FAA charges follow Atlas Air’s strong Q1 profit

FAA charges follow Atlas AirÆs strong Q1 profit    The Federal Aviation Administration has charged all-cargo airline Atlas Air Inc. with two safety violations and recommended fines totaling $572,000.
      The agency said Atlas incorrectly replaced a cockpit window on a Boeing 747-400 freighter without following manufacturer or FAA approved guidelines and then operated 49 flights in April 2009 during which the window suffered pressurization leaks. The FAA has proposed a penalty of $506,150 for the violations.
   In a second instance, the FAA alleged Atlas operated a 747 without a required outboard engine pylon access door panel. It said Atlas improperly fabricated a panel cover from aluminum sheet metal and held it on with tape. The panel came off on several flights in May 2009 and a new panel was similarly cobbled together and installed in the same manner. The FAA proposed a fine of $66,000 for those violations.
   Atlas, which operates the largest fleet of 747 freighters in the world, has 30 days to respond to the FAA's enforcement letter.
   Last week, Atlas reported record first quarter net income of $33.8 million, up 44.5 percent from the previous record of $23.4 million in the January-March period in 2009, on the strength of growing commercial and military demand for air cargo service, tight capacity, and strong charter rates.
   Atlas achieved $295.2 million in revenue. Pre-tax earnings of $53.9 million included $1.2 million from the disposal of aircraft as well as an $8.8 million legal settlement.
   Atlas' core business involves outsourced flying for international airlines, which contract for aircraft, crew, maintenance and insurance. It also provides charter operations and provides airlift for the U.S. military.
   'Our ACMI customers continued to fly above their minimum contractual block-hour guarantees during the first quarter, which traditionally is a period when most ACMI customers fly below their minimum guarantees,' said William J. Flynn, chief executive officer. 'In addition, AMC Charter demand remained strong due to the increase in U.S. military activity in Afghanistan. We have also seen an improvement in AMC charter yields with the deployment of our 747-400 aircraft to meet this demand, particularly in connection with the movement of M-ATV vehicles. Commercial charter rates also strengthened considerably compared with the first quarter of 2009, reflecting a tight supply of widebody freighter aircraft amid an expanding demand for airfreight capacity.'
   In March, Atlas' Titan Aviation Leasing business acquired a Boeing 757-200 freighter and leased it to a Chinese airline for five years, Atlas said. ' Eric Kulisch