commercial aircraft

  • Tracey Cheek posted an article
    FAA Plans To Modernize Its Outdated Civil Aviation Registry Systems, but Key Decisions and Challenge see more

    FAA plans to modernize its outdated Civil Aviation Registry Systems, but key decisions and challenges remain.

    Requested by the Chairman of the House Transportation and Infrastructure Committee and its Subcommittee on Aviation and the Chairman of the Senate Committee on Commerce, Science, and Transportation

    Federal Aviation Administration | AV2019052 | May 8, 2019

    What We Looked At

    The Civil Aviation Registry (The Registry) processes and maintains ownership information on approximately 300,000 private and commercial aircraft and records on almost 1.5 million airmen. The Registry is critical for ensuring aircraft are legally owned, maintained, and operated, and many users in law enforcement, safety, the aviation industry, and the public rely on the accuracy and timeliness of its data. The Chairman of the House Transportation and Infrastructure Committee and its Subcommittee on Aviation requested that we assess FAA’s overall management of the Registry and public access to certain Registry elements. We received a similar request from the Chairman of the Senate Committee on Commerce, Science, and Transportation. Our audit objective was to assess FAA’s management of the Civil Aviation Registry. Specifically, we assessed FAA’s

    (1) progress in modernizing the Registry and (2) policies for providing public access to Registry-related activities.

    What We Found

    The Registry’s systems are outdated, and FAA has yet to develop a detailed plan for modernization. The Registry’s current systems cannot support online access outside of the Registry’s offices in Oklahoma City, OK. While FAA is in the early stages of developing plans to modernize the Registry’s systems, the Agency has not yet made key decisions regarding the system. Consequently, the cost and timeframes for Registry modernization remain uncertain, even though FAA is mandated to complete Registry upgrades by October 2021. In addition, the regulations that govern aircraft registration do not reflect current technology or business practices, and FAA will likely need to conduct a rulemaking in conjunction with Registry modernization. If FAA does not complete the rulemaking in coordination with the development of the new system, the Agency risks spending resources on a system that lacks key capabilities.

    Due to the current system’s limitations, users who need to access aircraft registration information in real time must access the system through the use of Government-owned computer terminals located at the Registry’s Public Documents Room (PDR) in Oklahoma City. For users who cannot or do not want to travel to Oklahoma City, they can obtain aircraft information online, but that information is updated once a day, rather than in real time. Moving towards a more efficient process hinges on modernizing the Registry, but FAA has not yet developed a plan for allowing real-time access to aircraft information.

    Our Recommendations

    FAA concurred with all four of our recommendations and proposed appropriate actions and completion dates.


    All OIG audit reports are available on our website at www.oig.dot.gov.
    For inquiries about this report, please contact our Office of Congressional and External Affairs at (202) 366-8751.

    Click here to read the full report.

    This report was originally published by the U.S. Department of Transportation, Office of the Inspector General on May 8, 2019.

     

     

  • Tracey Cheek posted an article
    Boeing, Embraer Agree To Terms on Commercial JV, Propose Second JV for KC-390 see more

    Boeing and Embraer have approved the terms of a strategic partnership that will give Boeing an 80 percent stake in Embraer’s commercial aircraft and services operations through a joint venture, the companies announced through a joint press release today.

    Boeing said it will pay $4.2 billion, up from $3.8 billion, for the ownership stake in the JV, which still requires approval by the Brazilian government.

    “We are confident that this partnership will deliver great value to Brazil and the Brazilian aerospace industry as a whole,” said Embraer president and chief executive officer Paulo Cesar de Souza e Silva. “This alliance will strengthen both companies in the global market and is aligned with our long-term sustainable growth strategy.” 

    Under the agreement that values the JV at $5.25 billion—up from $4.75 billion when the JV was proposed through a memorandum of understanding on July 5, according to analysts at Bank of America Merrill Lynch—the JV will be led by management based in Brazil, including a president and chief executive officer. Boeing said it will have operational and management control of the “new company” that will report to Boeing chairman and CEO Dennis Muilenburg.

    “Boeing and Embraer know each other well through more than two decades of collaboration, and the respect we have for each other and the value we see in this partnership has only increased since we announced our joint efforts earlier this year,” Muilenburg said.

    Embraer will have consent rights for certain strategic decisions such as transferring operations from Brazil, the companies said.

    Boeing said the proposed JV is expected to be neutral to its earnings per share in 2020 but accretive thereafter.

    Embraer and Boeing also said they have agreed to terms of another JV to promote and develop new markets for Embraer’s KC-390, a multi-mission, medium-lift airplane. Terms of that JV call for 51 percent ownership by Embraer and 49 percent by Boeing.

    The companies hope to close the commercial JV transaction by the end of 2019, which awaits approval from Brazil’s government, Embraer’s board of directors as well as shareholders and regulators.

    The announcement comes days after a Brazilian appeals court overturned a December 5 ruling by a federal judge in São Paulo granting an injunction to block Embraer’s board of directors from approving the proposed deal.

    This article was originally published on AINonline on December 17, 2018 by Jerry Siebenmark.