Blues in the Sky: NPR’s in-depth coverage shows how airlines cut costs by going aborad for service/repairs

October 20, 2009 at 5:46 pm

(Source: NPR)

NPR’s three part special series titled ” Flight Mechanics: The Business of Airline Repairs” examines the industry practices to cut costs and how they  are battling to survive the economic downturn.  The short blurb of the special report says “Recent maintenance mistakes raise questions about a growing practice at U.S. airlines: Since an economic crisis began shaking the industry in 2002, most major airlines have stopped repairing and overhauling most of their own planes. Instead, they are sending the planes to be fixed for less money by private repair companies — often in developing countries.” Here is an (Text and Audio) excerpt from Part 2 of the three-part series.

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“Shortly before sunrise on Jan. 23, 2009, passengers on US Airways Flight 518, who were flying from Omaha to Phoenix, were startled by a terrifying shriek.

The pressure seal around the main cabin door was failing, and that shriek was the sound of air leaking through. The plane diverted to Denver. Everybody was safe.

In the weeks before the door seal started to fail, US Airways had sent that Boeing 737 to be overhauled at Aeroman, a repair company in El Salvador. And mechanics installed a key part on the door — a “snubber” — backward.

Chart: Outsourcing Aircraft Maintenance

Source: FAA Inspector General, Aeronautical Repair Station Association Credit: NPR

The globalization of airline maintenance is a remarkable reversal. Until just a few years ago, America’s airlines maintained most of their own planes. The FAA requires airlines to overhaul every plane roughly every two years or less, and small armies of mostly union mechanics at the airlines did the work.

But that was before 2002 — when US Airways filed for bankruptcy, American Airlines slashed flights, and other airlines teetered at the brink. Since then, airlines have been trying to survive by cutting back on any expenses they can control — including the little bags of peanuts.

One of the biggest areas airlines can cut costs is maintenance. Consider this: If an airline fixes its own planes in the U.S., it spends up to $100 per hour for every union mechanic, including overhead and other expenses, according to industry analysts. The airline spends roughly half as much at an independent, nonunion shop in America. And it spends only a third as much in a developing country, such as El Salvador.

Since the airline crisis hit seven years ago, the statistics have flip-flopped: The industry is now sending most of its planes to be overhauled and fixed at private repair shops both in the U.S. and overseas. And roughly 20 percent of planes are going to facilities in developing countries, according to industry surveys.

Industry analysts say there are roughly 700 FAA-approved repair companies in other countries — including repair shops in Argentina, Costa Rica, Ethiopia, Kenya, China and Indonesia. The Aeroman company in El Salvador is becoming one of the more popular, drawing business from US Airways, JetBlue, Frontier, Southwest and other U.S. carriers.

The way the system works, the airlines fly empty planes needing an overhaul to Aeroman’s hangars at the international airport near the capital, San Salvador. Salvadoran mechanics strip the inside of the plane down to the bare metal. They fix cracks and rust and bad wiring. Then they put everything back together, and the plane is flown back to the U.S.

When people hear that U.S. airlines are getting their planes fixed in developing countries, they often raise their eyebrows and ask, “Should I worry?”

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Part ITo Cut Costs, Airlines Send Repairs Abroad: Recent malfunctions affecting US Airways planes raise questions about a controversial and growing practice at most U.S. airlines: The industry is sending almost 1 out of every 5 planes needing overhaul or repair to developing countries, from Central America to Asia.

Part IICrossed Wires: Flaws In Airline Repairs Abroad: Mechanics have made some mistakes fixing US Airways planes at an FAA-approved facility in El Salvador. Industry executives and the FAA say the maintenance work is just as safe as any work done in the U.S. But airlines and the FAA don’t make maintenance problems public.

Part IIIBucking Trend, Airline Keeps Repairs In-House: As many major U.S. airlines shift their repair and maintenance work to outside firms, American Airlines is taking a different approach. The airline has its own crew of 6,000 mechanics based in Tulsa, Okla., who service its fleet and even contract for outside business.

Click here to read/listen the entire series. Don’t forget to check the interactive map while you are reading the special report.

San Francisco Municipal Transportation Agency’s (Muni) chief operating officer steps down

August 4, 2009 at 4:44 pm

(Source: SF Gate)

Image Courtesy: Apture

The San Francisco Municipal Transportation Agency’s chief operating officer handed in his resignation today, an announcement that comes in the wake of two high-profile accidents involving city streetcars.

Kenneth McDonald said he will give up his post effective Oct. 9.

“I promised when I came here that I would give three years,” McDonald told The Chronicle. He said Oct. 9 is his three-year anniversary with the agency.

McDonald said he is proud of his accomplishments and those of his operations team during his tenure, citing improvements in on-time performance, vehicle availability, safety and training. The number of missed runs is down and discipline for problem operators has been toughened.

“We have done an excellent job in improving operations,” he said.

McDonald would not say whether the recent accidents, in particular a collision between two Metro trains at the West Portal Station July 18 in which nearly 50 people were injured, played into his decision to leave.

The resignation was in the works prior Monday evening’s crash in the Castro District that involved two historic streetcars and an SVU, according to several city officials.

Nathaniel Ford, Muni’s executive director, praised McDonald and downplayed any suggestion that his top operations manager was being forced out. Ford steered clear of laying blame on McDonald for the recent collisions, or two others last year involving rail vehicles that sent several people to the hospital.

In the July 18 incident, local, state and federal investigators are looking at why the operator of the Metro streetcar that slammed into another one turned off the automatic train control system prior to the collision, an apparent violation of Muni policy. The driver told investigators he blacked out before the crash.

In Monday night’s incident, it appears that another Muni rule was violated when a historic streetcar collided with an SUV, which then plowed into another historic streetcar on the F-line. Muni policy calls for streetcars to travel at least 250 feet apart. The crash near Market and Noe streets injured six people, none seriously, officials said.

Click here to read the entire article.

Big Ed, the ‘New GM’ Board Chair, says “I don’t know anything about cars”; Vows to ‘Learn About Cars’ on the job

June 10, 2009 at 2:22 pm

(Source: Bloomberg)

Edward E. Whitacre Jr. built AT&T Inc. into the biggest U.S. provider of telephone service over a 43-year-career. By his own admission, he becomes chairman of General Motors Corp. knowing nothing about the auto industry.

The 6-foot-4-inch Texan nicknamed “Big Ed” said steering the nation’s largest automaker after bankruptcy is “a public service.” People who know him say he can meet GM’s need for the type of transformation he orchestrated at Dallas-based AT&T.

“I don’t know anything about cars,” Whitacre, 67, said yesterday in an interview after his appointment. “A business is a business, and I think I can learn about cars. I’m not that old, and I think the business principles are the same.”

Whitacre’s selection bucks more than a half-century of tradition at GM, where the only non-executives to lead the board since 1937 were interim ChairmanKent Kresa and John Smale, who held the job from 1992 through 1995. Whitacre will take the post when Detroit-based GM exits Chapter 11, perhaps by Aug. 31.

A bachelor’s degree in industrial engineering and record in shaping a “monolithic” AT&T into a diversified enterprise make Whitacre “a good choice,” said Jim Hall, principal of 2953 Analytics auto-consulting firm in Birmingham, Michigan.

“He was one of the guys who helped create a new AT&T that wasn’t so dependent on land-line phone service,” said Hall, a former GM engineer. “There’s a parallel with General Motors. GM is not now about just making cars. It’s about re-creating itself as a 21st-century car company. They have to have somebody at the top that understands they have to make a new GM.”

“Lots of conversations” followed with Steven Rattner, the Wall Street dealmaker running President Barack Obama’s car task force, said Whitacre, adding that Treasury’s message was: “We need your help. It’s a great company. You could be a lot of assistance to GM.”

Whitacre announced his retirement in 2007, leaving with compensation valued at $158.5 million, according to the Corporate Library in Portland, Maine.

GM’s directors are now working for $1 a year. The automaker plans to disclose board compensation terms when it announces the rest of the new members, said Julie Gibson, a spokeswoman.

“He started the whole telecom consolidation because he recognized that scale was going to be important,” said Jim Ellis, 66, a former general counsel at AT&T, who worked with Whitacre for about 30 years. “He had a vision to build the company, to increase the sales and the size, the efficiency.”

The ability to sustain a “global enterprise” and set clear lines of responsibility is pivotal to GM’s future, said Michael Robinet, an automotive analyst at CSM Worldwide Inc. in Northville, Michigan.

Whitacre, a resident of San Antonio, a South Texas city of 1.2 million, will set a different cultural and geographic tone at GM, said Kahan and Ellis, the former AT&T executives.  As a “man of action,” Whitacre won’t sit still, Kahan said. “He doesn’t like long meetings,” Kahan said. “He’ll be fresh air.”

Click here to read the entire article.

Flying Lesson 101: Check gas before taking off

May 29, 2009 at 6:10 pm

(Source: The Gazette via AP)

Image Courtesy: KRDO.com

A retired Air Force colonel with decades of experience as a flight instructor gave one of his students a hands-on lesson in a key principle of flying: Don’t run out of gas. Al Uhalt of Colorado Springs made a bumpy but safe landing in a field Thursday when the single-engine Aviat Husky he and a student were flying ran out of fuel near the end of a 45-minute lesson.

Neither Uhalt nor the student, 16-year-old Kyle Sundman, was injured and the plane was undamaged.

Uhalt says he’s embarrassed. Kyle’s grandfather, Jim Young, who owns the plane, was flying behind them. He says he didn’t worry because he knew Uhalt was experienced and the plane was rugged.

Job Impacts of Spending on Public Transportation: An Update – APTA study says $1B public transportation spending creates 30,000 jobs

May 4, 2009 at 6:39 pm

(Source: American Public Transportation Association via More Riders)

Many transportation industry minds are wondering what is the tangible benefits from all this investment in transit? After spending nearly one billion dollars through their public transportation agencies, what do the taxpayers stand to reap?

 According to a new report by the American Public Transportation Association, 30,000 jobs (besides better public transportation).   That comes out to one new job for every $33,333 in spending. Not bad at all, as economic development projects go.   

The study report released on April 29th shows that investing in public transportation provides jobs to the American workers who may need them the most.  Job Impacts of Spending on Public Transportation: an Update shows that two-thirds (67 percent) of the jobs created by capital investment in the public transit industry replaces lost blue-collar jobs with “green jobs” in the public transit sector.  The Economic Development Research Group prepared the study for the American Public Transportation Association (APTA). 

Overall, the study shows an investment of one billion dollars in public transportation supports and creates 30,000 jobs in a variety of sectors.  Based on these projections, the American Recovery and Reinvestment Act of 2009 (ARRA), which provides $8.4 billion for public transportation projects, will create approximately 252,000 jobs for Americans and help transit systems meet the steadily growing demand for public transit services.  APTA released the study at the U.S. House of Representatives Transportation and Infrastructure Committee hearing Recovery Act: 10-Week Progress Report for Transportation and Infrastructure Programs.

“The ultimate goal in any economic recovery plan should be to not create just any type of job, but rather to invest in and focus on areas particularly hit hard by the economic downturn,” said William W. Millar, APTA president.  “The investment in public transit not only produces green jobs but also provides for a more sustainable transportation system that will help reduce our dependence on foreign oil and lessen the transportation sector’s impact on the environment.”

The study reveals that two out of three (67 percent) of these new construction and manufacturing “green jobs” resulting from public transit capital investment typically fall in the category of Blue-Collar Semi-Skilled (59 percent) and Blue-Collar Skilled (8 percent).  These jobs include positions in manufacturing, service, repair worker, drivers, crew, ticket agents and construction. 

In addition, 33 percent of the new jobs as a result of public transit investment fall in the White-Collar Skilled (32 percent) or White Collar Semi-Skilled (1 percent) category.  These jobs include clerical, managerial and technical engineers.

Some of the key findings from this study are here:

  • The rate for federal funding of public transportation reflects a specific mix of capital investment and preventive maintenance funding as allowable by law.  Under current federal law, an estimated 30,000 jobs are supported per billion dollars of spending.

  • The national rate can vary from of 24,000 to 41,000 jobs per billion dollars of spending, depending on the spending mix.  The lower figure holds for spending on capital investments (vehicles and facilities), while the higher figure holds for spending on transit system operations. In reality, it is not logical to spend money on vehicles and not use them, nor is it logical to operate vehicles forever without any purchases of new equipment.  For these reasons, the average rate is a more meaningful number.

  • Looking across the entire $47 billion spent on public transportation in the US each year, there is an average rate of approximately 36,000 jobs per billion dollars of public transportation spending (i.e., 36 jobs per million dollars of spending).  This figure is based on the national mix of public transportation spending as of 2007.  It includes a direct effect of spending in transportation related manufacturing, construction and operations as well as orders to suppliers or by re-spending of worker income on consumer purchases.

The rate of jobs supported per billion dollars of spending will continue to change every year, as prices change and technologies evolve. 

Click here to read the entire report in HTML & to download a copy of the report in PDF format.  For those who like to stay without leaving this window, here is a read-only copy of the PDF report.

Scoopful of GM News – April 29, 2009: Idling in US & thriving in Mexico; Danger to nation; Le Miserable; Dealer deals; Ethanol love; Camaro Crap-out; 150mpg?; Volt; Saturn stories; Pontiac killer?; Looming pay cuts

April 29, 2009 at 5:50 pm

REPORT: Largest American Axle plant to idle as work shifts to Mexico…choking GM‘s demand for American Axle components (accounting for 74% of the floundering supplier’s sales). Founded in 1994, American Axle will start moving the facility’s production to Guanajuato, Mexico over the summer. More than 500 of the 700 workers at the Detroit complex will be laid off indefinitely, and only 232 of the company’s most seni…

DetNews columnist warns of the dangers of nationalizing GMGM, UAW/UnionsDetroit News columnist Daniel Howes has penned a commentary on what he believes the “mind-numbing” future could be if the White House and the United Auto Workers end up with majority control of General Motors.Howes fears that a government-and-UAW-controlled boardroom would end up an echo chamber, with both parties worried mainly ab…

Michigan Screws Up Laid-Off GM Factory Worker Unemployment, Forces Payback [Carpocalypse]…Unemployed former GM factory worker Greg Eddy has his share of problems, but thanks to Michigan’s inability to calculate unemployment benefits, he’s now also getting less money and a whopping $2,400 bill. After Eddy lost his job with GM — twice — he decided to go on unemployment while heading back to school at ITT for a degree in communications….

REPORT: GM won’t pay dealers for franchises, will buy back parts, vehicles…GMIn a special broadcast to dealers yesterday, General Motors’ sales chief, Mark LaNeve, explained that the automaker would buy back unsold new vehicles and parts from dealerships slated to be phased out by the end of 2010, but GM wouldn’t pay off dealers for their franchises.As reported earlier this week, GM plans to cut it U.S. dealerships by …

GM makes the case for testing E15 ethanol blendGM has long been a proponent of using high-level ethanol blend, E85, in motor vehicles. But, with all of the talk of putting E15 or E20 (gasoline with 15 or 20 percent ethanol blended in) into the national supply – see these earlier posts about the EPA, the Minnesota Ag Department, the Secretary of Agriculture, and the Underwriters Laboratories…

First Camaro Crap-Out Comes 40 Miles From Dealership [Chevy Camaro]Maybe worse than the first Camaro wreck is the first Chevy Camaro breakdown. This “p**sy magnet” Bumblebee-yellow Camaro lost all electrical power and coasted to a stop with a scant 40 miles on the odometer. The ecstatic new owner, a forum fan-girl by the name of BUMLB, was crushed when the car conked-out cruising through a parking lot at a leisure…

AFS Trinity brings “150 mpg” plug-in hybrids to Capitol Hill for some sweet stimulus cash…an old GM plant and build “hundreds of thousands of plug-in hybrids” that could be sold for just $8,000 more than the non-hybrid versions. Gallery: AFS Trinity Cross Country Trip with XH-150[Source: NYT]Filed under: Emerging Technologies, EV/Plug-in, Hybrid, Legislation and PolicyAFS Trinity brings “150 mpg” plug-in hybrids to Capitol Hill for s…

Chevy Volt: First Drive? [Vaporware]We’d love to drive the Chevy Volt test mule like Wired and others, but we’re pretty sure the Volt PR team is afraid of us. As well they should be. We actually have readers. [Wired]

Saturn’s death could hurt GM CAFE numbers…part of GM. One of the primary reasons that Saturn is being disposed of is poor sales. There is, however, one exception to that sales record: hybrids. So far, Saturn has accounted for about a quarter of GM‘s sales of hybrids. Saturn also had the best CAFE numbers of any GM division, thanks to the absence of any full-size body-on-frame vehicles o…

Killing Saturn Kills 25% Of GM Hybrids [Carpocalypse]…of GM hybrids. Damned if they do… [AutoNews via AutomobileMag]

The Cause of Pontiac’s Demise for $5,000! [Nice Price Or Crack Pipe]…of the GM H-body cars began with the justifiably maligned Chevrolet Vega which begat the Monza, which begat the Pontiac Astre, which begat the Pontiac Sunbird. Several body styles were offered on the 97.5 inch wheelbase, including the Ferrari 365 GTC/4- homage hatchback, a two-door wagon, and a notchback coupe. Today’s candidate hails from the n…

GM Salaried Workers to See Pay CutGeneral Motors confirmed Wednesday it will force some salaried workers to take up to three months off with partial pay as part of an effort to reduce costs during its expected summer shutdown of its car-making plants.

President Obama taps John Porcari, Secretary of the Maryland Department of Transportation, to serve as the next Deputy Secretary of the U.S. Department of Transportation.

April 13, 2009 at 1:19 pm

(Source: Washington Post & AASHTO)

Maryland Secretary of Transportation John D. Porcari has been tapped to join the Obama administration. (Photo by Post)

John Porcari, Secretary of the Maryland Department of Transportation, is President Barack Obama’s choice to become the next Deputy Secretary of the U.S. Department of Transportation.

Maryland’s secretary of transportation John D. Porcari will serve as Ray LaHood‘s deputy if confirmed by the Senate. He first served as Maryland’s transportation chief from 1999 to 2002, leading the development and construction of two high-profile transportation projects in the greater Washington region. He led the planning and start of the Intercounty Connectorbetween Montgomery and Prince Georges County, Md., and the development and funding to reconstruct the Woodrow Wilson Bridge, a critical piece of Washington’s infamous Beltway that connects Maryland with Virginia. In between two tours of duty at Maryland DOT, he served as the chief administrative and financial officer at the University of Maryland.

AASHTO Presser offer the following on Mr. Porcari’s nomination: “John Porcari brings tremendous talent and experience to this extremely important and influential Administration position,” said AASHTO Executive Director John Horsley. “Under Secretary Porcari’s leadership, the Maryland DOT has led the way in community sensitive design and smart growth strategies that have improved the quality of life for Marylanders. He was also instrumental in the development of the new Woodrow Wilson Bridge, a $2.4 billion megaproject which was not only delivered on time and on budget; it broke new ground in environmental, contracting, and management innovation. We commend President Obama for this outstanding nomination and look forward to working with Mr. Porcari, once he is confirmed.”

In his current position, Mr. Porcari is responsible for motor vehicle registration and the highway, transit, aviation, and maritime modes of the state’s transportation system. Mr. Porcari also serves as chairman of the entity responsible for operating the state’s bridge and tunnel facilities. He’s in his second tour as Secretary, having previously served in this capacity from 1999 to 2002.

USDOT Publishes Report on Key Transportation Indicators for March 2009

April 13, 2009 at 11:21 am

(Source: Bureau of Transportation Statistics (BTS) of the U.S. Department of Transportation)

This report is intended to provide timely, easily accessible information for the transportation community. It was developed by the Bureau of Transportation Statistics (BTS) of the U.S. Department of Transportation (DOT), and is updated on a regular basis on the BTS website.

The indicators fall under two broad categories: those that provide context about the economy and society in which transportation functions, and those that convey information about an aspect of transportation. To the extent possible, these latter indicators are transportation-wide in scope; however, some apply to only part of the transportation system. Reference tables at the beginning of the document provide key statistics about U.S. social and economic characteristics, and about the extent of the transportation system.

For indicators that are highly seasonal, the current value of that indicator is compared to the same time period in the previous year (e.g., April 2001 compared to April 2000). Otherwise, the tables show a comparison of the current value to a comparable preceeding period of time (e.g., the data for the month of April 2001 compared to that of March 2001).

 Click here to read the report in HTML.

Careers: Transportation for America needs you – Deputy Communications Director & Policy Director

April 9, 2009 at 11:28 pm

Now Hiring: Deputy Communications DirectorTransportation for America seeks an experienced, energetic communications professional to help manage the communications activities of a dynamic, fast-paced campaign to reform the nation’s transportation spending and policies.

Now Hiring: Policy Director

The Transportation for America Campaign is looking for a highly-skilled individual with extensive knowledge and interest in federal transportation policy to serve as Policy Director for this national advocacy campaign.

 To learn more about the organization and to explore other currently open positions visit http://t4america.org

Epitome of Customer Service! Amtrak Employees Undertake Daring Rescue Mission For Lost iPhone

April 9, 2009 at 2:05 pm

(Source:  Infrastructurist)

Image: Nostri-imago@ flickr

So, the absent minded editor of a certain infrastructure news site recently had an adventure in losing things on Amtrak trains. The experience was revealing and – spoiler alert – the much-slagged government owned and operated rail line acquitted themselves beautifully on matters of beyond-the-call-of-duty customer service.

 For simplicity’s sake, let’s just call this editor “I.” Anyway, I was headed from Washington DC to New York on the 11 a.m. Acela. When the train reached Penn Station (on time), I gathered the various bags and coats I’d brought and exited the train. Not among the gathered possession was an iPhone, which was left unattended on the seat. I realized this as I was about to catch the subway home to Brooklyn, by which time the Acela had already scooted off for Boston.At this point the situation looked glum. It remained so through the course of the first conversation I had with an Amtrak employee. The gentleman, white haired and in his 50s, gave the classic bureaucrat’s shrug. “You gotta call lost and found in Boston,” he said. Shrug.

“Are they open today? Will they be open when the train arrives?” I asked. It was Sunday.

“They’re closed today,” he said. Shrug.

I gave him a pleading look. He shrugged again and turned away.

So even if some heroic individual wanted to return the device, it would take a return visit to the train station in Boston to actually be able to turn it in – assuming, say, she didn’t get off the train in Stamford or Providence or…

I went to the Customer Service office. There, a genial woman named Karen became my new best friend. She immediately began coordinating a multi-city search and rescue operation. Before I even finished explaining the situation, she was on the phone with an agent in New Haven to make arrangements for someone to dash onto the train and look for the device during the brief stopover there. She called the lost phone about a dozen times in hopes that someone would answer. At some point, a man did answer. His name was Mark and he was a conductor on the train. He promised that he would get the phone back to New York safely that evening. Karen’s liaison in New Haven organized a complicated hot handoff across the platform between Mark and a conductor southbound train. About four hours after I’d got off the train without, an Amtrak conductor walked up to me in Penn Station with a sealed envelope containing the lost phone. It was carefully bubble-wrapped. 

Click here to read the entire article.  
TransportGooru appreciates the sincere attempts of Karen and her staff at Amtrak to reunite one of our “infrastructurists” with his iPhone . Kudos to Amtrak for a job well done!