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DEPARTMENTS 6 | Feedback 14 | Inside Business LauncherOne’s rocket engine burned 8 | Who’s Where Aviation briefly as the Boeing 747 carrier 64 | Classified aircraft, Cosmic Girl, banked sharply 10-11 | First Take 62 65 | Contact Us away following vehicle release. 12 | Up Front 65 | Aerospace 13 | Going Concerns Calendar
DEFENSE PROPULSION 30 | SOCOM reveals deployment of 48 | MagniX and AeroTEC electrify FEATURES Slovenian-made UAS workhorse Caravan 24 | Certification Changes 31 | DARPA reduces risk ahead of CONNECTED AEROSPACE Scrutiny of the Boeing 777X Blackjack LEO constellation demo 50 U.S agencies petition FCC over signals more changes to the | Ligado license order FAA’s certification process 32 | Autonomous technology prompts ethical calling for German FCAS 28 | SOAR Points SPACE Fleet strategy for an elite 36 | USAF expands adversary air 54 | Abrupt departure of spaceflight U.S. aviation unit depends services to include more EW chief Loverro shakes NASA on Army decisions 38 | 1,000 engines up for grabs due to 58 | From the sidelines, Boeing 34 | Reaching Out U.S. Air Force move regroups and cheers on SpaceX Development of more complex 39 | U.S. warns Russian jets could turn 60 | All signs point to first Firefly air-to-air missiles is informing Libyan war into regional threat the size of fighter fleets Alpha Test launch in September 40 | How the U.S. Open Skies exit could 62 | Virgin Orbit closes in on cause 52 | Showtime for SpaceX undermine arms control A look at milestones on of LauncherOne demo loss SpaceX’s path to launching AIR TRAFFIC MANAGEMENT 63 | NASA lays out policy blueprint for NASA astronauts to the ISS 42 Istanbul Airport project induces | international Moon exploration multiplex route network UNMANNED AVIATION FAST FIVE COVID-19 CRISIS 44 | Medical drone flights demonstrate 55 | With SpaceX CEO Elon Musk in 18 | Massive state support gives confidence in BVLOS operations the runup to Crew Dragon launch selected airlines a lifeline URBAN AIR MOBILITY VIEWPOINT 22 | Air navigation service providers 46 | Walmart executive backs eVTOL 66 | Think defense is unscathed by ponder future after the pandemic startup Archer COVID-19? Think again. 23 | OEMs increase efforts to boost ON THE COVER confidence in air travel As the U.S. Army moves forward with two new high-speed rotorcraft acquisition programs, its most 26 | Coronavirus is a crucible for elite aviators see a once-in-a-generation opportunity to replace their hand-me-down fleet, but it will not inflight connectivity businesses be easy getting there. Defense Editor Steve Trimble’s report begins on page 28. U.S. Army photo. Aviation Week publishes a digital edition every week. Read it at AviationWeek.com/AWST 27 | COVID-19 infects defense industry with F-35 production slowdown DIGITAL EXTRAS Access exclusive online features from articles accompanied by this icon.
AviationWeek.com/AWST AVIATION WEEK & SPACE TECHNOLOGY/JUNE 1-14, 2020 3 Editor-In-Chief Joseph C. Anselmo [email protected] Executive Editors Jen DiMascio (Defense and Space) [email protected] Jens Flottau (Commercial Aviation) [email protected] Graham Warwick (Technology) [email protected] Editors Lindsay Bjerregaard, Sean Broderick, Michael Bruno, Bill Carey, Thierry Dubois, William Garvey, Ben Goldstein, Lee Hudson, Irene Klotz, Helen Massy- Beresford, Jefferson Morris, Guy Norris, Tony Osborne, Bradley Perrett, James Pozzi, Adrian Schofield, Lee Ann Shay, Steve Trimble Chief Aircraft Evaluation Editor Fred George Director, Editorial and Online Production Michael O. Lavitt Associate Managing Editor Andrea Hollowell Art Director Lisa Caputo Artists Thomas De Pierro, Rosa Pineda, Colin Throm Copy Editors Jack Freifelder, Arturo Mora, Natalia Pelayo, Andy Savoie Production Editors Audra Avizienis, Theresa Petruso Contributing Photographer Joseph Pries Director, Digital Content Strategy Rupa Haria Content Marketing Manager Rija Tariq Data & Analytics Director, Forecasts and Aerospace Insights Brian Kough Senior Manager, Data Operations/Production Terra Deskins Manager, Military Data Operations Michael Tint Editorial Offices 2121 K Street, NW, Suite 210, Washington, D.C. 20037 Phone: +1 (202) 517-1100 605 Third Avenue, New York, N.Y. 10158 GoGo beyondbeyond thethe newsnews ofof thethe Phone: +1 (212) 204-4200 dayday withwith AviationAviation WWeekeek Bureau Chiefs Auckland IntelligenceIntelligence Network’sNetwork’s Adrian [email protected] Beijing Market Briefi ngs. Bradley Perrett [email protected] Cape Canaveral These sector-specifi c intelligence Irene Klotz [email protected] Chicago briefi ngs empower busy Lee Ann Shay [email protected] executives to stay-ahead of the Frankfurt Jens Flottau [email protected] market, identify opportunities and Houston drive revenue. Mark Carreau [email protected] London Tony Osborne [email protected] Los Angeles LEARN MORE: Guy Norris [email protected] Lyon aviationweek.com/marketbriefi ngs Thierry Dubois [email protected] Moscow Maxim Pyadushkin [email protected] Paris Helen Massy-Beresford [email protected] Washington Jen DiMascio [email protected] Wichita Molly McMillin [email protected]
President, Aviation Week Network Gregory Hamilton Managing Director, Intelligence & Data Services Anne McMahon
4 AVIATION WEEK & SPACE TECHNOLOGY/JUNE 1-14, 2020 AviationWeek.com/AWST Enabling the Extraordinary To Fly To Power To Live Editor-In-Chief Joseph C. Anselmo [email protected] Executive Editors Jen DiMascio (Defense and Space) [email protected] Jens Flottau (Commercial Aviation) [email protected] Graham Warwick (Technology) [email protected] Editors Lindsay Bjerregaard, Sean Broderick, Michael Bruno, Bill Carey, Thierry Dubois, William Garvey, Ben Goldstein, Lee Hudson, Irene Klotz, Helen Massy- Beresford, Jefferson Morris, Guy Norris, Tony Osborne, Bradley Perrett, James Pozzi, Adrian Schofield, Lee Ann Shay, Steve Trimble Chief Aircraft Evaluation Editor Fred George Director, Editorial and Online Production Michael O. Lavitt Associate Managing Editor Andrea Hollowell Art Director Lisa Caputo Artists Thomas De Pierro, Rosa Pineda, Colin Throm Copy Editors Jack Freifelder, Arturo Mora, Natalia Pelayo, Andy Savoie Production Editors Audra Avizienis, Theresa Petruso Contributing Photographer Joseph Pries Director, Digital Content Strategy Rupa Haria Content Marketing Manager Rija Tariq Data & Analytics Director, Forecasts and Aerospace Insights Brian Kough Senior Manager, Data Operations/Production Terra Deskins Manager, Military Data Operations Michael Tint Editorial Offices 2121 K Street, NW, Suite 210, Washington, D.C. 20037 Phone: +1 (202) 517-1100 EXTREME 605 Third Avenue, New York, N.Y. 10158 GoGo beyondbeyond thethe newsnews ofof thethe Phone: +1 (212) 204-4200 dayday withwith AviationAviation WWeekeek Bureau Chiefs Auckland IntelligenceIntelligence Network’sNetwork’s Adrian [email protected] Beijing Market Briefi ngs. Bradley Perrett [email protected] Around the globe, military system engineers have turned Cape Canaveral Automatic ammunition to Meggitt to help them meet their demanding lethality These sector-specifi c intelligence Irene Klotz [email protected] Chicago and reliability requirements for ammunition storage and briefi ngs empower busy Lee Ann Shay [email protected] handling for extreme handling systems in all manner of combat platforms executives to stay-ahead of the Frankfurt – rotary and fixed-wing aircraft and ground combat Jens Flottau [email protected] military environments market, identify opportunities and Houston vehicles. drive revenue. Mark Carreau [email protected] London Tony Osborne [email protected] Meggitt has developed and fielded state-of-the-art Los Angeles lethality solutions for the most challenging operational Guy Norris [email protected] LEARN MORE: environments across the spectrum of conventional aviationweek.com/marketbriefi ngs Lyon Thierry Dubois [email protected] ammunition calibers from 25mm to 155mm including our Moscow Maxim Pyadushkin [email protected] new 50mm as well as advanced ammunition in the form Paris of case telescoped and electromagnetic railgun rounds. Helen Massy-Beresford [email protected] Meggitt delivers unprecedented reliability to the mission Washington Jen DiMascio [email protected] critical weapon systems of today and tomorrow. Wichita Molly McMillin [email protected] Tel: +1 949 465 7700 President, Aviation Week Network E-mail: [email protected] Gregory Hamilton Managing Director, Intelligence & Data Services Anne McMahon www.meggittdefense.com
4 AVIATION WEEK & SPACE TECHNOLOGY/JUNE 1-14, 2020 AviationWeek.com/AWST FEEDBACKFEEDBACK
space transportation systems. Let’s not THE NEXT SWAN screw it up with old-fashioned thought. Today the aerospace industry is reeling from the impact of COVID-19, as docu- James R. French, Laguna Woods, mented in the compendium of data in California AW&ST and via your webinars associ- ated with COVID-19 and its effects on BAD JUJU? aviation business and the supply chain. Too bad the folks at the UK’s Defense The presence of disease in the supply BLUE ORIGIN Science and Technology Laboratory chain and manufacturing centers fits FORWARD-LOOKING DESIGN and the U.S. Air Force Research Labo- the definition of a black swan event, an Randy McDonnell’s letter “Revising ratory threw out the acronym of their event that was predictable but whose Rockets” (May 4-17, p. 5) presents a mix proposed new hypersonic round and scope of impact was viewed as remote of good ideas and misunderstanding. simply gave it the unfortunate name and so was not adequately addressed. My comments about it below are in- “Thresher” (April 6-19, p. 14). A little We are now in the midst of recognizing formed by my work as the government research reveals the USS Thresher that the impact, if not the disease itself, chief engineer on the DC-X technol- (SSN-593) was a watershed loss for the will likely last several years. ogy demonstrator (for the Strategic U.S. Navy as the first nuclear subma- Now imagine a compounding event, Defense Initiative Organization) and as rine to be lost at sea, on April 10, 1963, a cyberbreach that manipulates our a consultant to NASA on the DC-XA. 220 mi. off Boston in 8,400 ft of water. collective understanding of the state First, I will address the idea of elim- There may be some bad juju there. of the supply chain or software in inating landing gear. The descending the products we deliver. The actual vehicle has been investigated in some Richard L. Hackmeister, Fort Lauderdale, state of the supply chain or software depth in the years since the DC-XA, Florida does not need to be altered to have an and while it could be made to work, effect; merely altering the perception it really emerges as an impractical REASONABLE, NOT RADICAL of them would affect projected parts solution. The issues would take too I strongly disagree with letter writer availability, production rates, financial long to discuss here, but in the end, it is Bob Seelos’ position in “The Middle projections and stock prices, resulting not a good idea. Using the rocket body Seat” (April 6-19, p. 6) that airlines in a skewed picture of the nation’s as a decelerator is basically what most permanently stop seating passengers ability to deliver operational defense concepts use, whether it rotates or in middle seats and entire rows be and aerospace capabilities. not. Multiple rebounds off the atmo- removed. Such radical measures are Similarly, a lack of confidence in the sphere is essentially the skip reentry entirely unnecessary. integrity of the software used to oper- technique, the concept of which goes Is it reasonable to place the threat ate our military and industrial systems back to Eugen Sanger. It has been used of spreading COVID-19 or other future would have a parallel impact on both extensively on many missions such as pathogens onto the airlines? Is it rea- national defense and financial markets. Zond, Apollo, etc. It is more useful for sonable to bankrupt airlines by reduc- Instilling confidence in the integri- entry range extension than reducing ing passenger load factors to unprofit- ty of critical data and software used heating, but it does help to some extent. able and unsustainable levels? Is it wise in supply chains and operational The remaining ideas are very good to encourage government financial aerospace systems is solvable. The and deserve more attention. Keeping bailouts of airlines with the very real aerospace community has the techni- the crew capsule integrated with the result of full or partial government cal skills to mitigate the impact of a rocket to avoid excessive refurbish- ownership? I say “no” to all the above. catastrophic black swan event so that ment and checkout activity between Instead, how about we adopt these it is just another swan in the flock of flights is essential to achieving rapid policies: Encourage the public to wear routine challenges. turnaround and minimizing operating masks voluntarily in public any time cost. When an airliner flying from New they are sick, as numerous countries David E. Hamilton, Jr., Alexandria, York to Los Angeles arrives, you don’t have done in Asia for decades; require, Virginia separate the passenger cabin and land or at least encourage, airline passengers it by parachute. It makes no more to wear masks aboard flights, and re- sense for a space transport than it does quire the airlines to provide them upon CORRECTION for an atmospheric transport. request at the terminal before boarding. “Army Pushes Ahead With Black Using aerodynamic control surfaces Reasonable solutions are better for Hawk Replacement” (March 23-April 5, to control the vehicle during entry everyone than radical solutions. p. 43) should have stated that the and landing is rational and has been difference between project agreement well-demonstrated by SpaceX. Kevin A. Capps, Corona del Mar, awards to the Sikorsky-Boeing and Rapid separation of the crew cap- California Bell teams is $13 million. sule from the rocket when the situation demands it is also essential. Even in that emergency case, there are better Address letters to the Editor-in-Chief, Aviation Week & Space Technology, answers to achieve a safe landing than 2121 K Street, NW, Suite 210, Washington, DC, 20037 or send via email to: parachutes (the usual approach). We [email protected]. Letters may be edited for length and clarity; stand on the verge of developing real a verifiable address and daytime telephone number are required.
6 AVIATION WEEK & SPACE TECHNOLOGY/JUNE 1-14, 2020 AviationWeek.com/AWST FEEDBACKFEEDBACK
space transportation systems. Let’s not THE NEXT SWAN screw it up with old-fashioned thought. Today the aerospace industry is reeling from the impact of COVID-19, as docu- James R. French, Laguna Woods, mented in the compendium of data in California AW&ST and via your webinars associ- ated with COVID-19 and its effects on BAD JUJU? aviation business and the supply chain. Too bad the folks at the UK’s Defense The presence of disease in the supply BLUE ORIGIN Science and Technology Laboratory chain and manufacturing centers fits FORWARD-LOOKING DESIGN and the U.S. Air Force Research Labo- the definition of a black swan event, an Randy McDonnell’s letter “Revising ratory threw out the acronym of their event that was predictable but whose Rockets” (May 4-17, p. 5) presents a mix proposed new hypersonic round and scope of impact was viewed as remote of good ideas and misunderstanding. simply gave it the unfortunate name and so was not adequately addressed. My comments about it below are in- “Thresher” (April 6-19, p. 14). A little We are now in the midst of recognizing formed by my work as the government research reveals the USS Thresher that the impact, if not the disease itself, chief engineer on the DC-X technol- (SSN-593) was a watershed loss for the will likely last several years. ogy demonstrator (for the Strategic U.S. Navy as the first nuclear subma- Now imagine a compounding event, Defense Initiative Organization) and as rine to be lost at sea, on April 10, 1963, a cyberbreach that manipulates our a consultant to NASA on the DC-XA. 220 mi. off Boston in 8,400 ft of water. collective understanding of the state First, I will address the idea of elim- There may be some bad juju there. of the supply chain or software in inating landing gear. The descending the products we deliver. The actual vehicle has been investigated in some Richard L. Hackmeister, Fort Lauderdale, state of the supply chain or software depth in the years since the DC-XA, Florida does not need to be altered to have an and while it could be made to work, effect; merely altering the perception it really emerges as an impractical REASONABLE, NOT RADICAL of them would affect projected parts solution. The issues would take too I strongly disagree with letter writer availability, production rates, financial long to discuss here, but in the end, it is Bob Seelos’ position in “The Middle projections and stock prices, resulting not a good idea. Using the rocket body Seat” (April 6-19, p. 6) that airlines in a skewed picture of the nation’s as a decelerator is basically what most permanently stop seating passengers ability to deliver operational defense concepts use, whether it rotates or in middle seats and entire rows be and aerospace capabilities. not. Multiple rebounds off the atmo- removed. Such radical measures are Similarly, a lack of confidence in the sphere is essentially the skip reentry entirely unnecessary. integrity of the software used to oper- technique, the concept of which goes Is it reasonable to place the threat ate our military and industrial systems back to Eugen Sanger. It has been used of spreading COVID-19 or other future would have a parallel impact on both extensively on many missions such as pathogens onto the airlines? Is it rea- national defense and financial markets. Zond, Apollo, etc. It is more useful for sonable to bankrupt airlines by reduc- Instilling confidence in the integri- entry range extension than reducing ing passenger load factors to unprofit- ty of critical data and software used heating, but it does help to some extent. able and unsustainable levels? Is it wise in supply chains and operational The remaining ideas are very good to encourage government financial aerospace systems is solvable. The and deserve more attention. Keeping bailouts of airlines with the very real aerospace community has the techni- the crew capsule integrated with the result of full or partial government cal skills to mitigate the impact of a rocket to avoid excessive refurbish- ownership? I say “no” to all the above. catastrophic black swan event so that ment and checkout activity between Instead, how about we adopt these it is just another swan in the flock of flights is essential to achieving rapid policies: Encourage the public to wear routine challenges. turnaround and minimizing operating masks voluntarily in public any time cost. When an airliner flying from New they are sick, as numerous countries David E. Hamilton, Jr., Alexandria, York to Los Angeles arrives, you don’t have done in Asia for decades; require, Virginia separate the passenger cabin and land or at least encourage, airline passengers it by parachute. It makes no more to wear masks aboard flights, and re- sense for a space transport than it does quire the airlines to provide them upon CORRECTION for an atmospheric transport. request at the terminal before boarding. “Army Pushes Ahead With Black Using aerodynamic control surfaces Reasonable solutions are better for Hawk Replacement” (March 23-April 5, to control the vehicle during entry everyone than radical solutions. p. 43) should have stated that the and landing is rational and has been difference between project agreement well-demonstrated by SpaceX. Kevin A. Capps, Corona del Mar, awards to the Sikorsky-Boeing and Rapid separation of the crew cap- California Bell teams is $13 million. sule from the rocket when the situation demands it is also essential. Even in that emergency case, there are better Address letters to the Editor-in-Chief, Aviation Week & Space Technology, answers to achieve a safe landing than 2121 K Street, NW, Suite 210, Washington, DC, 20037 or send via email to: parachutes (the usual approach). We [email protected]. Letters may be edited for length and clarity; stand on the verge of developing real a verifiable address and daytime telephone number are required.
6 AVIATION WEEK & SPACE TECHNOLOGY/JUNE 1-14, 2020 AviationWeek.com/AWST WHO’S WHERE
Francois Lassale has been named act- Collier Trophy, an Iven C. Kincheloe Award and a Society ing CEO of HeliOffshore. He succeeds of Experimental Test Pilots’ James H. Doolittle Award. Gretchen Haskins, who will serve on Tim Williams has joined Vertical the board. Lassale was chief operating Aerospace as chief engineer. He was a officer. chief engineer at Rolls-Royce. York Space Systems has named Barry Trine Aerospace has hired Phuong Ta Behnken vice president of engineering. as engineering manager. Phuong was His career in space-systems devel- certification lead at United Technologies opment includes having been program director of the and vice chair of the SAE International National Recon naissance Office during his tenure in the Aviation seat committee. She has served Air Force, a Raytheon Technologies technical fellowship on FAA Aviation Rulemaking Advisory Committee work- and co-founder of driverless car company AEye Inc. ing groups and is a structure and flammability designated Universal Avionics has promoted Gil Rivnai to vice pres- engineering representative. ident of engineering from head of engineering and Marc The Metropolitan Airports Commission (MAC) has hired Bouliane to vice president of business development, mar- Tim Simon as vice president of finance and revenue keting and services from vice president of business devel- develop ment. MAC owns and operates Minneapolis- opment. Rivnal succeeds Dan Reida, who has left. St. Paul International and six general aviation airports in Zachary Dunn has been hired as vice president of fac- the Twin Cities area. tory development for Relativity Space. Dunn was SpaceX The Metropolitan Washington Airports Authority has pro- senior vice president of production and launch moted Richard Golinowski to vice president of operations Ampaire has hired Doug Shane as general manager for Reagan National and Dulles International airports. He of aviation, with a focus on development of sustainable has been with the Airports Authority for electric-powered air transport. An engineer and test 25 years. pilot, Shane has overseen high-tech aerospace ventures The White House has nominated for- for Scaled Composites and Virgin Galactic. He also won mer U.S. Congressman John A. Culberson (with Burt Rutan and others, for SpaceShipOne) the 2004 to serve on the National Space Council Users’ Advisory Group. LinQuest Corp., a space systems tech- nology provider for U.S. defense and in- telligence, has appointed Martin Faga to its board. Faga was president and CEO of MITRE Corp. and has served on the Ensuring boards of Alliant, Orbital ATK, DigitalGlobe and GeoEye. He also served as National Reconnaissance Office director, safety and performance assistant secretary of the Air Force for space and as staff for today and tomorrow for the House Permanent Select Committee on Intelligence. Triumph Group has elected Richard Goglia to its board and its audit and finance committees. He had been trea- surer at Raytheon, which in April merged with United Technologies’ aerospace and defense business to become Raytheon Technologies. Goglia previously was senior vice president at GE Capital. Satellite connectivity provider SES has elected Frank Esser board chairman. Paul Jarossy has been rehired as vice president of sales and marketing at Vulcan Spring and Manufacturing. He was Vulcan sales and marketing director in 2010-12 and held business development roles at Kaman Industrial With light weight, small volume, Technologies and FlexLink Systems, among others. outstanding environmental robust- Universal Avionics has hired and ness and unmatched performance John Berizzi John as South-Central and Southwest U.S. regional LITEF’s certified Inertial Systems Wasmund deliver value to the operators of all sales managers, respectively. Berizzi worked for Stevens types of civil and military aircraft. Aviation and Boca Aircraft Maintenance, overseeing com- pliance installations and navigation upgrades. Wasmund worked at Hawker Beechcraft and Constant Aviation. c Inertial Systems made by To submit information for the Who’s Where column, send Word or attached text files (no PDFs) and photos to: whoswhere@aviationweek.
For more information on our products, please contact [email protected] com For additional information on companies and individuals listed in Northrop Grumman LITEF GmbH, Loerracher Strasse 18, 79115 Freiburg, Germany this column, please refer to the Aviation Week Intelligence Network at AviationWeek.com/awin For information on ordering, telephone U.S.: +1 (866) 857-0148 or +1 (515) 237-3682 outside the U.S.
8 AVIATION WEEK & SPACE TECHNOLOGY/JUNE 1-14, 2020 AviationWeek.com/AWST WHO’S WHERE
Francois Lassale has been named act- Collier Trophy, an Iven C. Kincheloe Award and a Society ing CEO of HeliOffshore. He succeeds of Experimental Test Pilots’ James H. Doolittle Award. Gretchen Haskins, who will serve on Tim Williams has joined Vertical the board. Lassale was chief operating Aerospace as chief engineer. He was a officer. chief engineer at Rolls-Royce. York Space Systems has named Barry Trine Aerospace has hired Phuong Ta 第⼗三届 Behnken vice president of engineering. as engineering manager. Phuong was His career in space-systems devel- certification lead at United Technologies opment includes having been program director of the and vice chair of the SAE International National Recon naissance Office during his tenure in the Aviation seat committee. She has served Air Force, a Raytheon Technologies technical fellowship on FAA Aviation Rulemaking Advisory Committee work- and co-founder of driverless car company AEye Inc. ing groups and is a structure and flammability designated The 13th China International Aviation & Aerospace Exhibition Universal Avionics has promoted Gil Rivnai to vice pres- engineering representative. ident of engineering from head of engineering and Marc The Metropolitan Airports Commission (MAC) has hired Bouliane to vice president of business development, mar- Tim Simon as vice president of finance and revenue keting and services from vice president of business devel- develop ment. MAC owns and operates Minneapolis- opment. Rivnal succeeds Dan Reida, who has left. St. Paul International and six general aviation airports in Zachary Dunn has been hired as vice president of fac- the Twin Cities area. tory development for Relativity Space. Dunn was SpaceX The Metropolitan Washington Airports Authority has pro- senior vice president of production and launch moted Richard Golinowski to vice president of operations Ampaire has hired Doug Shane as general manager for Reagan National and Dulles International airports. He of aviation, with a focus on development of sustainable has been with the Airports Authority for electric-powered air transport. An engineer and test 25 years. pilot, Shane has overseen high-tech aerospace ventures The White House has nominated for- for Scaled Composites and Virgin Galactic. He also won mer U.S. Congressman John A. Culberson (with Burt Rutan and others, for SpaceShipOne) the 2004 to serve on the National Space Council Users’ Advisory Group. LinQuest Corp., a space systems tech- nology provider for U.S. defense and in- telligence, has appointed Martin Faga to its board. Faga was president and CEO of MITRE Corp. and has served on the Ensuring boards of Alliant, Orbital ATK, DigitalGlobe and GeoEye. He also served as National Reconnaissance Office director, safety and performance assistant secretary of the Air Force for space and as staff for today and tomorrow for the House Permanent Select Committee on Intelligence. Triumph Group has elected Richard Goglia to its board and its audit and finance committees. He had been trea- surer at Raytheon, which in April merged with United Technologies’ aerospace and defense business to become Raytheon Technologies. Goglia previously was senior vice president at GE Capital. Satellite connectivity provider SES has elected Frank Esser board chairman. Paul Jarossy has been rehired as vice president of sales and marketing at Vulcan Spring and Manufacturing. He was Vulcan sales and marketing director in 2010-12 and held business development roles at Kaman Industrial With light weight, small volume, Technologies and FlexLink Systems, among others. outstanding environmental robust- Universal Avionics has hired and ness and unmatched performance John Berizzi John as South-Central and Southwest U.S. regional LITEF’s certified Inertial Systems Wasmund deliver value to the operators of all sales managers, respectively. Berizzi worked for Stevens types of civil and military aircraft. Aviation and Boca Aircraft Maintenance, overseeing com- pliance installations and navigation upgrades. Wasmund worked at Hawker Beechcraft and Constant Aviation. c Inertial Systems made by To submit information for the Who’s Where column, send Word or attached text files (no PDFs) and photos to: whoswhere@aviationweek.
For more information on our products, please contact [email protected] com For additional information on companies and individuals listed in Northrop Grumman LITEF GmbH, Loerracher Strasse 18, 79115 Freiburg, Germany this column, please refer to the Aviation Week Intelligence Network at EXHIBITION TRADE VISITOR & AIRCRAFT EXHIBITION AviationWeek.com/awin For information on ordering, telephone U.S.: Mr. Jimmy Sum Mr. Aaron Huang +1 (866) 857-0148 or +1 (515) 237-3682 outside the U.S. Tel:+86-756-337-6304 Tel:+86-756-337-6111 WWW.AIRSHOW.COM.CN Email:[email protected] Email: [email protected]
8 AVIATION WEEK & SPACE TECHNOLOGY/JUNE 1-14, 2020 AviationWeek.com/AWST FIRST
MC-21 narrowbody commercial airliner Commercial aviation groups and manu- TAKE beyond 2020. facturers planned to file seven petitions For the latest, go to challenging the Federal Communica- AVIATIONWEEK.COM Airlines globally have so far received tions Commission’s decision to grant more than $123 billion in government aid, Ligado Networks access to spectrum but IATA warns the support is spread un- near GPS (page 50). evenly leading to massive market distor- tion in favor of richer economies (page 18). DEFENSE The U.S. Air Force’s top general in Africa The European Union Aviation Safety Command warned on May 26 that Rus- Agency has set out guidelines for fly- sia’s next move in Libya could be to de- ing in the COVID-19 era that include a ploy permanent, long-range air defense requirement for passengers and crew systems (page 39). to wear face masks at all times. TEXTRON AVIATION Leidos is to design and demonstrate the GENERAL AVIATION Changing the rules of the ICAO Carbon autonomy platform that will be integrat- Textron Aviation’s prototype Cessna Offsetting and Reduction Scheme to ed into and control the U.S. Air Force’s Model 408 SkyCourier twin-turboprop reflect the impact of COVID-19 would future family of Skyborg unmanned air- utlity aircraft made its 2-hr. 15-min. first risk undermining the entire program, craft systems. flight on May 17 from Wichita. says the Environmental Defense Fund lobbying group. The UK has begun firing trials of Thales’ Piper Aircraft has received FAA type cer- Lightweight Multirole Missile from the tification for its M600/SLS single- engine Air France has ended Airbus A380 oper- Leonardo AW159 Wildcat naval heli- turboprop featuring Garmin Internation- ations, bringing forward an existing plan copter, ahead of the first deployment of al’s emergency Autoland system. to phase out the superjumbo aircraft fol- the HMS Queen Elizabeth carrier task lowing the coronavirus outbreak. group in 2021.
VIEW FROM WASHINGTON
More Eyes on Those Troublesome Tankers What a troubled program already in the congressional crosshairs does not want is more scrutiny from lawmakers. But that is where MAGNIX Boeing’s KC-46A tanker for the U.S. Air Force finds itself. MagniX and AeroTEC flew a Cessna 208B Concerns about deficient and delayed KC-46As has spread Caravan converted to all-electric pro- pulsion for the first time on May 28 from beyond the Senate’s defense-focused committees. Republican Moses Lake, Washington (page 48). and Democratic members of a subcommittee of the Senate Committee on Homeland Security and Governmental Affairs COMMERCIAL AVIATION Previously profitable Latin American air- have now called for an investigation into the program by the line group LATAM Airlines became the Government Accountability Office (GAO). latest high-profile victim of the COVID-19 The committee members are seeking an assessment on the crisis when it filed for Chapter 11 pro- ceedings on May 26 in the U.S. (page 18). status of Boeing’s planned fixes for critical deficiencies in the tanker, steps taken by U.S. Transportation Command to mitigate The German government faces Euro- the operational effects caused by the delays and “considerations pean Commission opposition to a €9 billion ($10 billion) rescue package for the Air Force is receiving because of the delays,” the senators Lufthansa that would keep the airline wrote. out of insolvency while returning it as The KC-46 program has been a key focus of the GAO’s de - the largest shareholder with a 20% stake. fense team since Boeing won the contract in 2011. The inves- Mitsubishi Aircraft is mothballing its tigative arm of Congress has produced reports on the KC-46A SpaceJet flight-testing operation in the annually since 2012 at the request of the Armed Services Com- U.S., consolidating operations in Nagoya, Japan, and closing all offices elsewhere. mittees of the Senate and House of Representatives. The Air Force has accepted 30 KC-46As from Boeing, but A Russian government official has Transportation Command refuses to use them until Boeing confirmed that COVID-19 restrictions have delayed certification of the Irkut corrects the deficiencies.
10 AVIATION WEEK & SPACE TECHNOLOGY/JUNE 1-14, 2020 AviationWeek.com/AWST FIRST
MC-21 narrowbody commercial airliner Commercial aviation groups and manu- NATO and European nations expressed COVID-19 to Impact Global Defense Procurement TAKE beyond 2020. facturers planned to file seven petitions regret at the decision from the admin- challenging the Federal Communica- istration of President Donald Trump 450 20 For the latest, go to AVIATIONWEEK.COM Airlines globally have so far received tions Commission’s decision to grant to exit the Open Skies Treaty but said 400 more than $123 billion in government aid, Ligado Networks access to spectrum they share U.S. concerns about incon- 15 but IATA warns the support is spread un- near GPS (page 50). sistent flight restrictions imposed by 50 evenly leading to massive market distor- Moscow (page 40). 10 tion in favor of richer economies (page 18). DEFENSE 00
The U.S. Air Force’s top general in Africa A document published by the Italian 5 The European Union Aviation Safety Command warned on May 26 that Rus- Senate appears to confirm the €871 mil- 250 Agency has set out guidelines for fly- sia’s next move in Libya could be to de- lion ($965 million) sale of 24 Leonardo 200 ing in the COVID-19 era that include a ploy permanent, long-range air defense AW149 and eight AW189 twin- engine 0 requirement for passengers and crew systems (page 39). transport helicopters to Egypt. U. . $ 150 -5 to wear face masks at all times. TEXTRON AVIATION Leidos is to design and demonstrate the The U.S. Tactical Boost Glide and the 100 GENERAL AVIATION Changing the rules of the ICAO Carbon autonomy platform that will be integrat- Hypersonic Air-breathing Weapon A A (except China) -10 prototype Cessna Offsetting and Reduction Scheme to ed into and control the U.S. Air Force’s Concept hypersonic missile programs 50 Textron Aviation’s Model 408 SkyCourier twin-turboprop reflect the impact of COVID-19 would future family of Skyborg unmanned air- have fallen months behind schedule, 0 -15 utlity aircraft made its 2-hr. 15-min. first risk undermining the entire program, craft systems. says the head of the Pentagon’s re - 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 2024 flight on May 17 from Wichita. says the Environmental Defense Fund search and engineering branch. *Dollar values and growth adjusted for inflation lobbying group. The UK has begun firing trials of Thales’ Source: Craig Caffrey, Senior Aerospace Industry Analyst, Aviation Week Network Piper Aircraft has received FAA type cer- Lightweight Multirole Missile from the Lockheed Martin now expects to de- tification for its M600/SLS single- engine Air France has ended Airbus A380 oper- Leonardo AW159 Wildcat naval heli- liver 18-24 fewer F-35s in 2020 than Procurement and R&D will lead global defense spending cuts in the aftermath of turboprop featuring Garmin Internation- ations, bringing forward an existing plan copter, ahead of the first deployment of the program’s 141-aircraft goal due to the novel coronavirus pandemic, forecasts Craig Caffrey, senior aerospace industry al’s emergency Autoland system. to phase out the superjumbo aircraft fol- the HMS Queen Elizabeth carrier task supply chain disruptions caused by the analyst with the Aviation Week Network. Cuts will be disproportionately concentrated lowing the coronavirus outbreak. group in 2021. novel coronavirus pandemic (page 27). in key domestic and export markets of Western defense suppliers.
Saab has signed a 1.55 billion krona To request more information about Aviation Week’s Military Fleet Discovery VIEW FROM WASHINGTON ($160 million) contract with an undis- Database, go to pgs.aviationweek.com/FleetDataServices closed customer for its Erieye radar- equipped airborne early warning Saab More Eyes on Those Troublesome Tankers 2000. 75 YEARS AGO IN AVIATION WEEK What a troubled program already in the congressional crosshairs SPACE With memories of the ecstatic V-E Day cele- does not want is more scrutiny from lawmakers. But that is where NASA and SpaceX retargeted launch of brations still fresh, our June 1, 1945, edition MAGNIX Boeing’s KC-46A tanker for the U.S. Air Force finds itself. the crewed Demo-2 flight test for May reflected on key challenges that lay ahead for MagniX and AeroTEC flew a Cessna 208B Concerns about deficient and delayed KC-46As has spread 30 after weather at Kennedy Space the U.S. and the aviation industry. A costly Caravan converted to all-electric pro- Center prompted a scrub 16 min. before war in Europe had just been won, but the beyond the Senate’s defense-focused committees. Republican pulsion for the first time on May 28 from a liftoff attempt on May 27 (page 52). fight in the Pacific was still raging, with the Moses Lake, Washington (page 48). and Democratic members of a subcommittee of the Senate bloody Battle of Okinawa still undecided. British satellite launcher firm Skyrora Committee on Homeland Security and Governmental Affairs Meanwhile, a new American foe already ap- COMMERCIAL AVIATION has undertaken a full static fire test of Previously profitable Latin American air- have now called for an investigation into the program by the its Skylark L rocket, the first UK test peared to be rising in the Soviet Union—still line group LATAM Airlines became the Government Accountability Office (GAO). of this scale since the Black Arrow pro- officially a U.S. ally. latest high-profile victim of the COVID-19 The committee members are seeking an assessment on the gram 50 years ago. The magazine’s coverage included a tech- crisis when it filed for Chapter 11 pro- nical review of a startling new form of aircraft status of Boeing’s planned fixes for critical deficiencies in the ceedings on May 26 in the U.S. (page 18). NASA has renamed its threatened propulsion called a turbojet, and an advertise- tanker, steps taken by U.S. Transportation Command to mitigate Wide Field Infrared Survey Telescope ment featuring Sikorsky’s latest rotary-wing The German government faces Euro- the operational effects caused by the delays and “considerations the Nancy Grace Roman Space Tele- pean Commission opposition to a €9 scope in honor of the pioneering wom- marvel, the R-6, adorned the cover. But the billion ($10 billion) rescue package for the Air Force is receiving because of the delays,” the senators an astronomer. post-V-E Day reality was visible, too, with a cov- Lufthansa that would keep the airline wrote. er appeal to buy war bonds signed by all seven out of insolvency while returning it as The KC-46 program has been a key focus of the GAO’s de - High-speed propulsion developer five-star flag officers: Gens. George Marshall, Leslie Neville urged readers not to forget the largest shareholder with a 20% stake. Reaction Engines has been awarded Douglas MacArthur, Dwight Eisenhower and the lessons of recent defeats in battle. “It fense team since Boeing won the contract in 2011. The inves- a Euro pean Space Agency study con- Hap Arnold joined by Adms. William Leahy, is easy for us, as survivors of this phase of Mitsubishi Aircraft is mothballing its tigative arm of Congress has produced reports on the KC-46A tract for a hypersonic flying testbed for Ernest King and Chester Nimitz. the war, to don our own Superman cloaks SpaceJet flight-testing operation in the annually since 2012 at the request of the Armed Services Com- its Sabre air-breathing rocket engine. U.S., consolidating operations in Nagoya, Publisher Harold McGraw, Jr. appealed for and assume that we are unconquerable,” he Japan, and closing all offices elsewhere. mittees of the Senate and House of Representatives. A United Launch Alliance Atlas V rock- a repairing of relations with Moscow, lest the warned. “We must not relinquish our dom- The Air Force has accepted 30 KC-46As from Boeing, but et lifted off from Cape Canaveral AFS “defeat of Japan merely mark the end of the inant air power until we are perfectly sure A Russian government official has Transportation Command refuses to use them until Boeing on May 17 to deliver a U.S. Air Force Second in a series of World Wars.” And Editor that it is safe to do so.” confirmed that COVID-19 restrictions X-37B mini-shuttle into orbit for a have delayed certification of the Irkut corrects the deficiencies. sixth mission. c Read every issue of Aviation Week back to 1916 at: archive.aviationweek.com
10 AVIATION WEEK & SPACE TECHNOLOGY/JUNE 1-14, 2020 AviationWeek.com/AWST AviationWeek.com/AWST AVIATION WEEK & SPACE TECHNOLOGY/JUNE 1-14, 2020 11 COMMENTARY UP FRONT REMZI SEKER
WITH THE EXPANSION ACROSS Tackling cybersafety challenges requires a coordinat- the aviation industry of connectivity and ed, comprehensive, global effort. Multiple agencies are computing services, cybersecurity has be- cooperating to establish much-needed standards. For come ever more important. Connecting people, processes example, the U.S. FAA and the European Union Avia- and assets creates new vulnerabilities and multiple attack tion Safety Agency have been working with the RTCA points—from flight-critical avionics to passenger inflight and the European Organization for Civil Aviation Equip- entertainment networks and airline backend operations. ment to set harmonized cybersecurity standards. Information about systems, protocols and technologies Efforts to secure the aviation ecosystem also in- such as software-defined radio are now readily available clude dedicated committees such as the FAA’s Aviation well beyond the industry. Rulemaking Advisory Demand for greater ef- Committee Aircraft Sys- ficiency meanwhile con- tem Information Security/ tinues to increase con- Aviation’s Other Protection working group. nectivity and accelerate Similarly, the Aerospace computerization within Problem Industries Association aviation infrastructure, It is time to accelerate cybersecurity has established the Civil including aircraft. Aviation Cybersecurity Fortunately, ongoing Subcommittee. efforts to protect -air In the U.S., the Aviation craft, airlines and passen- Cyber Initiative (ACI) is gers from cybersecurity led by the Defense De- threats have been largely partment, Department of unaffected by the global Homeland Security and pandemic, suggesting an FAA. The ACI includes opportunity for the indus- experts representing gov- try to ramp up cybersafe- ernment, defense, industry ty programs and training and academia who collab- amid the current slow- orate to tackle aviation down. The comprehen- cybersecurity threats. sive, coordinated nature The Aviation Information of aviation cybersecurity Sharing and Analysis Cen- initiatives means com- ter shares global threat in-
mittees have long carried CHAINARONG PRASERTTHAI/GETTY IMAGES telligence among aviation out their work primarily companies. through virtual meetings, so those efforts are able to Globally, the International Civil Aviation Organization continue in full swing. With slowdowns taking place in (ICAO) leads this work. Its Trust Framework Study other areas, the industry can address cybersafety at a Group (TFSG) includes experts from the FAA, EASA, more rapid pace. commercial industry and academia and has established The aviation industry and its stakeholders have been three important working groups. working hard to tackle cybersecurity challenges com- Academic institutions play a critical role in ad- prehensively—from the supply chain and the mainte- vancing cybersecurity research and training, too. nance of aircraft to operations. Such efforts remain Embry-Riddle Aeronautical University, for example, essential so that cyberthreats affecting safety can be develops engineering solutions and provides degree, mitigated before they materialize, whether that hap- certification and training programs in aviation cyb- pens during flight through physical access to a bus, by sersecurity. Faculty researchers contribute expertise interfering with equipment through Wi-Fi or remotely to cyberdefense and preparedness efforts by serving disrupting operations. on national and international committees and working The need to weigh cyberthreats according to their groups and by organizing the annual Aero-Cybersecu- safety impact, a practice referred to as “cybersafety,” rity Symposium. requires a different perspective than that of IT cyber- Aviation’s impeccable safety culture positions it security. Cybersafety differs from traditional IT cyber- well to combat and defeat cybersafety risks. In the security because of the need for safety certification, years ahead, the industry will need to invest in ex- which relies on guaranteeing a system’s behavior, or panded education and training as well as research to “determinism.” This unique characteristic of aviation secure high-assurance systems that can be updated cybersafety means that solutions widely used across with minimal impact on certification. c traditional computing systems may pose serious certi- fication challenges. Imagine rolling out security patches Remzi Seker is the associate provost for research at Embry-Riddle for every avionics component on a commercial aircraft. Aeronautical University.
12 AVIATION WEEK & SPACE TECHNOLOGY/JUNE 1-14, 2020 AviationWeek.com/AWST COMMENTARY COMMENTARY UP FRONT GOING CONCERNS REMZI SEKER MICHAEL BRUNO
WITH THE EXPANSION ACROSS Tackling cybersafety challenges requires a coordinat- IF YOU LIKE THE CADRE OF BIG supply closer to home, both for reliability and geopolit- the aviation industry of connectivity and ed, comprehensive, global effort. Multiple agencies are aerospace and defense companies now, ical reasons. Suppliers overseas once were revered for computing services, cybersecurity has be- cooperating to establish much-needed standards. For you are going to love them later. Among their low-cost footprint, but suddenly they are seen as come ever more important. Connecting people, processes example, the U.S. FAA and the European Union Avia- the major trends the novel coronavirus vulnerable to pandemics, economic stress and global and assets creates new vulnerabilities and multiple attack tion Safety Agency have been working with the RTCA is expected to catalyze within aerospace and defense trade wars. In turn, consultants expect industry lead- points—from flight-critical avionics to passenger inflight and the European Organization for Civil Aviation Equip- (A&D) manufacturing is that the big will get bigger by ers to take another look at favoring local regions. entertainment networks and airline backend operations. ment to set harmonized cybersecurity standards. gobbling up others or taking back more work. Even in the defense realm, which for now is consid- Information about systems, protocols and technologies Efforts to secure the aviation ecosystem also in- In the next few years, vertical integration should ered safer during this downturn, there is talk of larger such as software-defined radio are now readily available clude dedicated committees such as the FAA’s Aviation pick up momentum, according to several executives firms becoming even more powerful. “Large pure-plays well beyond the industry. Rulemaking Advisory and consultants. After decades of OEMs, primes and should come through the pandemic relatively un- Demand for greater ef- Committee Aircraft Sys- scathed but may be looking at lower spending growth ficiency meanwhile con- tem Information Security/ outlooks,” Capital Alpha Partners Managing Director tinues to increase con- Aviation’s Other Protection working group. Top-Heavy Byron Callan noted May 13. “Mergers and acquisitions nectivity and accelerate Problem Similarly, the Aerospace As manufacturing reshapes may thus be more important in delivering growth— computerization within Industries Association after the pandemic, size will matter even though it’s not organic growth—in 2021-25.” aviation infrastructure, It is time to accelerate cybersecurity has established the Civil So where to look for vertical integration and con- including aircraft. Aviation Cybersecurity top-tier companies outsourcing major work on their solidation from the top? Clues are already emerging, Fortunately, ongoing Subcommittee. programs, many see the pendulum swinging back to efforts to protect -air In the U.S., the Aviation bringing more of it in-house. craft, airlines and passen- Cyber Initiative (ACI) is “We’ve already seen signs of more vertical inte- INDUSTRY CONSOLIDATION gers from cybersecurity led by the Defense De- gration coming through the industry and potentially Two Possible Evolutions threats have been largely partment, Department of where some of that could be accelerated as we work unaffected by the global Homeland Security and through the crisis,” says one advisor. pandemic, suggesting an FAA. The ACI includes Boeing started this a few years ago as it in- OEM OEM opportunity for the indus- experts representing gov- sourced avionics and other niche segments. Major try to ramp up cybersafe- ernment, defense, industry consolidation picked up last year with the mergers Tier 1 Tier 1 ty programs and training and academia who collab- of Raytheon and Tier 2 Tier 2 amid the current slow- orate to tackle aviation United Technolo- As smaller suppliers fall away, down. The comprehen- cybersecurity threats. gies Corp. and L3 who will pick up the pieces? Tier 3 Tier 3 sive, coordinated nature The Aviation Information Technologies and The left example shows Tier 1 of aviation cybersecurity Sharing and Analysis Cen- Harris Corp. Now, consolidation; the right, Tier 2-3. Tier 4 Tier 4 initiatives means com- ter shares global threat in- whether it be pro- Source: Roland Berger mittees have long carried CHAINARONG PRASERTTHAI/GETTY IMAGES telligence among aviation tecting profits or securing supply, the reasons to out their work primarily companies. own more of the work are burgeoning as industry is according to advisor presentations. First, look at through virtual meetings, so those efforts are able to Globally, the International Civil Aviation Organization refashioned in the COVID-19 crisis. niches where top suppliers already are prevalent—en- continue in full swing. With slowdowns taking place in (ICAO) leads this work. Its Trust Framework Study For starters, aerospace suppliers are facing dimin- vironmental and flight-control systems, landing gear, other areas, the industry can address cybersafety at a Group (TFSG) includes experts from the FAA, EASA, ished economies of scale but a greater share of fixed- electrical power and interiors—and others where they more rapid pace. commercial industry and academia and has established cost in production, with a likely loss in profitability and are not there yet, including maintenance, repair and The aviation industry and its stakeholders have been three important working groups. competitiveness, say Roland Berger advisors Robert overhaul, logistics, aerostructures and engines. working hard to tackle cybersecurity challenges com- Academic institutions play a critical role in ad- Thomson and Manfred Hader. So-called organic top-line Next, look at the supply base from the perspective prehensively—from the supply chain and the mainte- vancing cybersecurity research and training, too. increases, through insourcing and acquisition of addi- of a top supplier. Who is distressed or drawing down nance of aircraft to operations. Such efforts remain Embry-Riddle Aeronautical University, for example, tional work packages, are possible but only to a limited credit lines? What revenue mix do certain potential essential so that cyberthreats affecting safety can be develops engineering solutions and provides degree, degree. A fixed-cost reduction likewise is only feasible up targets have—e.g., commercial vs. defense, products mitigated before they materialize, whether that hap- certification and training programs in aviation cyb- to a certain level due to equipment and overhead struc- vs. services or aging vs. next-generation platforms? pens during flight through physical access to a bus, by sersecurity. Faculty researchers contribute expertise tures. So consolidation is an important lever to consider. Finally, consider where the new nucleus of consolida- interfering with equipment through Wi-Fi or remotely to cyberdefense and preparedness efforts by serving Part and parcel to that will be the financial distress tion will be. Will more “super Tier 1s” such as Raytheon disrupting operations. on national and international committees and working into which suppliers in Tier 2 and below fall—and the Technologies emerge, or will conglomeration occur The need to weigh cyberthreats according to their groups and by organizing the annual Aero-Cybersecu- opportunity to roll them up. among Tier 2 and 3 providers? The first would allow safety impact, a practice referred to as “cybersafety,” rity Symposium. Top CEOs are watching. Speaking May 13 to an inves- rationalization of capacity for detailed part production requires a different perspective than that of IT cyber- Aviation’s impeccable safety culture positions it tor conference, Honeywell International Chairman, CEO from Tier 1 to 3, for instance, with the super Tier 1s able security. Cybersafety differs from traditional IT cyber- well to combat and defeat cybersafety risks. In the and President Darius Adamczyk cited an inflection point. to secure through-value-chain control and prevent security because of the need for safety certification, years ahead, the industry will need to invest in ex- “For a couple of years now, I’ve been talking about how it subtier supplier failure, according to Roland Berger. which relies on guaranteeing a system’s behavior, or panded education and training as well as research to is a seller’s market, not a buyer’s market,” he told Gold- The latter likely would be opportunistically driven “determinism.” This unique characteristic of aviation secure high-assurance systems that can be updated man Sachs. “But that calculus may change in the second rather than following any overarching industry logic. cybersafety means that solutions widely used across with minimal impact on certification. c half of the year, and I think it could become a bit more of For smaller suppliers, the questions are more con- traditional computing systems may pose serious certi- a buyer’s market, and the valuations may be better and cise, as one consultant says. Do you want to be a buyer, fication challenges. Imagine rolling out security patches Remzi Seker is the associate provost for research at Embry-Riddle different. That’s something that we want to partake in.” a seller or risk it as is? A simpler question, for sure, for every avionics component on a commercial aircraft. Aeronautical University. Feeding the phenomenon could be a desire to bring but no less difficult to answer. c
12 AVIATION WEEK & SPACE TECHNOLOGY/JUNE 1-14, 2020 AviationWeek.com/AWST AviationWeek.com/AWST AVIATION WEEK & SPACE TECHNOLOGY/JUNE 1-14, 2020 13 COMMENTARY INSIDE BUSINESS AVIATION WILLIAM GARVEY
HE WAS PAGING THROUGH AN would have none of it. Ken’s report back to Bridgewa- aviation history magazine when an arti- ter: Little corrosion, but “Don’t underestimate the work cle about Columbine II, President Dwight involved.” Alas, Karl was to discover: “He was right.” Eisenhower’s aircraft and the first with The Connie’s owner wanted to sell it to someone the call sign Air Force One, caught his eye. He learned who would restore and preserve it and quickly recog- that the government had declared the four-engine nized Stoltzfus as that someone. The two men settled Lockheed Constellation as surplus and, in 1970, sold it on a price somewhat below the $1.5 million desired, at auction to a private buyer—something never repeated and soon Dynamic maintenance crews were shuttling with a former presidential aircraft. between Bridgewater and Marana. Laboring in torrid And now the curvaceous, tri-tailed “Connie” was heat, their goal was to get the Connie ready for ferry- chocked and wilting under the desert sun in Marana, ing to Bridgewater for the full restoration. Arizona, and if it was not On March 8, 2015, moved, it would possibly Stoltzfus flew a King Air be scrapped. That was in Perfect Pairing to Marana to see his prize early October 2014. He first-hand. During his slow, put the magazine down The right man at the right time careful walkaround, his and returned his atten- to save a piece of history heart began to sink. The tion to Dynamic Aviation. Connie was a sorry pile, By way of background, and he realized that re- the reader, Karl Stoltzfus, turning it to glory would in 1967 co-founded what be an overwhelming un- became Dynamic with his dertaking. When he came brother, Ken. Six years back the following day, later, Ken went into the however, he recalls the air- ministry. Meanwhile, Karl plane seemed to scream steadily grew the Bridge- at him: “This is some - water, Virginia, aerial-ap- thing you’re supposed to plication operation with do!” And that, along with DC-3s and Beech 18s and encouragement from avi- even bought its home ation friends, was it.
airport. Then in 1996, the COLUMBINE II On March 18, 2016, the unexpected occurred. city of Marana hosted an The U.S. Army announced it was shedding its fleet airport party with Mary Eisenhower, the 34th presi- of U-21 Utes (unpressurized King Air 90s) and asked dent’s granddaughter, as guest speaker. The purpose for bids. Stoltzfus carefully weighed all aspects of the was to bid farewell to Columbine II. The following day, solicitation, did some calculations and, holding his the old Connie rumbled into the air for the first time in breath, submitted a bid worth $9 million for all 124 air- 13 years. The test flight revealed only minor squawks. craft. And his bid won. What happened subsequently Finally, on March 23, an excited crowd gathered at is another story, albeit a positive one (AW&ST April 28, Bridgewater Air Park to witness history. Soon, Colum- 2014, p. 16). The company today has some 700 employ- bine II roared into view and circled overhead. Despite ees, operates on several continents and counts the U.S. a stiff crosswind, Lockie Christler, a veteran Connie government among its most important customers. and business jet pilot, settled the belching transport Accordingly, the degeneration of what had once on the center of the narrow 2,745-ft.-long runway, roll- been a symbol of America’s technological and global ing to a stop as onlookers waved and cheered. leadership troubled Stoltzfus, a serious student of Since then, 10-20 Dynamic technicians have been history. He called the Connie’s owner to discuss the working daily to resurrect the aircraft. Stoltzfus is bud- situation, and the following week, his brother was on geting $1 million per year to the effort. Asked when that his way to assess the aircraft’s condition. might conclude, he laughs: “I say, ‘Three more years,’ Further background: Karl and Ken’s father ran an no matter when you ask me.” aerial application business in Pennsylvania. As boys, the Dynamic plans to house the Connie in a new hangar smell of avgas and the roar of round engines were con- dedicated to the Eisenhower legacy and will use it to stant. Their alternate schoolhouse was a hangar; their support customers, inspire youngsters and occasion- mentors, airplane mechanics. When the twin brothers ally display at airshows. Stoltzfus says he’s thrilled to were 23, their father bought five dilapidated DC-3s and be “preserving a piece of American history.” sent his sons to fix and fly them home. They did. Karl Once finally restored, he says, “People are going to has since restored a number of winged derelicts. love this airplane.” c So Ken’s scouting assignment was to determine if the Connie was cancerous with corrosion, for if so, Karl William Garvey is Editor-in-Chief of Business & Commercial Aviation
14 AVIATION WEEK & SPACE TECHNOLOGY/JUNE 1-14, 2020 AviationWeek.com/AWST COMMENTARY INSIDE BUSINESS AVIATION WILLIAM GARVEY
HE WAS PAGING THROUGH AN would have none of it. Ken’s report back to Bridgewa- aviation history magazine when an arti- ter: Little corrosion, but “Don’t underestimate the work cle about Columbine II, President Dwight involved.” Alas, Karl was to discover: “He was right.” Eisenhower’s aircraft and the first with The Connie’s owner wanted to sell it to someone the call sign Air Force One, caught his eye. He learned who would restore and preserve it and quickly recog- that the government had declared the four-engine nized Stoltzfus as that someone. The two men settled Lockheed Constellation as surplus and, in 1970, sold it on a price somewhat below the $1.5 million desired, at auction to a private buyer—something never repeated and soon Dynamic maintenance crews were shuttling with a former presidential aircraft. between Bridgewater and Marana. Laboring in torrid And now the curvaceous, tri-tailed “Connie” was heat, their goal was to get the Connie ready for ferry- chocked and wilting under the desert sun in Marana, ing to Bridgewater for the full restoration. Arizona, and if it was not On March 8, 2015, moved, it would possibly Stoltzfus flew a King Air Stay Informed. Stay Connected. be scrapped. That was in Perfect Pairing to Marana to see his prize early October 2014. He first-hand. During his slow, put the magazine down The right man at the right time careful walkaround, his and returned his atten- to save a piece of history heart began to sink. The Stay Engaged. tion to Dynamic Aviation. Connie was a sorry pile, By way of background, and he realized that re- the reader, Karl Stoltzfus, turning it to glory would Access authoritative market insights and analysis along with company, program, in 1967 co-founded what be an overwhelming un- became Dynamic with his dertaking. When he came fleet and contact databases covering the global aviation, aerospace and defense brother, Ken. Six years back the following day, later, Ken went into the however, he recalls the air- communities with an Aviation Week Intelligence Network (AWIN) Membership. ministry. Meanwhile, Karl plane seemed to scream steadily grew the Bridge- at him: “This is some - water, Virginia, aerial-ap- thing you’re supposed to plication operation with do!” And that, along with DC-3s and Beech 18s and encouragement from avi- even bought its home ation friends, was it. airport. Then in 1996, the COLUMBINE II On March 18, 2016, the unexpected occurred. city of Marana hosted an The U.S. Army announced it was shedding its fleet airport party with Mary Eisenhower, the 34th presi- of U-21 Utes (unpressurized King Air 90s) and asked dent’s granddaughter, as guest speaker. The purpose for bids. Stoltzfus carefully weighed all aspects of the was to bid farewell to Columbine II. The following day, solicitation, did some calculations and, holding his the old Connie rumbled into the air for the first time in breath, submitted a bid worth $9 million for all 124 air- 13 years. The test flight revealed only minor squawks. craft. And his bid won. What happened subsequently Finally, on March 23, an excited crowd gathered at is another story, albeit a positive one (AW&ST April 28, Bridgewater Air Park to witness history. Soon, Colum- 2014, p. 16). The company today has some 700 employ- bine II roared into view and circled overhead. Despite ees, operates on several continents and counts the U.S. a stiff crosswind, Lockie Christler, a veteran Connie government among its most important customers. and business jet pilot, settled the belching transport Accordingly, the degeneration of what had once on the center of the narrow 2,745-ft.-long runway, roll- been a symbol of America’s technological and global ing to a stop as onlookers waved and cheered. Become a member today. leadership troubled Stoltzfus, a serious student of Since then, 10-20 Dynamic technicians have been history. He called the Connie’s owner to discuss the working daily to resurrect the aircraft. Stoltzfus is bud- Visit aviationweek.com/AWINinfo to schedule your demo. situation, and the following week, his brother was on geting $1 million per year to the effort. Asked when that his way to assess the aircraft’s condition. might conclude, he laughs: “I say, ‘Three more years,’ Further background: Karl and Ken’s father ran an no matter when you ask me.” aerial application business in Pennsylvania. As boys, the Dynamic plans to house the Connie in a new hangar smell of avgas and the roar of round engines were con- dedicated to the Eisenhower legacy and will use it to stant. Their alternate schoolhouse was a hangar; their support customers, inspire youngsters and occasion- mentors, airplane mechanics. When the twin brothers ally display at airshows. Stoltzfus says he’s thrilled to were 23, their father bought five dilapidated DC-3s and be “preserving a piece of American history.” sent his sons to fix and fly them home. They did. Karl Once finally restored, he says, “People are going to has since restored a number of winged derelicts. love this airplane.” c Or call or So Ken’s scouting assignment was to determine if Anne McMahon at +1 646 291 6353 the Connie was cancerous with corrosion, for if so, Karl William Garvey is Editor-in-Chief of Business & Commercial Aviation Thom Clayton +44 (0) 20 7017 6106
14 AVIATION WEEK & SPACE TECHNOLOGY/JUNE 1-14, 2020 AviationWeek.com/AWST ADVERTORIAL
of helmet-mounted displays and synthetic vision recognized by the Society of Experimental Test systems, with excellent results. Pilots and the Society of Flight Test Engineers. Postgraduate Comprised of about 500 lecture hours and more “Technology is very important. We’re busy forging than 100 hours of flight training on a minimum of ahead and we’re doing some good work with VR, 15 aircraft types, this course thoroughly prepares School of Flying: advanced simulators and certified sims from CAE. students for the professional demands of a test ITPS is leveraging simulation to expand its pro- pilot or flight test engineer career. grams and capabilities.” ITPS Canada The school is able to take the training to the cus- ITPS Canada delivers customized training pro- tomer, having assisted with a helicopter certifica- grams designed to meet the needs of its civilian tion program in China, aircraft modification testing with the Royal Thai Air Force, and military tactical Experienced pilots and aerospace engineers aiming pilots, ITPS produces graduates who are active and military customers, tailoring in-air instruction training in Indonesia and Malaysia. to take their careers to the next level need look no worldwide in major national projects such as the to the type of aircraft most relevant to a student’s future work. further than London, Canada. new T-625 Turkish medium helicopter, the Airbus ITPS Canada is one of just eight accredited test A-400, and the Turkish Hurkus. pilot schools in the world – and one of only four The Southwestern Ontario city, just north of Lake The school offers graduate, diploma and certificate approved by EASA. With its varied fleet, emphasis Erie and the U.S. border, is home to one of the courses for both civil and military pilots that range The school has assembled a unique and diverse on technology and regulatory accreditations, the world’s top training schools for military and civilian from three to 50 weeks in duration. fleet of training aircraft, including the British school is a solid choice for advanced pilot and engi- test pilots and flight test engineers: International Hawker Hunter T75, Aero Vodochody L-39C and Its core product is the one-year Graduate Test Pilot neer training. Test Pilots School (ITPS). Expanding upon this solid L-29, Bombardier Challenger 601 and Embraer and Lead Flight Test Engineer Course, fixed-wing foundation, the school recently added another dimen- Phenom 100 and 300 models, as well as MBB BO- Visit www.itpscanada.com for more information. or rotary, which is EASA CAT-1 compliant and sion by launching the International Tactical Training 105M and Bell 206 helicopters, among others. ITPS Center (ITTC). It focuses on military mission-ori- President Giorgio Clementi said fleet diversity is ented training, including fighter lead-in training, essential to meeting customer needs and preparing mission commander, and fighter weapons and tactics graduates for their new roles. courses. Together, the two divisions fall under parent company ITPS Canada. “ITPS customers operate everything from light aircraft to business jets, civil airliners, military Headquartered at the London International Air- transports, high performance trainers and jet fight- port (CYXU), ITPS Canada delivers both fixed- and ers,” he explained. rotary-wing training on a diverse fleet of 20 aircraft that includes 11 jet trainers, two transonic fighter In 2020, ITPS Canada opened a brand new trainers, a seaplane and a variety of helicopters. 27,000-square-foot hangar and expanded its classroom facilities to 10,000 square feet. The new ITPS teaches civilian and military pilots how to facility unites all training programs under one roof, thoroughly quantify the flying qualities, cockpit allowing for what Clementi called “tremendous workload, and performance envelope of new aircraft synergies” between civilian test pilots and fighter (or modifications to existing platforms) to ensure pilot instructors. safe operations. “It makes for an incredibly stimulating learning Students benefit from a unique combination of environment for the student and a very active expert instructors, training aircraft and technolo- flight organization,” he said, adding that ITPS gy-based learning. Approved by international regu- Canada harnesses new technologies to further latory bodies including the European Union Avia- enhance the student learning experience. tion Safety Agency (EASA) as a flight test training organization for both fixed- and rotary-wing test For example, the cockpits of its L-39 Albatros fleet have been upgraded with full-color touchscreen displays and hands-on throttle and stick controls. Simulation is heavily incorporated into all training programs, and the school employs virtual reality (VR) to boost training effectiveness.
“Two years ago, we introduced virtual reality elements into our avionics systems syllabus,” said Clementi. The school used off-the-shelf hardware and commercial software to teach the evaluation ADVERTORIAL
of helmet-mounted displays and synthetic vision recognized by the Society of Experimental Test systems, with excellent results. Pilots and the Society of Flight Test Engineers. Postgraduate Comprised of about 500 lecture hours and more “Technology is very important. We’re busy forging than 100 hours of flight training on a minimum of ahead and we’re doing some good work with VR, 15 aircraft types, this course thoroughly prepares School of Flying: advanced simulators and certified sims from CAE. students for the professional demands of a test ITPS is leveraging simulation to expand its pro- pilot or flight test engineer career. grams and capabilities.” ITPS Canada The school is able to take the training to the cus- ITPS Canada delivers customized training pro- tomer, having assisted with a helicopter certifica- grams designed to meet the needs of its civilian tion program in China, aircraft modification testing with the Royal Thai Air Force, and military tactical Experienced pilots and aerospace engineers aiming pilots, ITPS produces graduates who are active and military customers, tailoring in-air instruction training in Indonesia and Malaysia. to take their careers to the next level need look no worldwide in major national projects such as the to the type of aircraft most relevant to a student’s future work. further than London, Canada. new T-625 Turkish medium helicopter, the Airbus ITPS Canada is one of just eight accredited test A-400, and the Turkish Hurkus. pilot schools in the world – and one of only four The Southwestern Ontario city, just north of Lake The school offers graduate, diploma and certificate approved by EASA. With its varied fleet, emphasis Erie and the U.S. border, is home to one of the courses for both civil and military pilots that range The school has assembled a unique and diverse on technology and regulatory accreditations, the world’s top training schools for military and civilian from three to 50 weeks in duration. fleet of training aircraft, including the British school is a solid choice for advanced pilot and engi- test pilots and flight test engineers: International Hawker Hunter T75, Aero Vodochody L-39C and Its core product is the one-year Graduate Test Pilot neer training. Test Pilots School (ITPS). Expanding upon this solid L-29, Bombardier Challenger 601 and Embraer and Lead Flight Test Engineer Course, fixed-wing foundation, the school recently added another dimen- Phenom 100 and 300 models, as well as MBB BO- Visit www.itpscanada.com for more information. or rotary, which is EASA CAT-1 compliant and sion by launching the International Tactical Training 105M and Bell 206 helicopters, among others. ITPS Center (ITTC). It focuses on military mission-ori- President Giorgio Clementi said fleet diversity is ented training, including fighter lead-in training, essential to meeting customer needs and preparing mission commander, and fighter weapons and tactics graduates for their new roles. courses. Together, the two divisions fall under parent company ITPS Canada. “ITPS customers operate everything from light aircraft to business jets, civil airliners, military Headquartered at the London International Air- transports, high performance trainers and jet fight- port (CYXU), ITPS Canada delivers both fixed- and ers,” he explained. rotary-wing training on a diverse fleet of 20 aircraft that includes 11 jet trainers, two transonic fighter In 2020, ITPS Canada opened a brand new trainers, a seaplane and a variety of helicopters. 27,000-square-foot hangar and expanded its classroom facilities to 10,000 square feet. The new ITPS teaches civilian and military pilots how to facility unites all training programs under one roof, thoroughly quantify the flying qualities, cockpit allowing for what Clementi called “tremendous workload, and performance envelope of new aircraft synergies” between civilian test pilots and fighter (or modifications to existing platforms) to ensure pilot instructors. safe operations. “It makes for an incredibly stimulating learning Students benefit from a unique combination of environment for the student and a very active expert instructors, training aircraft and technolo- flight organization,” he said, adding that ITPS gy-based learning. Approved by international regu- Canada harnesses new technologies to further latory bodies including the European Union Avia- enhance the student learning experience. tion Safety Agency (EASA) as a flight test training organization for both fixed- and rotary-wing test For example, the cockpits of its L-39 Albatros fleet have been upgraded with full-color touchscreen displays and hands-on throttle and stick controls. Simulation is heavily incorporated into all training programs, and the school employs virtual reality (VR) to boost training effectiveness.
“Two years ago, we introduced virtual reality elements into our avionics systems syllabus,” said Clementi. The school used off-the-shelf hardware and commercial software to teach the evaluation COVID-19 CRISIS > ANSPs’ future p. 22 OEMs and air travel p. 23 FAA changes post-MAX p. 24 Inflight connectivity woes p. 26 F-35 production slowdown p. 27 ONLY THE LUCKY SURVIVE
Jens Flottau Frankfurt, Adrian Schofield Auckland, Bradley Perrett Beijing and Sean Broderick and Ben Goldstein Washington
he airline industry, particularly in the U.S. and Europe, going into the post-COVID-19 restart phase with very high levels of debt. likes to complain that governments are not paying Of the government packages alone, enough attention to its needs even in normal times, $67 billion involve new liabilities. But and that unfair burdens such as high taxes, onerous airlines raised a further $52 billion T in cash from banks, investors and consumer protection rules or growing pressure from environ- lessors. IATA expects debt levels to mentalists hamper it. increase to $550 billion by year-end. IATA Chief Economist Brian Pearce But three months into the global did Lufthansa get its own €9 billion says more airlines could fail under the spread of the novel coronavirus, the ($10 billion) package, preceded by a weight of debt, or governments could predicted mass airline failures have €7 billion deal for Air France-KLM become more involved as debt is con- yet to materialize. Why? Largely be- some weeks earlier. verted into equity at a later stage. cause of the $123 billion that the al- According to the International Air Still, it cannot be said that govern- legedly uncooperative governments Transport Association (IATA), loans ments are not acting. The trouble is have pumped into the sector since make up more than $50 billion of the they are mainly acting in selected March. overall support volume and are by far rich, developed countries that can af- The money was instrumental in the most important type of measure, ford to support their industries. And avoiding bankruptcy filings by the followed by wage subsidies ($34 bil- even among the rich, there are huge world’s largest airline groups in the lion), loan guarantees ($11.5 billion) discrepancies: While the U.S. was pre- U.S. and Europe. The $52 billion and equity fi nancing ($11.2 billion). pared to o er 32% of 2019 airline rev- Coronavirus Aid, Relief, and Econom- Almost regardless of who is pro- enues, according to IATA statistics, ic Security (CARES) Act stabilized viding the support, unless it is in the Canadian airlines received only 1.3%. the U.S. industry, and only on May 25 form of outright grants, airlines are In other large regions, airlines are
1 AVIATION WEEK & SPACE TECHNOLOGY/JUNE 1-14, 2020 AviationWeek.com/AWST COVID-19 CRISIS > ANSPs’ future p. 22 OEMs and air travel p. 23 FAA changes post-MAX p. 24 Inflight connectivity woes p. 26 F-35 production slowdown p. 27 OE IE I ION NE
likelihood of failure. Virgin Australia, owners of TAM Brasil) and Qatar arguably an airline in some level of Airways. Noticeably absent from the > GOVERNMENTS SPEND difficulty before COVID-19 hit, filed group is Delta Air Lines, which owns $123 BILLION ON for bankruptcy after the Australian 20% of LATAM, a stake it acquired government decided to not o er assis- in September 2019 to ensure much ONLY THE AIRLINE RESCUES tance. LATAM Airlines, however, the better access to Latin America. Un- LUCKY latest high-profi le victim, was profi t- der the conditions of the CARES Act, able before the crisis. It was by far the U.S. airlines cannot provide fi nancing > MEASURES HELP largest player in its region, supported to subsidiaries abroad. AVERT BIGGER WAVE by powerful investors such as Delta LATAM left the Oneworld alliance OF BANKRUPTCIES Air Lines and Qatar Airways and on May 1. Delta and LATAM signed SURVIVE about to enter a joint venture with a joint-venture agreement covering Delta, pending regulatory approval. flights between the U.S. and Latin > AIRLINE SECTOR TO Still, LATAM filed for Chapter America, onward connections and ENTER RECOVERY WITH 11 proceedings May 26 at the U.S. frequent-flyer benefits on May 7. Bankruptcy Court for the Southern LATAM Airlines Group was set up HIGH DEBT BURDEN District of New York. in 2012 as a result of the merger of “LATAM entered the COVID-19 LAN and TAM. pandemic as a healthy and profi table Boeing CEO David Calhoun said in airline group, yet exceptional cir- a CNBC interview that the bankrupt- cumstances have led to a collapse in cy of a U.S. airline was “most likely” global demand and brought aviation despite CARES funding, a comment and revenues to a virtual standstill,” that has not made him many new the company stated. “In light of the friends in the airline industry. And industry-wide collapse in demand American Airlines CEO Doug Park- and subsequent fi nancial pressures er, for that matter, then felt he needed caused by COVID-19, we need to take to step up and say that American will further action to ensure our airline not need bankruptcy protection to get group long-term sustainability.” Af- through the current downturn. The fected by the fi ling are LATAM and rest of the large U.S. carriers are in its a liates in Chile, Peru, Colombia, similar shape, he says. Ecuador and the U.S., but not sub- “I don’t think people should view sidiaries in Brazil, Argentina and bankruptcy as a fi nancial tool. I think Paraguay “due to the nature of their it’s failure, [and] we’re not going to do On May 26, LATAM Airlines debt structure and current fi nancial that,” Parker said during a Sanford Jens Flottau Frankfurt, Adrian Schofield Auckland, Bradley Perrett Beijing became the latest high-pro le status,” the company said. Bernstein investor event May 27. and Sean Broderick and Ben Goldstein Washington commercial aviation victim of LATAM is now the second large He added that U.S. airlines are fac- the coronavirus crisis. Latin American airline to file for ing a “demand crisis” caused by the bankruptcy in May, following one of novel coronavirus pandemic, which he airline industry, particularly in the U.S. and Europe, going into the post-COVID-19 restart getting very little or no assistance, ei- its largest rivals in the region, Avian- bankruptcy cannot help. That’s dif- phase with very high levels of debt. ther because governments decided it ca. LATAM is operating only around ferent than unsustainable costs in an likes to complain that governments are not paying Of the government packages alone, is bad policy to pump money into the 5% of its normal schedule and has an- oversaturated environment. “There’s enough attention to its needs even in normal times, $67 billion involve new liabilities. But sector or because they simply can- nounced plans to cut 1,850 of 40,000 no one trying to push anybody else and that unfair burdens such as high taxes, onerous airlines raised a further $52 billion not a ord to do so. Airlines in Latin jobs in the group. According to court out of business,” Parker said. “It’s all T in cash from banks, investors and America and parts of Africa are es- documents, leases for 19 aircraft are about demand. We need demand to consumer protection rules or growing pressure from environ- lessors. IATA expects debt levels to sentially on their own, though there a ected, including two Airbus A350s, come back. mentalists hamper it. increase to $550 billion by year-end. are exceptions such as the Middle one A319, one A320, 11 A321s and four “I think we’re all going to be fi ne,” IATA Chief Economist Brian Pearce East and Persian Gulf, where states Boeing 787-9s. Airbus and Boeing are he added. “I think we’re all going to But three months into the global did Lufthansa get its own €9 billion says more airlines could fail under the have stepped up. “There is very lim- also exposed in terms of orders: LAT- go raise enough liquidity to get our- spread of the novel coronavirus, the ($10 billion) package, preceded by a weight of debt, or governments could ited support in emerging markets,” AM Airlines has outstanding orders selves through this wall.” predicted mass airline failures have €7 billion deal for Air France-KLM become more involved as debt is con- Pearce says. China, where the big for 20 Airbus A320neos, 19 A321neos Parker said American is “on track” yet to materialize. Why? Largely be- some weeks earlier. verted into equity at a later stage. three players are all state-owned as and two A350-1000s, six Boeing 787- to meet its goal of reducing daily cash cause of the $123 billion that the al- According to the International Air Still, it cannot be said that govern- in the Middle East, is a whole di er- 9s and one 777F. It already canceled burn to $50 million in June, adding legedly uncooperative governments Transport Association (IATA), loans ments are not acting. The trouble is ent story. orders for 10 A350s earlier this year. that it will average $70 million for the have pumped into the sector since make up more than $50 billion of the they are mainly acting in selected Airlines everywhere have made Some of its shareholders have com- quarter. The company expects to end March. overall support volume and are by far rich, developed countries that can af- “cash last longer,” as Pearce puts it, mitted to fi nancial support in the re- the second quarter with $11 billion in The money was instrumental in the most important type of measure, ford to support their industries. And by implementing major cost cuts, and structuring in the form of a loan. The liquidity, including both payroll-sus- avoiding bankruptcy filings by the followed by wage subsidies ($34 bil- even among the rich, there are huge the healthier ones that represent ac- financing is provided by the Cueto tainment money and a $4.75 billion world’s largest airline groups in the lion), loan guarantees ($11.5 billion) discrepancies: While the U.S. was pre- ceptable levels of risk to lenders have family, which took control of what government-backed CARES Act loan U.S. and Europe. The $52 billion and equity fi nancing ($11.2 billion). pared to o er 32% of 2019 airline rev- been able to raise cash from banks or was then LAN Airlines in 1994 and that is not fi nalized. Coronavirus Aid, Relief, and Econom- Almost regardless of who is pro- enues, according to IATA statistics, private investors as well. still is the largest shareholder of the A slight uptick in demand will help ic Security (CARES) Act stabilized viding the support, unless it is in the Canadian airlines received only 1.3%. However, there is a correlation broadened group (21.5%), the Ama- by adding much-needed revenue to the U.S. industry, and only on May 25 form of outright grants, airlines are In other large regions, airlines are between the level of support and the ro Group (representing the former the carrier’s co ers. “I’m going to be
1 AVIATION WEEK & SPACE TECHNOLOGY/JUNE 1-14, 2020 AviationWeek.com/AWST AviationWeek.com/AWST AVIATION WEEK & SPACE TECHNOLOGY/JUNE 1-14, 2020 1 COVID-19 CRISIS
Government Support for Airlines Due to COVID-19 (U.S. $ billion)
Loans $50.4
Wage subsidies 34.8
Loan guarantees 11.5
Equity financing 11.2
Ticket taxes 8.5
Corporate taxes 2.6 Operating subsidies/ 1.9 Route funds Cash injections 1.2
Fuel taxes 0.8
Total 123.1
Source: IATA
really careful when we talk about this, Delta Chief Financial Officer Paul softer, totaling 67% for American and because we are still flying only 20% of Jacobson said net sales have improved United and 75% for Delta. Source:our IATA schedule. But on that much-re- modestly, with some recent days of Europe has seen some of the largest duced schedule, we are definitely positive net bookings for the first time bailouts, but they were essentially fo- seeing more demand than we’ve seen in months, citing increased demand cused on Air France-KLM, Lufthansa in prior months,” he said. American’s for beach destinations in Florida and Group and parts of International Air- April load factor was 15%, while the the West Coast. “We think this is real- lines Group. Lufthansa is emerging as U.S. Memorial Day holiday weekend ly driven by an uptick in leisure book- a particularly contentious case, as it saw the average flight 56% full. ings for domestic travel in June and involves the government planning to “These are early returns, but they July,” Jacobson said May 19 on a Wolfe take a 20% equity stake in the airline, are encouraging,” Parker said. “This Research Group investor webcast. raising concerns at the European is much better than it was a few United Airlines has also seen a Commission (EC) that the company’s weeks ago, and it looks better as we reduction in customer cancellation already dominant position in some look out into June.” rates accompanied by a “moderate markets will be further consolidated Further out, barring a stunning improvement” in demand for domes- as other airlines fail to receive the about-face, American and every other tic travel in recent weeks. And South- same level of support. airline locked into maintaining their west Airlines, now the country’s larg- The German government plans to payrolls to meet CARES Act funding est carrier by seats offered, reported inject €5.7 billion in the form of silent requirements until Oct. 1 will have positive month-to-date net bookings participation, provide €3 billion in to get smaller—and fast. American’s through May 18. loans and buy into the equity. Under “goal” remains to shrink using volun- Airlines are adding capacity in certain conditions, the government tary processes, but Parker acknowl- June in preparation for the antici- stake could rise to 30% in the coming edges that will be a challenge. pated upswing. Domestic carriers years, essentially giving it control of “We will need to make sure that we will operate the largest portions of the airline. On the other hand, there rightsize our company accordingly,” their schedules, led by Southwest at are mechanisms in place for the re - he said. “We’re going to try to do that 52% of last summer’s levels. Alaska payment of the loan and the partic- in a way that, hopefully, we wouldn’t Airlines and JetBlue Airways will ipation that foresee rising interest even have to furlough anyone. I know double their seats on offer in June payments in outer years. that sounds like a stretch. It’s a goal; from May, while ultra-low-cost car- Lufthansa’s board delayed a deci- it’s not a commitment.” rier Spirit Airlines is bucking the sion to approve the bailout based on U.S. airline traffic bottomed out on trend with plans to operate just 5% concerns that potential slot remedies April 14, when roughly 88,000 people of its 2019 schedule next month. imposed on it by the EC were too passed through TSA checkpoints, Full-service carriers, with far great- onerous in the long term. But it con- compared to 2.2 million on the same er international exposure, are playing ceded that there are no other viable day last year. Since then, there has it slightly more conservatively. Delta’s options to retain solvency. The airline been a steady uptick in traffic, with mainline June cuts will total roughly earlier had studied filing for the pro- nearly 350,000 people tracked on May 78% of its original schedule, while tective umbrella insolvency scheme 22 ahead of the Memorial Day holiday, United will cut 90% and American will but rejected it because it was seen as the highest daily total in months but cut the least, at 67%. Reductions at being too disruptive for passengers, still down 88% from a year ago. their regional affiliates are somewhat investors and employees.
20 AVIATION WEEK & SPACE TECHNOLOGY/JUNE 1-14, 2020 AviationWeek.com/AWST COVID-19 CRISIS
Government Support for Airlines Due to COVID-19 (U.S. $ billion) State Aid Distribution
Loans $50.4 10 2019 U. . $ 2019
Wage subsidies 34.8 U. . $200 2.
Loan guarantees 11.5 12 2.0
Equity financing 11.2 U 45 .1
Ticket taxes 8.5 J 4 22.1
Corporate taxes 2.6 2 19.5 Operating subsidies/ 1.9 Route funds 2 4.4
Cash injections 1.2 2 1. Fuel taxes 0.8 25 .1 Total 123.1 24 1.