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January 2013 |
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Our New Year promise…
As RAA kicks off the New Year, we wish all our airline members and industry friends a safe and successful 2013.
RAA remains focused on helping foster a public policy environment that helps regional airlines operate safely, efficiently and profitably. Towards that goal, we look forward to working with newly-confirmed FAA Administrator Michael Huerta and his team, the re-elected Administration and the new 113th Congress -- and welcome each of you to join us for our “RAA Fly-In” to Washington DC this spring. We’ll advise details, but it will be a unique opportunity for you to get “up close and personal” with key legislative and regulatory decision makers so they can hear first-hand about how we can meet the industry’s challenges by working together.
Our industry messaging, too, has been resonating as USA Today, The Wall Street Journal, Fox News, NPR and dozens of other national media outlets have hammered home our warnings about how the looming 1500 hour requirement will aggravate or hasten pilot supply issues that could threaten the scheduled service that more than 500 US communities rely on exclusively.
We’ve parlayed this message with our calls for government and industry to invest in the human capital of NextGen, and we’re not just talking a good game: this week we’re meeting with aviation students from around the country, keeping them excited about the future, bolstering our growing partnership with University Aviation Association and upping RAA’s investment in our successful Associate Membership Scholarship program.
We’re most excited about our first international RAA Convention May 6-9 in Montreal – be on the lookout for registration opening this month. Partnering with associations and airlines from not only Canada, but around the world, RAA Montreal will be an all open, all access convention, high level policy discussions with key decision-makers, an expanded Purchasing Forum, and an active Exhibit Hall that’s already almost sold out!
Again, look forward to serving you and sharing a happy, healthy and prosperous 2013 with you and all of our long and loyal supporters of RAA.
Roger Cohen, President
RAA
Coming Up...
New RAA Associate Members for 2013!
Erie Aviation
Headlines
Members in the News
Associate Member Invoices for 2013 are now available online!
Special thanks to Embraer for hosting the RAA Winter Board Meeting!
RAA Convention News
How RAA 2013 can work for you!
Industry News
Flying Is Safest Since Dawn of Jet Age
Pilot Shortage Looms for Airlines
Airlines Fear Pilot Shortage Amid New Federal Safety Rules
Mitsubishi Aircraft in 100 Jet Deal With SkyWest
Delta's Regional Strategy Now Moves to Disposing of 50-Seaters
Critical Period Emerging for New Turboprop Developments
An Endangered Species?
AMR Pilot Board's Vote Could Ease Path to Merger
Empire Airlines to Operate ATR 42-500s for Hawaiian
Cape Air Offers NH Deal to Help Airport Reach Goal
Flight Forecast: What Travelers Should Expect in 2013
SkyWest Jets Flying From Ford
AMR Regional Airline Unit's New Labor Contracts Win Approval
United Announces New International and Domestic Routes From Hub Cities
Members in the News
Associate Member Invoices for 2013 are now available online!
Your company representative can login and view your company invoice and print out a statement to "pay by check" or simply pay online with a credit card.
Don't forget to update your company listing when paying dues:
There are two ways to update your listing:
1) All members have a company representative and/or a billing representative who has a login and password to access the listing. Login here and go to the RAA Home page and choose "update listing" (right above the Stop Air Tax logo) and follow each step. Don't know your login and password? You can have it automatically sent to you by clicking here.
2) Send changes to morgan@raa.org using this form
Special thanks to Embraer for hosting the RAA Winter Board Meeting!
 In December, the RAA Board of Directors and Associate Member Council met at the Embraer Ft. Lauderdale facility.
Gary Spulak, President, Embraer Aircraft Holdings speaks to the RAA Board of Directors.
RAA Convention News
How RAA 2013 can work for you!
We want to hear from you! Do you have a great case study for our industry? Do you have a product that has changed how our industry does business? Suggest a speaker or presentation topic today!
Information on the 38th RAA Annual Convention is now available in the 2013 Exhibitor Prospectus. All the information you need to guide your way through maximizing your ROI during the convention.
Contact information, floor plans and a helpful checklist can be found here!
Industry News
Flying Is Safest Since Dawn of Jet Age
Wall Street Journal (12/29/12) Pasztor, Andy
Air travel is now the safest it has been since the dawn of jet planes, with the global airline industry last year marking its lowest rate of fatal accidents since the early 1960s. There were 23 fatal crashes in 2012, a number that includes all passenger and cargo flights, down from 28 crashes in 2011, according to data assembled by the Aviation Safety Network. The total is down from a 10-year average of 34 fatal accidents per year.
Pilot Shortage Looms for Airlines
USA Today (01/07/13) Jones, Charisse
Some U.S. airlines may see a pilot crunch as soon as this year, as thousands of pilots start to retire and new rules requiring extra training and more rest start to kick in, some aviation analysts say. As the economy slowly improves, potentially increasing the desire by Americans to travel, a wave of pilots is reaching the federally mandated retirement age of 65. They'll be retiring just as it gets harder for a new crop of pilots to walk in because of new rules set to begin in August that require co-pilots to have as many flight hours as captains before they can work in a cockpit. "It has moved the goal post," says Roger Cohen, president of the Regional Airline Association, of the change. "You've just tripled the number of hours they'll need to be able to even interview for a job with an airline, regardless of the size."
New rules that require more rest will boost the need for more pilots, some analysts say. For instance, the minimum rest period before a pilot's flight duty would increase from eight hours to 10, including the ability to get eight hours of sleep in a row. Cohen says many of the factors that can lead to a shortage are in place, though it's unclear when it will occur. And he warns it would be a problem for the entire industry, not just regional carriers. But if airlines have difficulty filling cockpits, he says, it's likely smaller cities that will see the sharpest dips in service. If there aren't enough pilots available, he says, "You have to pick and choose what routes you're going to fly."
Airlines Fear Pilot Shortage Amid New Federal Safety Rules
NPR Online (12/26/12) Kaufman, Wendy
Regional airlines worry they won't have enough pilots due in large part to new federal safety rules. Beginning next summer, those who want to pilot commercial jets will need dramatically more hours of flight training before they can be hired. "The issue here is this arbitrary 1,500 hours," says Roger Cohen, head of the Regional Airline Association. He notes the new regulation is roughly triple the number of hours many regional airlines require today, and he says it will mean lots of otherwise qualified pilots won't be able to get jobs. "These people have already invested incredible amounts of time and an incredible amount of money investing in their aviation education. They have just been told you have to go back out and fly around in circles at your own expense just to get hourly experience," Cohen says. He adds that most people now in training programs can't get enough hours in before the deadline, so the pipeline for new pilots will be smaller. Any impact would be felt largely at the regional airlines, because that's where pilots often begin their commercial career.
Mitsubishi Aircraft in 100 Jet Deal With SkyWest
AFP (12/13/2012)
Mitsubishi Aircraft has signed a deal with SkyWest for 100 jets worth $4.2 billion, with an option to buy another 100 aircraft. The Japanese company said it expected to deliver the first batch of aircraft from 2017 while the optional order could be delivered from 2021. The optional order could double the deal's value to over $8.0 billion based on the aircraft's list price, Mitsubishi said, adding the pair's agreement would "mutually position themselves for opportunities in the U.S. regional airline industry". The manufacturer's 70-90 seat regional jets are touted as having a next-generation design that is fuel-efficient and cuts down on noise. Worldwide demand for regional jets with 60 to 99 seats is expected to surge to more than 4,100 aircraft by 2031 from 1,810 units in 2011, according to research institute Japan Aircraft Development Corporation.
Delta's Regional Strategy Now Moves to Disposing of 50-Seaters
Aviation Week (12/20/12) Compart, Andrew
The ratification of a new deal between Pinnacle Airlines and its pilots would give Delta Air Lines a solution to slashing the number of 50-seat jets operated by its regional airline partners to no more than 125 by the end of 2015, but there has so far been no public disclosure of how Delta will dispose of the 181 Bombardier CRJ200 aircraft slated for retirement from the mainline carrier's operational fleet. Currently in storage by Delta are 10 CRJ200s and 34 CRJ100s from its defunct subsidiary Comair. Pinnacle says a separate pact between itself, its pilots, and Delta will provide for the addition of 40 76-seat CRJ900s to its fleet, which Delta agreed to acquire, although Delta still has not yet opted to put them on its own balance sheet or that of its regional partner. The carrier also agreed to eliminate the 140 CRJ200s it operates for Delta over the next few years, which could cut Pinnacle's workforce by over 66 percent. Delta verifies its responsibility for the 140 Pinnacle-operated CRJ200s, but will not say how they will be disposed. A separate agreement between Delta and SkyWest in August involves the regional partner operating another five CRJ700s and 29 CRJ900s for Delta in return for early termination of 66 CRJ200s it operates under its existing Delta Connection agreements.
Critical Period Emerging for New Turboprop Developments
AIN Online (01/02/2013) Goold, Ian
The expectation of future demand for new or derivative regional airliners designed to carry approximately 90 passengers is prompting continued technological developments by turboprop-engine manufacturers, including Pratt & Whitney Canada's (P&WC) work on a "centerline" next-generation regional turboprop (NGRT) demonstration program and General Electric's (GE) striving for an airframe launch “platform” for the proposed CPX38. Both program studies visualize utilization of eight blades to address higher noise levels stemming from increased tip speeds of ever larger propellers. With aspirations of achieving a 20 percent improvement in fuel consumption per passenger and a 30 percent reduction in engine maintenance costs, P&WC has test-run compressor hardware “to the full range of aerodynamic design points,” while the next testing phase will get underway at a partner facility in Germany within the next four months. “The primary goal will be to ensure our engine meets all our targets so [that] we’re ready when an aircraft manufacturer launches,” P&WC says. In the meantime, GE has scheduled a series of CPX engine or engine component hardware tests, among them bird/hail ingestion, inlet icing, oil interruption, initial sand-ingestion tests, and durability and endurance runs. At the European Regions Airline Association in September, GE's Allen Paxson said he expects operators to retire about 900 engines between 2012 and 2031, as the 30-plus-seat fleet grows from 1,400 to 3,100 due to higher fuel costs, demand from emerging economies, and requirements for replacements.
An Endangered Species?
Centerlines (Fall 2012) P. 26 Wilson, Benet J.
Fifty-seat jets used by regional airlines are declining because of the economy, and while contracts will keep some regional jets in operation until 2022, there will be substantial attrition, according to William Swelbar with the Massachusetts Institute of Technology's International Center for Air Transportation. He notes that the latest Delta Air Lines pilot contract trimmed 200 50-seat regional jets for more 70-seat jets. Aviation consultant Doug Abbey says regionals have persistently lacked a business model that could be sustained through different business cycles, while Swelbar says some communities will inevitably lose service. Meanwhile, a new report from Aviation Specialists Group sees the cost of jet fuel renewing interest in more fuel-efficient regional turboprops.
AMR Pilot Board's Vote Could Ease Path to Merger
Wall Street Journal (12/30/12) Carey, Susan
The possible merger of AMR and US Airways Group could be potentially smoothed through the recent approval of an interim labor framework by the board of American Airlines' pilots union, in the event the two carriers move forward with a combination to extricate AMR from bankruptcy. The union reports that the Allied Pilots Association (APA) overwhelmingly voted for a proposed accord on Dec. 29, and the proposal mandates the assent of the other parties to the negotiations, including both carriers and US Airways' pilot union. A merger has been long supported by the APA, and the Saturday vote adds weight to an earlier agreement in terms of a timetable for a follow-on labor agreement and seniority integration. AMR's creditors wish to consider alternative restructurings to determine which one will yield the maximum value and build the strongest company.
Empire Airlines to Operate ATR 42-500s for Hawaiian
ch-aviation (12/29/12)
Empire Airlines has been chosen by Hawaiian Airlines to operate Hawaiian's ATR 42-500s, which will be run on regional services starting next year. A memorandum of understanding has been signed by the two carriers under which Empire would operate the two ATR 42-500s recently acquired by Hawaiian that are currently being readied at Empire’s maintenance facility at Coeur d'Alene Airport.
Cape Air Offers NH Deal to Help Airport Reach Goal
Associated Press (12/27/12)
Cape Air offered $12 tickets to travelers flying from Lebanon, N.H., to either Boston or White Plains, N.Y., through Dec. 31 in order to help the Lebanon airport become eligible for more federal funding. Included in the tickets were all fees, while the New York tickets include ground transportation from White Plains to Manhattan. Cape Air added more flights as part of the promotion, many of which sold out early.
Flight Forecast: What Travelers Should Expect in 2013
Wall Street Journal (12/26/12) McCartney, Scott
Among trends in the airlines industry to look out for in 2013 is that smaller cities could see a continued decline in service as airlines move away from 50-seat regional jets in favor of 70- and 90-seat aircraft. Those aircraft may prove too large to sustain some flights to small cities. Big airlines also are likely to see large numbers of pilots retire in 2013 as pilots who would have faced mandatory federal retirement at age 60 five years ago now are bumping up against age 65 mandatory retirement. That may move pilots up from regional airlines to bigger carriers, leaving a shortage of pilots at feeder carriers.
SkyWest Jets Flying From Ford
Iron Mountain Daily News (Minnesota) (12/26/12) Anderson, Jim
SkyWest Airlines is offering two daily round-trip Delta flights between Iron Mountain-Kingsford and Minneapolis-St. Paul from Dickinson County's Ford Airport, using 50-seat, Bombardier-manufactured Canadair Regional Jet 200s. SkyWest was chosen as the Essential Air Service (EAS) carrier at Ford Airport under a U.S. Department of Transportation directive issued in September. Earlier in December, SkyWest replaced Delta Connection, which had provided flights to and from Detroit. A package EAS bid dictates that 50 percent of the Ford Airport flights are nonstop while the rest have stops in Rhinelander, Wis.
AMR Regional Airline Unit's New Labor Contracts Win Approval
Bloomberg (12/21/12) Smythe, Christie
AMR's American Eagle regional airline will enter into new labor contracts per its parent company winning approval from U.S. Bankruptcy Judge Sean H. Lane. The judge filed orders on Dec. 21 authorizing American Eagle to engage in agreements with unions representing pilots, flight attendants, maintenance workers, dispatchers, and others. The approval “paves the way for us to begin implementing the labor cost savings that are required for our successful restructuring,” says American Eagle CEO Dan Garton. He reported in October that AMR was mulling the spin-off of the regional carrier after emerging from bankruptcy protection. An AMR filing with the U.S. Securities and Exchange Commission says American Eagle was operating 258 aircraft as of Sept. 30.
United Announces New International and Domestic Routes From Hub Cities
PR Newswire (12/19/12)
United Airlines announced plans to launch nonstop service on several new international and domestic routes starting in the spring of 2013, including new flights to Latin America from Chicago and Washington, D.C., and new service to Canada from New York, Denver, and Washington, D.C. United also will launch new domestic routes from four of its hubs, including daily flights between Chicago and Fairbanks, Alaska, starting June 6, 2013, with Boeing 737-800 aircraft. Starting May 1 will be twice-daily United Express service between Denver and Santa Fe, N.M., operated by ExpressJet using 50-seat Embraer regional jet aircraft. Also commencing May 1 will be new United Express service between the Los Angeles hub and Wichita, Kan., with SkyWest Airlines operating the daily flights using 66-seat Canadair CRJ-700 regional jets. Finally, daily United Express service between Washington-Dulles and Grand Rapids, Mich., also will be launched on May 1, with ExpressJet operating the flights with Embraer 50-seaters.
Abstract News © Copyright 2013 INFORMATION, INC.
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About RAA
With safety as its highest priority, RAA represents North American regional airlines, and the manufacturers of products and services supporting the regional airline industry, before the Congress, DOT, FAA and other federal agencies.
With more than 13,000 regional airline flights every day, regional airlines operate more than half of the nation’s scheduled flights with nearly 75% of US airports relying on regional airlines exclusively.
Founded in 1975, Washington, DC-based RAA also provides a wide array of technical, government relations and public relations services for regional airlines. The association's 28 member airlines and nearly 200 associate members represent the key decision makers of this vital sector of the commercial aviation industry.
For more information on Regional Horizons e-NEWS contact:
Regional Airline Association | 2025 M Street, NW | Suite 800 | Washington, DC 20036-3309
Tel: 202/367-1170 | raa@raa.org
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