COLLINS
Collins Aerospace, a unit of Raytheon Technologies Corp., has been selected by Airbus to supply upgraded passenger service units (PSU) for the delivery of the new A320 Family Airspace cabin. The advanced architecture and sleek new design fits seamlessly within the new Airspace cabin, supporting a consistent passenger experience across the family of aircraft. The advanced composite materials of the Collins PSU provide the strength and durability needed to handle each passenger touchpoint, including reading lights, air outlet valves and call attendant lights. The modular design is easily adjustable for a variety of seat pitches, enabling simple installation and removal.
Collins has supplied PSUs for the A320 family of aircraft for more than two decades and is actively working with Airbus to explore future developments and to improve the already outstanding performance of the new passenger service units.
BOEING
Boeing and Alaska Airlines announced they are partnering on the latest Boeing ecoDemonstrator program and will flight test about 20 technologies on a new 737-9 to enhance the safety and sustainability of air travel. In flights beginning this summer, Boeing and Alaska will test a new halon-free fire-extinguishing agent that significantly reduces effects on the ozone layer, evaluate an engine nacelle designed to reduce noise and assess cabin sidewalls made from recycled material, among other projects.
“We have a long history of working with Boeing to advance aviation technology, safety and fuel efficiency,” said Diana Birkett Rakow, Alaska Airlines’ vice president, public affairs and sustainability. “Alaska Airlines flies to some of the most beautiful and geographically diverse regions in the world and we are committed to finding ways to reduce climate impacts across our network. This work with Boeing to accelerate innovation on the ecoDemonstrator program enables us to contribute to a more sustainable future for our global community.”
Since 2012, the ecoDemonstrator program has accelerated innovation by taking nearly 200 promising technologies out of the lab and testing them in the air to address challenges for the aviation industry and improve the passenger experience.
“Boeing is committed to continually improve air safety and the environmental performance of our products,” said Stan Deal, Boeing Commercial Airplanes president and CEO. “We’re proud to collaborate with our hometown customer and other partners around the world this year to make flying more sustainable.”
In five months of ecoDemonstrator flight tests, Boeing and Alaska will work with nine other partners to test new technologies. After tests are complete, the airplane will be configured for passenger service and delivered to Alaska. The program’s technologies include:
Testing a new fire extinguishing agent for aircraft that significantly reduces effects on the ozone layer. This material is intended to replace Halon 1301, which is no longer being produced.
Collaborating with the U.S. National Oceanic and Atmospheric Administration to measure greenhouse-gas levels in the atmosphere to support the agency’s climate modeling and long-term forecasting.
Evaluating acoustic lining concepts within the engine nacelle that may reduce noise on current engines and will inform designs for next-generation models.
Recycling carbon composite material from Boeing 777X wing production into a cabin sidewall panel. This durable, light material would reduce fuel use and carbon emissions, and supports Boeing’s goals for sustainable manufacturing.
Boeing’s current and future airplanes leverage a number of technologies evaluated in previous ecoDemonstrator testing, including:
- Advanced Technology winglets on the 737 MAX family that reduce fuel use and emissions.
- iPad apps that provide real-time weather and other data to pilots, improving fuel efficiency and reducing CO2 emissions. These apps complement digital analytics services Boeing offers to help airlines optimize fleet utilization.
- A camera system on the new 777X that will enhance safety by helping pilots avoid obstacles on the ground.
“Boeing put additional emphasis on sustainability in 2020 to align with our stakeholder and business priorities as well as our values,” Boeing Chief Sustainability Officer Chris Raymond said. “Through our collaboration with industry partners, the ecoDemonstrator program is a great example of our commitment to work together to make flying safer and more sustainable for current and future generations.”
ecoDemonstrator test flights are flown on a blend of petroleum-based and sustainable aviation fuel. SAF is in regular use today, reduces life-cycle CO2 emissions by up to 80%, and offers the most immediate and greatest potential to reduce emissions over the next 20 to 30 years in all commercial aviation markets.
In January this year, Boeing committed to make sure its commercial airplanes are capable and certified to fly on 100% SAF by 2030. The company also plans to work with regulatory authorities and across the industry to raise the current 50% blending limit for expanded use of SAF. Boeing’s 2018 ecoDemonstrator 777 Freighter made history as the world’s first commercial airliner to fly on 100% sustainable fuel.
VISION-BOX
For those of you unfamiliar with Vision-Box, the company offers a combination of solutions that enable airports, airlines, and governments to provide that seamless user experience for connected citizens and travelers by using Digital ID management, aviation and border control solutions.
Most recently, Vision-Box participated int the FTE APEX 2021 event. Here is an interesting link from the show: Vision-Box insights on Seamless & Safe Travel and how can Biometrics, Automation & Digital ID be the recipe for economic recovery.
Furthermore, they recently launched a Resources Hub.
MORGAN STANLEY RESEARCH/AIRLINES
Airlines: The Frequent Flyer: UAL and Boom Go Supersonic, Eve + Halo on eVTOLs, DAL Updates 2Q21 Guidance, and UK Updates Green List
Last week, Eve and Halo formed a partnership to develop UAM products and services in the US and UK, while UAL ordered aircraft from Boom Supersonic. DAL updated 2Q21 guidance and the UK removed a destination from its quarantine-free travel list.
In Section 2 of this report, you will find our recently launched unique interactive visualization tool to help you track the weekly evolution of the US Domestic air traffic rebound. This interactive tool allows readers to easily get a comprehensive snapshot of key air traffic datapoints for the past week – at an industry and airline level – and see how that has trended over the past two years. Screens include ASMs by carrier, ASM/Traffic by state, Route Markets flown by Airline, Route Additions by Carrier, Seat Additions/Mix and Equipment flown by Carrier. MS (Morgan Stanley) believes this tool will be uniquely powerful in tracking the air traffic rebound in the US and more.
Eve Urban Air Mobility Solutions, Inc. (Eve) announced Halo as a launch partner in the Urban Air Mobility (UAM) market with a non-binding order for 200 eVTOL aircraft. Eve, an independent company formed by Embraer S.A., and Halo, a helicopter travel provider in the US and UK, announced a partnership focused on developing UAM products and services in the United States and United Kingdom (see more here). In addition to this initial aircraft order, Eve and Halo will partner on the continued development of Eve’s Urban Air Traffic Management system as well as its fleet operations and services product offerings. During Morgan Stanley’s inaugural eVTOL/UAM conference (see key takeaways here), Eve’s management was vocal about pursuing partnerships in order to develop products and services in the UAM space. As noted by the MS Latin American Transportation team, Eve has already invested in the UK market as the leader of a consortium that is solving the regulatory and operational issues to bring eVTOL operations to London. This collaboration is the first international eVTOL partnership of its kind, and is an important step for the eVTOL/UAM market. Deliveries are expected to begin in 2026. In addition to this partnership, Eve announced a partnership earlier this week with one of the largest helicopter operators in LatAm, Helisul, for the development of Urban Air Mobility products and services in Brazil (see more here). The partnership includes an initial order of up to 50 of Eve’s eVTOL aircraft, and deliveries are expected to start in 2026. According to Eve, the initial step of the partnership will be developing a proof of concept operation, utilizing helicopters in order to validate parameters that will apply to the future eVTOL operations. While there is plenty of wood to chop to get eVTOLs in the air in the next few years, we remain bullish about the multi-trillion dollar TAM that is potentially within reach – see MS’s recent eVTOL/UAM market update report here.
United Airlines will return supersonic travel to the skies with its agreement to buy aircraft from Boom Supersonic. Last week, United Airlines became the first US airline to sign a commercial agreement with Boom Supersonic, an aircraft OEM focused on supersonic commercial flight. Under the agreement, United will purchase 15 of Boom’s Overture airlines, with an option for an additional 35 aircraft. Each Overture aircraft can carry between 65 and 88 passengers, travel at the speed of Mach 1.7, and produce zero carbon emissions. To put this into context, Boom’s aircraft can travel twice the speed of today’s fastest airliners and fly passengers from San Francisco to Tokyo in 6 hours (compared to 10:30 hours). The aircraft is expected to be produced in 2025 and begin to carry passengers by 2029. Together with UAL’s partnership with Archer on eVTOLs, this shows UAL’s commitment to not just remain at the forefront of innovation when it comes to next generation aviation technology but also seek multiple routes to reduce its carbon footprint in the next decade. While many of these technologies/companies are many years away from commercialization and may not even come to fruition, we believe these early investments can give UAL an invaluable seat at the table to get an early glimpse into coming disruption (which is a question of when, not if, in our view), potentially influence the industry at an early stage and particularly lock in early-mover advantage with very little financial risk (though maybe small reputational risk). See the initial MS A&D team’s thoughts on this deal here.
DAL updated their 2Q21 guidance. In an 8-K released last week, DAL’s management provided an update on its 2Q total revenue guide, now expecting revenue between $6-6.2bn (vs. MSe at $6.12bn and cons. at $6.21bn). DAL now sees 2Q pre-tax loss of ($1bn)-($1.2bn) vs. MSe at ~($1.096bn) and cons. at ~($1.08bn). Management is forecasting CASM ex-fuel to be up ~9% vs. 2Q19 compared to its prior guidance of up ~6-9% and expects fuel prices to be $2.10-2.15/gallon. In addition, management is guiding adj. net debt to be <$19bn. We are MTM-ing our model accordingly. Our FY21/22/23 EPS moves to ($4.20)/$4.08/$7.84 vs. ($4.54)/$3.75/$7.54 prior and ($3.81)/$3.92/$6.35 cons. Our PT increases to $73 from $70 as a result.
The UK updated its “Green List” amid increasing worries of coronavirus variants. Last week, MS saw a small step back in the UK green list. Instead of adding a country (potentially the US), the UK removed Portugal from its “quarantine-free” list and downgraded the country to amber status. Travelers returning from amber list locations – which currently includes hotspots such as Spain, Croatia, and Greece – must quarantine at home for 10 days and take two post-arrival covid tests, while there is a complete travel ban to red list countries. While the return to international travel may be a bumpy road and decisions like this could sap traveler confidence in the short term, we continue to believe international travel will improve significantly by the end of the year given the current pace of vaccinations, unless a new coronavirus variant and/or strain increases travel restrictions.
In Section 3 of this report, you will find the latest insight from our AlphaWise Consumer Pulse Travel Survey.
CARLISLE IT
Carlisle Interconnect Technologies (CarlisleIT) announced that it is now offering high-performing, low-cost cable assemblies, connectors and interconnect systems for 5G and Gen-Z systems used in Internet of Things (IoT), network infrastructure, automotive and autonomous driving, medical services, military and defense, and aerospace applications. CarlisleIT’s highly-engineered standard and custom interconnect solutions uniquely position the company to address the complex connectivity issues often associated with 5G applications.
“Technology is evolving at rapid pace, and new advancements in connectivity, machine learning, and the IoT are shaping industries across the globe,” said Marc Temple, Business Director for CarlisleIT. “With more than 80 years of experience in pioneering interconnect solutions, CarlisleIT the perfect partner to find innovative solutions for a customer’s long-term success in these industries.”
5G networks require high bandwidths, faster data speeds, and ultra-low latency to successfully deliver next-generation performance. CarlisleIT’s 5G processing capabilities offer scalability, interoperability, reliability, and flexibility as customers navigate new and emerging technology to meet their business goals. Leveraging its worldwide manufacturing footprint, CarlisleIT is also able to work with customers to design, build, test, and certify solutions in-house.
From existing RF connectors, cable assemblies, and adapters to highly-customizable interconnect solutions, CarlisleIT’s team of experts can help customers achieve enterprise success through 5G network and systems.
OTHER NEWS
- We have finally decided to give you a link to one of the best ever live video performances by Hear …. and they perform Stairway To Heaven for Led Zeppelin at the Kennedy Center – (380) Heart – Stairway to Heaven Led Zeppelin – Kennedy Center Honors HD – YouTube
- Cloud curious? Your Guide to the Cloud
Power, Power, Power... it used to be location, location, location, but with the recent airline announcements to expand off-aircraft data services (internet, mobile phone, SMS, etc), Astronics is excited about the complementary nature of these systems with our world leading EmPower® in-seat PED power systems. Most airlines installing new data services on their aircraft are also expanding EmPower® into all seats on their fleet because they realize depleted passenger batteries do not make money.”