Boeing and Embraer Form J-V by Gregory Polek
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PUBLICATIONS Vol.49 | No.8 $9.00 AUGUST 2018 | ainonline.com Orders flow at Farnborough As AIN went to press last month, airframers were raking in orders. The second day of the event continued the flurry of significant commercial airliner orders. The overall value totaled about $50 billion, taking the total value of new airliner contracts announced at the 2018 show close to $100 billion with a few trade days remaining. Aircraft Gulfstream G500 FAA certified page 6 Rotorcraft Fatigue fracture blamed in EC225 crash page 48 Pilot Report MARK WAGNER Avanti Evo delivers a smooth ride page 32 Boeing and Embraer form J-V by Gregory Polek Boeing will take an 80-percent share of annual pre-tax cost “synergies” of some Boeing CEO Dennis Muilenburg. “This Embraer’s commercial aviation business $150 million by its third year. important partnership clearly aligns with under the terms of a non-binding agree- The companies expect completion of Boeing’s long-term strategy of investing ment announced on July 5. The memo- the financial and operational details of the in organic growth and returning value to randum of understanding proposes the partnership and negotiation of transac- continues on page 9 formation of a joint venture meant to “stra- tion agreements to continue “in the com- tegically align” the companies’ commercial ing months.” The transaction would then Read Our SPECIAL REPORT development, production, marketing, and remain subject to shareholder and regu- lifecycle services operations. Under the latory approvals, including approval from terms of the agreement, Boeing will hold the government of Brazil. Assuming the an 80 percent ownership stake in the joint approvals come in what the joint state- Product Support venture and Embraer will own the remain- ment characterized as a timely manner, the AIN readers rate the support they ing 20 percent stake. companies expect the transaction to close have received in the last year from The transaction values Embraer’s com- by the end of 2019, or 12 to 18 months after the aircraft manufacturers, as the mercial aircraft operations at $4.75 billion execution of the definitive agreements. OEMs outline their latest efforts to and contemplates a value of $3.8 billion “By forging this strategic partnership, keep operators happy—and flying with for Boeing’s 80 percent ownership stake we will be ideally positioned to generate minimal disruption. in the joint venture. Boeing said it expects significant value for both companies’ cus- the partnership will become accretive to its tomers, employees, and shareholders— page 20 earnings per share in 2020 and to generate and for Brazil and the United States,” said PHENOM LIVING THE DREAM “I was always intrigued by the Phenom 300. It was always a dream. And then one day I started to realize that I’m not getting any younger. You can always make more money, but you can’t make more time. So I looked at buying a competitor’s product because I already had that product − and there was nothing wrong with it − but Embraer’s Phenom 300 was one step higher. There’s just not any comparison between the two. The Phenom 300 is the greatest single-pilot plane on the planet, so I made the jump. It is, without a doubt, the best thing I ever did in my life. And I also know that when I roll down that door and walk up that set of stairs, I feel quite powerful because that plane makes a statement. No matter where it goes, it attracts a crowd. It’s been a ride that I can, at the end of the day, look up and say, ‘I’m glad I bought that Phenom 300.’ If I hadn’t, I don’t know what would have happened − I would’ve died without that experience.” - Lance Mortensen , Owner, Mortensen Signature Homes Watch Lance’s story and request more information at EmbraerExecutiveJets.com/Lance The best-selling light jet in the world for six years running, Embraer’s Phenom 300 platform has achieved breakthrough status and dominates as the fastest, longest-range single-pilot aircraft on the market. And now, with the introduction of the brand-new Phenom 300E, a whole new standard in value and customer experience has been set. Designated “E” for “enhanced,” this modern, clean-sheet light jet delivers top-tier performance and next-generation avionics, along with a revolutionary new interior design for improved ergonomics, ease of maintainability, advanced connectivity and unmatched comfort and space. Add to that the industry-exclusive upper technology panel, plus a generous ba age compartment and low operating costs, and it’s easy to see why the Phenom 300E is truly in a class by itself. PHENOM LIVING THE DREAM “I was always intrigued by the Phenom 300. It was always a dream. And then one day I started to realize that I’m not getting any younger. You can always make more money, but you can’t make more time. So I looked at buying a competitor’s product because I already had that product − and there was nothing wrong with it − but Embraer’s Phenom 300 was one step higher. There’s just not any comparison between the two. The Phenom 300 is the greatest single-pilot plane on the planet, so I made the jump. It is, without a doubt, the best thing I ever did in my life. And I also know that when I roll down that door and walk up that set of stairs, I feel quite powerful because that plane makes a statement. No matter where it goes, it attracts a crowd. It’s been a ride that I can, at the end of the day, look up and say, ‘I’m glad I bought that Phenom 300.’ If I hadn’t, I don’t know what would have happened − I would’ve died without that experience.” - Lance Mortensen , Owner, Mortensen Signature Homes Watch Lance’s story and request more information at EmbraerExecutiveJets.com/Lance The best-selling light jet in the world for six years running, Embraer’s Phenom 300 platform has achieved breakthrough status and dominates as the fastest, longest-range single-pilot aircraft on the market. And now, with the introduction of the brand-new Phenom 300E, a whole new standard in value and customer experience has been set. Designated “E” for “enhanced,” this modern, clean-sheet light jet delivers top-tier performance and next-generation avionics, along with a revolutionary new interior design for improved ergonomics, ease of maintainability, advanced connectivity and unmatched comfort and space. Add to that the industry-exclusive upper technology panel, plus a generous ba age compartment and low operating costs, and it’s easy to see why the Phenom 300E is truly in a class by itself. INSIDE this issue 32 FEATURE Cabin Electronics JAMES HOLAHAN (1921-2015), FOUNDING EDITOR & Connectivity WILSON S. LEACH, MANAGING DIRECTOR Airborne Wi-Fi EDITOR-IN-CHIEF – Matt Thurber EXECUTIVE EDITOR - AIN PUBLICATIONS – Mark Phelps access dominates NEWS EDITOR - AIN PUBLICATIONS – Chad Trautvetter customers’ requests MANAGING EDITOR - AIN PUBLICATIONS – Annmarie Yannaco in today’s aircraft. SENIOR EDITORS – Curt Epstein, Kerry Lynch Gregory Polek – Air Transport 26 Ian Sheppard – International ASSOCIATE EDITORS – Samantha Cartaino, Alexa Rexroth as part of its report on the fatal crash in Norway. CONTRIBUTORS AIRPLANES, ENGINES, and UAVs Pete Combs David Jack Kenny – Safety 6 G500 gets FAA certification 48 Fort Worth home to new Bell training airfield Gordon Gilbert Jennifer Leach English John Goglia – Columnist Richard Pedicini 8 PC-24 begins tests on unpaved strips 49 Airbus begins H160 assembly Mark Huber – Rotorcraft James Wynbrandt 9 Q3 estimated for Longitude approval 49 LCI adds helicopter EMS customers GROUP PRODUCTION MANAGER – Tom Hurley Shanghai’s Kingwing and Italy’s Elitaliana PRODUCTION EDITOR – Martha Jercinovich 12 NASA supersonic tester gets X-number – Lysbeth McAleer took delivery of AW139s and AW169s. ASSOCIATE PRODUCTION EDITOR 14 Challenger 350 earns steep approach OK GRAPHIC DESIGNERS – Mona L. Brown, John A. Manfredo, 49 NYC eco department gets AW119Kx Grzegorz Rzekos 20 Product Support, Part I: Aircraft – Michael Giaimo 50 Glass flight deck for MD 530F LEAD DEVELOPER 25 Nordam halts production of PW800 nacelle DEVELOPERS – Nathan Douglas, Ryan Koch Recently approved for retrofit, the cockpit is VIDEO PRODUCER – Ian Whelan 32 Pilot report: Avanti Evo now a production and type-design option. puts the pusherprop through its paces. AIN 50 NASA flies UAS without chase plane GROUP PUBLISHER – David M. Leach 38 Textron to cease Citation X+ production The Ikhana was equipped with detect-and-avoid tech. ASSOCIATE PUBLISHER – Nancy O’Brien The model overlaps with the upcoming Longitude. ADVERTISING SALES Georges France – Western Europe, +33 6 80 21 17 93 42 Future combat aircraft unveiled MAINTENANCE, MODS, and COMPLETIONS Melissa Murphy – Midwestern U.S., +1 (830) 608-9888 Nancy O’Brien – W estern U.S./Western Canada/Asia Pacific, 40 CAMO simplifies ops for small NCCs +1 (530) 241-3534 AIRPORTS and FBOs Outsourcing proves the best option for some operators. Anthony T. Romano – Northeastern U.S./Eastern Canada/Mexico/Brazil 8 Recent rulings prove setbacks in SMO fight Joe Rosone – Mid-Atlantic U.S./Southeast U.S./Caribbean, +1 (301) 693-4687 9 FAA holds position on Part 13 complaints REGULATIONS, GOVERNMENT, ENVIRONMENT Diana Scogna – Italy/Northern Europe/Middle East, 39 Airport takes over FBO services at CRW 6 No action on FAA reauthorization +33 6 62 52 25 47 Victoria Tod – Great Lakes U.S./United Kingdom, 40 Avfuel forges biofuel deal 16 ATC privatization raises questions about data +1 (203) 733-4184 Avfuel will sell Gevo’s sustainable jet fuel. 31 NASA tests noise-reducing tech Yury Laskin – Russia, +7 05 912 1346 AUDIENCE DEVELOPMENT MANAGER – Jeff Hartford 36 NPRM addresses training rule changes AIR TRANSPORT MARKETING AND CLIENT SERVICES MANAGER – Lisa Valladares 38 GAMA expresses Brexit concerns MANAGER OF ONSITE LOGISTICS – Philip Scarano III 14 Despite tarriff threat, Boeing takes positive view Industry needs information to act, association says.