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Airline Woes: Bankruptcies and New Engine Icing Problem

'Flame-outs' on wide-body aircraft an unexpected hazard

By Mark Huffman
ConsumerAffairs.com

April 7, 2008

SkyBus late last week became the third U.S. airline within seven days to declare bankruptcy and go out of business, and today, the Federal Aviation Administration (FAA) is expected to propose new safety rules that would eventually apply to about 1,200 widebody jetliners thought to be prone to engine icing.

There've been at least 14 instances of jet engines shutting down suddenly since 2002. Researchers say ice can form inside the engines under certain conditions, leading to unexpected and potentially disastrous shut-downs, known as "flame-outs."

The new rule will require pilots to turn on engine de-icers more frequently. Additional procedures may be ordered in the future.

Bankruptcies

Financial flame-outs are an increasingly prevalnet problem. ATA and Aloha airlines also announced they were ending operations last week.

While SkyBus had been in existence less than a year, the two other decedents were long-established carriers. ATA had been in operation for 35 years, Aloha for 60 years. In all three cases, soaring fuel costs were sited as a reason for their demise.

Aloha filed for bankruptcy April 1 after saying it could not find a buyer or a lender willing to provide the financing it required to keep flying. ATA, based in Indianapolis, and a major partner of Southwest Airlines, folded April 2. Besides fuel costs, it cited the loss of a major military contract.

Skybus apparently got hit with a triple whammy; not only is it hard to launch a new business past the first year of operation, it had to contend with rising jet fuel costs and a slowing economy. It was a fairly small airline, serving just 15 cities.

Rising fuel pose a significant problem for all airlines. According to the International Air Transport Association, the cost of jet fuel is up more than 60 percent in the last year.

For consumers, the result is likely to be chaotic, especially heading into the already crowded summer travel season. The loss is also significant because all three airlines served mostly smaller, secondary airports that are not served by the major carriers.

With a number of consumers scrambling to salvage their spring Hawaii vacations, Aloha pilots have offered to transport stranded Mainland-bound and Merrie Monarch passengers and reiterated their standing offers to help Aloha Airlines continue its cargo operation until a buyer can be found and approved.

"We are going to keep trying to help our community and our company during this difficult shut-down process," said David Bird, Aloha MEC Chairman, "It is ridiculous that there are stranded passengers in Hilo trying to get home from the Merrie Monarch Festival while idle aircraft sit empty on the ramp with pilots available and willing to fly."

The pilots union says the airline "responded negatively" to the offer.

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