Sky Talk

One last F-35 milestone for 2010

 

Ten down, three to go. Lockheed Martin flew F-35A model (AF-4) for the first time on Thursday, getting one last flight and one last accomplishment in before wrapping up 2010.

The aircraft is the first A model with the full missions systems, in their current form, on board. An F-35B with missions systems has been flying at Patuxent River.

The flight was number 410 for the year, compared to 394 that were planned. But the A models, three of which are already flying at Edwards Air Force Base, are flying more often and more reliably than expected. The five F-35B models, however, continue to run behind schedule.

The F-35A is the conventional-takeoff-and-landing model destined for use by the U.S. Air force and, presumably, most foreign buyers. It will be interesting to watch and see if this plane continues to fly immediately or whether this was a "beat the deadline" flight for schedule and contract reasons.

- Bob Cox

No. 1 Airline mergers (Southwest-AirTran and United-Continental)

Two big mergers rocked the airline industry in 2010.

First, United Airlines and Continental Airlines joined up to create the largest carrier in the world. United had been in talks with US Airways but then spurned the Phoenix-based airline for its Star Alliance partner, Continental.

The $3 billion stock swap deal closed on October 1 and the newly-merged United, which has an aircraft livery that combines Continental's globe logo on the tail with United's name on the fuselage, has recently announced it will trim back capacity at two of its hubs, Chicago and Denver.

The more surprising merger came in September when Southwest Airlines announced it would buy AirTran Airways for $1.4 billion in cash and stock.

"It will provide new, low-fare competition to nearly all legacy carrier hubs that we do not serve today, offering consumers new travel options," Southwest chief executive Gary Kelly said when the deal was announced.

The deal has not yet been approved by federal regulators but if it is approved it will enlarge Southwest's capacity by 25 percent and add Southwest service to the nation's busiest airport, Hartsfield-Jackson in Atlanta. It will also add Boeing 717 aircraft to Southwest's fleet which is currently made up of only Boeing 737s.

For Southwest, the acquisition is the largest in its history and analysts are watching the low-cost carrier to see how it integrates a workforce that has a different culture than Southwest and if it can keep AirTran's business customers who are used to two-class aircraft as opposed to Southwest's one-class fleet.

-Andrea Ahles

No. 2 F-35 program continues to run over budget and behind schedule

It was not a good year for the F-35 Joint Strike Fighter Program, certainly not from either a political or public relations standpoint. And even with much revised schedules for development, production and testing, Lockheed Martin and the Defense Department were at year's end once again struggling to meet goals and deadlines.

 The year began with Secretary of Defense Robert Gates having discovered just how badly the development and testing effort were off target and how far over budget the program was. In February, Gates sent the proposed defense budget to Congress with added funds for testing, a revised schedule and vastly revised -- much increased -- cost estimates.

Gates, who made it very clear in public comments he was not happy to have been so badly misled about progress just months earlier, relieved Marine Brig. Gen. David Heinz as the top manager overseeing the program and replaced him with Navy Vice Admiral David Venlet, a flier and head of naval aviation programs. Venlet was ordered to conduct a "deep dive" review of the program and report back to Gates, a progress that has been unfolding in the Pentagon in recent weeks.

Lockheed's management of the program also came under heavy criticism at times and, after the firing of Heinz, there were not so subtle hints out of the Pentagon, military and Congress that Lockheed should do likewise. Lockheed CEO Robert Stevens stoutly defended his Fort Worth F-35 chief, Dan Crowley. But shortly after the public vote of confidence Crowley was given a new assignment and later left Lockheed for a job with Raytheon in McKinney.

Pentagon cost estimates for the average price of an F-35 have soared, from about $62 million in 2001 to more than $130 million each over the life of the program. Lockheed officials insist those figures are unrealistic.

At year's end Gates was preparing a 2012 budget proposal that would pump more money into development and testing and allow more time for completion of testing on the three aircraft models, particularly the Marines F-35B.

As test planes rolled off the assembly line and began flying, the record was mixed. At year's end testing of the five F-35B aircraft at the Navy's Patuxent River, Md. test station were still behind schedule. Short takeoff and vertical landing testing has been slowed by continuing reliability problems with aircraft components. Lockheed acknowledged last month that a ground test version of the F-35B had developed cracks in a bulkhead, a major structural component. The problem occurred after just 1,500 hours of testing in a part that was supposed to last more than 8,000 hours of flight time.

On the other hand, two F-35A aircraft have flown far more flights and test points than had been expected since arriving at Edwards Air Force Base in California. A third F-35A was sent to Edwards in early December. One F-35C model, the carrier-based variant, has also flown regularly since being dispatched to Pax River.

The challenge for Lockheed and the DoD in 2012 is to get the other four flight test aircraft in the air and start meeting flight testing objectives. Pentagon officials now concede it likely won't be until 2015 or even 2016 before any F-35s are ready for service with active-duty military squadrons.

- Bob Cox

 

 

 

American slaps Orbitz, Expedia around some more

American Airlines says it's seen a "year-over-year increase" in overall ticket sales since Dec. 21, when it removed its flights from Orbitz-powered web sites, and Dec. 23, when Expedia jumped into the fray by hiding American flights on Expedia.

American said the increase was "roughly comparable" to one it saw earlier in December.

But the airline also noted a shift in ticket sales to other channels, "notably online travel agencies, such as Priceline.com, and referrals from metasearch engines, such as Kayak.com, as well as increased volume on its own website, AA.com."

"Our results to date show that consumer choice is alive and well and that our customers continue to have thousands of options to purchase American's competitive fares and convenient schedules," said Derek DeCross, American's vice president and general sales manager.

At issue are the fees American and other airlines pay the big travel reservations systems called global distribution systems to display flights and make bookings. American wants more of its travel partners, such as travel agencies and websites, to connect directly to its own reservations system.

DeCross said American is committed to working with all distribution channels, including traditional travel agencies, online travel agencies and global distribution systems.

"We do not envision a future in which we only sell to our customers through our own branded website," DeCross said. "Our goal is to have broad distribution channels and choices for our customers, with our products and services delivered efficiently and without unnecessary costs flowing through the process.”

- Scott Nishimura

No. 3 TSA, body scanners and pat downs

Holiday travel is usually stressful all on its own.

There are thousands of infrequent travelers who are not used to security procedures and thousands of frequent travelers who get irritated with the former.

But this year, the Transportation Security Administration decided November would be a good time to roll out a more aggressive pat down procedure for passengers who refuse to undergo a body scan. The TSA began testing full-body scanners in 2007 but started installing and using them at more airports in 2010.

A public uproar ensued with some Internet-based groups calling for a National Opt Out Day to clog TSA checkpoints with passengers refusing to go through the scanners. One traveler who opted out of the scanner in San Diego told screeners to not "touch my junk", videotaped the encounter with his cell phone and posted it on YouTube, heightening the criticism of the TSA's procedures.

Officials defended the procedures that some had called intrusive saying they are necessary to ward off terrorist attacks like the attemped bombing of a Detroit-bound plane on Christmas, by a man who had stashed explosives in his underwear.

At Dallas/Fort Worth Airport, body scanners have now been installed at the checkpoints but they are not always working as the TSA continues to train staff on how to use the scanners and conduct the pat-downs.

In the end, the National Opt Out Day ended up having little effect on the nation's airport screening system and most travelers seem resigned to the increased security at airports.

Of course, with millions traveling for the holidays, there may be new stories from passengers who find the security procedures invasive.

-Andrea Ahles

Airlines matching American's $20 fare hike

Farecompare.com says United/Continental, Delta, US Airways ans Alaska Airlines have matched the $20 roundtrip fare hike initiated Monday by American Airlines.

"No matching has occurred from Southwest, Jet Blue, AirTran or Frontier," Graeme Wallace, chief technology officer for Farecompare.com., said in an email.

- Scott Nishimura

Airline deregulation czar Kahn dies

Alfred Kahn, who turned the airline industry upside-down by guiding deregulation as chairman of the Civil Aeronautics Board under President Carter, died Monday. He was 93.

The Cornell University economist earned the lasting enmity of airline executives and organized labor alike by shepherding the deregulation policies that drove down fares, spurred competition and made it far more affordable for the average American to fly.

The New York Times reports he didn't even want the job:

His most significant public policy impact was undoubtedly as chairman of the Civil Aeronautics Board, which he joined in 1977 under pressure from Mr. Carter and Vice President Walter F. Mondale. What Mr. Kahn had really wanted was to head the Federal Communications Commission.

“I don’t think it’s my highest aspiration to make it possible for people to jet all over the world when the future clearly has to belong to substituting telecommunications for travel,” he recalled in a 2008 interview for this obituary, explaining his lack of enthusiasm for the civil aeronautics job.

An academic, Mr. Kahn knew almost nothing about the airline business — to him planes were just “marginal costs with wings” — but he quickly mastered the arcana and politics of routes, pricing and costs.

Alfred Kahn. A man who made history and who made a difference. RIP.

- Bob Cox

No. 4 American and British Airways joint venture finally approved

It only took fourteen years.

American Airlines and British Airways finally got approval from U.S. and European regulators for a joint business alliance that has anti-trust immunity.

With the JBA, which also includes Iberia, thethree airlines can cooperate on scheduling, marketing and other business functions on routes. They can also share expenses and revenues.

American and BA had tried to gain anti-trust immunity in 1996, but the Department of Transportation dismissed the application. They tried again in 2000 but withdrew their application when the department asked them to give up 224 landing slots.

The carriers say that their new pact allows them to better compete with United Airlines' Star alliance and Delta Air Lines' SkyTeam alliance, which already have similar joint trans-Atlantic business agreements in place.

As a result of the JBA, American announced new flights between New York and Budapest and Chicago and Helsinki. The carrier also recalled 250 pilots and 545 flight attendants to help staff more international flights.

American has also told Wall Street analysts that the trans-Atlantic joint venture and its joint venture with Japan Airlines across the Pacific will net the carrier an additional $500 million in annual revenue.

-Andrea Ahles

Major airlines launch fare hikes

The major airlines have piled in on different variations of a new fare hike, Farecompare.com said Monday night.

United/Continental added a $10 one-way "peak travel day surcharge," and American and Delta launched $20 roundtrip fare increases, Graeme Wallace, chief technology officer of Farecompare reports.

United/Continental led off Monday morning with the surcharge on all future travel dates. "These surcharges have been added to all future travel dates," Wallace said.

A couple of hours after United/Continental's move, American launched its fare hike "for the bulk of its domestic route system, a hike that was soon matched by Delta Air Lines," Wallace said.

"It's worth noting that these increases come on a day in which oil prices soared to a 26-month high, which impacts the airlines' jet fuel costs," Wallace said.

- Scott Nishimura

New York airports re-opening, but American's Northeast shut down till Tuesday

The New York area's airports -- Newark, LaGuardia, and JFK -- are re-opening this evening, but American Airlines says that announcement came as a surprise. "Newark and LaGuardia had been telling us morning, JFK had been telling us 6 p.m. (Eastern Monday), but we were skeptical," said Ed Martelle, spokesman for American and American Eagle.

Based on that info, AA cancelled all flights into and out of those airports Monday night, and doesn't plan on trying to jumpstart the system tonight, Martelle said.

The airline also has cancelled 70 flights Tuesday morning due to the weather, but that number could fall depending on conditions, Martelle said.

For Monday, as of 4 p.m. Central, American had cancelled 310 flights into and out of the Northeast because of the weather, and American Eagle cancelled 232, Martelle said. DFW Airport had 28 related cancellations.

- Scott Nishimura