ATR in First Deal in Azerbaijan

ATR and flag carrier National Air Company Azerbaijan Airlines (AZAL), reached agreement for the acquisition of six new ATR aircraft (2 ATR 42-500s and 4 ATR 72-500s). The total value was set at about $100 million for the Baku-based carrier. The six new ATR aircraft will be delivered between 2007 and 2008. The deal, the first to be signed between AZAL and ATR, will allow the airline to renew its current fleet of Antonov and Tupolev aircraft and to open new regional routes. Since the beginning of 2006, ATR has booked orders for 63 new aircraft, some of them not yet announced. Since the beginning of the program, ATR has sold 837 aircraft (401 ATR 42s and 436 ATR 72s).

CVG Could Survive Consolidation

Cincinnati is heaving a sigh of relief now that USAirways (LCC) has withdrawn its very unwelcome bid on Delta (DALRQ), but at least one scholar knew it would be okay all along. In an in-depth study, University of Cincinnati Business Professor Jeffrey Camm said Cincinnati could survive any airline consolidation. The director of the Center for Productivity Improvement, Camm said the airport will likely remain a hub if Delta were to merge with either USAirways or Northwest (NWACQ), neither looking very likely as Delta struggles to emerge from bankruptcy as an independent carrier.

The Cincinnati Enquirer reported on his study evaluating demand to various destinations served by hubs of all three airlines and modeled plans for eliminating all but four and all but three hubs in any consolidation. The airport, it said, would survive even if only four hubs resulted from the consolidation but would lose hub status if only three hubs remained, a worst-case scenario. Camm acknowledged to the paper that he did not take external factors such as political pressure and economic incentives into account. CVG contributes an estimated $4.5 billion to the region's economy.

Restrictions to be lifted to Age 65

At long last, the FAA wants the 47-year-old retirement age raised for U.S. commercial pilots, following in the footsteps of the International Civil Aviation Organization that lifted the restriction, providing the co-pilot is under 60 in November. A notice of proposed rulemaking is expected later this year but the agency indicated the rule would become effective in two years. "A pilot's experience counts -- it's an added margin of safety," said FAA Administrator Marion Blakey. "Foreign airlines have demonstrated that experienced pilots in good health can fly beyond age 60 without compromising safety." The move comes after the agency, last September, formed a group of airline, labor and medical experts to recommend whether the US should adopt the new ICAO standard and determine what actions would be necessary if the FAA were to change its rule. The Age 60 Aviation Rulemaking Committee (ARC) did not reach a consensus recommendation but did provide detailed insight and analysis that will be helpful as the FAA develops a rule. The November 29, 2006 Age 60 ARC report, appendices, and public comments are available online at DOT.gov (Link), docket number 26139. The FAA intentions drew praise from aviation organizations including the Flight Safety Foundation which praised the agency saying it will help "with a desperate shortage of pilots in much of the world," said FSF President William Voss, who added, " This debate has gone on for 20 years. It is time to focus on more critical safety issues." ALPA opposes the change because it will disadvantage younger members seeking to move up.

FRNT Outlines Expansion for RJs at DIA

Frontier Airlines (FRNT) is working with Denver International Airport (DIA) to develop a regional jet facility on Concourse A. The new facility will be for its new regional jets and the 10 Bombardier (BBD) Q400 turboprops of Lynx Aviation, its newly created subsidiary. Currently the two parties are discussing size, costs and timeline which needs to happen in time for Lynx start up this summer. (Regional Aviation News, September 18, Article Link)

The current facility, used by more than Frontier's connecting service, is too crowded to accommodate its new operations. For that reason, United (UAUA) has a $41.5 million construction project underway for a similar facility on Concourse B which is scheduled for completion in April. That project frees up six gates at the current Concourse A facility but that will not be enough for Frontier. The airport also has a three-year, $160 million expansion underway to add at least eight gates for Southwest (LUV). The airline is desperately trying to counter aggressive moves by both United and Southwest, which weaken its origin and destination results. It hopes its two-airline regional network, which includes Republic Airways (RJET) will do the trick although analysts are looking for a complete strategy before recommending the airline's stock. (RAN, January 22, Article Link)

Pilots Ordered Retrained at Finnish Regional

The Finish Civil Aviation Authority suspended Finncomm Commuter Airlines pilots from flying in adverse weather conditions, ordering the company to retrain their pilots, according to reports published by the provincial daily Pohjalainen. The agency cited the carrier's overall procedures, the guidelines given to pilots, shortcomings in crew resource management and training problems. This was the first such action taken by the CAA on a carrier operating large aircraft. The carrier operates ATRs and Saab 340s along with two Embraer (ERJ) regional jets and the restrictions apply to turboprop pilots. The action came after three safety incidents in four weeks in December and January including one aircraft veering off the runway on landing. Another approached below the glide slope owing to an incorrectly set altimeter. Finally an aircraft banked 45 degrees and the angle of attack was too high when the pilots attempted to set a course in the middle of an ascent. Fincomm reported 10 dangerous incidents last year.

Midwest Shareholder Suit Dismissed

Judge Dave Hansher dismissed the suit filed by Linda Garrett against Midwest Air Group (MEH) to eliminate its poison pill provision which calls for MEH to issue more stock if one stockholder acquires at least 15 percent of the company. (RAN, January 22, Article Link)