.

Initial reports said 3 people were killed.

FAA and NTSB officials are investigating.
----------
Authorities on Wednesday found the wreckage of a plane that crashed near Roswell, killing all three people aboard.

The Federal Aviation Administration said the single-engine Cessna 182 plane left Snyder, Texas, on Saturday and apparently was headed to Sierra Blanca Regional Airport in Ruidoso. No flight plan was filed.

The plane was reported missing on Tuesday, according to the FAA, and search and rescue crews found the wreckage shortly after 11 a.m. Wednesday about 37 miles west of Roswell.

Investigators from the National Transportation Safety Board and the FAA are en route.

The names of the victims have not yet been released.

FAA records show the plane was registered to JD & KAT Ltd. in Snyder.

http://www.airnav.com/airport/KSRR

South Dakota Wing Celebrates 70th Anniversary of Founding of the Civil Air Patrol, Sub Chasers

FOR IMMEDIATE RELEASE

RELEASED 30 November 2011

FOR MORE INFORMATION: Contact Capt. Todd Epp, SDWG public affairs officer, 605.351.5021 and toddepp@ymail.com.

SDWG CELEBRATES 70TH ANNIVERSARY OF FOUNDING OF CIVIL AIR PATROL, SUB CHASERS

RAPID CITY, S.D.--On Dec. 1, Civil Air Patrol, the official auxiliary of the U.S. Air Force and its three hundred members across South Dakota, observe 70 years of vigilant service. But the celebration won’t be complete until CAP’s earliest members – now in their eighties and nineties – are “rightly honored” with the Congressional Gold Medal.

The CAP has squadrons in Sioux Falls, Yankton, Brookings, Pierre, Rapid City, Aberdeen, Philip, Spearfish, and Custer. The South Dakota Wing is located in Rapid City.

CAP, an all-volunteer service of more than 61,000 members, was founded 70 years ago on Dec. 1, 1941, less than a week before the Japanese attack on Pearl Harbor led to America’s involvement in World War II. Known at the time as the Coastal Patrol, members soon proved their worth by conducting aerial missions at the request of the Office of Civilian Defense, displaying heroism that discouraged and eventually stopped deadly German U-boat attacks on supply ships leaving American ports headed to support the Allied war effort.

The “subchasers” flew at great personal risk. In all, 90 CAP planes were forced to ditch at sea. Of the 59 CAP pilots killed during World War II, 26 were lost while on Coastal Patrol duty and seven others were seriously injured while carrying out the missions. Their wartime service was highly unusual because they were civilian volunteers flying combat missions in their own aircraft at a time when the military could not adequately respond the U-boat threat. The military decided to arm their aircraft soon after the patrols began and, all told, they sank or damaged two or more submarines and attacked 57.

Legislation has been introduced and is pending in both houses of the U.S. Congress, H.R. 719 and S. 418, that would award CAP a Congressional Gold Medal for its World War II service. It will be a diminished victory, however, if none of the World War II-era CAP members are alive to see this law’s passage.

“These members from our earliest days as an organization helped save lives and preserve our nation’s freedom,” said Maj. Gen. Chuck Carr, CAP’s national commander. “They were truly unsung heroes of the war, using their small private aircraft to search for enemy submarines close to America’s shores, towing targets for military practice, transporting critical supplies within the country and conducting general airborne reconnaissance. They provided selfless service, without fanfare, in defense of their homeland.”

Time, instead of a German submarine, is now the enemy of the roughly 60,000 CAP volunteers from World War II. Only a few hundred of them are still alive today.

“Each week, each month, others are lost,” said Carr. “We want to make sure those who remain, and those who have passed, are rightly honored for their great service to America.”

These early CAP heroes included men like Vern Kraemer of Spearfish, S.D. Kraemer was not only a CAP sub chaser assigned to an East Coast squadron but a South Dakota aviation pioneer as well.

“Whether it was during the darkest days of World War II or during the recent unprecedented flooding on the Missouri River, South Dakotans have been at the forefront of the Civil Air Patrol in serving their state and nation when needed most,” said Col. Teresa Schimelfening, commander of the South Dakota Wing.

To support CAP’s Congressional Gold Medal legislation, contact federal legislators, both senators and representatives, and ask them to cosponsor H.R. 719 and S. 418. In both houses, two-thirds of the membership must sponsor a bill before it can be brought up for a vote. Sample letters and other details, including a list of current cosponsors, are available at www.capmembers.com/goldmedal.

Meanwhile, anyone with information on adult CAP members who served the organization during World War II is encouraged to upload their information into the World War II Congressional Gold Medal database at www.capmembers.com/goldmedal.

Civil Air Patrol, the official auxiliary of the U.S. Air Force, is a nonprofit organization with more than 61,000 members nationwide. CAP, in its Air Force auxiliary role, performs 90 percent of continental U.S. inland search and rescue missions as tasked by the Air Force Rescue Coordination Center and was credited by the AFRCC with saving 54 lives in fiscal year 2011. Its unpaid professionals also perform homeland security, disaster relief and drug interdiction missions at the request of federal, state and local agencies. The members play a leading role in aerospace education and serve as mentors to nearly 27,000 young people currently participating in CAP cadet programs. CAP has been performing missions for America for 70 years. It is a major partner of Wreaths Across America, an initiative to remember, honor and teach about the sacrifices of U.S. military veterans. Visit www.sdcap.us., www.gocivilairpatrol.com or www.capvolunteernow.com for more information on CAP.

Black Hawk helicopter forced to make precautionary landing in Thornleigh (Australia)

No parking ... the helicopter looks out of place in this park
Photo Credit: Tony Vermeer

AN Army Black Hawk helicopter on a training flight was forced to land at a park in Sydney's north west this afternoon.   A Department of Defence spokesman said the helicopter had to make a "precautionary landing" after a warning light lit up in the cabin, The Daily Telegraph reported.

"The crew then followed standard operating procedures and called possible assistance necessary and subsequently landed the Black Hawk," the spokesman said.  They landed at Headen Park in Thornleigh about 5.30pm where a maintenance team has been sent to investigate why the warning light had activated. No one was injured and there was no damage to the helicopter as a result of the landing.

Airport body scan debate heats up after European ban

The controversy over airport body scanners – and how safe they are – is taking on new urgency after European authorities this month banned the machines after studies linked them to a small number of cancer cases.

The same type of backscatter scanners, which emit low-level radiation, are used at dozens of U.S. airports, including Fort Lauderdale-Hollywood and Orlando international airports.

Sari Koshetz, spokeswoman for the Transportation Security Administration, said it wouldn't be appropriate to comment on the Nov. 14 decision by the European Commission, which affects all airports in Europe. But she maintains the scanners are safe, even for pregnant women and children.

"We rigorously test our technology to ensure it meets our high detection and safety standards before it is placed in airports," she said.

Still, Steve Landes, director of the South Florida Airline Commuters Association, which has several hundred frequent flier members, said those who have to fly two to three times a week might want to avoid the scanner.

"Let's put it this way, I would have to be a fool to say I wouldn't have any concerns," said Landes, of Boynton Beach.

The backscatter scanners use low-level radiation to detect dangerous items, notably explosives, on passengers. The TSA also uses a second type of scanner that relies on millimeter-wave technology, or radio waves, to search for dangerous items.

Those machines, which health authorities consider to be safer, have been installed at eight commercial airports in Florida, including those in Miami and West Palm Beach.

Koshetz said the decision to install the radiation-emitting backscatter scanners in Fort Lauderdale in May 2010 was "complex" and involved numerous factors, including checkpoint configuration and the availability of those scanners at the time.

Helping to convince European authorities to impose the ban was a recent PBS Newshour/ProPublica report, which said: "Research suggests that anywhere from six to 100 U.S. airline passengers each year could get cancer from the machines." Scientific American also ran a story, detailing the results of the PBS/ProPublic investigation.

The report follows previous studies that had also concluded the scanners could trigger cancer cases among the tens of millions of passengers who pass through airports each year.

The U.S. Food and Drug Administration countered the cancer risk is about 1 in 400 million.

http://articles.sun-sentinel.com

Doctors killed in plane crash. Mundubbera, Queensland, Australia





A HUSBAND and wife with the Royal Flying Doctor Service have been killed after their plane crashed in regional Queensland.  Around 7.40am, a single-engine plane plummeted into a sports field adjacent to Mundubbera airport, about 200km west of Maryborough.  The plane, which has been identified as a Cessna 206 that was registered to an aero club in Monto, burst into flames on impact, killing the pilot and another occupant.

Police say the plane was completely destroyed.  Witnesses reported that the plane had taken off and banked around to the right, as though heading back towards the airport, before falling out of the sky.  The debris is scattered across 50 metres and the plane is reportedly a blackened wreckage with only the tail recognisable.   The plane is reportedly registered to an owner in Monto, about 100km north of the crash site.

Police said the bodies are badly burned and forensic teams are working to identify them so they can contact the next of kin.   They said it could take some time to determine their names because of the condition of the remains.  Both of the deceased are believed to have been doctors with the Royal Flying Doctor Service.   Officials are also preparing a report for the coroner so the deaths can be further investigated.

It is believed the plane encountered difficulties shortly after it began taking off from Mundubbera airport and crashed into an adjacent sports field.  An emergency services spokeswoman said there were explosions from the plane that set alight nearby grassland.   Firefighters soon brought the blaze under control and worked to make the area safe.  The airport has been shut down and additional police sent from Maryborough. The airport reopened around noon.  Trevor Harvey from the North Burnett Regional Council had been to the crash site and said the plane had practically disintegrated on impact.

“Put it this way, there’s virtually nothing left of it to look at,” he said.

“There’s no indications from anybody yet as to who owned the plane.

“Being a small community everybody’s in shock, not knowing who’s involved people just don’t know what’s going on.”

He said the planes that used the small airstrip were all privately owned or part of the Royal Flying Doctor Service.  The airstrip has now been reopened.  A spokesman for the Civil Aviation Safety Authority would not comment on the incident, but estimated up to 40 fatalities occurred each year in Australia as a result of light aircraft crashes.

"Because the accident has just happened and investigations haven't even started yet it's not appropriate to speculate," he said.

"It'll be some months before the full picture is pieced together."

North Burnett mayor Joy Jensen said roads adjacent to the airport had been closed and news of the crash was slowly starting to spread through the Mundubbera community.

“Word is just getting out and we’re all wondering who was involved and are concerned for the occupants of the plane,” she said.

“I do have concerns about those individuals and their families, any tragedy like this has devastating ramifications for the family.

“In Mundubbera and the North Burnett, we all know each other so we’re all very concerned.”

Cr Jensen said that the airstrip serviced mostly localised flights so there was a high probability the people involved were from Mundubbera.

“It’s localised traffic so unfortunately we probably do know the people involved.

“We’re just waiting for the police to complete their investigations and get back to us with the details.”

SHOCK rippled through the Monto community yesterday as it was confirmed two country doctors were tragically killed in a light plane crash at Mundubbera yesterday.  Monto Family Practice’s Dr Dan Rainolds and Dr Myrthe Runne died when their plane exploded into flames near the Mundubbera airstrip, a few kilometres from the town’s centre, yesterday morning.

The light plane took off about 7.22am.  A Mundubbera man – who was near the airstrip at the time of the crash – said he saw a plane “with a faulty sounding engine” and then heard a crash.  Maryborough police Inspector Daryl Powell attended the scene and said after getting airborne, the plane lost airspeed and impacted heavily in a grassy paddock adjacent to the air strip.

“The plane exploded into flames and caused a grass fire,” he said.  Queensland Fire and Rescue Service personnel extinguished the fire and removed the bodies from the wreck.  When the Aviation Authority was informed of the tragedy, it directed forensic crash investigator Senior Constable Glen Rusten, from Maryborough, to carry out the investigation.

Media from several television stations were at the scene by noon but weren’t allowed near for fear of destroying evidence.  The job of the forensic officers was made difficult because much of the wreckage was incinerated.  North Burnett Council engineer Trevor Harvey said even though it is only a small airstrip it is used regularly by a couple of local businessmen and is vital for the Flying Doctors.
——————-
COLLEAGUES and friends have paid tribute to two locum doctors who died when their light aircraft crashed into fields near Mundubbera Airport yesterday.

Dr Dan Rainolds, 48, and his partner Dr Myrthe Runne, 37, were killed instantly when their Bede BD-4 plane crashed into the grounds of the Small Bore Rifle Club soon after taking off at 7.30am, and burst into flames on impact.

Yugoslavia-born Dr Rainolds and Netherlands-born Dr Runne were both contracted to work in Monto until June next year, but were believed to be heading back to their home in Warwick for a few weeks break.

Work colleagues at Monto Family Practice and Central Queensland Rural Division of General Practice paid tribute to the dedicated medicos.

“Our deepest sympathies, thoughts and prayers go out to their family and loved ones,” a spokeswoman for the practice said.

“They will be sadly missed.”

Monto pilot John MacElroy said the pair had both been avid flyers – Dr Rainolds was a general aviation pilot and Dr Runne a recreational pilot.

“They were very, very nice people – they will be a great loss to the community,” he said.

Mr MacElroy said he first met the friendly couple when they flew into Monto about three weeks ago.

“We organised a shed for his aeroplane – that’s how we got to know them,” he said.

“He loved to fly and he had big plans of flying to Europe. They’re all gone now.”

Mr MacElroy said both doctors had died “doing what they loved”.

Health Workforce Queensland chief executive officer Chris Mitchell said his team were extremely saddened by the deaths of “two fine rural and remote doctors”.

“Dr Dan was a very active locum for the agency for many years, and he provided an excellent service to a number of rural towns during this time,” he said.

“Dr Myrthe Runne was recruited to work in Cloncurry and she enjoyed the clinical work, the warm sun and friendliness of the community, as well as the wide open spaces of western Queensland.”

The Health Workforce’s publication, Heart of the Bush, featured two separate interviews with the doctors, who spoke of their passion for their work in regional and remote communities.

During her interview, Dr Runne professed her love for adventure and her career.

“Because you know your patients well, you can really make a difference and that is the main reason I have become a GP, and I hope that goes for most of us,” she told the journal.

In his interview, Dr Rainolds said he had been globetrotting since he was 13, and spoke of Australia’s “fresh spirit of prosperity and fun that one can see in the old and nostalgic videos of the Beach Boys’ concerts in the ’60s”.

Police would not comment in detail on the incident yesterday, except to say the result of their investigations would be given to the Coroner.

The Australian Transport Safety Bureau told the NewsMail it would not be investigating.

Boeing's decision to locate the 737 MAX in Renton is result of long, proactive effort, SPEEA says



For Immediate Release November 30, 2011


Boeing’s decision to locate the 737 MAX in Renton is result of long, proactive effort, SPEEA says

SEATTLE – The Boeing Company’s announcement to build the 737 Max at the Renton plant culminates months of work by labor, government and business to ensure the next generation aircraft will be built by the most experienced workforce in the world at building single aisle commercial aircraft, according to leaders of the Society of Professional Engineering Employees in Aerospace (SPEEA), IFPTE Local 2001.

“This is really good news for employees, our communities and Boeing,” said SPEEA President Tom McCarty. “It means secure jobs continuing far into the future.”

SPEEA, along with the IAM and others, co-sponsored an independent study of possible locations for the 737 MAX. Released earlier this month, the study showed building the new aircraft in Renton, where the existing 737 is built, is the best option with the lowest risk. Government and businesses also helped fund the study and campaign, called Project Pegasus.

“This was a very proactive effort to make sure these planes are designed and built by the most experienced and productive workforce in the world,” McCarty said. “That workforce includes the employees represented by SPEEA and the IAM in Washington, Oregon and Kansas.”

A local of the International Federation of Professional and Technical Engineers (IFPTE), SPEEA represents 25,460 aerospace professionals at Boeing, Spirit AeroSystems in Kansas, Triumph Composite Systems, Inc., in Spokane, Wash., and BAE Systems, Inc., in Irving, Texas.

# # #

Contact: Bill Dugovich, SPEEA communications director, (206) 674-7368 or (206) 683-9857

Ray Goforth, SPEEA executive director, (206) 433-0991

Continental: Demand not sufficient for Orange County-to-Kahului flight

WAILUKU - Continental Airlines will end its nonstop flights between Orange County and Kahului Airport on Jan. 3, an airline spokeswoman confirmed Tuesday.

"The demand in the market is not sufficient to sustain the service in the long term," said Julie King, spokeswoman for United Continental Holdings Inc.

The airline will continue the daily service during the peak holiday period from Dec. 15 to Jan. 2, but end the flights on its 124-seat Boeing 737-700 the next day, she said.

The airline is contacting customers booked on flights after Jan. 2 between Maui and Orange County, King said. The airline will continue to have flights from Los Angeles to Maui and Honolulu, and travelers can be accommodated on those flights or receive a refund. Continental began its Maui-Orange County service in March 2010.

http://www.mauinews.com

Air India​ to go ahead with plan to buy Boeing 787s. The carrier aims to opt for a sale-and-leaseback arrangement to partially stem the financial drain this will entail.


Mumbai: Cash-strapped Air India, seeking more money from the government and trying to pare costs, will nevertheless press ahead with the purchase of all the 27 Boeing 787 aircraft it agreed to acquire in 2006.

The carrier aims to opt for a sale-and-leaseback arrangement to partially stem the financial drain this will entail, Air India’s board decided on Tuesday in a meeting.

The airline also plans to lease out some of its planes, both old and new, to reduce its debt burden of Rs43,777 crore. The carrier is also considering a proposal to replace full meals with a snack for flights of less than 90 minutes and to do away with hot meals for flights of less than an hour.

The carrier expects to save Rs300 crore by leasing aircraft and another Rs250 crore through the renegotiation of contracts in material consumption in this fiscal year, according to two senior Air India executives who didn’t want to be named.

The board also decided that the carrier may lease out excess capacity of two Boeing 747-400​ planes and some Boeing 777-200​ long-range planes once the airline receives the Boeing 787s, also known as the Dreamliner.

Mint’s P.R. Sanjai says cash-strapped Air India will go ahead with its plan to acquire 27 Boeing 787 Dreamliner planes but will use cost-cutting methods to reduce its burden

The ministry of civil aviation has said previously that Air India has no money to buy the 787s and was exploring the option of postponing or cancelling a portion of the 27-plane order.

Air India said in a press release that the board approved the issue of a request for proposal for the 787 aircraft under the sale-and-leaseback mechanism, pending government clearance.

Mint reported on 24 July that Air India was exploring the sale-and-leaseback route for acquiring 27 Dreamliners as one of the options to reduce its debt burden. Large leasing companies such as International Lease Finance Corp. and GE Capital Aviation Services​ buy planes from airlines and lease them back to the carrier.

A sale-and-leaseback agreement typically allows airlines to generate additional capital and is often a stop-gap arrangement to project a healthier balance sheet as the debt will not be reflected on the books.

“In effect, this is an operating expenditure model rather than a capital expenditure model,” said Narayan K. Seshadri, chairman and chief executive officer of Halcyon Resources and Management Pvt. Ltd. Seshadri is known for turning around private companies. “In this exercise, you will make some money. But largely the airline industry is dependent upon the recurring scenario of economic growth and fuel cost pressures.”

In the last fiscal year, Air India’s fuel costs rose 18% to Rs1,097 crore, wage costs rose Rs295 crore due to an increase in gratuity provisions, depreciation by Rs300 crore due to fleet additions and interest costs by Rs860 crore due to an increase in borrowing and higher interest rates, the carrier said in the release.

On Monday, a consortium of banks broadly agreed to Air India’s debt recast plan following the Reserve Bank of India’s approval for the restructuring process.

The debt recast plan seeks to convert Rs11,000 crore of short-term working capital loans into long-term debt, thus extending the carrier’s repayment period. The airline also wants to turn Rs7,000 crore of debt into cumulative preference shares bearing an 8% dividend rate that lenders will subscribe to.

Air India expects the debt recast will lead to savings of Rs1,000 crore on interest payments. Apart from this, the airline has asked the government for an immediate equity infusion of Rs6,750 crore to tide over the crisis. According to the latest plan submitted to the government, the carrier is seeking total equity support of Rs42,920 crore till fiscal 2021. It also wants government guarantees for aircraft loans worth Rs30,584 crore till fiscal 2021.

The carrier currently has total debt of Rs43,777 crore, including loans and dues it owes to vendors such as oil companies and airport operators, Parliament was told on Thursday. Air India has accumulated Rs13,300 crore in losses since its merger with state-owned Indian Airlines​ in 2007.

“The financial restructuring envisaging lower interest rates and longer duration of loans was okayed by lenders for Air India. But this is just a part of restructuring. Air India has to carry out operational restructuring and without that the financial restructuring will not be successful,” said Ashesh Shah, director and founder of Trans-Continental Capital Advisors Pvt. Ltd, a company that gives financial advisory and turnaround assistance to many firms in India and abroad.

The state-run carrier is losing market share on routes where it no longer has a monopoly, he said.

“Air India has to cut down costs, matching private rivals. It should get people back to flying Air India. Otherwise, the desired effect of financial restructuring will not be derived,” said Shah, who has 15 years of experience in corporate restructuring and turnarounds.

Other experts endorsed this view.

Air India’s products are not competitive and its brand has suffered, said Nawal Taneja, professor emeritus at Ohio State University’s department of aviation.

“It needs to get its act together, starting with the timely and decisive integration of Air India and Indian Airlines, followed by realistic strategies to join an alliance. Through the development of competitive products and a sought-out brand it can stop discounting prices to uneconomical levels,” he said.

http://www.livemint.com