EGYPTAIR News 9 feb 2015

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http://www.dispatch.com

Milestone Aviation Group now under GE umbrella

GE Capital Aviation Services has completed its

$1.8 billion acquisition of Milestone Aviation

Group.

Milestone has offices in the Arena District and in

Dublin, Ireland, and in New Jersey near the home

of founder Richard Santulli, the former owner of

NetJets.

Milestone buys helicopters and leases them to

commercial operators around the world, especially

those involved in offshore oil and gas exploration.

The fleet includes 178 helicopters valued at $3

billion that fly in 26 countries. It has orders and

options to buy as many as 121 additional

helicopters for $2.7 billion.

The company will continue to operate as

Milestone. Santulli will serve as chairman of the

company and will be an officer of GE Capital

Aviation, the aircraft-leasing unit of GE.

Milestones Dan Rosenthal will remain as president and work from the companys offices in the Arena District.

http://www.dailyherald.com

Solution to missing jets as elusive as Malaysia Air

Flight 370

The solution seemed simple after a Malaysia Air jet

vanished last year over the Indian Ocean: expand the use

of technology that keeps tabs on airliners to find them if

they crash.

Almost a year after the jet disappeared, however,

regulators, safety advocates and the airline industry still

can't agree on what to do.

The U.S. National Transportation Safety Board has

recommended tamper-proof devices to transmit the

location of crashes, as well as beefed up flight data for

investigators. An industry task force and the United

Nations' aviation arm plan to meet this week to consider

proposed tracking options that, at least initially, don't

include that.

In many ways, the lack of agreement illustrates the

complexity of a global aviation system that moves 9 million

people every day over and between nations using 100,000

planes with varying technological capabilities.

"We've got an airplane missing. There's a lot of

controversy. There's this push to do something," said

Thomas Haueter, the former chief of aviation investigations

at the U.S. National Transportation Safety Board. "But I

think that we do need to step back."


(continue)Not all carriers are equipped to send position reports via

satellite and new technology may soon overtake the need

for such reports. Some airlines also are questioning

whether the first disappearance of a passenger flight in

more than 50 years justifies the cost of a technology

overhaul.

Costly Initiative

"If we spend a significant amount of money for each of the

operators for tracking, is it at the expense of more needed

safety initiatives?" asked John Cox, chief executive officer

of aviation consulting company Safety Operating

Systems. It's hard to see the safety benefits of requiring

more position reports, he said.

Inmarsat Plc, the satellite company that has been part of

the team trying piece together the whereabouts of the

Malaysia Air flight, said it's a mistake to view tracking as

simply a response to that one plane's disappearance.

Increased position reporting may allow air-traffic agencies

to bring planes closer together on ocean routes, where

they are now kept as far as 50 miles (80 kilometers) apart,

said Mary McMillan, vice president for aviation safety and

operational services at London-based Inmarsat. Closer

spacing allows airlines to fly more efficient routes and

save fuel, she said.

Montreal Meeting


(continue)Aircraft-tracking proposals developed by a task force of

industry groups will be considered at the UN International

Civil Aviation Organization's safety conference starting

Monday in Montreal.

They include a goal for all planes to transmit their location

at least once every 15 minutes during flights over oceans

or remote regions, and once per minute during

emergencies, according to an ICAO outline of the

measures.

While the costs of increased tracking will vary widely

depending on the airline, some carriers already have the

technology and Inmarsat won't charge for reports every

15 minutes, McMillan said in an interview.

The NTSB, which issued its own recommendations to the

FAA on Jan. 22 for locating aircraft after accidents, wants

to go even further by mandating tamper-resistant tracking

technology and flight data transmissions during

emergencies.

Easily Adopted

The ICAO Aircraft Tracking Task Force wanted to start

with technology that is already aboard many long-range

airliners and can be easily adopted, the group said in its

report.

"You do what you can when you can," said Perry Flint, a spokesman for the International Air Transport Association,

the trade group that helped lead the task force. "The fact is

that no airline ever wants to have an airplane disappear again

with no idea of what happened to it."


(continue)The March 8 disappearance of Malaysian Airline System

Bhd's Flight 370 has proven to be one of the most

confounding aviation incidents in history. All

investigators know for sure is that the plane turned off

its charted northerly course from Kuala Lumpur to

Beijing and instead flew west toward the Indian Ocean

with 239 people on board. Eleven months later, no

physical trace of the aircraft has been found.

Rare Events

Thousands of flights a day fly outside the range of land-

based radar, using different methods to report positions

and ensure they don't collide with other planes.

Many aircraft -- no one has polled airlines to determine

the percentage -- already use a satellite datalink to

notify controllers of their positions. Older planes

without satellite connections or airlines that don't want

to pay subscription fees use long-range radios to

manually report.

No one doubts the wisdom of seeking better ways to

track airliners plying routes across the North Pole or the

world's oceans. The question, according to Haueter, Cox

and others, is how best to accomplish that and to

address the unique events of the missing Malaysia Air

plane.


(continue)With the exception of the Malaysian flight, no passenger

airliners have completely disappeared since a propeller-

driven charter flight went missing in 1962 in the Pacific

Ocean. And there are few examples in which additional

tracking would have helped locate wreckage -- let alone

prevented the crashes.

An Air France flight that went down in the Atlantic Ocean in

2009 took two years to find.

Better Priorities

Cox, of Safety Operating Systems, said he would prefer to

see the focus on disappearing planes shifted to other more

pressing safety issues. There were 72 fatal accidents killing

3,986 people on large jet-powered airliners from 2004

through 2013, according to Boeing Co. statistics. More than

80 percent of the deaths involved pilots losing control,

striking the ground during routine flight or botched

takeoffs and landings.

While ICAO's position paper said improving tracking would

trigger a "large financial cost" on industry and

governments, it didn't estimate what that would be. In

addition to the costs of new equipment on planes, there

may also be subscription fees.

At the same time, IATA has cautioned some of its airline

members wouldn't even be able to equip their planes with

tracking devices within the one-year goal of the task force,

according to Flint.

Tamper Proofing

.


(continue)Another factor that is complicating tracking proposals

are the unique circumstances surrounding the Malaysia

Air mystery.

The plane's course changes appear deliberate and

equipment that would have shown its path may have

been shut off, according to Malaysian Prime Minister

Najib Razak.

The only clue to its whereabouts came from an Inmarsat

satellite's unsuccessful attempts to reach the plane.

Australian authorities are helping Malaysia look for the

Boeing 777-200ER along an arc in the Indian Ocean.

"If you do not make the system tamper-proof, you are

not addressing what in the opinion of many experts is

the likely scenario," Steven Wallace, a former head of

accident investigations at the U.S. Federal Aviation

Administration, said in an interview.

While the ICAO proposal includes a provision calling for

designing a separate "autonomous" system to send a

plane's location in an emergency by 2018, it's opposed

by airlines and the Air Line Pilots Association union,

which says flight crews should be able to cut power to

equipment in an emergency.

Any action that doesn't make tracking resistant to

tampering "is not the solution," Peter Goelz, a former

managing director of the NTSB who is now a

Washington-based industry consultant, said in an

interview.


(continue)The industry task force for the UN committee that drew

up the tracking proposal said more study was needed

before such tamper-proof design changes should be

required.

Iridium Satellites

Another reason to pause before imposing mandates on

airlines is new technology that may soon make it easier

to follow planes anywhere in the world.

Iridium Communications Inc. and NAV Canada, that

country's air-traffic control company, are building a

satellite network that will track planes in real time just

as radar on the ground does. The unit of McLean,

Virginia-based Iridium that is building it, Aireon LLC,

estimates the project will be completed in 2017.

Some airlines don't want to install expensive satellite

transmission systems if their planes will be tracked by a

separate system within a few years, IATA's Flint said.

It is just such factors that suggest waiting, rather than

rushing toward a solution, make more sense, Haueter

said.

"You need to take a look and say, OK, what can we do

and what should we do? What are we truly trying to

solve here and what's the need?" he said.

http://www.nzherald.co.nz

Taiwan crash pilot's family return as operational

error raisedThe family of a New Zealand citizen co-piloting the

TransAsia Airways plane that crashed into a bridge and

river in Taiwan are due to arrive back in the country this

week, as new information about the crash continues to be

revealed.

Ex-Aucklander Chris Dsi-Chung Lau, 45, was counted

among the fatalities of last week's air disaster. Last night 40

of the 58 people on board had died while three remained

missing and 15 survived.

Flight GE235 came to a devastating end shortly after take-

off from Taipei's Sonshan Airport on Wednesday when it

turned on its side and hit a bridge, before crashing.

A family spokesman said yesterday that family members

had travelled to Taipei and were to return this week.

"It's a very sad time," he said.

Early reports hailed the pilots as heroes for potentially

preventing further fatalities, but as investigations continue

there are reports that operational error may have

contributed to the tragedy.

Taiwan's Aviation Safety Council director Thomas Wang

said initial data from the plane's flight recorder showed an

alarm from its right engine triggered 37 seconds after take-

off. However, he said the data showed it had not shut down,

or "flamed out" as the pilot told the control tower, but

rather moved into idle mode.

http://skift.com

Lufthansa Warns Employees That More Cuts are

Coming eutsche Lufthansa AG, Europes second- biggest airline, said personnel expenses cannot remain above those of

its competitors after a round of cost cuts failed to offset

the impact of declining ticket prices.

Yields slid more than 3 percent in 2014, while unit costs

fell only slightly, management board members Karl Ulrich Garnadt and Bettina Volkens wrote in a letter to

staff. Thats left Lufthansas cost base still 30 to 40 percent higher than at rivals such as EasyJet Plc or

Turkish Airlines, they said.

In the long term our staff costs cannot be substantially higher than those of our competitors, the letter, obtained by Bloomberg News, said. There is no easy answer to this. Ultimately, we too have to be measured

against the yardstick our competitors set every day.Germanys Vereinigung Cockpit pilot union staged 10 strikes last year that cost Lufthansa about 200 million

euros ($227 million). Profit gains have also encouraged

cabin crew and ground-staff who have contributed to lowering expenses in recent years to demand more in upcoming negotiations.

Lufthansa has no plans to fire cockpit crew, it said in the

letter, and has reached an agreement with pilots over

pay. Terms wont be communicated before deals are also reached in other areas including retirement

benefits, it said today.

http://uk.reuters.com

Lufthansa tells airline staff more savings neededMore savings need to be made at Lufthansa's

(LHAG.DE) main airline business to prevent tough

competition on fares and rising external costs from

driving it into "a dangerous red zone," according to

management at Germany's biggest airline.

Average yields -- a measure of ticket pricing -- fell by

more than 3 percent in 2014 and cost cuts within the

group were nowhere near enough to compensate,

Lufthansa board members Karl Ulrich Garnadt and

Bettina Volkens said in a Feb. 5 letter to staff seen by

Reuters on Friday.

In addition, staffing costs look set to increase, and the

group is facing other rising costs beyond its control

such as airport fees and air traffic control charges.

"The bottom line is that these twin trends will take us

into the dangerous red zone if we do not take action to

correct them," they wrote in the letter.

Lufthansa has undergone repeated cost-cutting

programmes over recent years but costs at the airline

remain high in comparison with low-cost rivals such as

Ryanair (RYA.I) or easyJet (EZJ.L) and Middle East-

based carriers including Emirates [EMIRA.UL].

"The competition knows our cost position and knows

that this is an area where we are vulnerable ... Our cost

level is now 30 to 40 per cent higher than that of our

direct competitors such as easyJet or Turkish Airlines

(THYAO.IS)," the executives wrote in the letter.


(continue)

Under CEO Carsten Spohr, Lufthansa is planning to

expand regional airline Eurowings into a budget carrier

and has been negotiating with staff to reduce costs on

some Lufthansa-operated routes that are popular mainly

with price-sensitive tourists and not business travellers.

Plans to expand Eurowings have drawn criticism from

pilots, who went on strike ten times in 2014 in a row

over early retirement benefits and do not want to see

pay and conditions being eroded.

"In the long term our staff costs cannot, of course, be

substantially higher than those of our competitors.

There is no easy answer to this," the managers said.

The executives added there were no plans to lay off

pilots and that rumours some 50 aircraft were to be

withdrawn from Lufthansa German airlines -- which

include the Lufthansa, Germanwings and Eurowings

brands -- were false.


UPDATE 1-German airports strike on Monday

leads to cancelled flights

German trade union Verdi has called on security

personnel to go on strike at three German regional

airports -- Hamburg, Stuttgart and Hannover -- on

Monday, leading airline Lufthansa to cancel 18

planned flights.

The strike is intended to increase pressure over

stalled wage negotiations in three German federal

states, Verdi said in a statement on Sunday.

Lufthansa cancelled 18 domestic flights for

Monday in anticipation. Hamburg Airport said

many of its passengers, which average 40,000 per

day, would be affected, with significant delays at

security checkpoints.

The strike affects workers in security operations,

including those inspecting freight.

Many of those workers earn the federal minimum

wage of 8.50 euros per hour or nine euros per

hour, the union said. It wants wage increases of

between 70 cents and 2.50 euros per hour.

EGYPTAIR News 9 feb 2015

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