Company Watch

sponsored by 

Airlines request "do no harm" policy, NextGen investment
Following a closed-door meeting with aviation stakeholders, Transportation Secretary Ray LaHood on Thursday announced formation of a federal panel charged with producing "a roadmap for the future of the aviation industry." Airlines pressed for greater federal investment in NextGen. They also urged the government to resist calls for greater regulation, and to not introduce new taxes and burdens on the industry -- a policy US Airways Chairman and CEO Doug Parker described as "do no harm" in a letter to LaHood. James May, president and CEO of the Air Transport Association, said "Ultimately, a healthy airline industry will help drive the nation's economic recovery." Union officials said they were not seeking re-regulation of the industry, though they hoped to see higher barriers to entry designed to discourage the formation of new low-cost carriers. Reuters (11/12) AviationWeek.com (11/12) SeattlePI.com/Aerospace News blog (11/12)

• ATA comments on DOT stakeholder forum on aviation financial health, formation of federal advisory committee to discuss industry future: Read more here.

With new fittings in place, 787 could fly by year's end
Boeing Co. says it has finished attaching 34 reinforced fittings to the joints where the wings meet the fuselage on its new 787 aircraft, setting the stage for test flights later this year. "Completing this work is a significant step toward first flight," the company said Thursday in a statement. Chicago Tribune/The Associated Press (11/12) Air Transport World (11/13)

Inside Aviation

sponsored by 

DOT: Airline employment slips 5.5% in September
Employment at U.S. airlines has dropped for the 15th consecutive month, the Department of Transportation reports. September's 5.5% slide brings total full- and part-time employment in the airline industry to 563,573. The biggest job cuts were reported among regional airlines, while two discount carriers reported net gains in September employment. The Wall Street Journal/Dow Jones Newswires (11/12)

Bag-claim security gets second look after Phoenix incident
Officials at Phoenix Sky Harbor International Airport will boost security patrols and video surveillance in the baggage claim area following the arrest last week of a couple who allegedly stole some 1,000 bags from the airport. Passengers landing in Phoenix will also be advised of random ID checks when claiming checked luggage. Such checks were routine until a decade ago, when budget cuts led to the current "grab-and-go" system at most airports. Airlines and airports say they work together to prevent baggage theft, though reports of "mishandled bags" are ultimately chalked up to airline companies. Still, the Air Transport Association says the system works well. "The actual loss of a bag is unusual, and a theft is even more unlikely," the group said in a statement. MSNBC (11/12)

Other News

• Pilots warned on differing alcohol rules overseas
  TheStreet.com (11/12)

Energy Bulletin

White House may seek short-term climate pact
President Barack Obama is considering pushing for a short-term deal at next month's Copenhagen climate talks. Congress has yet to pass a climate change measure of its own, limiting Obama's ability to commit to a long-term international agreement. "An interim, operational deal is not meant to be seen as a substitute for a real agreement," said Todd Stern, U.S. special envoy on climate change. "It's meant to be seen as substantive building blocks to a full, legal agreement, and perhaps the best chance of getting such an agreement." The Washington Post (11/12)

IEA warns higher oil prices may inhibit recovery
The International Energy Agency on Thursday warned that rising crude prices could hamper economic recovery. In raising its daily oil-demand forecast by 140,000 barrels, the agency projected that demand for oil will increase to 86.2 million barrels a day next year because of emerging markets. The Wall Street Journal (11/12) The Times (London) (subscription required) (11/12)

If oil prices continue to rise, 2010 demand could drop, warns OPEC:
"Although most signs are pointing toward higher oil demand," the Organization of the Petroleum Exporting Countries said in its November Monthly Oil Market report, "a potentially weak economic recovery along with higher oil prices are the two main factors that may dampen world oil demand in the coming year." Google/The Associated Press (11/11)

Other News

• Senators pitch cash prize for carbon capture
  The New York Times (tiered subscription model)/Dot Earth blog (11/12)

Featured Content The "Iterate Fast and Release Often" Philosophy of Entrepreneurship  Ben Parr Forget the Phonebook: 3 Local Marketing Initiatives with Higher ROIs  Gregory Go 5 Tips for Getting More Exposure from Bloggers, Tweeters and Fans  John Jantsch An Interview with Henry Blodget  Marcy Shinder  from OPEN Book: Social Media Why It's So Difficult to Find Angel Capital  Scott Shane

Regulatory Update

Feds appear split on investment for NextGen avionics
Some of the president's top advisers are pushing federal assistance to help cash-strapped airlines install the advanced avionics needed to make the NextGen air-traffic control system a reality. But White House budget hawks are opposing the plan, which could cost $10 billion over five years, according to The Wall Street Journal. Many industry groups have joined forces to support the push for avionics upgrades, and they have found support among transportation officials and Lawrence Summers, the senior White House economic adviser. "We have a terrific window of opportunity here, and we shouldn't squander it," says Marion Blakey, CEO of the Aerospace Industries Association. The Wall Street Journal (11/13)

Industry Trends

International authorities reassessing airport security needs
A trade group representing the world's airlines is questioning security measures said to cost the industry some $5.9 billion a year. With airline losses expected to reach $11 billion this year, the group argues that security risks "must be prioritized to allocate resources where they are most needed." Speaking at an aviation security conference in South Africa this week, Denmark's civil aviation chief agreed that reforms are needed. "We are spending too much time on screening low-risk passengers instead of identifying high-risk passengers," Kurt Larsen told attendees, arguing that U.S. measures implemented in the wake of 9/11 were intended mainly to reassure the traveling public. Business Day (South Africa) (11/12)

Other News

• BA, Iberia agree on merger terms
  The Wall Street Journal/Dow Jones Newswires (11/13)

Career Development

If you can't say anything nice, say it anyway
Believe it or not, employees prefer negative feedback to no feedback at all. Research shows that employees who feel ignored by managers are twice as likely to be disengaged than if they have a manager who focuses on their weaknesses. Gallup Management Journal (free content) (11/12)

SmartQuote

Email: a4a@smartbrief.com
Mailing Address: SmartBrief, Inc.®, 555 11th ST NW, Suite 600, Washington, DC 20004
Legal and Privacy information at http://www.smartbrief.com/legal.jsp
Unsubscribe