Intelligence: News

XM and Sirius File for Merger

The FCC received the formal request late in March and the review process should last months. The two satellite radio company giants believe that the merger would benefit the public and would not reduce audio entertainment competition. The FCC licensed the companies in 1997 and ordered them to remain separate, but XM and Sirius want the order overturned, stating that competition from multiple music-playing devices will prevent a monopoly. Some groups, including the National Association of Broadcasters (NAB), called the proposed merger a monopoly that will violate antitrust laws. NAB President David Rehr wrote a letter to FCC Chairman Kevin Martin saying, among other things, that the merger would lead to predatory pricing and that "NAB intends to submit a Petition to Deny the proposed merger at the appropriate time." XM and Sirius have a combined 14 million subscribers and hope for the deal to close by the end of the year. WSI’s plans to be the sole proprietor for Sirius’ satellite weather in the cockpit seem to have been put on hold. WSI was not available for comment. See AM story March 2007, page 28.

AMR Invests in Maintenance

AMR Corp., the parent company of American Airlines and American Eagle, plans to invest up to $100 million in its maintenance services as part of its ongoing effort to cultivate its third-party aircraft maintenance business. During the past three years, the airline has been working with the Transport Workers Union to transform the airline’s maintenance organization from a cost center to a profit center. With this new investment, AMR will dedicate a portion of the funds to update and possibly augment its maintenance facilities, invest in new technology and make process improvements. American’s maintenance services group offers airframe, engine and component and line maintenance services. The airline recorded nearly $95 million in third-party revenue in 2006 and wants to reach its goal of $175 million by the end of this year.

DOT Wants More Oversight

The Department of Transportation told lawmakers that FAA oversight of contractors that perform maintenance on commercial jetliners is not enough. The current FAA program asks airlines to voluntarily report when they outsource maintenance work, but not all airlines comply. Therefore, the FAA cannot ensure safety rules because there is no way for to know where all the work is performed. The FAA defends its oversight arguing that the current airline safety record proves it is working. The last U.S. plane crash blamed on maintenance happened in 2003 when an unlicensed maintenance contractor improperly adjusted a flight control, causing the plane to crash on takeoff in Charlotte, N.C. and killing all 21 people aboard. The House of Representatives responded to DOT by looking into the possibility of requiring airlines to have safety-related work done only by the airlines or by repair firms that are FAA licensed. Airlines are currently outsourcing 67 percent of their heavy airframe maintenance and that work may be conducted in Mexico, Central America and Asia, all outside FAA jurisdiction.

An Exciting Industry Event Unlike Any Other

The first annual NATA FBO Leadership Conference was held during the 10th annual Aviation Industry Expo on March 20-22 in the Orange County Convention Center (OCCC) in Orlando, Fla. OCCC is the second largest convention center in the country, but the more than 500 exhibitors still reached 93 percent capacity in the 50,000-square-foot hall, covering the floor with runway tugs, engines, RVs and other massive pieces of equipment. The expo showcased everything from de-icing apparatus to maintenance management software systems, from Aviall to WichiTech Industries.

This is the 10th year for the GSE’s expo conference, the National Air Transportation Association’s (NATA) convention and the Professional Aviation Maintenance Association’s (PAMA) symposium to join the Joint Panel on Aviation Support Equipment’s (JPAVSE) annual meeting; more than 6,000 aviation professionals were in attendance.

This year, PAMA’s 36th, the association presented nearly 100 hours of technical training, maintenance seminars and workshops. The workshops were FAA approved for training credits towards IA renewal and AMT awards credits that were equal to the length of the course. PAMA also featured industry and government experts, including Dr. Paul Foster, a flight standards representative and aviation maintenance technician with the FAA. Dr. Foster instructed attendees on Runway Safety for Mechanics, stressing the need for A&Ps to receive a proper runway safety education and emphasized that communication is imperative to any safety program.

NATA premiered its new conference for FBOs and presented attendees with the latest intelligence, tactics and strategies to maximize FBO success. GSE held panel discussions and during its Cutting Edge Environmental Issues Shaping the Aviation Industry, presented by Kevin Ewing, partner, Bracewell & Giuliani LLP, participants were audibly surprised to learn that the environment is second only to the war in Iraq as far as Congress is concerned. Ewing also confirmed that the two major changes for the industry will be climate and fuel and by 2030, aviation will contribute 20 percent of the pollutants that will instigate climate change.

The exhibit hall was teaming with activity including 30-45 minute "Business Briefs," which were hosted lectures and discussions regarding emerging trends and business solutions. The hall also hosted the 30-45 minute technical discussions and demonstrations of equipment and processes called "Tech Talks."

The 2007 PAMA Aviation Maintenance Olympics (see photos this page) provided an upset, when Southwest Airline team members Kyle Acuna, Scott NcNabb and Nick Ostalecki, with the help of coach Tom Zollars and assistant coach Dennis Pelletier, received first place by defeating long-time champs Midcoast Aviation. Second place Midcoast’s team included Bill Fields, Brian Bauwers and Tim Kerron, with coach Vinnie Venditto. Student team Embry-Riddle Aeronautical University, including Chris Blair, Derek Collins and Luke Urshan, with coach Garrett Parlette, won third place, and Aviation Institute of Maintenance with Seth Richards, Josh Hobbs, Ben Ferris and coach Michael Harris took fourth. The Olympics provide a forum for mechanics and avionic techs to demonstrate their skills.

Visit Aviation Maintenance’s Web site, www.aviationmx.com, to view the PAMA Olympics’ videos. — By Rion Haley