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Oct 8

More details on that Qantas flight over the sea off western Australia yesterday in which more than three dozen passengers were injured, some seriously.

The plane, an A330 carrying 313 passengers and crew, climbed about 300 feet from its 37,000 feet cruising altitude before “abruptly pitching nose-down,” according to the accident report on the Aviation Safety Network. The report says a possible “systems irregularity” combined with sudden turbulence was the likely cause. It isn’t clear yet what the “systems irregularity” might have been.

By the way, I just love the quote from an Australian air-transport safety official in today’s Wall Street Journal. He says, “certainly, there was a period of time when the aircraft performed of its own accord.”

Here on planet Earth, we define that as  “fell.”

A plane that abruptly pitches nose-down has a remarkable ability to concentrate the attention.

Here’s a detailed report in the Australian, a newspaper, with comment from passengers who literally hit the ceiling.

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Oct 7

There’s been another safety-related incident on a Qantas airliner, this one on an A330-300 that suddenly lost altitude on a flight to Singapore from Perth, Australia. At least 36 passengers were hurt, a dozen of them seriously.

This is the latest in a series of recent incidents involving Qantas, which has long prided itself on having one of the best safety records in aviation. The most serious previous incident was in July, when an oxygen container exploded in a cargo hold and blew a hold the size of an SUV in the side of a 747 that then had to make an emergency landing.

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Oct 7

Interesting to see some business-trip expense accounts are still riding high while the rest of us are scrambling.

It seems that executives of AIG, the big fat insurance company we all bailed out recently to the tune of $85 billion, had themselves a swell executive retreat — right after the bailout — at a super-expensive Southern California oceanfront resort, the St. Regis Monarch Beach.

Here’s the $443,343.71 hotel bill, by way of a Huffington Post link today to the House Oversight Committee’s Web site report on hearings into the bailout.

Rooms at the St. Regis Monarch Beach run from $565 to over $1,300 a night, by the way.

Hey, it’s just dough, and it’s expense-accountable, right? And that $23,000 the high-fiving AIG swells spent on hotel spas during their week of resort R&R after the taxpayers bailed them out? Hell, they’d just been through a very stressful time, friends.

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Oct 7

The company that owns Minneapolis-based Sun Country Airlines filed for Chapter 11 bankruptcy protection yesterday. In a statement, the company said:

“Petters Aviation and its subsidiaries, including MN Airlines, LLC, d.b.a. Sun Country Airlines, filed for protection under Chapter 11 of the United States Bankruptcy Code. Sun Country Airlines will continue to operate and fly its regular flight schedule.

Stan Gadek, Chairman and Chief Executive Officer of Sun Country said, “We were forced to take this action as a result of recent events at Petters Group Worldwide. We do not anticipate any disruptions, and expect to operate business as usual… Customers can book their flights in confidence and know that they will continue to receive the great service that they are accustomed to on Sun Country.”

I’d take issue with that “book with confidence” assertion. Make it, book with caution. And remember: If you do book on Sun Country, use a credit card because by law credit card charges are refundable for services not rendered, such as a flight that disappears if an airline suddenly goes belly-up. If you book with a debit card, or pay with any other form of currency, you are not covered.

And incidentally, the “recent events at Petters Group Worldwide” is a reference to an FBI raid last month on Petters headquarters.

Petters Aviation is a wholly owned unit of Thomas Petters, Inc., and owns MN Airline Holdings, Inc., the parent company of Sun Country Airlines.

MESA AIR, meanwhile, is “reducing staff across the board,” its chairman, Jonathan Ornstein, told ATW Online, an aviation news site. Facing a projected $250 million drop in revenue this year, Mesa Air Group is finding it impossible to “support the same level of overhead,” Ornstein said, without adding details.

For August, Mesa reported a 13.9 percent drop in revenue passenger miles flown on an overall drop of 24.5 percent in total passengers boarded. Delta Air Lines dropped its contract with Freedom Airlines, a Mesa unit, in August.

Mesa currently operates 159 aircraft with over 800 daily departures to 126 cities, 38 states, the District of Columbia, Canada, the Bahamas and Mexico. Mesa operates as Delta Connection, US Airways Express and United Express under contract with Delta Air Lines, US Airways and United Airlines, respectively, and independently as Mesa Airlines and go!, the Hawaiian carrier that links Honolulu to the neighbor-island airports of Hilo, Kahului, Kona and Lihue.

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Oct 6

Airlines are having such a hard time selling tickets these days that an old joke can be adapted to fit the situation:

CUSTOMER — “What time does the flight to San Diego leave?”

AIRLINE CLERK — “What time can you get here?”

Good news for frequent fliers. In general, with airline traffic falling sharply, this is a very good time to redeem frequent-flier miles for award tickets and upgrades.

Meanwhile, Virgin America just upgraded its award-trip feature online. Here’s the announcement.

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Oct 3

Minnesota’s Sun Country Airlines is warning employees that it could shut down later this fall, but hopes to stay in business.

A month ago, Sun Country joined some of the big guys in alienating customers and added a fee ($12) for the first checked bag. Not that an annoying extra fee could put you out of business in this terrible economic climate, but it sure can’t help you keep customers loyal. Sun Country’s basic problems, of course, are the FBI investigation of its parent company (see post 9/25) and the credit crunch.

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Oct 1

The world really is changing.

Southwest Airlines said today it will introduce priority security lane access for its Business Select and Rapid Reward A-List Customers at select airports.

Southwest said it will open the lanes, branded “Fly By,” at these airports later this month:

Baltimore/Washington International, Dallas Love Field, Phoenix Sky Harbor
International, Orange County John Wayne, Denver International, San Francisco
International, and Los Angeles International.

Southwest said it plans to add more airports to the Fly By rollout starting in November, continuing to implement the priority security lane program throughout its
system on an airport-by-airport basis.

To use the lanes, passengers must have an A-List identification card or a Business
Select boarding pass.

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Sep 30
Two new economic indicators in a time of mounting trouble:

First, the long-booming market for business jets is softening, says Forecast International, the aerospace analysis company.

Forecast International says it expects annual business jet production to reach nearly 1,400 units in 2008, and exceed 1,600 units in 2009. But the company projects that annual production will then suffer a three-year decline, dropping to a level of 1,515 units by 2012. Growth is expected to resume in 2013, with yearly production exceeding 1,700 units by 2017, the final year of the time period covered by the study.

Overall, Forecast International projects that 15,936 business jets, worth an estimated $223 billion, will be produced from 2008 through 2017. This total includes about 5,600 Very Light Jets (VLJ). “The VLJ sector is expected to be a very dynamic portion of the market,” Forecast said.

I’d exercise real caution, by the way, in very-light jet projections, given the flame-out earlier this month by DayJet, the air-taxi startup that was the biggest customer for the Eclipse 500 (with 28 deliveries and 1,400 orders representing about half of the Eclipse order book).

Eclipse, which recently announced a new manufacturing deal in Russia, has also been saddled with production problems in the U.S. affecting deliveries of the jet, whose price for available delivery in 2010 is now $2.15 million, according to the Eclipse Web site.

On his Web site, Michael Boyd, the aviation forecaster, recently said that the very-light jet “revolution” has ended, though the various models of VLJs are attractive small planes. One big problem, Mike says, has been the disappearance of the “breakthrough low-acquisition cost” for VLJs and especially the Eclipse 500, which originally was marketed at just under $1 million.

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Meanwhile, more bad news in Las Vegas:

According to the AP, Morgans Hotel Group cut its capital commitment to its portion of the already sidelined $4.8 billion Echelon mega-development, creating another serious setback for the joint venture project with Boyd Gaming, the casino company.

Boyd stopped work on the Echelon project on the Strip in July, citing the credit crunch — and in doing so, Boyd exacerbated fears in Vegas about a growing economic turndown. Boyd said that construction on the project might resume in a year or so.

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Sep 29

Two years ago today, I was quietly working on my laptop on a Legacy 600 business jet flying routinely at 37,000 feet over the Amazon in Brazil when hell broke loose.

With a horrific crash that I still feel in my bones today, the business jet collided in mid-air with a Boeing 737 operated by Brazil’s Gol airlines. The 737, its left wing shorn off, went down in the jungle, killing all 154 on board. The Legacy, its left wing severely damaged and its horizontal stabilizer chewed up, flew on somehow, losing speed and altitude until its two pilots, through a stroke of breathtaking luck, found an airstrip in the jungle and wrestled the plane down.

Through skill and courage, those pilots saved my life and the lives of the four other passengers on the brand-new, $27 million, 13-seat private jet, which was on the first leg of a delivery flight from its Brazilian manufacturer, Embraer, near Sao Paulo. (The pilots, Joe Lepore and Jan Paladino, pointed out, as pilots will, that they also saved their own lives.)

When the crash occurred, no one on board knew what had happened. Both planes were flying on a collision course at 500 miles an hour each. At such closing speeds, you just don’t see it coming.

Three hours after our landing, while in custody at the obscure military base in the jungle, word came that a 737 had gone down.

For Joe and Jan, the world collapsed.

After what seemed like endless interrogations, the other passengers and I were released two days later, but the pilots were kept in Brazil for over two months. After a judge finally ordered their release, Brazilian military and police authorities hastily cobbled together criminal charges alleging that the pilots had been negligent.

It very quickly became clear to me, shortly after the landing in the jungle, that a coverup and a scapegoating was under way. The accident occurred two days before a heated presidential election in Brazil, with a subsequent lengthy runoff period where Anti-American hysteria was palbable in the rush to criminalize the accident and blame the U.S. pilots.

It also quickly became clear to me that Brazil’s air traffic control system was notoriously unreliable, an assertion made to me by more than a dozen international pilots and since confirmed by the evidence. The system, strangely operated by the Brazilian Air Force, depended on unreliable equipment and poorly trained controllers. There also are well-known radio and radar blind spots over the Amazon.

Both planes were flying where they’d been told to fly by air traffic control. A separate element was the malfunctioning on the Legacy of a piece of equipment called the transponder, which triggers the anti-collision warning that would have been the last chance to avoid the hideous accident.

For 18 months, I wrote extensively and too passionately about all of this on the now inactive Brazil portion of this blog. I have no desire to revisit that commotion now or re-fight those awful battles.

But I do need to provide an update, because people keep asking me: What ever happened to those two pilots? The story, real all the time to those of us who lived it, quickly disappeared from the U.S. media’s radar screen.

Joe still works for Excelaire, the Long Island charter company that owned the Legacy. Jan left the company to work for an airline.

Both pilots are still on trial, in absentia, in Brazil. If they are convicted of the charge of negligent homicide, they will become international criminals. If they are convicted, the United States will not extradite them to Brazil because we don’t have a treaty covering that. But they will need to be careful, for the rest of their lives, about where they travel.

The Brazilians are about to release their long-in-progress report on the crash, and it is expected that the pilots will be squarely blamed, although it is also expected that a small group of Brazilian air traffic controllers will also be blamed and some concessions will be made about faults in the Brazilian air-traffic system.

Once the Brazilian report is officially released, perhaps as early as this week, the National Transportation Safety Board in the United States, which has been conducting its own parallel investigation, will be able to release its report. The N.T.S.B. report is expected to be far more fair and accurate.

I’ll make note of it and post both reports here when they are available.

Two years ago, with adrenaline pumping in the initial surge of survival, the seven of us who survived pledged that we would meet every year on the anniversary.

We never kept that promise because, as time passed, there has been no closure (I cringe to write that awful word) — and there is, of course, no joy, because so many died while luck favored us, for no good reason at all.  There is survival for the lucky ones — for me, for Joe and Jan, David Rimmer, Ralph Michielli, Henry Yandle and Daniel Bachmann, for the the Amazon 7.

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Sep 29
Everyone who’s written about Delta’s announcement that it is adding a first-class section to the MD-88s it uses on its Shuttle operation — myself included — has overlooked one obvious reason for the move, pointed out to me today by Joe Brancatelli: Fleet flexibility as the Shuttle market shrinks.

“With a standard configuration of first/coach, the planes no longer have to be dedicated to the shuttle runs,” he notes. Instead, they can be redeployed, as needed, on the regular fleet for longer-route service.

As I said on Friday, the roundtrip Shuttle fare between New York and Washington or Boston is nearly $700. Whoa. This, of course, is exactly what individual fliers and corporate travel departments have been saying as well, and Shuttle traffic has been softening. The Wall Street collapse will only add to that.

I don’t think Delta’s move had much, if anything, to do with the extra $100 to $200 it might theoretically wring out of Shuttle users for first-class seats, because the coach fare is already so daunting. As Delta made a big point of saying, the new first-class section will enable elite-status fliers to get free upgrades.

So it’s a perk and a ploy.

As to the bus: Obviously, a cheap ride on one of those new bus shuttle boutique services is an option for business travelers, but it takes half the day on the bus, so it’s not for someone who has to rush to Washington (or New York) at the last minute, which is where the core of the Shuttle market is — or was.

Amtrak isn’t a lot faster than the bus, but it’s a lot cheaper than either the Delta or US Air shuttles. And, of course, it’s a lot greener than either.

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