PANASONIC & THINKOM

Panasonic Avionics Corporation (Panasonic Avionics)announced the launch of a new, next-generation Ku-band antenna, which will be developed in partnership with ThinKom Solutions, Inc.

The newly designed ThinAir® builds upon ThinKom’s flight proven, VICTS (Variable Inclination Continuous Transverse Stub) technology. It will be offered by Panasonic Avionics to its airline customers for both line-fit and retrofit installations, with first deliveries occurring in 2023.

The antenna will connect aircraft with Panasonic Avionics’ global communications network of high-speed, high-bandwidth Ku-band satellites, which place capacity where it is most needed to meet the growing needs of airlines and their passengers.

The new highly efficient and low-profile antenna offers airlines a wide range of advantages. These include support for both LEO (low earth orbit) and GEO (geostationary orbit) satellite networks, higher speed throughput, greater aerodynamic efficiency, gate-to-gate operations, and reduced operating costs.

Jeff Sare, Vice President of In-Flight Connectivity Solutions at Panasonic Avionics, said, “Panasonic is committed to delivering seamless, scalable, and future-proofed in-flight connectivity to our airline customers and their passengers. Our new antenna offering with ThinKom is an integral part of our network and will allow airlines to access both current and future satellite constellations.”
Panasonic Avionics offers global high-speed connectivity service everywhere commercial aircraft fly and has over 210 regulatory approvals across the globe. Its network consists of high-throughput (HTS) and extreme throughput (XTSTM) satellite technologies that provide the best end-user experience possible.

“This agreement with Panasonic Avionics is an important validation of our VICTS phased array antennas, which are designed to seamlessly roam on both LEO and GEO networks, delivering unparalleled flexibility and resiliency to ensure the highest level of bandwidth services and availability to airline customers,” stated Mark Silk, President of ThinKom Solutions, Inc.

“The combination of our VICTS technology and Panasonic Avionics’ experience and commitment to in-flight entertainment and connectivity provides an extremely compelling value proposition to commercial airlines, both today and in the future.”

Over 2,300 aircraft are now connected to Panasonic Avionics’ global communications network, which supports improved airline and passenger experiences including faster internet, video streaming and greater bandwidth for crew applications. Over 3,750 aircraft from various airline customers are currently committed to Panasonic Avionics’ in-flight connectivity services.


BLUEBOX WOW & QANTAS

Bluebox Wow wireless IFE to be deployed on all jet aircraft in QantasLink fleet

Travelers flying the network of cities and regional destinations across Australia served by QantasLink, the regional airline for the Qantas Group, can soon enjoy free wireless in-flight entertainment (W-IFE) on board.
Bluebox Aviation Systems has been selected by QantasLink to deploy its Bluebox Wow W-IFE system on QantasLink’s fleet, initially on Airbus A320 aircraft, then expanding to its Fokker F100, Boeing 717, and Alliance Airlines’ Embraer E190 aircraft. The Bluebox Wow system will enhance the regional airline’s service on board, providing entertainment content directly to passenger devices over a captive wireless network.
Bluebox Aviation Systems has been selected by QantasLink to deploy its Bluebox Wow W-IFE system on QantasLink’s fleet, initially on Airbus A320 aircraft, then expanding to its Fokker F100, Boeing 717, and Alliance Airlines’ Embraer E190 aircraft. The Bluebox Wow system will enhance the regional airline’s service on board, providing entertainment content directly to passenger devices over a captive wireless network.
The IFE content will include movies, TV, audio books and podcasts. Access to the Bluebox Wow system will be integrated with the Qantas Entertainment app to help facilitate a seamless flight-to-flight IFE experience, but will also be available app-free with simple browser access for anyone who does not have the Qantas Entertainment app loaded on their device.
The Bluebox Wow aircraft-powered option will be deployed, which will also have fully-automated PA Pause functionality. This is provided and fitted via an EASA STC, recently awarded for the A320 Family aircraft and which will be modified for use on the other aircraft in QantasLink’s fleet.
“Recently receiving our STC on the Airbus A320 Family for our aircraft-powered version of Bluebox Wow system, and now being able to announce Qantas’ selection of Bluebox Wow for its QantasLink network, are two exciting and very positive milestones for us to mark as our industry begins to emerge from the global pandemic,” said David Brown, Business Development Director, Bluebox. “It’s not insignificant either that we’re demonstrating that our W-IFE systems can replicate offerings of traditional aircraft avionics-based installed systems and proving the value of low-cost W-IFE systems across larger fleets. Just as Bluebox Wow expanded the market for IFE in its original battery-operated form, we’ll now see it capture more of the W-IFE market, given its lower cost of deployment and digital platform scope for everything from entertainment to touch-free retail and to even more as digital in-flight services develop.”
Bluebox Wow is a discrete, lunchbox-sized unit, typically stowed securely in overhead bins. With a remarkably low cost of ownership, it provides wireless content streamed to passenger devices in any aircraft cabin, including a wide range of film, TV, audio, games, and other digital content. These services can be offered to passengers on a complimentary basis or paid for via payment card or voucher access with no cabin crew interaction required. Bluebox also offers onboard retail services, including the ability to order and pay for products and services via passenger devices with full inventory synchronization, in parallel to traditional sales from galley carts via cabin crew point-of-sale devices. In addition to onboard touch-free sales, Bluebox’s retail solutions also enable pre-paid (booking path) purchases.
With battery- and aircraft-powered versions of Bluebox Wow, the linefit option for Bluebox’s W-IFE platform available on Airbus OSP and retrofit on traditional avionics grade hardware, Bluebox’s range of hardware options for its digital in-flight platform ensures the greatest choice and flexibility are available to customers, especially those with different aircraft types and fleets of any size. This also means that Bluebox can deploy a consistent customer experience across a fleet – whether that be to provide more traditional entertainment content, offer food & beverage or retail sales on board or through the passenger journey, or deliver other innovative services designed to engage passengers and build customer loyalty as well as increase ancillary revenue.

BOEING

  • Aircraft Lessor Griffin Global Asset Management Orders Five Boeing 737-8 Jets
  • The Los Angeles- and Dublin-based aircraft leasing company places its first direct order with Boeing
  • With the Griffin order, customers have placed 529 gross orders for the 737 MAX family in 2021

Boeing and Griffin Global Asset Management announced the aircraft lessor is expanding its commercial aircraft portfolio with five new 737-8 jets. The purchase is Griffin’s first direct order with Boeing as it sees strategic opportunities to place the airplanes during the market recovery.

“As market conditions rebound, we are finding opportunities to serve our airline customers in innovative ways. An important component of this strategy is providing balanced capacity that meets returning passenger demand. The 737-8 is well-positioned to support this objective, and this order lays a strong foundation for more to come with Boeing and Griffin on future opportunities,” said Ryan McKenna, founder and CEO of Griffin.

Designed and built in Renton, Washington, the 737 MAX family delivers superior efficiency, flexibility and reliability while reducing fuel use and carbon emissions by at least 14% compared to the airplanes they replace. The 737-8 seats up to 189 passengers and can fly 3,550 nautical miles – about 600 miles farther than its predecessor – allowing airlines to offer new and more direct routes for passengers. Every 737 MAX features the new Boeing Sky Interior, highlighted by modern sculpted sidewalls and window reveals, LED lighting that enhances the sense of spaciousness and larger pivoting overhead storage bins.

“Griffin Global Asset Management is building a first-class aircraft leasing business, and we are delighted that they have selected the 737-8 for their single-aisle portfolio. As Griffin places its first direct order with Boeing, we welcome them to the 737 family and look forward to working with the team in the future,” said Ihssane Mounir, Boeing senior vice president of Commercial Sales and Marketing.

As a leading global aerospace company, Boeing develops, manufactures and services commercial airplanes, defense products and space systems for customers in more than 150 countries. As a top U.S. exporter, the company leverages the talents of a global supplier base to advance economic opportunity, sustainability and community impact. Boeing’s diverse team is committed to innovating for the future and living the company’s core values of safety, quality and integrity. Learn more at www.boeing.com .
Backed by Bain Capital Credit, Griffin provides commercial aircraft leasing and alternative asset management with offices in Dublin and Los Angeles. The team is staffed by experienced aviation professionals who work closely with airlines, aircraft manufacturers and investors to provide custom fleet solutions and innovative financing products to airlines around the world.

More Boeing News:

Boeing named Matt Welch as vice president of Investor Relations. Welch will succeed Maurita Sutedja, who has accepted an opportunity outside of Boeing following more than a decade of leadership within several finance roles at Boeing. Welch’s appointment is effective immediately.

Welch will lead Boeing’s interactions with the investment community, providing shareholders and financial analysts timely, accurate and transparent information on the company’s market environment, business, performance and outlook.

Welch is a seasoned leader with more than 20 years of deep financial experience across Boeing’s operations. Currently serving as vice president of Revenue Management at Boeing Commercial Airplanes, Welch has held several roles of increasing responsibility, including in Investor Relations; Financial Planning and Analysis; and program finance


OTHER NEWS

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

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

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

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

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

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

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

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

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

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

Never waste a crisis

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

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

Unilateralism has stilted recovery

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

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

Sustainability in aviation

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

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

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

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

Readiness for digital transformation

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

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

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


FLIGHTAWARE

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

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

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

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

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


MORGAN STANLEY

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

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

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

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

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

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

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

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

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

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

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


BOEING

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

The agreement includes:

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

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

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

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


OTHER NEWS

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

SITA

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

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

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

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

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

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

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


LATAM

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

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

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

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


AIRBUS

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


BOEING

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

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

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

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


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


OTHER NEWS

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

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

Postponed: AIX 2021 Live Events – Virtual Event Scheduled

AIX was scheduled to take place in Hamburg, Germany  on August 31 through September 2, 2021. But now, Aircraft Interiors Expo (AIX), World Travel Catering & Onboard Services Expo (WTCE) and Passenger Experience Conference (PEC)  all have been postponed due to travel uncertainties surrounding the Covid-19 pandemic. The physical events have been rescheduled for June 14-16, 2022 at the Hamburg Messe.

The good news is the 2021 event has become a virtual event and will take place on 14-16 September.

The organizers say they know how much people want to get back to meeting in person but the global situation remains too unpredictable due to the COVID-19 pandemic. Additionally, the continued challenges and global restrictions on international travel faced by the global aviation sector.

The organizers believe that the virtual format for AIX 2021 will offer a platform where industry professionals can connect and share ideas to support the recovery and growth of the cabin interiors and onboard services community. We anticipate details to be released in the near term about the virtual event.


IFPL Awarded a Third Queen’s Award for Enterprise

IFPL is a winner of the 2021 Queen’s Award for Enterprise for Innovation. This is the third time the specialist aerospace design and manufacturing company will be presented with one of the most prestigious business awards in the country.

IFPL has been recognized for its excellence in the field of innovation. The team are also twice winners in the category of ‘International Trade’, having received the award in 2008 and 2014.

The Queens Awards for Enterprise celebrate the success of exciting and innovative businesses which are leading the way with pioneering products and services. This year, 205 business were recognized nationally for their contributions to ‘International Trade’, ‘Innovation’, ‘Sustainable Development’, and ‘Promoting Opportunity (through Social Mobility)’.

IFPL has been honored in the ‘Innovation’ category for their design of a contactless payment and personalization device for use in commercial passenger aircraft. The device can be installed as an addition to seatback inflight entertainment systems, and solves the problems of its predecessors’ poor reliability, expensive production costs, and vulnerability to fraud.

IFPL was established in 1996 and is headquartered on the Isle of Wight. The team specializes in the design and manufacture of passenger interface solutions, supplying products to the global in-flight entertainment and connectivity (IFEC) industry.

IFPL founder and CEO Geoff Underwood commented:

“The aviation sector has been through a tough period recently, so being recognized as a company that is consistently working hard to create innovative products that will help operators to recover post-pandemic is a real boost. I’m so proud of the whole IFPL family for this fantastic achievement.”

Now in its 55th year, the Queen’s Awards for Enterprise are the most prestigious business awards in the country, with winning businesses personally approved by Her Majesty the Queen. First established in 1965, over 7000 companies have since received an award, with many successfully using the momentum from their achievement to secure new business and venture into new markets.


Boeing

Boeing and the Lufthansa Group announced the airline group will continue its fleet modernization with a new order for five 787-9 Dreamliners. The incremental order further supports the group’s efforts to reduce complexity in its long-haul fleet and improve overall environmental performance by introducing more fuel-efficient widebody jets.

“We are very pleased that five more Boeing 787-9s will accelerate the modernization of our long-haul fleet. With these ultra-modern, fuel-efficient aircraft, we send a strong signal for environmental responsibility within the Lufthansa Group. Furthermore we will reduce our operating costs and provide our guests a state-of-the-art travel experience,” said Dr. Detlef Kayser, Member of the Executive Board Deutsche Lufthansa AG, Chief Operations Officer.

The Lufthansa Group placed its initial order for 20 787-9s in 2019. The new purchase agreement takes the group’s order book to 25 787-9s.

The second member of the Dreamliner widebody family, the 787-9 can fly up to 20% more passengers and around 25% more cargo while reducing fuel use and emissions by up to 25% compared to the airplanes it replaces. Since entering service in 2011, the 787 family’s fuel efficiency, flexibility and range have enabled airlines to open more than 300 new nonstop routes and reduce carbon emissions by 80 billion pounds.

Built with lightweight composite materials and powered by advanced engines and a suite of environment-friendly technologies, the 787 family has an airport-noise footprint that is 60% smaller than the previous generation of 767 airplanes, making it ideal for Lufthansa Group airport communities.

“The Lufthansa Group has been navigating an extremely challenging market and positioning itself for the recovery ahead and the eventual return to growth. We are honored that they have once again selected Boeing’s widebody airplane family to power their future fleet,” said Ihssane Mounir, Boeing senior vice president of Commercial Sales & Marketing. “The 787’s superior fuel efficiency and range provide the Lufthansa Group the flexibility to profitably operate the airplane across its route network.”

Also From Boeing:

Boeing announced a $10 million emergency assistance package for India to support the country’s response to the current surge in COVID-19 cases. The assistance from Boeing will be directed to organizations providing relief, including medical supplies and emergency healthcare for communities and families battling COVID-19. The Boeing team in India totals 3,000 employees, in addition to valued local customers, suppliers, and business partners. Boeing will partner with local and international relief organizations to deploy the $10 million to the areas of greatest need in consultation with medical, government and public health experts.

Boeing employees also have an opportunity to donate personally to charitable organizations supporting COVID-19 relief in India. As part of the Boeing Gift Match program, the company will match monetary donations dollar for dollar, extending the reach of assistance being provided to the Indian people.

And More News…

Boeing and Silk Way West Airlines announced the private cargo operator will expand its international network with an order for five 777 Freighters. The deal marks the first purchase of the long-range, high capacity twin-engine freighter in the Caspian region and Central Asia. The airplanes will enable the airline to increase its capacity to meet growing cargo demand around the globe. Silk Way West Airlines and Boeing leaders announced the agreement during a signing ceremony in Baku that included Akhundov; Rashad Nabiyev, Minister of Transport, Communications and High Technologies of Azerbaijan; and Earle D. Litzenberger, U.S. ambassador to Azerbaijan, as well as Stan Deal, president and CEO of Boeing Commercial Airplanes. The 777 Freighter is the world’s largest, longest range and most capable twin-engine freighter. The airplane’s better fuel efficiency and ability to reduce CO2 emissions by 17% compared to legacy airplanes will contribute to the carrier’s sustainability goals. With a range of 9,200 kilometers, the 777 Freighter can carry a maximum payload of 102,000 kilograms, allowing Silk Way West Airlines to make fewer stops and reduce landing fees on long-haul routes.

Designed to integrate smoothly with existing cargo operations, the 777 Freighter will provide Silk Way West Airlines operational flexibility with five 747-8 Freighters and seven 747-400 Freighters the carrier currently operates. The 747 and 777 freighters are capable of carrying tall and outsized cargo loads on 3-meter-tall pallets. This common main-deck pallet height capability enables interchangeable pallets. Additionally, the 777 Freighter main deck side cargo door is 3.72 meters wide, giving the freighter outsized carriage capability beyond tall payloads.

The 777 Freighter is Boeing’s top-selling freighter of all time. Customers from around the world have ordered 247 777 Freighters since the program began in 2005. The market leader in air cargo aircraft, Boeing provides more than 90% of the worldwide dedicated freighter capacity, including new production and converted aircraft.

Founded in 2012 in Baku, Silk Way West Airlines is the largest cargo airline in the Caspian Sea region with an annual cargo turnover of 350,000 tons. Based at Heydar Aliyev International Airport in Baku, the airline operates approximately 350 monthly scheduled flights to 40 destinations around the world.


Other News

 

 

European Aviation Network

The European Court of Justice (ECJ) issued a milestone decision answering a set of questions referred to the ECJ in proceedings initiated by Eutelsat (and supported by Viasat) regarding Inmarsat’s European Aviation Network (EAN). The decision rejects the arguments of Inmarsat’s competitors, which have been trying for years to deprive European consumers of the pro-competitive, innovative and efficient EAN service offering.

Inmarsat operates EAN with Deutsche Telekom and has always known that its EAN platform complies with applicable EU rules.

Brad Swann, Inmarsat General Counsel, said: “Inmarsat welcomes the ruling of the European Court of Justice rejecting our competitors’ arguments aimed at limiting the operation of the European Aviation Network. EAN is an asset for Europe as a whole and it is proving very popular with passengers and airlines. Inmarsat looks forward to continuing to provide the rapidly growing number of EAN users with a world-leading in-flight connectivity experience.”

This decision by the ECJ is final and binding.

Inmarsat has always known that the allegations made by its competitors were entirely without merit and fundamentally misconceived. The legal actions by Inmarsat’s competitors were filed with the sole intention of artificially creating legal and regulatory uncertainty around EAN. The claims of Inmarsat’s competitors have been rejected by all national administrations in the 27 EU Member States and in the UK. Legal actions have also been rejected by courts in the countries where litigation was initiated by either Viasat or Eutelsat, including the UK (including on appeal, now final and binding), Germany and Belgium, as well as in not less than four other earlier decisions of the Court of Justice of the EU (three by the General Court and another one of the Court of Justice).

EAN is an award-winning inflight broadband solution based on outstanding technological innovation developed by European businesses, which has taken years of hard work and commitment by Inmarsat, Deutsche Telekom and a range of European technology partners to deliver. It is providing high quality connectivity services to thousands of passengers on hundreds of flights across Europe. The successful operation and roll-out continues and over the coming months thousands more European airline passengers will be able to experience a world-class cabin Wi-Fi service.


Gogo

Jet Edge, a leader in full-service private aviation, is proud to announce a new partnership with Gogo Business Aviation, the industry’s top inflight internet provider. The long-term partnership will upgrade Jet Edge’s AdvantEdge and Managed super-mid and large cabin fleet to AVANCE L5, Gogo’s most popular connectivity system that delivers a robust inflight 4G Wi-Fi experience.
Jet Edge offers the most extensive and elevated selection of point-to-point super-mid Bombardier Challenger and large cabin Gulfstream aircraft in the United States, and will have the first-ever fleet to be entirely equipped with Gogo AVANCE L5. The conversion is slated for final completion by end of Q3-2021. The commitment to an all-AVANCE L5 Charter fleet has already begun, with over 20 aircraft now equipped with Gogo’s 4G Wi-Fi connectivity. Gogo’s advanced system enables the use of popular streaming services such as Netflix, YouTube, and Hulu, video conferencing, and on-demand movie viewing. Passengers are able to access high-speed internet for web browsing on their personal smartphones, laptops, and tablets. Real-time data for cockpit apps, and remote diagnostics and support are also available.


Boeing

Boeing and Dubai Aerospace Enterprise (DAE) announced the aircraft lessor is growing its 737 MAX portfolio with an order for 15 737-8 jets. DAE had been investing in the 737 MAX by buying jets from existing customers and leasing them back to the carriers. The new order is DAE’s first direct 737 MAX purchase from Boeing as it modernizes its portfolio for better economic and environmental performance.

The order will appear on Boeing’s Orders and Deliveries website once finalized.

Firoz Tarapore, Chief Executive Officer of DAE, said: “We are delighted to deepen our already strong relationship with Boeing. Including this order, we own and manage 162 Boeing aircraft. An increasing number of global aviation regulators are returning the MAX to the skies. We are confident in the success of these aircraft as domestic and regional air travel are seeing strong signs of recovery.”

The new purchase is DAE’s second investment in the 737 MAX in the past year. In the third quarter of 2020, the lessor signed an agreement with American Airlines to purchase and lease back 18 new 737-8 airplanes. Since the agreement, the lessor has delivered 17 of the jets to the U.S. carrier. DAE previously completed a similar purchase-leaseback deal with Brazilian carrier GOL for five 737-8s.

“DAE has been instrumental in helping its customers realize the operating economics and environmental performance of the 737-8. We are delighted that they have come back to add more 737 aircraft to its growth plan as it positions itself for the recovery in commercial passenger traffic,” said Ihssane Mounir, Boeing senior vice president of Commercial Sales and Marketing. “We are honored by DAE’s trust in the 737 family and we look forward to partnering with them to serve the fleet requirements of airlines around the world.”

The 737-8 is a member of the 737 MAX family which is designed to offer more fuel efficiency, reliability and flexibility in the single-aisle market. The airplane can fly 3,550 nautical miles – about 600 miles farther than its predecessor – allowing airlines to offer new and more direct routes for passengers. Compared to the airplanes it replaces, the 737-8 also delivers superior efficiency, using 16% less fuel and significantly reducing CO2 emissions and operating costs.

Also From Boeing:

Boeing projects global and diversified funding will continue to flow into the aircraft financing sector as the aviation sector navigates the global pandemic and vaccine deployment continues to accelerate.

“Financiers and investors understand the industry’s resilience and the long-term fundamentals that make aircraft a valuable asset class,” said Tim Myers, president of Boeing Capital Corporation. “Despite the unprecedented impacts of COVID-19 on the global aerospace industry, there generally continues to be liquidity in the market for our customers, and we expect it to further improve as travel begins to rebound.”

The 2021 Current Aircraft Finance Market Outlook (CAFMO), the first published since 2019, reflects Boeing’s near-term view of market dynamics and assesses financing sources for new commercial airplane deliveries. Due to the ongoing impacts of the pandemic, the 2021 CAFMO excludes its customary one- and five-year industry financing projections.

“Industry fundamentals continue to show varying degrees of strength in different markets depending on the regional trends of the global pandemic,” Myers said. “We expect that capital will continue to be routed into the sector by established players and as new entrants seek opportunities during the industry’s recovery.”

The 2021 CAFMO reports the aircraft financing environment ended 2020 with enough liquidity to finance deliveries, but with stresses particularly in the bank debt and tax equity markets. The 2021 CAFMO, an introductory video and regional financing data is available at here. Select highlights include the following:

  • At the industry level, commercial aircraft delivery funding volume totaled $59 billion, a 40% decrease from 2019 levels.
  • The top sources of Boeing delivery financing were cash, bank debt and capital markets, and 100% of Boeing deliveries were financed by third parties.
  • Aircraft lessors executed a significant volume of sale-leaseback transactions, and the industry-wide leased fleet climbed to 46%.
  • Capital markets for aviation volumes were 70% higher than 2019.
  • Commercial banks shored up the aviation industry’s need for liquidity early in the pandemic, but long-term bank debt became one of the less utilized forms of financing.
  • Institutional investors and funds continued to seek aviation exposure, stepping up as some financiers paused and sector credit spreads widened.
  • Export credit agencies remain a small but important funding source during the pandemic.
  • Credit-enhanced financing saw further progress as a complementary funding source, totaling to 4% of the financing mix for Boeing deliveries.

The Boeing 2020 Commercial Market Outlook, a separate annual 20-year forecast addressing the market for commercial airplanes and services, projects passenger traffic growth at an average rate of 4% per year. The global commercial fleet is expected to reach 48,400 by 2039, up from 25,900 airplanes today.


Galgus

Panasonic Avionics

In late 2020, Panasonic Avionics, in conjunction with a major airline, conducted a trial providing passengers unlimited inflight Wi-Fi. The trial ran over several months with the goal of finding out how the airline could enhance the relationship with their passengers by providing high-quality onboard Wi-Fi. Specifically, it allowed them to better understand if Wi-Fi boosted passenger loyalty; to see if Wi-Fi facilitated a better understanding of passenger behavior; and if better Wi-Fi correlates to an increase in potential revenue.

The Wi-Fi experiment was quietly rolled out on 109 aircraft with very limited promotion but once available, the service was quickly discovered by passengers – and they began streaming. On average, the engagement time per user increased by 23%, streaming content was viewed 41 minutes more with YouTube and Netflix being the top choices watched by passengers and music aficionados tuned into their Spotify and Apple Music Apps to stream their favorite tunes. Prior to the trial the average passenger data consumption per aircraft was 1.6 GB of data which jumped to 3 GB during it.

The trial ran during the holiday travel times, which had the highest travel numbers since the start of the pandemic. Even with the increased load factors, complaints about slow inflight internet rates fell by up to 46% in December and 61% in January! Amazing.

The most significant takeaways from the trial: 1) Fast, reliable, highspeed internet is a cornerstone of the passenger experience. 2) Increased usage of streaming apps, either via PEDS or seatback screens, provide a big opportunity for increased revenue-generating ads and content for the airlines.

Panasonic states that the trial was possible because of their Gen-3 network of high speed, high bandwidth Ku-band satellites that direct capacity to where it is needed most. Panasonic reports that In February, their first of high-throughput satellite (XTS) joined their network and entered service over Asia-Pacific. Also, the new Newtec modems played an integral part in the success of the trial. Additionally, the migration from Panasonics’ previous generation IFEC technology means faster browsing and higher reliability in video streaming. The Gen-3 network also enables 4G and VoIP services and powers Live TV channels like Sport 24.

The trial proved that passenger demand for highspeed, high quality internet is growing. This is supported by: 1) an increase in long-haul flights 2) passengers are carrying more connected devices 3) high customer expectations for technology and airlines. Further, the increase in BYOD (bring your own device) will continue the drive the demand for high quality, connectivity. Perhaps more significantly, this increasing expectation and new demands for inflight services are encouraging airlines to brand their onboard entertainment experiences, not only for the seatback IFE, but also the BYOD and to coordinate these efforts with the IFEC manufactures.

Embracing highspeed, reliable connectivity will put airlines in a better position to meet their passenger needs, both now and in the future, whether the service is free or paid. As the industry begins to recover from the pandemic, maximizing connectivity will be a major differentiator.

Also From Panasonic Avionics & JetBlue:

JetBlue announced  that it has selected Panasonic Avionics (Panasonic) for its live sports in-flight offering on the airline’s Airbus A321 Long Range aircraft.

This offering will expand JetBlue’s transatlantic inflight entertainment options to include one  channel of live sports, Sport 24, with satellite-based streaming facilitated by the airline’s connectivity provider. JetBlue’s new fleet of Airbus A321LR aircraft due to be delivered from 2021 onwards, will be outfitted with the service.

Panasonic is the exclusive provider of Sport 24, the world’s first and only live in-flight sports platform. It broadcasts 24-hours a day, 365 days a year, connecting airline passengers to over 16 hours of premium live content from over 30 different global sports leagues each day.

From 2021, JetBlue’s customers will be able to enjoy all the live action from the world’s top sporting events, including the NFL, NBA, NHL, all four Tennis Grand Slams, all four Golf Majors, the NRL, the UEFA Champions League, English Premier League, Bundesliga, and more.

Sport 24 creates a unique viewing experience for passengers – from the casual to the avid sports fan – which results in a dwell time almost three times higher than the most popular US sports channel.

Almost 1,000 aircraft across the globe are installed with Panasonic’s Live Television service, of which Sport 24 are an integral part.


Hiring Trends Survey: Covid-19 Impact Results

JSfirm.com, an aviation job website, released their Hiring Trends Survey for 2021. Of the hiring professionals, executives, and business owners surveyed, over 50% are projecting growth in 2021. Additionally, 66% of those surveyed did not cut any jobs in 2020, despite the impact of the COVID-19 pandemic on the economy.

In summary:

  • 200 aviation companies across various sectors were surveyed
  • 84% are projecting moderate growth in 2021
  • 93% expect to hire in the 2nd Quarter (Apr – Jun) of 2021
  • Pilots, maintenance & avionics technicians remain in highest demand

Sam Scanlon, Managing Partner of JSfirm.com, said, “The results of our recent survey are encouraging for the industry. It’s interesting to see how many companies were not affected too much by the pandemic: airlines make the headlines, but the fact is, the small to medium size companies that make up the majority of our infrastructure made it through the past year and are now gearing up for growth.” He continued, “Overall traffic on our website continues to increase from both job seekers and companies – we are anxious to see how the remainder of 2021 plays out.”


Morgan Stanley
Airlines: More than Just a Re-Opening Trade; Fundamentals Still Supportive of Upside: Upgrade UAL, ALK; Initiate on AAL

Morgan Stanley (MS) reiterates their Attractive view on the US Airlines despite the stocks up 85% in the last 5 months. With a clear path to re-opening now in focus, they look out to 2022+ and find consensus numbers are too low given their view of strong volume and cost tailwinds. MS are ~30%+ above consensus in 2023.

They initiate coverage on American Airlines (AAL) at Underweight. MS upgrades Alaska Air Group (ALK) from Equal-weight to Overweight and United Airlines (UAL) from Underweight to Equal-weight. Remain Overweight on Southwest Airlines (LUV), JetBlue Airways (JBLU), Allegiant Travel (ALGT) and Delta Airlines (DAL).

MS sees ~30% upside to our price targets and 45% upside to consensus 2023 estimates, on average, driven by quick rebound of air traffic, structural cost savings and a supportive jet fuel environment. They also believe a Roaring ’20s/Swinging ’60s-like macro environment can drive traffic significantly higher than a 2019 baseline level, in a bull case. MS sees the most upside at names with the most idiosyncratic tailwinds especially LUV, JBLU, ALK and ALGT though international and corporate could also surprise to the upside relative to expectations keeping the Legacies in play (especially DAL).

Morgan Stanley also believes the market is missing a few powerful tailwinds driving upside to our estimates vs. consensus:

1. 2022+ estimates still do not reflect a rapid reopening. The circumstantial evidence points to the bull case on a traffic recovery. Yet, consensus is modeling in 2022 revenues ~20% below and 2022 ASMs (Available Seat Miles or volume) ~10% below 2019 levels, which we believe is too conservative. MS continues to expect a return to 2019 ASM levels on average by end 2021/early 2022, which implies 2022 ASMs at least equal to 2019 levels.

2. 2019 is the wrong baseline to use for 2023 and beyond. They used 2019 as the baseline for the reopening but consensus (and the market) appear to be maxing out at that level. MS believes the ceiling for air traffic can be significantly higher in a Roaring ’20s/Swinging ’60s like macro environment, which is possible given the strength of consumer balance sheets. In the 1920s, passenger car miles driven nearly doubled in 5 years above the WW1/Spanish flu baseline of 1918 and again after WW2 in the 1950s, while the emergence of commercial air travel saw passenger volumes up 6x in 5 years. While travel today is certainly more mature, we would not be surprised to see the return of the “golden age” of travel in the 2020s, which would represent upside to our numbers.

3. Structural cost savings suggest margin upside on rising volumes. Several airlines have provided either LT structural cost savings targets (UAL, JBLU, AAL) or benchmarks for achieving 2019 CASMxF (Cost per Average Seat Mile ex-fuel) levels (DAL, LUV). These targets imply margins should be comfortably higher than 2019 levels, if 2022/23 revenues are at a similar level, as expected.

4. Jet fuel pricing is in a sweet spot. Despite jet fuel prices rising 40% off the 2Q20 bottom, we note that: a) fuel prices are still comfortably below 2019 levels, b) current levels could be supportive of industry pricing, and c) our Energy team believes that in the long-term oil prices will stabilize at $50-55/bbl level (vs. ~$60 today), providing further support for structurally higher margins than 2019.

Riding the biggest waves in the rising tide + Idiosyncratic catalysts characterize our top picks.  Morgan Stanley likes airlines with catalysts that will help them outgrow the rising tide. This means Low Cost Carriers (LCCs) and Ultra Low Cost Carriers (ULCCs) with a US Domestic Leisure footprint that will rebound first though we expect International and Corporate travel at Legacy carriers to catch up in 2022. Also, we prefer stocks with idiosyncratic catalysts, including LUV (MAX transition, new corporate/GDS integration), JBLU (fleet renewal, international operations, AAL alliance), ALK (MAX transition, AAL alliance) and ALGT (20% larger fleet). They also prefer Airlines that are likely to start returning cash to shareholders first, given limited to no balance sheet impairment. Legacy airlines are likely to experience the rear of the rising tide and the balance sheet needs to be fixed before cash return or growth investments can occur. DAL is their top Legacy pick.

MS initiates on AAL at UW and a $20 PT (20% downside to the current price) – we believe AAL will rise with the industry tide of returning air traffic and they like its young aircraft fleet which could limit capex pressure in the critical years ahead. However, with the stock up over 50% YTD, positioning is no longer skewed as negative as it used to be, which raises the bar. Our FY23 EPS is roughly 40% below 2019 levels. They are also upgrading ALK from EW to OW (PT from $49 to $90 or 30% upside) and UAL from UW to EW (PT from $38 to $65 or 12% upside) as they see more favorable relative risk-rewards than previously.

Risks to their bullish view include another black swan macro event, labor shortages/disruptions, runaway inflation that pressures the consumer’s balance sheet, safety issues (like COVID resurgence or MAX in 2019) and sharp jet fuel inflation could put our 2022/23 estimates at risk.


Other News

 

 


QUIVER TREE MEDIA

QuiverTree Media has teamed up with ikonoTV, the
world’s first art streaming platform, providing access to content from worldwide collections, archives, galleries and museums inflight. The collaboration provides innovative new access to the art world, broadening access to works with new reach. Passengers are given the opportunity to quietly contemplate great works in a silent streaming format onboard from personal devices and also seat-back screens. The rich variety of works includes masterpieces such as The Garden of
Earthly Delights by Netherlandish master Hieronymus Bosch, the Naked Maja from the Prado’s Goya Collection through to ancient gems such as the exquisite Nefertiti Bust dating back to c. 1345 B.C.

The concept of streaming Art in Silence enables flight passengers to immerse themselves in the works without the distraction of sound, commentary or any element which could interfere in the sentiment evoked by the visual experience. “Continuing to inspire guests onboard with fresh, remarkable experiences made possible with digital expertise is part of QuiverTree Media’s DNA. We are privileged to lead the transformation of the inflight content offering as a disruptive CSP and unlock exceptional new opportunities for airlines with technical innovation” says Guillem Gassó, VP Commercial at QuiverTree Media.

QuiverTree Media and ikonoTV began recently commenced roll out of the innovative content introducing it onboard several launch airlines including Iberia Express, Volotea, Air Nostrum, Pegasus and Sun Express. The offering coincides with the current closure of many museums and other cultural venues as a result of the ongoing pandemic. The decision to enable greater access to art during a time of increased restrictions was a conscious effort given the demonstrated abilities the medium has on personal well being. Organisztions which promote the benefits of art as a contributor to both physical and mental well being include the WHO (source: Euronews 21.11.2019). Contact
press@quivertree-media.com or markevitch@ikonotv.art


OneWeb and SatixFy sign agreement for In-Flight Connectivity (IFC) compact terminal.

OneWeb, the global communications network powered from Space and SatixFy UK, a leading multi-beam antenna and terminal design specialist, have signed an agreement to develop a new In-Flight Connectivity (IFC) terminal that will work over the OneWeb network as well as on Geostationary (GEO) satellite networks. SatixFy UK has formed a Joint Venture with Singapore Technology Engineering Ltd (ST Engineering), called JetTalk, to exclusively commercialize the IFC terminal for Commercial Aviation markets. The agreement reaffirms OneWeb’s ambitions in the global aerospace arena as it sets out its roadmap to support commercial, regional, business and government aviation users.

The IFC terminal will unleash the power of OneWeb’s Low Earth Orbit (LEO) constellation and deliver a ‘home-equivalent’ inflight broadband experience, while also allowing operators to complement their legacy GEO service. The product is based on SatixFy’s Electronically Steered Multibeam Antenna (ESMA) technology, developed together with JetTalk and provides multibeam capability and operates simultaneously on multiple LEO and GEO satellites.

Well positioned to bring ESMA technology to the market earlier than originally anticipated, SatixFy, has recently completed the development of Tx tile of 576 elements and Rx tile of 1024 elements, that can be used as building blocks for the planned terminal. The tiles, which have been co-developed together with JetTalk, have completed initial testing and are currently being implemented inside a terminal product. The OneWeb IFC terminal will integrate the OneWeb modem as well as a GEO network one, inside the terminal.

“Suitability for all aviation applications” – Ben Griffin, OneWeb VP Mobility. OneWeb is confident of its suitability for all aviation applications – commercial, regional, business and government aviation use-cases. Ben Griffin, VP Mobility at OneWeb, said: “OneWeb is creating IFC solutions which offer a significant increase in the whole passenger traveling experience. This agreement with SatixFy represents a major milestone for OneWeb Aviation, as we plot our path to facilitating onboard connectivity, globally, on commercial airliners and corporate jets, large and small.”

“The ability to deploy multi-beam, multi-satellite, multi-orbit IFC terminals is key in SatixFy’s offering developed in partnership with ST Engineering through our Joint Venture – JetTalk.” says Yoel Gat, SatixFy’s CEO. “Aggregating capacity from multiple satellites will give customers the grade of service they expect on flights. This great leap forward is made possible thanks to the continuous support by ESA and UK Space Agency.”

Catherine Mealing-Jones, Director of Growth at the UK Space Agency, said: “The last year has shown connectivity has never been more important to our daily lives, and it is exciting to see SatixFy and OneWeb working together to provide aircraft with broadband internet for the first time. The new aviation terminal will make use of the Prime, Beat and Sx3099 ASIC chips developed with UK Space Agency backing, showing how supporting our most innovative companies leads to results that make a real difference for people all over the world.”
Elodie Viau, Director of Telecommunications and Integrated Applications at ESA, said: “Space and satellites are becoming increasingly important to the digital economy and there is a need to get data all the time and everywhere – even at 35,000ft. ESA is proud to have supported SatixFy in the design of the chips used for this terminal – enabling the digital transformation of society using telecommunications satellites.”

In case you aren’t familiar with OneWeb or SatixFy here is a little data on each of them:

OneWeb will enable connectivity for governments, businesses, and communities. It is implementing a constellation of Low Earth Orbit satellites with a network of global gateway stations and a range of user terminals to provide an affordable, fast, high-bandwidth and low-latency communications service, connected to the IoT future and a pathway to 5G for everyone, everywhere. OneWeb is enhancing the experience of air travel and its network will deliver the speed, consistency and reliability that passengers expect to have in the sky for work or leisure. Find out more at

SatixFy is a vertically integrated company that provides chips and products across the entire satellites communications (satcom) value chain. Its products enable critical remote connectivity applications globally and incorporate the latest technological advances. SatixFy designs its own silicon proprietary chips, codes its software, builds its products and designs end-to-end systems for use in various applications and services, such as in-flight connectivity, IoT, communication payloads, consumer broadband, and more. The company leverages its research and development (R&D) and technical capabilities to design standard based communication products and systems with the most desirable qualities, such as: higher capacity, lower power consumption, lower weight, and lower cost.


BOEING

Deep space exploration took an important step forward on March 21, 2021. The cryogenic core stage for NASA’s Space Launch System (SLS) rocket completed hot fire testing at NASA’s Stennis Space Center as part of the SLS rocket’s Green Run test campaign on the B-2 test stand. The test, which included a full-duration, eight-minute engine burn, demonstrated successful core stage operation and will be used to help certify the stage for flight. “I want to thank the extraordinary individuals who make up the NASA, Aerojet Rocketdyne and Boeing teams who designed, developed, produced and tested the all-new SLS core stage to enable sustainable human exploration of deep space,” said John Shannon, Boeing SLS vice president and program manager.

(Editor’s Note: We understand Boeing has put up for sale some 310 acres in the south Puget Sound region (specifically in Pierce County). They plan to reduce the Puget Sound land operation region by 30% and we wonder if the Northwest Boeing reduction is a part of the cost reduction of the new team? We will also see if more production is moved East in the future, as well!)


IATA has postponed the 77th annual meeting from June 27-29 in Boston, MA.


OTHER NEWS

  • Here is a story which explains why Southwest Airline ramp agents are very important! Southwest Airlines Ramp Agent Reunites Toddler With Buzz Lightyear | TravelPulse (Hey, if my Buzz Lightyear was lost I would be devastated!).
  • Apparently, things are looking up? Reports indicate that 2 weeks ago US air travel was down 55% from the same time period in 2019. But as of today, we understand that it is only down around 48%. WooHoo!
  • Here is an email quote we got from a reader and we offer you the chance to copy it: “This email is a natural product made from recycled electrons. The slight variations in spelling and grammar enhance its individual character and beauty and in no way are to be considered flaws or defects.” Thanks, Ken!
  • Looking for a video explaining AI at the introductory level? Try this: AI in Science Fiction vs. AI in Reality | IE
  • Time to Plan for Restart – Health Travel Apps Expected to be Popular

IATA | Geneva| March 9, 2021–

The International Air Transport Association (IATA) announced results from its latest poll of recent travelers, revealing growing confidence in a return to air travel, frustration with current travel restrictions, and acceptance of a travel app to manage health credentials for travel.

Travel Restrictions

  • 88% believe that when opening borders, the right balance must be struck between managing COVID-19 risks and getting the economy going again
  • 85% believe that governments should set COVID-19 targets (such as testing capacity or vaccine distribution) to re-open borders
  • 84% believe that COVID-19 will not disappear, and we need to manage its risks while living and traveling normally
  • 68% agreed that their quality of life has suffered with travel restrictions
  • 49% believe that air travel restrictions have gone too far

While there is public support for travel restrictions, it is becoming clear that people are feeling more comfortable with managing the risks of COVID-19.

People are also feeling frustrated with the loss of freedom to travel, with 68% of respondents indicating their quality of life is suffering as a result. Travel restrictions come with health, social and economic consequences. Nearly 40% of respondents reported mental stress and missing an important human moment as a result of travel restrictions. And over a third have said that restrictions prevent them from doing business normally.

“The top priority of everybody at the moment is staying safe amid the COVID-19 crisis. But it is important that we map a way to being able to re-open borders, manage risks and enable people to get on with their lives. That includes the freedom to travel. It is becoming clear that we will need to learn to live and travel in a world that has COVID-19. Given the health, social and economic costs of travel restrictions, airlines should be ready to re-connect the world as soon as governments are able to re-open borders. That’s why a plan with measurable milestones is so critical. Without one, how can we be prepared for restart without an unnecessary delay?” said Alexandre de Juniac, IATA’s Director General and CEO.

Future Travel Trends

 

  • 57% expect to be traveling within two months of the pandemic being contained (improved from 49% in September 2020)
  • 72% want to travel to see family and friends as soon as possible (improved from 63% in September 2020)
  • 81% believe that they will be more likely to travel once they are vaccinated
  • 84% said they will not travel if there is a chance of quarantine at destination (largely unchanged from 83% in September 2020)
  • 56% believe that they will postpone travel until the economy stabilizes (improved from 65% in September 2020)

Survey responses are telling us that people are becoming more confident to travel. Those expecting to travel within a few months of “COVID-19 containment” now account for 57% of survey respondents (improved from 49% in September 2020). This is supported by vaccine rollout which indicates that 81% of people will be more likely to travel once vaccinated. And 72% of respondents want to travel as soon as possible after COVID-19 is contained to see friends and family.

There are some headwinds in travel trends. About 84% of travelers will not travel if it involves quarantine at destination. And there are still indications that the pick-up in business travel will take time with 62% of respondents saying they are likely to travel less for business even after the virus is contained. That is, however, a significant improvement from the 72% recorded in September 2020.

“People want to get back to travel, but quarantine is the showstopper. As testing capacity and technology improves and the vaccinated population grows, the conditions for removing quarantine measures are being created. And this points us again towards working with governments for a well-planned re-opening as soon as conditions allow,” said de Juniac.

IATA Travel Pass

  • 89% of respondents believe that governments need to standardize vaccine and testing certificates
  • 80% are encouraged by the prospect of the IATA Travel Pass App and would use it as soon as available
  • 78% will only use a travel credential app if they have full control over their data

Travel health credentials are already opening borders to some countries. IATA believes that such a system needs global standards and the highest level of data security.

The survey produced very encouraging data indicating traveler willingness to use a secure mobile phone app to manage their travel health credentials. Four of five people surveyed would like to use this technology as soon as it becomes available.  They also expect that travel health credentials (vaccine or test certificates) must comply with global standards—a work that is still in progress by governments.

Survey respondents also sent a clear message on the importance of data security.  Some 78% of travelers will not use an app if they are not in full control of their data. And about 60% will not use a travel credential app if data is stored centrally.

“We are designing IATA Travel Pass with the traveler in mind. Passengers keep all the data on their mobile devices, and they remain in full control of where that data goes. There is no central database. While we are making good progress with numerous trials, we are still awaiting the global standards for digital testing and vaccine certificates. Only with global standards and governments accepting them can we maximize efficiency and deliver an optimum travel experience,” said de Juniac.

Alexandre de Juniac’s comments to the media
Air Traveler Response to COVID-19 11-Country Survey details (pdf)
Travel Pass Update presentation (pdf)
Listen to the teleconference (mp4)


Inmarsat & Deutsche Telekom

Milestone highlights the accelerated rollout of Europe’s leading airline connectivity solution with launch customer International Airlines Group (IAG)

The European Aviation Network (EAN), Europe’s fastest inflight Wi-Fi service, can now be accessed by passengers on more than 250 aircraft across the continent, highlighting its accelerated rollout since entering commercial service.

The award-winning connectivity solution has been available to over 20 million passengers to date, traveling on more than 200,000 flights throughout Europe, covering key destinations such as London, Madrid, Barcelona, Geneva and Rome. It is currently available with British Airways, Iberia and Vueling, which are all part of International Airlines Group (IAG).

EAN has been developed by Inmarsat, the world leader in global, mobile satellite communications, and Deutsche Telekom, in partnership with leading European companies such as Thales, Nokia, Airbus, Cobham and Eclipse Technics. It marks a paradigm shift in the airline passenger experience, with incomparable speeds, uninterrupted coverage and significantly lower latency than any other inflight Wi-Fi network in the continent.

Philip Balaam, President of Inmarsat Aviation, said: “EAN has transformed the inflight broadband market in Europe, offering unprecedented performance that has been truly embraced by airlines and their passengers. Usage has consistently increased since it entered commercial service and EAN experienced record data traffic in the summer and autumn months last year, reflecting an even stronger desire to stay connected amongst passengers flying during the COVID-19 pandemic.”

“An important factor in crossing more than 250 aircraft activations, including British Airways’ entire short-haul fleet, has been the record-breaking installation time we have achieved with EAN – less than nine hours per aircraft. This will ensure a smooth rollout on remaining IAG aircraft and we’re excited that even more passengers will soon have access to the industry’s best-in-class inflight connectivity, providing the same quality of broadband that people expect on the ground, from the comfort of their cabin.”

Rolf Nafziger, Senior Vice President at Deutsche Telekom Global Carrier and Global Business, said:EAN is perfectly adapted to Europe’s unique telco infrastructure and a true game-changer in inflight connectivity. For passengers, it offers an unparalleled connectivity experience while in the air above the European continent. For carriers, it provides a highly compelling business case due to its lightweight, small and low maintenance equipment.”

EAN has been designed from scratch specifically for the needs of European aviation, delivering consistent inflight broadband across Europe, one of the world’s most congested airspaces. EAN is highly advanced and its fully integrated system delivers consistent high-speed broadband on flights, enabling passengers to seamlessly browse the internet, stream videos, check social media, enjoy real-time interactive applications such as gaming, and more.


Boeing

The Boeing Company  board of directors announced that Lynne Doughtie has been elected to the board, replacing Caroline Kennedy who has resigned following three years of dedicated service. Doughtie, 58, retired from KPMG in 2020, after serving as U.S. Chairman and CEO since 2015. One of the world’s leading professional services firms, KPMG operates in 147 countries and territories employing more than 219,000 people. She will serve on the Audit and Finance committees. “Lynne Doughtie is a highly-accomplished executive with a demonstrated track record of leading a world-class organization,” said Boeing Chairman Larry Kellner. “She will provide perspective reflecting her global leadership roles and experience advising clients on complex matters as well as significant risk management expertise. We look forward to working with her.”

As the first woman to be elected U.S. Chairman and CEO of KPMG, Doughtie served as a member of KPMG’s Global Board and Executive Committee. Doughtie joined KPMG’s Audit practice in 1985, before serving as the lead partner for several strategic clients across industries and holding leadership roles including Vice Chair of the firm’s U.S. Advisory business. During her tenure, KPMG experienced strong growth and made significant investments in quality and advanced the firm’s culture and values. Doughtie has been recognized by Fortune’s Most Powerful Women, Crain’s New York Business’ 50 Most Powerful Women in New York, Accounting Today’s Top 100 Most Influential People, the National Association of Corporate Directors’ 100 most influential people in the boardroom, and Glassdoor’s list of Top CEOs. “We welcome Lynne Doughtie’s impressive track record of advancing organizational goals through culture and innovation,” said David Calhoun, Boeing President and CEO, and member of the board of directors. “Lynne’s values-based leadership will further strengthen our board.”

“Boeing is a remarkable American company serving a critical role in the global economy,” said Doughtie. “I look forward to joining this distinguished board.” Kennedy, who joined the board in 2017, served as a member of the Audit; Compensation; Finance; and Governance, Nominating and Organization committees. Previously, Kennedy served as U.S. Ambassador to Japan from 2013 to 2017. “On behalf of Boeing and its board of directors, I want to express my gratitude to Ambassador Kennedy for her leadership and exemplary service,” Kellner said. “It’s been a privilege to serve alongside Ambassador Kennedy,” Calhoun said. “I’m grateful not only for her contributions to Boeing, but for her service on behalf of our country.”


Other News

 


AIR ASTANA

Air Astana has received a prestigious Five Star Major Airline award from the Airline Passenger Experience Association (APEX). This is the third time that Air Astana has received a Five Star award from APEX. The awards were presented at the end of a highly successful virtual FTE (Future Travel Experience) APEX event during December 8 and 9th attended by 200 airlines and 200 airports all over the world. (Editor’s Note: Air Astana, the national carrier of Kazakhstan, operates domestic and international flights from hubs in Nur-Sultan and Almaty. The company was incorporated in late 2001 and commenced operations on 15th May 2002. The Air Astana fleet consists of Boeing 767/757, Airbus A320 Family aircraft including A320neo, A321neo and A321LR and Embraer E190 / E190-E2.)

Air Astana became the first carrier from Russia, the Commonwealth of Independent States and Eastern Europe to be awarded the prestigious 4-Star rating by Skytrax at the World Airline Awards in 2012 and was also named ‘The Best Airline in Central Asia and India’ that year. Both achievements were repeated every year through until 2019. Air Astana has also received TripAdvisor Travellers’ Choice Awards in the “Regional Carrier in Asia” and “Passenger Comfort” categories for the past three years and a 5-Star in the “Major Regional Airlines” category from APEX in 2019.


CERTAPET

Recently, the US Department of Transportation released their final ruling regarding service animals on airplanes. A service animal is defined as a dog, regardless of breed or type, that is individually trained to do work or perform tasks for the benefit of a qualified individual with a disability, including a physical, sensory, psychiatric, intellectual, or other mental disability. DOT determined that carriers are not required to recognize emotional support animals (ESA’s) as service animals and may treat them as pets. While the rules may vary carrier to carrier, this means that the protections afforded those with ESA’s will no longer be valid. Instead, they will most likely have to pay a fee to bring their re-classified pet aboard an aircraft.

HOWEVER – the DOT actually made it easier than ever for people to fly with their animals. See the attached infographic for all of the reasons why.


CARLISLE INTERCONNECT TECHNOLOGIES (CIT)

Carlisle Interconnect Technologies (CIT) announced that it has received a patent for its third generation of ARINC 791/792 Adjustable Fittings for existing and emerging aerospace applications. The new patented fittings allow for simple, error-proof, and efficient installation performed using only basic hand tools. The ARINC 791/792 Adjustable Fittings significantly reduce installation compared to traditional methods as they do not require special fixtures or tools, shims, or match drilling.

This new solution is ARINC 791/792-compliant as well as RTCA/DO-160 and original equipment manufacturer (OEM) qualified. Adaptable to existing ARINC 791, these fittings also incorporate ARINC 791/792 slip requirements with z-axis (height) adjustability to support conversion from ARINC 791 to 792 equipment installation. These fittings ensure the lowest possible installation height for electronically steered antenna (ESA) applications, provide z-axis adjustability to account for structure variations, and minimize labor on the line or at the MRO.

“Our team has remained dedicated to providing next-generation solutions that meet current needs and stand up to future challenges, while also improving performance and reducing cost,” said Chris Rawley, Product Line Manager, Aircraft Connectivity Solutions at CarlisleIT. “These new adjustable fittings for ARINC 791/792 systems serve as a certified and proven solution to meet the evolving needs of aircraft developers, withstand harsh and demanding environments, and support innovation across the aerospace industry.”

With more than 80 years’ experience, CarlisleIT has a proven history of meeting customer demands. This new solution represents the company’s innovative approach to satisfying OEM requirements alongside the installation needs of next-generation equipment. To learn more about CarlisleIT’s complete line of System Installation Kit products, visit www.carlisleit.com.


BOEING

Boeing announced a new 10-year agreement with North American carrier Frontier Airlines to implement a range of crew, flight-planning and operations tools to enhance efficiency for the airline. These digital solutions from Boeing’s Jeppesen product range provide fleet-wide cost savings across regional and international routes, enhance airline crew-planning processes and increase operational reliability.

In addition to its digital navigation and charting services from Boeing, Frontier Airlines will use a new Jeppesen digital solutions suite that provides day-of-operations decision-support tools, including:

  • Flight-planning and scheduling services to enhance flight operations and enable on-time departures and efficient routing
  • Crew management, tail assignment and operations-control tools that optimize schedules and aircraft utilization in the short- and long-term planning horizon, including day-of-operation issue detection and schedule recovery to minimize issues due to unexpected events.

“As commercial aviation emerges from the COVID-19 pandemic, Frontier Airlines is poised to continue its exceptional growth, utilizing Boeing’s analytics-powered tools to maximize performance and reduce costs during this critical moment for our industry,” said Ted Colbert, president and CEO of Boeing Global Services. “This is a great example of our partnership with customers like Frontier to turn Boeing’s unparalleled digital expertise into operational bottom-line advantages.”

Frontier Airlines is committed to “Low Fares Done Right.” Headquartered in Denver, the company operates more than 100 aircraft with a route network spanning the U.S., the Caribbean and Mexico. With 160 new planes on order, Frontier will continue to grow to deliver on the mission of providing affordable travel across America.

Also from Boeing:

China Airlines unveiled the first of six Boeing 777 Freighters, officially becoming the 20th operator of the world’s largest and longest range twin-aisle freighter. The 777 Freighter joins the airline amid growing demand for dedicated freighters as operators grapple with the impacts from the COVID-19 pandemic. China Airlines aims to increase its cargo capacity by 15% in 2021 and is planning to launch the 777 Freighter on routes connecting Taipei with North America — a key market with strong demand and escalating yields. An operator of all-Boeing freighter fleet, China Airlines debuted its new 777 Freighter during a ceremony in Taipei to mark the carrier’s 61st anniversary. The airline is set to take five more 777 Freighters as part of an order announced at the 2019 Paris Air Show.

The 777 Freighter is the world’s largest, longest range and most capable twin-engine freighter. The airplane has a range of 9,200 km (4,970 nautical miles) and can carry a maximum payload of 102,010 kg (224,900 lbs). The airplane will allow China Airlines to make fewer stops and reduce associated landing fees on long-haul routes, resulting in the lowest trip cost of any large freighter.

The 747 and 777 freighters, both of which make up China Airlines’ world-class freighter fleet, are capable of carrying tall and outsized cargo loads on 3-meter (10-foot) tall pallets. This common main-deck pallet height capability enables interchangeable pallets, adding to the versatility of both models.

In addition to commercial airplanes, Boeing provides China Airlines with total life cycle support services to streamline parts provisioning and flight and maintenance operations. The entire China Airlines fleet uses Jeppesen FliteDeck Pro, which provides access to digital navigation charts and interactive maps to optimize performance and enhance situational awareness.

China Airlines also recently signed an agreement for Airplane Health Management (AHM), which tracks real-time airplane information, providing data and decision support tools that allow technicians to quickly and correctly resolve maintenance issues. This allows airlines to take proactive actions based on AHM-generated alerts, reducing disruptions to operations and the costs associated with unscheduled maintenance. With the agreement, China Airlines joins more than 100 global customers using the AHM solution.


OTHER NEWS

  • Better get ready for youthful scientists solving problems that we don’t seem to see or understand – TIME’s 2020 Kid of the Year: Meet Gitanjali Rao | Time
  • “On December 4, 2020, Boeing retired two of its long serving chase planes…” This incredible flight history is by a friend and writer, and pilot … and just about everything else – Bob Bogash. Yes, it is very interesting stuff for aviation lovers. Buried within is a story about about an amazing aviation expert, Lockheed designer Kelly Johnson who designed the first chase plane model… – Boeing Chase Airplanes
  • IATA once again has published some good advice “Best Practices for COVID-19 Market Stimulation” and you can read it here: IATA – Best Practices for COVID-19 Market Stimulation

INMARSAT

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

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

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

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

Despite this change, there are early signs that travelers are beginning to feel confident about flying again; almost half (47%) of passengers surveyed expect to feel ready to fly within the next six months.

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

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

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

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

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

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

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

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


CARLISLE IT

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

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

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

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

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


BOEING

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

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

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


GOGO

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

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

GALGUS

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


OTHER NEWS

While the economy seems to be slowly picking up, recent breakouts seem to tell us that a vaccine is the most important thing that can happen – worldwide! But the question is when? Everybody is affected and passenger travel is one of the worst victims. Airlines everywhere are suffering, laying off workers and in the USA future layoffs seem inevitable. For example the following layoffs are what we are hearing if US airlines don’t get any additional funding from the US government: Alaska Airlines said they will be sending out some 1,600 notices soon (4,200 nationwide and it is reported that the majority of these numbers will be from flight attendants); United has 3,900 pilots at risk if assistance is not provided. Furthermore, not long ago they warned some 35,000+ employees of the risk of potential layoffs; and American is looking at some 25,000 furloughs as well. One big question is what the Governments will do for airlines worldwide. More importantly, if a vaccine for COVID-19 is created, how long will it take to get dispersed, and resultantly, how long will it take for the air market to return? One report predicts 2024! Air travel not expected to recover until 2024


GOGO

As part of its continued cost reduction initiatives to align the scale of its organization with current demand for aviation connectivity services, Gogo is eliminating 143 fulltime positions, predominantly from the Company’s Commercial Aviation business.

“As the pandemic continues to impact commercial airline travel, we are taking additional actions as part of our comprehensive 16-lever strategy to reduce costs. Based on our current expectations of the scope and timing of a recovery in the industry and our Commercial Aviation business, reducing our workforce has become a necessary step. We do not take this action lightly, but we believe it is critical in our efforts to preserve our financial flexibility, while maintaining the quality of our service and relationships with our customers,” said Oakleigh Thorne, Gogo’s President and CEO.

The reduction in force will take effect on August 14, 2020, and represents approximately 14% of the Company’s overall workforce. In addition to the reduction in force, Gogo will continue certain furloughs and maintain the salary reductions that were previously implemented. In keeping with the previously announced 16-lever plan to reduce costs, Gogo will continue to pursue non-personnel cost-savings levers, including renegotiating terms with suppliers, delaying aircraft equipment installations, deferring purchases of capital equipment, reducing marketing and travel expenses, and eliminating non-essential spend.


ASTRONICS

Astronics Corporation Reports 2020 Second Quarter Financial Results

  • Sales for the quarter were $123.7 million with bookings of $61.5 million
  • Net loss was $(23.6) million, after goodwill impairment charges of $12.6 million
  • Adjusted EBITDA was $9.2 million, or 7.4% of sales
  • Cash from operations was $18.3 million for the quarter, $41.5 million year-to-date

AIRBUS

AIRBUS had €1.14b net loss in 2Q20 (vs €1.2b profit in 2Q19) on 55% lower revenues; Commercial Aircraft lost €1.9b (vs €1.2b profit) on 65% lower revenues. Employment remains flat from Jan 1.

AIRBUS says commercial aircraft are now being produced at rates under new production plan announced in April; however, it is further dropping A350 rate from six to five per month for now. It adds that 145 commercial aircraft could not be delivered as scheduled in 1H20 due to COVID-19.


BOEING

The company reported second-quarter revenue of $11.8 billion, GAAP loss per share of ($4.20) and core loss per share (non-GAAP)* of ($4.79), primarily reflecting the impacts of COVID-19 and the 737 MAX grounding (Table 1). Boeing recorded operating cash flow of ($5.3) billion.

“We remained focused on the health of our employees and communities while proactively taking action to navigate the unprecedented commercial market impacts from the COVID-19 pandemic,” said Boeing President and Chief Executive Officer Dave Calhoun. “We’re working closely with our customers, suppliers and global partners to manage the challenges to our industry, bridge to recovery and rebuild to be stronger on the other side.”

In the second quarter, Boeing restarted production operations across key sites following temporary pauses to protect its workforce and introduce rigorous new health and safety procedures. Despite the challenges, Boeing continued to deliver across key commercial, defense, space and services programs. The company also resumed early stages of production on the 737 program with a focus on safety, quality and operational excellence. Following the lead of global regulators, Boeing made steady progress toward the safe return to service of the 737, including completion of FAA certification flight tests.

To align to the sharp reduction in commercial market demand in light of COVID-19, the company is taking several actions including further adjusting commercial airplane production rates and reducing employment levels. “The diversity of our balanced portfolio and our government services, defense and space programs provide some critical stability for us in the near-term as we take tough but necessary steps to adapt for new market realities,” Calhoun said. “We are taking the right action to ensure we’re well positioned for the future by strengthening our culture, improving transparency, rebuilding trust and transforming our business to become a better, more sustainable Boeing. Air travel has always proven to be resilient – and so has Boeing.”

The latest Boeing NPRM on the 737-8 and 737-9 (737 MAX) aircraft.

(Editor’s Note: Boeing had $2.4B net loss in the second quarter this year, but less than in 2019 ($2.9B in the same quarter last year) and we note they have $326B backlog. Watch for the B737 to build slower, as well, while the goal will ultimately be some 30 per month. Also, Boeing reports the 747-8 will end in 2022. Further, we expect the company to shut down production of the 787 Dreamliner in Everett because of the slow-down and move existing production to South Carolina, no doubt because of demand and reduced labor costs. Be prepared, there will be more job cuts!)

 


COMING ATTRACTION

Next week we will deliver our readers a report on an amazingly small, incredible sounding BOSE product that you might consider getting for your family as you are all staying at home during COVID-19. And, yes, if you can’t send one of your youngsters to school, you have an audio out.


OTHER

Today’s image is ANA’s A380 with the Orange Honu Livery. It made us smile and thought our readers would enjoy seeing it as well.

PXCOM

PXCom luanches Sanitized Travel-dedicated apps for IFEC platforms. It is a proven fact that keeping the middle seat empty is nonsense both economically speaking and from an overall hygiene standpoint. It has been widely debated over the past few weeks.

However, inflight social distancing can be organized. Once again, PXCom brings to the market evidence that inflight servers can be used far beyond plain entertainment, by launching the In-Cabin Mobility Management (IC2M by PXCom) software suite dedicated to dramatically improve the inflight social distancing.

Such suite is formed of 4 modules that the airline can choose either separately or in a bundle:

  • Toilets Queuing Management to avoid passengers gathered around the restrooms,
  • Overhead bin access regulation to ensure minimum distance as a passenger wants to access to its personal belongings
  • Disembarkation Process, to organize a guaranteed social distance as the passenger leave the aircraft.
  • Muti-chat: Passenger chat to avoid passengers from different rows physically connecting to discuss and also, passenger to cabin crew chat to minimize surface contact.

“Our customers are really excited about these capabilities, as we anticipate a 60% drop down of unmanaged in-cabin movement” states Cyril JEAN, PXCom CEO, “Of course all these digital services are fully customizable in order to integrate each of our customer’s management rules in consistency to its product experience.”

Empty the seat back pocket

Earlier in 2018, Marketplace analyzed over 100 samples on 18 flights, finding mold, staph and potentially harmful pathogens. It is not about proven or non-proven contagion threat; it is all about the trust factor and passenger’s concern for their health and safety.

To respond to this passenger expectation, PXCom has also launched the digitized safety & hygiene card.

Upon his first connection, the passenger is displayed a swipeable safety and hygiene card, in his desired language, which content is directly bound to the aircraft he is seating in. Thanks to PXCom technology, the content of this interactive card is managed from the cloud-based back office and can be updated as often as the hygiene measures evolve, through the media content update process.

At the end of the swipe, the passenger can either acknowledge and be redirected to the homepage of the IFE GUI or jump into the destination airport’s specific hygiene measures.

This innovative offering complements solutions from PXCom that are already flying for inflight mag digitization, interactive meals menu cards and onboard shopping catalog, that are also ancillary revenues generators.

Of course, air regulations still require the safety card to be physically present onboard the aircraft, but thanks to PXCom solution, cabin crew can be informed in real time about which passenger has not been through the card, offering such passenger to be provided with printed copies.

Trust is the new currency

Among the airline community, everybody has been largely informed that flying is still highly secure when it comes to contamination risks whenever passengers and cabin crew wear masks. But beyond the airline professionals, casual passengers are widely frightened by the idea of being contaminated during their flight.

As a result, PXCom Post-Covid solutions not only bring new capabilities for inflight hygiene, but they are also highly valuable assets that help airlines in regaining passenger confidence.

Easy to roll out on the w-IFE/IFC platforms, as any PXCom solutions, these new digital services are compliant with any seatback screens platform.

Definitely, an important differentiating marker in an ever-tougher period.


GOGO

Gogo Business Aviation hit 3,000 daily flights late last week, showing strong signs of recovery from the COVID-19 related single-day low-point of 378 daily flights in mid-April.

“I’m encouraged because we’re seeing several positive trends taking shape in the market,” said Sergio Aguirre, president of Gogo Business Aviation. “We’ve strived to be a good partner with our customers to get through a very difficult time together, and we’re now in the midst of a measurable recovery as flight activity increases.”

Business aviation hit a low point in mid-April when many aircraft owners chose to park their aircraft and 30 percent of Gogo Business Aviation’s accounts chose to reduce their spending through either account suspensions or service-plan downgrades.

Since that time, however, nearly 60 percent of Gogo’s suspended customers have reactivated their service, with approximately 80 percent reverting to their original service plan.

The number of flights flown with active Gogo service onboard has continued to increase, reaching 3,039 flights last Thursday, close to Gogo’s pre-COVID average of 3,500 flights per day. Gogo is actively working with customers to reactivate service quickly as flying activity increases, and installations of new AVANCE L5 and L3 are on the rise.

“I’ve been amazed with the level of productivity and engagement our employees have delivered to help our customers, and the company, get through this unique and challenging time,” Aguirre added. “And from an innovation standpoint, we have several positive developments that will be released in the coming weeks that will make your Gogo inflight experience even better.”


SITA

The global air transport industry is grappling with one of the single biggest challenges it has ever faced: how to recover from a historic decline in air travel, caused by COVID-19. While travel restrictions are starting to ease, and the ATI is beginning to remobilize, no-one knows exactly what the next few months will bring. What is clear, however, is that the industry will need to be able to adapt to a new – and changeable – operating environment; one that requires operators to keep passengers feeling safe and reassured, keep flights to time, and meet sustainability targets – all on a tightened budget.

Digitalization is vital here. Airlines and other businesses are going to need the flexibility, adaptability and automation offered by digital transformation to ride out the pandemic’s fall-out, adjust their business models and succeed into the future. To help them do it, they’ll need the right mix of solutions and expertise on their side – digitalizing to adapt to the needs of the future.

Many airlines are facing restart with a scaled back and more scattered workforce. They are also weighing up a lot of big unknowns: which routes should be reopened and when, depending on country restrictions? How many passengers will return, and how quickly? Which aircraft should fly or be grounded? And what size flight and cabin crew will they need to serve them?

Airlines are facing all these questions, while knowing the rules could change from one day to the next. Digitalizing technologies and innovations enable enhanced air/ground connectivity, communications and operational efficacy, and pool the latest real-time information, to support informed and timely decision-making. These prime resources help airlines flex and adapt to changing needs. While ideally being fast and simple to deploy, and intuitive to use, digital tools can also streamline routine tasks through automation to minimize workload.

Such solutions are very much the remit of SITA FOR AIRCRAFT, SITA’s connected aircraft domain of expertise.
Digitalizing to work smarter and leaner is the key. SITA has developed a suite of connected applications and services, and technological capabilities that help airlines work in this more flexible, adaptive, automated and collaborative way. They help bring enhanced operational- and cost-effectiveness, while giving greater visibility over the ‘live’ nose-to-tail operation – whether that’s around situational weather events or restrictions, identifying the least cost-routing channels available for ACARS messaging, the status of passenger, cargo and aircraft health, or fueling requirements.

With the SITA crew applications, airlines can ensure passenger safety and satisfaction onboard, while alleviating paper-based processes to make flights more sustainable.
Their cabin connectivity solutions, meanwhile, give passengers the low-touch autonomy they desire, enabling them to use their own devices to surf, stream, and pay and verify, contact-free.

And, for all of SITA’s solutions and services, they strive to work closely with customers to develop flexible business models that can readily adapt to reflect needs as they change.
“We’re here to help you through.”

SITA FOR AIRCRAFT is proud to play a part in advancing the flexible, agile solutions that can support their customers through this challenging time. They are 100% dedicated to the industry and its success and are here to help it navigate the right path to recovery.

Find out more by exploring their website.


AIRBUS

Following an extensive two-year flight test program, Airbus  successfully concluded its Autonomous Taxi, Take-Off and Landing (ATTOL) project.In completing this project, Airbus has achieved autonomous taxiing, take-off and landing of a commercial aircraft through fully automatic vision-based flight tests using on-board image recognition technology – a world-first in aviation. In total, over 500 test flights were conducted. Approximately 450 of those flights were dedicated to gathering raw video data, to support and fine tune algorithms, while a series of six test flights, each one including five take-offs and landings per run, were used to test autonomous flight capabilities.

The ATTOL project was initiated by Airbus to explore how autonomous technologies, including the use of machine learning algorithms and automated tools for data labeling, processing and model generation, could help pilots focus less on aircraft operations and more on strategic decision-making and mission management. Airbus is now able to analyze the potential of these technologies for enhancing future aircraft operations, all the while improving aircraft safety, ensuring today’s unprecedented levels are maintained.

Airbus will continue research into the application of autonomous technologies alongside other innovations in areas such as materials, alternative propulsion systems and connectivity. By leveraging these opportunities, Airbus is opening up possibilities for creating new business models that will transform how aircraft are developed, manufactured, flown, powered and serviced.

The rapid development and demonstration of ATTOL’s capabilities was made possible due to a cross-divisional, cross-functional, global team comprising of Airbus engineering and technology teams, Airbus Defence and Space, Acubed (Project Wayfinder), Airbus China and ONERA under the leadership of Airbus UpNext.

Also From Airbus:

Airbus plans to further adapt to COVID-19 environment. Airbus announced plans to adapt its global workforce and resize its commercial aircraft activity in response to the COVID-19 crisis. This adaptation is expected to result in a reduction of around 15,000 positions no later than summer 2021. The information and consultation process with social partners has begun with a view to reaching agreements for implementation starting in autumn 2020.

The commercial aircraft business activity has dropped by close to 40% in recent months as the industry faces an unprecedented crisis. Commercial aircraft production rates have been adapted accordingly. Airbus is grateful for the government support that has enabled the Company to limit these necessary adaptation measures. However with air traffic not expected to recover to pre-COVID levels before 2023 and potentially as late as 2025, Airbus now needs to take additional measures to reflect the post COVID-19 industry outlook.

Following the in-depth analysis of customer demand that has taken place over recent months, Airbus anticipates the need to adapt its global workforce due to COVID-19 by approximately:

● 5,000 positions in France
● 5,100 positions in Germany
● 900 positions in Spain
● 1,700 positions in the UK
● 1,300 positions at Airbus’ other worldwide sites

These figures include the Airbus subsidiaries Stelia in France and Premium AEROTEC in Germany. However, they do not include approximately 900 positions stemming from a pre-COVID-19 identified need to restructure Premium AEROTEC in Germany, which will now be implemented within the frame of this global adaptation plan. The details of this COVID-19 adaptation plan need to be finalized with social partners.
While compulsory actions cannot be ruled out at this stage, Airbus will work with its social partners to limit the impact of this plan by relying on all available social measures, including voluntary departures, early retirement, and long term partial unemployment schemes where appropriate.

“Airbus is facing the gravest crisis this industry has ever experienced,” said Airbus CEO Guillaume Faury. “The measures we have taken so far have enabled us to absorb the initial shock of this global pandemic. Now, we must ensure that we can sustain our enterprise and emerge from the crisis as a healthy, global aerospace leader, adjusting to the overwhelming challenges of our customers. To confront that reality, we must now adopt more far-reaching measures. Our management team and our Board of Directors are fully committed to limiting the social impact of this adaptation. We thank our governmental partners as they help us preserve our expertise and know-how as much as possible and have played an important role in limiting the social impact of this crisis in our industry. The Airbus teams and their skills and competences will enable us to pursue our ambition to pioneer a sustainable future for aerospace.”


OTHER NEWS

What You May Encounter The Next Time You Fly

All of us know that we will experience many changes in the travel process as ‘non-essential’ air travel opens again. But what will it look like? And what are the airports and airlines doing to make the process safer? And is it sustainable over time? These are all questions that we have asked ourselves and have heard voiced from other industry pundits as well. So, let’s take a look at what has been, and or is being, implemented throughout the travel journey in the U.S.A. at this time.

Airports:

The safety, health and well-being of travelers is always a priority at any airport. But with COVID-19 cleaning and disinfecting have certainly been stepped up. For example, at our local airport, Seattle Tacoma International, they have increased the frequency of cleaning with medical-grade products with an emphasis on high-touch areas and over 250 hand sanitizer stations have been added throughout the terminal. The Seattle Port Authority says that they have spent 5,270 hours cleaning and disinfecting each week and have “spritzed, sprayed, and dispensed over 1,010 gallons of hand sanitizer, more than 4,500 ounces of disinfecting spray and 1,135 containers of sanitizer wipes. “And we are certain other airports are following similar safety and disinfecting procedures.

Airports are also working on quickly converting bathrooms that aren’t already touch less to new fixtures for paper towels and automatic soap dispensers, as well as, faucets that are sensor-based and toilets with automatic flush features.

Every two hours the security checkpoints are being cleaned while deep cleaning and sanitizing TSA bins occurring after hours. Airports are also adding electrostatic sprayers that dispense a mist onto surfaces for an even coating of disinfectant that kills germs, such as COVID-19, in an effort to disinfect surfaces more often.

Plastic protective barriers that buffer interactions between travelers and airport employees are also common place, much like what we are experiencing in grocery stores, drug stores, etc.

In an effort to observe social distancing, decals are found on the floor throughout the facility at check-in counters, self-serve kiosks, baggage drop, baggage claim and throughout the TSA process. Travelers are also expected to wear a face covering throughout any touch points, to meet Center for Disease Control (CDC) requirements.

The Gate:

There are decals to remind people to observe 6 feet (2 meters) of social distancing during interactions with customer service representatives and other passengers. Seats in the gate area may be blocked in an effort to adhere to social distancing.  Overhead monitors and screens often contain reminders about this as well. And plastic barriers are in place at customer service desks.

Boarding Procedures:

Currently, many airlines have already started testing new methods of boarding in an effort to reduce the amount of cross passenger contact and observe social distancing.  Passengers are asked to stay seated until their row is announced, and many airlines are boarding in smaller groups, back –to-front.

But compared to the aircraft itself, which has well circulated air as long as the engines are running, the boarding procedure and area is poorly ventilated with passengers in close proximity to one another. Boarding is the riskiest part of air travel right now, at least from a COVID-19 perspective. Just think back to the crowded queue where we have historically been smashed together like sardines at the gate, on the jetway, and en-route to our seat prior to take-off.

There are some deceptively simple solutions that in the long run may change the way we board. Over the years, boarding order has typically started with anyone needing extra assistance (small children, the elderly, etc.), followed by higher status flyers on down to those of us traveling in steerage. It is not only an inefficient and time-consuming process, but it is a stressful one as well. Passengers lined up like they are on a commuter train, bumping into one another, hoisting bags into overhead bins, or walking up and down looking for available bin space is something we have all witnessed and experienced. Let’s face it; this is a COVID-19 droplet cross contamination haven.

In a poorly ventilated area like the jet bridge, packing people in close proximity even while wearing facemasks is a highly risky scenario and is needlessly dicey when there are better ways to accomplish the boarding procedure.

A few changes could include the following: boarding from the back of the aircraft forward; boarding window seats first, followed by the middle seats, then aisle seats. Organizing these sections in small groups in the gate area before sending them down the jetway takes time and space but could definitely lead to a new and improved boarding process. Another scenario that could reduce the number of people each traveler comes into contact with is boarding from both the aircraft nose and the tail of the aircraft, but this has its own set of organizational issues and would require a group of passengers loading from the tarmac via a set of mobile stairs, etc. Whichever changes to the boarding procedure an airline elects to implement there will assuredly be a learning-curve by both the ground crew and the passengers themselves, so it may be a good thing that load factors aren’t too high as these new strategies are put into place.

A total 180-degree approach to carry-on luggage could also make the process far more efficient and reduce the number of touchpoints as well. By promoting and rewarding checked luggage there would be fewer gate-side check-ins, less shifting and shuffling of overhead bags, and a faster loading process overall.

As biometrics become more prevalent the use of scanners to match your face with your identity will further reduce the contact between ground staff and travelers. This will also speed up the process as the amount of time spent fumbling for boarding passes and/or mobile phones will be eliminated. The biometric software needs some tweaks, but it is well on its way as it is already being utilized for some border control entry points.

The Aircraft:

Planes are equipped with hospital-grade HEPA filters that typically remove 99.95% of airborne particulates.

The air flows from the ceiling to the floor and creates completely new air in the cabin 20 to 30 times an hour so the air filtration systems cycle outside air onboard every 3 minutes. If you want more filtered air, be certain to open your personal air vent after you’re seated – that air is filtered for your seat only. Studies have shown that due to the frequency of air circulation, cabin air filtration is comparable to what is found in hospitals.

Airlines are requiring their guests to wear face coverings throughout any touch points and during the flight experience except when consuming food or drink. Most airlines have masks available for passengers in case they don’t have them.  If travelers refuse to wear a face mask they will be denied boarding and, in many cases, given the opportunity to reschedule their flight. Details about these requirements are provided to passengers in their pre-trip communications.

For the time being, some airlines are providing travelers more space and flexibility in order to achieve social distancing onboard by blocking off all middle seats on large aircraft and aisle seats on smaller aircraft.

In the U.S.A. all airline employees and business partners who cannot maintain six feet of social distance during interactions with travelers or co-workers, including pilots, flight attendants, and customer service representatives.

Aircraft Cleaning:

Airlines are continuing to use disinfectants that use high-grade, EPA registered disinfectants to sanitize critical touch points like tray tables, seat belts, overhead bins, armrests and lavatories, etc.

New cleaning techniques and equipment are being implemented by many airlines to reduce the already low risk of onboard transmission often include the following: 1) Electrostatic disinfectant sprayers, which emit a safe, high grade EPA cleaning solution that sanitize the overhead bins, armrests, tray tables, seatbelts, lavatories, etc. 2) between flights, dedicated cleaning crews cover the most critical areas using the high-grade EPA disinfectant. They also clean the pilot/flight attendant spaces. 3) Individual hand sanitizer wipes are available onboard.

With all of the procedures in place, it is beginning to feel like air travel is perhaps safer than it ever has been – at least from a COVID-19 perspective! One thing is for certain, these changes will continue to be tailored over time and they are most likely here to stay for the foreseeable future.


Other News

Honeywell working to protect people returning to work and public places with individual personal protective equipment kits

Phoenix, AZ | June 2, 2020–Honeywell is helping provide a safer and healthier travel experience with new Honeywell Safety Packs designed to better protect airline passengers and crew while flying.

The kits — which come in sealed packets containing gloves, masks and hand wipes — are a part of Honeywell’s comprehensive efforts to help protect people as they return to public spaces and workplaces. These efforts include new technology to detect elevated body temperature, monitor air quality in buildings and determine if people in large groups are social distancing properly. Beyond use for air travel, the Honeywell Safety Packs will also be available for use in office buildings, warehouses, retail stores, sports arenas, schools and other public spaces.

“We strive to provide airlines with products and systems that help keep their passengers and employees safer,” said Mike Madsen, president and CEO, Honeywell Aerospace. “That goal of making safety simple and accessible remains the same, but the solution has evolved. Through collaboration with other Honeywell businesses, we acted quickly to develop a brand-new solution for aircraft hygiene.”

A recent informal survey conducted by Honeywell found that frequent flyers desire personal protective equipment, and that an array of solutions will help give them peace of mind to travel again.

“Health and safety are at the core of everything we do at Honeywell, and we’re bringing new solutions to the market that build on our long legacy of safety innovation,” said Will Lange, president of Honeywell’s personal protective equipment business. “From body temperature monitoring systems powered by artificial intelligence to N95 face masks, we’re helping improve safety for workers and workplaces.”

Honeywell offers two versions of the safety packs for air travel: one for passengers and one for the flight crew. The passenger version is designed for single use and contains latex-free gloves, a safety mask and hand wipes. Kits for crews and airline employees are available for single or longer-term use, with an option for a reusable version that has a mask with interchangeable filters, reusable safety glasses and hand wipes.

Both versions of the safety kits come in resealable bags for easy transportation and are available for airline, cargo and business aviation aircraft. The kits’ packaging can also be branded by the airline.

Honeywell Safety Packs are part of a strategic initiative among Honeywell’s businesses to come together to quickly develop solutions that are helping important sectors of the global economy recover. In addition

to this product family, Honeywell is also developing a full line of products to help airlines manage new protocols for cleaning, screening and social distancing.

From the check-in line to the cockpit, Honeywell’s experience in air travel, spanning components, airport management systems, personal protective equipment and building management technologies, makes it uniquely positioned to craft innovative solutions for the individual needs and challenges of airlines, airports and aircraft operators worldwide. In addition to air travel, across Honeywell, the company offers similar products for buildings, workers, manufacturing, entertainment, health care and supply-chain solutions.

Frequent flyers want more personal protective equipment, technology to improve cabin cleanliness

Phoenix | May 26, 2020–An informal Honeywell (NYSE: HON) survey taken by more than 700 frequent business and personal air travel passengers indicates the types of guidelines and health-related equipment passengers may be looking for while flying during and after the COVID-19 pandemic.

The anonymous online survey showed that a majority of travelers (72%) were more concerned with the environment on an airplane than in an airport (28%). Nearly 60% of respondents cited social distancing as their top priority during travel, while about half of respondents cited air quality (51%) and personal protection equipment such as masks (47%) as top priorities. Passengers’ most-desired safety items during travel were masks, hand sanitizer and alcohol wipes.

Cleanliness validation via technology was by far (60%) the most important way to provide confidence in seating-area-related cleanliness, according to the informal survey. Other considerations included providing cleaning supplies directly to the passenger (23%), followed by being informed and updated by the cabin crew (12%).

“This survey demonstrates that passengers want high-tech solutions to best validate the entire travel experience as it relates to health and safety,” said Kevin Suits, vice president, user experience, Honeywell Aerospace. “Honeywell offers a variety of relevant solutions today that we can bring forward to support travelers. We continue to speak with airline executives and transportation leaders about the types of new products and services that would support their efforts to further clean and monitor the cleanliness of their aircraft. We are quickly bringing to market new offerings that would be a win-win for our industry and all of us who love to fly.”

From an airport perspective, survey respondents were most concerned with the cleanliness of common areas, followed by the ability to social distance and fellow travelers’ use of protective equipment.

This informal and anonymous online survey, captured via SurveyMonkey, had 732 respondents split nearly evenly between North America and Asia, with a small number from elsewhere. The majority, 75%, were ages 25-44. Surveyed travelers fly equally for business and pleasure, mostly on domestic routes.

About Honeywell

Honeywell Aerospace products and services are found on virtually every commercial, defense and space aircraft. The Aerospace business unit builds aircraft engines, cockpit and cabin electronics, wireless connectivity systems, mechanical components and more. Its hardware and software solutions create more fuel-efficient aircraft, more direct and on-time flights and safer skies and airports. For more information, visit www.honeywell.com or follow us at @Honeywell_Aero.

Honeywell (www.honeywell.com) is a Fortune 100 technology company that delivers industry-specific solutions that include aerospace products and services; control technologies for buildings and industry; and performance materials globally. Our technologies help aircraft, buildings, manufacturing plants, supply chains, and workers become more connected to make our world smarter, safer, and more sustainable. For more news and information on Honeywell, please visit www.honeywell.com/newsroom.

In response to COVID-19, procedure changes rolling out nationwide by mid-June

Washington | May 21, 2020– With the Memorial Day holiday weekend kicking off the start of summer, the Transportation Security Administration is preparing a very different travel season given the evolving COVID-19 pandemic. TSA has implemented changes to the security screening process that reduce the potential for cross-contamination at the security checkpoint in an effort to help prevent the spread of COVID-19. TSA has already begun implementation of these changes – with more to be implemented at airport checkpoints nationwide by mid-June.

“In the interest of TSA frontline workers and traveler health, TSA is committed to making prudent changes to our screening processes to limit physical contact and increase physical distance as much as possible,” said TSA Administrator David Pekoske. “We continue to evaluate our security measures with an eye towards making smart, timely decisions benefiting health and safety, as well as the traveler experience.”

Over the past couple of weeks, TSA has experienced a steady growth of travelers coming through airport checkpoints. As procedure changes begin to rollout in the coming weeks, travelers should expect to:

Keep possession of their boarding passes. Instead of handing their boarding pass to a TSA officer at the travel document podium, travelers should now place their boarding pass (paper or electronic) on the boarding pass reader themselves. After scanning, travelers should hold their boarding pass toward the TSA officer to allow the officer to visually inspect it. This change reduces the TSA officer’s need to touch a passenger’s boarding pass thus reducing potential for cross-contamination.

Separate food for X-ray screening. Passengers should place their carry-on food items into a clear plastic bag and place that bag into a bin. Food items often trigger an alarm during the screening process; separating the food from the carry-on bag lessens the likelihood that a TSA officer will need to open the carry-on bag and remove the food items for a closer inspection. This requirement allows social distancing, reduces the TSA officer’s need to touch a person’s container of food and reduces potential for cross-contamination. TSA Precheck members do not need to remove items from their bags.

Pack smart. Passengers should take extra care to ensure that they do not have any prohibited items, such as liquids, gels or aerosols in quantities greater than 3.4 ounces, in their carry-on bags (water bottles, shampoo). In response to COVID-19, TSA is allowing one liquid hand sanitizer container, up to 12 ounces per passenger, in carry-on bags. Passengers are required to remove the hand sanitizer from the carry-on bag before being submitted for X-ray screening. If a bag is found to contain a prohibited item, passengers may be directed to return to the divestiture table outside of security with their carry-on bags to remove the item and dispose of the item. The passenger may also be directed back outside of security to remove, items that should have originally been divested (such as laptops, liquids, gels, and aerosols, and large electronics) and resubmit their property for X-ray screening. By resolving alarms in this manner, TSA officers will need to touch the contents inside a carry-on bag much less frequently, reducing the potential for cross-contamination.

Practice social distancing.  Passengers should allow for social distancing to reduce direct contact between employees and travelers whenever possible without compromising security. Noticeable adjustments leading up to the security checkpoint include, increasing the distance between individuals as they enter the security checkpoint, placing visual reminders of appropriate spacing on checkpoint floors and staggering the use of lanes where feasible. No two airports are alike, so this could look a little different at each airport.

Wear facial protection. TSA officers at checkpoints are now using facial protection. Travelers are encouraged to wear face protection to the checkpoint as well. Please note, however, passengers may need to adjust it during the screening process. Travelers are also encouraged to remove items such as belts, and items from their pockets, like wallets, keys and phones, and put them directly into their carry-on bags instead of into the bins to reduce touch-points during the screening process.

Travelers who have not flown since the pandemic are also likely to notice some other changes. They include:

  • Reduced security lane usage due to the reduction in passenger volume.
  • All TSA officers at checkpoints wearing masks and gloves.
  • TSA officers optionally wearing eye protection and clear plastic face shields at some locations.
  • TSA officers will continue the practice of changing gloves after each pat-down.
  • Plastic shielding installed at many travel document checking podiums, divest, bag search and drop off locations.
  • TSA officers practicing social distancing.
  • Routine cleaning and disinfecting of frequently touched surfaces in the screening checkpoint area.

Many airlines and airports are also providing specific COVID-19 related guidance to travelers; please check with your airline prior to your trip. Travelers are encouraged to arrive at the airport early as COVID-19 has affected staffing and operations across the airport environment. This will allow adequate time for checking bags, completing security screening and getting to the departure gate. Individuals who were traveling in the early months of the pandemic became accustomed to arriving at the security checkpoint shortly before their flight departure time. TSA recommends that travelers no longer do so (or arrive well in advance of their flight) since more people are flying and new procedures such as social distancing have been implemented in airports, potentially adding time to the pre-flight experience.

For more information on the TSA security screening process during the pandemic, visit www.tsa.gov/coronavirus.

If there is one word that aptly describes the future right now it is change. Strangely, the Coronavirus has been on of the biggest drivers we, as change receivers, have seen in recent decades. However, the shift in lifestyle as a result of this pandemic will both facilitate and accelerate some major changes for all of humanity. Frequently, unexpected disruptions result in dynamic shifts that drive both economic and political change, which lead to dramatic lifestyle changes. More importantly, if humanity does not or cannot adjust to a global crisis does it represent an evolutionary step backwards? Over the past 100 – 200 years, we as a species have learned how to quickly address potential changes that threaten our existence, which has resulted in an increased life expectancy, rapid rates of population growth and population density. For example compare the duration of the Bubonic Plague (peaked in Europe between 1347 – 1351 killing an estimated 25 million and still exists today) to the duration of the Spanish Flu pandemic (1918 – 1919 estimated to have infected 500 million or 1/3 of the world’s population and to have killed roughly 50 million). At the time of the Spanish Flu there were no influenza vaccinations. If you read articles that describe the circumstances, conditions and preventative measures taken during the Spanish Flu they could be describing today’s newspaper articles about measures to battle COVID-19: no vaccine to protect against influenza, no antibiotics to battle or treat secondary infections, isolation, quarantine, good personal hygiene, use of disinfectants, limitations on public gatherings, citizens were ordered to wear masks, schools, theaters and businesses were shuttered and bodies piled up in makeshift morgues. Does this all sound eerily familiar?

The first flu vaccine was developed in the 1940s and soldiers fighting in WW11 were the first to receive vaccinations. Today an annual flu shot is widely available. Society no longer panics or is driven into isolation during the annual flu outbreak – even though it kills thousands every year. And COVID-19 will most likely follow the same route. But the real question is how much time will this take and what path do we take in the interim?

In recent days and weeks are are beginning to see what the path forward may look like:

TRAVEL – An increase in LOCALISM is not only obvious during these times, but the question is: What impact on lifestyle and travel will be brought about by the future of medical demands and safety needs? While the value of not being influenced by a neighbor’s health are important where people spend most of their time (home & work), the changes that improve the safety and security of future lifestyle will be part of the future changes. This means your future work and travel may have new baselines and tools. For example, your next job visit just may be designed to give you less time near workers, but improve tools to facilitate better connectivity and communication. Similarly, airplane travel will have to change equivalently. If the demand for “6 foot spacing between humans to prevent contagion” is a passenger demand, the price of travel and the design of the aircraft interiors will probably have to change. The other change will be the printed materials in the seatback pocket: the safety brochures and the magazines are touch points that are impossible to clean and harbor germs and bacteria – in other words: high cross contamination points. These items will need to be quickly migrated to electronic formats. Additionally, it wouldn’t be a surprise to see seat fabrics that are antibacterial and easier to clean than the cloth fabrics of many aircraft seats in today’s jetliners. Passengers may well demand and/or expect many of these safety measures to be put into place in the near term.

IFE – And while we are on aircraft travel, IFE and entertainment solutions will probably have to change as well. For example, embedded IFE systems with touch screens or control PCUs will need to be better sanitized between each flight segment – this will take time. Moving forward to next generation systems, the industry may look toward voice or motion control options instead of touch screens or PCUs, making for quicker plane sanitization and less contact points between airline customers. No doubt, inflight entertainment itself will need to be refocused to deliver subject matter to meet new requirements of passenger desire and need, content that matches on-ground entertainment competition, increase subject matter that focuses on health related communication, travel focus on new/safe travel destinations, and on and on. Finally, as travelers carry better audio/video quality delivery devices on products like personal computers and entertainment hardware, aircraft entertainment and communication hardware and content will probably eventually need to be improved to compete – but our industry has been talking about this for years. In the near and long term, this will also increase the demand for wireless inflight entertainment systems transmitted to passengers’ own electronic devices (streaming content, safety briefings, etc.).

COMMUNICATION – And while we are discussing IFEC, airlines will, no doubt, see a need for improved communication and relationship requirements with travelers. Why? As passenger interaction with their family and audio/video connectivity increases, the other world of interaction with airline ticketing, airport cost and experiences, crew interaction and aircraft interfaces will need some adjustments. Change to make the experience better, more helpful, and a better interface with lifestyle based on the impact of COVID-19 issues – and it certainly needs to be safer to use. Who knows, localism just may be the best and safe solution for travel needs in the short term? Also, there is much talk about the need for contact tracing and retaining that information for upwards of 30 days. From an airline perspective, this is where AI and Big Data need to come into play. For the past few years our industry has been addressing the concept of the seamless travel experience, where a passenger will be able to use whichever frequent flyer portal they prefer across alliance members. The resident IFEC systems would be able to recognize that traveler, know there preferences, etc. This type of connection with the passenger before, during and after the flight has the potential for greatly facilitating the requirements of contact tracing.

TRAVELER NEEDS -Presently, what the traveler needs most is confidence and assurance that the travel process is as safe as it possibly can be from a health safety standpoint. The airports, airlines and possibly the hotels need to work in tandem to increase their processes and communication to build back the travel industry. The need for clear requirements regarding the traveling public need to be established: temperature tests, immunity cards, airport procedures, etc. Communication regarding the sanitization efforts both on the ground and in the plane: what is being done to assure the health of those that are traveling. An increase in the number of self-check-in kiosks, as well as, self bag drops, are required. Also, baggage claim needs a procedure to allow for social distancing and a luggage sanitization process – we all know what a zoo this process currently can be! Boarding procedures, mask wearing, etc. all need to be communicated and it would be most helpful if there were some consistency across the airlines and airports on a global scale. The more consistent and familiar the process is for the passenger the quicker the build up of the industry will be.

TRAVELER RISK AVERSION: Some airlines, like Lufthansa, are promoting bookings through December 31, 2020 by offering the ability for travelers to change their ticket one time with no change fee regardless of class of service or ticket type. The rescheduled travel must be for the same route and be completed in 2021. This offer provides the traveler with some assurance that their money wont be wasted if there is a 2nd wave, etc. We expect other airlines to take this route as well.

Lastly, let me finish by saying that the path forward for the airline industry will only be successful through knowing your passenger demographic and better communication with that passenger. This also applies to the IFEC supplier and airline relationship as well. As always, communication is the key!


SITA (this week’s image)

SITA has stepped up its commitment to developing a permanent digital identity for air travel by becoming a Premium Donor of the Sovrin Foundation, the international non-profit organization focused on the advancement of self-sovereign digital identity.

The Sovrin Foundation is a decentralized, global public utility for self-sovereign identity. Self-sovereign means a lifetime portable identity for any person, organization, or thing that allows the holder to present verifiable credentials in a privacy-protecting way. These credentials can represent things as diverse as a passport, an airline ticket or simply a library card.  SITA’s expanded role is key to speeding up the development of a permanent digital identity accepted by governments, airlines or airports globally for use during air travel yet ensuring privacy and protection of the user’s digital identity.

SITA has successfully deployed its Smart Path technology at airports to streamline the departure process through the use of a single biometric token, where a passenger’s face is their passport at each step of the journey across an individual airport – from check-in to boarding. However, the shift in focus in the next few years will see Smart Path integrated with self-sovereign identity, controlled by the individual and usable across governments, airports and airlines, streamlining the travel process even further.

Gustavo Pina, Director of the SITA Lab, said: “We expect in the coming years that the development of a universally accepted digital identity will replace the traditional passport. This will allow travel across borders with any airline or airport while ensuring that you, as the passenger, remain in full control of your identity while providing actionable, trusted data only to appropriate parties such as border agencies.”

“The benefits include a reduced arrivals infrastructure, providing new opportunities to increase existing airport throughput by design and not expansion. Our work with the Sovrin Foundation will play an important role in unlocking that potential.”

Having joined the Foundation as a Founding Steward in 2018, SITA will now take a more active role in supporting Sovrin in the global adoption of self-sovereign identity.

Phil Windley, Chairman of the Sovrin Foundation Board of Trustees, said: “SITA continues to lead the discussion around the adoption of self-sovereign identity in the travel industry. The Sovrin Foundation provides the ideal forum to drive this agenda forward both with the fellow Sovrin Foundation members across the wider economic spectrum but also with key stakeholders in the air transport industry such as IATA, ICAO and Airport Council International.

The Sovrin Foundation seeks to transform the current broken online identity system which is open to misuse and fraud. Using self-sovereign identities could lead to lower financial transaction costs, protect people’s personal information, limit opportunity for cybercrime, and simplify identity challenges in a variety of fields including travel, healthcare, banking, IoT and voter fraud.

In addition to its engagement with the Sovrin Foundation, SITA is working with governments, airlines and airports to develop and deliver the benefits of travel using a permanent digital identity.


Panasonic

Panasonic Avionics Corporation (Panasonic) has been selected by Virgin Orbit to provide inflight connectivity for its airborne rocket launch platform. Panasonic’s latest generation high speed inflight connectivity system has been installed on Cosmic Girl, the modified Boeing 747-400 that serves as the carrier aircraft for Virgin Orbit’s LauncherOne system. Virgin Orbit is currently undergoing final rehearsals for an orbital launch demonstration expected soon.

The inflight connectivity service will enable Virgin Orbit to monitor the health of the launch system over land and sea. The high bandwidth capacity of Panasonic’s connectivity network will ensure Virgin Orbit’s mission control center can quickly and easily communicate with the rocket prior to launch.

Ken Sain, Chief Executive Officer of Panasonic Avionics Corporation, says, “Virgin Orbit is set to deliver an exciting step forward in satellite launching technology, and we are thrilled to support their vision with our inflight connectivity.”

“Panasonic Avionics’ proven inflight connectivity services are used by airlines around the world to provide operational connectivity for not just passengers, but aircraft and their systems, and we look forward to supporting Virgin Orbit by providing a critical live link between air and ground.”

Virgin Orbit builds and operates the most flexible and responsive satellite launcher ever invented: LauncherOne, a dedicated launch service for commercial and government-built small satellites.

LauncherOne rockets are designed and manufactured in Long Beach, California, and will be air-launched from Virgin Orbit’s modified Boeing 747-400 carrier aircraft – allowing it to operate from locations all over the world in order to best serve each customer’s needs.

“We designed LauncherOne to be more mobile and flexible than any other platform out there, and that’s required us to implement innovative, cutting-edge solutions throughout the system. We’re grateful to Panasonic Avionics for their support — helping us keep eyes on our flight crew, Cosmic Girl, and the rocket as we fly out to our launch point. We’re certainly looking forward to having this technology in action during our upcoming launch demo,” said Virgin Orbit CEO Dan Hart.


Other News

  • A total of 106 destinations will be flown to in June 
  • Mallorca, Sylt and Crete back in the program
  • “Great desire and longing of people to travel again,” says Harry Hohmeister

Germany | May 8, 2020– Starting in June, Lufthansa, Eurowings and SWISS will be offering monthly restart schedules to significantly more destinations in Germany and Europe than in the past few weeks. The repatriation schedules will thus end on 31 May.

A total of 80 aircraft will be reactivated with the “June timetable”. This means that a total of 106 destinations can be served in the coming month. From 1 June, 160 aircraft will be in service with the Group’s passenger airlines. The previously valid repatriation flight schedule was calculated to be flown with only 80 aircraft.

The Lufthansa Group’s airlines are thus responding to the growing interest of customers in air travel, following the gradual easing of restrictions and limitations in the German federal states and entry regulations of other countries in Europe.

“We sense a great desire and longing among people to travel again. Hotels and restaurants are slowly opening, and visits to friends and family are in some cases being allowed again. With all due caution, we are now making it possible for people to catch up and experience what they had to do without for a long time. It goes without saying that the safety and health of our guests and employees are of the highest priority,” says Harry Hohmeister, Member of the Executive Board of German Lufthansa AG.

Geneva | April 7, 2020– The International Air Transport Association has released  new analysis showing that some 25 million jobs are at risk of disappearing with plummeting demand for air travel amid the COVID-19 crisis.

Globally, the livelihoods of some 65.5 million people are dependent on the aviation industry, including sectors such as travel and tourism. Among these are 2.7 million airlines jobs. In a scenario of severe travel restrictions lasting for three months, IATA research calculates that 25 million jobs in aviation and related sectors are endangered across the world:

  • 11.2 million jobs in Asia-Pacific
  • 5.6 million jobs in Europe
  • 2.9 million jobs in Latin America
  • 2.0 million jobs in North America
  • 2.0 million jobs in Africa
  • 0.9 million jobs in the Middle East

In the same scenario, airlines are expected to see full year passenger revenues fall by $252 billion (-44%) in 2020 compared to 2019. The second quarter is the most critical with demand falling 70% at its worst point, and airlines burning through $61 billion in cash.

Airlines are calling on governments to provide immediate financial aid to help airlines to remain viable businesses able to lead the recovery when the pandemic is contained. Specifically, IATA calls for:

  • Direct financial support
  • Loans, loan guarantees and support for the corporate bond market
  • Tax relief

“There are no words to adequately describe the devastating impact of COVID-19 on the airline industry. And the economic pain will be shared by 25 million people who work in jobs dependent upon airlines. Airlines must be viable businesses so that they can lead the recovery when the pandemic is contained. A lifeline to the airlines now is critical,” said Alexandre de Juniac, IATA’s Director General and CEO.

Looking Ahead: Re-booting the Industry

Alongside vital financial relief, the industry will also need careful planning and coordination to ensure that airlines are ready when the pandemic is contained.

“We have never shuttered the industry on this scale before. Consequently, we have no experience in starting it up. It will be complicated. At the practical level, we will need contingencies for licenses and certifications that have expired. We will have to adapt operations and processes to avoid reinfections via imported cases. And we must find a predictable and efficient approach to managing travel restrictions which need to be lifted before we can get back to work. These are just some of the major tasks that are ahead of us. And to be successful, industry and government must be aligned and working together,” said de Juniac.

IATA is scoping a comprehensive approach to re-booting the industry when governments and public health authorities allow. A multi-stakeholder approach will be essential. One initial step is a series of virtual meetings—or summits—on a regional basis, bringing together governments and industry stakeholders. The main objectives will be:

  • Understanding what is needed to re-open closed borders, and
  • Agreeing solutions that can be operationalized and scaled efficiently

“We are not expecting to re-start the same industry that we closed a few weeks ago. Airlines will still connect the world. And we will do that through a variety of business models. But the industry processes will need to adapt. We must get on with this work quickly. We don’t want to repeat the mistakes made after 9.11 when many new processes were imposed in an uncoordinated way. We ended up with a mess of measures that we are still sorting out today. The 25 million people whose jobs are at risk by this crisis will depend on an efficient re-start of the industry,” said de Juniac.

Summit dates are being confirmed in the expectation of a start before the end of April.

Geneva | April 2, 2020–The International Air Transport Association (IATA) announced global passenger traffic data for February 2020 showing that demand (measured in total revenue passenger kilometers or RPKs) fell 14.1% compared to February 2019. This was the steepest decline in traffic since 9.11 and reflected collapsing domestic travel in China and sharply falling international demand to/from and within the Asia-Pacific region, owing to the spreading COVID-19 virus and government-imposed travel restrictions. February capacity (available seat kilometers or ASKs) fell 8.7% as airlines scrambled to trim capacity in line with plunging traffic, and load factor fell 4.8 percentage points to 75.9%.

“Airlines were hit by a sledgehammer called COVID-19 in February. Borders were closed in an effort to stop the spread of the virus. And the impact on aviation has left airlines with little to do except cut costs and take emergency measures in an attempt to survive in these extraordinary circumstances. The 14.1% global fall in demand is severe, but for carriers in Asia-Pacific the drop was 41%. And it has only grown worse. Without a doubt this is the biggest crisis that the industry has ever faced,” said Alexandre de Juniac, IATA’s Director General and CEO.

International Passenger Markets

February international passenger demand fell 10.1% compared to February 2019, the worst outcome since the 2003 SARS outbreak and a reversal from the 2.6% traffic increase recorded in January. Europe and Middle East were the only regions to see a year-over-year traffic rise. Capacity fell 5.0%, and load factor plunged 4.2 percentage points to 75.3%.

Asia-Pacific airlines’ February traffic plummeted 30.4% compared to the year-ago period, steeply reversing a 3.0% gain recorded in January. Capacity fell 16.9% and load factor collapsed to 67.9%, a 13.2-percentage point drop compared to February 2019.

European carriers’ February demand was virtually flat compared to a year ago (+0.2%), the region’s weakest performance in a decade. The slowdown was driven by routes to/from Asia, where the growth rate slowed by 25 percentage points in February, versus January. Demand  in markets within Europe performed solidly despite some initial flight suspensions on the routes to/from Italy. However, March data will reflect the impact of the spread of the virus across Europe and the related disruptions to travel. February capacity rose 0.7%, and load factor slipped 0.4 percentage point to 82.0%, which was the highest among regions.

Middle Eastern airlines posted a 1.6% traffic increase in February, a slowdown from the 5.3% year-over-year growth reported in January largely owing to a slowdown on Middle East-Asia-Pacific routes. Capacity increased by 1.3%, and load factor edged up 0.2 percentage point to 72.6%. 

North American carriers had a 2.8% traffic decline in February, reversing a 2.9% gain in January, as international entry restrictions hit home and volumes on Asia-North America routes plunged 30%. Capacity fell 1.5%, and load factor dropped 1.0 percentage point to 77.7%.

Latin American airlines experienced a 0.4% demand drop in February compared to the same month last year. This actually was an improvement over the 3.5% decline recorded in January. However, the spread of the virus and resulting travel restrictions will be reflected in March results. Capacity also fell 0.4% and load factor was flat compared to February 2019 at 81.3%.

African airlines’ traffic slipped 1.1% in February, versus a 5.6% traffic increase recorded in January and the weakest outcome since 2015. The decline was driven by around a 35% year-on-year traffic fall in the Africa-Asia market. Capacity rose 4.8%, however, and load factor sagged 3.9 percentage points to 65.7%, lowest among regions.

Domestic Passenger Markets

Demand for domestic travel dropped 20.9% in February compared to February 2019, as Chinese domestic market collapsed in the face of the government lockdown. Domestic capacity fell 15.1% and load factor dropped 5.6 percentage points to 77.0%.

Chinese airlines’ domestic traffic fell 83.6% in February, the worst outcome since IATA began tracking the market in 2000. With the easing of some restrictions on internal travel in March, domestic demand is showing some tentative signs of improvement.

US airlines enjoyed one of their strongest months in February, as domestic traffic jumped 10.1%. Demand fell  toward the end of the month, however, with the full impact of COVID-19 expected to show in March results.

The Bottom Line

“This is aviation’s darkest hour and it is difficult to see a sunrise ahead unless governments do more to support the industry through this unprecedented global crisis. We are grateful to those that have stepped up with relief measures, but many more need to do so. Our most recent analysis shows that airlines may burn through $61 billion of their cash reserves during the second quarter ending 30 June 2020. This includes $35 billion in sold-but-unused tickets as a result of massive flight cancellations owing to government-imposed travel restrictions. We welcome the actions of those regulators who have relaxed rules so as to permit airlines to issue travel vouchers in lieu of refunds for unused tickets; and we urge others to do the same. Air transport will play a much-needed role in supporting the inevitable recovery. But without additional government action today, the industry will not be in a position to help when skies are brighter tomorrow,” said de Juniac.

Read the full report for February 2020 (pdf)

Today’s Rectangle: AirFly Pro


PUBLISHER’S NOTE

Times are tough! Depression just may be around the corner. Read this: Deutsche Bank Economists forecast “severe recession” due to Covid-19 – Newsroom And as of Saturday, 3/21/20, the US numbers jumped up. Confirmed Coronavirus Cases Are Growing Faster In The United States Than Any Other Country In The World  I guess the message here is: As this virus grows, airline and travel news will dwindle, so IFEC news just might be a bit reduced!

The Farnborough Airshow – this year’s largest aerospace expo and a showcase for tens of billions of dollars of business deals – has become the latest major event to be canceled because of the coronavirus crisis, organizers said last week.

Editor’s Note: To give you an idea of how exposed the airline industry is to the impact of Coronavirus, the folks at Moodys Investor Service categorized it a 100% – the biggest exposure to financial risk!


AIRFLY

Despite the current state of air travel, we thought it might be  time to present an article about wireless earphone solutions for travel. The product for review is from the folks at AirFly – a Bluetooth wireless transmitter/receiver for your wireless entertainment earphones, in the case of the Pro version, a device that will receive Bt audio entertainment from an iPod/iPhone/or most Bt enabled devices and send it to a receiver/amplifier in your car, train, plane, or whatever mode of transport you choose.

This is an incredible product that amazed us with quality, small size (57 mm x 25.5 mm x 11 mm & weighs 15.5 grams – about the size of a pack of chewing gum), long life battery and a lot of functionality. Our product review should not only give you an idea about the value of the AirFly Pro, but IFExress feels this is the missing link between wireless headphones and wired headphone jacks because it it creates the wireless Bluetooth link between the audio source and your wireless earbuds or headphones on airplanes. We note, that there are Bt audio jacks being supplied in the industry (IFPL’s is a great product), but not all aircraft have it installed, especially the older jetliners that have not been recently refurbished.

AirFly offers four product variations:  AirFly Classic (one headphone), AirFly Duo (2 headphones & USB-C), AirFly USB-C (2 headphones & charges via USB-C with pass through power), and AirFly Pro (connects 2 headphones & has a receive mode that provides audio input to a device like a car radio). We tested the Pro and it delivered audio to two Bluetooth headsets – like it would do in an airplane; you and your seat mate could hear the same audio. Check out their website if you have questions or want to see more data on this clever product – AirFly Pro | Bluetooth transmitter connects wireless headphones to wired audio jacks – Twelve South Here’s how works:

  1. Be sure to charge the AirFly Pro module before you leave on a trip via a USB charge jack in the back. The company says you will be able to get some 16 hours of use out of it so virtually all of your flights will be supported.
  2. Setting up the device with your earphones or headphones is easy. We plugged in the AirFly jack to our signal source (iPod) and when we figured out how to put our Bose earphones in the “connect” mode the earphones and the AirFly paired immediately with a fixed light on each when connected. You will be surprised at the quality – it sounds as good as your earphones can deliver.
  3. So, when the movie begins on your next long flight, plug AirFly Pro into your seat’s headphone jack to listen to the movie with whichever premium noise cancelling wireless headphones you employ.

The company lists some of the usable headphones on their website (and there are a lot) but it worked with every Bt stereo headphone we tested. We need to also say the audio was really unbelievable and now we can take that hike with the iPod, without the wires – smooth! We also tried sending a Bt signal from our iPod with music on it through the device when it was plugged into the car radio input port – and it was great. Also, the unit can operate while charging if plugged into the USB power connection.

Lastly, we contacted AirFly and we asked their Marketing Director, Marlee Luttrell if the device was universal, and she said: “Absolutely! AirFly can pair any device with a 3.5m audio jack to almost any Bluetooth-enabled headphones (even hearing aids!). There are so many uses for AirFly beyond in-flight entertainment. A few of my favorites:- plugging into an amp or record player audio jack to listen to your guitar or records wirelessly- pairing Bluetooth-enabled hearing aids with your TV- Listen to your Nintendo Switch with your wireless headphones”

Beyond the auto or airline application this great little invention can be used in the gym, used in gaming, or on your boat. We even tried a wireless remote speaker and the sound was great!

Editor’s Note: Here is what might be happening to Bluetooth Audio – Bluetooth’s LE Audio allows better audio quality, hearing aid support – CNET


AIRBUS

Airbus SE announced that it expects production and assembly work to partially resume in France and Spain on Monday, 23 March following health and safety checks after the implementation of stringent measures. In addition, the Company is supporting efforts globally to tackle the COVID-19 crisis.

Airbus has carried out extensive work in coordination with its social partners to ensure the health and safety of its employees, while securing business continuity. The implementation of these measures required a temporary pause in production and assembly activities at the French and Spanish sites for a period of four days. Work stations will only re-open if they comply with the new health and safety measures in terms of hygiene, cleaning and self-distancing while improving the efficiency of operations under new working conditions.

The same measures are being deployed across all other sites without full interruption.

For other non-production activities globally, Airbus continues to support home-working where possible. Some employees will be asked to return to support business continuity following the implementation of these new measures. In February, the Airbus Final Assembly Line in Tianjin, China, reopened following a temporary production stoppage related to the coronavirus outbreak and is now operating efficiently.
Airbus is supporting those in the health, emergency and public services that rely on its aircraft, helicopters, satellites and services to accomplish their critical missions. In addition, in the past days, the Company has donated thousands of face masks to hospitals and public services around Europe and has started to use its test aircraft to obtain larger quantities from suppliers in China. A first flight with a test A330-800 aircraft has this weekend transported approximately 2 million masks from Tianjin back to Europe, of which the large majority will be donated to the Spanish and French authorities. Additional flights are planned to take place in the coming days.

  • “Health and safety is our number one priority at Airbus so the work stations at our sites in France and Spain will only re-open if they meet the required standards. I’d like to salute the strong commitment from our employees to ensure business continuity in close cooperation with our social partners and other stakeholders. At the same time we are doing all we can to support those on the frontline to fight the coronavirus and limit its spread. We try to live up to our values, humbled by the complexity of the situation, and contribute as much as we can to society in these very difficult times,” said Airbus Chief Executive Officer Guillaume Faury.

Airbus is committed to ensuring the health and safety of its people while maintaining delivery capability for its products and services to its customers

Also, Airbus SE announced measures to bolster its liquidity and balance sheet in response to the COVID-19 pandemic as it continues to assess the ongoing situation and the impact on its business, customers, suppliers and the industry as a whole.

Reflecting the Company’s prudent balance sheet policy and to ensure financial flexibility, Airbus’ management has received approval from the Board of Directors to: secure a new credit facility amounting to 15 billion Euro in addition to the existing 3 billion euro revolving credit facility; withdraw the 2019 dividend proposal of  1.80 euro per share with an overall cash value of approximately 1.4 billion euro; and suspend the voluntary top up in pension funding. Given the limited visibility due to the evolving COVID-19 situation, the 2020 guidance is withdrawn. Operational scenarios, including measures to minimize cash requirements, have been identified and will be activated depending on the further development of the pandemic.

With these decisions, the Company has significant liquidity available to cope with additional cash requirements related to the coronavirus. Liquidity resources previously standing at approximately 20 billion euro, comprising around 12 billion euro in financial assets at hand and around 8 billion euro in undrawn credit lines, were further bolstered by converting an existing 5 billion euro credit line into a new facility amounting to 15 billion euro. Available liquidity now amounts to approximately 30 billion euro.

By maintaining production, managing its resilient backlog, supporting its customers and securing financial flexibility for its operations, Airbus intends to secure business continuity for itself even in a protracted crisis. Safe and efficient air travel is a key backbone of global economic development and cultural exchange. Airbus therefore highly welcomes governmental efforts around the globe to stabilize this industry by supporting the financial health of its airline customers and its suppliers. Airbus continues to monitor the overall health of the industry.

Airbus has convened its 2020 Annual General Meeting in Amsterdam on 16 April. Due to the global outbreak of COVID-19, Airbus discourages physical attendance and strongly encourages shareholders to vote by proxy in line with public health and safety measures.


BOEING

Boeing announced several decisions to support the company as it navigates through the COVID-19 pandemic while ensuring the company is positioned for the industry’s recovery. Decisions include:

  • CEO Dave Calhoun and Board Chairman Larry Kellner will forgo all pay until the end of the year.
  • The company will suspend its dividend until further notice.
  • Boeing will extend its pause of any share repurchasing until further notice. The company previously suspended its stock buyback program in April of 2019.
  • Boeing is drawing on all of its resources to sustain operations, support its workforce and customers, and maintain supply chain continuity through the COVID-19 crisis and for the long term.

Boeing announced a temporary suspension of production operations at its Puget Sound area facilities in light of the state of emergency in Washington state and the company’s continuous assessment of the accelerating spread of the coronavirus in the region. These actions are being taken to ensure the well-being of employees, their families and the local community, and will include an orderly shutdown consistent with the requirements of its customers. Boeing plans to begin reducing production activity today and projects the suspension of such operations to begin on Wednesday, March 25, at sites across the Puget Sound area. The suspension of production operations will last 14 days, during which Boeing will continue to monitor government guidance and actions on COVID-19 and its associated impacts on all company operations. During this time, we will be conducting additional deep cleaning activities at impacted sites and establishing rigorous criteria for return to work.
“This necessary step protects our employees and the communities where they work and live,” said Boeing President and CEO Dave Calhoun. “We continue to work closely with public health officials, and we’re in contact with our customers, suppliers and other stakeholders who are affected by this temporary suspension. We regret the difficulty this will cause them, as well as our employees, but it’s vital to maintain health and safety for all those who support our products and services, and to assist in the national effort to combat the spread of COVID-19,” Calhoun added.

Production employees should continue to report for their assigned shifts today and will receive guidance on their role in the suspension shutdown process. Puget Sound area-based employees who can work from home will continue to do so. Those who cannot work remotely will receive paid leave for the initial 10 working days of the suspension – double the company policy – which will provide coverage for the 14 calendar day suspension period.

“We will keep our employees, customers and supply chain top of mind as we continue to assess the evolving situation,” Calhoun said. “This is an unprecedented time for organizations and communities across the globe.”
When the suspension is lifted, Boeing will take an orderly approach to restarting production with a focus on safety, quality and meeting customer commitments. This will be a key step to enabling the aerospace sector to bridge to recovery. Boeing is working to minimize this suspension’s impact on the company’s ability to deliver and support its defense and space programs, and ensure the readiness of our defense customers to perform their vital missions. Boeing will work closely with those customers in the coming days to develop plans that ensure customers are supported throughout this period. Critical distribution operations in support of airline, government, and maintenance, repair and overhaul (MRO) customers will continue.


OTHER NEWS

London | January 24, 2020–Technavio has been monitoring the global travel technologies market and it is poised to grow by USD 6.4 billion during 2019-2023, progressing at a CAGR of 9% during the forecast period. The report offers an up-to-date analysis regarding the current market scenario, latest trends and drivers, and the overall market environment.

Adoption of robotic process automation (RPA) has been instrumental in driving the growth of the market. Request a free sample report

Travel Technologies Market 2019-2023: Segmentation

Travel Technologies Market is segmented as below:

Product

  • GDS
  • Airline and hospitality IT Solutions

Geographic Segmentation

  • Americas
  • APAC
  • EMEA

To learn more about the global trends impacting the future of market research, download a free sample: https://www.technavio.com/talk-to-us?report=IRTNTR30318

Travel Technologies Market 2019-2023: Scope

Technavio presents a detailed picture of the market by the way of study, synthesis, and summation of data from multiple sources. Our travel technologies market report covers the following areas:

  • Travel Technologies Market size
  • Travel Technologies Market trends
  • Travel Technologies Market industry analysis

This study identifies widening application of AI in the Travel Industry as one of the prime reasons driving the travel technologies market growth during the next few years.

Travel Technologies Market 2019-2023: Vendor Analysis

We provide a detailed analysis of around 25 vendors operating in the travel technologies market, including some of the vendors such as Amadeus IT Group, Dolphins Dynamics, Expedia, Sabre and Travelport. Backed with competitive intelligence and benchmarking, our research reports on the travel technologies market are designed to provide entry support, customer profile and M&As as well as go-to-market strategy support.

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Travel Technologies Market 2019-2023: Key Highlights

  • CAGR of the market during the forecast period 2019-2023
  • Detailed information on factors that will assist travel technologies market growth during the next five years
  • Estimation of the travel technologies market size and its contribution to the parent market
  • Predictions on upcoming trends and changes in consumer behavior
  • The growth of the travel technologies market
  • Analysis of the market’s competitive landscape and detailed information on vendors
  • Comprehensive details of factors that will challenge the growth of travel technologies market vendors

Tourist interest in sporting events in new markets is increasing rapidly and Sports Events 365 has signed agreements with incoming travel operators in order to tap into the huge potential.

November 19, 2019–Sports Events 365 (www.sportsevents365.com), the provider of tickets for sports and music events worldwide, is expanding its reach beyond the company’s traditional markets to encompass countries where there is growing interest of tourists in sporting events. At the recent World Travel Market in London in early November Sports Events 365 signed agreements with incoming travel operators that represent around 20 different countries in Latin America, Europe, the Middle East and North Africa. The countries include Brazil, Argentina, Mexico, Croatia, Greece, the three Baltic states, Slovenia, Qatar and Morocco. The entry into these new markets is part of the company’s ongoing expansion beyond its main 11 traditional markets: the U.S., Spain, Italy, France, Britain, the Netherlands, Germany, Portugal, Russia, Turkey and Serbia.

“There is growing interest by tourists to take in a football match or other sporting events in countries that are outside of our traditional markets,” said Sefi Donner, founder and CEO of Sports Events 365. He noted that countries like Argentina, Brazil, and Croatia, which have produced some of the world’s top players like Lionel Messi, Sergio Aguero, Neymar, Roberto Firmino and Luka Modric, have witnessed a sharp increase in demand by tourists to attend matches. This is also the case with other countries taking part in the Champions and Europa Leagues matches.

The new markets are expected to make a substantial contribution to the company already in 2020. “We’re looking for increased sales next year and a further expansion going forward,” predicted Donner. In addition to football, there is interest in basketball and tennis matches in these new markets.