Tag Archives: DOJ

740 Status Match

1 Reply

Podcast: Play in new window | Download (Duration: 1:54:45 — 52.5MB)

Status match and airline loyalty programs with an industry leader. Also, an alleged export control violation involving Russia, a hydrogen-powered regional airliner takes flight, Jetblue court cases, and an FAA system problem impacts check rides. We also have an Australia News Desk report from Avalon and a visit to an El Al MRO shop.

Guest

Mark Ross-Smith.

Mark Ross-Smith is an award-winning global airline loyalty industry leader. He’s an author, the founder of industry news site Travel Data Daily, and the CEO of Status Match.com, which helps switch loyalty tier status to a new airline or hotel. Mark has 20 years of experience leading loyalty programs in telecoms and travel, most recently at Malaysian Airlines. He’s published dozen of papers and articles on airline loyalty and is a frequent speaker at conferences and other events.

Mark describes the “status cliff” faced by airlines and customers. As the pandemic halted travel, airlines extended customer loyalty status. Now that demand has returned, airlines don’t want to extend status for free. Large numbers of customers have been or are in danger of being downgraded.

We also learn that an airline’s loyalty program is sometimes valued higher than the airline’s operations. Credit cards are a high-margin business for airlines and contribute significantly to an airline’s valuation. We wonder if airlines these days airlines, or are they marketing companies and loyalty programs that have an airline division? Mark explains that regardless, airlines need to provide the kind of service that makes the loyalty program attractive to their customer demographics.

Mark tells us about the concept of the status match. This is where one loyalty program gives you some status based on the status you have with another. It’s a process that shifts consumer behavior and Mark explains why airlines (and hotels) engage in this practice, and what it means for the consumer. For a fee, StatusMatch.com may be able to arrange one for you.

Aviation News

2 Americans arrested for allegedly sending aviation technology to Russia

The charges include exporting controlled goods without a license, falsifying and failing to file electronic export information, and smuggling goods contrary to US law. US-based KanRus Trading Company allegedly sold equipment to Russian companies and provided repair services for Russian aircraft. Prosecutors say the pair concealed who their clients were, lied about how much the products cost, and they were paid through foreign bank accounts. All this to circumvent U.S. sanctions.

First hydrogen-powered airplane takes flight in Moses Lake

The 40-passenger regional airliner flew for 15 minutes using hydrogen fuel cell propulsion.  Universal Hydrogen developed the plane, nicknamed Lightning McClean. A fuel cell electric powertrain replaces the existing turboprop engines. The FAA granted Universal Hydrogen approval for the test flight under a special airworthiness certificate. The flight test campaign is expected to run through 2025, followed by entry into passenger service of ATR 72 regional aircraft that same year converted to run on hydrogen.

JetBlue is at the center of two cases that could remake the industry

JetBlue is deeply into a pair of high-profile antitrust cases that some say could redefine the way U.S. airlines compete. In one case, the Justice Department is looking at JetBlue’s Northeast alliance with American Airlines where the two airlines coordinate schedules and share revenue on selected Northeast routes. The airlines call it an alliance. The DOJ says it’s a de facto merger. In the other case, JetBlue seeks to merge with Spirit Airlines. The DOJ hasn’t yet said what it will do.

Check Rides Grind to a Halt When the IACRA System Coughs

It’s not a NOTAM system crash this time, it’s the FAA’s Integrated Airman Certification and Rating Application system (IACRA) that is failing. Without IACRA, designated pilot examiners are having difficulty performing check rides. The FAA confirmed that the IACRA system lost some data.

Australia News Desk

The Australian International Air Show made a triumphant return after a covid interrupted four-year break, and Grant and Steve were there to take in all the action.

The event is located at Avalon Airport, roughly 60 kilometres southwest of Melbourne, and is a major event on the world air show calendar.  This year saw attendance from many nations including the United States, Canada, the UK, New Zealand, Japan, Germany, and South Korea.

Standout displays included the Republic of Korea Air Force Black Eagles, RAAF F-35A and  F-18F’s, USAF F-22, Air Race World Champion Matt Hall, and aerobatics ace Paul Bennet.

Ostensibly a trade, government, and business exposition, it runs across six days, culminating in two and a half public open days, where the aerial action kicks into high gear.

In this report, the guys discuss some of the military announcements made during the show, take in the impressive array of USAF tankers that made the trip, and a new remote-operated aircraft designed and built by the ADF for ISR operations, which cost only $AU50,000 each.

Finally, they catch up with veteran air show commentator Peter Meehan, who’s retiring from his role as the voice of Avalon after more than 30 years, and his successor, well-known aviation writer and radio presenter Tony Moclair.

Steve Visscher and Grant McHerron.
F-35 in flight at Avalon.
F-35 at Avalon.
Biplane flying with explosions in the background.
Action at Avalon 2023.

Aircraft images by Wayne Nugent and Victor Pody.

El Al MRO Facility

Brian Coleman talks with Max Flight about his visit to an El Al MRO facility in Tel Aviv.

Hosts this Episode

Max Flight, Rob Mark, and David Vanderhoof.  Contributions by Grant McHerron, Steve Visscher, and Brian Coleman.

672 Leonardo AW609 Tiltrotor

Podcast: Play in new window | Download (Duration: 1:29:05 — 40.8MB)

The Head of Tiltrotor Marketing at Leonardo describes the world’s first commercial tiltrotor. In the news, a United stationary tail strike, Congress steps in on the controversial FAA flight training policy, DOJ files an antitrust suit over the American Airlines-JetBlue alliance, an industry-wide no-fly list is proposed, and Rolls-Royce wins the contract to re-engine the B-52 fleet.

AW609 Tiltrotor
Leonardo AW609 Tiltrotor, courtesy Leonardo.

Guest

William M. (Bill) Sunick

William M. (Bill) Sunick is Head of Tiltrotor Marketing at Leonardo. Their AW609 is the first commercial tiltrotor to enter the market and the world’s first pressurized cabin tiltrotor. The AW609 is well-positioned to serve a number of markets, including VIP, corporate, search and rescue, emergency medical services, and offshore energy exploration, as well as government roles.

Bill describes how the AW609 tiltrotor was designed to commercial standards, and how it offers the speed, range, and altitude of a fixed-wing turboprop airplane with the vertical take-off and landing versatility of a helicopter. We learn that the lower vibratory environment and pressurized cabin of this tiltrotor offer advantages for medical flights. Bill explains the FAA certification requirements for this aircraft, which falls into the new Powered Lift category.

Bill is responsible for the development of marketing and business strategies that create new opportunities, shape emerging markets, and influence customer thinking and actions. Prior to joining Leonardo Helicopters, Bill held numerous leadership positions at The Boeing Company within Strategy, Marketing, Sales, Market Development, and Engineering. He was also a member of the Presidential Helicopter team while at Sikorsky Aircraft in 1992.

Bill’s educational background includes a bachelor’s degree in Mechanical Engineering from Drexel University and a master of business administration degree in Marketing from Saint Joseph’s University.

Aviation News

United 737 Tips on its Tail During Offloading

A United Airlines Boeing 737-900ER experienced a “stationary tail strike” on the ground at Lewiston (LWS Idaho) after a flight from LAX. United explained:

United flight 2509 flying from Los Angeles, California to Lewiston, Idaho landed without incident. Due to a shift in weight and balance during the offloading process, the tail of the aircraft tipped backward.  No injuries were reported among our customers, crew or ground personnel.  The return flight was on a different aircraft as originally planned.

See Boeing Tail Strike Avoidance for takeoff and landing risk factors.

House Passes Amendment to Reverse FAA on Flight Training Policy

The U.S. House of Representatives approved a bipartisan amendment to the National Defense Authorization Act (NDAA) that clarifies that a flight instructor providing student instruction, flight instruction, or flight training shall not be deemed to be operating an aircraft carrying persons or property for compensation or hire. If passed, this would reverse the FAA’s recent flight training policy for certain types of aircraft.

Justice Department Sues to Block Unprecedented Domestic Alliance Between American Airlines and JetBlue

DOJ filed an anti-trust suit challenging the American Airlines-JetBlue alliance

American and JetBlue strike back against DOJ complaint over Northeast alliance

The DOJ claims the American Airlines-JetBlue Northeast Alliance eliminates competition in New York and Boston and harms air travelers nationwide:

The U.S. Department of Justice, together with Attorneys General in six states and the District of Columbia, sued today [September 21, 2021] in the District of Massachusetts to block an unprecedented series of agreements between American Airlines and JetBlue through which the two airlines will consolidate their operations in Boston and New York City. The civil antitrust complaint alleges that this extensive combination, which they call the “Northeast Alliance,” will not only eliminate important competition in these cities, but will also harm air travelers across the country by significantly diminishing JetBlue’s incentive to compete with American elsewhere, further consolidating an already highly concentrated industry.

American Airlines CEO Doug Parker said, “They’re wrong and we’ll prove it. It’s entirely pro-competitive.” Parker argued that the alliance allows the two airlines to compete against Delta and United, which are largely entrenched in the Northeast market, while American and JetBlue would otherwise not be able to mount enough of an offense on their own.

Airlines Weigh Unruly No-Fly List

Delta is suggesting a national “no-fly” list (different from the government’s No-Fly List, which is terror-based). Delta’s own blacklist includes more than 1,600 people. A Delta VP said their list doesn’t work if the person can just hop on another carrier.

Vietnam’s Bamboo Airways to sign $2 bln deal with GE for engines on Boeing jets

In this deal, Bamboo Airways will purchase nearly $2 billion worth of General Electric GEnx engines to power Boeing 787-9 Dreamliner aircraft. The Rolls-Royce Trent 1000 and General Electric GEnx-1B compete on the 787. Bamboo will operate its Dreamliner fleet on non-stop routes between Vietnam and the United States.

Rolls Royce Will Provide Long-Awaited New Jet Engines For The B-52 Bomber Fleet

The U.S. Air Force selected Rolls-Royce’s North American division to re-engine the fleet of B-52H bombers with F130 engines. The Drive reports: “Rolls-Royce’s new contract from the Air Force is valued at $500,870,458 over the next six years but could grow to over $2.6 billion if all of its options are exercised.” Work will be performed at the Rolls-Royce facility in Indianapolis and is expected to be completed by September 2038.

Mentioned

Tuskegee Airmen Exhibit at the American Helicopter Museum.

Honeywell and Wood introduce groundbreaking technologies to support efforts toward carbon-neutral sustainable aviation fuel

Sustainable Aviation Fuel Grand Challenge