Alaska Airlines Becomes First U.S. Airline to Launch Electronic Bag Tag Program

Alaska Airlines announced on Tuesday it’s poised to become the first U.S. airline to launch an electronic bag tag program later this year.

“This technology allows our guests to tag their own bags in just seconds and makes the entire check-in process almost all off-airport,” said Charu Jain, senior vice-president of merchandising and innovation for Alaska Airlines. “Not only will travelers with the devices be able to quickly drop-off their luggage, our electronic bag tags will help also reduce lines in our lobbies and give our employees the opportunity to spend more one-on-one time with guests who ask for assistance.”

The electronic bag tags will allow guests to skip the step of printing traditional bag tags upon arrival at the airport. Instead, guests will be able to activate the devices from anywhere — their home, office or car – up to 24-hours before their flight using the Alaska Airlines mobile app.

The activation is done by simply touching the phone used for check-in to the electronic bag tag, which has an antenna that powers and reads the information transmitted from the phone. The e-paper bag tag’s screen will then display the guest’s flight information.

Jain expects Alaska Airline’s electronic bag tag will reduce the time guests spend dropping-off checked luggage by 40%. For example, a guest flying through Alaska Airline’s tech hub at Norman Y. Mineta San Jose International Airport, could drop off their luggage at the self-bag drop in three minutes or less.

“Alaska Airlines is the first U.S. airline to pioneer this innovative electronic bag tag program here at SJC,” said San José Mayor Sam Liccardo. “This program will modernize the check-in process and provide a more sustainable option for travelers.”

“Our electronic bag tags will not require batteries and are durable enough to potentially last a lifetime,” said Jain.

Rollout of the electronic bag tags will happen in several phases. The first phase will initially include 2,500 Alaska Airlines’ frequent fliers who will begin using the electronic bag tags in late 2022. Mileage Plan members will have the option to purchase the devices starting in early 2023.

Alaska Airlines is partnering with Dutch company BAGTAG on the electronic bag tag. The devices are equipped with durable screens that have been tested to withstand being run over a luggage cart and are affixed to baggage just like any other bag tag, using an industrial strength plastic zip tie.

“We are very proud to announce the first American carrier adopting our EBT solutions,” said BAGTAG managing director Jasper Quak. “Alaska Airlines’ relentless efforts to make their passenger journey a true 21^st-century experience makes us very confident in a successful rollout among their guests.”

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Farnborough Update:

777 Partners Expands 737 MAX Fleet, Ordering Up To 66 More Fuel-Efficient Jets

Boeing and 777 Partners announced a new order and commitment for up to 66 737 MAX jets, including a firm order for 30 ultra-efficient, high-capacity 737-8-200s. This is the U.S. investment firm’s fifth order for the industry’s most fuel-efficient jet in its class, rapidly building its portfolio to as many as 134 737 MAXs since 2021. The two companies announced the order with a signing ceremony at the Farnborough International Airshow.

777 Partners has used the 737 MAX to launch a number of low-cost carriers around the world, with more to follow. Currently, its investments include Flair Airlines, Canada’s only independent ultra-low-cost carrier, and Bonza Airline, an Australian start-up that will launch operations this year. The investment firm has earmarked the 737-8-200, which accommodates more than 200 passengers, to grow operations by increasing revenue potential while reducing carbon emissions, fuel consumption and operating costs.

“This new order marks another milestone in the robust growth of our aviation businesses and concurrently, our partnership with Boeing,” said Josh Wander, managing partner of 777 Partners. “We are excited about the possibilities the MAX aircraft provide our growing group of carriers to facilitate and democratize low-cost travel around the globe while respecting our commitment to sustainable flying.”

“777 Partners is leveraging the cost efficiencies of the 737-8 and 737-8-200 for its diverse network of airlines, while also providing an excellent passenger experience and meeting sustainability goals,” said Stan Deal, president and CEO of Boeing Commercial Airplanes. “777 Partners has had tremendous success establishing new carriers worldwide with the 737-8, and the 737-8-200 will allow for continued growth as an even more efficient addition to its portfolio.”

The 737 MAX delivers enhanced efficiency, improved environmental performance and increased passenger comfort to the single-aisle market. Powered by CFM International LEAP-1B engines and incorporating advanced technology winglets, the 737 MAX offers excellent economics. The airplane family reduces fuel use and emissions by 20% compared to jets it replaces.

777 Partners is a Miami-based private investment firm that invests across a number of high growth attractive verticals. Founded in 2015, 777 Partners strategically invests across six broad industries: insurance; consumer and commercial finance; litigation finance; direct lending; sports, media and entertainment; and aviation. The firm seeks to acquire and build operating businesses that generate long-term, high quality predictable cash flows for its proprietary balance sheet, while consolidating operations across like businesses to create efficiencies and economies of scale. 777 Partners invests at all stages of the business cycle and targets companies accretive to its existing portfolio.

Bonza is Australia’s new, and only independent low-cost airline takes off in 2022*, enabling Australians to explore more of their own backyard, and at low-cost prices. Bonza’s initial route map includes 27 routes to 17 destinations. Ninety three per cent of Bonza routes are not currently served by any airline and ninety six percent not currently served by a low-cost carrier. The only place to book direct is on the FlyBonza App. *Subject to regulatory approval.

Flair Airlines is Canada’s leading low-fare and greenest airline. Flair’s mission is to democratize air travel for all Canadians providing affordable airfare that connects them to the people and experiences they love. With an expanding fleet of Boeing 737 aircraft, Flair is growing to serve over 30 cities across Canada, the U.S., and Mexico. For more information, please visit www.flyflair.com.

Boeing and Qatar Airways Finalize Order for 25 737 MAX Airplanes

Boeing and Qatar Airways finalized an order for 25 737 MAX airplanes, providing the flag carrier’s short- and medium-haul fleet with improved economics, fuel efficiency and sustainable operations. Company leaders announced the order for the 737-10, Boeing’s largest and most efficient single-aisle jet, in a signing ceremony at the Farnborough International Airshow.

“We are honored that Qatar Airways has decided to add Boeing’s single-aisle family to its fleet, deepening our relationship with this world-class airline,” said Stan Deal, Boeing Commercial Airplanes president and CEO. “The 737-10 is ideally suited for Qatar Airways’ regional network and will provide the carrier with the most capable, most fuel-efficient airplane in its class.”

Seating up to 230 passengers with a range of 3,300 nautical miles, the 737-10 is the largest airplane in the 737 MAX family, offering greater fuel efficiency and the best per-seat economics of any single-aisle airplane in the industry. The jet can cover 99% of the world’s single-aisle routes.

In January, Boeing and Qatar Airways announced a Memorandum of Understanding for 737 MAX airplanes at a ceremony in Washington, D.C. In addition, the airline became the global launch customer for the new 777-8 Freighter, with an order for up to 50 freighters.

Qatar Airways operates more than 120 Boeing airplanes including 777 and 787 passenger jets along with 747 and 777 freighters.

A multi-award winning airline, Qatar Airways was announced as the ‘Airline of the Year’ at the 2021 Skytrax World Airline Awards. It was also named ‘World’s Best Business Class’, ‘World’s Best Business Class Airline Lounge’, ‘World’s Best Business Class Airline Seat’, ‘World’s Best Business Class Onboard Catering’ and ‘Best Airline in the Middle East’. The airline continues to stand alone at the top of the industry having won the main prize for an unprecedented sixth time (2011, 2012, 2015, 2017, 2019 and 2021).

easyJet Confirms Order For A Further 56 A320neo Family Aircraft

easyJet has confirmed a firm order for 56 A320neo Family aircraft following shareholder approval. The order is part of easyJet’s fleet renewal and up-gauging, cost and sustainability enhancements to the business. The agreement includes an upsizing of 18 A320neo to the larger A321neo model.

Kenton Jarvis, CFO for easyJet, said: “We believe this order will support positive returns for the business and the delivery of our strategic objectives. The new aircraft are aligned with easyJet’s sustainability strategy, with the adoption of the more efficient new technology aircraft being a core component of easyJet’s path to net zero emissions. Alongside this, the new aircraft are significantly quieter, with half the noise footprint of the older aircraft they are replacing.”

“easyJet has democratised flying for millions of travellers and we are delighted this latest agreement for 56 A320neo Family aircraft not only future proofs its growth as traffic rebounds, but also lays the foundations for its sustainability journey”, said Christian Scherer, Chief Commercial Officer and Head of Airbus International.

easyJet currently operates a fleet of over 300 A320 Family including the A319, A320ceo, A320neo and A321neo, making it the world’s largest airline operator of Airbus’ single aisle aircraft. easyJet serves over 130 European airports in some 31 countries operating over 1,000 routes.

The A320neo Family incorporates the very latest technologies including new generation engines and Sharklets, which together deliver at least 20 percent fuel saving. With more than 8,100 orders from more than 130

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Norse Atlantic Airways Launches with Boeing Digital Flight Operations Solutions

Norse Atlantic Airways announced that it has selected several of Boeing’s digital solutions to streamline operations and increase flight deck efficiency as the new airline commences Transatlantic service this summer.

Norse will integrate the following solutions to support their new 787 fleet as part of a five-year agreement that covers the entire fleet:

• Jeppesen FliteDeck Pro
• Ground Controls and Tailored Maps
• Aviator / FliteBrief
• Onboard Performance Tool (OPT)
• Ops Data and FMS NavData

These digital tools enable flight crews to perform real-time weight and balance and takeoff and landing calculations that reduce maintenance costs, optimize payload capacity, and streamline cockpit operations. Jeppesen’s digital navigation chart services increase flight deck efficiency and integrate key aviation functions efficiently, in a self-service environment.

“We are very pleased to have selected Boeing’s digital solutions that will provide our operations department and flight crew with vital tools from initial flight planning to in-flight operations. The increase in efficiency these digital solutions provide will allow Norse Atlantic to increase on-time performance and maintain a low-cost base. The technology will also enable us to reach our goal of a fully paperless flightdeck environment,” said Thom-Arne Norheim, Norse Atlantic Airways Chief Operational Officer.

FliteDeck Pro is a mobile navigation application used by more than 80% of commercial pilots around the globe. The fleet agnostic app for tablet devices provides pilots with all the aeronautical maps, charts, manuals and documents needed for paperless flying.

This agreement builds on a previously-announced agreement with Norse as the launch customer for Boeing Mobile Logbook, as well as Software Distribution Manager and Maintenance Performance Toolbox. These solutions are part of Boeing’s extensive portfolio of digital maintenance management solutions that provide a simplified approach with accelerated results.

Norse Atlantic Airways offers affordable fares on long-haul flights, primarily between Europe and the United States. Norse has a fleet of 15 Boeing 787 Dreamliners that will serve destinations including New York, Los Angeles, Fort Lauderdale, Orlando, Berlin and Paris. The company’s first flight took off from Oslo to New York on June 14, 2022.

As a leading global aerospace company, Boeing develops, manufactures, and services commercial airplanes, defense products and space systems for customers in more than 150 countries. As a top U.S. exporter, the company leverages the talents of a global supplier base to advance economic opportunity, sustainability and community impact. Boeing’s diverse team is committed to innovating for the future, leading with sustainability, and cultivating a culture based on the company’s core values of safety, quality and integrity. Join our team and find your purpose at boeing.com/careers.

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Public Perceptions About Autonomous Aviation, Flying Taxis to Be Enhanced Through Inmarsat And Flight Crowd Partnership

Future flight technologies, such as all-electric and autonomous aircraft, hold the key to a more sustainable and innovative air transport industry. However, public perception of these marvels of engineering can be mixed due to concerns over safety, cybersecurity and environmental impact. With more than ten million commercial uncrewed aerial vehicles (UAVs) predicted to be in flight by 2030, it is vital that the aviation industry improves public awareness and acceptance of Urban Air Mobility (UAM) in order to truly unlock its transformational benefits.

A first-of-its-kind, global partnership between Inmarsat and Flight Crowd, announced at the Farnborough Airshow 2022 today, will improve engagement with both the industry and the general community through a series of collaborative outreach projects.

These projects – designed to inform, engage and inspire – aim to improve understanding of the air mobility sector for both the public, government and wider aviation industry. They will showcase the many benefits this new industry will bring and improve education around the impact it will have in the decades to come. The projects will reach enthusiasts, experts and the public, including in educational settings through Science, Technology, Engineering, Arts and Mathematics (STEAM) activities.

Bringing the extensive capabilities of UAM to the forefront of industry conversation, the partnership will highlight the importance of future flight technologies in supporting the vital mobility of people, goods and other services across regional, urban and underserved areas. Taking an international approach to project implementation, Inmarsat and Flight Crowd will bring resources, events and initiatives to communities worldwide and encourage them to have a voice in shaping the future flight industry.

Flight Crowd has joined Inmarsat’s Velaris Partner Network, an ecosystem of leading companies that are pioneering new innovations to facilitate safe and secure Advanced Air Mobility (AAM) operations, helping the industry reach its full potential. The network utilises Inmarsat’s ground-breaking Velaris global connectivity solution, which was launched in 2021, and builds on the company’s vast expertise of more than 30 years in air traffic management communications. This experience will also be essential in providing contextualised learning for Flight Crowd’s projects and for instilling trust in the public.

Anthony Spouncer, Inmarsat Aviation’s Senior Director of Advanced Air Mobility, said: “To ensure the adoption of Urban Air Mobility is carried out in a managed and sophisticated way, operators must not only have the backing of the industry, but also positive public acceptance. This simply will not be possible without an investment in education, which is exactly what this partnership aims to achieve. Sustained education programmes that reach communities outside of our sector are important and Inmarsat is proud to work with the experts at Flight Crowd to help realise this objective.”

Mariya Tarabanovska, Founder of Flight Crowd, said: “Inmarsat will be an unparalleled partner for our mission to strengthen the global community’s interest and support of electric and autonomous aviation. To help alleviate any public concerns, it is crucial to raise awareness of the operational benefits that Urban Air Mobility and Advanced Air Mobility technologies offer. Flight Crowd is excited to combine our expertise to improve public perception and desirability of future flight with the global leader in communications and connectivity. This partnership will help us contribute to the safe and connected future of air mobility, while ensuring the ecosystem is built on transparency, diversity and inclusion. We look forward to working alongside Inmarsat to ensure a positive and transformative future for the industry.”

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Vision-Box

Vision-Box, a global industry leader in biometrics seamless travel, automated border management and electronic identity management solutions, announced that its facial recognition technology was accredited as top-ranked at the US Department of Homeland Security’s MdTF Biometric Rally 2021 – an organization that evaluates state-of- the-art biometric identity verification systems for high throughput use cases. This proof of value validates that the algorithms are more effective in their performance than others. When excluding the acquisition errors, the Vision-Box engine delivered top performance across all capture devices.

The 2021 Biometric Technology Rally demonstrates the ability of biometric systems to reliably acquire and match images of diverse individuals across age, gender, race, and other characteristics, including those wearing face masks. Both acquisition systems and matching algorithms are evaluated as part of the Rally, and the data collected from the acquisition systems during scenario testing is used to assess the performance and interoperability with matching algorithms. For the first time, the 2021 Rally reported on the ability of commercial biometric systems to work reliably across demographic groups.

Vision-Box rose to the challenge, by developing its AC2.5 version engine for its facial recognition technology, which delivered an improved matching performance with masks when compared with the previous AC2.0 engine. The advanced AC2.5 engine helped Vision-Box secure to its top-tier performance at the MdTF Biometric Rally 2021. For more information

check out https://mdtf.org/Rally2021 and Vision-box alias Yampa.

Since the onset of the pandemic, biometric technology companies have been trying to solve the challenges of face masks obstructing facial recognition technologies and enabling seamless access. This was particularly important for Vision-Box, as the company was keen to reduce the risk for both public and frontline security checkpoint personnel by eliminating the need for travelers to remove face masks for biometric identification.

Speaking about the recognition, Miguel Leitmann, the CEO of Vision-Box said: “At Vision-Box, we are pleased with the recognition from the US Department of Homeland Security’s MdTF Biometric Rally. The validation is proof of our efforts to improve our algorithm in a real environment. The Vision-Box team will continue to push the boundaries to deliver seamless technologies for all our stakeholders.”

MdTF Biometric Rally 2021 and Vision-Box’s recent renewal of its Privacy by Design certification for Orchestra Digital Identity Management Platform support our solutions. Due to its state-of-the-art features and Privacy by Design certification, Orchestra is utilized by airlines, national border control agencies, and airports around the world.

Breeze Airways

Breeze Airways, the Seriously Nice™ new U.S. low-fare airline founded by aviation entrepreneur David Neeleman, has been ranked second of the 10 best U.S. domestic airlines in 2021, according to Travel + Leisure readers.

Every year Travel + Leisure hosts its World’s Best Awards survey that is distributed amongst its readers. The survey asks readers to share their insights from their travels, voicing thoughts on resorts, hotels, cruise ships, cities, and more.

In the airlines category, readers ranked their top choices based on cabin comfort, in-flight service, food, customer service, and value. T+L readers noted Breeze’s affordability, spacious legroom, nice flight crew, and easy online booking system.

“We started service around Memorial Day last year, only operating for seven months of 2021,” said David Neeleman, Breeze Airways Chairman and CEO. “To be named among the likes of Hawaiian, JetBlue, Delta, and Alaska on a list of the top U.S. domestic airlines in 2021 is a huge honor and a testament to the hard work our Team Members are putting in daily. Together, we’re building a Seriously Nice™ airline, by making travel for our Guests easy, affordable, and flexible. This recognition shows we’re on the right track…and we’re just getting started!”

The list, which is usually comprised of five airlines, was expanded to 10 this year due to the growing number of U.S. domestic airline carriers. Breeze was No. 2, coming in just behind Hawaiian Airlines. Following Breeze was JetBlue at No. 3, Alaska Airlines at No. 4, and Delta Airlines at No. 5.

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MAX Vision

Levarti, part of TA Connections, a FLEETCOR Company, announced today that its MAX Vision Disruption Management software is now live at HK Express. HK Express, the Hong Kong-based low-cost carrier, launched Levarti’s MAX Vision software recently to improve passenger communication, support an enhanced passenger experience and reduce the time and cost of managing flight disruptions. With an emphasis on user-friendly design, Levarti’s self-service portal now allows HK Express passengers to virtually self-manage any disruption event from their own devices, saving passengers valuable time whilst still providing them with great rebooking options.

MAX Vision’s software facilitates HK Express to manage all disruption needs from a single platform. Seamlessly integrated into HK Express’s PSS and flight operations systems, MAX Vision software provides end-to-end logistics management, supports smarter, faster decision making and improved service for passengers.

“In a period of constant operational change for the airline industry due COVID, it’s so important to have the right tools in place,” said Anthony Murray, Levarti CEO. “And our MAX Vision suite supports the HK Express goals of improved communication and enhanced service to passengers even during a flight disruption.”

“At HK Express, we are dedicated to bring in innovations to deliver a quality, affordable and seamless experience to our customers. Our partnership with Levarti will bring additional values to our customers and us,” said Mandy Ng, CEO of HK Express. “Incorporating Levarti’s technology will elevate our customer experience while ensuring we continue to deliver smooth journeys with our value for money offers.”

“Levarti is honored to be a part of HK Express’ digital ecosystem enabling passengers to self-serve their journey changes in addition to supporting HK Express’ drive to improve their passenger experience,” said Murray. “Eliminating unnecessary costs without cutting corners to offer the best services is one of the vital missions of an LCC, and Levarti’s role in managing disruptions effectively and at a much lower cost supports this purpose. Dealing with disruption events can be an expensive proposition for airlines, and they may incur tangible and intangible costs. Our MAX software helps HK Express mitigate both types of cost exposures so they can continue to offer affordable choice and deliver an outstanding and flexible service to travelers.”

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Boeing

The Boeing Company announced major program deliveries across its commercial and defense operations for the second quarter of 2022.

The company will provide detailed second quarter financial results on July 27. Major program deliveries during the second quarter were as follows:

And More Boeing News:

Boeing will fly the newest and largest members of its 737 MAX and 777X airplane families at the Farnborough International Airshow this month and present new tools in the push toward more sustainable and autonomous flight.

The 737-10, making its international debut, will join the 777-9 in the daily flying and static display. The airplanes, each one the most fuel-efficient in its class, will fly to the show on a blend of sustainable aviation fuel, which Boeing sees as a major lever for further reducing carbon emissions. The company also will unveil a modeling tool that will provide actionable insights on strategies the aviation industry can use to reach net zero emissions by 2050.

Another decarbonization strategy is electric propulsion and Boeing’s joint venture Wisk Aero will make the European debut of its all-electric vertical-takeoff-landing (eVTOL) air taxi. The “Cora” development vehicle is pilotless, helping to advance autonomous capabilities in aviation. Boeing will highlight other autonomous capabilities at the show, including its MQ-25 uncrewed aerial refueler and Airpower Teaming System (ATS).

“In the four years since the last Farnborough Airshow, the world has seen the critical social and economic role that aerospace and defense plays. We are excited to reconnect with our colleagues at Farnborough as we address together the need for a more sustainable future and take concrete steps to enable innovation and clean technology,” said Sir Michael Arthur, president of Boeing International. “We look forward to sharing the progress we are making.”

Below are some of Boeing’s highlights scheduled for the airshow starting on July 18, 2022.

Commercial Airplanes
The 737-10 will be on the show grounds July 18-21. The largest member of the 737 MAX family will provide operators with more capacity, greater fuel efficiency and the best per-seat economics of any single-aisle airplane. The 737 MAX family, which has received more than 3,300 net orders, leverages advanced aerodynamic design and highly-efficient engines to reduce fuel use and emissions 20% and the noise footprint 50% compared to airplanes they replace.

The 777-9, which is the world’s largest and most efficient twin-engine jet, will be at the airshow July 18-20. Based on the most successful twin-aisle airplane – the 777 – and advanced technologies from the 787 Dreamliner family, the 777-9 will deliver 10% better fuel use, emissions and operating costs than the competition. The 777X family has more than 340 orders from leading operators around the world.

Defense, Space & Security
Boeing’s exhibit will highlight its highly capable military helicopters, including the CH-47 Chinook and AH-64 Apache, and mobility and surveillance aircraft such as the P-8A Poseidon, E-7 Wedgetail and KC-46A Pegasus.

Boeing also will display some of its newest, most digitally-advanced programs, including the T-7A Red Hawk trainer and ATS. In addition, the U.S. Department of Defense corral is expected to display the FA-18E/F, F-15E, P-8A, AH-64E and CH-47F.

Global Services
Boeing will highlight its customer-centric services business that is focused on keeping the world’s fleet flying safely, efficiently and sustainably by pairing OEM expertise with data-driven innovation. This includes showcasing parts, modifications, digital, sustainment, and training solutions offerings, as well as an expansive global supply chain, maintenance and logistics network.

Sustainability
Boeing will present its vision for a sustainable aerospace future that is grounded in collaboration, technical research, data and extensive testing of technologies including sustainable aviation fuel, hydrogen and electric power.

Autonomy
Boeing will highlight autonomous platforms such as MQ-25, ATS, and Wisk Aero’s Cora.

The company is building on decades of engineering experience to accelerate autonomous capabilities, which can enable sustainable and accessible modes of transportation as the world confronts a growing population and aging infrastructure. Boeing has made significant investments in California-based Wisk Aero, a leading Advanced Air Mobility company and developer of the first all-electric, self-flying air taxi in the U.S. Wisk’s configuration is an important differentiator within the eVTOL market as the independence of its lift and thrust rotors is expected to support simplicity and certification of the go-to-market vehicle.

Other
Boeing will release its 2022 Commercial Market Outlook (CMO) on July 17. The annual forecast builds on 60 years of analysis and insights into airline strategies, passenger demand and economic data, and is among the most accurate forecasts in aviation.

Throughout the airshow, Boeing leaders will discuss market opportunities, eVTOL, sustainability and other topics at media briefings. See boeing.com/Farnborough and follow @Boeing on Twitter for information about these and other activities. Sign up in Boeing’s Newsroom to receive company announcements and advisories.

The Boeing exhibit – Exhibit # A-U01, U23 – will feature an immersive theater display and the company’s aerospace and defense capabilities across the lifecycle.

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Airbus 2Q Deliveries

The net year to date delivery number of 295 reflects a reduction of 2 deliveries recorded in December 2021 (2 A350-900 AEROFLOT) for which a transfer was not possible due to international sanctions.

 

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Morgan Stanley

Airlines: 2Q22 Preview: From Sweet Spot to Goldilocks?
2Q22 could be the best earnings season for the Airlines in years (decades?) despite $4 jet fuel, which speaks volumes for the power of the demand recovery. However, the stocks are already pricing in an “inevitable” Fall recession. We think risk reward might be better than the market thinks.

2Q22 a tale of peak demand vs. peak inflation but demand wins? The mid quarter updates from virtually all the Airlines at conferences in June reinforced that the demand and yield strength that picked up after Presidents Day only strengthened, which helped offset jet fuel and CASMxF inflation. Several airlines are set to deliver double-digit EBIT margins in 2Q despite $4 jet fuel and double digit CASMxF inflation, which would have been unthinkable even 6 months ago. The engine of growth has been driven by demand and yields (running ~25% above 2019 levels) rising unabated (at least until our most recent mgmt conversations a few weeks ago). However, our consumer surveys are showing some cracks (see here, here, and here) and fears of a recession have robbed the stocks of performance (US airline stocks were ~flat from 4/1 through 5/4 and down ~24% from 5/4 through 6/30). We are sympathetic to the concerns and absolutely do not expect yields to be +25% forever. However, we believe the market pricing in a collapse in demand/pricing AND elevated jet fuel may be too bearish. We see a 2H/2023 scenario where demand is strong but not record breaking (aided by a relatively resilient high end consumer + pent up corporate/international demand), yields drop to “only” 10-15% above 2019 levels, capacity eases somewhat as pilots graduate from training schools and demand pressures ease and jet fuel offers some relief (maybe $4 goes to $3 as demand declines?). This could be a transition from our Sweet Spot thesis (demand/pricing being very hot and capacity being very cold/tight which created a sweet spot for margins, even if execution risk was high) to more of a Goldilocks thesis (where nothing is too hot or too cold and everything is just right, lowering execution risk). We believe the Airlines can still comfortably top consensus 2023 estimates (and definitely what is priced into the stocks today) in this scenario. We are leaving forward estimates relatively unchanged today as we believe there is enough dry powder in jet fuel’s decline to more than offset an expected decline in volumes/yield in the coming quarters. However, we will continue to closely monitor leading indicators for both datasets. All airlines have given us detailed guidance updates in early June which significantly de-risks the quarter in terms of numbers and means the focus again will be on the rising tide (and whether it has started to fall).

Below are some of the key themes that we are looking for during 2Q earnings season:

1. Forward booking curve / signs of demand destruction. We believe the hump of Airlines reports in late July should be late enough to provide an early read into the forward booking curve beyond Labor Day to confirm whether the seasonal drop in volumes is normal/seasonal/mild (bull case) or a collapse (bear case). Airlines opened their Fall bookings in early June and early reads have looked promising though they were too early to be definitive. We should have a definitive view during earnings.
2. Signs of pricing easing. Bears have been waiting for signs of a second derivative turn in pricing and we may get that with mgmt. teams unlikely to underwrite 25% Y/3 yield growth through 2H. Part of this is normal seasonality, part is lack of macro visibility. However, this outlook downgrade may as well be a “buy the news” event if rates are still up Y/3 (given the concerns priced into the stocks) through 2H. We also expect corporate and international to pick up in the Fall which should be a tailwind to price/mix.
3. Corporate update. The industry is counting on the last big leg up on corporate to come after Labor Day which should take the corporate recovery back to 2019 levels (from ~70-75% recovered today). This is supported by our latest Corporate travel survey (see here) which sees corporate travel spend rising into 2H22/2023. We believe a mild macro slowdown may actually be beneficial to corporate travel as companies hustle more to win business but a deeper recession could see budget cutbacks. We should get an update on the Fall corporate outlook on the 2Q calls. We will also be looking for an update on contract renewals which should reset some corporate contracts that may be grandfathered from pre-pandemic levels and renewed at much higher pricing.
4. Jet fuel offers cost relief? While nearly impossible to accurately forecast, recession fears have pulled oil below $100/barrel and jet fuel below $4/gal (today jet fuel is at ~$3.29/gal which is ~22% lower in some cases than when airlines last updated their 2Q guidance in early June). If this sustains or the decline continues, jet fuel could be a tailwind to 3Q guidance.
5. CASMxF update / service issues. Despite all the noise, the biggest headline of 2Q was likely the aggressive pull down of schedules into the summer as airlines struggled to keep service levels afloat. Cancellations were elevated at some point in the quarter for virtually every airline (though ALGT, which already guided down on this, and AAL are likely most at risk) and every airline slashed their flying schedules for 2H2Q22. We do not expect other airlines to warn/miss on this in 2Q but the market will be focused on whether this continues into the Fall, which will impact CASMxF guidance for the year. Again, we think a Goldilocks scenario should bring demand and supply more into balance.
6. Idiosyncratic updates. We are still in an environment where the market/macro dominates investor sentiment and earnings power but idiosyncratic catalysts also matter, including updates on LUV’s corporate traction, ALK’s revenue initiatives, Sunseeker update at ALGT and more.

 

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Other News

• If you are looking to get a better picture of the famous particle in the Higgs boson discovery, this article some 10 years later is pretty good! And no, this has little to do with aviation, but everything to do with physics and science!
  How physicists are probing the Higgs boson 10 years after its discovery | Science News

Safran

Safran Seats reveals Euphony, an innovative passenger experience solution for Business and First class seats that provides passengers with a headset-free and high-quality individual sound experience. The solution, which will be revealed at the Aircraft Interiors Exhibition, has been developed in partnership with Devialet, an acoustic engineering company contributing with its world- class expertise and innovation to this joint effort.

With Euphony, each individual passenger can enjoy high quality sound in every position of the seat, enabling them to make the most of the entertainment content provided by the airline free from headsets and cables. With no more communication barriers with fellow travelers nor the cabin crew, Euphony enables a seamless on-board experience.

Euphony is made possible thanks to Devialet’s unique patented acoustic technologies and acoustic tuning expertise, coupled with Safran Seats invention which consists of two Devialet bespoke loudspeakers on each side of a standard sized headrest. Together, they provide the passenger with a high-fidelity sound that is clear and full-bodied. Euphony also enables the system to adjust in real- time to the audio content and the ambient cabin noise to offer an optimum listening experience without affecting other passengers on board.

Available across the Safran Seats Business class & First class product portfolio, Euphony is an intelligent solution that was selected by a first launch customer and will enter into service in 2023.

“Bringing Euphony to the market aligns with Safran’s vision to innovate and offer the best passenger experience. Our partnership with Devialet, a world leading acoustic company, brings one more option for our airline customers to customize their seat out of a wide range of options available across our full range of products ” Quentin Munier, Safran Seats EVP Strategy & Innovation.

Franck Lebouchard, CEO at Devialet says: “We are incredibly excited about our partnership with Safran Seats, bringing Devialet’s world-class technology to aircraft through this unique innovation. We believe great sound should be available at every moment, whether on the ground or in the sky, and with Safran Seats we are one step closer to that goal.”

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Panasonic Avionics

 Panasonic Avionics Corporation (Panasonic Avionics) has announced that it has joined forces with Adobe to advance the next generation of In-Flight Entertainment and Connectivity (IFEC) through enhanced content delivery, data collection & activation, journey orchestration and experience intelligence services.

Adobe, the global leader in enterprise software, enabling businesses to create, manage and deliver personalized customer experiences and Panasonic Avionics, the global leader in IFEC solutions, bring together their respective capabilities to drive airline loyalty (NPS), ancillary revenue, and operational efficiencies.

Panasonic Avionics will integrate Adobe Experience Cloud’s content delivery, data, journey orchestration and experience intelligence capabilities into its onboard IFEC systems to ease the distribution of content for in-flight services while generating and activating on data from passengers’ real-time onboard services, transactions, and in-trip experiences.

Airlines will gain behavioral insights from customers’ IFEC interactions to accelerate service and enhance loyalty while connecting the in-flight experience throughout each passenger’s journey.

Personalization and targeted services have long defined the value of web and mobile experiences and have been hailed as the next frontier in IFEC to accelerate the customer experience. Panasonic Avionics and Adobe share the vision that airlines can drive more value out of IFEC by using data driven services to drive new revenue opportunities and increase airline NPS through service recovery.

The new partnership between Adobe and Panasonic Avionics transforms this process by offering pre-integrated functionality, using new and existing airline web and mobile assets, that can be deployed quickly and securely into IFEC services. Airlines will benefit from data updates in real time and, by utilizing AI-driven insights, can deliver and activate the right passenger experience across every channel.

Andrew Mohr, Vice President, Digital Solutions of Panasonic Avionics, said, “The cabin experience offers enormous untapped potential to deliver new value to airlines and their passengers through IFEC. We are delighted to provide this latest evolution in the digital onboard experience. Pre-integrating Adobe’s services will provide valuable and insightful data to airlines so they can further improve the in-flight experience for their customers.”

Julie Hoffmann, Global Head of Industry Strategy for Travel at Adobe, said, “At Adobe, we help travel brands to personalize and scale digital experiences. Working with Panasonic Avionics, Adobe Experience Cloud transforms all airline passenger data to create actionable customer profiles, whilst ensuring privacy is respected and data is securely stored.

Together with Panasonic Avionics, we are unlocking the value of data for airline teams, accelerating personalized experiences and services in-flight, that passengers now expect.”

The capability will include Panasonic Avionics’ recently introduced modular interactive capability, which will enable the ability to leverage existing airline digital assets and workflows and harmonize digital initiatives across all airline channels – web, mobile and IFEC.

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Burrana

Burrana announces that it has obtained Airbus’ approval to market its RISE In-Seat Power solution to multiple airlines on the A320 family of aircraft, following successful completion of the Airbus acceptance test in Hamburg. RISE Power will now be available for factory installation for aircraft deliveries starting in Q2 2023.

Burrana has also secured an unidentified launch customer on the A320 and A321 aircraft types. Under the contract, Burrana will supply more than fifty aircraft with 3 Amp (15W) USB-A and -C combo jacks at every seat, as well as 110 VAC Power outlets in premium economy.

The solution is a simple installation architecture with minimal components, consisting of a small, lightweight housing either double USB jacks or 110V plus USB outlets, compact seat power boxes, and harnesses. Burrana will also provide product support and manage spares globally.

The solution offers an innovative approach without compromising on space, weight, ergonomics and aesthetics. It provides airlines with the fastest USB charging in the industry with 15W (3 Amp) charging via both USB-A and USB-C ports. The system can also be upgraded to 60W USB-C ports by simply swapping out the jacks.

The RISE 48VDC architecture provides greater reliability with reduced size, weight, and CO2 emissions. Intelligent power-sharing distribution and load shed management ensures greater utilization and efficiency of available power in the cabin, with multiple levels of redundancy bringing passengers facing failures to almost zero. RISE Power also makes maintenance and future fleet planning easy with feature-rich usage data reporting on passenger behaviour and system performance.

Burrana CEO Graham Macdonald, said, “This linefit collaboration with Airbus for RISE in-seat power is a significant milestone for Burrana as we continue to deliver brand-enhancing cabin technology solutions to airlines. Once fully installed, thousands of passengers will be powering their devices with our In-seat Power solution at any one time,” Macdonald explained.

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OneWeb

The OneWeb Connected Passenger Report, the first of its kind since the pandemic, was commissioned to feed the airline industry’s understanding of what airline passengers demand from their in-flight connectivity (IFC) experience and to explore how expectations meet or contrast with what they have experienced while flying so far.

• Wellbeing and sustainability are more important to passengers than ever before.
• Lack of connectivity in the sky creates undue stress before the flight.
• Inconsistency of Wi-Fi service, inaccurate marketing, and usage restrictions among top frustrations.

OneWeb, the global space-based communications company, has today released initial findings from its first OneWeb Connected Passenger Report, an extensive survey of passenger attitudes toward air travel and inflight connectivity (IFC) in the post-pandemic landscape. To undertake the research, OneWeb partnered with leading independent international research agency, TAG Research, to collect both qualitative and quantitative data. The qualitative sample was collected in twenty-seven individual, hour-long interviews with frequent flyers across 5 key groups including corporate travel bookers, digital nomads, travel bloggers, and young frequent flyers. The qualitative data was obtained through a detailed survey completed by 4,110 individuals from across the US, UK, Singapore and the UAE.

Today, OneWeb shares with the airline industry a complimentary whitepaper featuring the key findings from the research. These timely findings clearly indicate a frustration with current connectivity solutions and provide a clear vision of what passengers really want from airlines post-COVID.

Post-pandemic, passengers prioritise quality of life more than ever before, and find frequent travel to be disruptive to their physical and emotional wellbeing. Current IFC services add to the stresses of travel for business and leisure passengers alike, and the survey highlights some of these top frustrations,  including:

• The prospect of Wi-Fi disconnection in the sky creates undue stress before the flight.
• 59% of passengers surveyed rating the current quality of IFC between ‘very poor’ to ‘moderate’ on a 7-point scale.
• Younger digital native passengers are less tolerant of current IFC and dismissive of its usability.
• 60% of passengers surveyed agree that the while the idea of accessing Wi-Fi in-flight is great, current connections aren’t reliable enough.

Ben Griffin, VP Mobility at OneWeb, commented: “OneWeb is proud to share the results of this survey with our colleagues across the industry, as we work together to better understand and address the needs and demands of modern air passengers. The Connected Passenger Report sheds light on the shifting sentiment of passengers who are demanding better and more consistent connectivity, while also prioritizing well-being and sustainability more than ever before. These insights are incredibly important as we look to build solutions and inflight experiences that cater to the digitally demanding and socially conscious passengers of tomorrow.”

Post-Pandemic Sustainability and Wellbeing Higher on Passenger Agenda

Lockdown’s empty skies sharpened the focus on sustainability, and lessons from lockdown include an amplified commitment to quality of life and wellbeing.

“Sustainability and wellness are very much part of the discussion. It may be that people travel less frequently but stay longer. Sustainability is a conversation that we are having with all our corporate customers” – (Corporate Travel Booker)

Lack of Connectivity in the Sky Causes Stress on the Ground

Being offline inflight induces stress and generates ‘extra work’ for passengers, both pre and post flight.

“I’m literally the last person turning [my data] off.  It does panic me because I just think “oh my God, I won’t be able to send another message”, or you’ll send one and you won’t get the reply.  That is quite stressful”

(Travel Blogger)

People Have Developed Coping Mechanisms to Mitigate Disconnection

Many passengers lament their lack of preparation and relay tales of panicky downloading as they linger at the gate.

“It is quite annoying.  I had to take a photo of every single page of my study book the other day so I could do my homework on the flight.  I had to do it really quickly before the flight”

(Young Frequent Flyer)

Current IFC is not relied upon – so many people do not even bother with it

In a finding sure to alarm the IFC industry, 7 out of 10 respondents claim they’ve never tried inflight Wi-Fi citing perceived unreliability, cost and pre-established coping mechanisms as their reason for not connecting. 43% of those who have call the experience frustrating. As a result, passengers are generally reluctant to abandon their coping mechanisms and continue to dedicate a significant amount of time and effort to preparing for disconnection during the flight.

Commenting on the results, Ben Griffin said “Despite the significant investment airlines are making in their IFC offering, it is clear the current in-flight connectivity experience is not consistently delivering on the needs of today’s connected passenger with a majority of passengers not even taking the time to connect. The flying public have spoken, and these results underscore a huge opportunity for airlines to improve their passengers experience, and loyalty by enhancing their IFC”.

Great Wi-Fi Onboard Can Contribute to a Sense of Well-Being

When passengers pause and think about their entire travel experience, the notion of being empowered to drop their coping mechanisms and free up time pre-and post-flight has tangible appeal. In the survey, 56% of passengers said they’d use better Wi-Fi to access entertainment of their choice, 48% said they’d feel happier keeping in touch with people on the ground, and 41% said they’d like to keep on top of work while flying.

Early Adopters of better Inflight Wi-Fi Stand to Gain from Improving Travel Wellness

Passengers were adamant that airlines which provide consistently high-quality IFC will stand apart from the competition and inspire loyalty.

“It would almost definitely impact our choice of airline. Good internet connectivity would be a game changer for us”

(Digital Nomad)

Commenting on the outcome of the study, Rachel Orgueil, Partner at TAG Research said:

“Our hypothesis at the outset of this project was that improved connectivity would be broadly welcomed by passengers and enhance their inflight experience.  Our research revealed the benefits of IFC are far more compelling and extensive, with the potential to positively impact the entire travel experience and passengers’ well-being. There is every indication that airlines will need to provide high quality IFC as a standardized part of their offer once it is available.”

Over the coming weeks and months, OneWeb will delve deeper into the data and sharing additional insights with the aviation sector.

Methodology:

Quantitative data was collected in a survey completed by 4,110 individuals from across the US, UK, Singapore and the UAE. Research took place between February and March 2022. The qualitative research was collected through interviews with frequent flyers across five topics (including digital nomads, travel bloggers, journalists, corporate travel bookers and young frequent flyers).

See the OneWeb Connected Passenger Report here:

https://go.oneweb.net/aviation/passenger_survey

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CarlisleIT

Carlisle Interconnect Technologies (CarlisleIT), a division of Carlisle Companies (CSL), is featuring new satellite communications products for commercial aviation at the AIX 2022 show in Hamburg, Germany, including the Ka1717 Adapter Plate, Skirt, Radome and ThinKom’s proprietary VICTS antennas in partnership with ThinKom, and the Integrated Adapter Plate and Thermal Management System in partnership with Gilat Satellite Networks. CarlisleIT will be present throughout the show at stand number 4B40.

The Ka1717 platform is geared toward regional jets, single aisle, and VVIP aircraft to enable connectivity for passengers and support high-bandwidth services such as streaming, collaboration tools, messaging platforms, and social media. It features a low-profile radome for reduced drag as well as a new, simplified adapter plate design, all to significantly reduce weight, operational costs and initial investment for operators. CarlisleIT provides installation design, certification services, and kit manufacturing to support the integration of the system equipment provided by ThinKom.

“This antenna addresses performance limitations that do not meet today’s connectivity requirements, especially for regional jets,” said Chris Rawley, product line manager for aircraft connectivity solutions at CarlisleIT. “We are investing in a Satcom installation package for what we believe is an underserved market, and we are bringing high-bandwidth connectivity to fleets that are currently limited to low-performing air-to-ground (ATG) systems.”

CarlisleIT’s Integrated Adapter Plate and Thermal Management System (TMS), is a custom installation package design which accommodates fully-functional ESAs developed and tested by Gilat Satellite Networks for use with multiple satellite constellations. The TMS can easily be scaled to interface with other Electronically Steered Array antennas and provides a low-profile, compact installation, supporting gate-to-gate SATCOM operability.

“The integration of the CarlisleIT thermal management system into the adapter plate structure combined with Gilat’s ESA terminal demonstrates a solution that fits on smaller aircraft with a compact antenna footprint, yet surpasses connectivity performance expectations,” said David Grice, business development manager at CarlisleIT. “With both installation packages, we are excited to demonstrate the power of partnering with companies creating the latest technologies, like ThinKom and Gilat, and integrating them into the ever-changing landscape as it develops.”

CarlisleIT’s vertical integration allows them to provide interconnect solutions encompassing every facet of design and production – from component manufacturing to fully-integrated engineered solutions – for a variety of product needs. CarlisleIT leads the market in aerospace SATCOM installation solutions, with over 2,500 installations delivered worldwide.

Visit the CarlisleIT booth at the show, or contact Chris Rawley at christopher.rawley@carlisleit.com or David Grice at david.grice@carlisleit.com for more information.

Royal Brunei Airlines Selects Anuvu as IFE Content Service Provider

Anuvu announces its partnership with Royal Brunei Airlines, serving as the company’s Content Service Provider (CSP) starting February 2022.

Passengers traveling with Royal Brunei Airlines, a boutique airline based out of Brunei, Asia and operating flights between Australia, England, Japan and China, can now watch a wide range of inflight entertainment (IFE) provided by Anuvu’s Iris platform, a cost-effective and convenient IFE subscription service for airlines. The partnership will offer a wide variety of premium entertainment, including bespoke customer solutions, to fit airline budgets and boost passenger experiences, meeting travelers’ high expectations for onboard entertainment.

“2022 promises to usher in a whole new set of challenges and opportunities for our industry. I am glad that we have chosen Anuvu as our new IFE partner,” said Sabirin Hj Abdul Hamid, acting CEO, Royal Brunei Airlines. “We selected Anuvu to enhance our passenger experience through an innovative IFE presentation and extensive library as we look forward to relaunch our scheduled network after almost two years of minimum operations due to the COVID19 travel restrictions. Behind the scenes, our team will appreciate the ease and flexibility of Iris.”

“We are delighted to begin servicing such a prestigious airline as Royal Brunei, which has been recognized time and time again for its impeccable service and passenger experience,” said Estibaliz Asiain, Anuvu SVP, Commercial Media & Content. “We look forward to supporting the team in continuing to take their inflight experience to new heights through innovative technology and media and content solutions.”

Iris is a monthly service for aviation clients to select best-in-class content for passengers. It is an efficient and flexible solution that enables airlines to have a clear fixed pricing structure, inclusive to airlines of all sizes. Passengers have access to Hollywood and international movies, award-winning TV and next-generation featured content.

More News From Anuvu: 

• Anuvu Modernizes Inflight Entertainment Selection with Explore
•  Innovative online media and content library disrupts legacy practices to enable airlines to deliver a superior passenger experience with ease.

Anuvu launches Explore, a user-friendly and comprehensive online library that simplifies choosing inflight entertainment content. The innovative solution delivers to airlines a modern and efficient alternative to the industry’s legacy approach to content and media selection.

For decades, inflight entertainment selection has been a complex and time-intensive process centered around manually searching lengthy PDF attachments, PowerPoints and Excel spreadsheets to find and select the right content mix. With Explore, Anuvu elevates content selection into the digital age with an easy-to-use, cloud-based website.

“We are thrilled to offer a simple, informative and technology-driven solution for airlines when it comes to viewing available titles,” said Anuvu’s Terri Davies, SVP Content & Media Services. “Choosing content should not be a time-consuming and tedious process, and with Explore, airlines will be able to easily provide their passengers the very best media and content.”

Explore offers airlines full visibility into their content options via an online platform, accessible 24/7, to discover and easily filter through recommended and available titles. Through the intuitive dashboard, airlines can view essential details and metadata for each title, including trailers, synopses, cast and crew, available languages, and IMDB scores.

Explore pairs with Anuvu’s innovative subscription service Iris, which offers airlines a tailored and pre-curated variety of content. Together, Explore and Iris modernize inflight entertainment in a way that eases the selection burden for airlines, builds content based on an airline’s specific needs, maximizes return-on investment, and delivers to passengers a memorable inflight entertainment experience.

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PANASONIC

Panasonic Avionics Corporation (Panasonic Avionics) has appointed Chris VandenBerg as Chief Engineer (Software).

In this role, Chris will be responsible for delivering the company’s highly complex, end-to-end software that redefines how airlines interact with their passengers onboard the aircraft. He will report to CTO, Joe Bentley, and will lead a multi-disciplined and talented team of highly skilled individuals across Panasonic Avionics’ global footprint. Chris will also act as the company’s primary technical contact with its customers.

Bentley said, “Our customers are always looking for new ways to deliver an enhanced passenger experience, generate revenue, increase passenger engagement and improve operational efficiencies. Robust and reliable software will be the foundation for the kinds of products and solutions that help them achieve their organizational goals. Chris has a wealth of experience in software design and development and is highly knowledgeable in delivering a final production product from its concept phase. I am delighted to welcome him back to Panasonic Avionics where he will again be a major asset to our team.”

Chris has over 25 years of experience in software programming, hardware design, and system architecture. He re-joins Panasonic Avionics from Safran Passenger Innovations, where he was Technical Fellow – Head of Software Architecture from 2019, managing a team of software architectures and developers.

Chris brings 14 years of experience at Panasonic Avionics, having joined as Principal Software Engineer in 2004 and progressed to become CTO, Global Communications in 2016. During this time, he managed engineering teams in the company’s satellite communications division and designed the company’s Global IPTV system, including its first generation of IP back-haul and up-link distributions.

Chris VandenBerg said, “As an award-winning provider of in-flight entertainment and connectivity, Panasonic Avionics is a company I am very proud to be a part of, and I look forward to working with my fellow colleagues to enhance the standards of software engineering excellence that we deliver to our airline customers.”

Panasonic Avionics has led the industry in providing new ways to increase passenger engagement through its growing portfolio of digital solutions. Its immersive ArcTM 3D map product has been adopted by over 20 airlines since its debut at Aircraft Interiors in 2019. Its Marketplace solution, launched with Singapore airlines earlier this year, enables airlines to create turn-key eCommerce experiences by expanding their storefront retail and duty-free offerings onboard, with the ability to present dynamic inventory and initiate promotions throughout the customer journey.

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THALES

• American Airlines’ new A321XLR and Boeing 787-9 fleets will be equipped with Thales’ latest AVANT solution.
• American Airlines will be the first customer to fly with Thales’ new line of high-performance Optiq displays, the industry’s first 4K high dynamic range (HDR) seatback screens enhanced with Samsung QLED proprietary technology.
• The airline’s A321XLR and Boeing 787-9 aircraft are anticipated to enter service in 2023.

American Airlines has selected Thales’ latest AVANT inflight entertainment (IFE) solution to equip its new A321XLR and Boeing 787-9 aircraft for transcontinental and international travel.

American’s aircraft will be the launch customer flying with Thales’ new line of Optiq displays, the industry’s first 4K high dynamic range (HDR) seatback screens enhanced with Samsung QLED proprietary technology. Optiq provides passengers with the best monitor experience in the air, with an unrivaled picture quality featuring more than 1 billion colors.

The system is capable of Bluetooth connection at each seat, which allows passengers to pair their wireless headphones to the system.

Premium Class seats will enjoy 17-inch displays accompanied with a 5-inch touchscreen handset offering a true second-screen experience. Premium Economy and Economy Class will feature 13.3-inch displays and 11.6-inch displays, respectively.

AVANT will be integrated with American’s high-speed connectivity system to provide digital services and real-time health monitoring & reporting.

American has also selected Thales’ high-power charging solutions, which will give passengers access to both USB type C 60-watt and AC outlets at each seat in all classes. This solution is designed to meet the specific power needs of passengers, now and in the future.

“American Airlines has trusted Thales as an inflight entertainment supplier for more than a decade and now to equip its new A321XLR and Boeing 787-9 aircraft with the latest AVANT IFE solution. As air travel begins to recover, Thales continues to invest in digital innovations that create value for our customers. We’re truly excited to provide these solutions to American and its customers.” Yannick Assouad, Executive Vice-President Avionics, Thales

Also From Thales:

Thales has entered into a definitive agreement to acquire the Moog ground-based navigation aids business located in Salt Lake City, Utah. – Moog navigation aid offerings complement Thales’ family of navigation aids.Upon acquisition closing, in addition to fixed navigation aids, Thales will gain “man-portable” technology, further supporting contingency air operations as well as evolving military mobility needs. The post-acquisition integration will augment Thales U.S.-based engineering, industrial and technology capabilities.

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PEGASUS AIRLINE

Pegasus Airlines has set its 2030 interim target for carbon emissions; the airline aims to reduce flight-related carbon (CO2) emissions per unit passenger kilometre (RPK) by 20% by 2030 compared to 2019 levels.

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OTHER NEWS

Women in Aviation has selected the 2022 inductees for its International Pioneer Hall of Fame. These women will be honored during the 33rd Annual International Women in Aviation Conference, held March 17-19, 2022, in Nashville, Tennessee. The 2022 Pioneer Hall of Fame inductees are: Cornelia Clark Fort, Capt. Rosemary Bryant Mariner, U.S. Navy, and Col. Peggy A. Phillips, (retired) of the U.S. Air Force.
Congrats Ladies!

PANASONIC

Panasonic Avionics Corporation (Panasonic Avionics) has announced the appointment of Kim Creaven as Director of Advertising Sales.

Kim will serve as the organizational lead for all Panasonic Avionics’ market-driven, advertising-related solutions. She will be responsible for the development and oversight of the business to include product, sales, and marketing solutions that maximize opportunities for the monetization of passenger engagement through in-flight entertainment and connectivity (IFEC) systems.

In her role, Kim will report to Andrew Mohr, Panasonic Avionics’ Vice President, Digital Solutions. She will be working with customers, stakeholders, and third-party vendors to help develop and execute product and marketing strategies for its advertising services across the company’s business verticals.

Andrew Mohr said, “There is incredible room for growth in the in-flight advertising space, and Kim’s expertise and in-depth industry knowledge will contribute greatly to unlocking that potential through Panasonic Avionics’ IFE and Connectivity.”

Kim has more than 26 years of experience in advertising and sales roles with airlines, media, and IFEC providers. She previously held roles at Delta Air Lines, American Airlines, and Gogo and joins Panasonic Avionics from ANUVU (formally Global Eagle Entertainment), where she was Vice President of Sales, Strategy and Partner Marketing from 2014 – 2020.

Kim Creaven said, “Panasonic Avionics is a proven leader in digital aviation products and services, and I am delighted to be joining their talented team at such an exciting time for our sector.”

“As Panasonic Avionics continues its advances in digital ancillary revenue innovation, we will be taking today’s in-cabin entertainment experience to the next level of engagement with our industry-leading advertising services.”

“I will use my experience and passion for our industry to help Panasonic Avionics become the lead in onboard advertising and ancillary revenue standards and to deliver innovative customer partnerships across the globe.”

Since 2017, Kim has also been Chairwoman of the APEX (The Airline Passenger Experience Association) Advertising & Ancillary Revenue Committee – the first within APEX to elevate airline ancillary revenue related to advertising, sponsorships, and loyalty partnerships. In this role, Kim has led the creation of industry best practices and the first glossary of terms for creative airline advertising.

Kim attended the University of Kentucky, where she obtained a Bachelor of Science degree within the School of Business and Journalism.

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INMARSAT

Inmarsat, a leader in global, mobile satellite communications, today confirmed that its strategic partner BSNL has received the necessary licenses to deliver Inmarsat’s world-leading Global Xpress (GX) mobile broadband services in India.

Under BSNL’s Inflight and Maritime Connectivity (IFMC) license from the Department of Telecommunications, GX will be available to Indian customers across government, aviation and maritime.

The announcement means that India’s airlines will be able to deploy GX for in-flight connectivity within India and throughout the world, while India’s commercial maritime companies will be able to enhance significantly the digitalization of their vessels for more effective ship operations and crew welfare services. BSNL’s license will also see the award-winning GX service offered to government and other users. There will be a phased introduction of services for customers and partners.

Rajeev Suri, Inmarsat CEO, said: “Today is a significant day for Inmarsat and our valued, long-term partnership with India, which was a signatory to the founding treaty establishing Inmarsat in 1979. Inmarsat is delighted to make the world’s only global high-speed mobile broadband Ka-band network available to the Government and businesses in India through our partner BSNL. We are committed to India and the company has been a trusted partner for the Indian government for four decades. Today’s announcement, which we share proudly with our friends at BSNL, will help to underpin the further economic growth that we all wish to see in India.”

GX, operating in the Ka-band, is the first and only high-speed broadband network designed for mobility and government customers to seamlessly span the world. This market-leading service delivers the high bandwidth, reliability and security that commercial and government-grade mobility customers demand. GX is continually evolving to offer even more capacity, capabilities and operational agility for Inmarsat customers now and well into the future. The company is launching a further seven GX satellites, including its next generation GX satellites, over the coming three years, each of which will add more capacity into a single region than the first four satellites combined. The GX gateway for India is located in Ghaziabad, Uttar Pradesh.

Chairman and Managing Director of BSNL, Mr P.K. Purwar said: “BSNL and Inmarsat are delighted to share this key milestone with our partners and customers in India. Global Xpress is recognized as the world’s best high-speed satellite communications service for government and mobility business customers and we are very pleased to make these capabilities available to users in India. All of us at BSNL appreciate the commitment to excellence shown by the Indian Government as we have worked on approvals to deliver this service to the country. Equally, we thank our partner Inmarsat for their spirit of collaboration in reaching today’s milestone to help power forward economic development in India through higher quality connectivity for our customers.”

Ajay Singh, Chairman and Managing Director of SpiceJet Ltd, said: “We are delighted that Global Xpress, the world-leading passenger inflight connectivity service, is now coming to India. We are looking forward to offering this ground-breaking connectivity service to our passengers later this year, when we introduce our new Boeing 737 MAX aircraft. It will enable our customers to remain connected in the air as they do on the ground.”

Gautam Sharma, Inmarsat India Managing Director, said: “Inmarsat is well-positioned to partner with the Indian government to address the ever-growing demand for reliable, mobile satellite communication services across a broad range of commercial and public sectors. Following the successful introduction of Inmarsat’s voice and broadband data communication services across India in the past, today we are announcing that Inmarsat’s award-winning Global Xpress services has now secured the necessary licenses through our valued partner BSNL. Global Xpress is the gold standard of high-speed satellite mobile broadband communications. It will enable Indian domestic airlines and international airlines flying over India to provide the world’s fastest inflight connectivity. It will also speed up the digitalization of Indian-flagged maritime vessels and give an edge to the Indian Government, including its defense forces. We are proud to be led by Rajeev Suri, an Indian-born global leader as we unlock the next phase of commitment to the Indian government and Indian market.”

Also From Inmarsat:

Inmarsat recently unveiled plans for ORCHESTRA, the communications network of the future, which will bring the company’s existing geosynchronous (GEO) satellite networks [GX and Inmarsat ELERA operating in the L-band] together with low earth orbit satellites (LEO) and terrestrial 5G to form an integrated, high-performance solution, unmatched by any existing or planned competitor offering. ORCHESTRA allows capacity to be boosted in high-density areas such as at airports and maritime ports, eliminating network ‘hot spot’ congestion forever and ensuring that the connectivity needs of mobility and government customers continue to be met for decades to come, with capacity scaled directly to match their requirements.

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AVALON

Avolon, the international aircraft leasing company, and Japan Airlines (‘JAL’), announce a partnership to commercialize zero-emissions eVTOL aircraft in Japan.

Avolon, through its investment and innovation affiliate Avolon-e, has formed a strategic partnership with JAL to identify and target local partners and customers, infrastructure requirements, certification, and a range of commercial models to introduce one of the world’s first eVTOL ride sharing businesses in Japan. Through this partnership, JAL will have a right to purchase or lease up to 50 Vertical VA-X4 eVTOL aircraft from Avolon, with the option to purchase or lease up to 50 additional units.

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BOEING

Boeing Forecasts 20-year Middle East Commercial Jet and Services Market Valued at more than $1.4 Trillion

• Commercial fleet expected to more than double to serve passenger and cargo demand
• Projected widebody deliveries will be the highest proportion of any region at 44%
• Aftermarket commercial services such as maintenance and repair worth $740 billion

Boeing said that airlines in the Middle East will require 3,000 new airplanes valued at $700 billion and aftermarket services such as maintenance and repair worth $740 billion, with the region positioned to capitalize on the recovery of regional and international travel and cargo demand. Boeing provided the estimate in its 2021 Commercial Market Outlook (CMO), a forecast of 20-year demand for commercial airplanes and services.

Middle East passenger traffic and the region’s commercial fleet are projected to more than double over the 20-year forecast period, according to the CMO. More than two-thirds of airplane deliveries to the Middle East will accommodate growth, while one-third of deliveries will replace older airplanes with more fuel-efficient models such as the 737 MAX, 787 Dreamliner and 777X.

“The Middle East region’s role as a global connecting hub continues to be important for developing markets to and from Southeast Asia, China and Africa,” said Randy Heisey, Boeing managing director of Commercial Marketing for the Middle East. “The region has been a leader in restoring confident passenger travel through multi-faceted initiatives that aid international travel recovery.”

Air freight represents an ongoing area of opportunity for Middle East airlines, with the freighter fleet projected to nearly double from 80 airplanes in 2019 to 150 by 2040. Notably, air cargo traffic flown by Middle East carriers has increased since 2020 by nearly 20%, with two of the world’s top-five cargo carriers based in the region.

The 2021 Middle East CMO also includes these projections through 2040:

To accommodate increased passenger and cargo traffic, airlines are predicted to grow their fleets to 3,530 jets.
The region will continue to see robust widebody demand, with 1,570 deliveries supporting a growing network of international routes.

The current single-aisle fleet of 660 airplanes is forecast to nearly triple to 1,750 jets.

Commercial services opportunities include fleet renewal, maintenance, repair and parts supply, and operations optimization.

Boeing’s 2021 Pilot and Technician Outlook forecasts that the region is estimated to require 223,000 new aviation personnel by 2040, including 54,000 pilots, 51,000 technicians and 91,000 cabin crew members. The complete PTO is available here. The complete CMO forecast is available here.

Boeing Forecasts Africa’s 20-year Commercial Aviation Market Opportunity Valued at Nearly $400 Billion.

• Africa’s commercial airplane fleet projected to grow to 1,560 over the next 20 years
• 80% of new deliveries are for African carrier growth as intra-continent traffic rises

Boeing forecasts that Africa’s airlines will require 1,030 new airplanes by 2040 valued at $160 billion and aftermarket services such as manufacturing and repair worth $235 billion, enabling growth for air travel and economies across the continent. Boeing shared the projection as part of the 2021 Commercial Market Outlook (CMO), the company’s long-term assessment of demand for commercial airplanes and services.

Africa’s strong, long-term growth prospects for commercial aviation are closely tied to the continent’s projected 3% annual economic growth over the next 20 years. Initiatives such as the African Continental Free Trade Area and Single African Air Transport Market are expected to stimulate trade, air travel and economic cooperation. Additionally, the region’s middle class and working population is projected to double by the end of the forecast period, driving increased demand for air travel, according to Boeing.

“Africa has healthy opportunities to expand travel and tourism, coinciding with increasing urbanization and rising incomes,” said Randy Heisey, Boeing managing director of Commercial Marketing for Middle East and Africa. “African carriers are well-positioned to support inter-regional traffic growth and capture market share by offering services that efficiently connect passengers and enable commerce within the continent.”

The 2021 Africa CMO also includes these projections through 2040:

• Airlines in Africa will grow their fleets by 3.6% per year to accommodate passenger traffic growth of 5.4% annually, the third-highest growth rate in the world.
• Single-aisle jets are expected to account for more than 70% of commercial deliveries, with 740 new planes mainly supporting domestic and inter-regional demand. In addition, African carriers are estimated to need 250 new widebodies, including passenger and cargo models, to support long-haul routes and air freight growth.
• 80% of African jet deliveries are expected to serve fleet growth with more sustainable, fuel-efficient models such as the 737, 777X and 787 Dreamliner, with 20% of deliveries replacing older airplanes.

Estimated demand for aviation personnel will rise to 63,000 new professionals, including 19,000 pilots, 20,000 technicians and 24,000 cabin crew members.

Commercial services opportunities such as supply chain, manufacturing, repair and overhaul are valued at $235 billion.

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OTHER NEWS

• MORGAN STANLEY
  – The White House is adopting a new air travel policy that relies primarily on vaccinations to advance the resumption of international air travel to the U.S. beginning in November.
  – Southwest Airlines walks back its plan to place unvaccinated staff seeking medical and/or religious exemptions on unpaid leave after the December federal deadline.
  – Southwest also announced a 10-year environmental sustainability plan in support of the airline’s overall goal of becoming carbon neutral by 2050.
• This is unbelievable:”Apple disclosed the M1 Pro transistor count to be at 33.7 billion, while the M1 Max bloats that up to 57 billion transistors.” Apple Announces M1 Pro & M1 Max: Giant New Arm SoCs with All-Out Performance
• What is AI? Morning Brew OK, now, what is 5G? Morning Brew
• Want to see how Airbus retrofits aircraft wings for installation of Sharklets? Airbus’ Sharklets: Ready for retrofit – YouTube Oh, you don’t know about how winglets work and what they do? Understanding Winglets; Drag; & How the Winglets Improve the Aerodynamic Efficiency on an Aircraft! – YouTube

Boeing to Add 767-300BCF Conversion Lines at GAMECO to Meet Strong Market Demand

• Boeing will open two new 767-300BCF conversion lines next year at GAMECO in Guangzhou, China
•  GAMECO will be the first MRO to convert both the 737-800BCF and 767-300BCF

Boeing and Guangzhou Aircraft Maintenance Engineering Company Limited (GAMECO) announced plans to create additional capacity for the 767-300 Boeing Converted Freighter (BCF) to help meet continued strong market demand.

The agreement, revealed by the two companies during a signing ceremony at the China International Aviation & Aerospace Exhibition in Zhuhai, will expand freighter conversion capacity at GAMECO, opening two new 767-300BCF conversion lines next year.

“It was mutually beneficial to continue building our relationship with GAMECO to provide additional conversion capacity for the 767-300BCF while supporting growth in the region,” said Peter Gao, vice president, Boeing Commercial Sales and Marketing for China. “GAMECO has demonstrated excellent execution on the 737-800BCF program. We know it will bring the same expertise and proven capability to help deliver our medium widebody freighter conversions to our global customers.”

GAMECO will be the first MRO in China to convert the 767-300BCF and the only MRO converting both the 767-300BCF and the 737-800BCF. Earlier this year, GAMECO announced plans to open a third 737-800BCF conversion line.

“GAMECO is very proud to extend its relationship with Boeing and their converted freighter program to include another aircraft type,” said Norbert Marx, general manager, GAMECO. “The introduction of the 767-300BCF program further grows GAMECO’s regional presence and enhances our strategic focus around meeting the strong customer demand. We will open the 767-300BCF conversion lines in our new hangar.”

Boeing forecasts 1,720 freighter conversions will be needed over the next 20 years. Of those, 520 will be widebody conversions with Asia carriers accounting for more than 40 percent of that demand. The 767-300BCF has more than 95 orders and commitments.

Learn more about the Boeing Converted Freighters and the complete Boeing freighter family here.

GAMECO, established in October 1989 at Guangzhou Baiyun International Airport, is a joint venture between China Southern Airlines Co. Ltd. and Hutchison Whampoa (China) Ltd. from Hong Kong that specializes in aircraft and airborne component maintenance, repair and overhaul. GAMECO provides comprehensive, high-quality and highly efficient services to customers, covering line maintenance, base maintenance, component repair and overhaul, aircraft engineering, and training and technical service of ground-support equipment.

Boeing Charitable Trust:

Boeing is committing $1 million from the Boeing Charitable Trust to assist with disaster recovery and relief efforts in the aftermath of Hurricane Ida, the company announced. This includes a $500,000 donation to the American Red Cross that will help to bring shelter, food, water, relief supplies and other assistance to hard hit areas across the South, including Louisiana, and the Northeast United States.

The remaining $500,000 will fund additional local organizations to help communities with short and longer-term needs such as clean up, repairs and rebuilding, including:

• $100,000 to Greater New Orleans Foundation to support cleanup and recovery efforts in and around the city of New Orleans
• $100,000 to Bayou Recovery Fund to support cleanup and recovery efforts along the Louisiana Gulf Coast
  $100,000 to World Central Kitchen to provide nourishing meals for communities in need
• $75,000 to Food Bank of South Jersey to provide emergency food resources to those in need
• $75,000 to Community Food Bank of New Jersey to support food distribution across the state
• $50,000 to Combined Arms to support military veterans and their families who have been impacted by Hurricane Ida

Boeing Forecasts China’s 20-year Commercial Airplane Market Valued at Nearly $1.5 trillion:

Boeing forecasts that China’s airlines will require 8,700 new airplanes by 2040, valued at $1.47 trillion, to meet expanding commercial air travel demand. The 20-year forecast reflects the China market’s rebound and further evolution of its airline business models. Boeing shared the China forecast as part of the 2021 Commercial Market Outlook (CMO), the company’s long-term forecast of demand for commercial airplanes and services.

China’s economic fundamentals lay the foundation for healthy air traffic increases, including 4.4% annual economic growth and a middle-income demographic that will double by 2040, according to the CMO. By 2030, China’s domestic passenger market will exceed intra-European traffic; by 2040, China’s domestic traffic is expected to also exceed air travel within North America.

The CMO also forecasts that China’s civil aviation industry will require more than 400,000 new aviation personnel by 2040, including pilots, technicians and cabin crew. Boeing’s commitment to China involves investing in people who will power the future of aviation, such as training nearly 100,000 Chinese aviation professionals and employing more than 2,500 Boeing employees. Across its businesses, training, supply chain and other activities, Boeing’s presence and partnerships in China contribute more than $1.5 billion annually to the economy.

“The rapid recovery of Chinese domestic traffic during the pandemic speaks to the market’s underlying strength and resilience,” said Richard Wynne, managing director, China Marketing, Boeing Commercial Airplanes. “In addition, there are promising opportunities to significantly expand international long-haul routes and air freight capacity. Longer term, there is the potential for low-cost carrier growth to further build on single-aisle demand.”

The 2021 China CMO includes these projections through 2040:

• Annual passenger traffic growth of 5.4%, similar to the 2020 forecast.
• Two-thirds of deliveries supporting China’s aviation industry growth and one-third of deliveries for fleet replacement, which will move airlines toward more sustainable, fuel-efficient airplane models.
• Single-aisle jets account for nearly 6,500 deliveries; widebody deliveries, including passenger and cargo models, will total 1,850, accounting for 44% of demand by value. According to the CMO, a nearly $1.8 trillion commercial aviation services market opportunity exists in the region.

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ASTRONICS

Astronics Corporation, a provider of advanced technologies for global aerospace, defense and other mission critical industries, announced it was awarded a $19 million order from Collins Aerospace (“Collins”) for business jet connectivity equipment to be delivered in 2022. The order is a follow-on to the approximately $11 million order announced in February 2021.

The growing fleet employing Collins’ system is building customer recognition and confirming that LuxStream provides unparalleled high-speed world-wide connectivity that delivers a broad variety of remote conferencing services and streaming entertainment.

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VISION SYSTEMS

SAFRAN

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OTHER NEWS

• You need to see this because: “FLYR Labs has developed a deep learning platform called “Revenue Operating System” that ingests a whole host of data provided by the airline — bookings, accounting data, searches, capacity — as well as information like weather or promotions to predict demand, revenue and, most importantly, to set the price of the airline ticket that the consumer ultimately sees.” WestCap and Peter Thiel-backed FLYR Labs closes $150M Series C | TechCrunch This is going to be big because their deep learning platform will replace humans in aviation and many other businesses!
• Curious about the mobile apps used? Here is a great graphic with the answer – The World’s Most Used Apps, by Downstream Traffic

AVIATION RECOVERY IMPACTED BY LACK OF GLOBAL SYNCHRONISATION, INDUSTRY LEADERS STATE DURING RECORD-BREAKING VIRTUAL BROADCAST

FlightPlan: C-Suite Week, hosted by Inmarsat and APEX, aired a series of ‘no holds barred’ discussions with the CEOs of Qatar Airways, AirAsia, United Airlines, TAP Air Portugal and IATA

Exclusive interviews were viewed by 6,500 viewers from 80 countries around the world, with thousands more expected to watch the videos on demand

26 JULY 2021: The biggest names in global aviation came together at FlightPlan: C-Suite Week for a series of exclusive ‘no holds barred’ interviews with leading BBC World News reporter Aaron Heslehurst, touching on the most immediate and pressing issues facing air travel in 2021.

The latest edition in the popular FlightPlan online broadcast, developed by Inmarsat Aviation and APEX (Airline Passenger Experience Association), attracted a record-breaking audience of 6,500 from 80 countries worldwide last week, with thousands more expected to watch the videos on demand.

FlightPlan: C-Suite Week aired interviews on five consecutive days with:

• Akbar Al Baker, Group CEO, Qatar Airways.
• Tony Fernandes, CEO and Founder, AirAsia Group.
• Scott Kirby, CEO, United Airlines and APEX/IFSA Board of Governors Chair.
• Christine Ourmières-Widener, CEO, TAP Air Portugal.
• Willie Walsh, Director General, IATA (and former CEO of IAG).

Several pertinent topics were debated during the daily ‘power hour’ broadcasts, including leadership lessons from the industry’s biggest ever crisis, how airline recovery has been stilted by a lack of global synchronization, and the importance of addressing sustainability challenges. The interviews also explored the ability of digitalization to accelerate profitable growth for airlines and meet evolving passenger needs.

Summarizing the event, Philip Balaam, President of Inmarsat Aviation, said: “FlightPlan was launched by Inmarsat and APEX during the very onset of the global pandemic, bringing the global aviation industry together for much needed debates, discussions and direction at a time of great uncertainty.

“The response has been phenomenal, with a combined audience of approximately 17,000 for the first three editions, reinforcing its position as the industry’s biggest virtual broadcast. FlightPlan: C-Suite Week delivered insight into the difficult decisions faced by leaders over the past 18 months. It also uncovered many impressive future-facing initiatives underway – from sustainability to passenger experience – that will not only secure a strong recovery for airlines, but also ensure a bright future for the industry at large.”

Never waste a crisis

FlightPlan’s C-Suite line-up shared valuable leadership lessons from steering their aviation businesses through the COVID-19 travel crisis over the past 18 months. Al Baker shared his biggest learning for leaders: “there should always be a plan B and even sometimes a plan C of how to conduct your business in dire circumstances like the pandemic.”

For Kirby, a major learning has been the critical importance of customer experience. “Many of us in aviation have a new focus and commitment to change the customer experience. To use what we went through – the worst crisis in history – as a transformative moment to really make it better for customers,” he said. Kirby’s ambition is to turn flying into something passengers truly enjoy as part of the journey, “so that their vacation starts the moment they leave the house, instead of once they land at the other side”.

Unilateralism has stilted recovery

Across the board, the interviewees agreed that industry recovery has been stilted by unilateralism and a lack of global synchronization. For Fernandes, co-ordination between different governments “has been a failure… because every country has their own vaccine rules and entry requirements”. Lamenting the lack of standardised policies, he called for closer co-ordination between airlines and airports, noting: “we’re symbiotic; we need each other”.

Walsh echoed the challenges of a siloed international approach: “You would have expected the EU to have corralled everybody together and say, look, ‘we’ve got to demonstrate to everybody now that we are in this together’. That’s probably been the most disappointing thing for me. If we’ve struggled to see a political and a coordinated political response from the EU, I think we’ve no hope of expecting to see a coordinated political response globally.”

Sustainability in aviation

With climate change rapidly rising up the consumer, corporate and policy agenda, sustainability was highlighted as an urgent priority for the airline industry to ensure its right to operate in the future. As OurmieÌres-Widener told viewers: “Our contribution to the future of the climate is key.”

Walsh backed further political focus on environmental performance, noting: “The equipment that we have on aircraft today is so advanced and yet we’re still operating the way we were back in the 1960s. It’s a scandal on environmental grounds and is making our operations so much more inefficient than they could be.” He speculated, “Why isn’t it being done? Because there’s a lack of political will to address the issue.”

Kirby agreed that policies are needed to drive forward ambitious targets, but that “we have to be real about the art of the doable,” noting that Net Zero by 2035 would come at the expense of reliable power supplies. He shared insight on United’s efforts to invest in Boom aircraft that run on sustainable fuel – part of the airline’s commitment to reach Net Zero without carbon offsetting.

Qatar Airways is also underway with its sustainability drive, according to Al Baker, who said: “We are prepared to look after our environment, and this is why we are continuously investing in aeroplanes that are more fuel-efficient.” 

Readiness for digital transformation

OurmieÌres-Widener mused that while the crisis brought many challenges to the industry, it has also confirmed several trends – one being the huge opportunity for airlines that embrace digitiation. She said that the “full digital experience” is no longer just a buzzword, but a reality that airlines need to offer.

Digitization is well underway for AirAsia, too, with data sitting at the heart of Fernandes’ vision to make the brand more than just an airline. “We have much better customer data than Uber,” from credit card to loyalty information, Fernandes explained. His ambition is to make AirAsia “a travel company like Expedia,” encompassing services from currency to grocery delivery. “We’re trying to turn the AirAsia customer on the plane into a customer on the ground, keeping them with us before and after their flight,” he said.

To watch all interviews on demand, visit: flightplan.wavecast.io.

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FLIGHTAWARE

FlightAware, the largest global provider of flight information and actionable aviation intelligence, announced the launch of Aviator, the ultimate flight tracking suite for piston airplane pilots and operators.

FlightAware’s Aviator is an inexpensive subscription-based software, accessible via the web and iOS. Any subscriber can register multiple aircraft, including rentals, and unlock indispensable features like Ready To Taxi™, Premium Weather and Map Layers, Surface Visualizations, FBO Scheduling, and ETAs automatically updated via FlightAware’s powerful machine predictive technology, Foresight™.

“Aviator was created by FlightAware pilots to share advanced flight tracking features with other piston airplane pilots. Over the years we’ve gone from flight tracking to becoming the central data hub for both the business and commercial aviation industries. With Aviator, we’re bringing a product with robust tools and processes developed for the most sophisticated flight departments and commercial airlines, right to the GA pilot.” said Daniel Baker, FlightAware CEO.

With Aviator family, friends, and FBOs can receive alerts from preflight and taxi out, through landing and taxi in.

Communications are coordinated as stakeholders stay informed. From surface visualizations displaying taxiing planes and surface movements to comprehensive airborne flight tracks, Aviator also provides monthly history reports for pilots and operators to review critical flight details.

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MORGAN STANLEY

Airlines: Corporate Travel Survey 2H2021: US is leading the recovery

High number of Covid cases and slow lifting of travel bans have postponed the recovery of corporate travel budgets to post 2022. The shift of travel volume to virtual has stabilized at 27% by 2022 and is expected to be 19% by 2023. US travel is benefiting from a quicker corporate recovery vs EU and Asia.

We conducted an online survey of ~140 corporate travel managers between June 30-July 12, who represent over US$8B of typical annual travel spend. Around 67% are headquartered in the US, 19% in Europe, and 14% in Asia/Other, and their travel budgets are allocated relatively similarly. This survey is the fourth wave since the Covid pandemic started a stabilization, which we find interesting to track changes in trends as we return to normal.

Travel budgets recovery has slowed down, with the US leading the recovery. Travel budgets are expected to be down an average of 39.2% vs 2019 in 2H21 compared to the 57.3% drop seen in the 1H21. The pace of recovery will increase in 2022 with budgets expected to be down only 17.5% on average, which is 2pp worse than our previous survey in March. The US will lead the recovery as 17% of US based respondents replied that their 2H21 travel budgets would be increasing vs 2019, compared to 10% of Europeans and 0% of Asian/Other responders. In addition, while 62% of European responders expected cuts of greater than 50%, only 45% of US counterparts expected the same.

Passenger volumes continue to deteriorate, though expectations are for higher fare increases. Similar to travel budgets, our latest data suggests 2022 volumes vs 2019 will be down 21.1%, a 2.7pp decrease vs March. Once again Europe will be the laggard with 57% expecting a decline of 30-50% compared to just 25% of US respondents expecting the same. Expectations of air fares have improved, with 2.8% increases in 2022 (up 80bps vs March).

The shift to virtual meetings trend seems to be stabilizing. Despite some deterioration in corporate travel expectations for 2021/2022, the shift to virtual meetings in 2022 remains at 27% level, with 2023 expected to be 19%, on average.

Time and cost cited as key issues for switch to virtual, with environmental concerns higher in Europe. More efficient use of employee time and cost reductions were cited by 74% and 72% of respondents, respectively, as at least a top 3 reason for replacing travel with virtual options. Perhaps unsurprisingly, European companies considered environmental concerns as the most important reason to replace corporate travel. 25% of Europe based travel managers cited this as their number 1 reason compared to just 5% of US counterparts.

Conclusions for Europe: We think US based respondents’ more positive outlook for travel could be an indication of a faster recovery once restrictions ease. Nonetheless, we still do not anticipate corporate air travel in Europe to recover before 2023/2024, and higher environmental concerns on travel support our thesis. All in all, weaker demand and 27% convergence of travel into virtual events should negatively affect legacy carriers (Lufthansa, IAG and Air France-KLM, in that order) more than low cost carriers (easyJet, Ryanair and Wizz). We continue to prefer Ryanair and easyjet (OW), over Lufthansa and AF-KLM.

Conclusions for US Airlines: From a US perspective, it is encouraging to see the results lead the rest of the world given the higher pace of vaccinations and the growing momentum toward return to the office, which will likely lead corporate travel. We note that most airlines have already seen a notable pickup in corporate travel from -80% vs. 2019 in April to -60% in May and expected to be -40-45% in September.

Furtherrmore, the Airlines expect the momentum to continue to pick up in 3Q/4Q and their internal surveys show that permanent substitution of corporate travel will be as little as 5% (in DAL’s survey down from 8% a quarter ago) to zero (for UAL), vs. our ~20-25%. Perhaps all this tells us is that there is still significant uncertainty out there on how much the corporate tide will rise as we re-open and whether that will stop 20%, 10% or 0% below 2019 levels or even exceed 2019 levels. What is clear to us is that the initial rising tide (returning to 70-80% of normal corporate) is nowhere close to being priced into the US Airline stocks today (esp. Legacies like DAL and UAL) and none of this debate really impacts the investment decision on the LCC/ULCC stocks (JBLU, ALK, ALGT, ULCC, LUV) that have limited exposure to corporate. As a result, we continue to remain bullish on the US Airline stocks. We will closely watch the progression of the COVID variant but if we do not see incremental lockdowns or steps backward by Labor Day (Sept 7), we expect corporate travel to recover quickly after that.

“The U.S. will not lift international travel restrictions at this time due to the Covid-19 Delta variant. The U.S. announced earlier this week that it will not lift any existing travel restrictions “at this point” due to concerns over the highly transmissible Covid-19 Delta variant and the rising number of U.S. coronavirus cases. According to a White House official, cases of Covid-19 are rising within the U.S., particularly among those who are unvaccinated and appear “likely to continue to increase in the weeks ahead.” This comes a week after the Biden Administration said U.S. borders with Canada and Mexico will remain closed to non-essential travel until at least August 21st, despite Canada announcing it will reopen its borders to fully vaccinated Americans beginning on August 9th. In early June, the Biden Administration formed expert working groups with Canada, Mexico, the European Union and the U.K. to determine how to best reopen international borders safely; however, the White House official stated that any decision to lift restrictions “has to be a sustainable decision” going forward. Although international travel restrictions remain in place for now, many U.S. airlines stated that the Delta variant has not had much of an impact on domestic leisure bookings. During an earnings conference call, UAL’s management said the company hadn’t seen “any impact at all on bookings” due to the Covid-19 Delta variant, and ALK’s management noted that they have seen “no slowing signs of demand,” but that they are continuing to watch trends carefully.”

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BOEING

Boeing released its first Sustainability Report. In the report, the company shares its vision for the future of sustainable aerospace, establishes broad sustainability goals and highlights environmental, social and governance (ESG) progress in alignment with global sustainability standards.

“In September 2020, amidst a global pandemic, Boeing formed a Sustainability organization dedicated to advancing our ESG efforts across the enterprise. As we continue on this journey, we are pleased to publish our first comprehensive report, focused on stakeholder responsiveness and data transparency,” said Boeing Chief Sustainability Officer Chris Raymond. “We know there’s still work to do and are committed to communicating our progress and holding ourselves accountable to ensure the aerospace industry is safe and sustainable for generations to come.”

Boeing’s sustainability efforts are organized around four key pillars: people, products and services, operations and communities. In 2020, highlights across these four pillars included:

Establishing six broad new sustainability goals in alignment with our key sustainability priorities and stakeholder interests.

Defining the company’s vision for the future of sustainable aerospace through fleet renewal, network operational efficiency, renewable energy and advanced technology.

Committing to deliver commercial airplanes capable of flying on 100% sustainable fuels by 2030.

Partnering with Etihad Airways on the 2020 ecoDemonstrator program, which tested sustainable technologies on one of the airline’s new 787-10 Dreamliners.

Implementing digital engineering tools on the T-7A Red Hawk program, achieving a 75% increase in first-time engineering quality and an 80% reduction in assembly hours.

Advancing flight tests for Cora, an all-electric, self-flying air taxi developed by Boeing and Kitty Hawk joint venture Wisk.

Responding to COVID-19 by executing airlift missions to transport supplies, providing community vaccination sites and minimizing air travel health risks through the Confident Travel Initiative.

Establishing a 20-member Racial Equity Task Force to represent diverse viewpoints and amplify all voices at Boeing.

Setting 2030 environmental performance goals to reduce emissions, waste, water use and energy consumption.

Achieving net-zero carbon emissions at work sites, while reducing energy consumption by 12%, water use by 23%, solid waste by 44% and hazardous waste by 34%.

Attaining the ENERGY STAR Partner of the Year Award for Sustained Excellence every year since 2010.

Contributing $234 million in community giving, working with 13,400 community partners and volunteering 250,000 hours.

United Aviate Academy has selected Boeing to provide a comprehensive suite of training tools, materials and digital solutions to develop and provide early career training to United Airlines’ next generation of pilots. The companies commemorated the five-year training agreement with a ceremonial signing event at EAA AirVenture.

The comprehensive training package of courseware and multimedia materials spans Boeing’s portfolio of service offerings, including its Jeppesen and ForeFlight solutions, and provides United Aviate Academy with the tools to help cadets master key concepts and information needed to confidently and safely pilot aircraft.

“We are pleased to extend our long-term partnership with Boeing to help train the next generation of United pilots,” said Bryan Quigley, United’s senior vice president of flight operations. “Boeing’s unique suite of tools and materials will help provide effective training for Aviate pilots who are working to meet future air travel demands and uphold United’s high standards of safety and excellence.”

The agreement includes:

• Initial cadet assessment materials with accompanying online courses and e-books, supporting higher program completion rates through analytics of data-driven assessments
• Jeppesen Academy courseware, textbooks and digital learning materials for private, instrument, commercial, multiengine and instructor training
• The ForeFlight Mobile integrated flight app for pilots equipped with Jeppesen NavData®, electronic charts and Airway Manuals, a one-stop shop for flight tasks like routing flights, planning and filing flight plans, managing electronic charts and maps, and gathering destination and weather information
• Pilot supplies including Bose headsets, computers, student flight bags, logbooks and more
• GPS NavData for the United Aviate Academy fleet

“We are fully committed to providing United Aviate Academy—and all of our customers—with tailored, high-quality training solutions that enhance safety and meet the learning and development needs of pilots from all backgrounds,” said Chris Broom, vice president of Training Solutions, Boeing Global Services. “By leveraging our broad portfolio of solutions, we offer customers tremendous value in delivering efficient, effective training throughout the pilot training life cycle.”

Following the agreement signing, Boeing further demonstrated its support for the program and its commitment to diversity by presenting Delia Nina Nava with a scholarship to United Aviate Academy to join a future pilot training class. Nava is a Hispanic woman from Houston with a passion for aviation and aspirations of becoming an airline pilot. She is a graduate of Ross Shaw Sterling Aviation High School and a student at the University of Houston.

Boeing produced their first sustainability report this week and you can read it here: Boeing: 2021 Sustainability Report Interestingly, they want to deliver commercial planes flying on sustainable fuels by 2030. Here is another bit of data on the report: Boeing’s 1st Sustainability Report: Here’s What You Need To Know – Simple Flying

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OTHER NEWS

• A lot of folks have quotes but this one is really significant and important. Steve Jobs, a person we have forever respected, had a remark we think makes a lot of sense: “You have to work hard to get your thinking clean to make it simple. But it is worth it in the end because once you get there, you can move mountains!” (Editor’s Note: Also, we should probably mention that Robin Williams said something that means a lot to us as well: “Being a famous print journalist is like being the best-dressed woman on the radio.”)
• If Boeing regressions have you wondering, you need to read this story because there are a number of downward changes that might be a clue to what is going on and what might happen! Boeing ($BA) News: Talent Loss to Amazon, SpaceX Hurts Turnaround Prospects – Bloomberg

SITA

Global air transport IT provider SITA has released its annual Corporate Social Responsibility (CSR) report, which reveals that, despite the pandemic, the company remains set to become a certified carbon neutral organization by or before 2022. This achievement is well ahead of common airline industry milestones, such as 2030 and 2050, or those of the Paris Agreement.

SITA’s objective to reduce its contribution to climate change is being realized through the company’s Planet+ program. The program aims to define emissions, measure them working with independent environmental consultants RSK Group, and consistently reduce the environmental impacts of operations and business travel year-on-year while complementing those actions with offsetting initiatives.
Through Planet+, SITA reduced overall emissions by 48% in 2020, equaling some 11,423 CO2 tons. This has been achieved through several initiatives such as switching to renewable or partially renewable energy, opting for green energy providers, optimizing office floor footprint, reducing electricity consumption with more energy-efficient devices, and reducing business travel for internal meetings through the use of collaborative online tools.

In 2020, SITA also offset 100% of its emissions for the first time. SITA’s carbon offset program is managed through Natural Capital Partners, a leading global provider of sustainable environmental offset emission programs. The 2020 offset program was not applied purely to business travel emissions as in previous years but was extended to include all operational emissions reported and audited in Scope 1 (direct and controlled emissions), Scope 2 (electricity) and Scope 3 (upstream and downstream emissions, including those generated by SITA employees working from home). Dr. Edna Ayme-Yahil, VP Head of Communications, Brand & Sustainability, said: “As part of our overall commitment to reduce carbon emissions across the air transport industry, we were keen to lead by example by taking real, concrete steps to reduce our impact on the environment. This is paying off and SITA is well on track to meeting our goal of becoming a certified carbon neutral company by or before 2022.”

In 2019, SITA announced its commitment to becoming a certified Carbon Neutral Company by 2022, under the CarbonNeutral® Protocol. This protocol requires organizations to achieve net-zero carbon dioxide emissions by defining emissions related to operations, measuring them, reducing them, and then offsetting the remaining ones that have not been reduced or removed through verified carbon offset projects aligned with the United Nations Sustainable Development Goals (SDGs).

With around 2,500 customers, SITA’s solutions drive efficiencies at more than 1,000 airports, and facilitate secure and seamless border crossings for over 60 governments, while delivering the benefits of connected aircraft to customers of 18,000 aircraft globally.

As well as managing its own economic, environmental, and social impacts, SITA’s CSR report cites an immediate shift in early 2020 to support its air transport industry customers through the pandemic, ensuring business continuity and maintaining normal service levels.
SITA pivoted to meet urgent industry demands for a healthy, safe, and frictionless passenger experience – to reassure passengers and enable ‘COVID-compliant’ journeys. In addition, the company responded to requirements from airlines, airports, and governments for agility, resilience, efficiencies, and cost containment – modifying and adapting their solutions to areas vital to recovery and survival.
Soon to achieve its ambition to be carbon neutral, SITA continues to also drive the industry to be more sustainable with solutions that aim to reduce carbon emissions.

Since 2014, SITA has achieved and maintained ISO14001:2015 (Environmental Management Systems – EMS) certification – a milestone for organizations committed to sustainable operations – in seven of its main office locations

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LATAM

The LATAM Group, through its subsidiaries in Chile and Peru, together with the International Air Transport Association (IATA) have come together to carry out the pilot of the IATA Travel Pass digital application, allowing passengers to organize and manage travel requirements complying with what is required by the authorities on international flights more efficiently and expeditiously.

IATA Travel Pass works based on the biometric information of the passenger’s passport, the results of laboratories in agreement and the joint information of the governments.

“This is great news for our passengers who voluntarily want to join. Having more automated and contactless processes is a new reality for everyone, and this pilot with IATA Travel Pass supports this transformation for LATAM and for the entire industry,” declared the Vice President of Clients of LATAM Airlines Group, Paulo Miranda.
For his part, Peter Cerdá, IATA Regional Vice President for the Americas, adds: “We are pleased that LATAM trusts the IATA Travel Pass. Tools of this type are essential to restart the airline industry and reconnect the world, which allows to reopen borders safely and smoothly, giving governments the guarantee that travelers have complied with health requirements, speeding up migration processes and simplifying the experience for passengers.”

The pilot phase, which is voluntary for the passenger, is expected to take place between June 14 and July 2 on the following routes:
● Lima-Miami
● Lima-Santiago de Chile
● Santiago de Chile-Lima
● Santiago de Chile-Miami

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AIRBUS

AIRBUS confirmed plans to produce 45 A320 Family aircraft per month in 4Q21, increasing to 64 by 2Q23 and possibly 70 by 2024 and 75 by 2025; A220 production will rise from five to six per month in 1H22 and possibly to 14 by 2025. A350 will increase from five to six by 2H22; A330 will stay at two.

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BOEING

Boeing’s 737MAX-10, the largest airplane in the 737 MAX family,  completed a successful first flight. The airplane took off from Renton Field in Renton, Washington, at 10:07 a.m. on June 18th and landed at 12:38 p.m. at Boeing Field in Seattle. “The airplane performed beautifully,” said 737 Chief Pilot Capt. Jennifer Henderson. “The profile we flew allowed us to test the airplane’s systems, flight controls and handling qualities, all of which checked out exactly as we expected.”

The flight was the start of a comprehensive test program for the 737-10. Boeing will work closely with regulators to certify the airplane prior to its scheduled entry into service in 2023. “The 737-10 is an important part of our customers’ fleet plans, giving them more capacity, greater fuel efficiency and the best per-seat economics of any single-aisle airplane,” said Stan Deal, president and CEO of Boeing Commercial Airplanes. “Our team is committed to delivering an airplane with the highest quality and reliability.”

The 737-10 can carry up to 230 passengers. It also incorporates environmental improvements, cutting carbon emissions by 14 percent and reducing noise by 50 percent compared to today’s Next-Generation 737s.

(Editor’s Note: The Boeing 737-10 is the biggest Boeing 737 with some of the following features: Wingspan 117ft – 10 in., Length 143 feet – 8 in., Passengers, 230, new engines and landing gear, 66 in. longer fuselage, modified doors and wings.)

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The US TRAVEL ASSOCIATION forecasts business travel will not recover until at least 2024.

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OTHER NEWS

• We were sad to learn that Chris Longridge, past Boeing executive and really nice guy, passed away on June 15th this past week. Chris was one of the smartest and nicest people to have ever worked in aviation!
• Interestingly, reports The Seattle Times; “Tim Keating, Boeing’s executive vice president of government operations, the company’s chief lobbyist and political strategist in Washington, D.C., and a leading figure on the jet maker’s leadership council, is ‘no longer with the company’.” No data was given on the reason for his release…

• Successful evaluation of distributed propulsion system propeller performance.

Toulouse, Paris, 10 June 2021 – Airbus, Safran, Dassault Aviation, ONERA and Ministry of Transport are jointly launching an in-flight study, at the end of 2021, to analyse the compatibility of unblended sustainable aviation fuel (SAF) with single-aisle aircraft and commercial aircraft engine and fuel systems, as well as with helicopter engines. This flight will be made with the support of the “Plan de relance aéronautique” (the French government‘s aviation recovery plan) managed by Jean Baptiste Djebbari, French Transport Minister.

Known as VOLCAN (VOL avec Carburants Alternatifs Nouveaux), this project is the first time that in-flight emissions will be measured using 100% SAF in a single-aisle aircraft.

Airbus is responsible for characterising and analysing the impact of 100% SAF on-ground and in-flight emissions using an A320neo test aircraft powered by a CFM LEAP-1A engine. Safran will focus on compatibility studies related to the fuel system and engine adaptation for commercial and helicopter aircraft and their optimisation for various types of 100% SAF fuels. ONERA will support Airbus and Safran in analysing the compatibility of the fuel with aircraft systems and will be in charge of preparing, analysing and interpreting test results for the impact of 100% SAF on emissions and contrail formation. In addition, Dassault Aviation will contribute to the material and equipment compatibility studies and verify 100% SAF biocontamination susceptibility.

The various SAFs used for the VOLCAN project will be provided by TotalEnergies.

Moreover, this study will support efforts currently underway at Airbus and Safran to ensure the aviation sector is ready for the large-scale deployment and use of SAF as part of the wider initiative to decarbonise the industry. It will also contribute to the ultimate goal of achieving 100% SAF certification in single-aisle commercial aircraft and the new generation of business jets.

Sustainable Fuel

Air France-KLM, Total, Groupe ADP and Airbus Join Forces to Decarbonize Air Transportation and Carry Out The First Long-Haul Flight Powered By Sustainable Aviation Fuel (SAF) Produced in France.

At 3:40 p.m., Air France Flight 342 took off from Paris-Charles de Gaulle airport’s Terminal 2E for Montreal with its tanks filled for the first time with sustainable aviation fuel produced in Total’s French plants.

This flight is a tangible result of the four groups’ shared ambition to decarbonize air transportation and to develop a SAF supply chain in France, prerequisite to the generalization of their use in French airports.

No modifications to storage and distribution infrastructure, aircraft or engines are required to incorporate biofuels. Their gradual introduction worldwide should significantly reduce CO2 emissions from air transportation, in line with the United Nations’ Sustainable Development
Goals.

The biofuel used for this flight was made from waste and residue sourced from the circular economy. Total produced the SAF from used cooking oil at its La Mède biorefinery in southern France and at its Oudalle factory near Le Havre, without using any virgin plant-based oil.

This first 100% French SAF received ISCC-EU certification from the International Sustainability & Carbon Certification System, an independent organization that guarantees sustainability. The 16% blend on this flight avoided the emission of 20 tons of CO2. By developing and supporting France’s first industrial SAF production, Air France-KLM, Total, ADP Group and Airbus are paving the way for France to drive innovation in the energy and environmental transition. French legislation calls for aircraft to use at least 1% SAF by 2022 for all flights originating in France, ahead of the European ambition scheduled to gradually ramp up to 2% by 2025 and 5% by 2030, as part of the European Green Deal. To meet these requirements, Total will also produce SAF at its Grandpuits zero-crude platform near Paris as from 2024.

The flight also illustrates the synergy of the different drivers for reducing aviation’s environmental footprint, i.e., sustainable aviation fuel, latest-generation aircraft and electrification of ground operations. The Airbus A350 used for the flight consumes 25% less fuel than its predecessor. What’s more, the aircraft was serviced by the first 100% all-electric refueling truck, developed in France with Total expertise, and all of the ground support equipment used by Air France was fully electric powered. Air France-KLM is a pioneer in testing sustainable aviation fuels. KLM made its first SAF-powered flight in 2009. Since then, the Group has multiplied the number of innovative programs. Between 2014 and 2016, for example, it carried out 78 Air France flights powered by a 10% SAF blend in collaboration with a Total affiliate. These tests showed that the use of SAF had no impact on the reliability of airline operations. Air France-KLM intends to strengthen its leadership in SAF in the years ahead, while contributing to research on future generations of aircraft. In addition to this flight, Airbus is conducting several series of tests to certify airliners to fly with 100% SAF in the coming decades. Airbus has also installed SAF refueling stations at its industrial facilities so it can be used in production operations, as well as for aircraft deliveries. These installations contribute to Airbus’s ambition to decarbonize all of its industrial operations.

(Editor’s Note: Sustainable aviation fuel (SAF) is a blend of conventional aviation fuel (JET-A1) and biojet fuel made from waste and residue sourced from the circular economy (animal fat, used cooking oil, etc.). Biojet fuel has similar properties to JET-A1 and produces up to 90% fewer CO2 emissions over its lifecycle compared with the fossil equivalent.)

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LATAM Group

LATAM Group (“LATAM”) announced the expansion of its freighter fleet growth under which it now plans to add 10 Boeing 767-300 Boeing Converted Freighters over the next three years. This will bring the fleet size to up to 21 freighters by 2023. The first aircraft will be expected to begin operations in December 2021. The Group’s freighter fleet growth plan initially included four firm conversion orders with Boeing and another four conversion options. Two months after the initial announcement, LATAM has exercised the four options, eight planes, and the conversion of two additional Boeing 767-300ERs. This means that the freighter fleet will be comprised of up to 21 aircraft by the end of 2023. Upon completion of the plan the Group will have almost doubled its freighter capacity as well as reduced the average fleet age from 17 to 14 years. Growing from 11 to 21 freighter planes will enable the LATAM Group’s cargo subsidiaries to expand and reinforce their capacity to, from and within South America, and positioning the Group as the main freighter operator group in the region. The first eight airplanes have been allocated to markets that are critical for key customer segments.

LATAM also announced that it will use some of the 767-300ERs that are awaiting conversion under a hybrid format to benefit customers in the short term. The seats will be completely removed from three planes for this purpose in order to have a payload of up to 46 tons per flight. Two of these planes are already operational. The third one is expected to be available in the second quarter of 2021. Furthermore, LATAM is optimizing commonality across their fleet of 767-300 production and converted freighters to maximize capacity, including the ability to transport delicate goods.

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FTS

Qingdao Airlines announced that it is fully committed to
expand and accelerate the deployment of high-speed in-flight satellite Internet on its aircraft fleet. This follows the successful evaluation of the first commercial high-speed Internet flight trial in China that was launched by Qingdao Airlines on July 2020. This marks a major milestone in this groundbreaking collaboration project whereby FTS is supplying the Xstream™ high-speed satellite inflight system while TD Link Technology is providing internet service operations.

The Xstream™ system suite developed by FTS comprises of XstreamSAT™ satellite communication, XstreamLITE™ cabin WiFi, and XstreamOP™ cloud management platform. It is the first China developed IFEC system to receive all three major international airworthiness STC certifications from FAA, EASA and CAAC. The system is integrated with China Satcom’s ChinaSat-16 Ka-HTS satellites and is capable of providing up to 150 Mbps bandwidth between aircraft and ground. Over the past 10 months, the trial aircraft has flown more than 1,200 flights flawlessly with impeccable service, delighting Qingdao Airlines passengers with unprecedented inflight connected experience equivalent to ground 4G performance, with services such as movies, social media, live video broadcast, maps and e-commerce (with mobile payment).

FTS XStreamOP™ ground-based cloud management platform which has been in service since beginning trial has proven to be critical in ensuring service delivery with real-time monitoring of airborne systems, connectivity status, as well as consolidating all inflight data for ground analytics. This open cloud architecture enables the airline and service providers to integrate with airline backend IT to provide an efficient and easy-to-use method of managing all the on-
board internet equipment and services.

Although the coronavirus pandemic has brought far-reaching and fundamental impact to aviation, the China domestic air travel is leading the industry in terms of recovery and even growing beyond pre-COVID period. A spokesperson at FTS commented they are seeing more confidence, optimism and interest from domestic airlines on making long term investment on Inflight connectivity as they believe this is a pivotal enabler to drive digital transformation of passenger service, airline operations and auxiliary revenue from which airlines could benefit to achieve recovery and long-term sustainability.

The decision from Qingdao Airlines is not taken lightly especially in the current challenging climate. It came after rigorous scrutiny of trial results concluded that FTS system performance, reliability and benefits far exceeded airline expectations. Qingdao Airlines’ innovative and pioneering spirit has attracted strong endorsement and support from local government, CAAC and industry bodies. After carefully
weighing all these factors and firmly believing in the benefits of connected aircraft, the airline stood firm in its decision to go full steam and accelerate the fleet-wide adoption of inflight
connectivity.

In preparation for the accelerated fleet wide deployment, FTS is ramping up its operations and capabilities. It announced that it has obtained CAAC PMA certification and Part 145 maintenance and repair overhaul approvals for its range of components.

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Boeing

In observance of Asian American and Pacific Islander Heritage Month in the United States, Boeing announced the company is donating $1.1 million to organizations working to combat anti-Asian hate and promote justice, advance appreciation for AAPI history and culture, and fund community service projects and leadership development programs in communities across the United States.

“At Boeing, we know that being a truly equitable, diverse and inclusive company requires a commitment to our team members here at the company and in the communities where our employees and partners live and work. These investments build on Boeing’s longstanding commitment to supporting those in underserved and marginalized communities and recognizes the challenging issues currently being faced by the Asian American and Pacific Islander community,” said Tim Keating, Boeing’s executive vice president of Government Operations.

*Boeing’s contribution will support 17 national and local initiatives. Nonprofits receiving immediate grant funding include:

• Asian Americans Advancing Justice – $200,000
• Asian American Heritage Council of Central Florida (FL) – $10,000
• Asian American Pacific Islanders in Philanthropy – $10,000
• Asian Counseling & Referral Services (WA) – $75,000
• Asian Pacific American Network of Oregon (OR) – $10,000
• Asian Pacific Cultural Center (WA) – $10,000
• Little Tokyo Service Center (CA) – $35,000
• Asian American Youth Foundation (MO) – $15,000
• Neighborhood House (WA) – $100,00
• One America (WA) – $75,000
• Orange County Asian and Pacific Islander Community Alliance (CA) – $35,000
• Smithsonian Asian Pacific American Center – $250,000
• Society of Asian Scientists & Engineers – $50,000
• Stop AAPI Hate – $50,000
• Tacoma Community House (WA) – $90,000
• United Cambodian Community (CA) – $35,000

In 2020, Boeing invested more than $15.6 million to promote racial equity and social justice programs – including funding aimed at diversifying the aerospace pipeline.

(Editor’s Note: As Boeing hustles to evolve from the 21 month MAX crisis, quality problems and the management of the repair operations of the 787, 737 MAX, 767 Tanker, are to be reviewed by the government. Boeing (and the FAA as well) are to be reviewed by the US House Committee on Transportation. These reviews are probably based on the continuing issues we have all seen on these planes. Stay Tuned on this one because if issues continue, it will be quite an impact for both organizations and products … especially with any new management and their decisions!)

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Other News

• A friend sent us a very interesting video on why planes do not fly over Tibet – Do you know why? Here is the answer: 4 dangerous reasons why airplanes don’t fly over Tibet – YouTube
• Bet you didn’t know that plastic could be turned into jet fuel! Plastic waste can now be turned into jet fuel in one hour – The Academic Times

Inmarsat, a global mobile satellite communications provider, has been crowned the ‘World’s Leading Inflight Internet Service Provider’ for the fourth year in a row at the World Travel Awards 2020.

The prestigious accolade was announced following a year-long search for the world’s top travel, tourism and hospitality brands, with the latest edition of the World Travel Awards attracting a record number of votes from across the world by industry professionals and members of the public.

Inmarsat once again retained its title in recognition of its market-leading GX Aviation and European Aviation Network (EAN) inflight broadband solutions, which enable airline passengers to browse the internet, shop online, stream videos, enjoy social media and more seamlessly during their flights. Inmarsat airline customers include Lufthansa, Qatar Airways, Air New Zealand, British Airways, Iberia, Singapore Airlines, AirAsia and Virgin Atlantic.

Philip Balaam, President of Inmarsat Aviation, said: “Last year was particularly challenging for the aviation industry, which faced its biggest crisis to date as a result of the global COVID-19 pandemic. In response, we have been working closer than ever with our airline customers, both old and new, to support their evolving needs as they navigate through the storm and head towards a future recovery. It is uplifting, therefore, to receive an award where the industry itself helped to determine the winner. This accolade reinforces our position as the global market leader and is dedicated to our talented employees and partners for their continued hard work and dedication over the past year, even in the toughest of circumstances.”

Inmarsat crossed a number of important milestones last year as part of its extensive, fully-funded technology roadmap. This included the commercial service introduction of GX5, Inmarsat’s most powerful satellite to date, last month. Conceived, designed and procured principally to meet the needs of aviation customers, GX5 delivers approximately twice the capacity of the entire existing GX satellite fleet (GX1-GX4) combined. It is essential to support rapidly growing demand for airline and business aviation connectivity in Europe and the Middle East. 

Inmarsat’s technology roadmap will see seven further satellite launches by 2024: five in geostationary orbit – adding speed, capacity and resilience – and two in highly elliptical orbit, which will enable the world’s only commercial mobile broadband service in the commercially and strategically critical Arctic region.

Other highlights of 2020 included the development of an advanced new lightweight, low drag terminal for GX Aviation in partnership with GDC Technics and the launch of GX+ North America in collaboration with Hughes, bringing unrivalled inflight Wi-Fi to North American airlines and passengers.

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NEW SST IN DEVELOPMENT

It is not surprising that IFEC news and information is pretty quiet during the pandemic. The equation is simple: less people; less flights; less travel; and aircraft delivery delays or cancellations all result in less demand for IFEC in the short term.

Having said that, it appears there is one aviation area that is experiencing a resurgence in development and/or exploration – supersonic flight. Companies like Boon Overture and Aerion are not sleeping, and you might ask, what has this to do with IFEC? Well, probably not much in the immediate future; however, as folks improve the speed of flying we would expect a future of more advanced, smaller, lighter, better performing IFEC.

We say “expect” because we have little or no information on this future subject, but we were wondering what we might see … and the word “might” is used here since weight and size on these eventual airplanes will be a big issue. To give you a better idea, lets first see what Wikipedia says about the SST subject:

Wikipedia – “A supersonic transport (SST) is a civilian supersonic aircraft designed to transport passengers at speeds greater than the speed of sound. To date, the only SSTs to see regular service have been Concorde and the Tupolev Tu-144. The last passenger flight of the Tu-144 was in June 1978 and it was last flown in 1999 by NASA. Concorde’s last commercial flight was in October 2003, with a November 26, 2003 ferry flight being its last airborne operation. Following the permanent cessation of flying by Concorde, there are no remaining SSTs in commercial service. Several companies have each proposed a supersonic business jet, which may bring supersonic transport back again.”

Further, Wikipedia notes: ”For all vehicles traveling through air, the force of drag is proportional to the coefficient of drag (Cd), to the square of the airspeed and to the air density. Since drag rises rapidly with speed, a key priority of supersonic aircraft design is to minimize this force by lowering the coefficient of drag. This gives rise to the highly streamlined shapes of SSTs. To some extent, supersonic aircraft also manage drag by flying at higher altitudes than subsonic aircraft, where the air density is lower.”

Next, we tried to find out more about the Concorde IFE hardware and the British Science Museum noted: “Brochure, ‘For your entertainment in flight : Supersonic Stereo : Five stereo programs specially produced for Concorde’. Part of collection of in-flight material gathered by Alastair Greenlees who flew on Concorde in January 1978 and with BOAC from Manchester Airport.” Admittedly, a multichannel IFE audio service was quite good since  flight time was reduced by roughly 50%. Concorde In-flight Entertainment Brochure | Science Museum Group Collection

Also we found a wonderful website that features the history and present news on the heritage Concorde here: Heritage Concorde
which features a great video about the plane that you can watch here: (3) UK Concorde first nose move – Heritage Concorde – Project Salute – YouTube. And yes, if yes, if you want more Concorde “stuff’, check out this Etsy site: Concorde Supersonice Transport Gray Travel Folder Inflight | Etsy

We should mention that the IFE we found on the Concorde was some 6 channels of audio entertainment, and having noted that, we expect the “future” products from the likes of Boom and Aerion will reflect the growing demand for real-time connectivity. And we firmly believe that satcom and Wi-Fi connectivity/streaming to PEDs will be a must. We’ve been asking ourselves what engineering and certification requirements there will be for a satcom radome aboard an SST – stay tuned on this one! There is one certainty, whichever IFEC offering is selected, it will be the ‘brightest and shiniest’ available! After all, why put old technology on such a technologically advanced aircraft?!

Articles have also noted that the earlier supersonic designs had to minimize weight and space because of increased drag and limited aircraft engine performance, newer technology will surely provide more and better personal space than its SST predecessor.

The passenger capacity of the new SST appears to be less than half of the Concorde’s. However, with the current trend toward smaller load factors this may end up being an advantage for future operators.

Here are some interesting links on the aviation future:

• Aerion Finishes Wind Tunnel Tests Of Its Future Supersonic Aircraft – Simple Flying
• The Race For Speed: What Supersonic Passenger Planes Could We See By 2030? – Simple Flying
• The FAA Facilitates The Return Of Commercial Supersonic Flight – Simple Flying
• FAA Special Flight Authorization For SST
• Supersonic Jets Get a Boost as FAA Issues Rule to Spur Tests – Bloomberg

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AIRBUS

The airframer delivered 566 commercial aircraft in 2020 vs 863 in 2019:

A220 Family: 38 vs 48 (2019)
A320ceo Family: 15 vs 91 (2019)
A320neo Family: 431 vs 551 (2019)
A330ceo: 6 vs 12 (2019)
A330neo: 13 vs 41 (2019)
A350: 59 vs 112 (2019)
A380: 4 vs 8 (2019)
A220: 64
A320 Family: 296
A330: 2
A350:

Airbus recorded 383 new orders (268 net):
A220: 64
A320 Family: 296
A330: 2
A350: 21

Aircraft Cancellations – 115 (2020), backlog stood at 7,184 aircraft on December 31.

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BOEING

The company recorded 184 new orders in 2020 (-471 net of cancellations/conversions).

737 MAX: 112
737NG: 18
767: 11
777: 13
787: 29
747: 1

And they delivered 157 commercial aircraft in 2020 compared to 380 in 2019:

737 MAX: 27 vs 57
737NG: 16 vs 70
767: 30 vs 43
777: 26 vs 45
787: 53 vs 158
747: 5 vs 5

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OTHER NEWS

This topic may be up your alley – What is Quantum Computing. If it’s not, but you are interested, below is a free 27 page report. As a quote from the article: “Soon, quantum computers could change the world. Quantum computing is the processing of information that’s represented by special quantum states. By tapping into quantum phenomena like “superposition” and “entanglement,” these machines handle information in a fundamentally different way to “classical” computers like smartphones, laptops, or even today’s most powerful supercomputers.” CBINSIGHTS has a real understanding of the subject … we think! What Is Quantum Computing?

The radical design includes six removable fuel cell propeller propulsion systems

Toulouse | December 15, 2020– It is unlike anything seen on today’s runways: the “pod” configuration—one of several being conceptualised as part of ongoing R&D on the ZEROe concept aircraft—features a series of stand-alone propulsion systems based on hydrogen fuel cell technology. Today, Airbus is conducting studies to determine how scalable the “pod” configuration, among others, could be to large commercial aircraft.

Toulouse | December 10, 2020–Airbus has concluded its global Quantum Computing Challenge (AQCC) announcing the winning team of the competition. The Italian team at Machine Learning Reply – a leading systems integration and digital services company part of Reply Group – won the challenge with their solution to optimise aircraft loading.

Airlines try to make the best use of an aircraft’s payload capability to maximise revenue, optimise fuel burn and lower overall operating costs. However, their scope for optimisation can be limited by a number of operational constraints.

By creating an algorithm for optimal aircraft cargo loading configurations, taking these operational constraints -payload, centre of gravity, size and shape of the fuselage- into account, the winners of the competition proved that optimisation problems can be mathematically modelled and solved through quantum computing.

“The Quantum Computing Challenge is testament to Airbus’ belief in the power of the collective, to fully harness and apply quantum computing technology to solve complex optimization challenges facing our industry today,” said Grazia Vittadini, Chief Technology Officer, Airbus. “By looking at how emerging technologies can be used to improve aircraft performance and boost innovation, we are addressing the advanced flight physics problems that will redefine how the aircraft of tomorrow are built and flown, and ultimately shape industry, markets and customer experiences for the better.”

The winners are set to start working with Airbus experts, as early as January 2021, to test and benchmark their solution in order to assess how the mastering of complex calculations can tangibly impact airlines, enabling them, as predicted, to benefit from maximised loading capabilities.

With operations being made more efficient, the overall number of required transportation flights could be reduced, having a positive impact on CO2 emissions, thereby contributing to Airbus’ ambition for sustainable flight.

The AQCC was launched in January 2019, to drive innovation across the full aircraft life-cycle. By developing strong partnerships with the global quantum community, Airbus is taking science out of the lab and into industry, by applying newly-available computing capabilities to real-life industrial cases.

INMARSAT

The ‘Passenger Confidence Tracker’ is the world’s largest survey of airline passengers since the pandemic began. It reflects the views and attitudes of 9,500 respondents from 12 countries across the globe about the future of flying.

While the majority of passengers (60%) feel satisfied with the aviation industry’s response to the challenges of COVID-19, the survey reveals areas of opportunity for airlines to encourage passengers back to the skies.

Philip Balaam, President of Inmarsat Aviation, said: “With safety and reputation becoming even more important to today’s flyers, there is a clear need for airlines to differentiate themselves in order to encourage passengers back onto their flights. Digitalization lies at the heart of both; minimizing critical touchpoints in the passenger journey to improve confidence, all the while keeping passengers connected and entertained.”

Only a third (34%) of passengers surveyed have taken a commercial flight since the pandemic began, and this appears to have sparked a shift in attitudes to flying. Four in ten passengers (41%) expect to travel less by any means and a third (31%) plan to fly less. This sentiment is even higher among Asian passengers, with 58 per cent in India and 55 per cent in South Korea planning to travel less in the future.

Despite this change, there are early signs that travelers are beginning to feel confident about flying again; almost half (47%) of passengers surveyed expect to feel ready to fly within the next six months. There has also been a significant rise in fractional aircraft ownership.

The study reveals significant variance across the world when it comes to passenger confidence about flying in light of the pandemic1. Hungarian and British fliers are most confident, with 26 per cent and 16 per cent respectively saying they would get on a flight today. Asian passengers are less so; over a third (35%) of South Koreans expect not to fly again until COVID-19 disappears.

Passengers are currently more fearful of catching the virus abroad than on the plane3. In fact, many think they are at a greater health risk in other environments, such as the gym and public transport4. Recent IATA research supports this, suggesting people are more likely to be struck by lightning than catch COVID-19 on a plane.5

While passengers largely feel confident at passport control, security and communicating with cabin crew, they are less comfortable visiting the toilet inflight, and being in close proximity with others. The study indicates that solutions that minimize touchpoints and reduce interactions would go furthest in addressing pain points – such as contact-less payments inflight (83%) and staggered security queues (84%).

When it comes to ensuring personal safety, passengers have disregarded the automatic 14-day quarantine6. Instead, the results show a desire for a consistent set of measures to make the journey safer – such as mandatory face coverings, or a 48-hour test before travel.7

Almost half of passengers (44%) say that reputation is now a more significant factor when choosing an airline than it was pre-pandemic. It has therefore never been more vital for airlines to differentiate and gain a competitive edge.

The research highlights that improving inflight experience is one way to achieve this. From extra legroom (43%) to free baggage (39%), value added services are becoming increasingly important to passengers returning to the skies.

Digital solutions are fast-becoming essential to an enjoyable inflight experience, with almost four in ten (39%) agreeing that onboard Wi-Fi matters more today than ever before. This is most significant for Indian and Brazilian passengers.8 Destination status alerts, real time luggage tracking and pre-clearing immigration on the plane – all enabled by cabin connectivity – are among the top new aspects of the journey passengers want to keep post-pandemic.9

Inmarsat is transforming the global aviation industry by bringing complete connectivity to every aircraft and flight path in the world. Passengers can browse the internet, stream videos, check social media and more during flights, with an onboard connectivity experience on par with broadband services available on the ground. In addition, Inmarsat’s flight deck solutions combine cutting-edge satellite technology with secure IP broadband connectivity for enhanced operational efficiency and safety.

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CARLISLE IT

Carlisle Interconnect Technologies (CIT) announced that customers in the United Kingdom and Europe can now purchase RF microwave cable assemblies online directly from its Blackburn UK facility. The website’s Cable Configurator feature allows customers to shop for and create their own RF assembly custom built for their specific application needs.

Customers now have instant access to pricing information and can buy products online with direct shipping to their location. This new eCommerce offering simplifies the purchasing process and helps speed-up turnaround times.

Since 1999, CIT’s Blackburn facility has delivered quality and cutting-edge technology in the field of standard and custom RF cable assemblies, RF test and measurement devices, RF coaxial connectors, harnesses, and custom copper assemblies. These products are designed to meet the unique challenges of customers in the Military & Defense, Aerospace, Test & Measurement, Medical, and Industrial markets.

“Our Blackburn location has built a strong reputation for both high-performance solutions and the support we provide our customers,” said Peter Lewis, Director of Operations and Finance–Blackburn. We are continuing to evolve our new web store to better serve our customers and provide easier access to the supplies they need to create the next breakthrough that drives their business forward, for this technology is necessary, an internet of things network is helpful to various business industries that can help with this.

Visit CIT’s European webstore to shop for and purchase RF cables from CIT’s Blackburn facility.

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BOEING

The Boeing Company named Jinnah Hosein (today’s IFExpress image) as the company’s vice president of Software Engineering, effective immediately. In this newly created role, Hosein will report to Greg Hyslop, Boeing chief engineer and senior vice president of Engineering, Test & Technology, and will focus on further strengthening Boeing’s focus on software engineering across the enterprise. “The continued advances in software makes excellence in software engineering an imperative for our business,” said Hyslop. “Jinnah will be charged with defining and leading Boeing’s strategy for software engineering, which includes providing capabilities, technologies, processes and secure and accurate systems to meet the needs of all our customers across the entire product life cycle.” Hosein will lead a new, centralized organization of engineers who currently support the development and delivery of software embedded in Boeing’s products and services. The team will also integrate other functional teams to ensure engineering excellence throughout the product life cycle. “Safety, quality and integrity underpin the mission of our software engineering team, and building on this solid foundation, Jinnah will be a transformational leader for Boeing,” said Dave Calhoun, Boeing president and CEO. “Jinnah’s broad experience and fresh perspective will elevate our performance and accelerate the important work we’ve already begun in this area.”

Hosein brings extensive experience as a software engineering leader across several innovative, high-tech companies. He joins Boeing after serving as vice president of Software Engineering for Aurora, a self-driving vehicle company, in Palo Alto, California. He led the company’s software organization for the development of those vehicles and developed Aurora’s high-integrity software life cycle to deploy autonomous architecture to on-road vehicles.

Previously, Hosein held leadership roles at SpaceX, where he led software development for Falcon, Falcon Heavy, Dragon, Crew Dragon and other flight vehicles, and at Tesla, where he helped develop autopilot software. In addition, he served as Google’s director of software engineering for cloud networking and was one of the original members of Google’s Site Reliability Engineering team.

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GOGO

Gogo, a global provider of broadband connectivity products and services for aviation, announced its financial results for the quarter ended September 30, 2020.

• BA results improved sequentially, reflecting continuing industry recovery from impact of COVID-19.
• Total revenue of $66.5 million; Net loss of $8.9 million; Adjusted EBITDA(1) of $30.2 million.
• ATG aircraft online reached 5,577 with average monthly service revenue of $2,996, down 2% and 6%, respectively, from their pre-COVID-19 quarterly peaks.
• Cash and cash equivalents were $117.5 million as of September 30, 2020 compared to total cash of $156.3 million as of June 30, 2020.
• On November 6, 2020, Gogo entered into an agreement to issue $50 million of its 9.875% Senior Secured Notes due 2024 to provide buffer liquidity.
• The sale of Commercial Aviation to Intelsat (the “Transaction”) remains on track to close before the end of the first quarter 2021. Gogo has cleared the Hart-Scott-Rodino antitrust process and received all foreign antitrust approvals, with FCC and CFIUS clearance and one foreign telecommunications approval still required.
• Gogo has more than $800 million in federal tax NOLs and interest expense carryforwards which will reduce income tax expense in the future.

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GALGUS

Galgus raises 2.5 million euros to finance its growth and boost its international expansion. The startup Galgus has developed a technological solution that optimizes the operation of Wi-Fi networks by providing intelligence to their access points, increasing performance by 400%, and improving user experience. Galgus’ patented solution is used daily by more than one million people worldwide when they connect their smart devices to the Internet while traveling by road, air, rail, or sea transportation, or while staying in a hotel or attending a congress, among others.

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OTHER NEWS

• If music is a big deal to you, perhaps an iPhone app that knows songs can help out when you hear one you don’t know … and want to! How to Identify Music With Your iPhone or iPad
• However, if documentary films are the break you need, here are 20 linked in MESSY NESSY. Yea, I know, never heard of it or them? Anyway, they are all different and if you are having a weird day, try them out! Can’t Sleep? Here’s 20 Free Documentaries to Soothe the Mind
• Want a prediction? OK, here’s one: The next technology jump in power chargers is here – it is based on GaN (Gallium Nitride). What Is a GaN Charger, and Why Will You Want One? (It might be a good thing for aviation is why we have noted it here!)
• Want to see an incredible single engine plane flight over the Austrian Alps? GoPro: Scenic Flight over the Austrian Alps – YouTube
• This is only for artists (and so called artists) – All Bob Ross episodes (403 shows/paintings) are available online here: Watch Every Episode of Bob Ross’ The Joy Of Painting Free Online: 403 Episodes Spanning 31 Seasons | Open Culture

This week there has been a lot of news about the aviation market forecast.

Boeing Forecasts Challenging Near-Term Aerospace Market with Resilience in Long Term

• Near-term industry challenges impact demand for commercial airplanes and services
• Over 10 years, Boeing Market Outlook shows resilient $8.5 trillion total market

Boeing (10/6/20) released its annual forecast for the commercial and defense aerospace market, reflecting the impact of the COVID-19 pandemic and Boeing’s view of near-, medium- and long-term market dynamics. The 2020 Boeing Market Outlook (BMO) projects that the commercial aviation and services markets will continue to face significant challenges due to the pandemic, while global defense and government services markets remain more stable.

“While this year has been unprecedented in terms of its disruption to our industry, we believe that aerospace and defense will overcome these near-term challenges, return to stability and emerge with strength,” said Boeing Chief Strategy Officer Marc Allen.

The BMO forecasts a total market value of $8.5 trillion over the next decade including demand for aerospace products and services. The forecast is down from $8.7 trillion a year ago due to the impact of the COVID-19 pandemic. Airlines globally have begun to recover from a greater than 90% decline in passenger traffic and revenue early this year, but a full recovery will take years, according to the outlook.

The 2020 Boeing Market Outlook includes projected demand for 18,350 commercial airplanes in the next decade – 11% lower than the comparable 2019 forecast – valued at about $2.9 trillion. In the longer term, with key industry drivers expected to remain stable, the commercial fleet is forecasted to return to its growth trend, generating demand for more than 43,000 new airplanes in the 20-year forecast time period.

The BMO also projects a $2.6 trillion market opportunity for defense and space during the next decade. This spending projection reflects the ongoing importance of military aircraft, autonomous systems, satellites, spacecraft and other products to national and international defense. This demand continues to be global in nature with 40 percent of expenditures expected to originate outside of the United States.
While near-term commercial services demand is lower, the BMO forecasts a $3 trillion market opportunity for commercial and government services through 2029, with digital solutions emerging as a critical enabler as customers focus on leaner operations to adjust to future market demand. Life cycle services and support will help customers scale their operations to meet efficiency and cost objectives aligned to market recovery trends.

As the impact of the pandemic continues, Boeing is taking action to reshape its business operations to adapt to the new market reality and become more resilient for the long term. This business transformation includes every element of Boeing’s enterprise, including infrastructure, overhead and organization, portfolio and investments, supply chain health and operational excellence.

Also released today, the 2020 Commercial Market Outlook (CMO), an annual 20-year forecast addressing the market for commercial airplanes and services, projects an increase in the share of deliveries replacing older passenger aircraft that are being retired in an accelerated replacement cycle, especially in the first decade.

“Commercial aviation is facing historic challenges this year, significantly affecting near- and medium-term demand for airplanes and services,” said Darren Hulst, vice president, Commercial Marketing. “Yet history has also proven air travel to be resilient time and again. The current disruption will inform airline fleet strategies long into the future, as airlines focus on building versatile fleets, networks and business model innovations that deliver the most capability and greatest efficiency at the lowest risk for sustainable growth.”

The commercial forecast includes:

• Over the next 20 years, passenger traffic growth is projected to increase by an average of 4% per year.
• The global commercial fleet is expected to reach 48,400 by 2039, up from 25,900 airplanes today. During this period, Asia will continue to expand its share of the world’s fleet, accounting for nearly 40% of the fleet compared to about 30% today.
• Single-aisle airplanes such as the 737 MAX will continue to be the largest market segment, with operators projected to need 32,270 new airplanes in the next 20 years. Single-aisle demand will recover sooner due to its key role in short-haul routes and domestic markets as well as passenger preference for point-to-point service.
• In the widebody market, Boeing forecasts demand for 7,480 new passenger airplanes by 2039. Widebody demand will be affected by a slower recovery in long-haul markets – typical after air-travel shocks – as well as uncertainties from COVID-19’s impact on international travel.
• Air cargo demand, a relative bright spot in 2020, is expected to grow 4% annually and generate further demand for 930 new widebody production freighters and 1,500 converted freighters over the forecast period.

Airplane demand, 2020-2039
Airplane type
Seats
Total deliveries
Regional jets
90 and below
2,430
Single-aisle
90 and above
32,270
Widebody

7,480
Freighter widebody
———
930
Total
———
43,110

The global airplane fleet will continue to generate demand for aviation services, including parts and supply chain; engineering, modifications and maintenance; training and professional services; and digital solutions and analytics. The served market for commercial services is valued at $1.6 trillion, and $1.4 trillion for government services.
“Boeing is focused on making sure that the right services solutions are available to help our customers and industry navigate the downturn and scale their operations accordingly as near-term demand trends upward. For example, low-cost digital solutions can help manage some of the most critical and dynamic aspects of operations, such as crew scheduling,” said Eric Strafel, vice president, Boeing Global Services Strategy.

Around the world, the long-term need for commercial pilots, maintenance technicians and cabin crew remains robust. Boeing’s 2020 Pilot and Technician Outlook forecasts that the civil aviation industry will need nearly 2.4 million new aviation personnel between now and 2039.

The Commercial Market Outlook is the longest-running jet forecast and is regarded as the most comprehensive analysis of the commercial aviation industry. The CMO and other Boeing market forecasts can be found at https://www.boeing.com/market.

More from Boeing:

Boeing and Ethiopian Airlines recently launched their 40th humanitarian delivery flight when the airline’s new 787-9 Dreamliner departed Everett, Wash., carrying more than 20,000 pounds of humanitarian supplies. The shipment, including supplies for health care and family needs, will be distributed to hospitals, clinics and charities in the Addis Ababa region.

“Ethiopian Airlines has been deeply involved in transporting critical COVID-19 supplies to support communities during these difficult and challenging times,” said Kagnew F. Asfaw, vice president ET Holidays & Digital Sales, Ethiopian Airlines. “Building on our history of collaboration in humanitarian flights, we are partnering with Boeing to bring home health care supplies. We would like to thank the Ethiopian community and several organizations in Seattle for their generosity and support for Ethiopian communities across the world during the global pandemic.”

“We are honored that Boeing is able to assist customers like Ethiopian Airlines as they transport critical medical supplies and support their local communities through the Humanitarian Delivery Fight program, especially during a challenge as significant as the COVID-19 pandemic,” said Cheri Carter, vice president of Boeing Global Engagement. “We are grateful to Ethiopian Airlines for their enduring commitment to the Humanitarian Delivery Program.”
Humanitarian supplies on the flight were provided by three charitable partners in Seattle: Resolute Health Outreach (RHO), the Ethiopian National COVID-19 Response Task Force of Seattle and Embuaa Family. They contributed supplies ranging from face masks, wipes and sterile gloves to exam tables, bassinets, medicine and more.

“Over the past 10 years, RHO has donated 200 tons of medical equipment to Ethiopia,” said Dr. Richard Solazzi, board chair at Resolute Health Outreach. “This would not be possible without the help and cooperation of Ethiopian Airlines and Boeing. We are grateful for their commitment to this humanitarian project.”

The Ethiopian National COVID-19 Response Task Force is led by Prime Minister Abiy Ahmed of Ethiopia, in partnership with Ethiopian embassies and diaspora communities around the world. “After COVID-19 came to Ethiopia, the Ethiopian community in the U.S. decided we needed to do something,” said Pastor Berhanu Waldemariam, chairman of the Seattle branch of the Ethiopian National COVID-19 Response Task Force. “We have collected these items and hospital equipment to help the Ethiopian government and people stay connected through partners such as Ethiopian Airlines and Boeing.”
Some of the medical supplies, clothing and hygiene products will be provided to the Mary Joy Foundation, which helps women and youth access skills and training to rise out of poverty. “Even during the COVID-19 crisis, it amazes me that people never shy away from helping others in need,” said Sister Zebider Zewdie, CEO of the Mary Joy Foundation. “This medical equipment will save countless lives and help people protect themselves from disease.”

The Humanitarian Delivery Flight Program was launched in 1992 as a collaboration between Boeing and its customers to transport humanitarian supplies assistance around the world on newly delivered airplanes with otherwise empty cargo holds. To date, there have been over 200 humanitarian delivery flights. More than 1.6 million pounds of critical supplies have been delivered since the start of the program.

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We understand IATA (International Air Transport Association) now predicts a 66% drop in traffic forecast (previously 63%) because of recent travel downcasts.

ATAG announced that the airline industry could loose 46 million jobs because of Covid-19 – 87.7 million jobs normally supported.

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OTHER NEWS

• OK, this is mentally challenging but the logic of Crypto understanding its implications of Crypto state are very scary, and, Bitcoin and Ethereum are a very big change. Why? Because crypto states would have power over nation states! The Crypto State? | City Journal
• Yes, the atomic motion of graphene can generate power: This is friggin cool! – Imgur
• The folks at Synthesis have a good starter on a series they are doing in the introduction of AI: “We begin a series devoted to a specific machine learning problem that is often supplemented by the use of synthetic data: object detection” – Object Detection with Synthetic Data I: Introduction to Object Detection – Synthesis AI

FlightPath3D

FlightPath3D announced that it won the ‘Preferred App’ award and was joint winner of the ‘Best Innovation’ award at Airbus’s First Online Hackathon. In addition to Airbus, several airlines judged and selected the award winners.

FlightPath3D President Duncan Jackson said, “We integrated duty-free merchandising, advertising, and the ability to buy with a payment solution into our map. 3rd party apps used our destination content, street maps, and flight tracker to augment their already highly- functional apps.”

Jackson adds, “Now more than ever, our industry needs to realize the potential of digital transformation. There is synergy in our app community, and we observed our map being integrated into more services, and more services using our API features than any other app.”

“From July 7th to 9th, Airbus organized the first Online Hackathon, designed to develop On Board Digital Solutions on an Airbus Open Software Platform to support better operations in a post-COVID world – part of their #KeepTrustInAirTravel initiative. I’m immensely proud of our team who worked round the clock to show what we could do.”, says FlightPath3D CEO Boris Veksler.

Veksler continues, “We leveraged our HTML/WebGL streaming 3D map and via our Open API platform integrated 3rd party content into our map, and vice versa provided map features into 3rd party apps. The innovation we achieved is linked to the openness of the Airbus platform, and to the eco-system of App developers that are compatible with the platform.”

Click on the link to learn more about their Map API Features

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Airbus

Airbus is expanding its sustainable aviation fuel (SAF) operations, now including aircraft deliveries from its site in Hamburg, Germany. Air Transat took delivery of two brand new A321LR on lease from AerCap. Both used a 10 per cent sustainable aviation fuel blend to fly the aircraft from Hamburg to Montreal, Canada, non-stop.

Airbus has already successfully established SAF flights out of Hamburg with its Beluga transport aircraft since December 2019. This commercial delivery is another milestone that underlines Airbus’ continuing commitment to minimizing air transportation’s environmental impact – which includes becoming the first aircraft manufacturer offering customers the option of receiving new jetliners with sustainable fuel in their tanks. Such delivery flights have been available since 2016, starting from the Airbus headquarters production facility in Toulouse, France, followed by Mobile, Alabama, USA. Airbus offers this option as part of its strategy to promote the more regular use of sustainable fuels within the aviation industry. The fuel for Air Transat’s A321LR aircraft delivered from Hamburg was supplied by Air bp and produced by Neste.

Airbus and Air Transat have a long history of cooperation on environmental affairs. Airbus supported the airline to launch its environmental program 13 years ago and both have worked together on environmental projects such as fuel efficiency. Air Transat has been operating Airbus single-aisle and widebody aircraft since 1999.

“Sustainability and efficiency are essential for our customers and for Airbus. Sustainable aviation fuel developments will play a key role in reducing the environmental footprint of the aviation industry. By using sustainable aviation fuels on delivery flights with partners like AerCap and Air Transat, who are flying the aircraft from Hamburg to their Canadian home-base nonstop, we take concrete action to contribute to a more sustainable aviation future,” said Christian Scherer, Chief Commercial Officer Airbus. “We are very pleased to be a part of this historic milestone, working together with our partners at Airbus and with our long-time customer, Air Transat, to help them meet their sustainable growth ambitions,” said Philip Scruggs, President and Chief Commercial Officer of AerCap. “AerCap is committed to facilitating the move towards more sustainable air travel underpinned by its target to transition its fleet to approximately two-thirds new technology aircraft by 2021.”
“It is an honor for us and a sign of confidence from Airbus to be its first customer to take advantage of this new delivery option at its Hamburg plant,” said Jean-François Lemay, President and General Manager, Air Transat. “This initiative is part of our commitment to reducing our own carbon footprint while contributing to the achievement of the airline industry’s ambitious decarbonization targets.” Both of these delivery flights will be carbon-neutral because the kerosene fossil fuel portion will be offset by the purchase of carbon credits.

“We are proud to be the first Canadian carrier to operate carbon-neutral flights, and we will continue to pursue our commitment to providing our passengers with a travel experience that takes account of our environmental footprint,” Mr. Lemay continued.

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Boeing

Boeing announced a number of services orders and agreements to support international customers, streamline their operations and enhance their future growth. These supply chain solutions will simplify customers’ asset and maintenance management, inventory and operating costs, while improving parts availability. The agreements for Boeing’s digital solutions will provide cost savings fleet-wide, enhance airline crew situational awareness and increase operational efficiency.

“As airlines and operators continue to respond to the current challenges facing the global air travel industry, our partners are moving forward, integrating creative solutions to continue connecting people around the world,” said Ted Colbert, president and CEO, Boeing Global Services. “Boeing is working closely with our customers around the world, delivering the customized solutions they need to improve operational efficiency, support their fleets, and reduce their costs.”

Supply chain agreements include:

• Alaska Airlines signed its largest consumable and expendable services agreement, with a multiyear agreement for solutions which include a Tailored Parts Package and Quick Engine Change kits. The agreement supports Alaska’s fleet of Boeing 737 airplanes and provides price and availability benefits that allow the airline to streamline its maintenance operations. The Tailored Parts Package consists of 2,900 part numbers. Throughout the term of this three-year agreement, Boeing anticipates the shipment of nearly 800,000 parts and four Quick Engine Change kits, which will be used to configure spare engines to allow for quick return of an airplane to service when an engine needs to be repaired or replaced.
• All Nippon Airways, the largest airline in Japan, announced a partnership with Boeing Global Services to install a 787-9 galley facility in its new training center to enhance crew training opportunities. All Nippon Airways also signed an agreement for ten 767 Quick Engine Change kits.

Agreements for data-driven solutions include:

• Xiamen Airlines, Japan Airlines, and All Nippon Airways have signed agreements to acquire the Optimized Maintenance Program that combines advanced data analytics with Boeing’s engineering expertise to help airlines achieve greater airplane availability and more efficient maintenance operations. To date, the Optimized Maintenance Program has been delivered to 24 airlines and approved by their local regulatory agencies to support a total of 2,519 Boeing airplanes across several models. Xiamen is the first airline in China to adopt the program.
• A number of customers in China, including Suparna Airlines, Zheijiang Loong Airlines, West Air, Guangxi Air, Urumqi Air, and Air Changan signed agreements for Boeing digital solutions that enhance operational efficiency, further streamline paperless operations in the flight deck, and optimize flight planning capabilities. Boeing provides tailored charting for more than 74 percent of the commercial aviation market; supplies digital navigation data to more than 58 percent of global airlines; and delivers flight deck solutions to 67 percent of the world’s airlines. Overall, two-thirds of all global airline flights use Jeppesen FliteDeck Pro electronic flight bag (EFB) navigation and charting applications on a daily basis.
• Vistara, an Indian full-service carrier and a joint venture of Tata group and Singapore Airlines, has added to their suite of Boeing Global Services crew solutions with a multiyear agreement for Crew Pairing to improve operational and readiness efficiency and reduce airline costs. The solution will help optimize crew planning operations for approximately 1,100 crew members across Vistara’s 40 Boeing and Airbus aircraft.

Boeing and Etihad Airways will use a 787-10 Dreamliner to test ways to reduce emissions and noise as part of the aerospace company’s ecoDemonstrator program before the airline accepts delivery of the airplane this fall. The collaboration, which includes extensive sound measurement testing with industry partners, builds on a strategic sustainability alliance Boeing and Etihad formed in November 2019. “This is the latest program under Etihad’s industry-leading strategic partnership with Boeing, focusing on innovating real-world solutions to the key sustainability challenges facing the aviation industry,” Etihad Aviation Group Chief Executive Officer Tony Douglas said. “The ecoDemonstrator program is founded on innovation and sustainability — and these are core values for Etihad Airways, Abu Dhabi and the United Arab Emirates. Etihad and Boeing see a great opportunity to collaborate and share knowledge to minimize the impact of aviation on the environment.” The ecoDemonstrator program utilizes commercial aircraft to test technologies that can make aviation safer and more sustainable now and into the future. The 2020 program, which will begin testing in August, is the first to use a Boeing 787-10. Boeing and Etihad will work with industry-leading partners, including NASA and Safran Landing Systems, to conduct aircraft noise measurements from sensors on the airplane and the ground. The data will be used to validate aircraft noise prediction processes and the sound reduction potential of aircraft designs, including landing gear, that are modified for quieter operations.

In addition, a flight will be conducted during which pilots, air traffic controllers and an airline’s operations center will simultaneously share digital information to optimize routing efficiency and enhance safety by reducing workload and radio frequency congestion.

Test flights will be flown on a blend of sustainable fuel, which significantly lowers aviation’s environmental footprint. The testing program is expected to last about four weeks before Etihad enters its Boeing 787-10 into service.

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Other News

• The 50 Most Innovative Companies can be found here: Ranked: The 50 Most Innovative Companies in the World We note #34 is Airbus – Congratulations!
• Alderman Investment Bankers have a pretty good graphic evaluation of aviation crisis so check out their downloads! DOWNLOADS – on The Impending Crisis in Com. Aviation!
• Farnborough Airshow is online (only) Monday – Friday, July 20 – 24. Register here: FIA Connect 2020 | Farnborough Its free!
• And speaking of free, the folks at Visual Capitalist do a great daily job of presenting a free graphic of something – Try it, we bet you will find it interesting – Subscribe Page – Visual Capitalist
• What do you think is the biggest commercial aviation failure? Why You Couldn’t Afford To Fly Concorde – YouTube
• If you are into flying, you might be interested in the “Magnus effect”! Looks like a lawn mower, but it actually flies using the Magnus effect, the same phenomenon that makes a curveball work in baseball – Album on Imgur

AND SOME SAD NEWS

We contacted a few people about the passing of Bill Baltra, long time IFE aficionado, and one noted: “He had contributed excellent services to MAS as VP for many years. I think he was a first employee of Matsushita Avionics Systems in USA and worked together with Yukio Sugimoto for a long time. He was funny, clever and gentle also always making people happy around him.” We think that note is the way we will always remember Bill!

Dublin | May 25, 2020– The “Global Commercial Aircraft Market – Airbus Vs. Boeing – Decennial Strategy Dossier – Duopoly of the Transatlantic Arch Rivals in the Decade from 2010 to 2019 – Strategy Focus, Evolution, Progression & the Path Ahead to the 2020s” company profile has been added to ResearchAndMarkets.com’s offering.

This Decennial Strategy Dossier, published at the turn of the decade, reviews the strategy evolution & progression for the duopoly of the transatlantic arch rivals in the Global Commercial Aircraft Market, namely, Airbus Vs. Boeing, through one of the most profitable decades for Commercial Aviation with the market continuing with its unbroken supercycle.

The rally has been driven by strong tailwinds emanating from a multitude of favorable, demand side factors led by robust growth in passenger air traffic, decent global macroeconomic growth and a favorable crude oil price environment prevailing through most of the decade which has bolstered airlines profitability as well as driven fleet expansion led by the LCC segment. Supply side factors, led by the development & introduction of new & re-engined aircrafts by the industry OEMs, incorporating new, high bypass turbofan engines have stimulated replacement demand with technological evolution by the industry, focused on performance, safety, comfort and optimized operating economics, further catalyzing fleet replacement activity across airlines groups globally.

This decennial review, thus, takes a macro view of the strategic developments and reviews the strategy pursuits & execution by Airbus & Boeing over the 2010-2019 period with a comparative longitudinal analysis. The report reviews & assesses the strategic significance as well as business impact & outcome of the strategic path for the companies at the turn of the decade with a look at the road ahead with initial, near term indicators painting a really grim picture for commercial aviation post the outbreak of COVID-19 pandemic, with most key global economies projected to go into recession for 2020.

Report Excerpt

The report analyzes and reviews the strategic path taken by the two respective aerospace industry behemoths through the decade ending in 2019 led by the Airbus’ pursuit of the aircraft re-engining strategy starting at the turn of the previous decade with the introduction of the re-engined A320neo aimed at countering any potential threat from the newest, scratch up aircraft of the twenty first century, the C-Series from Bombardier. This was followed by the game changer, product line extension strategy from Airbus which saw the introduction of the A321LR & the A321XLR respectively and got Airbus the lion’s share of the middle of the aircraft market amid Boeing’s ageing 757 & 767 fleets.

Boeing’s hasty counter move to introduce a new, re-engined 737 variant, termed MAX, to swiftly take on the Airbus’ A320neo move has been highly debatable from a technical & long term strategy perspective. The launch decision for the NMA program, expected way earlier, has been hugely delayed & has given too much leeway to Airbus to further consolidate its grip on the narrow body aircraft market across segments while Boeing is busy clearing up the mess it created for itself, under a new leader who comes to the helm to manage things in a very difficult & challenging market environment for commercial aviation post the outbreak of COVID-19 pandemic.

For Whom?

The report is a niche, key and vital information resource on Airbus & Boeing with its unique disposition & strategy focus and provides a macro view and comparative longitudinal analysis from a strategy perspective quickly. The report would be quintessential for those having strategic interest in the Companies, Commercial Aviation sector and will be especially useful for Key Decision-Makers, Program & Project Managers, Airlines Groups, Procurement Managers, Top Management of Industry Players & Other Companies, Industry OEMs, Suppliers, Vendors, MRO Services Providers and other Key Players in the Industry Value Chain. The report will also be useful for existing & potential Investors, Industry & Company Analysts, M&A Advisory Firms, Strategy & Management Consulting Firms, PE Firms, Venture Capitalists, Financing & Leasing Companies, Researchers and all those associated with the industry.

For more information about this company profile visit https://www.researchandmarkets.com/r/ygvyb3.

Mobile, Alabama | May 19, 2020– A new chapter in the development of Airbus’ U.S. production capabilities has begun with inauguration of the completed A220 commercial aircraft final assembly line (FAL) in Mobile, Alabama.

This 270,000-square-foot facility – which can produce both the A220-100 and A220-300 versions – houses five primary assembly stations where major airframe component assemblies come together for a completed aircraft.

An A220 first for JetBlue

Airbus’ production team in Mobile, Alabama also marked another milestone, welcoming the first component assemblies destined to become an A220 for JetBlue. This low-cost carrier will be the second airline customer receiving U.S.-built A220s when the aircraft is delivered in late 2020.

“The team is excited to start working in their new facility and to welcome a new customer,” said Paul Gaskell, president of A220 USA and Head of A220 Program in Mobile. “It’s a strong endorsement from JetBlue in this challenging time.”

An expanded U.S. industrial footprint 

Airbus announced plans in October 2017 for the addition of A220 manufacturing at Mobile – which is situated on the edge of Mobile Bay along the Gulf of Mexico.

The company began producing A220s at Mobile in August 2019 using space in an existing Final Assembly Line hangar for U.S.-built A320 Family aircraft, and in newly-constructed support hangars. With the start of operations in the dedicated A220 final assembly line, Airbus’ production site in Alabama has now officially doubled in size.

“The expansion of our commercial aircraft production in Mobile – from the A320 Family to the A220 – further solidifies Airbus’ standing as a truly global aircraft manufacturer, and confirms that Airbus remains an important part of the American manufacturing landscape,” added Gaskell.

Mobile, Alabama is the second assembly site for the A220, which is Airbus’ latest addition to its product line of single-aisle commercial aircraft. The A220’s primary production facility and program headquarters are located in Mirabel, Canada, where dedicated functions – including engineering expertise and support functions – also are situated.

As expected, our industry is continuing to contract as a result of the ongoing pressures from COVID-19. Today’s issue of IFExpress features announcements from industry vendors and OEMs about current and forecasted reductions in their work force. Airlines are starting to address what flying may look like with social distancing still in effect but after the Stay Home, Stay Safe orders are loosened. This is certain to be a continuing discussion in the weeks ahead. The IFExpress team will keep you appraised as this story continues to evolve.

Now let’s take a look at some of the announcements from the past seven days.

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GOGO

Gogo announced that effective May 4, it will furlough approximately 60% of its workforce and reduce compensation for most other employees as part of a broad-based cost reduction plan due to the impact of COVID-19. The furloughs will impact more than 600 employees across all three of Gogo’s business segments. The time and duration of those furloughs will vary based on workload in individual departments. Salary reductions will begin at 30% for the CEO, then 20% for the executive leadership team, and feather down from there. In addition, Gogo’s Board of Directors has agreed to reduce their compensation by 30%. Certain types of employees, such as hourly workers, will not have their compensation reduced. Approximately 60% of Gogo’s revenue comes from its two commercial airline segments. Passenger traffic on commercial airlines using Gogo’s service has declined 95% this month compared to the prior year, resulting in a projected 60-70% reduction in sales for the month of April. The remaining 40% of Gogo’s revenue comes from its business aviation segment which has seen a sharp decrease in flight activity. Additionally, since many business aircraft are flying less frequently, there has been an increase in requests for one-month account suspensions and a dramatic decrease in new plan activations for the month of April. “The health and safety of our employees and customers is our first and most important priority, but the long-term health of our business is also a critical focus area,” said Oakleigh Thorne, president and CEO of Gogo. “In March, we announced 16 levers that we can employ to dramatically lower our costs in order to ensure our long-term viability, and we believe we are implementing the appropriate measures to accomplish that goal.”

In addition to personnel actions, the Gogo 16-lever plan includes, among other actions, renegotiating terms with suppliers, delaying aircraft equipment installations, deferring purchases of capital equipment, reducing marketing and travel expenses and eliminating non-essential spend. “We established best- and worst-case scenarios and action plans against the 16 levers based on market conditions against those scenarios,” Thorne said. “Based on where the market is today, we believe these personnel actions are necessary, and if conditions worsen, we have additional levers to pull if needed.”

Gogo also announced that it has applied for an $81 million grant and a $150 million loan under the recently enacted CARES Act. If Gogo receives government assistance, it will modify the personnel actions announced to comply with the terms of that assistance. Prior to this announcement, Gogo has already implemented several cost-cutting measures related to personnel, including a hiring freeze, suspension of 2020 merit salary increases, and deferral of the CEO’s 2019 bonus. Gogo had $216 million cash on hand as of the close of business on April 20, 2020, including $22 million drawn under its revolving credit facility.

Gogo intends to provide an update on its response to the pandemic and share further details on the steps it is taking to strengthen its financial position when it hosts its first quarter 2020 earnings conference call. “The impact of COVID-19 on air travel, and a challenging economy in general, mean we have to make tough decisions, including implementing these essential cost reductions,” said Thorne. “I am proud of our Gogo employees, who have risen to the challenge to ensure that our business continues to operate smoothly and effectively during this difficult time.”

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BOEING

On April 21, 2020 Boeing announced key organization and leadership changes aimed at driving greater cross-company integration and continuous improvement; aligning enterprise services to current business conditions while increasing value; streamlining senior leadership roles and responsibilities; and preparing now for the post-pandemic industry footprint. The changes are effective May 1.

A newly formed group — Enterprise Operations, Finance & Strategy — will consolidate several important areas, bringing together teams responsible for manufacturing, supply chain and operations, finance, enterprise performance, strategy, enterprise services and administration. Led by Greg Smith, executive vice president, Enterprise Operations, and chief financial officer, this new global organization will embed operational excellence and consistent lean principles across Boeing and its supply chain, and restore production and supply chain health as Boeing and the broader aerospace industry recover from the COVID-19 pandemic.

Corporate Audit will join Smith’s new group and continue to report directly to the Boeing Board of Directors Audit Committee as it does today, providing independent, objective assurance and advisory services to improve company operations.

Jenette Ramos, senior vice president of Manufacturing, Supply Chain & Operations, will bring 34 years of Boeing experience, leadership and operational skills to a special assignment in support of Smith and Boeing President and CEO David Calhoun.

The company also is combining its legal and core compliance programs, including global trade controls, ethics and business conduct, into a single organization led by Brett Gerry, chief legal officer and executive vice president of Global Compliance. This approach will enhance Boeing’s already strong compliance and internal governance program through focused accountability for, and a more integrated approach to, Boeing compliance responsibilities. It also will help the company proactively address new legal and compliance obligations arising from an increasingly complex global regulatory environment.

To accelerate this important work and to build on the existing strength of its compliance and ethics program, Boeing soon will name a chief compliance officer who will be responsible for leading the company’s compliance, ethics and trade control activities. This person will report to Gerry, with a direct reporting line to Calhoun and the board’s Audit Committee on compliance and ethics issues.

Finally, Boeing Government Operations, led by Executive Vice President Tim Keating, will assume responsibility for the company’s Global Spectrum Management activities, which ensure the safe, efficient and compliant use of radio frequency spectrum in Boeing products and operations.

“I am confident these changes will drive greater alignment among our functions; better equip our commercial, defense and space, and services businesses to deliver on customer commitments in a changing marketplace; and support our continuous efforts to develop talent through challenging leadership assignments,” said Calhoun. “Special thanks to Greg, Brett, Tim and Jenette for taking on new leadership responsibilities.”

Coinciding with these organization changes, Diana Sands, senior vice president of the Office of Internal Governance and Administration, has decided to retire from Boeing later this year after nearly 20 years with the company and following a thorough transition of responsibilities. “Over the past two decades, Diana has played a key role in developing an industry-leading ethics and compliance program, served in several critical finance roles and been a strong advocate for advancing diversity and inclusion across the company,” said Calhoun. “The Boeing Board of Directors and I are deeply grateful for Diana’s leadership, integrity and dedicated service.”

Also from Boeing: 

On April 25th the company announced that it has terminated its Master Transaction Agreement (MTA) with Embraer, under which the two companies sought to establish a new level of strategic partnership. The parties had planned to create a joint venture comprising Embraer’s commercial aviation business and a second joint venture to develop new markets for the C-390 Millennium medium airlift and air mobility aircraft. Under the MTA, April 24, 2020, was the initial termination date, subject to extension by either party if certain conditions were met. Boeing exercised its rights to terminate after Embraer did not satisfy the necessary conditions. “Boeing has worked diligently over more than two years to finalize its transaction with Embraer. Over the past several months, we had productive but ultimately unsuccessful negotiations about unsatisfied MTA conditions. We all aimed to resolve those by the initial termination date, but it didn’t happen,” said Marc Allen, president of Embraer Partnership & Group Operations. “It is deeply disappointing. But we have reached a point where continued negotiation within the framework of the MTA is not going to resolve the outstanding issues.”

The planned partnership between Boeing and Embraer had received unconditional approval from all necessary regulatory authorities, with the exception of the European Commission.

Boeing and Embraer will maintain their existing Master Teaming Agreement, originally signed in 2012 and expanded in 2016, to jointly market and support the C-390 Millennium military aircraft.

Lastly, Boeing Dreamlifter Transports 1.5M Face Masks for COVID-19 Response

• Partnered with Prisma Health, Atlas Air and Discommon Founder Neil Ferrier to bring 1.5 million medical face masks to healthcare professionals in South Carolina
• Boeing Dreamlifter becomes the largest aircraft ever to land at Greenville-Spartanburg International Airport
• Additional airlift transport missions with the Boeing Dreamlifter and ecoDemonstrator are planned in the future

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OTHER NEWS

• This is scary – get your iPhone updated Flaw in iPhone, iPads may have allowed hackers to steal data for years – Reuters
• If you do not think air travel has changed much, Check this out! Air traffic and travel falls worldwide to to coronavirus: graphs, maps – Business Insider
• If you like BOSE, you will probably agree: “Nothing we tested was able to match the noise-reduction power of the Bose Noise Cancelling 700, our top pick for the best noise-cancelling headphones -” Best Noise-Cancelling Headphones 2020 | Reviews by Wirecutter
• Betcha you never saw this on a plane! 19 People Who Had Some Super-Cool Neighbors Onboard a Plane
• If you have enjoyed some of the video’s of Bill Gates talking about the coronavirus, you might like GatesNotes blog – sign up – its free Home | Bill Gates

Letter from the Editor

The stay-at-home orders have affected millions of people, resulting in unprecedented unemployment rates in the U.S. and Europe, which are rising higher and faster than they ever have before. Compared to a year ago, the global aircraft capacity in available seat-miles is currently down by approximately 59%. Add to this that IATA is forecasting airline losses to exceed $252 billion, which could easily be revised upward in the next few weeks. The understatement of the week is that COVID-19 is having a devastating effect on our industry.

Damage has been done, much like what we experienced after September 11, 2001, and the financial crisis of 2008 – but on an even greater, global scale and we may well have past the point of a V-shaped recovery. As those events changed how governments, businesses, and the public functioned; so will this forever change us as well.

What might we expect these changes to look like? It is not unreasonable to expect new procedures to be put into place to manage the risk of reinfection: body temperature scanners at airports, immunization passports for travelers on every flight – much like today’s security screening but focused on the traveler’s health. After 9/11 it took the flying public almost a decade to adjust to the changes in travel and accept the ‘new normal’. So it is not unrealistic to expect that it will take a while for passengers to embrace the travel process post COVID-19.

Also, virtual meetings are becoming part of everyone’s lives – even those who are the most technologically challenged seem to be using applications like Zoom, FaceTime, Skype, etc. to fill the need to socialize. I am willing to bet that each of you has used one or more of these in the past week to stay connected with friends, family, and colleagues. For work, the virtual meeting has become business as usual right now and we are all discovering, out of necessity, how easy and useful these video conferences can be. This will undoubtedly contribute to a slower uptake in passenger traffic growth once things begin to return to ‘normal’, or should I say, the new normal.

The pandemic has also had an impact on the number of aircraft anticipated to be in service in 2021. The forecast is there will be 1,200 fewer jetliners flying than last year (2019). This is also going to impact the number of pilots, maintenance technicians, flight crew, attendants, etc. needed.

This is all a vivid reminder that aviation has, and always will be, a cyclical business. Historically, with each upturn in the cycle, our industry grows, renews and often performs better than it did before. This is what we need to keep focused on right now. The only big question we currently face is how long will this down turn last?

Stay Home, Stay Healthy – Tricia

Patricia Wiseman – Editor, Publisher & Co-Founder

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SATCOM DIRECT

Satcom Direct (SD), the business aviation solutions provider, is launching a new webinar series to ensure customers remain continually informed and updated about SD products, services and partner relationships. Grouped by product category, the inaugural webinars will explain the latest SD updates and product enhancements by delivering content created in direct response to customer queries and information requests. The agendas incorporate themes that are relevant and essential for effective management of flight operations and aim to improve customer understanding of the extensive SD Xperience portfolio. Each webinar will also detail how to maximize new and existing products in dynamic, unpredictable operating environments to effectively manage evolving situations. The first four workshops are scheduled as follows:

• 21 April, 13:00 UTC – SD Connectivity: detailing network and service updates along with SD partner information.
• 05 May, 13:00 UTC – SD Hardware: updates on router, modem and antenna products and how best to select and optimize them.
• 19 May, 13:00 UTC – FlightDeck Freedom®: latest on datalink services supporting mandatory requirements for the flight deck.
• 02 June, 13:00 UTC – SD PostFlight and SD Pro®: updates on platform functionality and optional third party integration.

The one-hour webinars will be delivered online to registered SD clients by an SD subject matter expert. Materials will be conveyed through presentations, graphics and interactive tools and are designed to stimulate participation and discussion, whilst allowing customers to address individual needs and queries. For customers unable to participate, the webinars will be available for review through the SD Learning Management System (LMS) portal after each workshop.

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GALGUS

IFExpress received an email from Jose Gonzalez, CEO & Co-Founder of Galgus. Galgus is part of the Wi-Fi community and works in the IFEC industry with VT Miltope on their CHT (Cognitive Hotspot Technology). Galgus has put together a YouTube video show casing how important Wi-Fi is and how the technology is facilitating working, studying, entertaining and engaging remotely during this pandemic. We thought we would share their tribute and recognition with you, our readers. Can you imagine this quarantine without #WiFi? – YouTube

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COLLINS AEROSPACE

Collins Aerospace Systems, a unit of Raytheon Technologies Corp., recently announced Troy Brunk has been named president, Interiors, reporting to Collins Aerospace president Stephen Timm. He succeeds Dave Nieuwsma, who was recently named president, Avionics, for Collins Aerospace. In his new role, Brunk leads a broad portfolio of aircraft interior systems for seating, lighting, galley, oxygen, passenger service, evacuation, de-icing, lavatory, waste and potable water for commercial and military customers around the globe. Brunk’s 27-years with Collins Aerospace has included leadership roles of increasing responsibility. Most recently he served as vice president and general manager for the Communication, Navigation & Guidance Solutions portfolio for the company’s Mission Systems business. In this role, Brunk oversaw a broad portfolio of military applications and solutions, ranging from communication and navigation, to actuation and guidance, and health and fuel sensing systems. Brunk also served as vice president and general manager for Airborne Solutions, where he oversaw the avionics and flight deck solutions for military fixed-wing aircraft and helicopters.

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VALOUR

Valour Consultancy, an independent provider of market intelligence services to firms in the global aerospace and maritime markets, is delighted to reveal that it has been honored with the prestigious Queen’s Award for Enterprise. The company is one of a select group of organizations nationally to be recognized with the accolade, which is the highest official UK award available to British businesses. Valour’s award is given for outstanding achievement in the category of International Trade after increasing its overseas sales by an incredible 157 per cent over the last three years.

“It goes without saying that we are immensely proud of this achievement, which is the culmination of years of hard work and sacrifice in establishing Valour as a reputable source of business intelligence” said co-founders, Joshua Flood, Craig Foster and Daniel Welch. The trio also expressed their gratitude to those that have supported the company’s phenomenal growth in recent years. “This award is testament to the hard work and dedication of our staff who have consistently delivered outstanding results and often make themselves available at all hours to answer client enquiries. We’d also like to give a special mention to those companies located around the world that continue to have faith in us to provide them with the means to make more informed business decisions, even in these uncertain times”. Valour Consultancy is headquartered just outside of Grantham in the United Kingdom and maintains additional offices in London, as well as in Melbourne, which is home to its subsidiary, Valour Consultancy Australia. Since its founding in 2012, the firm has become a trusted provider of insight and analysis to many of the world’s largest companies. This includes aircraft manufacturers, large global satellite operators, multinational service providers and a range of the world’s best-known airlines.

Valour Consultancy will celebrate the award during a royal reception for Queen’s Awards winners and intends to host its own celebration later in the year.

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LUFTHANSA

#WeAreInThisTogether is Lufthansa’s motto in these unusual times and the carrier is setting a sign to express its bond with the airline’s passengers: Frequent flyers who considerably contribute to the airline’s success get access to all the digital publications that they usually are only provided with when flying. Media Carrier as a leading provider of digital content supports this initiative, providing its technical platform and content for this initiative. Frequent flyers get an access to 781 newspapers and magazines from around the world and enjoy digital reading. The portfolio meets every taste, containing business papers, lifestyle publications, regional newspapers and international magazines, and offers daily inspiration and entertainment. All publications can easily be downloaded in pdf format to any digital device and are then available to read for an unlimited period of time. Apart from free offers, users can also buy publications.

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AIRBUS

Airbus SE shareholders approved all resolutions on the agenda for its 2020 Annual General Meeting, including the election of two new directors, while René Obermann formally succeeded Denis Ranque as Chairman at a Board meeting immediately afterwards. Owing to the global coronavirus outbreak, shareholders were encouraged to vote by proxy instead of attending the AGM physically in Amsterdam, in line with public health and safety measures. Shareholders showed a very high level of voting and strong engagement despite the COVID-19 situation, with 575 million votes expressed, up 5% compared to the 2019 AGM and representing around 74% of the outstanding share capital. On 23 March, Airbus announced that it was withdrawing a voting item from the original AGM agenda related to the proposed payment of the 2019 dividend. The withdrawal of the dividend proposal was one of a number of measures announced by the Company to bolster liquidity and its balance sheet in response to the COVID-19 crisis. Following shareholder approval, Mark Dunkerley and Stephan Gemkow each joined the Board as non-executive directors for a period of three years. Dunkerley has extensive experience of the commercial airline and aviation industry and is currently a Member of the Board of Spirit Airlines, Inc., while Gemkow is a Member of the Board of Amadeus IT Group and a former airline executive with 22 years at Deutsche Lufthansa AG.

The mandates of non-executive directors Ralph D. Crosby, Jr. and Lord Drayson (Paul) were each renewed for three years. Denis Ranque and Hermann-Josef Lamberti both stepped down as planned from the Board and its committees at the close of the AGM. At the meeting immediately following the AGM, the Board approved the planned appointment of René Obermann as Chairman of the Board of Directors. In April 2019, Airbus announced that Obermann had been selected by the Board to succeed Denis Ranque as Chairman. As previously stated, Denis Ranque asked to leave the Board to pursue other interests when his mandate expired at the close of the 2020 AGM, following seven years as Chairman. “It has been a great honour to serve Airbus as Chairman these past years and I extend my best wishes to René, the Board and the Company as a whole,” said outgoing Airbus Chairman Denis Ranque. “I’d also like to thank shareholders for their support along these years and today for having voted through these important AGM resolutions at a very high level despite the COVID-19 outbreak. With a renewed management team, under Guillaume’s strong leadership, and an experienced Board, your Company is in good hands as it heads into its sixth decade.”

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BOEING

Boeing will resume all Commercial Airplanes production in a phased approach at its Puget Sound-region facilities this week, after suspending operations last month in response to the COVID-19 pandemic. At all of its sites, the company has taken extra precautions and instituted comprehensive procedures to keep people safe and fight the spread of COVID-19.

“The health and safety of our employees, their families and communities is our shared priority,” said Stan Deal, president and CEO of Boeing Commercial Airplanes and senior executive in the Pacific Northwest. “This phased approach ensures we have a reliable supply base, our personal protective equipment is readily available and we have all of the necessary safety measures in place to resume essential work for our customers.”

Approximately 27,000 people in the Puget Sound area will return to production of the 747, 767, 777 and 787 programs, supporting critical global transportation infrastructure, cargo services and national defense and security missions. The 737 program will resume working toward restarting production of the 737 MAX. Boeing South Carolina remains in a suspension of operations at this time. Earlier this week Boeing restarted mostly defense production operations in the region with approximately 2,500 people. Employees in the Puget Sound for the 737, 747, 767 and 777 will return as early as third shift on April 20 with most returning to work by April 21. Employees for the 787 program will return as early as third shift April 23, with most returning to work by April 24.
The company’s practices reinforce enhanced cleaning, employee health and physical distancing in partnership with employees. Aligned with federal and state guidance, these practices include:

• Staggered shift start times to reduce the flow of employees arriving and departing work
• Visual controls such as floor markings and signage to create physical distance
• Face coverings will be a requirement for employees at Boeing sites in Washington. Employees are strongly encouraged to bring in their own procedural mask or face covering; those who do not have a mask available will be provided with one.
• Providing required personal protective equipment to employees working in areas where physical distancing cannot be maintained for an extended period
• Asking employees to perform self-health checks before coming to work and to stay home if they are ill
• Employee wellness checks at the beginning of every shift and voluntary temperature screening at many manufacturing locations
• Contact tracing when an employee tests positive for COVID-19 to reduce risk to teammates
• Continued virtual meetings and employees who can work from home will continue to do
• Transportation and common areas adjusted for physical distancing
• Hand-washing stations in high-traffic areas and additional cleaning supplies available

Enhanced measures will continue until conditions allow for a return to regular work and cleaning processes. Boeing will continue to monitor government guidance on COVID-19, assess impact on company operations and adjust plans as the situation evolves.

Boeing completed its first COVID-19 transport mission, using a 737-700 aircraft from its corporate fleet to bring personal protective equipment (PPE) from China to the United States. Working in partnership with FIRST Robotics Founder Dean Kamen, the company transported 540,000 medical-grade face masks that will be delivered to healthcare professionals battling COVID-19 in New Hampshire. Kamen, who has a longstanding relationship with Boeing through FIRST Robotics, is also a founder of DEKA Research and Development Corporation. “Another life-saving delivery of PPE has arrived in New Hampshire,” said Governor Chris Sununu.

Boeing continues to support local communities and the heroic healthcare professionals working tirelessly to stop the spread of COVID-19. Additional airlift transport missions with the Boeing Dreamlifter and ecoDemonstrator are planned in the future. Boeing is coordinating closely with U.S. government officials on how to best assist areas with the greatest need. “I want to personally thank Governor Sununu, the entire New Hampshire congressional delegation and Dean Kamen for their leadership in helping secure and distribute this much-needed personal protective equipment for our frontline healthcare workers and first responders here in New Hampshire,” said Dave Calhoun, Boeing president and CEO. “We are honored to have conducted today’s airlift mission and we look forward to providing continued support in the fight against this pandemic.”

Also from Boeing: Brazil’s GOL reached agreement with Boeing on financial compensation related to 737 MAX grounding and then they cancelled 34 of their remaining 129 MAXs on order.

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OTHER NEWS

• How about a 5 minute video describing Artificial Intelligence? What is Artificial Intelligence? In 5 minutes. – YouTube
• There has been an IATA report that the airlines will take a $314Billion revenue hit in 2020 and to expect passenger traffic to drop almost 48% this year – Yikes! IATA – COVID-19 Puts Over Half of 2020 Passenger Revenues at Risk
• Oh, this is so cool! Radio Garden – Get radio stations all over the world by choosing them on a map on your computer (audio only) – Radio Garden – Explore live radio by rotating the globe

“Overall, it could be a very bad year for the economy,” Ben Bernanke said. “The U.S. economy could shrink 30% or more this quarter as stay-at-home orders aimed at slowing the coronavirus outbreak choke off business.” Unfortunately, this scenario is not limited to the U.S.  – for the most part it is a global issue facing a broad spectrum of businesses, including aviation. We continue to see a reduction in activity in the aviation sector, primarily due to the decrease in demand for air travel due to COVID-19 and it looks like this may well be the trend for a good part of 2020. Many airlines have parked/stored the majority of their fleet, some routes are flown with a handful of passengers – if the carrier is lucky, and airframers are looking at order cancellations and reduced aircraft deliveries for 1Q20. It goes without saying that our industry is undergoing a radical change and all sectors within it are bracing for the trickle-down effect on their businesses. In fact, one of the major IFEC vendors has reduced their staff by 200+ people in the last week – most likely the first of many companies to do so. The IFExress team will endeavor to keep you appraised of the latest developments, so stay tuned.

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AIRBUS
After a solid commercial and industrial performance at the beginning of the year, Airbus is now revising its production rates downwards to adapt to the new Coronavirus market environment.

In Q1 2020, Airbus booked 290 net commercial aircraft orders and delivered 122 aircraft. A further 60 aircraft were produced during the quarter, highlighting the solid industrial performance, however they remain undelivered due to the evolving COVID-19 pandemic.

36 aircraft were delivered in March across the different aircraft families, down from 55 in February 2020. This reflects customer requests to defer deliveries, as well as other factors related to the ongoing COVID-19 pandemic.
The new average production rates going forward have been set as follows:
● A320 to rate 40 per month
● A330 to rate 2 per month
● A350 to rate 6 per month

This represents a reduction of the pre-coronavirus average rates of roughly one third. With these new rates, Airbus preserves its ability to meet customer demand while protecting its ability to further adapt as the global market evolves.

Airbus is working in coordination with its social partners to define the most appropriate social measures to adapt to this new and evolving situation. Airbus is also addressing a short-term cash containment plan as well as its longer-term cost structure.

“The impact of this pandemic is unprecedented. At Airbus, protecting our people and supporting the fight against the virus are our chief priorities at this time. We are in constant dialogue with our customers and supply chain partners as we are all going through these difficult times together”, said Airbus Chief Executive Officer Guillaume Faury. “Our airline customers are heavily impacted by the COVID-19 crisis. We are actively adapting our production to their new situation and working on operational and financial mitigation measures to face reality.”

In its effort to support the fight against the COVID-19, Airbus has carried out extensive work in coordination with social partners to ensure the health and safety of its employees. This has been achieved by implementing new stringent work standards and processes. Airbus is contributing to the development, sourcing and ferrying of medical equipment, including facemasks and ventilators, in support of medical health services.

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BOEING

Today (April 14, 2020), Boeing announced their 1Q 2020 deliveries for commercial aircraft, which totaled 50 jetliners – compared to 149 in 1Q 2019. The 50 aircraft were comprised of the following: five 737s, zero 747s, ten 767s, six 777s, and twenty-nine 787s.

The company has also been hit by an additional 75 737 MAX cancellations from Irish leasing company Avolon, bringing the total number of jetliners removed from the company’s order book in March to 300+ aircraft as airlines adjust their fleets in response to COVID-19.

Also, Boeing will deliver the first set of reusable 3D-printed face shields to support healthcare professionals working to stop the spread of COVID-19. The Department of Health and Human Services (HHS) accepted the initial shipment of 2,300 face shields this morning. The Federal Emergency Management Agency (FEMA) will deliver the shields to the Kay Bailey Hutchison Convention Center in Dallas, Texas, which has been established as an alternate care site to treat patients with COVID-19. Boeing is set to produce thousands more face shields per week, gradually increasing production output to meet the growing need for Personal Protective Equipment (PPE) in the United States. Distribution of additional face shields will be coordinated with HHS and FEMA based on immediate needs. Boeing is producing face shields with additive manufacturing machines at company sites in:

• St. Louis, Missouri
• China Lake, El Segundo, and Huntington Beach, California
• Puget Sound region of Washington State
• Mesa, Arizona
• Huntsville, Alabama
• Philadelphia, Pennsylvania
• Charleston, South Carolina
• San Antonio, Texas
• Salt Lake City, Utah
• Portland, Oregon

Boeing subsidiaries Argon ST in Smithfield, Pennsylvania, and Aurora Flight Sciences in Bridgeport, West Virginia, are also participating in this project. Solvay, a long-time Boeing supplier, provided the clear film for the face shields. Another supplier, Trelleborg Sealing Solutions, donated the elastic used for the adjustable headband. Face shield production and donations are part of a larger Boeing effort to leverage company and employee resources to aid with COVID-19 recovery and relief efforts. To date, the company has donated tens of thousands of units of PPE – including face masks, goggles, gloves, safety glasses and protective bodysuits – to support healthcare professionals battling COVID-19 in some of the hardest-hit locations in the United States. Boeing has also offered use of its unique airlift capabilities, including the Boeing Dreamlifter, to help transport critical and urgently needed supplies to healthcare professionals. The company is coordinating closely with government officials on how best to provide airlift support. “Boeing is proud to stand alongside many other great American companies in the fight against COVID-19, and we are dedicated to supporting our local communities, especially our frontline healthcare professionals, during this unprecedented time,” said Boeing President and CEO David Calhoun. “History has proven that Boeing is a company that rises to the toughest challenges with people who are second to none. Today, we continue that tradition, and we stand ready to assist the federal government’s response to this global pandemic.”

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OTHER NEWS

• If you are interested in the affects of COVID – 19 on the body (and we understand if you are not), here is a very good Visual Capitalist graphic on the subject – and yes, it is a graphic!!! Visualizing What COVID-19 Does to Your Body – Visual Capitalist
• Someone’s worst (or best) flight – Thanks Reddit Images!
• Watch LifeSavvy’s mask video – Confused About Face Masks? Watch This Informative Video – LifeSavvy
• Here is a good, free, tech read on Coronavirus that you might like.
• The folks at CNN published a story on April 13th that is hard to envision, and believe us, this ain’t how to fly in a jet airplane. And, yes, it is IFE – Incredible French Experience! A French 64-year-old ejected himself from a fighter jet in midair | CNN Travel
• Lufthansa designed an Airline Flight Demand Tracker and you can find it here and it is updated each Monday – The Airline Flight Demand Tracker – Travel & Mobility Tech

Toulouse | March 30, 2020–The Spanish Government announced new measures on 29 March in the fight against COVID-19. These measures are taking effect between Monday 30 March and Thursday 9 April inclusive and restrict all non-essential activities across the country.

Image: Airbus A330-800 receives EASA Type Certification

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THALES

Sichuan Airlines selects Thales CORE IFE for its future fleet of A350 aircraft to deliver on their promise for exceptional passenger experience. Entry into service is scheduled for the fourth quarter of 2021. Sichuan Airlines new A350’s will include a two-class cabin configuration equipped with 17” displays in business class, 12” displays in economy class and new state-of-the-art SELECT graphical user interface (GUI) featuring the latest user-experience technologies creating the most intuitive passenger experience ever while celebrating Sichuan Airlines’ brand. Passengers will enjoy the most current applications and vast selection of entertainment during their flight including a variety of television series, films, music, and games.

Thales’s CORE IFE system is based on the proven AVANT platform, benefiting Sichuan Airlines with a streamlined process for configuration and delivery at the most competitive cost of ownership. CORE is packaged with Thales support services. Through this selection, Thales further expands its partnership with Sichuan Airlines. The airline’s current fleet of A350 is flying with the AVANT system and Thales is the preferred business partner in avionics – including Flight Management Systems for their A320/A330 aircraft as well as customer support and services. Over 1 million passengers each day enjoy Thales in-flight technologies. In China, Thales is working together with airlines to drive the highest level of passenger satisfaction by providing a truly unique experience to all travelers.

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AIRBUS

The A330-800 received joint Type Certification (today’s rectangle) from the European Aviation Safety Agency (EASA) and the Federal Aviation Administration (FAA). The aircraft’s certification flight-test campaign was successfully performed by aircraft MSN1888, which completed the program in 370 flight test hours and 132 flights since its first flight in November 2018. The A330-800, part of a true new-generation A330neo family, is the most efficient longest range entry-level widebody and incorporates new Rolls-Royce Trent 7000 engines, a new 3D-optimised wing and new Sharklets using lighter composite materials. Together, these advances bring a significant reduction in fuel consumption of 25 per cent compared with older generation competitor aircraft of similar size. Certified initially with a maximum take-off weight (MTOW) of 242 tonnes for a range capability of up to 7,500 nautical miles, the A330-800 will typically seat 220 to 260 passengers in three classes, or up to 406 travelers in a single-class high-density configuration. To date the A330neo Family has won 337 firm orders from 22 operators. In the A330-800, passengers can expect the highest levels of comfort, with the aircraft featuring the award-winning Airspace by Airbus cabin with larger overhead storage, advanced cabin mood lighting and the latest in-flight entertainment and connectivity. Operationally, the A330neo shares a common pilot type-rating with the larger A350 XWB, which facilitates minimum flight training cost and maximum pilot productivity. Maintenance personnel will also benefit from the aircraft’s new Skywise data connectivity features which will help them to predict potential issues before they arise, thus ensuring maximum productivity of the aircraft in revenue service.

On another note, Green Africa Airways, Nigeria’s Lagos-based airline, has signed a Memorandum of Understanding (MoU) for 50 A220-300 aircraft, one of the major orders to be placed globally for the A220 program and the largest ever from the African continent.

Furthermore, Airbus SE, the Government of Québec and Bombardier Inc. have agreed upon a new ownership structure for the A220 program, whereby Bombardier transferred its remaining shares in Airbus Canada Limited Partnership (Airbus Canada) to Airbus and the Government of Québec. The transaction is effective immediately. This agreement brings the shareholdings in Airbus Canada, responsible for the A220, to 75 percent for Airbus and 25 percent for the Government of Québec respectively. The Government’s stake is redeemable by Airbus in 2026 – three years later than before. As part of this transaction, Airbus, via its wholly owned subsidiary Stelia Aerospace, has also acquired the A220 and A330 work package production capabilities from Bombardier in Saint-Laurent, Québec. This new agreement underlines the commitment of Airbus and the Government of Québec to the A220 program during this phase of continuous ramp-up and increasing customer demand. Since Airbus took majority ownership of the A220 program on July 1, 2018, total cumulative net orders for the aircraft have increased by 64 percent to 658 units at the end of January 2020.

Bombardier transfers its remaining interest in Airbus Canada Limited Partnership (Airbus Canada) to Airbus SE and the Government of Québec. Airbus now holds 75 percent of Airbus Canada with the Government of Québec increasing its holding to 25 percent for no cash consideration Bombardier work packages for the A220 and A330 will be transferred to Airbus, through its subsidiary Stelia Aerospace, securing 360 jobs in Québec Bombardier will receive US$591M, net of adjustments, of which US$531M was received at closing, and is released of its future funding capital requirement to Airbus Canada.

Lastly, Airbus and the Civil Aviation Authority of Singapore (CAAS) have signed a Memorandum of Understanding (MOU) to enable urban air mobility (UAM) in Singapore. The MOU was signed at the Singapore Airshow 2020 between Jean-Brice Dumont, Executive Vice-President, Engineering, Airbus and Kevin Shum, Director-General of CAAS. The collaboration aims to bring UAM services and platforms to reality in Singapore’s urban environment, with the target to enhance industry productivity and improve the country’s regional connectivity. As part of the agreement:

• Airbus and CAAS will collaborate to define and develop an initial UAM service with an Unmanned Aircraft System (UAS). The parties will specifically work together to realise the Unmanned Traffic Management (UTM) system and services to support the initial use-case.
• For such UAM operations, both parties will co-operate on fostering public acceptance, developing standards, and establishing necessary safety frameworks.
• Finally, Airbus and CAAS will study the feasibility and requirements for further UAM services that include leading-edge cargo and passenger transportation solutions.

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BOEING News

The Boeing Company reached a tentative agreement with the Society of Professional Engineering Employees in Aerospace (SPEEA) on a new four-year contract extension that would run through 2026 covering approximately 18,000 engineering and technical employees, nearly all of whom are in Washington and Oregon. SPEEA’s Executive Board has endorsed the offer, which will be put up for a vote by the membership and is expected to run from Feb. 24 to March 9, 2020 via mail-in ballots. The current contract is set to expire in 2022.Highlights of the agreement include:

• Annual salary adjustment funds – Under the tentative agreement, Boeing and SPEEA will establish fixed salary adjustment funds for each year, 2020 through 2026, replacing the prior indexed formula.
• Paid leave – Boeing will apply the Company’s existing 12-week Paid Parental Leave policy to SPEEA-represented employees. By virtue of the contract extension, SPEEA-represented employees in Washington will now also be covered by the Washington Paid Family and Medical Leave Act.
• Health care benefits – Under the tentative agreement, employees will continue receiving competitive benefits with no change in plan design for medical, dental and vision plans. Beginning in 2023, employees’ contributions will be based upon their salary.
• Employee Incentive Plan (EIP) – The Employee Incentive Plan target will be raised from 3.85% of eligible earnings to 5% of eligible earnings.

On another note, Boeing forecasts airlines in Southeast Asia will need 4,500 new airplanes over the next 20 years, valued at $710 billion at list prices. Single-aisle airplanes continue to be the main driver of capacity growth in Southeast Asia. This growth helps to stimulate the demand for commercial aviation services, which are forecasted to be worth $785 billion between 2019 and 2038.

“Three countries from Southeast Asia – Vietnam, Thailand, and Indonesia – made the top 10 list of countries that added the most airline seat capacity since 2010. Vietnam has experienced the strongest growth out of the three at nearly 15% per year, followed by Thailand and Indonesia at approximately 10% respectively,” said Randy Tinseth, vice president of Commercial Marketing at Boeing. “With an expanding middle-class, in market that continues to liberalize, coupled with a strong domestic, regional and international tourism sector, Southeast Asia has become one of the world’s largest aviation markets.”While single-aisle airplanes dominate the forecast, this region will also require a significant amount of widebody airplanes, in terms of value and the number of units. The demand is driven by airlines adapting to the evolving business environment and new long-haul expansion opportunities. Widebody airplanes will make up 19% of new airplane deliveries, enabling carriers in the region to serve new international long-range city pairs.

Aviation growth in the region is expected to drive the need for 182,000 commercial pilots, cabin crew, and aviation technicians to fly and to maintain the airplane fleet across Southeast Asia. This demand is projected based on a mix of new airplane deliveries, annual aircraft utilization rates, crewing requirements by region and regulatory requirements.

In the air cargo sector, after declines in 2019, global freight volumes are projected to recover in 2020 due in large part to solid industrial production and world trade. Over the long-term, air cargo is projected to grow 4.2% through the forecast period. Freighters will remain the backbone of the cargo industry with the need for 1040 new and 1780 converted freighters over the next 20 years.

Worldwide, Boeing projects the need for 44,040 new commercial airplanes valued at $6.8 trillion and the demand for aftermarket services totaled at $9.1T over the next 20 years. The complete forecast is available here.

Furthermore, Boeing announced supply chain agreements at the Singapore Airshow with multiple airlines and operators. The agreements will enable Asia-Pacific carriers to leverage Boeing’s global supply chain to streamline maintenance, repair, and operations.

Recent supply chain services agreements include:

• All Nippon Airways, the largest airline in Japan, has expanded an agreement for consumable and expendable services to their entire fleet.
• Cathay Pacific, the home carrier of Hong Kong, renewed a multiyear agreement for consumable and expendable services building on a long-standing partnership for spare parts inventory management.
• Evergreen Aviation Technologies Corporation (EGAT), an MRO with a long-standing partnership between EVA Air and General Electric, reached a multiyear Tailored Parts Package agreement. The customized agreement provides comprehensive part coverage from Boeing’s network of global distribution centers to support EGAT’s maintenance, repair, and overhaul operations to a host of global airlines in its service portfolio.
• HAECO, a leading MRO, has reached an expanded agreement for consumables and expendables parts support to include additional supply chain solutions.
•  Xiamen Airlines has reached a three-year agreement for a Tailored Parts Package to support their full fleet of Boeing Next Generation 737 and 787 Dreamliner airplanes.
• KAEMS signed agreement with Boeing for its first integrated inventory management solution for consumables and expendables parts in support of their growing MRO capability.

These agreements focus on material solutions that offer customers more inventory control and greater logistics flexibility, by relying on Boeing for material support. Boeing works with customers to identify their operational priorities and build the Tailored Part Package and Consumable and Expendable Services that allow airlines to focus on operations and not parts and inventory management.

Boeing estimates the commercial services market, including business aviation and general aviation, in the Southeast Asia region will reach $3.4 billion over the next 20 years. This growth is driven by demand for customizable maintenance programs and maintenance personnel. Boeing’s aftermarket supply chain, a key capability in supporting increased lifecycle value for customers, provides customers with customizable and flexible materials support tailored to their needs.

Lastly, Boeing announced orders and agreements that will enable growth for multiple Asia-Pacific airlines in a rapidly developing region. These digital solutions lower costs across fleets for regional and international operators, enhance airline crew situational awareness and increase operational efficiency.
New digital solutions orders and agreements include:

• Vistara, an Indian carrier and a joint venture of Tata group and Singapore Airlines, has signed an agreement for multiple services to support their entry into service of new 787-9 aircraft, including Boeing Maintenance Performance Toolbox and Airplane Health Management tools. Powered by Boeing AnalytX, these tools provide real-time, custom alerting, fleet data to enhance maintenance capabilities. Vistara has signed a new five-year agreement to receive Jeppesen Crew Rostering and Boeing Alertness Model tools to improve operational efficiency and crew planning capabilities.
• Air Tahiti Nui joins more than 100 international customers using Boeing Airplane Health Management by signing a multiyear agreement to access real-time maintenance and engineering data and support to enhance maintenance and operational decisions for their 787 fleet.
• Bamboo Airways will integrate several digital solutions to support their new 787 fleet, with new agreements finalized for Jeppesen FliteDeck Pro electronic flight bag (EFB), Electronic Document Browser and Onboard Performance Tool capabilities. These digital tools enable flight crews to perform real-time weight and balance and takeoff and landing calculations to reduce maintenance costs, optimize payload capacity and streamline cockpit operations.
• Sichuan Airlines has agreed to a multiyear contract for Jeppesen JetPlanner Pro services to enhance flight planning capabilities. The tool generates optimized routes and efficient flight plans in complex airspace to achieve lower operating costs, using the industry leading flight planning engine.
• Virgin Australia Group has signed a seven-year agreement for Jeppesen FliteDeck Pro electronic flight bag (EFB) and digital navigation chart services, to increase operational efficiency. The agreement extends a long-term relationship between the airline and Boeing for Jeppesen navigation services that provide increased flight deck efficiency.

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OTHER NEWS

• An Astronomer, Elenore Lutz, last year published a wonderful, big, full color “article” on the planets in our solar system and we were knocked out with the 14 pages of colored examples: Tabletop Whale And, you can buy the maps and a ton of other cool, color, cosmic stuff here: The Geology of the Moon” by Eleanor Lutz | Redbubble Hey, you can say you want it for your kids!
• If you have to travel and just want to listen to great audio stories instead of a visual movie experience – try podcasts. And here is a great free one from the BBC entitled “13 Minutes to the Moon”. Your next trip education/,learning/enjoyment can be stored on your iPod! BBC World Service – 13 Minutes to the Moon – Downloads Also, click on “Home” to see all the audio available.
• The US FTC put out a Consumer Information bulletin on Coronavirus scammers – Be aware: Coronavirus: Scammers follow the headlines | FTC Consumer Information And yes, the Barcelona Mobile World Congress event is cancelled – GSMA Cancels Mobile World Congress Due to Coronavirus Danger – Review Geek And finally, this is a warning: Why the Covid-19 coronavirus outbreak might be much bigger than we know – Vox and Advice On Avoiding Flu And Cold Germs While Flying : Goats and Soda : NPR And now: Coronavirus: Sharp increase in deaths and cases in Hubei – BBC News. And finally: Chinese Scientists Believe Coronavirus Came From Virology Lab In Wuhan
• Check out Visual Capitalist’s top ten airline revenue routes: Flying High: The Top Ten Airline Routes by Revenue
• NBAA has cancelled the 2020’s Asian Business Aviation Convention & Exhibition, scheduled for April 16-18 – Coronavirus outbreak.
• WOW! This is an impressive flying aircraft impact on environmental issues – How changing aircraft altitude could cut flight’s climate impact in half | CNN Travel Stay Tuned on this one!