Week In Review News Items
Legislative, Safety and Regulatory
Randy Babbitt, head of the Federal Aviation Administration, said he is concerned that lawmakers will approve a funding bill for his agency that is "well below" the White House's proposal. "Funding at these levels would degrade the safe and efficient movement of air traffic today and in the future," Babbitt said. The Atlanta Journal-Constitution
Officials at Airbus and Air France-KLM are hopeful that the recently recovered data recorders from the June 2009 flight that mysteriously disappeared and crashed into the Atlantic Ocean will help solve the mystery of what brought down the flight. provide a cause for the incident. Pierre-Henri Gourgeon, chief executive officer at Air France, announced that not only had the flight data recorder's memory unit and CVR had been recovered.
Airline Industry Finances and Structures
US Airways remains the subject of merger speculation in the airline industry a year after its discussions about a combination with United Airlines ended. The Charlotte Observer reports that Chief Executive Officer Doug Parker has mentioned consolidation twice in the past month. However, in a recent interview, Parker declined to speculate on a potential merger partner for the airline and also noted that the carrier would remain financially viable on its own…As the summer travel season approaches, airline stocks have started to rebound after dropping for the past five months.
Boeing’s 747-8 jet production line shut down this week and through June 7 to give its mechanics time to deal with unfinished jobs that are causing problems on the line, but said the move won't affect its delivery to Cargolux, which is set for this summer.
Hawker Beechcraft must pay $14.2 million to Airbus over a lost revenue dispute. The International Chamber of Commerce made the ruling after Airbus complained that a Hawker Beechcraft reduction in the number of shipsets of fuselages, wings, track kits and spare parts cost Airbus revenue. Airbus had originally asked for $60 million.
Miscellaneous
Boeing executives have stated that said the company will deliver the first 787s
in the third quarter of this year. Boeing currently has received orders for its 787 jets from 56 companies…the General Secretary of BALPA has called for a fundamental review of airport security in the wake of the killing of Osama bin Laden.