American says New-Design Narrowbody Needs to Show “Significant” Step-up in Fuel Efficiency; Actively Searches for MD-80 Replacement

With 300 aging Boeing MD-80s on its books, American Airlines is actively searching for a replacement aircraft. But should the US major wait until Airbus and Boeing launch successors to their highly-successful narrowbody programs (not likely to occur until at least 2015 if not later) to place a significant new order, or should the airline place more incremental orders for current-model types? The latter appears a likely tide-over method. And what about Bombardier's proposed 110/130-seat CSeries? Is that a viable consideration for the Oneworld alliance member in light of its anticipated 2013 entry-into-service?

I asked these questions to American and here is what one of the carrier's prominent spokesmen had to say:

“Obviously [MD-80 replacement] is something we’re in very close contact with all the manufacturers [about]. Of course Boeing and Airbus are our suppliers for the mainline, and then we have relationships with some of the other guys through American Eagle and that sort of thing,” says the spokesman, adding: “I’m sure we’ll look at the timing too with whatever anyone puts out there.”

But a new-design aircraft’s time-to-market is not American’s only consideration. “This is not just a timing question. We want to make sure the decisions we make … are the right decisions," says the spokesman.

American must also “consider fleet commonality, training, maintenance”. It’s “not just when we can get it”, he notes.

Fuel efficiency, for example, “needs to be significant” step up. “I don’t think there is a magic number…but we’re also looking at the potential for … government and environmental emissions issues and less fuel means less emissions. So there is a lot to that and so yes, it has to be significant."

There is a balancing between how many current generation narrowbodies are purchased as MD-80 replacements and “at what point does the actual assuredly of a new generational narrowbody” [prompt] that transition, he says.

While a final decision awaits, American has been pulling forward orders for Boeing 737-800s, and adding incremental orders on top of that. If Boeing sticks with a 2015 launch of its narrowbody successor, it’s clear that American will “need to definitely bring in a sizable number of existing technology types…because with the 300 MD-80s, it took many years for those to arrive and will take several years to replace them all as well”.

(Photo courtesy of American's web site http://www.aa.com/aa/i18nForward.do?p=/aboutUs/ourPlanes/boeingMD80.jsp )

Eleven more months? Bombardier Sees CSeries Decision by Year-End, but Stresses Commitment

Amended with further info...

Bombardier director, airline industry analysis and strategy Chuck Evans during an Air Transport World webinair today said the airframer could wait until the end of the year before announcing a decision on whether to launch the proposed 110/130-seat CSeries.

“We expect to have guidance by the end of 2008 on whether to go forward with that," he says.

Evans notes, however, that Bombardier sees the CSeries “as the next logical step for our business”.

He adds: “We’re looking at the CSeries as the future platform to carry us [into the] future.”

Evans' comments come as US majors American Airlines and United Airlines continue to press Airbus and Boeing to speed up development of new-design narrowbodies. Could these major manufacturers' lack of near-term commitment open up a window for the CSeries?

Evans says: "Certainly we're seeing those statements [from American and United] and we're seeing more."

Questions remain whether the program will be launched, however. And Evans' comments might leave more questions than answers. While the CSeries is "still under a lot of study", Bombardier believes it is "quite clear that there is a demand for that size range and that technology", he says.

For some time, Northwest Airlines has been considered the likely candidate to launch the CSeries. The carrier recently confirmed it is pulling down 24 more McDonnell Douglas DC-9s this year, bringing to 68 the number of the type in its fleet. It says it remains in talks with manufacturers on a 100-seater replacement.

Interestingly, Bombardier recently updated its CSeries web page (see copyright...2008). Here's what the Canadian manufacturer is running on its site:

The Bombardier* CSeries* is the only family of aircraft designed specifically, without compromise, for the lower end of the 100- to 149-seat market. CSeries is the perfect balance of proven methods, materials and leading-edge technology to meet the airline needs for 2013 and beyond.

This competitive aircraft family will be built with unmatched operating economics, optimal environmental friendliness, total life-cycle support, unparalleled passenger appeal, superior operational flexibility and mature reliability levels at the entry into service.
*Registered Trademark(s) or Trademark(s) of Bombardier Inc. or its subsidiaries Disclamer: The Bombardier New Commercial Aircraft Program is currently in the conceptual design phase and, as such, is subject to changes in family strategy, capacity, performance, interior design and/or systems. The material does not constitute a guarantee or a warranty of any kind.

All rights reserved. © 2008 Bombardier Inc.

Fond Falcon Memories: A Look Back at AirCell's First Press Demo and Latest Achievement

(Amended to include comment from American)
Excitement is building in the world of onboard connectivity after American Airlines today announced it has completed installation of AirCell’s air-to-ground (ATG)-based broadband solution on the first of 15 transcontinental Boeing 767-200s set to trial the system.

The installation is a real achievement for Colorado-based AirCell, which first proved its technology to a group of journalists (including myself) on September 13, 2005. It was a day I’ll never forget. The flight demonstration was conducted on board a specially-equipped Falcon 2000 business jet at an altitude of about 11,000ft (3,400m) near Kansas City, Missouri. That's all of us standing in front of the jet BEFORE the flight. Things got rather bumpy on the ride and I felt certain I would toss my biscuits, as they say. AirCell execs were kind enough to give me a bag (clear and plastic) should I come face-to-face with my lunch. They also brought that plane down – THANK YOU AGAIN!

More to the point, however, AirCell in 2005 demonstrated how its system supports WiFi over a common air-to-ground pipe, providing access to voice, email, Internet and corporate virtual private networks, or VPNs (as well as mobile phones and Voice over Internet Protocol (VoIP) communications).

Today, American has equipped its first 767 with the solution, and is eyeing a fleet-wide equipage. The carrier previously said it expects the trial to get underway this quarter. It is now looking at offering the service on those 15 767s by the end of the second quarter, an American spokesman says.

The intention at American is to offer Internet to passengers with a couple of caveats. "AirCell is going to block VOIP and also very high bandwidth utilisation applications so that there is a DSL-like experience across the customer base," American manager of in-flight communications and technology Doug Backelin recently told me.

Despite that, this offering looks pretty damn cool (and you could hear me blabbing about it last Friday on New York Public Radio's "Sound Check" show here http://www.wnyc.org/shows/soundcheck/episodes/2008/01/18/segments/92108 )

Customers in all classes of service will be able to access the broadband signal using their own WiFi enabled devices for a fee. American says passengers will get the following:

1) Complimentary access to AA.com including services such as gates and times, fares and AAdvantage information;
2) Access to the Wall Street Journal Digest Edition,
3) Compatibility with VPNs that provide access to corporate intranets and email accounts;
4) And seamless coverage over the continental US above 10,000 feet.

"Access to broadband Internet access on our flights will be a fee-based service throughout the entire aircraft. AirCell will set the price, though specific pricing plans are still in development," says an American spokeswoman.

"Pricing will be similar to what consumers pay on the ground at a WiFi hot spot. At launch, the service will be offered only on longer routes (above 3 hours in duration) and will be priced at $12.95. In the future, the service on more typical length flights can be expected to be around the $10 mark."

Erecting Dysfunction: APA Says Allowing 65 Year Old Pilots to Fly is Dangerous, Calls For Veto

Well, it didn't take long for the Senate to pass companion legislation to the House bill that raises the US commercial pilot retirement age to 65.

Last night, the Senate received a copy of the "Fair Treatment for Experienced Pilots Act", read it twice, considered it, read it a third time, and "passed without amendment by unanimous consent".

Now the bill heads to the Prez for signature. But let's look at what the Allied Pilots Association (APA) thinks about all of this. American Airlines' pilot union says it is downright unsafe to let a bunch of 65 year old pilots fly the open skies. The union has sent Bush a letter urging him to veto the bill.

"The reality is no one knows what would happen with large numbers of 65-year-old pilots in the cockpits of modern commercial airliners operating in today’s demanding environment. The data doesn’t exist because it would be unprecedented. Prudence therefore dictates that we proceed with caution. For safety’s sake, it’s the right thing to do," says the APA.

Wow, those are some strong words. The APA makes it sound like these pilots should be put out to pasture. Never fear boys. There are plenty of ways to stay healthy at 65. And, apparently, a strong erection is still very much attainable.

Who Are You Calling Grandpa? House Moves To Raise Pilot Retirement Age

If 65 is the new 45, then the latest push to increase the mandatory commercial pilot retirement age to 65 shouldn't ruffle any feathers. But it has!

A hastily-created bill, called the “Fair Treatment for Experienced Pilots Act” was unanimously passed by the House of Representatives late yesterday evening.

Pilots are split on whether they want the legislation to move forward.

The Air Line Pilots Association (ALPA) was long opposed to proposed changes to the mandatory retirement age, but in May its executive board decided its resources would be better spent protecting pilots’ interests as new age rules are drafted.

However, American Airlines pilots' union, the Allied Pilots Association (APA), has been quick to bash the new bill.

This link will take you to the bill. But here are some key phrases from the legislation.

In General...a pilot may serve in multicrew covered operations until attaining 65 years of age.

(To meet ICAO standards) A pilot who has attained 60 years of age may serve as pilot-in-command in covered operations between the United States and another country only if there is another pilot in the flight deck crew who has not yet attained 60 years of age.

No person who has attained 60 years of age before the date of enactment of this section may serve as a pilot for an air carrier engaged in covered operations unless - such person is in the employment of that air carrier in such operations on such date of enactment as a required flight deck crew member; or such person is newly hired by an air carrier as a pilot on or after such date of enactment without credit for prior seniority or prior longevity for benefits or other terms related to length of service prior to the date of rehire under any labor agreement or employment policies of the air carrier.

Any amendment to a labor agreement or benefit plan of an air carrier that is required to conform with the requirements of this section or a regulation issued to carry out this section, and is applicable to pilots represented for collective bargaining, shall be made by agreement of the air carrier and the designated bargaining representative of the pilots of the air carrier.

No person who has attained 60 years of age may serve as a pilot of an air carrier engaged in covered operations unless the person has a first-class medical certificate. Such a certificate shall expire on the last day of the 6-month period following the date of examination shown on the certificate.

Each air carrier engaged in covered operations shall continue to use pilot training and qualification programs approved by the Federal Aviation Administration, with specific emphasis on initial and recurrent training and qualification of pilots who have attained 60 years of age, to ensure continued acceptable levels of pilot skill and judgment.

Not later than 6 months after the date of enactment of this section, and every 6 months thereafter, an air carrier engaged in covered operations shall evaluate the performance of each pilot of the air carrier who has attained 60 years of age through a line check of such pilot. Notwithstanding the preceding sentence, an air carrier shall not be required to conduct for a 6-month period a line check under this paragraph of a pilot serving as second-in-command if the pilot has undergone a regularly scheduled simulator evaluation during that period.

Not later than 24 months after the date of enactment of this section, the Comptroller General shall submit to the Committee on Transportation and Infrastructure of the House of Representatives and the Committee on Commerce, Science, and Transportation of the Senate a report concerning the effect, if any, on aviation safety of the modification to pilot age.

Bring it On: American Airlines Pilots' Union Seeks to Conduct All Flying at the US Major

American Airlines pilots' union, the Allied Pilots Association (APA), doesn’t tend to mince words.

It was pretty clear, therefore, what was being demanded when the APA last week issued a scope proposal to management, which states the union expects “all flying performed by or on behalf of the company shall be performed by pilots on the American Airlines seniority list – with no exceptions".

Be it flying mainline or regional service, the APA wants its members in the cockpit. Yep, that means feeder service too! The timing is clutch. American parent AMR Corp recently announced plans to divest regional feeder American Eagle Airlines next year.

The APA's proposal is part of a larger offer tabled by the union under collective bargaining negotiations with management.

This summer the union called for American to provide pilots a 30.5% pay increase, annual pay raises of 15% and signing bonuses to pilots. That was rejected, as was a proposal submitted in October that called for “adjusting current pay rates to account for post-1992 annual inflation, as reflected by the consumer price index”.

See for yourself if American’s pilots deserve a raise. This handy calculator, based on figures derived from the APA’s 2003 contract, tells you just how much the pilots are making now. (Photo above from APA web site)

Sifting Through the Hype: Just What Can JetBlue's Connectivity Solution Offer?

JetBlue Airways today confirmed it will start testing wireless connectivity services onboard an Airbus A320 beginning Dec 11.

Kudos to JetBlue for this well-timed marketing move – the carrier will technically be the first in the US to offer connectivity over WiFi-enabled devices. But let’s put their announcement in perspective, shall we?

First of all, JetBlue’s offering will be limited at best. The carrier says passengers who have WiFi-enabled laptops – AND Yahoo Mail or Messenger accounts – will be able to send and receive messages during flight. Passengers who have RIM’s new WiFi-enabled Blackberries – the 8320 and 8820 models – will have access to emails and messaging.

JetBlue’s LiveTV subsidiary last year won a 1MHz narrowband license during the FCC’s auction of 4MHz of spectrum in the 800MHz band allocated to air-to-ground services.

AirCell, you’ll recall, won the exclusive 3MHz broadband license at the FCC auction, and is preparing to offer service onboard American Airlines' transcontinental Boeing 767s (the test begins as early as March). Passengers will have access to e-mail, Internet and VPN accounts via virtually all WiFi-enabled devices.

I’d love to know more details about JetBlue’s offering (just how many passengers will be able to send/receive Yahoo email at one time, at what speed, etc, etc), but JetBlue has told me they don’t intend to discuss the issue until next week. Spoil Sports.

AirCell to Launch on American Airlines Boeing 767 as Early as March

American Airlines could launch AirCell’s wireless broadband connectivity service on its transcontinental Boeing 767-200ERs by the end of March, says AirCell senior vice-president airline solutions Fran Phillips.

This is a few months earlier than the mid-2008 launch previously predicted, and could indicate just how eager is American to offer connectivity to passengers.

Installation on the first 767 is slated to begin on or around December 18 in Kansas, says Phillips. Once completed, supplemental type certification (STC) on the type will be sought. If the trial is successful, equipage of the domestic fleet is anticipated.

So, just what types of WiFi-enabled handheld devices will the AirCell service support?

Here is the list: Alltel PPC 6800, Apple iPod Touch, AT&T 8525, AT&T Tilt, Blackberry 8320, Blackberry 8820, Cingular 8125, HTC PPC6700, Mogul by HTC, Nokia N95, Qwest 6700Q, Samsung SCH–i760, Sprint PPC-6700, T-Mobile Dash, T-Mobile MDA, T-Mobile Wing, Verizon Wireless XV6700 and Verizon Wireless XV6800.

American Airlines and British Airways May Try Again to Seek Antitrust Immunity

Consolidation and capacity reductions were among the hot topics addressed by airline executives today at the Calyon Securities Annual Airline Conference.

But AMR executive VP of finance and CFO Thomas Horton had some interesting thoughts about American Airlines' alliance with Oneworld partner British Airways (BA), and how that might be expanded in the future.

American is one of four carriers, including BA, United Airlines and Virgin Atlantic, with rights to serve Heathrow from the USA. An open skies accord brokered between the USA and the EU, which goes into effect in March, will overturn these restrictions and open up access to the UK airport.

Even though this will add competitive pressure for American at Heathrow, the carrier believes some good will come of it.

"The good news is that we think it will remove one of the regulatory entitlements to us being able to expand our relationship with BA to include antitrust immunity," says Horton, noting that most other US majors have been able to achieve immunity with their transatlantic partners.

American has previously tried and failed to gain clearance to expand its relationship with BA.

"We haven’t reached any conclusions on that, but it would seem that the marketplace would make that more likely as we move forward," says Horton.

American Airlines Mulls Satellite-Based Airborne Connectivity Options

By now it’s well known that American Airlines will test AirCell’s air-to-ground (ATG) broadband solution next year on board its transcontinental Boeing 767-200 aircraft.

But the Oneworld alliance member is also “actively engaged" with connectivity suppliers in the satellite area, says American manager of in-flight communications and technology Doug Backelin.

You may recall that American was one of three US majors, including Delta Air Lines and United Airlines, to sign on as equity partners in Boeing’s now-defunct Connexion (CBB) in-flight broadband service. All three carriers pulled out of the project following 9/11.

AirCell can offer ATG service across the USA, and expects to expand to Canada and Mexico. But overseas flights require a satellite link.

“We’re concentrating most of our efforts right now to make the AirCell test a success, but at the same time keeping an eye on satellite solutions, talking to satellite providers,” says Backelin.