Chicago, IL | March 18, 2019– We know lives depend on the work we do, and our teams embrace that responsibility with a deep sense of commitment every day. Our purpose at Boeing is to bring family, friends and loved ones together with our commercial airplanes—safely. The tragic losses of Ethiopian Airlines Flight 302 and Lion Air Flight 610 affect us all, uniting people and nations in shared grief for all those in mourning. Our hearts are heavy, and we continue to extend our deepest sympathies to the loved ones of the passengers and crew on board.

Safety is at the core of who we are at Boeing, and ensuring safe and reliable travel on our airplanes is an enduring value and our absolute commitment to everyone. This overarching focus on safety spans and binds together our entire global aerospace industry and communities. We’re united with our airline customers, international regulators and government authorities in our efforts to support the most recent investigation, understand the facts of what happened and help prevent future tragedies. Based on facts from the Lion Air Flight 610 accident and emerging data as it becomes available from the Ethiopian Airlines Flight 302 accident, we’re taking actions to fully ensure the safety of the 737 MAX. We also understand and regret the challenges for our customers and the flying public caused by the fleet’s grounding.

Work is progressing thoroughly and rapidly to learn more about the Ethiopian Airlines accident and understand the information from the airplane’s cockpit voice and flight data recorders. Our team is on-site with investigators to support the investigation and provide technical expertise. The Ethiopia Accident Investigation Bureau will determine when and how it’s appropriate to release additional details.

Boeing has been in the business of aviation safety for more than 100 years, and we’ll continue providing the best products, training and support to our global airline customers and pilots. This is an ongoing and relentless commitment to make safe airplanes even safer. Soon we’ll release a software update and related pilot training for the 737 MAX that will address concerns discovered in the aftermath of the Lion Air Flight 610 accident. We’ve been working in full cooperation with the U.S. Federal Aviation Administration, the Department of Transportation and the National Transportation Safety Board on all issues relating to both the Lion Air and the Ethiopian Airlines accidents since the Lion Air accident occurred in October last year.

Our entire team is devoted to the quality and safety of the aircraft we design, produce and support. I’ve dedicated my entire career to Boeing, working shoulder to shoulder with our amazing people and customers for more than three decades, and I personally share their deep sense of commitment. Recently, I spent time with our team members at our 737 production facility in Renton, Wash., and once again saw firsthand the pride our people feel in their work and the pain we’re all experiencing in light of these tragedies. The importance of our work demands the utmost integrity and excellence—that’s what I see in our team, and we’ll never rest in pursuit of it.

Our mission is to connect people and nations, protect freedom, explore our world and the vastness of space, and inspire the next generation of aerospace dreamers and doers—and we’ll fulfill that mission only by upholding and living our values. That’s what safety means to us. Together, we’ll keep working to earn and keep the trust people have placed in Boeing.

Dennis Muilenburg
Chairman, President and CEO
The Boeing Company

March 13, 2019– Boeing continues to have full confidence in the safety of the 737 MAX.  However, after consultation with the U.S. Federal Aviation Administration (FAA), the U.S. National Transportation Safety Board (NTSB), and aviation authorities and its customers around the world, Boeing has determined — out of an abundance of caution and in order to reassure the flying public of the aircraft’s safety — to recommend to the FAA the temporary suspension of operations of the entire global fleet of 371 737 MAX aircraft.

“On behalf of the entire Boeing team, we extend our deepest sympathies to the families and loved ones of those who have lost their lives in these two tragic accidents,” said Dennis Muilenburg, president, CEO, Chairman of The Boeing Company.

“We are supporting this proactive step out of an abundance of caution. Safety is a core value at Boeing for as long as we have been building airplanes; and it always will be. There is no greater priority for our company and our industry. We are doing everything we can to understand the cause of the accidents in partnership with the investigators, deploy safety enhancements and help ensure this does not happen again.”

Boeing makes this recommendation and supports the decision by the FAA.

With much going on this week we would like to get started with our IFExpress BUZZ message and give you a little background on why it is in this week’s issue.

Firstly, we were contacted about the new secure content streaming technology implemented by IdeaNova, and we are certain you will hear a lot about them and their new technology in the future. We will delve in this further in a future issue this soon in IFExpress, but we wanted you to meet their CEO, Juraj Siska. In discussing the IdeaNova technology, Juraj told us that it used a new and special “Hardware Secured” server noted Juraj:” ‘Hardware secured’ server means that DRM cryptographic operations and certain security functions are executed in special hardware, which is separate from the main processing unit, making it harder to compromise and almost impossible to replicate for malicious purposes. This is unlike traditional software implementations where software is much easier to copy.”

We will have more on this content security technology in an upcoming issue; however, we should mention that Rich Salter is now an independent consultant and is advising IdeaNova. It is also worth noting that the APEX Technology Committee has a Working Group co-chaired by Phil Watson (Panasonic) and Juraj Siska (IdeaNova) that has created a draft of APEX 0415 version 2 that adds security provisions for premium content.

However, as we previously stated, we will cover more on this new content security in a forthcoming issue.

Now, let’s get on with the news from the past 7 days:


AEROMOBILE
Inflight mobile connectivity provider AeroMobile announced the addition of TAP Air Portugal to its connected fleet. TAP Air Portugal’s first connected Airbus A330-900neo entered into service in December 2018. This launch marks an exciting time for TAP Air Portugal, which is the first airline in the world to operate the next generation A330-900neo aircraft. The onboard AeroMobile service allows TAP Air Portugal passengers in all cabin classes to use their mobile devices to send and receive SMS, catch up with emails and browse the internet from 20,000 feet. Following the successful launch of its first aircraft with inflight mobile connectivity, TAP Air Portugal will add an additional 37 aircraft over the next year, reaching a total of 71 aircraft by 2025. The A330-900neo fleet with inflight mobile connectivity will be deployed on services to Sao Paulo, with four other Brazil destinations launching across 2019. And just in case you didn’t remember, AeroMobile is a subsidiary of Panasonic Avionics!


ASTRONICS
Astronics Corporation announced that its wholly owned subsidiary, Astronics PECO, was awarded a multi-year contract extension to provide custom manufactured interior and structural components to Boeing for multiple aircraft platforms.

Under the contract extension, Astronics PECO will continue to provide its innovative passenger service units (PSUs), fuel tank access doors and environmental control system components, among other parts. The products will serve on a variety of Boeing aircraft, including Boeing 737, 747, 767, 777 and KC-46 models.


THALES

  • Aireon and Thales, through this agreement, look at ways to improve aviation efficiency by globally leveraging the space-based Automatic Dependent Surveillance – Broadcast (ADS-B) service. Aireon and Thales will collaborate and utilize live space-based aircraft positioning data via the Thales TopSky-ATC system as well as the Thales aviation data platform, ECOSystem. Aieron will go live in weeks, providing global air traffic surveillance coverage via satellites. It is supported by the leading Air Navigation Service Providers (ANSPs) around the world
  • Thales and Gemalto announced that they have received Regulatory Clearance for US antitrust approval, as the Stipulation and Order related to their agreement with the United States Department of Justice, which was announced on 1 March 2019, has been entered by the court.

SITAONAIR
SITAONAIR successfully expanded the operational capacity of air traffic service (ATS) datalink across Brazil’s airports, in a crucial step towards modernizing air traffic control operations in the country as air traffic continues to rise. The development of the service follows SITAONAIR’s instrumental work with Brazil’s Department of Airspace Control (DECEA), as part of the wider Brazilian Air Navigation Modernization SIRIUS program to advance ATS Datalink services. The deployment of services for The Commission for the Implementation of the Airspace Control System (CISCEA) to 24 control towers across Brazil began in June 2016, ahead of the Olympic Games in Rio de Janeiro. Since then, the initiative, in partnership with SITAONAIR’s specialist air traffic control partners Saipher and ATC Systems has continued to evolve, increasing safety, sustainability and operational efficiency. As a result, DECEA has seen an increase in aircraft opting to access voice and datalink ATIS (D-ATIS) as well as DCL (Datalink Departure Clearance Service) information in a more digital, convenient and secure manner, with approximately 250 departure clearances issued a day and 20,000 D-ATIS requests a month from the country’s major airports. SITAONAIR’s most recent infrastructure development in 2018 includes establishing services at two additional airports, Rio de Janeiro’s Santos Dumont and São Paulo’s Campinas, bringing the total number of fully-equipped control towers to 26.


AIRBUS
Wizz Air, the largest Central and Eastern European low cost carrier, took delivery of its first of 184 A321neo aircraft on order at an event in Hamburg, with József Váradi, CEO Wizz Air and Christian Scherer, Airbus Chief Commercial Officer. The new generation aircraft is powered by two Pratt & Whitney GTF engines and features the widest single aisle cabin with 239 seats in a single class configuration and offers operators maximum flexibility, fuel efficiency and low operating costs. Wizz Air is an all Airbus operator, with more than 100 A320 Family aircraft operating all around Europe with 261 more to be delivered. With 184 of the larger A321neo aircraft on order, Wizz Air is the largest Airbus customer worldwide of the type.


BOEING

Boeing completed the acquisition of ForeFlight, a provider of innovative mobile and web-based aviation applications. ForeFlight partnered with Boeing over the past two years to bring aviators Jeppesen’s aeronautical data and charts through ForeFlight’s popular mobile platforms. Now, the teams will integrate talent and offerings to bring innovative, expanded digital solutions to all segments of the aviation industry. The acquisition of ForeFlight aligns with Boeing’s growth strategy of complementing organic investments with targeted, strategic investments that position the company for long-term growth. Headquartered in Houston, Texas, ForeFlight has approximately 180 employees.

EDITOR’S NOTE: With the second recent B737 MAX-8, belonging to Ethiopian airlines, crash many passengers are getting nervous. While no connection to the issues with the first crash (Lion Air) have been proven, potential MAX 8 flyers are concerned. Since the US FAA notes that there are 387 B737 MAX jets flying (operated by 59 airlines) this could have a significant impact. The wonderful folks at the Seattle Times News Service have provided a number of good articles on the plane and you can read and link to them all here: Worried travelers seek answers about the 737 MAX 8. Here is what passengers should know. | The Seattle Times IFExpress notes that Boeing has developed a flight control enhancement: “For the past several months and in the aftermath of Lion Air Flight 610, Boeing has been developing a flight control software enhancement for the 737 MAX, designed to make an already safe aircraft even safer. This includes updates to the Maneuvering Characteristics Augmentation System (MCAS) flight control law, pilot displays, operation manuals and crew training. The enhanced flight control law incorporates angle of attack (AOA) inputs, limits stabilizer trim commands in response to an erroneous angle of attack reading, and provides a limit to the stabilizer command in order to retain elevator authority.” Further they state: “Boeing has been working closely with the Federal Aviation Administration (FAA) on development, planning and certification of the software enhancement, and it will be deployed across the 737 MAX fleet in the coming weeks. The update also incorporates feedback received from our customers.”


OTHER NEWS

Program encourages greater use of aviation biofuels, which cut emissions by up to 80 percent

Seattle, Washington | March 8, 2019– Boeing [NYSE:BA] will begin offering airlines and operators the option of powering their new commercial jet with biofuel for the flight home. The program is designed to further spur the use of sustainable aviation fuels – which cut emissions up to 80 percent – and support the industry’s drive to protect the environment.

The biofuel option will be available for customers accepting new airplanes at Boeing’s delivery centers in Seattle and Everett, Wash. The company also plans to use biofuel for certain flight tests at its Boeing Field facility, while working to offer the same option at its South Carolina Delivery Center.

“This is another step in our decade-long journey to encourage the adoption of sustainable fuels and help commercial aviation earn its license to keep growing,” said Sheila Remes, vice president of strategy at Boeing Commercial Airplanes. “We have great customers such as Alaska Airlines that have made good progress in adopting the use of biofuels. We hope this new option will make it easier for them and others to demonstrate our industry’s commitment to reduce carbon emissions.”

Alaska Airlines [NYSE:ALK], the first participant in the program, will use a blend of biofuel made by World Energy and traditional fuel when it takes delivery of three Boeing 737 MAX airplanes this year.

“Alaska takes seriously the responsibility to deliver for all those who depend on us—employees, guests, our communities and the environment around us—for the long term. That’s the definition of sustainability,” said Diana Birkett Rakow, vice president of external relations at Alaska Airlines. “We congratulate our partners at Boeing for operationalizing a drop-in sustainable aviation jet fuel option. We’re excited to not only take advantage of the first biofuel delivery, but to continue working together to advance and scale mainstream adoption of sustainable fuel and other practices to enhance the aviation industry’s ability to do good.”

World Energy produces the biofuel at its refinery in Paramount, Calif., the world’s first facility designed to commercially produce renewable jet fuel. Made from agriculture waste, the fuel is certified for commercial use and can be blended with traditional jet fuel without modifications to airplanes, engines or fueling infrastructure.

“World Energy is here to serve any organization committed to leading the shift toward a low-carbon future,” World Energy Chief Commercial Officer Bryan Sherbacow said. “Companies such as Boeing understand their obligation to the communities they serve and have taken meaningful action to transition to cleaner energy and reduce their carbon footprint. Our job is to manage the low-carbon fuel supply chain to provide the product these leaders need to efficiently operate and drive positive change.”

EPIC Fuels will ship the biofuel to Boeing’s delivery centers in Washington state. EPIC has supported Boeing’s evaluation of biofuels on its ecoDemonstrator flight-test program.

Boeing has been a leader in fostering the development of biofuels, including supporting the first commercial aviation test flight flown by Virgin Atlantic in 2008. The company’s extensive research, testing, and rigorous review – in collaboration with other airframe and engine manufacturers and aviation stakeholders – led to the approval of biofuel for commercial use in 2011.

A decade after the first test flight, airlines around the world have flown nearly 170,000 passenger flights on a blend of biofuel and petroleum fuel.

Boeing has worked with partners across the globe to develop sustainable biofuel supplies that can be scaled and priced competitively with traditional jet fuel. Projects have used feedstocks such as forestry and agriculture waste, Brazilian sugarcane, and plants irrigated by coastal seawater in the United Arab Emirates.

Our cover this week is a great shot of the new Boeing 777X which has a wingspan of 235 feet! However, the wing tips fold up on the 777X when landed to allow better access to existing airport ramps. And yes, some 2,000 orders and greater cabin width seating of the B777 series explains why many IFEC manufacturers are interested in the interior entertainment. Here is more on the plane: Sales flurry takes Boeing 777 past 2,000 orders

Next, we wondered about the presentation that Michael Childers made at CES last week, so we asked him and he told us a bit more about it. One of the key themes of this year’s CES in Las Vegas (January 8-11, 2019) was “Shaping the Future with Deep Data.” As you probably know, APEX Board Member and Technology Chair, Michael Childers, was a member of a panel on Wednesday, January 9, that dealt with the subject of data-driven technology and he told us: “As more and more elements of the travel experience are becoming automated, and biometrics even reduce personal engagement during boarding, airlines are faced with how to personalize the passenger experience with less personal engagement. The future of IFEC is in data-driven passenger engagement,” Childers told the assemblage. “Inflight entertainment selections are being increasingly driven by data analytics,” he said, “and the future of targeted advertising and e-commerce rely on the same databases. The difficulty is that that the needed data is captured incrementally over seven, eight or nine touch-points and are retained in silos that are not interconnected. So the challenge is to break down the silos and use the data to drive the experiences while respecting the GDPR rules that govern the use of personal data,” he said. Childers, who is Chief Consultant, Content & Media Strategy at Lufthansa Systems will be a keynote speaker on the same topic at the EyeforTravel Conference in San Francisco on March 14.

Editor’s Note: If you don’t know about “silos” you are in the same boat as us – so we asked him, and here is what Michael told IFExpress: “Silos” are simply data repositories. Data collected during ticketing, for example, is retained in a “Ticketing” database, but isn’t available for use elsewhere on the journey. I strongly believe that IFEC no longer stands alone but represents the passenger-facing component of a broader program of digital passenger engagement. We are moving toward an “engagement economy” supported by “engagement currencies.” As fewer airline employees are passenger-facing, the engagement with pax becomes digital, and the portal for that digital engagement is the IFEC system. Therefore, the challenge becomes one of increasing that engagement with personalization as one of the means. That personalization comes from data that we get from passengers through permissions management. Don’t be surprised if an airline comes up with its own Alexa or Siri, but one that communicates in text.”

On another note; if you noticed the IFEC BUZZ this week, Rich Salter is now a consultant (with a ton of industry experience, we might add) and if you need his help, send him a note at rsalter23@gmail.com.

Now, lets get to work!


PANASONIC
Panasonic Avionics Corporation (Panasonic Avionics) has appointed Kimberly Chainey as its General Counsel.
Ms. Chainey is a legal leader and corporate generalist with over 15 years experience advising senior executives of Fortune 500 companies, venture businesses and government entities. As chief legal officer and a member of the executive team, Chainey will advise Panasonic Avionics’ leadership on the company’s strategic direction.


GOGO
Gogo Inc., a global provider of broadband connectivity products and services for aviation, announced that as of December 31st, 2018, modifications to protect against de-icing fluid contamination on its 2Ku North American aircraft have achieved positive results. As a result of the success of the de-icing modifications, Gogo did not incur certain forecasted costs associated with further de-icing efforts in Q4 2018, and is raising its Adjusted EBITDA guidance to the high end of its previously announced range of $45 million to $60 million for the year 2018. As of December 31, 2018, Gogo had experienced no incidents of 2Ku system degradation on aircraft with Gogo’s recent de-icing modifications. Based on Federal Aviation Administration (FAA) data listing airports that have experienced de-icing activity, Gogo estimates that in 2018, aircraft with Gogo de-icing modifications flew more than 5,000 flights that had been de-iced. As of December 31, 2018, Gogo’s de-icing modifications had been installed on more than 675 aircraft, representing almost 97% of the installed North American fleet. While the vast majority of global de-icing activities occur in North America, Gogo will modify existing 2Ku installations on international aircraft as part of each airline’s maintenance program. All newly equipped 2Ku aircraft globally will include the de-icing modifications at the time of installation if requested by the airline. Availability across the entire Gogo 2Ku fleet was approximately 98% for the month of December, which compares to approximately 90% for the same period last winter. “On December 11, 2018, we announced zero incidents of 2Ku degradation on aircraft installed with Gogo’s recent de-icing modifications and we are pleased to announce that this success extended through the end of 2018,” said John Wade, president of Gogo’s Commercial Aviation division.


SITAONAIR
Rolls-Royce is the launch customer for SITAONAIR’s game-changing e-Aircraft DataHub – a new, state-of-the-art neutral aircraft data management service designed to bring significant, distinct benefits to airlines and original equipment manufacturers (OEMs). Today, harnessing aviation data represents the key to unlocking the untapped potential of modern aircraft. It is crucial to everything from minimizing airline maintenance costs and maximizing aircraft availability, to empowering manufacturers and maintenance, repair and overhaul (MRO) teams to be at their most effective. However, several hurdles have hampered progress – including airlines’ reluctance to permit OEMs access to sensitive data, and the complexity of achieving timely and tailored secure data transfer and distribution to relevant parties.

SITAONAIR’s e-Aircraft DataHub overcomes these hurdles. As a secure, cloud-based aircraft data-brokering service, it enables airlines to share selected aircraft data from diverse fleets, aircraft models and formats with their chosen OEM, at no cost to the airline.


THALES
Marking the successful final launch to deploy the Iridium NEXT constellation, which occurred Friday, January 11, 2019, Thales announces it has signed Marlink and Speedcast to expand its official network of resellers for ThalesLINK satellite communications (satcom) solutions. These solutions enable connectivity for people anytime, anywhere with Iridium CertusSM. This visible commitment to Iridium Certus was also recently recognized by Iridium who dedicated satellite SV-125 to Thales for its role as a value added manufacturer in aviation, land and maritime markets.

  • Thales adds resellers to connect people at any moment, anywhere with Iridium CertusSM.
  • Marlink and Speedcast sign as certified resellers of ThalesLINK offering land and maritime mobile connectivity capabilities.
  • Iridium dedicates a satellite to Thales for its role as a value added manufacturer.

COLLINS AEROSPACE was selected by Norwegian to supply CabinConnect inflight connectivity solution for 787-9s and 737MAXs used for long-haul services; >50% of fleet is expected to be equipped by 2020 and Wi-Fi on MAX will begin in mid-January.


AIRBUS
Delta Air Lines has ordered 15 additional A220 aircraft, bringing to 90 the total of the new generation, highly fuel-efficient jetliners the world’s second-largest airline has on order. The additional orders are the airline’s first for the -300 model. Delta also converted earlier A220 orders to the larger -300, bringing to 50 the number of A220-300s on order.
Delta placed its initial order for 75 aircraft in 2016. Airbus will produce the A220-300s at a new U.S. assembly facility in Mobile, Alabama. Construction of the plant, to be located adjacent to the existing Airbus A320 assembly facility, will begin later in January. The A220 is the only aircraft purpose-built for the 100-150 seat market; it delivers unbeatable fuel efficiency and true widebody comfort in a single-aisle aircraft. The A220 brings together state-of-the-art aerodynamics, advanced materials and Pratt & Whitney’s latest-generation PW1500G geared turbofan engines to offer at least 20 percent lower fuel burn per seat compared to previous generation aircraft. With a range of up to 3,200 nm (5920 km), the A220 offers the performance of larger single-aisle aircraft. With an order book of more than 500 aircraft to date, the A220 has all the credentials to win the lion’s share of the 100- to 150-seat aircraft market estimated to represent at least 7,000 aircraft over the next 20 years.

A220 – The newest addition to the Airbus family of commercial aircraft, the A220, has received 180-minute extended operations (ETOPS*) approval from the Canadian civil aviation authority, Transport Canada. This achievement paves the way for A220 customers to start new direct non-limiting routings over water, remote or underserved regions.
The A220 is the first commercial airliner to obtain domestic ETOPS certification from Transport Canada. This capability is available as an option for A220-100 and A220-300 operators, enabling them to fly for up to 180-minutes from the nearest diversion airport.


BOEING
Embraer and Boeing have welcomed approval by the Government of Brazil of the strategic partnership that will position both companies to accelerate growth in global aerospace markets. The government’s approval comes after the two companies last month approved terms for the joint venture that will be made up of the commercial aircraft and services operations of Embraer. Boeing will hold an 80 percent ownership stake in the new company and Embraer will hold the remaining 20 percent. The companies have also agreed to the terms of another joint venture to promote and develop new markets for the multi-mission medium airlift KC-390. Under the terms of this proposed partnership, Embraer will own a 51 percent stake in the joint venture, with Boeing owning the remaining 49 percent. Once Embraer’s Board of Directors ratifies its prior approval, the two companies will then execute definitive transaction documents. The closing of the transaction will be subject to shareholder and regulatory approvals and customary closing conditions. Assuming the approvals are received in a timely manner, the transaction is intended to close by the end of 2019.


OTHER NEWS


It is hard to believe but it has been 25 years since our first newsletter was sent out and we thank all of our readers that signed up, we thank all the folks we have interviewed, and we especially thank all of our sponsors – because it is the sponsors that provide you IFExpress news! So let’s embark on 2019 with the latest round of aviation news.

You will notice that this year’s aviation industry magazine, Aviation Week has voted Boeing’s Dennis A. Muilenburg as its 2018 Person of the Year. He is this week’s BUZZ because we thought our readers might like to a face with the name. The Aviation Week folks chose a person, in this case, who has had a major impact on the industry while at Boeing where he has been employed since 1985. After joining Boeing, he served in positions in commercial airplane and defense. He was promoted to vice president  of the company in 2015. Meanwhile in the Airplane Company, Jim McNerney restored order after inheriting a company that had been lumbered with negative politics that were accompanied by numerous Airbus wins. It took McNerney almost 10 years to steady Boeing and propel them into their recent growth. In February 2016 it was announced that Muilenburg would replace McNerney and Muilenburg would become the chairman of the board of directors. Congratulations Dennis!

Along another line, it looks like the 797 will be an airplane whose size fit holds 225 – 265, slotting it between the 737 and the 787/777X. The new jetliner will have a range of approximately 5,000 nm (9,260 km). We expect the plane to kicked off later this year. And, yes, our rectangle above is a drawing of the product in flight.


AIRBUS

  • AIR CANADA agreed to purchase four A321-200s (5681/5733/6210/6232) from WOW air for delivery in January 2019.
  • Moxy – The start-up U.S. airline code-named “Moxy” has signed a firm order with Airbus to purchase 60 A220-300 aircraft. Moxy is the new airline venture led by David Neeleman, one of the industry’s most innovative entrepreneurs and founder of JetBlue Airways. In addition to JetBlue, Neeleman also founded Azul Brazilian Airlines and is the controlling investor in the revitalization of TAP Air Portugal. Plans for Moxy, a low-cost airline were unveiled at the Farnborough International Air Show in July. “The A220-300 is the right airplane for a new airline that will be focused on passenger service and satisfaction,” said Neeleman. “With a low cost of operation and spacious cabin, the A220 will allow us to provide passengers with lower fares and a high quality, comfortable flying experience. The A220’s ability to operate profitably in thin, underserved markets across a broad spectrum of ranges is unique”. The order was completed the final week of December. Airbus will produce the A220-300 at a new U.S. assembly facility in Mobile, Alabama. Construction of that plant, to be located adjacent to the existing Airbus A320 assembly facility, will begin later this month. The A220 is the only aircraft purpose built for the 100-150 seat market; it delivers unbeatable fuel efficiency and true widebody comfort in a single aisle aircraft. The A220 brings together state-of-the-art aerodynamics, advanced materials and Pratt & Whitney’s latest-generation PW1500G geared turbofan engines to offer at least 20 percent lower fuel burn per seat compared to previous generation aircraft. With a range of up to 3,200 nm (5020 km), the A220 offers the performance of larger single-aisle aircraft. With an order book of more than 500 aircraft to date, the A220 has all the credentials to win the lion’s share of the 100- to 150-seat aircraft market estimated to represent at least 7,000 aircraft over the next 20 years.
  • JetBlue Airways – JetBlue Airways has firmed up an order for 60 A220-300 aircraft, the larger model of the new, industry-leading A220 series. JetBlue’s existing Airbus fleet includes 193 A320 and A321ceo aircraft in operation, with an additional 85 A321neo aircraft on order. The order was completed the last week of December. Airbus will produce the A220-300 aircraft at a new U.S. assembly facility in Mobile, Alabama. Construction of the plant, to be located adjacent to the existing Airbus A320 assembly facility, will begin later this month. The A220 is the only aircraft purpose built for the 100-150 seat market; it delivers unbeatable fuel efficiency and true widebody comfort in a single-aisle aircraft. The A220 brings together state-of-the-art aerodynamics, advanced materials and Pratt & Whitney’s latest-generation PW1500G geared turbofan engines to offer at least 20 percent lower fuel burn per seat compared to previous generation aircraft. With a range of up to 3,200 nm (5020 km), the A220 offers the performance of larger single-aisle aircraft. With an order book of more than 500 aircraft to date, the A220 has all the credentials to win the lion’s share of the 100- to 150-seat aircraft market estimated to represent at least 7,000 aircraft over the next 20 years.

BOEING

  • Boeing delivered 69 737 airplanes in December and set a new annual record of 806 deliveries in 2018, surpassing its previous record of 763 deliveries in 2017. Even as Boeing delivered more jetliners, the company again grew its significant order book with 893 net orders, including 203 airplane sales in December. With a seven-year order backlog, Boeing increased production of the popular 737 in the middle of 2018 to 52 airplanes per month. Nearly half of the year’s 580 737 deliveries were from the more fuel-efficient and longer-range MAX family, including the first MAX 9 airplanes. At the same time, Boeing continued to build the 787 Dreamliner at the highest production rate for a twin-aisle airplane to support high demand for the super-efficient jet. The Dreamliner program finished with 145 deliveries for the year. Deliveries of various 777, 767 and 747-8 models rounded out the total of 806 airplanes for the year. 767 deliveries include the transfer of 10 767-2C aircraft to Boeing Defense, Space & Security for the U.S. Air Force KC-46 tanker program.
  • On the orders front, Boeing achieved sales success across its airplane portfolio with 893 net orders valued at $143.7 billion according to list prices. While growing the order backlog for nearly every program, the company showed particular strength in the twin-aisle category with 218 widebody orders last year.
  • The 787 Dreamliner extended its status as the fastest-selling twin-aisle jet in history with 109 orders last year or about 1,400 since the program launched. Highlights include Hawaiian Airlines switching from the Airbus A330 to the 787 and Turkish Airlines becoming a new customer. American Airlines and United Airlines added to the growing list of repeat Dreamliner purchases with 47 and 13 additional jets respectively. The 777 family continued its steady sales momentum with 51 net orders in 2018, driven by sales of the 777 Freighter to DHL Express, FedEx Express, ANA Cargo, Qatar Airways and other major freight operators. With additional sales in December, the 777 program exceeded 2,000 orders since its launch. The 737 MAX family also achieved a major sales milestone in December, surpassing 5,000 net orders with 181 new sales during December. For the full year, the 737 program achieved 675 net orders, including sales to 13 new customers.
  • GREEN AFRICA AIRWAYS, Nigeria agreed to order 50 737 MAX 8s, and option 50; it plans startup in 2019.
  • CHINA AIRCRAFT LEASING GROUP (CALC) agreed to order 25 737 MAXs for delivery starting in 2023, and option 25 more for delivery starting in 2025; deal increases its firm 737 MAX orderbook to 75. It is also committed for >215 A320s and 10 C919s.
  • FLYADEAL (Saudi Arabian Airlines) agreed to order 30 737 MAX 8s, and option 20; it will configure aircraft with 189 seats.
  • SPIRIT AEROSYSTEMS signed MOA with Boeing that establishes (among other items) pricing terms for 737NG, 737 MAX, 767, 777F, 777-9 and 787 programs into next decade, investments for tooling/capital for 737 rate increases, joint cost reduction programs for 777X and 787, consent for acquisition of ASCO INDUSTRIES, plus release of liability for 737 disruption activity.
  • GOL completed sale/leaseback transactions with both Castlelake and Apollo Aviation Group for 13 737-800s that will be removed from fleet in 2019-2021 and replaced by 737 MAXs.

OTHER NEWS


OTHER STUFF, NON AVIATION

Record-setting domestic passenger traffic and robust domestic economy to drive the need for 2,300 new airplanes, valued at $320 billion

New Dehli, India | December 19, 2018–

Boeing [NYSE: BA] raised its long-term forecast for commercial airplanes in India as unprecedented domestic passenger traffic and rapidly expanding low-cost carriers (LCCs) drive the need for 2,300 new jets – valued at $320 billion – over the next 20 years.

This year alone, more than 10 million passengers, on average, traveled within India each month.

“To meet this increased domestic air traffic growth, we see the vast majority of available airplane seats coming from LCCs,” said Dinesh Keskar, senior vice president of Sales for Asia Pacific and India, Boeing Commericial Airplanes. “The success of this market segment will mean more than 80 percent of all new airplane deliveries in India will be single-aisles. And the superior economics and fuel efficiency of the new 737 MAX airplane will be the perfect choice for Indian carriers.”

According to Boeing’s Commercial Market Outlook (CMO), India’s commercial aviation industry has achieved 51 consecutive months of double-digit growth. This growth is matched in other sectors of the country’s economy.

“The Indian economy is projected to grow by nearly 350 percent over the next two decades to become the third largest economy in the world,” said Keskar. “This will continue to drive the growth of India’s middle class and its propensity to travel both domestically and internationally, resulting in the need for more new fuel-efficient short- and long-haul airplanes.”

New Airplane Deliveries to India through 2037 by size

Airplane type

Seats

Total deliveries

Market value

Regional jets

90 and below

10

<$1 billion

Single-aisle

90 and above

1,940

$220 billion

Widebody

200 and above

350

$100 billion

Total

2,300

$320 billion

With more than five percent of the world’s fleet expected to operate in India by 2037, services will continue to be a major driver of growth in the region’s commercial aviation industry. Commercial services such as flight training, engineering and maintenance, digital analytics among others will provide airlines with optimal operational efficiencies as they continue to expand to meet growth in the marketplace. In the South Asian market, including India, Boeing forecasts a commercial services market valued at $430 billion over the next 20 years.

Formerly known as Boeing’s Current Market Outlook, the CMO is the longest running jet forecast and regarded as the most comprehensive analysis of the commercial aviation industry. The full report can be found at www.boeing.com/cmo.

Airline becomes the first airline in the Korean peninsula to fly the fuel-efficient 737 jet
Eastar Jet continues to modernize its fleet and expand its network

Seattle, Washington | December 19, 2018–Boeing [NYSE: BA] today delivered the first 737 MAX for Eastar Jet, making it the first airline in Korea to operate the more fuel-efficient and longer-range version of the popular 737 jet.

“We are excited to take delivery of this brand new 737 MAX airplane,” said Jong-Gu Choi, President of Eastar Jet. “The introduction of the 737 MAX into our fleet reflects the efforts we are making to modernize our product offering and provide a world-class experience to our customers. In addition, the superior economics and longer-range capability of the 737 MAX will enable us to expand our network into new and existing markets more efficiently, which will help us achieve long-term growth.”

Eastar Jet will take delivery of another 737 MAX 8 airplane later this month, which will join the airline’s existing fleet of Next-Generation 737s.

The MAX incorporates the latest technology CFM International LEAP-1B engines, Advanced Technology winglets, and other airframe enhancements to improve performance and reduce operating costs. In Eastar Jet configuration, the MAX 8 will be able to fly more that 3,100 nautical miles (5,740 kilometers) – 500 nautical miles farther than the previous 737 models – while providing 14 percent better fuel efficiency.

“Eastar Jet has achieved impressive growth flying the Boeing 737. With the new 737 MAX, the airline will be able to take their performance to the next level. They can fly farther, lower their operating costs, and provide an even better experience for their passengers,” said Ihssane Mounir, senior vice president of Commercial Sales & Marketing for The Boeing Company. “We are proud of our partnership with Eastar Jet and we are excited to see them leverage the MAX to compete in one of the world’s most dynamic aviation markets.”

In addition to modernizing its fleet, Eastar Jet will use Boeing Global Services to enhance its operations. These services include Maintenance Performance Toolbox, which delivers real-time access to information technicians need to quickly resolve emergent airplane maintenance issues and keep airlines on schedule.

Based at Gimpo/Incheon International Airport in Seoul, Korea, Eastar Jet launched operations in 2007 with Next-Generation 737s. Since then, Korea’s low-cost carrier (LCC) market has grown significantly and has become the largest LCC market in Northeast Asia. Over the past five years, the market segment has grown more than 30 percent annually. Based on this growth and the introduction of the 737 MAX 8 to its fleet, Eastar Jet will be able to expand into new markets such as Singapore and Kuala Lumpur among other future destinations.

class=”wd_subtitle wd_language_left”>The commitment represents the largest aircraft deal ever for the African continent

Nigerian value airline selects market-leading 737 MAX to build its flagship fleet
Continent’s fleet forecast to more than double over next 20 years

Seattle, Washington | December 21, 2018– Boeing [NYSE:BA] and Lagos-based Green Africa Airways today announced a commitment for up to 100 737 MAX 8 aircraft, evenly split into 50 firm aircraft and 50 options, as the airline gears up to begin commercial operations. The total deal carries a list-price of $11.7 billion, the largest aircraft agreement from Africa, and will be reflected on Boeing’s Orders and Deliveries website once finalized.

“Today is a historic day for the Nigerian and African aviation industry,” said Babawande Afolabi, Founder & CEO, Green Africa Airways. “This landmark deal takes us much closer to our long-held dream of building a world-class airline that will unlock a new realm of positive possibilities for millions of customers. Broadly speaking, this deal is a bold symbol of the dynamism, resilience and soaring entrepreneurial drive of the next generation of Nigerians and Africans.”

Green Africa Airways, a value airline based in Lagos, Nigeria aims to offer safe, quality and affordable air travel and be a significant contributor to the economic development of Nigeria and the African continent. The new airline has received its Air Transport License from the Nigerian government and is anchored by a group of senior industry leaders led by Tom Horton, former Chairman and CEO of American Airlines, William Shaw, Founder and former CEO of VivaColombia and Virasb Vahidi, former CCO of American Airlines.

Nigeria is uniquely positioned to be the home of the next major value airline. The strategic partnership with Boeing positions Green Africa Airways to expand and improve air travel for customers in Nigeria, and further strengthens the relationship between the United StatesNigeria and Africa,” Vahidi said.

The airline initially plans to develop the Nigerian market and then build a strong Pan African network. According to Boeing’s 20-year Commercial Market Outlook, airlines in Africa will require 1,190 new airplanes as the continent boosts both intra-continental and intercontinental connectivity over the next couple of decades.

“The growth potential for air travel across Nigeria and Africa is extraordinary with the airplane fleet expected to more than double over the next 20 years. We are delighted that Green Africa Airways has selected the 737 MAX to serve this expanding market,” said Ihssane Mounir, Senior Vice President of Commercial Sales & Marketing, The Boeing Company. “We look forward to Green Africa Airways building their fleet with the MAX and taking advantage of the jet’s efficiency and dependability to open new options across Nigeria and the African continent. Boeing will be a trusted partner to Green Africa Airways as the MAX is introduced into their operations and through their long-term success.”

The 737 MAX is the fastest-selling airplane in Boeing history, accumulating more than 4,800 orders from over 100 customers worldwide. The airplane’s superior performance is enabled by the latest technology in the single-aisle market, including advanced CFM International LEAP-1B engines, Advanced Technology winglets, and other airframe enhancements.

Growing Middle East carrier commits to 30 orders and 20 options
Airline selects efficient 737 MAX for future fleet and international expansion

Seattle, Washington | December 21, 2018– Boeing [NYSE:BA] and flyadeal today announced the Middle East carrier is growing its fleet with the 737 MAX to take advantage of the airplane’s fuel efficiency, range and passenger comforts. The airline committed to ordering 30 airplanes with options for 20 more in a deal that would be valued at up to $5.9 billion at list price.

The deal is subject to both sides concluding final terms and conditions and a purchase agreement. It will appear on Boeing’s Orders & Deliveries website once all contingencies are cleared.

flyadeal, a subsidiary of Saudi Arabian Airlines, offers affordable flights within Saudi Arabia. Over the past year, the airline has conducted an evaluation process for 50 narrowbody airplanes to support domestic growth and potential international expansion. While flyadeal has been operating new Airbus A320s, the airline says it has selected the 737 MAX for the future.

Director General of Saudi Arabian Airlines, His Excellency Eng. Saleh bin Nasser Al-Jasser said, “The demand for air transport services in the domestic market of the Kingdom of Saudi Arabia has grown exponentially. A new brand, with a fresh identity focused on low-fares, flyadeal has brought to the market a new choice – which has been received very positively.”

Al-Jasser added: “The low-fares airline will continue to expand rapidly, and the addition to the fleet aligns well with flyadeal’s target to grow its presence in the domestic market and cover new markets outside of Saudi Arabia.”

flyadeal selected the 737 MAX 8 which has capacity for 189 passengers in a one-class configuration. Compared to flyadeal’s current fleet of A320s, the MAX 8 carries 12 more passengers and provides 8 percent lower operating costs per seat.

“flyadeal has opened up more affordable flights to millions of travelers and we are honored that the airline has chosen the 737 MAX to power its exciting expansion,” said Ihssane Mounir, senior vice president of Commercial Sales & Marketing for The Boeing Company. “We have supplied commercial airplanes to Saudi Arabia for more than 70 years and we look forward to finalizing this agreement and delivering advanced jetliners to flyadeal in the years ahead.”

Boeing’s partnership with Saudi Arabia’s aviation industry began in 1945 with the delivery of a DC-3 aircraft that gave birth to commercial air travel in the kingdom. Over the past seven decades, airlines in the kingdom have operated almost every Boeing commercial jetliner, including the 707, 737s Classics, MD-11Fs, 747s, 777s, and 787 Dreamliners.

The 737 MAX is the fastest-selling airplane in Boeing history, accumulating more than 4,800 orders from over 100 customers worldwide. The airplane’s superior performance is enabled by the latest technology in the single-aisle market, including advanced CFM International LEAP-1B engines, Advanced Technology winglets, and other airframe enhancements. For more information and feature content, visit www.boeing.com/commercial/737max.

Based in Jeddah, flyadeal offers flights to eight domestic destinations including RiyadhJeddahDammam, Qassim, Tabuk, Gizan, Madinah and Abha.

Morocco’s flag carrier continues to modernize its fleet with the first of four 737 MAX 8s
Royal Air Maroc’s first 787-9 Dreamliner also arrived this month

Seattle, Washington | December 21, 2018–Boeing [NYSE:BA] today delivered the first 737 MAX for Royal Air Maroc, which plans to use the fuel-efficient, longer-range version of the popular 737 jet to expand and modernize its fleet.

Morocco’s flag carrier – which welcomed its first 787-9 Dreamliner last week – will take delivery of three more 737 MAX 8s and three more 787-9s over the next few months as part of its strategic plan to strengthen its operations.

“We are pleased to receive our airline’s first 737 MAX, which will soon be joined by three other airliners from the same family. These new 737 MAX airplanes expand our medium-haul portfolio, which forms the backbone of Royal Air Maroc’s fleet. Our choice of this airplane is in line with our strategy of continuously expanding and modernizing our fleet, and comes just a few days after the announcement of Royal Air Maroc’s invitation to join the most prestigious Oneworld Alliance. This in turn will further strengthen our leadership position on the continent, both for our country and for Royal Air Maroc,” said Abdelhamid Addou, CEO and Chairman of Royal Air Maroc.

The 737 MAX 8 airplanes will build on the success of Royal Air Maroc’s fleet of Next-Generations 737s. The MAX incorporates the latest technology CFM International LEAP-1B engines, Advanced Technology winglets, and other airframe enhancements to improve performance and reduce operating costs. It also integrates engine technology to reduce the operational noise footprint of the airplane.

Compared to the previous 737 model, the MAX 8 can fly 600 nautical miles (1,112 kilometers) farther, while providing 14 percent better fuel efficiency. The MAX 8 can seat up to 178 passengers in a standard two-class configuration and fly 3,550 nautical miles (6,570 kilometers).

Royal Air Maroc plans to deploy its 737 MAX 8 on routes from Casablanca to Accra (Ghana), Lagos (Nigeria), LondonHeathrow (England), Bologna (Italy) and Paris(Orly and CDG). With the 737 MAX and 787 Dreamliner, Royal Air Maroc will now operate the most capable airplane in the narrowbody and medium widebody segments. It’s an unrivaled combination of efficiency and performance that will allow the airline to profitably grow its network and business,” said Ihssane Mounir, senior vice president of Commercial Sales & Marketing for The Boeing Company.

“We are thrilled to celebrate two major milestones this month with our long-time customer Royal Air Maroc. Over the past five decades, we have been honored to see them grow on the wings of Boeing airplanes and we are very excited to see the next chapter of our partnership.”

Boeing has also partnered with the industrial sector in Morocco, supporting the development of the kingdom’s aviation industry through initiatives such as the joint venture MATIS Aerospace that specializes in producing wire bundles and wire harnesses for airplanes. Boeing is also helping to educate local youth through partnerships with EFE-Morocco and the INJAZ Al-Maghrib association.


This is the last edition of IFExpress for 2018 and it is a big one! There was a lot happening over the past 7 days, so let’s dig in.

Boeing

Boeing, COMAC, 737MAX:
Boeing and joint venture partner Commercial Aircraft Corporation of China, Ltd (COMAC) celebrated the delivery of the first airplane from the new 737 Completion and Delivery Center in Zhoushan, China. (See rectangle) Air China received the first plane, marking a new era in Boeing’s partnership with the Chinese aviation industry. Delivery of the first MAX 8, assembled in Renton, Washington and completed in China, comes 20 months after construction began at the 100-acre site.

Boeing 737 MAXs for Chinese airlines will be flown from Seattle to Zhoushan, where the joint Boeing-COMAC Completion Center will complete interior work on the airplanes. The statement of work will gradually expand to include painting with the addition of three paint hangers.  Once completed, airplanes will move to the adjacent Boeing-operated delivery center for customer acceptance activities and delivery formalities.

The facility, which covers 666,000 sq ft in total, is designed to support the entire 737 MAX family of airplanes, from the long-range MAX 7 to the high-capacity MAX 10.  With about one third of all 737 deliveries going to Chinese customers, the Zhoushan facility will enable Chinese airline customers to update and expand their fleets with the most technologically-advanced Boeing single-aisle airplanes available. In addition, the business and the partnerships Boeing is developing in China are integral to adding capacity and aerospace jobs in the U.S China is on course to become the largest commercial aviation market in the world.  Boeing’s latest Commercial Market Outlook forecasts that China will need 7,680 new airplanes worth $1.2 trillion USD over the next 20 year and another $1.5 trillion USD in commercial services to support the country’s growing fleet of airplanes.

787th Dreamliner:
Boeing  delivered the 787th 787 Dreamliner to come off the production line, marking a special milestone for the super-efficient airplane family and the fastest-selling twin-aisle jet in history. Since its first delivery in September, 2011, the 787 family has flown nearly 300 million passengers on more than 1.5 million flights around the world, including more than 210 new nonstop routes made possible by the airplane’s superior fuel efficiency and range. The airplane was delivered to AerCap, the world’s largest lessor and 787 customer. Sporting a special logo commemorating the production milestone, the airplane will be leased and operated by China Southern, which continues to expand its long-haul fleet of 787 Dreamliners, including 10 787-8s and eight 787-9s. China Southern Airlines first ordered 10 787-8 Dreamliners in 2005 and further increased its capability on long-haul routes when they placed an order for 787-9s in 2016. The 787s have enabled the airline to launch a number of non-stop global routes, connecting Guangzhou to London and Rome in Europe; Vancouver, British Columbia, in North America; and Perth, Auckland, and Christchurch in the Oceania region.

ELG:
Boeing and ELG Carbon Fibre announced a partnership to recycle excess aerospace-grade composite material, which will be used by other companies to make products such as electronic accessories and automotive equipment. The agreement – the first of its kind for the aerospace industry – covers excess carbon fiber from 11 Boeing airplane manufacturing sites and will reduce solid waste by more than one million pounds a year. Carbon-fiber reinforced material is extremely strong and lightweight, making it attractive for a variety of uses, including in building the super-efficient 787 Dreamliner and the all-new 777X airplane. As the largest user of aerospace-grade composites from its commercial and defense programs, Boeing has been working for several years to create an economically viable carbon fiber reuse industry. The company improved its production methods to minimize excess and developed a model for collecting scrap material. But technical barriers stood in the way of repurposing material that had already been “cured” or prepped for use in the airplane manufacturing process. UK-based ELG developed a proprietary method to recycle “cured” composites so they do not have to be thrown out.

To prove that the recycling method can be applied on a grand scale, Boeing and ELG conducted a pilot project where they recycled excess material from Boeing’s Composite Wing Center in Everett, Wash., where the massive wings for the 777X airplane are made. ELG put the excess materials through treatment in a furnace, which vaporizes the resin that holds the carbon fiber layers together and leaves behind clean material. Over the course of 18 months, the companies saved 1.5 million pounds of carbon fiber, which was cleaned and sold to companies in the electronics and ground transportation industries. Based on the success of the pilot project, Boeing says the new agreement should save a majority of the excess composite material from its 11 sites, which will support the company’s goal to reduce solid waste going to landfills 20 percent by 2025.

Boeing and ELG are considering expanding the agreement to include excess material from three additional Boeing sites in Canada, China and Malaysia. As a result of the partnership, ELG estimates the number of its employees will nearly triple from 39 in 2016 to an expected 112 by the end of 2019 as the recycling market continues to expand.

Embraer:
Boeing and Embraer have approved to the terms of a strategic partnership that would position both companies to accelerate growth in global aerospace markets. The approved terms define the joint venture comprising the commercial aircraft and services operations of Embraer, in which Boeing will hold an 80 percent ownership stake and Embraer will hold the remaining 20 percent. The transaction remains subject to approval by the Government of Brazil, after which Embraer and Boeing intend to execute definitive transaction documents. The closing of the transaction will then be subject to shareholder and regulatory approvals and customary closing conditions. Under the terms of the proposed partnership, Boeing will acquire an 80 percent ownership stake in the joint venture for $4.2 billion. The partnership is expected to be neutral to Boeing’s earnings per share in 2020 and accretive thereafter. Estimated annual pre-tax cost synergies of approximately $150 million are anticipated by the third year of operations.


Gogo

Gogo, a global provider of broadband connectivity products and services for aviation, announced that modifications to its 2Ku installations on North American aircraft to protect against de-icing fluid contamination have achieved positive results. Gogo is providing an update on the performance of its 2Ku system in order to respond to investor inquiries stemming from recent significant winter storm activity, including Diego, which occurred just this past weekend.

As of December 10, Gogo had experienced no incidents of 2Ku system degradation on aircraft installed with Gogo’s recent de-icing modifications. Based on Federal Aviation Administration (FAA) data listing airports that have experienced deicing activity, Gogo estimates that aircraft with Gogo deicing modifications have been de-iced prior to 2,601 flights so far this winter. And as of December 10, Gogo’s de-icing modifications had been installed on more than 600 aircraft, representing almost 95% of the Company’s North American fleet. While the vast majority of global de-icing activities occur in North America, Gogo will modify existing 2Ku installations on international aircraft as part of each airline’s maintenance program. All newly equipped 2Ku aircraft globally will include the de-icing modifications at the time of installation.As of December 10, 2018, 2Ku availability across the entire Gogo 2Ku fleet was approximately 98% month to date, as compared to 92% for the same period last winter.


Thales

Singapore Airlines is known globally for its high standards of service and cabin experience. The airline has been awarded the internationally acclaimed five-star rating from Skytrax and was recognized by the organization in 2018 as the ‘World’s Best Airline” for the fourth time, operating a modern passenger fleet of more than 100 aircraft. For the upcoming fleet of A350-900 medium haul aircraft, Singapore Airlines has entrusted Thales to sustain their brand promise of improving service excellence, retaining competitive advantage and continuing to meet and exceed customer expectations. This new fleet of aircraft will be equipped with Thales’s AVANT IFE system, featuring an innovative and personalized user experience uniquely designed for Singapore Airlines. The 40 Business Class passengers will enjoy 17” High Definition touch screen monitors with a complementing handset that operates similarly to a consumer smart phone, enabling passengers to use it as a secondary device to control the seatback monitor. The 263 Economy Class seats will feature the latest 11.6” touchscreen monitors. The sleek and lightweight design of AVANT provides travelers an exceptional inflight experience with Singapore Airlines’ vast choice of entertainment. The IFE solution is designed with a new Signature user interface that is unique to Singapore Airlines, and offers a more intuitive user experience with new additional navigational options.

Some key features on AVANT include:

  • Media Filter: This enables passengers to efficiently locate desired media by filtering content through the various categories, genres, languages and available flight duration;
  • Flight Info Map: When enjoying movies or TV shows, passengers are able to concurrently bring up flight info without exiting the media player; and,
  • Air Mouse (available in Business Class): The touch screen handset functions as a remote control by directing the onscreen cursor on the seatback monitor.

Airbus

FLY YOUR IDEAS:
Airbus selected 51 international student teams to go into round two of its sixth Fly Your Ideas global challenge. Students were invited to innovate in six key areas covering Electrification, Data Services, Cyber Security, Internet of Things, Artificial Intelligence and Mixed Reality.

PEOPLE:
Airbus SE appointed Philippe Mhun, 56, as Chief Programmes and Services Officer for Airbus Commercial Aircraft, effective 01 January 2019. Mhun, currently Head of Customer Services at Airbus, will succeed EVP Head of Programmes Didier Evrard, 65, who retires around the turn of the year after 41 years associated with Airbus, 20 of those in top management positions.

ACIC:
Airbus China Innovation Centre (ACIC) signed a Memorandum of Understanding (MoU) with Royole Technology – a global pioneer in flexible displays, flexible sensors and foldable smartphones. The two parties will collaborate to develop applications that implement flexible electronic technologies in cabin environments and investigate the possibilities for commercial cooperation. Airbus has been dedicated to design and manufacture aircraft that provide a better cabin experience for passengers. By investigating the use of flexible displays and flexible sensors in the cabin, Airbus plans to cooperate with Royole Technology by building a futurized, digitalized and personalized cabin to further improve the cabin environment, cabin safety and energy saving. Based in Shenzhen, Airbus China Innovation Centre is the first Innovation Centre set up by Airbus in Asia. Its mission is to fully leverage local advantages including innovative talents, partners and the eco-system, and combine this with Airbus’ expertise in aerospace to explore breakthroughs in technologies, business models and new growth opportunities. ACIC is now fully operational with the official office opening ceremony due to take place in early 2019.

AVOLON:
Dublin, Ireland-headquartered aircraft lessor Avolon firmed up an order for 75 A320neos and 25 A321neos. The agreement is the single largest order for Airbus aircraft ever placed by Avolon. The agreement takes Avolon’s cumulative orders with Airbus to 284 aircraft (240 single-aisles and 44 widebody aircraft) including the A321neo, the A330neo and the A350 XWB. The new order for 100 aircraft, together with the 22 single-aisles and four wide-bodies already delivered, increases Avolon’s Airbus backlog to 258, the largest of any lessor. Featuring the widest single-aisle cabin in the sky, the efficient A320neo Family incorporates the very latest technologies including new generation engines and Sharklets, which together deliver more than 15 percent fuel and CO2 savings from day one and 20 percent by 2020 as well as 50 percent noise reduction. With more than 6,200 orders received from over 100 customers, the A320neo Family has captured some 60 percent of the market.

ANA:
The first A380 for All Nippon Airways (ANA) rolled out of the Airbus paint shop in Hamburg, Germany, bearing the airline’s distinctive and unique Hawaiian Green Sea Turtle livery. ANA has firm orders for three A380s, becoming the first customer for the superjumbo in Japan. The airline will take delivery of the first A380 at the end of Q1 2019 and will operate the aircraft on the popular leisure Narita-Honolulu route. The three ANA A380s will be painted in a special livery depicting sea turtles which are native to Hawaii. The first aircraft is blue, the second will be green and the third orange. The ANA A380 livery is one of the most elaborate ever painted by Airbus. It took 21 days for the Airbus team to paint a surface of 3,600m2 using 16 different shades of color.The aircraft will now have completion of its cabin and enter a final phase of ground and flight tests in Hamburg, during which all cabin systems will be thoroughly tested, including air flow and air conditioning, lighting, galleys, lavatories, seats and in-flight entertainment. In parallel, Airbus will also undertake advanced aircraft performance tests before it flies back to Toulouse for preparation of its delivery and ferry flight. As one of the world’s most prestigious airlines, ANA will be able to benefit from the A380’s proven operating economics and unrivaled passenger appeal. Offering more personal space than any other aircraft, the A380 is the most efficient solution to meeting growth on the world’s most heavily traveled routes, carrying more passengers with fewer flights at lower cost and emissions. At the end of November, Airbus has delivered 232 A380s, with the aircraft now in service with 14 airlines worldwide.

MJET:
MJet GmbH of Austria became the first ACJ319 operator to sign up for Skywise, enabling it to integrate its own operational, maintenance, and aircraft data into the Skywise platform. MJet will store, access, manage, and analyze selected Airbus data together with its own data and global benchmarks without the need for additional infrastructure investments. This service will provide MJet new insights at aircraft, company and global level while allowing it to enhance its operations by improving operational reliability, reducing operational interruptions and identifying efficiencies, cost savings and enhanced revenue opportunities. MJet will share its Airbus operating-data and in return access the platform to benefit from other A319 operators’ aggregate aircraft reliability fleet data. MJet will also work with Airbus to further develop product and support services specifically for ACJ operators.

Skywise provides all users with a single access-point for their enriched data by bringing together aviation data from multiple sources, across the industry, into one secure platform. The more data that airlines share into the Skywise platform, the more accurate the predictions and models for all connected. All data is anonymized to ensure data confidentiality. More than 190 Airbus corporate jets are in service around the world, flying on every continent, including Antarctica.


FlightPath3D
Interactive 3D moving map company, FlightPath3D has secured its landmark 50th airline customer in five years, in the form of All Nippon Airways (ANA), which will make the system available across its fleet. (Editor’s Note: Boris Bubresko noted: “Our next FlightPath3D map implementation will be on our Wi-Fi solution and to our customer’s personal device.”)


Other News

There is a lot of airplane news but let’s start off with news highlights from Inmarsat this week:

INMARSAT

Inmarsat, the world leader in global mobile satellite communications, announced that its GX Aviation inflight broadband service is now being offered by leading Latin American airline Avianca as part of a free trial period on selected aircraft.

The trial period will last two months, providing passengers with the freedom to browse the internet, check social media and catch-up on emails, all from the comfort of their aircraft seat, with onboard connectivity comparable to mobile broadband services available on the ground. The initiative marks the Latin America debut of GX Aviation, the world’s first and only global, high-speed inflight broadband service, delivered through a wholly-owned and operated network of Global Xpress high-throughput satellites. The award-winning inflight broadband service, which will be rolled out gradually on selected Airbus A320s, Airbus A330s and Boeing 787s within the airline’s fleet, is currently available on its first two aircraft. Installations on additional aircraft are continuing to progress in Avianca’s MRO facilities in Colombia.


AIRBUS

TAP
TAP Air Portugal has taken delivery of the world’s first new-generation widebody A330neo and, as the launch airline, will be the first to benefit from the aircraft’s unbeatable operating economics, increased range, and Airbus’ new Airspace cabin offering passengers the best in class comfort. The Portuguese carrier will take delivery of a further 20 A330-900s in the coming years.

TAP Air Portugal’s first A330-900 is leased from Avolon. It features 298 seats in a comfortable three-class lay-out with 34 full-flat business class, 96 economy plus and 168 economy class seats. The Airspace by Airbus cabin offers more personal space, larger overhead storage bins, advanced cabin lighting and the latest-generation in-flight entertainment system and connectivity. The aircraft will be deployed on routes from Portugal to the Americas and Africa.

China Eastern
The airline has taken delivery of its first A350-900 in Toulouse, becoming the latest operator of this efficient twin-engine widebody aircraft. The Shanghai-based carrier now operates an Airbus fleet of 356 aircraft, including 306 A320 Family aircraft and 50 A330 Family aircraft (figures at the end of October 2018). China Eastern is the largest Airbus operator in Asia and second largest in the world. China Eastern’s A350-900 aircraft features a modern and comfortable four-class cabin layout of 288 seats: four first, 36 business, 32 premium economy and 216 economy. The airline will initially operate the new aircraft on its domestic routes, followed by flights to international destinations. Bringing new levels of efficiency and comfort to the long-range market, the A350 XWB Family is particularly well suited to the needs of Asia-Pacific airlines. To date, A350 XWB firm orders from carriers in the region represent over a third of total sales for the type.


BOEING
Boeing delivered its 2,000th airplane to a Chinese operator, a 737 MAX for Xiamen Airlines. The milestone and the pace at which it was reached reflect the accelerating growth in the world’s largest commercial aviation market.

Boeing delivered its first 1,000 airplanes to Chinese airlines over four decades. The next 1,000 Boeing jets have now been delivered over the past five years. The rapid pace continues as one in four Boeing-made commercial jet goes to a Chinese operator, either through direct purchase or lease.The new 737 MAX delivered today sports a special logo commemorating the milestone. It is the eighth MAX airplane to join fast-growing Xiamen Airlines, which operates the largest all-Boeing fleet in China with more than 200 jets. The carrier also uses Boeing Global Services to improve the efficiency of its network and operations. Xiamen is the first Chinese airline to use Optimized Maintenance Program, which leverages Boeing AnalytX to recommend customized airplane maintenance plans.

Xiamen Airlines is one of Boeing’s more than 30 commercial customers in China. In all, Boeing-made jets comprise more than half of the greater than 3,000 jetliners flying in the country.

China’s commercial fleet is expected to more than double over the next 20 years. Boeing forecasts that China will need 7,690 new airplanes, valued at $1.2 trillion, by 2038. Boeing also forecasts China will experience strong growth in the commercial services market with demand growing $1.5 trillion over the next 20 years, accounting for 17 percent of world demand.

China also plays a major role in building the world’s jetliners. The Chinese aerospace manufacturing industry supplies parts for every Boeing jet, including the 737 MAX, 777, and 787 Dreamliner. In December, Boeing and the Commercial Aircraft Corp. of China (COMAC) are set to deliver the first 737 MAX airplane from a completion and delivery center in Zhoushan, China. The facility will handle interior work and exterior painting of 737 MAXs for the Chinese market. Final assembly work will continue to be done at Boeing’s factory in Renton, Washington.

Boeing activity in China is valued at more than $1 billion in economy activity in China. This includes procurement from Boeing’s extensive supply base, joint venture revenues, operations, training, and research and development investment.

Fiji Airways
Boeing delivered the first 737 MAX for Fiji Airways, which plans to use the fuel-efficient, longer-range version of the popular 737 jet to expand and modernize its single-aisle fleet. Fiji Airways plans to take delivery of five MAX 8 airplanes, which will build on the success of its fleet of Next-Generations 737s.

The MAX incorporates the latest technology CFM International LEAP-1B engines, Advanced Technology winglets, and other airframe enhancements to improve performance and reduce operating costs. Compared to the previous 737 model, the MAX 8 can fly 600 nautical miles farther, while providing 14 percent better fuel efficiency. The MAX 8 can seat up to 178 passengers in a standard two-class configuration and fly 3,550 nautical miles (6,570 kilometers).

Based at Nadi International Airport, Fiji Airways serves 13 countries and 31 destinations/cities including Fiji, Australia, New Zealand, Samoa, Tonga, Tuvalu, Kiribati, Vanuatu and Solomon Islands (Oceania), the United States, Hong Kong, Japan and Singapore. It also has an extended network of 108 international destinations through its codeshare partners. In addition to modernizing its fleet, Fiji Airways will use Boeing Global Services to enhance its operations. These services include Airplane Health Management, which generates real-time, predictive service alerts, and Software Distribution Tools, which empowers airlines to securely manage digital ground-based data and efficiently manage software parts.

Air New Zealand
The airline completed an Auckland/Chicago flight with their B787-9 – It is 15 hours one way (North) and 16 the other!


MORGAN STANLEY
“Last week, the Indonesian National Transportation Safety Committee (NTSC), in consultation with US authorities, issued its preliminary findings relating to the fatal Lion Air 737 MAX crash on October 29. The report was factual in nature and highlighted a number of factors contributing to the accident, including the equipment and maintenance practices. We view the outcome as supportive for Boeing shares since it did not lead to immediate disruptive actions for production and the in-service fleet. Going forward, we will continue to monitor any such potential, though our expectation is that more routine software adjustments may be pursued.”


OTHER NEWS

New Airbus Appointments:

AIRBUS has appointed Michael Schöllhorn as its next Chief Operating Officer (effective February 2019) and Dominik Asam as its next Chief Financial Officer (effective April 2019). Here is a little more on the two appointments, first the new CEO, Michael Schöllhorn: Airbus SE (stock exchange symbol: AIR) has appointed Michael Schöllhorn, 53, as Chief Operating Officer (COO) for Airbus Commercial Aircraft, effective 1 February 2019. Schöllhorn, currently COO for BSH Home Appliances GmbH in Munich, will succeed Tom Williams, 66, who retires 31 December 2018 after 50 successful years in the aerospace industry, 19 of which were in top Airbus management positions. Michael Schöllhorn will report to Guillaume Faury who will succeed Tom Enders as Airbus CEO following the shareholders Annual General Meeting on 10 April 2019. He will also become a Member of the Airbus Executive Committee.

Michael Schöllhorn’s wealth of diverse manufacturing and production expertise was gained from 1999 at the Bosch Group. Most notably, between 2012 to 2014 he was Executive Vice President Manufacturing and Quality, additionally heading the Global Business unit for chassis and safety sensors. Prior to this, he held several international management positions in the US and Czech Republic. From 2004 to 2008 he was Vice President of Quality Management and from 2012 to 2014, Executive Vice President Manufacturing and Quality. In 2015, Michael was appointed COO and Member of the Management Board for BSH Home Appliances GmbH (100 percent subsidiary of the Robert Bosch GmbH), one of the world’s leading home appliance manufacturers. He holds a degree in Mechanical Engineering and a PhD in Control Engineering from the Helmut Schmidt University in Hamburg. He served in the German Armed Forces as a helicopter pilot and officer from 1984 to 1994.

And Airbus also selected a new CFO. In the context of the ongoing management transition process led by its Board of Directors, Airbus SE (stock exchange symbol: AIR) has appointed Dominik Asam, 49, to succeed Harald Wilhelm, 52, as Chief Financial Officer (CFO) in April 2019. Asam, currently CFO of Munich-based Infineon Technologies AG, will join Airbus on 1 April 2019 ensuring a smooth handover with Harald Wilhelm, who remains in charge in his current role until the Annual General Meeting on 10 April 2019. As CFO, Dominik Asam will report to future CEO Guillaume Faury and become a Member of the Airbus Executive Committee. A 1994 graduate in Mechanical Engineering from the Technical University of Munich, Dominik Asam began his professional career in 1996 in the Investment Banking Division of Goldman Sachs Inc. with postings in Frankfurt, London and New York. Further to his studies in his hometown of Munich, Asam holds a Master of Business Administration from INSEAD as well as a degree in Mechanical Engineering from the Ecole Centrale Paris.

More from Airbus:

TAP Air Portugal has taken delivery of the world’s first new generation widebody A330neo and, as the launch airline, will be the first to benefit from the aircraft’s unbeatable operating economics, increased range, and Airbus’ new Airspace cabin offering passengers the best in class comfort. The Portuguese carrier will take delivery of a further 20 A330-900s in the coming years.

TAP Air Portugal’s first A330-900 is leased from Avolon. It features 298 seats in a comfortable three-class lay-out with 34 full-flat business class, 96 economy plus and 168 economy class seats. The Airspace by Airbus cabin offers more personal space, larger overhead storage bins, advanced cabin lighting and the latest generation in-flight entertainment system and connectivity. The aircraft will be deployed on routes from Portugal to the Americas and Africa.

The A330neo is a true new generation aircraft building on the A330’s success and leveraging on A350 XWB technology. It incorporates the highly efficient new generation Rolls-Royce Trent 7000 engines, and a new higher span 3D optimized wing with new sharklets fully optimized for the best aerodynamic performance. Together these advances bring a significant reduction in fuel consumption of 25 percent compared with older generation competitor aircraft of a similar size. Moreover, new composite nacelles, a fully faired titanium pylon and zero-splice air inlet technology provide the A330-900 with state-of-the-art aerodynamics and acoustics.
Today, TAP Air Portugal operates an Airbus fleet of 72 aircraft (18 A330s, 4 A340s, and 50 A320 Family aircraft). The single-aisle fleet includes 22 A319ceo, 21 A320ceo and four A321ceo, one A320neo and two recently delivered A321neo.The A330 is one of the most popular widebody families ever, having received over 1,700 orders from 120 customers. More than 1,380 A330s are flying with over 128 operators worldwide. The new A330neo is the latest addition to the leading Airbus widebody family, which also includes the A350 XWB and the A380, all featuring unmatched space and comfort combined with unprecedented efficiency levels and unrivaled range capability.


Boeing:

Caribbean Airlines
Boeing and Caribbean Airlines announced the airline has chosen to enhance and renew its single-aisle fleet with the 737 MAX 8. The carrier, which has long operated the Next-Generation 737, will take delivery of 12 MAX airplanes in the coming years.

The airline commemorated the selection of the MAX during a ceremony featuring national dignitaries, including the Prime Minister of Trinidad and Tobago, the Honorable Keith Rowley, and Caribbean Airlines Chief Executive Officer, Garvin Medera. The 737 MAX 8 – part of a fuel-efficient family of airplanes – will seat up to 160 passengers in Caribbean Airlines’ three-class configuration featuring the “Caribbean Plus” Cabin, and provide more than 500 nautical miles more range than the existing aircraft. In addition to flying Boeing airplanes, Caribbean Airlines also uses Boeing’s services to optimize its operations. The carrier participates in the Fuel Dashboard Program, for example, which allows operators to look across their fleet and identify fuel savings. Caribbean also uses Boeing’s consumable and expendable material services to ensure it has the parts it needs when it needs it

Turkish Airlines
Boeing and Turkish Airlines announced an order for three 777 Freighters as the flag carrier of Turkey continues to soar on record financial results and double-digit passenger and cargo growth. The order adds more of the long-range freighter to Turkish’s fleet as the airline pursues its goal of becoming the world’s largest cargo carrier.

Based on the 777-200LR (Longer Range), the 777 Freighter can fly 4,900 nautical miles (9,070 kilometers) with a full payload of 112 tons (102 metric tonnes or 102,000 kg). The long range means fewer stops and associated landing fees, less congestion at transfer hubs, lower cargo handling costs and shorter delivery times.

The new order comes days after Turkish Airlines posted record profits for the first nine months of 2018 on strong passenger and cargo demand. The carrier’s air freight business saw a 25-percent tonnage increase and a 29-percent revenue increase compared to the same period a year ago. The results extend the airline’s success in recent years as Turkey has become one of the largest and fastest-growing aviation markets.

In line with the rapid growth, Turkish Airlines has steadily expanded its current and future fleet. Last January, the carrier announced the order of three 777 Freighters. Two months later, Turkish finalized an order for 25 787-9 Dreamliners and five options to prepare for growing demand at Istanbul’s third airport, named “Istanbul Airport” by Turkish President Recep Tayyip Erdoğan during its official opening last month. Over the past few months, Turkish has begun taking delivery of new 737 MAX airplanes to refresh its single-aisle jets. In all, the airline’s fleet of Boeing jetliners has grown to more than 160, with nearly 100 additional jets on order.

With more than 30 777s in its fleet, Turkish Airlines is among the top 10 operators of the wide-body jet in Europe and the Middle East.

To support the long-term growth of the Turkish aerospace industry and strengthen Boeing’s presence in the country, Boeing launched a strategic partnership program in Turkey last year, called the National Aerospace Initiative. Aligned with the targets of Turkey’s Vision 2023 that set for the 100th anniversary of Turkish Republic’s foundation, the initiative lays out a strategic collaboration framework in four key areas: industrial development, technology acceleration, services collaboration and advanced-skill training.

In line with these goals, Boeing is planning to open an engineering center in Istanbul that would specialize in research and support Turkey’s growing aerospace capability. The company also recently expanded its collaboration with Turkish Technic, the maintenance arm of Turkish Airlines. Under the agreement, Turkish Technic becomes a strategic supplier for Boeing’s Global Fleet Care program, providing operators with line maintenance, heavy maintenance, component service and repair for multiple aircraft models. Additionally, Boeing and Turkish Technic will partner to train and certify aircraft technicians.


Other News:

  • Some UTC/Collins News for you from the UTC news release: “Collins Aerospace – UTC’s acquisition of Rockwell Collins is one of the largest in aerospace history. It brings together Rockwell Collins and UTC Aerospace Systems to create Collins Aerospace Systems, an industry leader with a global presence of 70,000 employees in 300 sites and $23 billion in annual sales on a 2017 pro forma basis.”
  • The first solid state flight of an heavier than air vehicle: Ion drive: The first flight – YouTube
  • The four worst hacks (so far) in 2018: These four data leaks were among the worst this year – Business Insider

New company will build AI- and blockchain-powered airspace management software platform

Austin, Texas | November 20, 2018– Boeing [NYSE: BA] and SparkCognition today announced plans to launch SkyGrid, a new company that will enable the future of urban aerial mobility. Based in Austin, Texas, SkyGrid will develop a software platform to ensure the safe, secure integration of autonomous cargo and passenger air vehicles in the global airspace.

Using blockchain technology, AI-enabled dynamic traffic routing, data analytics and cybersecurity features, SkyGrid’s platform will go beyond unmanned aircraft systems (UAS) traffic management (UTM). The platform will enable SkyGrid customers to safely perform a broad range of missions and services using UAS, including package delivery, industrial inspections and emergency assistance.

“The Boeing and SparkCognition partnership is unmatched in industry today,” said Steve Nordlund, vice president and general manager of Boeing NeXt. “SkyGrid is building the digital infrastructure that will make safe, seamless commercial and personal transport possible for billions of people around the world.”

“SkyGrid merges expertise in AI, blockchain, security and aviation to deliver breakthrough technological advancements for the rapidly-growing urban aerial mobility industry,” said Amir Husain, who will serve as CEO of SkyGrid in addition to his role as founder and CEO of SparkCognition. “By offering scalable and robust capabilities in a single, integrated framework, SkyGrid will make large-scale air vehicle applications more practical and accessible.”

With award-winning machine learning technology, a multinational footprint, and expert teams focused on defense, industrial internet of things, and finance, SparkCognition builds AI systems to advance the most important interests of society. Their customers turn to SparkCognition to help them analyze complex data, empower decision making, and transform human and industrial productivity. Learn more about SparkCognition’s AI applications and why the company was featured in CNBC’s 2017 Disruptor 50 and recognized two years in a row on CB Insights AI 100 by visiting www.sparkcognition.com.

Boeing is the world’s largest aerospace company and leading manufacturer of commercial jetliners and defense, space and security systems. A top U.S. exporter, the company supports airlines and U.S. and allied government customers in more than 150 countries. Boeing products and tailored services include commercial and military aircraft, satellites, weapons, electronic and defense systems, launch systems, advanced information and communication systems, and performance-based logistics and training.

First flight of the 777X scheduled for 2019; delivery in 2020

Everett, Washington | November 20, 2018– Boeing [NYSE: BA] has brought together the major fuselage sections to form the first 777X airplane that will take to the skies in 2019.

In a major production milestone called ‘final body join,’ Boeing teams connected the airplane’s nose, mid and aft sections in the company’s factory in Everett, Wash. The jet now measures 252 feet long (77 meters) from nose to tail, making it the longest passenger jet the manufacturer has ever produced.

“The 777X is a new airplane and a new production system,” said Josh Binder, vice president and general manager of the 777X. “With the 777X, the production system was integrated into the development program sooner than any other airplane, and the team is doing a great job of hitting our milestones as expected.”

The 777X builds on the market-leading 777 and the 787 Dreamliner to offer airlines the largest and most-efficient twin-engine jet in the world. The airplane provides 12 percent lower fuel consumption and 10 percent lower operating costs than competing airplanes.

The 777X achieves the unprecedented performance through the introduction of the latest technologies such as the most fuel-efficient commercial engine ever, the GE9X, and a fourth-generation all-new composite wing design that provides lift and efficiency. With the extension of a set of folding, raked wingtips, the airplane’s wing spans 235 feet (72 meters).

By adding folding wingtips, the 777X’s wingspan has been increased to enhance the aerodynamic efficiency of the wing, reducing engine thrust and fuel use. Additionally, the folding wingtips allow the 777X to maintain airport compatibility with the existing 777 family, adding value for customers.

The first 777X introduced will be the 777-9 model, which can seat 400 to 425 passengers in a standard configuration and offer a range of 7,600 nautical miles (14,075 km). Boeing is building on the passenger-preferred interior of today’s 777 and building on 787 interior innovations to create a passenger experience like no other. Passengers will enjoy windows that are larger and located higher on the fuselage than the current 777, along with a wider cabin, new lighting and enhanced architecture.

The first 777X test airplane for static ground testing was completed in September 2018. Three additional flight test airplanes will be built after flight test #1.

The 777X first flight is scheduled for 2019. First delivery is slated for 2020.

Deal is largest ever order from a Korean low-cost carrier; includes 40 firm orders and 10 options

Airline says 737 MAX 8 is ideal airplane to grow and meet rising passenger demand

Seoul, South Korea | November 19, 2018–Boeing [NYSE:BA] and Jeju Air announced the airline is ordering 40 737 MAX 8 airplanes with options for 10 additional jets. The deal, valued at up to $5.9 billion at list prices, is the largest order ever placed by a Korean low cost carrier and reflects rising demand for air travel in South Korea.

“With Korea’s growing commercial aviation market, we are excited to take the next step in expanding our business with the 737 MAX, a world-class airplane that will allow us to improve our operation and continue to provide a safe and enjoyable experience for our passengers,” said Seok-Joo Lee, President and CEO of Jeju Air. “The 737 MAX 8 and its superior performance and economics make it an ideal airplane to implement our growth strategy as we look to expand beyond Asia in the coming years.”

Jeju Air, based in South Korea’s Jeju Island, began operation in 2005 as the country’s first low-cost carrier. Since that time, the carrier has spearheaded the rapid development of Korea’s LCC market and contributed to the expansion of the broader Korean commercial aviation industry.

Flying a fleet of nearly 40 Next-Generation 737-800s, Jeju Air has steadily expanded its business and its profits. The airline has achieved 25 percent annual sales growth over the past five years and recorded 17 consecutive quarters of profitability.

Jeju Air is looking to build on its success with the enhanced version of the 737 jet. The 737 MAX 8 provides more range and offers 14 percent better fuel efficiency and environmental performance thanks to the latest CFM International LEAP-1B engines, Advanced Technology winglets, and other aerodynamic improvements.

“We are extremely proud that Jeju Air has become a leader in the vibrant LCC market by flying the Boeing 737. And we are delighted that the airline has chosen to build their future fleet with this major order for the 737 MAX,” said Ihssane Mounir, senior vice president of Commercial Sales & Marketing for The Boeing Company.

Along with the new airplanes, Boeing Global Services will provide Jeju Air with digital tools to reduce their operating costs. The solutions include the Fuel Dashboard Program, which allows operators to look across their fleet and identify areas where they can optimize their fuel spending.

Jeju Air serves 60 domestic and international routes with approximately 200 daily flights. The carrier is a founding member of the Value Alliance, the first pan-regional low-cost carrier alliance formed with eight airlines based in Asia.

The 737 MAX is the fastest-selling airplane in Boeing history, accumulating about 4,800 orders from more than 100 customers worldwide. This order will be reflected on Boeing’s Orders and Deliveries website per our standard process. For more information and feature content, visit www.boeing.com/commercial/737max.

Carrier is the first in Russia to fly the 737 MAX airplane
S7 plans to operate 10 more MAX airplanes in the coming years

Moscow, Russia | October 15, 2018– Boeing, Air Lease Corp., and S7 Airlines celebrated the delivery of the airline’s first 737 MAX, via lease from ALC.  S7, operated by Globus Airlines, becomes the first Russian airline to fly the new and improved 737 airplane. S7 plans to take 10 more 737 MAX jets over the next few years as part of its strategic plan to strengthen its airplane fleet.

“We always stay up-to-date with the latest developments of manufacturers and actively implement them to improve our service. The airline’s fleet already includes 19 Boeing 737Next Generation aircraft. The new Boeing 737MAX that we received today from our partners at Air Lease Corporation offers even more passenger comfort, reduced noise level and lower environmental impact. We are delighted that our passengers will be the first in Russia to appreciate the benefits onboard these new generation airplanes,” said Vadim Klebanov, general director of Globus Airlines.

The 737 MAX 8 is part of a family of airplanes that offer from about 130 to 230 seats and the ability to fly up to 3,850 nautical miles (7,130 kilometers). The MAX 8, in particular, can seat up to 178 passengers in a standard configuration and features the popular Boeing Sky Interior. The airplane helps reduce fuel use and emissions by 14 percent compared to previous airplanes, outperforming the competition by 8 percent when it comes to operating costs per seat.

“ALC is delighted to be a part of introducing the first Boeing 737 MAX aircraft in Russia with this delivery to our longtime customer, S7 Airlines,” said Alex Khatibi, Executive Vice President of Air Lease Corporation. “With this new Boeing 737 MAX aircraft, the airline continues to establish its position as a highly competitive Russian airline operating the most modern and fuel-efficient fleet.”

“With S7 Group’s innovative approach to its business and ambitious long-term goals, the 737 MAX will be a great addition to its fleet and will be seamlessly integrated in the group’s strategy of delivering exceptional performance and value,” said Ihssane Mounir, senior vice president of Commercial Sales & Marketing for The Boeing Company.

The 737 MAX is the fastest-selling airplane in Boeing history with more than 4,700 orders from 104 customers worldwide.

BBJ MAX offers customers unmatched range and comfort
Boeing unveils new BBJ MAX interior design concept

Orlando, USA | October 15, 2018–Boeing Business Jets (BBJ) has delivered the first BBJ MAX airplane to a customer, the company announced today at the National Business Aviation Conference and Exhibition (NBAA-BACE).  The aircraft is scheduled to fly to an interior finishing center.

“We are excited to begin delivering a longer-range and more capable version of the world’s most popular business jetliner,” said Greg Laxton, head of Boeing Business Jets. “There has been great market interest and anticipation for the BBJ MAX and our valued customers will soon be able to see the new standard in business travel.”

Customers from around the world have placed orders for 20 BBJ MAX airplanes. Most recently, Seacons Trading Ltd announced in July it is purchasing a BBJ MAX 7 at the 2018 Farnborough International Airshow.

To commemorate the first delivery, Boeing Business Jets unveiled a new interior concept by award winning aviation design firm SkyStyle. The concept, named Genesis by SkyStyle Co-Founders Max Pardo and Lucas Colombo, represents the company’s debut in BBJ MAX design.

“From an aviation designer’s perspective, the BBJ MAX is incredibly appealing because there is so much more interior space to realize one’s vision,” said Max Pardo. “And since the MAX flies ultra-long-distances, the owners are looking for a comfortable lounge, multi-function conference area and a large master suite to ensure the ultimate flight experience.”

The BBJ MAX Genesis concept draws inspiration from nature’s tranquility, its voluminous clouds hanging over a white sand beach, smooth rolling hills and a starry night sky.

“BBJ MAX interiors have always been a sharp departure from the cramped cabins of smaller business jets, and the Genesis design is yet another example of our exclusive cabin capabilities,” said Laxton.

The BBJ MAX family – based on Boeing’s best-selling 737 MAX airplane – offers business jet customers the best combination of space, comfort and range.  With more than three times the cabin area as most competing business jets, bespoke interiors to match any preference, and lower cabin altitude, the jet is capable of flying 7,000 nautical miles (12,964 km).

In addition, BBJ MAX owners benefit from a lower total cost to own when compared to other high-end business jets. The MAX’s optimized maintenance schedule drives operating costs that are nearly the same as smaller, less comfortable competitors. BBJs also retain comparatively higher residual values by requiring a fraction of the lengthy and expensive shop visits experienced by other business jets as they age. As a result, the BBJ MAX can save customers millions of dollars in total ownership expenditure over the life of the airplane.

Chicago, USA | October 9, 2018– Boeing announced today that it has completed its acquisition of KLX Aerospace Solutions to enhance its growing services business and deliver greater value to its customers. The acquisition positions Boeing to compete and win in the $2.8 trillion, 10-year aerospace services market.

KLX, a major global provider of aviation parts and services in the aerospace industry, provides a clear path for Boeing’s services business to accelerate growth. Its capabilities include distribution and supply chain services. KLX currently markets and distributes products for approximately 2,400 manufacturers and offers approximately 1 million catalog items.

KLX is also a leading supplier of chemicals and composites, which complements Aviall’s portfolio, allowing Boeing to offer commercial, defense, business and general aviation customers a broader range of offerings.

“This acquisition brings together the talent and product offerings of Boeing and KLX to provide a one-stop shop that will allow us to create significant value for our customers. There are also extensive opportunities for services growth and innovation for Boeing and our supply chain that is unique to the industry,” said Stan Deal, president and CEO of Boeing Global Services. “The resulting boost in supply chain capability will allow us to better serve our customers while profitably and purposefully growing our business.”

With approximately 2,000 employees, KLX Aerospace Solutions will continue to operate from Miami with customer service centers located in more than 15 countries.

The acquisition is aligned with Boeing’s organic growth strategy, with no change to Boeing’s capital deployment strategy or commitment to returning approximately 100 percent of free cash flow to shareholders.

Boeing is the world’s largest aerospace company and leading manufacturer of commercial airplanes and defense, space and security systems. Boeing is also the world leader in combined commercial airlines and government services with customers in more than 150 countries. The company’s products and tailored services include commercial and military aircraft, satellites, weapons, electronic and defense systems, launch systems, advanced information and communication systems, and performance-based logistics and training. Boeing employs approximately 140,000 people across the United States and in more than 65 countries.

Las Vegas, USA | October 1, 2018– Boeing [NYSE: BA] and its subsidiaries Jeppesen and Aviall have joined with Robotic Skies, a leading commercial unmanned aircraft system (UAS) support services provider, to develop and deliver industry-leading supply chain management and optimization, analytics, and maintenance, repair, and overhaul (MRO) services for the commercial and civil UAS markets.

“Teaming with Boeing will allow both companies to elevate the commercial UAS customer experience and deliver operations solutions that would be difficult to achieve individually,” said Brad Hayden, Robotic Skies CEO. “This agreement represents a foundational step for the advancement of commercial UAS operations that will meet the requirements of today and help shape the future of unmanned flight.”

Boeing and Robotic Skies will jointly pursue opportunities to best leverage their extensive combined experience and solutions in manned aviation programs and extend them into the UAS market, including providing services for commercially-focused regulatory compliance, ground support, training, MRO, parts distribution, field upgrades and vehicle retrofit capabilities.

“We continue our dedication to working with the top providers in the industry to increase our presence in the commercial UAS field, with the ultimate goal of helping customers operate more efficiently,” said William Ampofo, vice president, Business & General Aviation, Boeing Global Services. “Our relationship with Robotic Skies will bring together the best elements of both companies, as we shape our capabilities specifically to meet the unique operational requirements and challenges of commercial UAS flight.”

As their relationship continues to expand, the companies will provide unified operations services for both existing commercial UAS operators and for companies seeking to enter the UAS field for the first time.

Operating as one of Boeing’s three business units, Global Services is headquartered in the Dallas area. For more information, visit www.boeing.com/services.

Robotic Skies offers comprehensive turnkey field service programs designed to keep UAS flying safely, efficiently and affordably.  Founded in 2014, Robotic Skies is a brokered network of over 150 certified repair stations across more than 30 countries, providing MRO and additional support services for commercial UAS.  Each service center in the network possesses the aviation expertise and factory training to ensure the mission readiness of these aircraft. For more information about Robotic Skies, visit www.roboticskies.com.

The new Airbus BelugaXL’s first flight was a few days ago and the airplane’s “face” was just too good not to make it the rectangle for this week’s IFExpress. Following the first flight, the BelugaXL will undergo some 600 hours of flight test over 10 months to achieve Type Certification and entry into service later in 2019. The BelugaXL program was launched in November 2014 to address Airbus’ transport capacity requirements in view of the A350 XWB ramp-up and Single-Aisle production rate increases. Five aircraft will be built between 2019 and 2023 to gradually replace the five BelugaST. The aircraft will operate from 11 destinations as Airbus’ method of transporting large aircraft components they say. Based on an A330-200 Freighter, the BelugaXL is powered by Rolls Royce Trent 700 engines and can haul an incredible 50 tons of load with a total take-off weight of 230 tons! It will haul some 30% more than it’s predecessor. It is longer by 20 feet as well. The lowered cockpit, the cargo bay structure and the rear-end and tail were newly developed jointly with suppliers, giving the aircraft its distinctive look. Congratulations Airbus, the BelugaXL is a “whale” of a good looking airplane!

And speaking of airplanes, last week’s Farnborough Airshow generated over $192 Billion is plane sales/commitments with Boeing claiming over 100 airplane orders, while Airbus claimed some 60% of the single aisle business. We should note that while Airbus snagged some 70 orders from China, Boeing got none. (Hmm, wonder why?) Anyway, here are some summaries:

(Editor’s Note: The amount of airplane sales and total value of them varied at almost every report we researched. We did our best to give our readers summary numbers.)

Interestingly, the names of some 400 airplane purchases were withheld probably because of competitive reasons. Further, keep in mind, planemakers use shows to “announce” deals that were in work for months – obviously looking better at the show, and as Reuters noted: “The two companies have so far signed deals worth more than $100 billion at current list prices. However, this is a gross number. Several of the deals firm up provisional ones, disclose previously unidentified buyers, or change existing orders, making it hard to gauge the level of new business.”

We also noticed that Boeing and Airbus were selling their smaller and newest single aisle planes: Airbus A220 – 60 sales, and Embraer – 300 plane sales, as this small aircraft market also took off.

So, in summary, this year’s sales saw some 1,432 deals in aircraft, engines, and related equipment. As one writer noted: “The biannual air industry gathering recorded more than 1,400 commercial aircraft orders, valued at US$154 billion, alongside at least 1,432 deals for engines worth US$21.96 billion.”


AIRBUS

The National Research Council of Canada (NRC) and Airbus have renewed their framework agreement on research and technology (R&T) cooperation. This new five-year agreement builds on a long-standing relationship between the two organizations to cooperate on R&T development which spans more than 30 years. The NRC-Airbus agreement will cover a wide range of technical subjects and technologies. Recently, Airbus identified Canada as its “fifth country” for research and technology developments in the areas of drones and urban mobility.


BOEING

Boeing released its 2018 Pilot & Technician Outlook, projecting demand for 790,000 pilots over the next 20 years. This represents double the current workforce and the most significant demand in the outlook’s nine-year history.

The demand is being driven by an anticipated doubling of the global commercial airplane fleet — as reported in Boeing’s Commercial Market Outlook — as well as record-high air travel demand and a tightening labor supply. This year’s outlook also includes data from the business aviation and civil helicopter sectors for the first time.

“Despite strong global air traffic growth, the aviation industry continues to face a pilot labor supply challenge, raising concern about the existence of a global pilot shortage in the near-term,” said Keith Cooper, vice president of Training & Professional Services, Boeing Global Services. “An emphasis on developing the next generation of pilots is key to help mitigate this. With a network of training campuses and relationships with flight schools around the globe, Boeing partners with customers, governments and educational institutions to help ensure the market is ready to meet this significant pilot demand.”

Boeing offers the Pilot Development Program – an accelerated training program that guides future pilots from early stage ab-initio training through type rating as a first officer – to help operators meet their growing pilot needs. Boeing also helps operators improve crew efficiency with tools that optimize resources and minimize disruption.

Despite the commercial pilot demand forecast holding nearly steady, maintenance technician demand decreased slightly from 648,000 to 622,000, primarily due to longer maintenance intervals for new aircraft. Collectively, the business aviation and civil helicopter sectors will demand an additional 155,000 pilots and 132,000 technicians.

Demand for commercial cabin crew increased slightly from 839,000 to 858,000, due to changes in fleet mix, regulatory requirements, denser seat configurations and multi-cabin configurations that offer more personalized service. In addition, 32,000 new cabin crew will be required to support business aviation.


ROCKWELL COLLINS

Iridium Communications Inc. and Rockwell Collins signed an agreement to make Rockwell Collins the newest service provider for Iridium Certus satellite solutions over the Iridium NEXT network. Rockwell Collins will be adding the service to its comprehensive suite of aircraft connectivity applications for commercial, government and ARINCDirectSM business customers.

In addition to being a service provider, Rockwell Collins is also a value added manufacturer (VAM) for the design and production of Iridium Certus service terminals. As a VAM and a service provider, Rockwell Collins will play a critical role in delivering the next-generation L-band broadband solution to commercial, business and government aviation customers around the world.

“Adding Rockwell Collins as an Iridium Certus service provider is a major milestone for the program,” said Michael Hooper, director and general manager of Iridium’s Aviation Line of Business. “Given the FAA’s recent movement toward adopting SATCOM as a primary means of onboard communications, we believe Iridium Certus will be that much more of a shake up to the status quo within the aviation industry, bringing new capabilities, smaller hardware, faster speeds and competitive price packages. Like the services Rockwell Collins offers, Iridium Certus supports all areas of aircraft connectivity, from the flight deck to the cabin, regardless of location.”

Initial flight trials will take place later this year, with Iridium Certus commercial service introduction for aviation users expected in mid-2019. Commercial service introduction for other verticals, such as maritime and land-mobile, is planned for 2018. Iridium Certus is powered by Iridium NEXT, the Company’s next-generation satellite constellation, currently being deployed. To date, there have been six successful Iridium NEXT launches, deploying 55 new satellites to orbit. Two more launches are planned for 2018, each carrying 10 Iridium NEXT satellites, for a total of 75 launched, with 66 in the operational constellation and nine serving as on-orbit spares. The seventh launch is currently targeted for July 25, 2018 out of SpaceX’s west coast launch site at Vandenberg Air Force Base in California.

“Iridium Certus will be an important new service addition to meet the connectivity needs of commercial, business and government aircraft,” said Michael DiGeorge, vice president of Commercial Aviation Services for Rockwell Collins. “For our ARINCDirect business aviation operators, Iridium Certus offers small form factor antennas and terminals which are ideal for operators of smaller aircraft requiring internet connectivity. For our airline and government customers, the Iridium Certus service enables a variety of capabilities for cockpit safety, enhanced aircraft reporting, graphical weather, EFBs and other operational aircraft services.

The new agreement builds on the long-standing relationship between Rockwell Collins and Iridium, which spans more than a decade and began with the advent of Iridium aviation service offerings.


GOGO

North America-based Flying Colours Corp. is installing Gogo AVANCE L3 air-to-ground connectivity systems in two Bombardier Challenger aircraft, a CL604 and CL605. The installation of the small form, fully integrated AVANCE L3 inflight connectivity and entertainment solution represents a first for Flying Colours which has already installed several of the AVANCE L5 systems. Once installed the Gogo AVANCE L3 system will provide passengers with access to the Gogo Biz Broadband network and will support, dependent on package, access to voice, email, web browsing, moving maps, and a selection of movies and TV programs.


OTHER STUFF

Circuit miniaturization has a new size reducing potential with kinetic inductance (reduced inductor size) – this is a big deal! The Last Barrier To Ultra-Miniaturized Electronics Is Broken, Thanks To A New Type Of Inductor

Chicago | July 10, 2018–The Boeing Company [NYSE: BA] announced today deliveries across its commercial and defense operations for the second quarter of 2018.

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


Aircraft Interiors Exposition – Boston

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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


INMARSAT

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

What Does This Mean?

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

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

Why Should I Care?

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

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


SITA

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

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

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

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

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

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

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


AIRBUS

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

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

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


BOEING

Boeing & Ethiopian Airlines

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

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

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

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

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

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

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

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

Boeing & Embraer

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

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

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

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

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

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

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


OTHER NEWS

Chicago and São Paulo | July 5, 2018– Boeing (NYSE: BA) and Embraer (B3: EMBR3, NYSE: ERJ) announced they have signed a Memorandum of Understanding to establish a strategic partnership that positions both companies to accelerate growth in global aerospace markets.

The non-binding agreement proposes the formation of a joint venture comprising the commercial aircraft and services business of Embraer that would strategically align with Boeing’s commercial development, production, marketing and lifecycle services operations. Under the terms of the agreement, Boeing will hold an 80 percent ownership stake in the joint venture and Embraer will own the remaining 20 percent stake.

“By forging this strategic partnership, we will be ideally positioned to generate significant value for both companies’ customers, employees and shareholders – and for Brazil and the United States,” said Dennis Muilenburg, Boeing’s Chairman, President and Chief Executive Officer. “This important partnership clearly aligns with Boeing’s long-term strategy of investing in organic growth and returning value to shareholders, complemented by strategic arrangements that enhance and accelerate our growth plans,” Muilenburg said.

“The agreement with Boeing will create the most important strategic partnership in the aerospace industry, strengthening both companies’ leadership in the global market,” said Paulo Cesar de Souza e Silva, Embraer Chief Executive Officer and President. “The business combination with Boeing is expected to create a virtuous cycle for the Brazilian aerospace industry, increasing its sales potential, production, creating jobs and income, investments and exports, and in doing so, adding more value to customers, shareholders and employees.”

The transaction values 100 percent of Embraer’s commercial aircraft operations at $4.75 billion, and contemplates a value of $3.8 billion for Boeing’s 80 percent ownership stake in the joint venture. The proposed partnership is expected to be accretive to Boeing’s earnings per share beginning in 2020 and to generate estimated annual pre-tax cost synergies of approximately $150 million by year three.

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

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

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

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

In addition, both companies will create another joint venture to promote and develop new markets and applications for defense products and services, especially the KC-390 multi-mission aircraft, based on jointly-identified opportunities.

“Joint investments in the global marketing of the KC-390, as well as a series of specific agreements in the fields of engineering, research and development and the supply chain, will enhance mutual benefits and further enhance the competitiveness of Boeing and Embraer,” said Nelson Salgado, Embraer’s Executive Vice President, Financial and Investor Relations.

Finalization of the financial and operational details of the strategic partnership and negotiation of definitive transaction agreements are expected to continue in the coming months. Upon execution of these agreements, the transaction would then be subject to shareholder and regulatory approvals, including approval from the Government of Brazil, as well as other customary closing conditions. Assuming the approvals are received in a timely manner, the transaction is expected to close by the end of 2019, 12-18 months after execution of the definitive agreements.

“This strategic partnership is a natural evolution of the long-standing history of collaboration between Boeing and Embraer on a range of aerospace initiatives over almost three decades,” said Greg Smith, Boeing Chief Financial Officer and Executive Vice President of Enterprise Strategy & Performance. “It is aligned with Boeing’s enterprise strategy of pursuing strategic investment opportunities where they demonstrate real value and accelerate our organic growth plans. This partnership will strengthen the vertical capabilities of Boeing and enhance value for our customers through the full lifecycle of industry-leading products and services.”

Boeing and Embraer will benefit from a broader scale, resources and footprint, including global supply chain, sales and marketing, and services network, which will enable them to capture benefits from best-in-class efficiencies across the organizations. Additionally, the strategic partnership will provide opportunities to share best practices in manufacturing and across development programs.

The transaction will have no impact on Boeing and Embraer financial guidance for 2018 or Boeing’s cash deployment strategy and commitment to returning approximately 100 percent of free cash flow to shareholders.