President Donald Trump's proposal to privatise US air traffic control won the backing of major US airlines, but drew criticism from other groups concerned smaller airlines and private companies would lose airport access. Privatization advocates argue that spinning off air traffic control from the FAA would increase efficiency and reduce costs, in part by avoiding the government procurement process. Opponents say the US system, which handles 50,000 flights a day, is so large that privatization would not cut costs, drive up ticket costs and potentially create national security risks. There also are concerns airlines would dominate the private-company board and limit access to airports by business jets. Airlines for America, the industry trade organization representing American Airlines, United Continental, Southwest and others, praised the proposal. "This is a bold step that will lead to the governance and funding reforms needed to move our air traffic control infrastructure into the 21st century," said the group's CEO Nicholas Calio. National Business Aviation Association CEO Ed Bolen said the group strongly opposes the proposal, arguing airlines would essentially take run the board. "Small and mid-size towns that rely on access to general aviation for everything from civil services, to emergency support, to business access and more, could have their access to airports and airspace threatened," Bolen said. The FAA said in a statement that it welcomes a discussion about the best way to deliver and modernize air traffic services.<br/>
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President Donald Trump called Thursday for eliminating subsidized air service to rural communities, many of which supported his election last year after he promised to create jobs. Trump's proposal, part of his budget plan, would sever an economic lifeline that enables rural communities to attract and keep businesses and jobs, officials in those communities said. The program has long been a target of conservatives who say the subsidies are too expensive for the relatively small number of passengers served. Elimination of the program would save about $175 million a year, according to the Trump administration. "We do appreciate running government as efficiently as possible, those are our values ... (but) I would argue that this program is vital for rural America," said Laurie Gill, the Republican mayor of Pierre, South Dakota. Trump's budget proposal cuts many domestic programs as the administration looks for money to increase the military, border control and veterans services while not expanding the deficit. The proposal is an early step in a lengthy budget process and it's not clear to what degree Congress will back his priorities. The Essential Air Service program subsidizes airline flights to 111 communities in the 48 contiguous states that would otherwise have no scheduled service and which are at least 210 miles from the nearest hub airport, according to the Transportation Department. Trump got more than 50 percent of the vote in 86 of those communities. Without the subsidies, airlines would no longer service their communities, local officials said. In Pierre, that means people who live in the state capital would have to drive more than three hours to reach the nearest airport with scheduled flights, Gill said. The program was created nearly 40 years ago to ensure air service to rural communities after the airlines were de-regulated and cut back less profitable routes.<br/>
A $2.7 billion modernization project at the Honolulu airport has been going on for years and shows no signs of wrapping up soon. Honolulu International Airport officials said the renovations are about two-thirds complete in terms of time, though they're only about halfway through with construction work. Officials predicted another four to five years of work. The Department of Transportation said the project is on time and on budget. However, some businesses are still complaining about all the construction. The slow pace of the project is not normal and not good for business, according to Hawaiian Airlines CEO Mark Dunkerley. "Other communities have found ways to update its infrastructure in a fraction of the time," he said. DOT officials said they realize Dunkerley and others are frustrated, but that a lot of work has actually been completed.<br/>
Airbus's legal entanglements deepened on Thursday when French authorities opened a preliminary investigation into suspected irregularities over the use of third-party agents to win jetliner contracts, expanding a UK corruption probe. The European planemaker said Thursday it had been informed that France's financial prosecutor, or Parquet National Financier, had teamed up with Britain's Serious Fraud Office, which is investigating suspected fraud, bribery and corruption. "Airbus has now been informed ... that the two authorities will act in coordination going forward," the aerospace group said. "Airbus will cooperate fully with both authorities." The decision by the French and UK investigators to cooperate in their probes is unusual. It could provide a high-profile test of a 2016 anti-graft law which introduces for the first time into France the possibility of a "deferred prosecution agreement," a type of settlement often favoured in corruption probes and already used on occasion by Britain's SFO.<br/>
Brazil awarded three European groups Thursday the rights to operate four airports, drawing nearly double the minimum bids at an auction that underscored investors' appetite for a new wave of privatizations under President Michel Temer. German airport operator Fraport, French group Vinci and Zurich Airport bid a combined 1.46b reais ($470m) for the rights to run airports in Porto Alegre, Salvador, Fortaleza and Florianopolis. The companies committed to investing at least 6.61b reais in the airports and to paying the government an additional 2.26b reais in operating fees over the next 30 years. The privatizations will help Temer's government to narrow a budget deficit that topped 9 percent of gross domestic product last year and to spur the infrastructure investments that he is counting on to lift Brazil's economy from its worst recession in more than a century.<br/>
An Aviation Security Services dog was shot dead by police after it was spooked and escaped its handler at Auckland International Airport Friday, causing runway delays. Police shot the dog, named Grizz, at the direction of Auckland Airport staff. "Auckland Airport staff directed police to shoot the Avsec dog, which was loose at the airport this morning," said Inspector Tracy Phillips. "This followed considerable efforts over several hours by Avsec and airport staff to contain the dog after it was first reported to be loose at 4am. "This is not an outcome anyone wanted, and police were only asked to be involved as a last resort." A source said police staff and Grizz's handler are "absolutely devastated". Richards said Avsec will now "try and ascertain what spooked the dog and if this has any implications for ongoing training". It is understood 16 domestic and international flights were delayed as ground staff tried to catch the animal after it broke away from its handler about 4am.<br/>