Another Tuesday and another IFExpress. Be sure to check out the story about the B52 Midnight Express restoration (image above) at the end of this week’s Hot Topic.

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Aircraft Interiors Exposition – Boston

Aircraft Interiors Expo, Boston (AIX, Boston), the fall’s only meeting place for the passenger experience industry, will this year take place at the Boston Convention and Exhibition Centre from 25 – 27 September. Organized by Reed Exhibitions, it is the sister event to AIX Hamburg.

The world-leading event is strategically co-located with Airlines Passenger Experience Expo (APEX EXPO) and International Flight Services Association Expo (IFSA EXPO), enabling airlines and companies from across the supply chain to meet and network.

New to AIX, Boston this year is CabinSpace LIVE Seminar Theatre – the educational sessions which are a popular and firmly established part of its sister show in Hamburg each spring. Sessions will run throughout the first two days of AIX, Boston and provide attendees and exhibitors an arena to learn, network and seek inspiration on pressing industry issues.

More than 220 exhibiting companies are already confirmed to attend the co-located events in Boston in September, showcasing their products and innovations to an expected audience of 5,000 + visitors and 280 airline VIPs from 63 global airlines.

Amongst them are 12 first time exhibitors including Bose Corporation, Meggitt PLC, SynQor Inc and Tajima America Corp, who will join longstanding brands across all three events including Acro Aircraft Seating, Boeing, Diehl Aviation, E Leather, gategroup, Panasonic Avionics, STS Aviation Group, San Diego Aircraft interiors, and Tapis Corporation.

Verity Newton, Exhibition Manager at Reed Exhibitions, comments: “Over the past nine years, AIX has firmly established itself as the leading fall event for the global aircraft interiors industry to gather and discuss the trends shaping the industry.

“This year we are delighted to be welcoming new exhibiting companies who will continue to showcase the evolving spectrum of aircraft interiors products that are shaping the passenger experience.

“Bringing this to life, and providing a forum for open discussion and innovation, we are sure that CabinSpace LIVE Seminar Theatre will be a popular addition to the show and look forward to unveiling the speaker line-up in the coming weeks.”

Each fall, the location of AIX changes to refresh the industry’s perspective and reach an extensive audience of key industry decision makers from around the world. It showcases a wide range of cabin interiors products including; seating, galleys, lighting, lavatories, cabin management system, soft furnishings and passenger services.

Boston is the capital of the state of Massachusetts and its largest city. Founded in 1630, it’s also one of the oldest cities in the U.S. Today, the city is home to around 600,000 people and welcomes over 20 million visitors every year, drawn by attractions such as the Freedom Trail, Faneuil Hall, Boston Common and neighboring Harvard.

AIX Americas is the sister event of the Aircraft Interiors Expo which takes place every April in Hamburg, Germany.

With a special category for integrated digital innovations in the field of air travel, the Crystal Cabin Award, the world’s leading prize for aircraft interiors and on-board products, is extending its scope. The new category “Best Customer Journey Experience” is aimed both at passenger-focused products such as smartphone apps relating to air travel, and at digital applications that improve product management for airlines. Entries can be lodged online at https://connect.apex.aero/page/apexawards until the end of July.

The new category is running outside the normal entry phase for the Crystal Cabin Award. It will be presented on 24 September together with the APEX Awards at the APEX EXPO and Aircraft Interiors Expo Americas events in Boston, Massachusetts. The application phase for the other eight categories, traditionally awarded every April at the Aircraft Interiors Expo in Hamburg, will then begin.

“Best Customer Journey Experience” comprises all products that help to improve the customer experience journey (inspiration, planning, booking, purchase, pre-trip, departure, in-flight and post-trip) across airline travel categories. It includes technical end-to-end solutions across categories including applications, artificial intelligence, tools, devices, software, programs etc. The product should offer benefits for airlines, OEMs, and/or suppliers by offering new digital solutions and specific insights about passengers experience for the benefit of on-board technical utilization. The finalists and award winner will provide airlines and their suppliers an inspirational example on how to optimize the cabin for end-to-end travel solutions centered around personalized passenger experience.

This special category complements the existing eight categories awarded each year in Hamburg for the Crystal Cabin Awards: „Cabin Concepts“, „Cabin Systems“, “Greener Cabin, Health, Safety and Environment”, “Inflight Entertainment & Connectivity”, “Material and Components”, “Passenger Comfort Hardware”, “University” and “Visionary Concepts”. Winners of the 2018 season included renowned industry players such as Airbus and Altran, Rockwell Collins, and PriestmanGoode with Qatar Airways.

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INMARSAT

The potential bidding war for satellite company Inmarsat took an interesting turn. Eutelsat had initially thrown its hat into the ring as a suitor but made a rapid about-turn. Inmarsat’s stock spun, too, sinking by 12%.

What Does This Mean?

Inmarsat provides phone and wireless data services – like 4G – to people via satellites around the world. France’s Eutelsat does the same thing and is the third largest global operator of its kind.

The proverbial bidding war came about after American company Echostar said it had amassed a 3% stake in Inmarsat on Friday (its offer to buy the company earlier in June was rebuffed). Eutelsat then said it was considering an offer, too – but decided against it after pressure to make a firm decision from the UK’s takeover regulator.

Why Should I Care?

For markets: Inmarsat’s stock could be in for a bumpy ride.
Inmarsat’s shares soared with the news of Echostar’s initial bid – and the prospect of a counter bid – but they’re now in decline. The UK’s takeover laws mean this rollercoaster ride could last a bit longer, since Eutelsat now can’t put in a bid for Inmarsat of any kind unless a formal offer is made by someone else. Echostar has to submit a final bid within a month or it’ll be tapped out by regulators.

The bigger picture: Land grabbing and cost “synergies” make M&A likely.
In an industry with slowing growth opportunities, bundling revenues together – and streamlining costs that may have otherwise been duplicated (a.k.a. generating synergies) – is a tidy way for satellite companies to increase profits. Bidding wars among giants for the smaller companies could be an ongoing trend for the industry.

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SITA

SITA invites airline industry stakeholders to join international Blockchain research project. SITA announced the launch of a major industry research project to explore the potential of blockchain. More than 100 top IT executives, attending SITA’s Customer Innovation Forum, were the first to be invited to join the Aviation Blockchain Sandbox.

SITA is investing in the infrastructure to accelerate industry-specific research into the viability of running multi-enterprise apps using distributed ledger technology, more commonly known as blockchain. The company is welcoming interested industry players to use the Aviation Blockchain Sandbox at no cost to them.

Barbara Dalibard, CEO, SITA, said: “Today we are inviting air transport organizations to work together so that we can collectively see how blockchain could work across our industry. Blockchain holds many promises but exploring these in individual organizations is not the most productive. As the technology company owned by airlines, SITA is in a position to work neutrally with multiple stakeholders to explore and test multi-enterprise applications. Through this collaborative innovation we will accelerate the learning for all.”

The airline industry has a long history of sharing information across multiple stakeholders to increase efficiency. At times, however, it faces difficulties when proprietary business information needs to be extracted or multiple data sources conflict. One of the key benefits of blockchain technology is the ability to have multi-enterprise applications. These work across multiple organizations locking data immutably into the blockchain rather than having individual applications running separately and exchanging data on a case-by-case basis. This is how this technology can provide a ‘single source of truth’ to all stakeholders.

The Aviation Blockchain Sandbox will be led and managed by SITA Lab, SITA’s technology research team, and will develop in three stages. To start, SITA is opening the FlightChain project to airlines and airports in September. FlightChain was SITA’s blockchain trial, with British Airways, Heathrow, Geneva Airport and Miami International Airport, using smart contracts for shared control of data. It stored flight information on the blockchain to provide a single source of truth. Now SITA is making it easy for other airlines and airports to join this research and test FlightChain for their own use.

For the second stage of this collaborative innovation, SITA will work with organizations that wish to test smart contracts across a number of airline and airport operational use cases. During the third stage of the research, which is expected to start in late 2018, SITA will enable participants to run their own node. This will give the organizations the opportunity to become more involved and to participate in the running of the network, including becoming custodians. Throughout all stages the participating organizations can be assured that the data being used in the blockchain sandbox will be stored confidentially.

Dalibard concluded: “Since we published the results of the FlightChain research, many of our airline and airport customers have expressed an interest in exploring the opportunities of blockchain with us and some have already committed to the Aviation Blockchain Sandbox. We encourage airlines, airports, ground handlers, governments and other organizations with a role in the air transport industry to take advantage of this opportunity to innovate together.”

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AIRBUS

The closing of the previously announced C Series transaction between Airbus SAS, Bombardier Inc. and Investissement Québec came into effect on July 1, 2018. Airbus now owns a 50.01% majority stake in C Series Aircraft Limited Partnership, while Bombardier and Investissement Québec own approximately 34% and 16% respectively. CSALP’s head office, primary assembly line and related functions are based in Mirabel, Québec.

Further, Airbus has announced orders for 10 A350-900 and 10 A330neo’s to undisclosed buyers.

The world’s passenger fleet will more than double to 48,000 aircraft in 20 years with traffic growing at a resilient 4.4% per year, driving a need for 37,390 new passenger and freighter aircraft according to Airbus’ new Global Market Forecast 2018-2037. Growth drivers include private consumption increasing 2.4 times in emerging economies, higher disposable incomes and a near doubling of the middle classes globally. Emerging countries will account for over 60% of economic growth, with trips per capita to multiply 2.5 times for these nations. Combined with evolving airline business models and continuing liberalization, the growing scale of air transportation will lead to an increasing resilience to regional slowdowns. Greater aircraft range and capacity through technological developments allow airlines the flexibility to explore new business opportunities whilst maintaining focus on cost reduction. Of the 37,390 new aircraft required, 26,540 are for growth and 10,850 will replace older generation less fuel efficient aircraft. The more than doubling in the world fleet to 48,000 aircraft results in a need for 540,000 new pilots. Airbus continues to evolve its service business to meet the needs of its growing customer base.

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BOEING

Boeing & Ethiopian Airlines

Boeing and Ethiopian Airlines celebrated the delivery of the first of 30 737 MAX jets for Africa’s largest and fastest-growing commercial airline.

The flag carrier of Ethiopia has long operated the efficient and reliable Boeing 737 airplane. With the MAX, Ethiopian will be able to achieve a double-digit improvement in fuel efficiency and provide passengers with a more comfortable experience.

“We are glad to include the Boeing 737 MAX 8, the latest in Boeing’s single-aisle series, in our young and modern fleet of over 100 aircraft with an average age of less than five years,” said Ethiopian Airlines Group CEO Mr. Tewolde GebreMariam. “The Boeing 737 MAX 8 features the new Boeing sky interior, highlighted by modern sculpted sidewalls and window reveals, LED lighting that enhance the sense of spaciousness ultimately boosting our customers’ experience. Since it is more fuel efficient than the current 737-NG, it has less carbon emission to the environment. As a customer-centric airline with a high adaptability to emerging technologies, Ethiopian has been pioneering latest-technology aircraft into Africa throughout its 72-year history. In line with the airline’s growth targets under Vision 2025, we will keep on investing in further expansion of our fleet in acquiring the latest aircraft the industry has to offer.”

The 737 MAX is the fastest-selling airplane in Boeing history, accumulating more than 4,500 orders to date from 99 customers worldwide.

The 737 MAX families incorporates the latest technology CFM International LEAP-1B engines, Advanced Technology winglets, the Boeing Sky Interior, large flight deck displays, and other improvements to deliver the highest efficiency, reliability and passenger comfort in the single-aisle market.

In Ethiopian’s configuration, its 737 MAX 8 will seat 160 passengers.

“Ethiopian Airlines continues to fly at the forefront of Africa’s commercial aviation industry by operating the most advanced airplanes,” said Marty Bentrott, Boeing Sales vice president for Middle East, Turkey, Russia, Central Asia & Africa. “We are honored by Ethiopian’s continuing confidence in Boeing airplanes and we look forward to growing our five-decade long partnership.”

With this delivery, Ethiopian’s fleet of Boeing airplanes grows to 73 jets, including the 787 Dreamliner, 777, 737 MAX, and the 757 and 767.

Boeing & Embraer

Boeing and Embraer announced they have signed a Memorandum of Understanding to establish a strategic partnership that positions both companies to accelerate growth in global aerospace markets.

The non-binding agreement proposes the formation of a joint venture comprising the commercial aircraft and services business of Embraer that would strategically align with Boeing’s commercial development, production, marketing and lifecycle services operations. Under the terms of the agreement, Boeing will hold an 80 percent ownership stake in the joint venture and Embraer will own the remaining 20 percent stake. The transaction values 100 percent of Embraer’s commercial aircraft operations at $4.75 billion, and contemplates a value of $3.8 billion for Boeing’s 80 percent ownership stake in the joint venture. The proposed partnership is expected to be accretive to Boeing’s earnings per share beginning in 2020 and to generate estimated annual pre-tax cost synergies of approximately $150 million by year three.

The strategic partnership will bring together more than 150 years of combined leadership in aerospace and leverage the two companies’ highly complementary commercial product lines. The partnership is a natural evolution of a long-standing history of collaboration between Boeing and Embraer over more than 20 years.

On finalization, the commercial aviation joint venture will be led by Brazil-based management, including a President and Chief Executive Officer. Boeing will have operational and management control of the new company, which will report directly to Muilenburg.

The joint venture will become one of Boeing’s centers of excellence for end-to-end design, manufacturing, and support of commercial passenger aircraft, and will be fully integrated into Boeing’s broader production and supply chain.

Boeing and the joint venture would be positioned to offer a comprehensive, highly complementary commercial airplane portfolio that ranges from 70 seats to more than 450 seats and freighters, offering best-in-class products and services to better serve the global customer base.

In addition, both companies will create another joint venture to promote and develop new markets and applications for defense products and services, especially the KC-390 multi-mission aircraft, based on jointly-identified opportunities. Finalization of the financial and operational details of the strategic partnership and negotiation of definitive transaction agreements are expected to continue in the coming months. Upon execution of these agreements, the transaction would then be subject to shareholder and regulatory approvals, including approval from the Government of Brazil, as well as other customary closing conditions. Assuming the approvals are received in a timely manner, the transaction is expected to close by the end of 2019, 12-18 months after execution of the definitive agreements.

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OTHER NEWS

• AIRBUS completed its A350 XWB World Tour – Airbus A350 XWB completes its Route Proving World Tour
• Bob Bogash reports the B-52 Number 2584 Midnight Express was reassembled at Boeing Field in Seattle, and you can see the reassembly here. Also note that it will be moved to it’s memorial site in the Fall. – Reassembling the B-52 Midnight Express