March 21, 2015 Newsletter

Airline Industry News 

Governmental and Regulatory

 Rep. Joe Heck, R-Nev., and Rep. Mike Quigley, D-Ill., are sponsoring a bill that would require countries participating in the visa waiver program to meet certain security standards.  

A report released by the U.S. Transportation Department Office of Inspector General (OIG) found that the FAA lacks the training and guidance necessary to enforce Bush-era regulations that allow carriers to disclose hazardous material violations voluntarily, without incurring civil penalties. 

Top positions at five federal transportation agencies, including the Transportation Security Administration, are currently held by interim chiefs. A bipartisan group of lawmakers, including Sens. John Thune, R-S.D., Bill Nelson, D-Fla., Kelly Ayotte, R-N.H., Maria Cantwell, D-Wash., and Deb Fischer, R-Neb., sent a joint letter to the Obama administration calling for a full-time TSA nominee.  

The U.S. Senate unanimously confirmed Christopher Hart as the new chairman of the National Transportation Safety Board. Hart has served as acting chairman since April, when former Chairman Deborah Hersman resigned from the board.  

The Obama administration is reviewing claims by three U.S. airlines that Persian Gulf airlines are receiving government subsidies. "[W]e are in the early stages of thoroughly reviewing this matter in close coordination with our interagency partners," said Ryan Daniels, press secretary for the Department of Transportation.

Airlines, Industry and Labor 

FedEx reported a 53% increase in earnings for the fiscal third quarter on a year-over-year basis. FedEx posted a $580 million profit for the quarter, which included the busy holiday shipping season.  

Boeing announced it has delivered its first 787-9 built in South Carolina to United Airlines this week. "In 2012, we delivered our first South Carolina-built 787-8, and less than three years later, we're celebrating another significant milestone – our first 787-9 delivery," said Beverly Wyse, vice president and general manager of Boeing South Carolina.  

Atlas Air Worldwide Holdings plans to order more Boeing 747-8 at some point, its chief executive said Tuesday.