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Why T-X Losers UK to EASA How NASA Is Europe’s Flight Plan Are Not Quitting ‘Cheerio’ Cutting Red Tape for AI in Aviation
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FEATURES 16 | Ground Stop Airlines and OEMs seek bailouts and scramble to regroup as the coronavirus crisis rages 28 | UK EASA Exit Industry is not impressed with the UK’s plans to break from the European regulator 33 | Quantifying the benefits of PROPULSION ADS-B In applications 50 | NASA planning electrified 36 | T-X Redux propulsion flight demonstrations A new U.S. Air Force contract BUSINESS called the RFX revives hope for 34 | Lockheed signals change is URBAN AIR MOBILITY the losing T-X contract bidders coming with new CEO 52 | Transcend Air refines design 48 | South American Defense DEFENSE for intercity VTOL We spotlight some of the defense 38 | As USAF fleet plans evolve, can TECHNOLOGY requirements that could translate F-35A program survive intact? into new acquisitions this decade 53 | Europe guiding industry on 40 | MDA seeks two-year schedule applying AI to aviation 56 | Building Artemis bump for new GBI option NASA speeds procurement SPACE processes to meet 2024 deadline 41 | Possible new “engine war” 54 | Northrop partners with DARPA to land crew on Moon recasts P&W as champion of to build robotic satellite servicer competition 57 | SLS cost overrun triggers DEPARTMENTS 42 | Marines dial back UAS strategy congressional alert 6 | Feedback 14 | Leading Edge 43 | U.S. Army pushes ahead with 58 | SpaceX founder bemoans slow 7 15 | Who’s Where | Launch Pad Black Hawk replacement pace of innovation 8-9 | First Take 64 | Classified 10 | Up Front 65 | Contact Us 44 | Korean Air designs stealth 62 | Space Force ups the launch ante 12 | Going Concerns 65 | Aerospace drone demonstrator EDITORIAL Calendar 46 | Post-Brexit defense review 66 | Commercial aviation will survive challenged by costs and the coronavirus and thrive again COMMERCIAL AVIATION coronavirus 24 | COVID-19 outbreak ushers in new cabin-cleaning techniques ON THE COVER Air transport ground to a halt in many parts of the world as the COVID-19 pandemic tightened its 26 | ET302 interim report piles on grip on Europe and North America. Starting on page 16, Aviation Week’s global team of reporters MAX, ignores pilots provides an in-depth look at the biggest crisis ever to hit the commercial air transport industry—and 30 | UK regions could suffer from how aircraft manufacturers and their suppliers are bracing for financial carnage in the coming months. Flybe failure fallout Photo by John Lund /Getty Images Aviation Week publishes a digital edition every week. Read it at AviationWeek.com/AWST 31 | Europe’s LCCs embark on new partnerships DIGITAL EXTRAS Access exclusive online features from articles accompanied by this icon.
AviationWeek.com/AWST AVIATION WEEK & SPACE TECHNOLOGY/MARCH 23-APRIL 5, 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 Phone: +1 (212) 204-4200 Bureau Chiefs Auckland Adrian [email protected] Beijing GoGo beyondbeyond thethe newsnews ofof thethe Bradley Perrett [email protected] dayday withwith AviationAviation WWeekeek Cape Canaveral Irene Klotz [email protected] IntelligenceIntelligence Network’sNetwork’s Chicago Lee Ann Shay [email protected] Market Briefi ngs. Frankfurt Jens Flottau [email protected] Houston These sector-specifi c intelligence Mark Carreau [email protected] briefi ngs empower busy Kuala Lumpur executives to stay-ahead of the Marhalim Abas [email protected] London market, identify opportunities and Tony Osborne [email protected] drive revenue. Los Angeles Guy Norris [email protected] Lyon Thierry Dubois [email protected] Moscow LEARN MORE: Maxim Pyadushkin [email protected] aviationweek.com/marketbriefi ngs New Delhi Jay Menon [email protected] Paris Helen Massy-Beresford [email protected] Washington Jen DiMascio [email protected] Wichita Molly McMillin [email protected]
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4 AVIATION WEEK & SPACE TECHNOLOGY/MARCH 23-APRIL 5, 2020 AviationWeek.com/AWST Editor-In-Chief Joseph C. Anselmo [email protected] Executive Editors Jen DiMascio (Defense and Space) [email protected] Jens Flottau (Commercial Aviation) [email protected] WHEN 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, INNOVATION 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 STRIKES, 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 THE MISSION Content Marketing Manager Rija Tariq Data & Analytics Director, Forecasts and Aerospace Insights Brian Kough Senior Manager, Data Operations/Production Terra Deskins SUCCEEDS. 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 Phone: +1 (212) 204-4200 Bureau Chiefs Auckland Adrian [email protected] Beijing GoGo beyondbeyond thethe newsnews ofof thethe Bradley Perrett [email protected] dayday withwith AviationAviation WWeekeek Cape Canaveral Irene Klotz [email protected] IntelligenceIntelligence Network’sNetwork’s Chicago Lee Ann Shay [email protected] Market Briefi ngs. Frankfurt Jens Flottau [email protected] Houston These sector-specifi c intelligence Mark Carreau [email protected] briefi ngs empower busy Kuala Lumpur executives to stay-ahead of the Marhalim Abas [email protected] London market, identify opportunities and Tony Osborne [email protected] drive revenue. Los Angeles Guy Norris [email protected] Lyon Thierry Dubois [email protected] Moscow LEARN MORE: Maxim Pyadushkin [email protected] aviationweek.com/marketbriefi ngs New Delhi JOINT STRIKE MISSILE Jay Menon [email protected] Paris Helen Massy-Beresford [email protected] Powered by 5th-generation technology, Joint Strike Missile Washington Jen DiMascio [email protected] (JSM) delivers proven performance and precision against Wichita today’s evolving threats. JSM’s stand-off range of up to 350 Molly McMillin [email protected] miles keeps pilots out of harm’s way, accurately engaging President, Aviation Week Network adversaries and enabling the mission. Gregory Hamilton Managing Director, Intelligence & Data Services Anne McMahon RAYTHEON.COM/JSM
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WHICH ENGLISH? these unsalable aircraft, although one of If each of these crews had main- Elizabeth Mathews is right in her Howard Hughes’ former girlfriends did tained configuration, climbed to a safe analysis (March 9-22, p. 12), but which make an offer. maneuvering altitude and leveled off, English language are we talking about? The 880, however, proved its tough- the MCAS would never have come into I remember an AW&ST paper titled ness when the machines the contractor play. Public reports to date indicate “Translating English into English” at had used successfully some years ear- neither crew ever reduced power from the time the U.S. bought British AV-8B lier to chop up then-retiring Constel- takeoff thrust. This allowed the aircraft Harriers. lations failed to do serious damage to to eventually accelerate to Vmco and the 880s. Incidentally, Elvis’ 880 was beyond, making manual trim inputs Andre Fournerat, Charenton-le-Pont, acquired by Delta Air Lines through impossible due to air loads. France its purchase of Northeast Airlines, also The above crashes are not the only owned by Hughes. ones where lack of the flight crew’s As an aside, the CJ805 that powered ability to manually fly the aircraft was the 880, in addition to being fuel-hun- a factor. Asian Airlines 214, Air France gry, was almost certainly the most unre- 447 and Atlas Air 3591 are just three liable engine ever produced by GE. Yet additional examples where airline flight it may have been the source of that com- crews unsuccessfully attempted to pany’s later success because, in spite of manually fly the aircraft. the engine’s troubles, the company’s My suggestions are to first strong- customer service in dealing with them ly recommend that when one mode IN PICTURES LTD/CORBIS/GETTY IMAGES IN PICTURES LTD/CORBIS/GETTY effectively paved the way for industry (autopilot) is disconnected, the oth- acceptance later. er automation mode (auto-throttle) also be disconnected. This leaves no LOCAL LANGUAGES Robin H. H. Wilson, Seattle doubt that the pilot is controlling both As an ICAO English language profi- modes. My second suggestion is that ciency rater and head of training, I MANUAL PROFICIENCY recurrent training include some time could not agree more with Elizabeth I applaud the recent move toward spent at both high and low altitudes in Mathews’ comments on English including simulator training as part manual flight. language testing requirements and of the Boeing 737 MAX return to All pilots should have confidence especially with regard to required service reported in “Boeing MAX that when necessary they can manu- training for aviation professionals Simulator Training Is Taking Shape” ally control the aircraft in all phases (March 9-22, p. 12). (Feb. 27-March 8, p. 20). As a former of flight. However, one of the biggest threats airline captain and line check airman, to airline pilots operating in a global I observed an increasing tendency by David A Vecchi, Park City, Utah environment is the persistent use of lo- pilots to defer to automation and a cal language by controllers and pilots reluctance to fly the aircraft manually. PUMP PRESSURE alike. Fly into Madrid or Paris any day, This is a very disturbing trend. The article “Refueling Revisited” and 50% of the crucial air traffic control While aircraft manufacturers contin- (Feb. 27-March. 8, p. 42) states: “The communication is conducted in Spanish ue to move toward automation (to one Air Force uses a boom that can pump or in French. day incorporate artificial intelligence) up to 880 gal. per minute while the As long as we tolerate this arrogance, to prevent flight outside the aircraft drogue system can pump 220-290 gal. all our other efforts will bear little fruit. envelope, these “fixes” are years away. at the same rate.” And when, despite the designer’s best Gallons per minute is a rate type Helmut Kunz, Ratingen, Germany efforts, automation fails, pilots must measurement. I believe it should state still be proficient at taking over manu- “at the same pressure.” ‘TOUGH OLD BIRD’ ally and putting the aircraft in a stable As a follow-up to Lee Guthrie’s sis- attitude, troubleshooting the issue and Kerry Moore, Round Rock, Texas ter’s recall of the “beautiful Convair returning the aircraft to a safe landing. 880” (March 9-22, p. 6), I should add In the case of both 737 MAX crashes, that, from personal experience, the the original “abnormal” had nothing to 880 was a “tough old bird.” As vice do with the Maneuvering Character- CLARIFICATION president of technical services for istics Augmentation System (MCAS). “Once-Abandoned Light-Attack Acqui- TWA in the 1970s, I was responsible The original malfunction was the angle sition Revived, Again” (Feb. 27-March 8, for the mechanical performance of its of attack/stall warning system, which p. 50) should have stated that other fleet, which then included 24 880s ac- also affected one of the pilots’ airspeed aircraft besides the Iomax are in con- quired by its former owner, Howard and altimeter indications. tention for Mission Set 2. Hughes, who established its specifica- tions with Convair. When those gas-guzzling airplanes Address letters to the Editor-in-Chief, Aviation Week & Space Technology, were grounded by the fuel prices fol- 2121 K Street, NW, Suite 210, Washington, DC, 20037 or send via email to: lowing the 1973-74 oil embargo, I inher- [email protected] Letters may be edited for length and clarity; ited responsibility for the parting-out of a verifiable address and daytime telephone number are required.
6 AVIATION WEEK & SPACE TECHNOLOGY/MARCH 23-APRIL 5, 2020 AviationWeek.com/AWST FEEDBACK WHO’S WHERE
WHICH ENGLISH? these unsalable aircraft, although one of If each of these crews had main- has been hired affairs at Kymeta Corp. and vice presi- Elizabeth Mathews is right in her Howard Hughes’ former girlfriends did tained configuration, climbed to a safe Tiphaine Louradour corporate planning and financial as International dent of trade policy and export control analysis (March 9-22, p. 12), but which make an offer. maneuvering altitude and leveled off, strategy. Ward was global head of Launch Services for EADS North America. English language are we talking about? The 880, however, proved its tough- the MCAS would never have come into finance at BCG Digital Ventures and president. Louradour Bollore Logistics I remember an AW&ST paper titled ness when the machines the contractor play. Public reports to date indicate group-level chief financial officer for had been president has promoted “Translating English into English” at had used successfully some years ear- neither crew ever reduced power from Yves Computer Science Corp. He began his of global commercial to CEO of the time the U.S. bought British AV-8B lier to chop up then-retiring Constel- takeoff thrust. This allowed the aircraft Laforgue career at Lockheed Martin. sales at United Launch the Americas region Harriers. lations failed to do serious damage to to eventually accelerate to Vmco and Pentastar Aviation has hired Brent Alliance. from Asia-Pacific the 880s. Incidentally, Elvis’ 880 was beyond, making manual trim inputs Hanson as account manager and cli- BAE Systems has chief operating officer. Andre Fournerat, Charenton-le-Pont, acquired by Delta Air Lines through impossible due to air loads. ent relations representative. Hanson promoted Tom Arseneault to president He succeeds Tony France its purchase of Northeast Airlines, also The above crashes are not the only was regional sales director for Tex- and chief executive officer from pres- Rodrigues. owned by Hughes. ones where lack of the flight crew’s tron Aviation. ident and chief operating officer. He Killick Aerospace Group has hired Bill As an aside, the CJ805 that powered ability to manually fly the aircraft was Lockheed Martin has elected U.S. succeeds Jerry DeMuro, who moves to Molloy as chief operating officer, a new the 880, in addition to being fuel-hun- a factor. Asian Airlines 214, Air France Marine Corps Gen. (ret.) Joseph F. BAE executive vice president of stra- position. Molloy held various leader- gry, was almost certainly the most unre- 447 and Atlas Air 3591 are just three Dunford, Jr. to its board. He will serve tegic initiatives and will serve on the ship positions in both the commercial liable engine ever produced by GE. Yet additional examples where airline flight on the classified business and security U.S. board. and business aircraft divisions at Bom- it may have been the source of that com- crews unsuccessfully attempted to and nominating and corporate gov- Airbus has appoint- bardier Aerospace. pany’s later success because, in spite of manually fly the aircraft. ernance committees. He is a former ed CACI International has named the engine’s troubles, the company’s My suggestions are to first strong- Richard Franklin chairman of the Joint Chiefs of Staff. as managing director Daniel Walsh senior vice president and customer service in dealing with them ly recommend that when one mode 2Excel Aviation has named Stuart IN PICTURES LTD/CORBIS/GETTY IMAGES IN PICTURES LTD/CORBIS/GETTY of Airbus Defence and corporate strategic advisor for its na- effectively paved the way for industry (autopilot) is disconnected, the oth- Stanyard, former Rolls-Royce finance Space in the UK. He tional defense and homeland security acceptance later. er automation mode (auto-throttle) director, to its board. succeeds Colin Payn- business. He was White House deputy also be disconnected. This leaves no VOX Space, a launch services ter, who is retiring. chief of staff for operations, director LOCAL LANGUAGES Robin H. H. Wilson, Seattle doubt that the pilot is controlling both provider for the national security Franklin will continue and deputy director of the White As an ICAO English language profi- modes. My second suggestion is that community, has named U.S. Air Force to lead the secure communications House military office, a military aide ciency rater and head of training, I MANUAL PROFICIENCY recurrent training include some time Maj. Gen. (ret.) Susan Mashiko to its business line, which includes the UK to former Presidents George W. Bush could not agree more with Elizabeth I applaud the recent move toward spent at both high and low altitudes in board. Her career has Defense Ministry’s Skynet 5 secure mili- and Barack Obama and an instructor Mathews’ comments on English including simulator training as part manual flight. spanned a variety of tary satellite communications pilot/aircraft commander for military language testing requirements and of the Boeing 737 MAX return to All pilots should have confidence space and acquisition The National Air Transportation fixed-wing aircraft. especially with regard to required service reported in “Boeing MAX that when necessary they can manu- assignments, includ- Association has promoted Timothy R. ePropelled has named Gary Cardone training for aviation professionals Simulator Training Is Taking Shape” ally control the aircraft in all phases ing as chief of the Obitts to president and CEO from chief vice president and head of the elec- (March 9-22, p. 12). (Feb. 27-March 8, p. 20). As a former of flight. Programs Division in operating officer. He succeedsGary tro-magnetic motor company’s en- However, one of the biggest threats airline captain and line check airman, the Office of Special Dempsey, who has stepped down. gineering and product development to airline pilots operating in a global I observed an increasing tendency by David A Vecchi, Park City, Utah Projects and director SunExpress has team. He was director of technology environment is the persistent use of lo- pilots to defer to automation and a of the Evolved Expendable Launch named and director and vice president of cal language by controllers and pilots reluctance to fly the aircraft manually. PUMP PRESSURE Max Vehicle Program. as CEO, product development. alike. Fly into Madrid or Paris any day, This is a very disturbing trend. The article “Refueling Revisited” Kownatzki General Dynamics has elected John subject to board ap- Aerion Supersonic has hired Matthew and 50% of the crucial air traffic control While aircraft manufacturers contin- (Feb. 27-March. 8, p. 42) states: “The G. Stratton to its board. Stratton was proval. He succeeds Mejia as chief financial officer and communication is conducted in Spanish ue to move toward automation (to one Air Force uses a boom that can pump executive vice president and president , who executive vice president of strategy or in French. day incorporate artificial intelligence) up to 880 gal. per minute while the Jens Bischof of global operations at Verizon and will become CEO of and investor relations. Mejia has held As long as we tolerate this arrogance, to prevent flight outside the aircraft drogue system can pump 220-290 gal. held various leadership positions at Eurowings. Kownatzki leadership positions with the aerospace all our other efforts will bear little fruit. envelope, these “fixes” are years away. at the same rate.” Bell Atlantic Mobile, its predecessor. was a senior vice pres- practices at Booz & Co. and Charles And when, despite the designer’s best Gallons per minute is a rate type Mercury Systems has appointed ident at Lufthansa River Associates, among others. Helmut Kunz, Ratingen, Germany efforts, automation fails, pilots must measurement. I believe it should state Orlando P. Carvalho, former executive Group’s Hub Airlines. AAR has named still be proficient at taking over manu- “at the same pressure.” Jessica A. Garascia vice president of Lockheed Martin Northrop Grum- as general counsel. ‘TOUGH OLD BIRD’ ally and putting the aircraft in a stable aeronautics, to its board. man has elected Da- Garascia was USG As a follow-up to Lee Guthrie’s sis- attitude, troubleshooting the issue and Kerry Moore, Round Rock, Texas The Massachusetts Institute of vid F. Keffer corporate Corp. deputy general ter’s recall of the “beautiful Convair returning the aircraft to a safe landing. Technology has named Greg Olson vice president and counsel, overseeing 880” (March 9-22, p. 6), I should add In the case of both 737 MAX crashes, the Thermo- Calc Professor of the chief financial officer. all mergers and that, from personal experience, the the original “abnormal” had nothing to Practice in the Materials Science Keffer succeedsKenneth Bedingfield, acquisitions, com- 880 was a “tough old bird.” As vice do with the Maneuvering Character- CLARIFICATION and Engineering Department. Olson who has left the company. Keffer was a pliance, corporate president of technical services for istics Augmentation System (MCAS). “Once-Abandoned Light-Attack Acqui- co-founded metal-alloys developer Blue Delta Capital partner and before governance and se- QuesTek Innovations and was a ten- TWA in the 1970s, I was responsible The original malfunction was the angle sition Revived, Again” (Feb. 27-March 8, that chief financial officer at CSRA and curities law. ured professor of materials science for the mechanical performance of its of attack/stall warning system, which p. 50) should have stated that other SRA International. The Aerospace Corp. has appointed and engineering at Northwestern fleet, which then included 24 880s ac- also affected one of the pilots’ airspeed aircraft besides the Iomax are in con- HawkEye 360 has hired Dennis Bur- Victor Ward as general manager of University. c quired by its former owner, Howard and altimeter indications. tention for Mission Set 2. nett as executive vice president and Hughes, who established its specifica- general counsel of the formation-flying tions with Convair. To submit information for the Who’s Where column, send Word or attached text files (no satellite, data collection and analytics When those gas-guzzling airplanes Address letters to the Editor-in-Chief, Aviation Week & Space Technology, PDFs) and photos to: [email protected] For additional information on company. Burnett was consulting were grounded by the fuel prices fol- 2121 K Street, NW, Suite 210, Washington, DC, 20037 or send via email to: companies and individuals listed in this column, please refer to the Aviation Week Intelligence principal at LMI Advisors, chief coun- lowing the 1973-74 oil embargo, I inher- Letters may be edited for length and clarity; Network at AviationWeek.com/awin For information on ordering, telephone [email protected] sel of regulatory and government ited responsibility for the parting-out of a verifiable address and daytime telephone number are required. U.S.: +1 (866) 857-0148 or +1 (515) 237-3682 outside the U.S.
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Mitsubishi Aircraft on March 18 flew the world, has invested in Skyports, a UK TAKE first SpaceJet prototype conforming developer of infrastructure for passen- For the latest, go to to the revised, certifiable design of the ger and cargo urban air mobility. AVIATIONWEEK.COM regional jet. Certification of the initial M90 version has slipped to 2021. Chinese electric vertical-takeoff-and- landing (eVTOL) developer has signed an agreement with the city of Seville to launch its first urban air mobility pilot program in Spain.
COVID-19 IMPACTS Facing coronavirus-related travel restric-
SIKORKSY-BOEING tions, airline capacity cuts are reaching 90%, more than 40 carriers have stopped DEFENSE flying altogether, and the number keeps The U.S. Army has awarded Bell and a LONGVIEW AIRCRAFT SERVICES rising. Multiple bankruptcies are expect- Sikorsky-Boeing team two-year compet- ed before the industry recovers (page 16). itive-demonstration and risk-reduction Canada’s Longview Aviation Services contracts for the Future Long-Range flew the initial CL-215 amphibian up- Arianespace on March 16 suspended Assault Aircraft to replace the UH-60 graded to a CL-415EAF Enhanced Ae- its launch preparation activities at Black Hawk (page 43). rial Firefighter on March 10, the first Europe’s spaceport in Kourou, French of six ordered by Bridger Aerospace of Guiana, as a precaution. The U.S. Air Force has finalized a deal with Montana. Textron Aviation for two AT-6 Wolver- NASA on March 17 ordered all employees ines to join two Sierra Nevada/Embraer French startup VoltAero has begun to work at home, with only mission-crit- A-29 Super Tucanos already ordered by flight testing its Cassio 1 hybrid-elec- ical personnel being allowed on sites Air Force Special Operations Command. tric regional-aircraft testbed equipped throughout the U.S. with two 45-kW motors supplied by Sa- Mitsubishi Electric will supply four air- fran Electrical & Power. Airbus paused production at its defense radars to the Philippines, in Ja- French and Spanish facilities for four pan’s most significant arms sale since it Irelandia Aviation, which is behind five days, starting March 17, to implement lifted a self-imposed ban on exporting different low-cost carriers around the new health and safety measures. military equipment in 2014. VIEW FROM WASHINGTON The U.S. Air Force is scrambling to ac- quire Gulfstream G550s to complete the EC-37B Compass Call rehost program NASA Keeps Eyes Fixed on Return to Orbit ahead of a possible production shut- The COVID-19 pandemic may have caused NASA to shutter its down, despite no official change in the centers, but the agency is working with SpaceX toward a mid-to-late- company’s outlook for the jet. May launch of astronauts Bob Behnken and Doug Hurley on the first manned Crew Dragon flight to the International Space Station (ISS). Behnken and Hurley, both veterans of two space shuttle missions, will comprise the first crew to fly aboard a U.S. orbital spaceship since the shuttle Atlantis completed the 135th and final flight of
the program in July 2011. Hurley was the pilot on that mission. Their return to orbit will be to test SpaceX’s Dragon 2 space- craft following the company’s successful Demo-1 uncrewed trial
DGAEMT ARMEES run to the ISS in March 2019. A firm launch date for the crewed flight test, Demo-2, has not been set, but NASA on March 18 European missile manufacturer MBDA has completed the first qualification issued a press advisory targeting a mid-to-late May timeframe. firing of its Anglo-French Sea Venom/ Behnken and Hurley, colonels in the U.S. Air Force and U.S. Anti-Navire Leger anti-ship missile Marine Corps, respectively, have been training for a possible ex- from an AS365 Dauphin helicopter. tended stay on the ISS, which is currently understaffed.
COMMERCIAL AVIATION Hurley’s commander on the final shuttle mission, retired NASA Boeing is to modify wiring in undelivered astronaut Chris Ferguson, joined Boeing in 2011 and is in training, 737 MAXs before handing them over to along with NASA astronauts Nicole Aunapu Mann and Michael customers, but is still working with the Fincke, for a crewed flight aboard Boeing’s CST-100 Starliner, FAA and operators on how to manage possibly later this year. grounded aircraft in customers’ fleets.
8 AVIATION WEEK & SPACE TECHNOLOGY/MARCH 23-APRIL 5, 2020 AviationWeek.com/AWST FIRST
Mitsubishi Aircraft on March 18 flew the world, has invested in Skyports, a UK On March 18, a French Air Force Airbus Smallsat launch company Rocket Lab TAKE first SpaceJet prototype conforming developer of infrastructure for passen- A330 tanker/transport equipped with has reached a deal to acquire Toronto- For the latest, go to to the revised, certifiable design of the ger and cargo urban air mobility. the Morphee intensive-care module based satellite hardware supplier Sin- AVIATIONWEEK.COM regional jet. Certification of the initial began transferring COVID-19 patients clair Interplanetary. M90 version has slipped to 2021. Chinese electric vertical-takeoff-and- from overloaded hospitals. landing (eVTOL) developer has signed The first Orion spacecraft, scheduled an agreement with the city of Seville to Textron Aviation plans to begin four- for an unmanned mission as part of launch its first urban air mobility pilot week furloughs for most of its 7,000 NASA’s Artemis lunar program, has program in Spain. U.S. employees on March 23 and will passed key space environment tests. adjust Cessna and Beechcraft produc- COVID-19 IMPACTS tion rates to anticipated lower demand. AVIATION WEEK NETWORK Facing coronavirus-related travel restric-
SIKORKSY-BOEING tions, airline capacity cuts are reaching Airbus UK and Rolls-Royce are among 90%, more than 40 carriers have stopped companies that responded to a UK DEFENSE flying altogether, and the number keeps government call for the rapid pro - The U.S. Army has awarded Bell and a LONGVIEW AIRCRAFT SERVICES rising. Multiple bankruptcies are expect- duction of medical ventilators to treat Sikorsky-Boeing team two-year compet- ed before the industry recovers (page 16). people with the coronavirus. itive-demonstration and risk-reduction Canada’s Longview Aviation Services contracts for the Future Long-Range flew the initial CL-215 amphibian up- Arianespace on March 16 suspended SPACE Assault Aircraft to replace the UH-60 graded to a CL-415EAF Enhanced Ae- its launch preparation activities at The European Space Agency and Rus- Bryan Perkins (center), Ann Speed and Black Hawk (page 43). rial Firefighter on March 10, the first Europe’s spaceport in Kourou, French sia’s Roscosmos have postponed their Joanna Speed (far left), Greg Hamilton and of six ordered by Bridger Aerospace of Guiana, as a precaution. joint ExoMars 2020 mission to 2022, as Joe Anselmo (far right). The U.S. Air Force has finalized a deal with Montana. testing could not be completed before NASA Textron Aviation for two AT-6 Wolver- NASA on March 17 ordered all employees this summer’s launch window. AWARDED ines to join two Sierra Nevada/Embraer French startup VoltAero has begun to work at home, with only mission-crit- At the 34th Annual SpeedNews Com- OBITUARY A-29 Super Tucanos already ordered by flight testing its Cassio 1 hybrid-elec- ical personnel being allowed on sites No reason has been given for the mercial Aviation Industry Suppliers Alfred “Al” Worden, command Air Force Special Operations Command. tric regional-aircraft testbed equipped throughout the U.S. March 16 failure of the first flight of the Conference in Los Angeles on March module pilot on the Apollo 15 mis- with two 45-kW motors supplied by Sa- second version of China’s Long March 10, the Aviation Week Network pre - sion to the Moon, died March 18 Mitsubishi Electric will supply four air- fran Electrical & Power. Airbus paused production at its 7 medium-heavy spacecraft from Wen- sented the Sixth Annual Gilbert W. in Texas. He was 88. Worden was defense radars to the Philippines, in Ja- French and Spanish facilities for four chang on Hainan. Speed Award to Bryan Perkins, CEO a U.S. Air Force test pilot before pan’s most significant arms sale since it Irelandia Aviation, which is behind five days, starting March 17, to implement and cofounder of Novaria Group. He being selected by NASA as an as- lifted a self-imposed ban on exporting different low-cost carriers around the new health and safety measures. SpaceX’s 20th and final Dragon 1 cap- received the award from Ann Speed, tronaut in 1966. On Aug. 5, 1971, military equipment in 2014. sule reached the International Space Managing Director for A&D Events on the return trip from the Moon, VIEW FROM WASHINGTON Station early March 9 to deliver a 4,300- Joanna Speed, Aviation Week Network Worden became the first person to to ac- lb. cargo, including crew supplies and President Greg Hamilton and AW&ST The U.S. Air Force is scrambling carry out a deep-space spacewalk, quire Gulfstream G550s to complete the science and technology payloads. Editor-in-Chief Joe Anselmo. describing it as an “unbelievable EC-37B Compass Call rehost program NASA Keeps Eyes Fixed on Return to Orbit ahead of a possible production shut- The COVID-19 pandemic may have caused NASA to shutter its place to be.” He became a senior down, despite no official change in the centers, but the agency is working with SpaceX toward a mid-to-late- aerospace scientist and later chief company’s outlook for the jet. May launch of astronauts Bob Behnken and Doug Hurley on the first 80 YEARS AGO of the Systems Study Division at IN AVIATION WEEK the NASA Ames Research Center. manned Crew Dragon flight to the International Space Station (ISS). After retiring from NASA and the The new B-24 bomber graced the cover Behnken and Hurley, both veterans of two space shuttle missions, Air Force in 1975, Worden became of our April 1, 1940, edition as part of an an aerospace industry executive. will comprise the first crew to fly aboard a U.S. orbital spaceship advertisement for Pratt & Whitney, which since the shuttle Atlantis completed the 135th and final flight of supplied the aircraft’s four Twin Wasp en-
the program in July 2011. Hurley was the pilot on that mission. gines. Developed by Consolidated Aircraft Their return to orbit will be to test SpaceX’s Dragon 2 space- of San Diego, the B-24 was conceived as PROMOTED craft following the company’s successful Demo-1 uncrewed trial a faster, longer-range cousin to the B-17, Lockheed Martin has tapped an aero- designed to fly up to 290 mph and carry space veteran to lead the Pentagon’s DGAEMT ARMEES run to the ISS in March 2019. A firm launch date for the crewed flight test, Demo-2, has not been set, but NASA on March 18 a 5,000-lb. (2,268-kg.) bomb for 1,700 largest contractor starting June 15. MBDA Board member Jim Taiclet was named European missile manufacturer issued a press advisory targeting a mid-to-late May timeframe. mi. Dubbed the “Liberator,” the B-24 was has completed the first qualification mass-produced during World War II and de- to also be CEO and president. Current firing of its Anglo-French Sea Venom/ Behnken and Hurley, colonels in the U.S. Air Force and U.S. ployed by the U.S. and UK to every theater, chief executive Marillyn Hewson will Anti-Navire Leger anti-ship missile Marine Corps, respectively, have been training for a possible ex- bombing Axis targets, protecting maritime become executive chairman (page 34). from an AS365 Dauphin helicopter. tended stay on the ISS, which is currently understaffed. convoys, scouting and destroying U-boats Alain Bellemare is stepping down as Hurley’s commander on the final shuttle mission, retired NASA and softening German defenses during the COMMERCIAL AVIATION president and CEO of Bombardier, Boeing is to modify wiring in undelivered astronaut Chris Ferguson, joined Boeing in 2011 and is in training, D-Day invasion of France. A total of 18,482 having overseen a radical restructur- 737 MAXs before handing them over to along with NASA astronauts Nicole Aunapu Mann and Michael B-24s were built before production ended Read every issue of Aviation Week ing of the Canadian company. He will customers, but is still working with the Fincke, for a crewed flight aboard Boeing’s CST-100 Starliner, in 1945, making it the most produced back to 1916 at: be succeeded by Eric Martel, current bomber of all time. FAA and operators on how to manage possibly later this year. archive.aviationweek.com president and CEO of Hydro-Quebec grounded aircraft in customers’ fleets. and a former Bombardier executive. c
8 AVIATION WEEK & SPACE TECHNOLOGY/MARCH 23-APRIL 5, 2020 AviationWeek.com/AWST AviationWeek.com/AWST AVIATION WEEK & SPACE TECHNOLOGY/MARCH 23-APRIL 5, 2020 9 COMMENTARY UP FRONT KEVIN MICHAELS
THE RECENT PASSING OF FORMER OEMs, while the lower tiers of the supply chain were GE CEO Jack Welch may represent more bled of working capital. Today, many subtier suppliers than the loss of the icon named Manager are fragile, and their ability to invest in the future—let of the Century by Fortune magazine in alone ride out a crisis like the 737 MAX production 1999. It may also symbolize the passing of an era in cap- shutdown—is diminished compared to a decade ago. italism—“shareholders first”—that Welch did so much What about customers? On the one hand, brutal to promulgate. What does this have to do with today’s competition between Airbus and Boeing held jetliner aerospace industry? Plenty, as it turns out. prices relatively flat over the past 15 years. On the other Before the “shareholders first” mantra took hold in hand, customer satisfaction in the aftermarket and cus- the 1990s, publicly traded companies considered four tomer support is suffering. In last year’s AeroDynamic stakeholders in allocating capital: customers, local com- Advisory/Aviation Week Network customer satisfac- munities, employees and suppliers, and shareholders. tion survey, just one out of 41 OEMs received a positive net promoter score from airlines. The manifestation of the “share- Rethinking ‘Shareholders First’ holders first” philosophy is very negative for a long-cycle industry Our long-cycle, innovation-driven industry is out of balance like aerospace, which faces enor- mous challenges—including sus- Before Welch took over in 1981, GE Average Annual Boeing tainable development—that will publicly stated it valued workers and Expenditures, 2017-18 require large sums of R&D. Boeing, research labs before shareholders. Af- . . $ for example, spent an average of ter 20 years of relentless focus on pro- $12.8 billion in share buybacks and ductivity, cost-cutting and shedding $14 dividends in 2018 and 2019, while more than 100,000 jobs, GE’s market averaging just $2.2 billion in R&D. 12 capitalization skyrocketed from $12 bil- This is not just a Boeing problem; lion to an astounding $410 billion. Much 10 it is a corporate America prob- of this profit growth was driven by fi- 5. lem. In 2018, share buybacks and nancial services rather than traditional dividends for the S&P 500 were an manufacturing. astounding 109% of net income, ac- Encouraged by the late economist cording to The Wall Street Journal. Milton Friedman and success stories 4 This disparity points to another such as GE, aerospace executives be- 2 issue: Companies are taking on gan to adopt “shareholders first” in the debt to fund shareholder gener- 1990s. McDonnell Douglas famously 0 osity. This is not sustainable in embraced this philosophy and focused Share R&D the long run and leaves no capital on quarterly earnings while refusing Buybacks and to invest in customers, suppliers, Dividends to invest in new civil aircraft. Its CEO, employees or local communities. Source: Boeing Harry Stonecipher, eventually took the Source: Boeing Contrast this behavior with leadership helm at Boeing. Responding to the percep- OEM customer Delta Air Lines, which earned $6.5 bil- tion that he was only interested in making money, he lion in 2019. It shared $1.6 billion (16.7%) of that with responded, “You’re right, I am.” employees—a record amount for a U.S. company. This Employees were the first casualty, with unions translates into improved employee morale and in turn weakened and raises curtailed. For example, until re- improved customer satisfaction, higher yields and cently, Honeywell International imposed mandatory growing market share. unpaid leave on its employees—while it was making Don’t get me wrong. I am a pro-business, free-trade 20% margins. As employees lost pace, so did local capitalist who depends on increasing stock prices to communities. In the early 2000s, the number of em- fund his retirement. Making money and rewarding ployees in low-wage countries became a key perfor- shareholders is a good thing. However, our long-cycle, mance indicator. New aerospace clusters in places innovation-driven industry is clearly out of balance. such as China, Eastern Europe and Mexico followed “Shareholders first” needs to be replaced by a more suit. The blind push to leverage labor-arbitrage has balanced version of capitalism if the aerospace in- ebbed in recent years, but the compact of secure em- dustry is to thrive in the long run. The change must ployment was violated, and employee morale suffered. originate not only from aerospace leaders, including A decade later, suppliers became the target of OEM the new CEOs of Airbus and Boeing, but also from the supply chain cost-reduction initiatives with double-digit boards that evaluate them and set priorities. c price reduction demands, longer payment terms, af- termarket royalty payments and other concessions. Contributing columnist Kevin Michaels is managing director of Market capitalization shifted from suppliers to the AeroDynamic Advisory in Ann Arbor, Michigan.
10 AVIATION WEEK & SPACE TECHNOLOGY/MARCH 23-APRIL 5, 2020 AviationWeek.com/AWST COMMENTARY UP FRONT KEVIN MICHAELS
THE RECENT PASSING OF FORMER OEMs, while the lower tiers of the supply chain were GE CEO Jack Welch may represent more bled of working capital. Today, many subtier suppliers than the loss of the icon named Manager are fragile, and their ability to invest in the future—let of the Century by Fortune magazine in alone ride out a crisis like the 737 MAX production 1999. It may also symbolize the passing of an era in cap- shutdown—is diminished compared to a decade ago. italism—“shareholders first”—that Welch did so much What about customers? On the one hand, brutal to promulgate. What does this have to do with today’s competition between Airbus and Boeing held jetliner aerospace industry? Plenty, as it turns out. prices relatively flat over the past 15 years. On the other Before the “shareholders first” mantra took hold in hand, customer satisfaction in the aftermarket and cus- the 1990s, publicly traded companies considered four tomer support is suffering. In last year’s AeroDynamic TO CHANGE. stakeholders in allocating capital: customers, local com- Advisory/Aviation Week Network customer satisfac- munities, employees and suppliers, and shareholders. tion survey, just one out of 41 OEMs received a positive net promoter score from airlines. The manifestation of the “share- Rethinking ‘Shareholders First’ holders first” philosophy is very negative for a long-cycle industry Our long-cycle, innovation-driven industry is out of balance like aerospace, which faces enor- mous challenges—including sus- Before Welch took over in 1981, GE Average Annual Boeing tainable development—that will publicly stated it valued workers and Expenditures, 2017-18 require large sums of R&D. Boeing, research labs before shareholders. Af- . . $ for example, spent an average of ter 20 years of relentless focus on pro- $12.8 billion in share buybacks and ductivity, cost-cutting and shedding $14 dividends in 2018 and 2019, while more than 100,000 jobs, GE’s market averaging just $2.2 billion in R&D. 12 capitalization skyrocketed from $12 bil- This is not just a Boeing problem; lion to an astounding $410 billion. Much 10 it is a corporate America prob- of this profit growth was driven by fi- 5. lem. In 2018, share buybacks and nancial services rather than traditional dividends for the S&P 500 were an manufacturing. astounding 109% of net income, ac- Encouraged by the late economist cording to The Wall Street Journal. Milton Friedman and success stories 4 This disparity points to another such as GE, aerospace executives be- 2 issue: Companies are taking on gan to adopt “shareholders first” in the debt to fund shareholder gener- It’s no wonder the C295 is the undisputed 1990s. McDonnell Douglas famously 0 osity. This is not sustainable in leader of its field. With unparalleled embraced this philosophy and focused Share R&D the long run and leaves no capital on quarterly earnings while refusing Buybacks and to invest in customers, suppliers, versatility, it’s at home performing a Dividends to invest in new civil aircraft. Its CEO, employees or local communities. Source: Boeing variety of missions. Air to air refuelling, Harry Stonecipher, eventually took the Source: Boeing Contrast this behavior with leadership helm at Boeing. Responding to the percep- OEM customer Delta Air Lines, which earned $6.5 bil- search and rescue, troop transport and a tion that he was only interested in making money, he lion in 2019. It shared $1.6 billion (16.7%) of that with wide range of surveillance duties. And to responded, “You’re right, I am.” employees—a record amount for a U.S. company. This top it all, its simple, robust design, means Employees were the first casualty, with unions translates into improved employee morale and in turn weakened and raises curtailed. For example, until re- improved customer satisfaction, higher yields and it has the lowest fuel and maintenance cently, Honeywell International imposed mandatory growing market share. costs in the category. Visit us online unpaid leave on its employees—while it was making Don’t get me wrong. I am a pro-business, free-trade to find more reasons why the C295 is 20% margins. As employees lost pace, so did local capitalist who depends on increasing stock prices to communities. In the early 2000s, the number of em- fund his retirement. Making money and rewarding the best-selling medium range tactical ployees in low-wage countries became a key perfor- shareholders is a good thing. However, our long-cycle, airlifter in the world. mance indicator. New aerospace clusters in places innovation-driven industry is clearly out of balance. such as China, Eastern Europe and Mexico followed “Shareholders first” needs to be replaced by a more Versatility. We make it fly. suit. The blind push to leverage labor-arbitrage has balanced version of capitalism if the aerospace in- ebbed in recent years, but the compact of secure em- dustry is to thrive in the long run. The change must ployment was violated, and employee morale suffered. originate not only from aerospace leaders, including A decade later, suppliers became the target of OEM the new CEOs of Airbus and Boeing, but also from the supply chain cost-reduction initiatives with double-digit boards that evaluate them and set priorities. c price reduction demands, longer payment terms, af- termarket royalty payments and other concessions. Contributing columnist Kevin Michaels is managing director of Market capitalization shifted from suppliers to the AeroDynamic Advisory in Ann Arbor, Michigan. airbus.com
10 AVIATION WEEK & SPACE TECHNOLOGY/MARCH 23-APRIL 5, 2020 AviationWeek.com/AWST COMMENTARY GOING CONCERNS MICHAEL BRUNO
THE COVID-19 OUTBREAK IS THE fleets there, and partner for local production of nonpro- biggest punch to the gut commercial avi- prietary parts and systems for emerging Chinese fleets. ation has taken since the Sept. 11, 2001, But China is ramping up efforts to get its own fleet into terrorist attacks. And coming on the operation and is pairing with Russian suppliers more of- heels of the Boeing 737 MAX crisis, Airbus and Boeing ten. Any growth in overall aerospace trade likely would widebody production rate cuts, U.S. trade wars and the have to come from a jump in Chinese orders of Airbus flight-shaming movement in Europe, the coronavirus or Boeing airliners, which was not widely expected in emergency is challenging the aerospace manufacturing the wake of the Jan. 16 trade truce and is not anticipat- sector and its global supply chain. ed now after the recent plummet in Chinese air traffic. Is the historic upcycle of commercial aircraft or- Although collapsing demand worldwide for air travel ders over? Will orders be canceled and deferred? Will could have a devastating effect on A&D manufactur- business aviation go out of ing and supply, executives favor? Only time will tell, do not consider it likely. but it has been interesting Sharp Shock COVID-19 quickly turned to hear what aerospace How the coronavirus crisis is likely to into a short, sharp shock and defense (A&D) exec- to the system, but industry utives are worrying about. alter the aerospace supply chain leaders see the same un- First, lost revenue from derlying macro conditions disrupted operations in driving long-term growth. China is not among their Chief among them: ex- worries. Practically no one panding middle classes in A&D manufacturing has worldwide that spend revised their 2020 finan- more discretionary funds cial forecasts—provided in traveling by air for leisure. January or February—be- During the 2020 Avia- cause of COVID-19 alone. tion Summit in Washing- “To date, we have no ton, new Collins Aerospace reported cases of our em- President Stephen Timm ployees having contracted was asked if the airliner- the virus, and the direct customer landscape could impact to our trading ac- look a lot different in com- tivities has been minimal,” ing years due to the scare. Senior Plc CEO David SPIRIT AEROSYSTEMS “Frankly, we’re going to Squires said March 2. see differences,” Timm said. “This will be a blip—a se- Likewise, GE CEO Larry Culp did not change the rious blip that we have to deal with today—but com- company’s financial outlook because COVID-19 was pared with the macro aerospace industry, we’re in a already cited in a forecast given last month. “In our really good place.” view, in all likelihood it is going to be temporary, but it Where do industry insiders see change coming to doesn’t mean it is going to disappear tomorrow,” Culp the supply chain? For one thing, COVID-19 could help said at a March 4 shareholder briefing. deepen resistance to business travel, said some at- To be sure, some OEMs and suppliers with Chinese tending Aviation Week’s Annual Aerospace Raw Mate- operations had to shut down in recent weeks due to rials and Manufacturers Supply Chain Conference on COVID-19. But those factories are back up, and the March 9-12. That would exacerbate the ongoing drop in impact to revenue was limited. For instance, only 20 of demand for widebodies. Triumph Group’s roughly 5,000 active suppliers are lo- Still, the biggest change could come in accelerating cated in China or South Korea. All 20 remain operation- a budding shift in A&D supply from globalization to al, and no supply chain interruptions have occurred. regionalization. Executives and consultants at both the On the supply side, the glancing blow could have a lot Wharton Aerospace Conference on Feb. 29 and Aviation to do with the fact that not much in Western aerospace Week’s supply chain event discussed how COVID-19 ce- is sourced in China. According to U.S. Commerce De- ments a belief that just-in-time global supply chains are partment data, the U.S. imports just $1.1 billion annu- too risky and not worth the lower cost anymore. ally in aircraft, spacecraft and related parts. What is Instead, they look to capitalize on aerospace manu- more, that figure has been dropping since 2016—be- facturing hubs in Asia, Europe-North Africa and North fore the U.S.-China trade war—and was expected to America to supply themselves. The trend could start fall off a cliff for 2019 and 2020 regardless of the “Phase with aerostructures for future single-aisle airliners, es- One” trade deal truce. pecially as composite materials are increasingly incor- China always was a twofold market for U.S. aerospace: porated. “From a colocation strategy,” says one supplier Sell parts and services to existing Western-supplied executive, “you will see it in the next-gen airplanes.” c
12 AVIATION WEEK & SPACE TECHNOLOGY/MARCH 23-APRIL 5, 2020 AviationWeek.com/AWST COMMENTARY DISCOVER GOING CONCERNS ANALYZE PLAN MICHAEL BRUNO FORECAST
THE COVID-19 OUTBREAK IS THE fleets there, and partner for local production of nonpro- biggest punch to the gut commercial avi- prietary parts and systems for emerging Chinese fleets. ation has taken since the Sept. 11, 2001, But China is ramping up efforts to get its own fleet into terrorist attacks. And coming on the operation and is pairing with Russian suppliers more of- heels of the Boeing 737 MAX crisis, Airbus and Boeing ten. Any growth in overall aerospace trade likely would widebody production rate cuts, U.S. trade wars and the have to come from a jump in Chinese orders of Airbus flight-shaming movement in Europe, the coronavirus or Boeing airliners, which was not widely expected in emergency is challenging the aerospace manufacturing the wake of the Jan. 16 trade truce and is not anticipat- sector and its global supply chain. ed now after the recent plummet in Chinese air traffic. Is the historic upcycle of commercial aircraft or- Although collapsing demand worldwide for air travel ders over? Will orders be canceled and deferred? Will could have a devastating effect on A&D manufactur- business aviation go out of ing and supply, executives favor? Only time will tell, do not consider it likely. but it has been interesting Sharp Shock COVID-19 quickly turned to hear what aerospace How the coronavirus crisis is likely to into a short, sharp shock and defense (A&D) exec- to the system, but industry utives are worrying about. alter the aerospace supply chain leaders see the same un- First, lost revenue from derlying macro conditions disrupted operations in driving long-term growth. China is not among their Chief among them: ex- Predictive Intelligence worries. Practically no one panding middle classes in A&D manufacturing has worldwide that spend revised their 2020 finan- more discretionary funds cial forecasts—provided in traveling by air for leisure. to Drive Results January or February—be- During the 2020 Avia- cause of COVID-19 alone. tion Summit in Washing- “To date, we have no ton, new Collins Aerospace reported cases of our em- President Stephen Timm ployees having contracted was asked if the airliner- the virus, and the direct customer landscape could impact to our trading ac- look a lot different in com- With Aviation Week Network’s 2020 Fleet & MRO Forecast, tivities has been minimal,” ing years due to the scare. Senior Plc CEO David SPIRIT AEROSYSTEMS “Frankly, we’re going to gain a 10-year outlook to minimize risk and maximize revenue. Squires said March 2. see differences,” Timm said. “This will be a blip—a se- Likewise, GE CEO Larry Culp did not change the rious blip that we have to deal with today—but com- • Fleets, trends, and projections company’s financial outlook because COVID-19 was pared with the macro aerospace industry, we’re in a already cited in a forecast given last month. “In our really good place.” • Predictive view of market share view, in all likelihood it is going to be temporary, but it Where do industry insiders see change coming to doesn’t mean it is going to disappear tomorrow,” Culp the supply chain? For one thing, COVID-19 could help • MRO future demand said at a March 4 shareholder briefing. deepen resistance to business travel, said some at- To be sure, some OEMs and suppliers with Chinese tending Aviation Week’s Annual Aerospace Raw Mate- operations had to shut down in recent weeks due to rials and Manufacturers Supply Chain Conference on Take your business to the next level. COVID-19. But those factories are back up, and the March 9-12. That would exacerbate the ongoing drop in impact to revenue was limited. For instance, only 20 of demand for widebodies. Triumph Group’s roughly 5,000 active suppliers are lo- Still, the biggest change could come in accelerating cated in China or South Korea. All 20 remain operation- a budding shift in A&D supply from globalization to For more information, visit al, and no supply chain interruptions have occurred. regionalization. Executives and consultants at both the On the supply side, the glancing blow could have a lot Wharton Aerospace Conference on Feb. 29 and Aviation aviationweek.com/forecasts to do with the fact that not much in Western aerospace Week’s supply chain event discussed how COVID-19 ce- or call 866.857.0148 is sourced in China. According to U.S. Commerce De- ments a belief that just-in-time global supply chains are partment data, the U.S. imports just $1.1 billion annu- too risky and not worth the lower cost anymore. or +1.847.763.9147 ally in aircraft, spacecraft and related parts. What is Instead, they look to capitalize on aerospace manu- more, that figure has been dropping since 2016—be- facturing hubs in Asia, Europe-North Africa and North Available for: fore the U.S.-China trade war—and was expected to America to supply themselves. The trend could start COMMERCIAL fall off a cliff for 2019 and 2020 regardless of the “Phase with aerostructures for future single-aisle airliners, es- One” trade deal truce. pecially as composite materials are increasingly incor- MILITARY China always was a twofold market for U.S. aerospace: porated. “From a colocation strategy,” says one supplier BUSINESS Sell parts and services to existing Western-supplied executive, “you will see it in the next-gen airplanes.” c HELICOPTER
12 AVIATION WEEK & SPACE TECHNOLOGY/MARCH 23-APRIL 5, 2020 AviationWeek.com/AWST COMMENTARY LEADING EDGE GRAHAM WARWICK
COMMERCIAL SPACE’S FAST PACE additionally challenging,” says Todd Master, DARPA and the risks it is taking on are illustrated program manager. by DARPA’s Launch Challenge, which end- The departure of VOX removed the need for hori- ed on March 2 without the $12 million in zontal launch sites, so DARPA reduced the choice of prize money being claimed. locations to two: Kodiak, Alaska, and Wallops Island, Initiated in April 2018, the challenge was intended to Virginia. “As we got closer to launch, we realized we demonstrate a flexible and responsive “anywhere, any- would be holding open a bunch of ranges and launch time” capability to launch small satellites to low Earth dates,” Master says. orbit (LEO) on demand. It was purpose-designed to Astra was given 72 days’ notice that the first flight harness commercial industry’s efforts to dramatically would be from the Pacific Spaceport Complex at reduce the cost and time to launch. Kodiak, but—instead of forcing it to pack up after Competitors would be given weeks, not years, notice launch and move across the country—DARPA decid- of the launch site, payload and orbit, and just days to ed the second flight would be from another pad 1,000 set up and launch. A successful flight to LEO would ft. away at Kodiak. win $2 million and a chance to secure the $10 million “We didn’t want to make this a logistics challenge grand prize by launch- or a regulatory chal- ing a second time, just lenge,” Master says. weeks later, from a “Whether we moved different site, to a dif- 5,000 mi. or 1,000 ft., ferent orbit with a dif- Hard Space the technical challeng- ferent payload. DARPA learns the risks of es associated with it Dozens of compa- and the benefit of nies registered, 18 working with commercial what we are trying to prequalified and, in space startups demonstrate remained April 2019, the DARPA the same.” named three finalists: Conducting both Vector Launch, Virgin launches from Kodiak Orbit subsidiary VOX simplified the regula- Space and an uniden- tory process, making tified startup in stealth it easier to meet re- mode. They covered quirements for flight both vertical and hor- safety analysis and izontal launch options, ASTRA closing airspace. “But and DARPA identified four possible launch sites across the team was still not sure until 30 days out what the the U.S. final trajectory would be,” he says. But the commercial industry was evolving quickly. The launch window established by DARPA opened Vector withdrew from the challenge last September, on Feb. 17. Astra was able to transport its container- citing financial issues. In December, with its small-sat- ized launch vehicle to Kodiak, set up on a bare pad, ellite launcher still unflown, the startup filed for bank- integrate a DARPA-supplied payload, complete pre- ruptcy protection. flight procedures and attempt a launch. Formed to pursue the U.S. national-security market, But on March 2, 53 sec. from liftoff, Astra scrubbed VOX withdrew in October 2019 to allow parent Virgin the launch because of a sensor anomaly, and the win- Orbit to focus on the first commercial flights of its dow closed, ending the challenge without a single flight. LauncherOne. The first test of the air-launched boost- “We set aggressive but achievable goals. Astra got close er is imminent. but did not achieve them,” Master says. The surviving challenge competitor was revealed in While disappointed, Master praises Astra for taking February as Alameda, California-based Astra, founded on the challenge, which it says did achieve several of the by former NASA Chief Technology Officer Chris Kemp goals set, including speeding up the regulatory process- and Adam London, whose company, Ventions, formed es required to approve a launch. Undeterred, DARPA the basis of the startup. is looking again at how to demonstrate that flexible and By the time Astra was revealed as the sole partic- responsive space launch can be valuable in battle. ipant, the character of the challenge had changed. In Astra’s first rocket is called “1 of 3” because it expects 2018, DARPA not only had anticipated multiple com- it will take three launches to reach orbit. Its participa- petitors but also had expected them to complete sever- tion in the challenge was always high-risk. “We were 53 al test launches before the challenge flights. sec. from launch, and there was nothing at that site just But delays at Astra meant the first launch under days before,” says London. “We knew it was a long shot, the challenge would be the first flight for its rocket. but we understand how strategic responsive launch is “Astra’s first launch moved to this year, which made it to the government.” c
14 AVIATION WEEK & SPACE TECHNOLOGY/MARCH 23-APRIL 5, 2020 AviationWeek.com/AWST COMMENTARY COMMENTARY LEADING EDGE THE LAUNCHPAD GRAHAM WARWICK IRENE KLOTZ
COMMERCIAL SPACE’S FAST PACE additionally challenging,” says Todd Master, DARPA ELON MUSK WAS DREAMING BIG in 2020, he’d be like: ‘That’s crazy.’ Yet, we are. We don’t and the risks it is taking on are illustrated program manager. when he founded SpaceX in 2002 at the want to be in that situation.” by DARPA’s Launch Challenge, which end- The departure of VOX removed the need for hori- tender age of 30. He’s the first to admit While the fruits of SpaceX’s labor on the Crew Dragon ed on March 2 without the $12 million in zontal launch sites, so DARPA reduced the choice of all the mistakes he has made in what may prove to be a program are at hand, Musk has turned his attention to prize money being claimed. locations to two: Kodiak, Alaska, and Wallops Island, quixotic quest to help humanity evolve into a multiplanet the design and test of the Starship deep-space trans- Initiated in April 2018, the challenge was intended to Virginia. “As we got closer to launch, we realized we species. But what irks him the most is that 18 years lat- port, a two-stage, fully reusable system for passengers demonstrate a flexible and responsive “anywhere, any- would be holding open a bunch of ranges and launch er—and with age 50 clearly in sight—Musk is still waiting and cargo. “Moving ahead in the human exploration of time” capability to launch small satellites to low Earth dates,” Master says. to fl y people in space. space depends completely on a fully and rapidly reusable orbit (LEO) on demand. It was purpose-designed to Astra was given 72 days’ notice that the first flight “It’s great that we’re about to launch people to orbit; rocket,” says Musk. “Without that, we’re going nowhere.” harness commercial industry’s efforts to dramatically would be from the Pacific Spaceport Complex at it’s been a long time—18 years. You could have [had] If building the behemoth Starship was not challeng- reduce the cost and time to launch. Kodiak, but—instead of forcing it to pack up after a kid and have sent him o to college by now,” Musk ing enough, Musk simultaneously wants to ensure the Competitors would be given weeks, not years, notice launch and move across the country—DARPA decid- quipped during the Satellite 2020 keynote address in system can be manufactured rapidly—one Starship ev- of the launch site, payload and orbit, and just days to ed the second flight would be from another pad 1,000 Washington on March 9. ery three days. SpaceX has reached a high production set up and launch. A successful flight to LEO would ft. away at Kodiak. win $2 million and a chance to secure the $10 million “We didn’t want to make this a logistics challenge Musk bemoans the slowness grand prize by launch- or a regulatory chal- Stepping Up the Pace of human space ight innovation
ing a second time, just lenge,” Master says. ASA weeks later, from a “Whether we moved different site, to a dif- 5,000 mi. or 1,000 ft., ferent orbit with a dif- Hard Space the technical challeng- ferent payload. DARPA learns the risks of es associated with it Dozens of compa- and the benefit of nies registered, 18 working with commercial what we are trying to prequalified and, in space startups demonstrate remained April 2019, the DARPA the same.” named three finalists: Conducting both Vector Launch, Virgin launches from Kodiak Orbit subsidiary VOX simplified the regula- Space and an uniden- tory process, making tified startup in stealth it easier to meet re- mode. They covered quirements for flight both vertical and hor- safety analysis and izontal launch options, ASTRA closing airspace. “But and DARPA identified four possible launch sites across the team was still not sure until 30 days out what the SpaceX CEO Elon Musk, left, with NASA’s Bob Behnken, one of two astronauts slated for a ight test on Dragon 2 this spring. the U.S. final trajectory would be,” he says. But the commercial industry was evolving quickly. The launch window established by DARPA opened SpaceX and Boeing were selected in 2014 by NASA rate with its Starlink internet satellites, pumping out 6-7 Vector withdrew from the challenge last September, on Feb. 17. Astra was able to transport its container- to develop and fl y commercially owned and operated spacecraft per day, but nothing close to that rate with its citing financial issues. In December, with its small-sat- ized launch vehicle to Kodiak, set up on a bare pad, space taxis to the International Space Station (ISS), Falcon rocket fl eet. ellite launcher still unflown, the startup filed for bank- integrate a DARPA-supplied payload, complete pre- with fi rst launch expected in 2017. At one time, SpaceX planned to produce 40 or so ruptcy protection. flight procedures and attempt a launch. Following a successful docking of an uncrewed Drag- Falcon core stages per year, says company President Formed to pursue the U.S. national-security market, But on March 2, 53 sec. from liftoff, Astra scrubbed on 2 capsule at the ISS in March 2019 and a demonstra- and Chief Operating Oª cer Gwynne Shotwell. But that VOX withdrew in October 2019 to allow parent Virgin the launch because of a sensor anomaly, and the win- tion of Dragon’s infl ight launch abort system in January rate of production became unnecessary once SpaceX fi - Orbit to focus on the first commercial flights of its dow closed, ending the challenge without a single flight. 2020, SpaceX is preparing for a crewed fl ight to the ISS nalized a booster design that is expected to fl y 10 times LauncherOne. The first test of the air-launched boost- “We set aggressive but achievable goals. Astra got close as early as May. The mission will be the fi rst to launch with minimal refurbishment between launches. The er is imminent. but did not achieve them,” Master says. astronauts into orbit from the United States since the company’s fl eet leader launched for an unprecedented The surviving challenge competitor was revealed in While disappointed, Master praises Astra for taking end of the space shuttle program in 2011. fi fth time on May 18. February as Alameda, California-based Astra, founded on the challenge, which it says did achieve several of the “The thing that concerns me most right now is that Boosting Falcon fi rst-stage manufacturing to 40 per by former NASA Chief Technology Officer Chris Kemp goals set, including speeding up the regulatory process- unless we improve our rate of innovation dramatically, year, however, would have helped the company learn and Adam London, whose company, Ventions, formed es required to approve a launch. Undeterred, DARPA then there is no chance of a base on the Moon or a city more about improving production techniques, Shotwell the basis of the startup. is looking again at how to demonstrate that flexible and on Mars,” Musk says. adds. “Manufacturing is hard to do, and I think the U.S. By the time Astra was revealed as the sole partic- responsive space launch can be valuable in battle. “We need to be very careful about getting stuck in has kind of lost the magic. We have a lot to learn from ipant, the character of the challenge had changed. In Astra’s first rocket is called “1 of 3” because it expects a ‘low-Earth maximum,’” he says like what happened others.” 2018, DARPA not only had anticipated multiple com- it will take three launches to reach orbit. Its participa- during the 1981-2011 space shuttle program or with Rus- Musk wants a fl eet of 1,000 Starships, but he is start- petitors but also had expected them to complete sever- tion in the challenge was always high-risk. “We were 53 sia’s Soyuz spacecraft, currently the only transportation ing to feel the heavy hand of time. “If we don’t improve al test launches before the challenge flights. sec. from launch, and there was nothing at that site just system for station crew ferry fl ights. our pace of progress, I’m defi nitely going to be dead be- But delays at Astra meant the first launch under days before,” says London. “We knew it was a long shot, “Why does Soyuz still fl y? It was designed in the fore we go to Mars,” he says. the challenge would be the first flight for its rocket. but we understand how strategic responsive launch is 1950s,” says Musk. “If you told [Soviet designer] Sergei Which may explain Musk’s latest mantra: “If the “Astra’s first launch moved to this year, which made it to the government.” c Korolev and the other guys that we’d still be fl ying Soyuz schedule is long, the design is wrong.” c
14 AVIATION WEEK & SPACE TECHNOLOGY/MARCH 23-APRIL 5, 2020 AviationWeek.com/AWST AviationWeek.com/AWST AVIATION WEEK & SPACE TECHNOLOGY/MARCH 23-APRIL 5, 2020 1 COMMERCIAL AVIATION > COVID-19 and cabins p. 24 ET302 report p. 26 UK-EASA break p. 28 Flybe failure fallout p. 30 European LCCs p. 31 GROUND STOP
dustry look like when that happens? AIR TRANSPORT HAS NEARLY HALTED IN MANY Who will be left, and who will be gone? > Will demand for air travel return to PARTS OF THE WORLD previous levels, given the unprec- edented shock the global economy AIRLINES PLAN FOR EXTENDED GROUNDING is now experiencing? And will con- > tainment of the coronavirus be more successful than anticipated, ushering > I ATA: INDUSTRY NEEDS $200 BILLION in a quicker-than-expected return to relative normalcy? FROM GOVERNMENTS What is clear is that the industry that emerges from the crisis will need to reset its business model. Over the Jens Flottau Frankfurt, Sean Broderick and Ben Goldstein past fi ve years, U.S. airlines spent 96% Washington, Helen Massy-Beresford Paris, Adrian Schofield of their free cash fl ow on stock buy- backs—which boost the share price— Auckland and Bradley Perrett Beijing and dividends, leaving little cushion for bad times. ust over two years ago, American Airlines Chairman And those bad times could be worse than anyone imagined. As re- and CEO Doug Parker surveyed the U.S. airline land- cently as December, the International scape and saw an unstoppable industry. “I don’t think Air Transport Association (IATA) ex- we’re ever going to lose money again,” he proclaimed. pected the industry to turn a $29 bil- J lion net profi t in 2020. Three months “We have an industry that’s going to be profi table in good and later, IATA is forecasting a year-end- bad times.” loss of $40 billion, similar to what was seen in the 2008-09 global fi nancial The bad times have arrived, as any Numerous bankruptcies are expect- meltdown. IATA Director General airline executive in the world can at- ed before the airline industry moves Alexandre de Juniac says the indus- test. As COVID-19 spreads and an ev- into some kind of recovery mode. try will require $150-200 billion in er-increasing number of countries go When that will happen is anyone’s government assistance to overcome into lockdown, global air transport is guess, but the longer the devastating liquidity shortfalls. grinding to a halt. Travel restrictions groundings continue, the less will be De Juniac believes one outcome of abound, capacity cuts are reaching left of what had been a prospering the crisis will be industry consolida- 90% of normal levels, and more than industry globally. tion, as carriers are forced out of busi- 40 airlines have stopped fl ying alto- The questions now: When will prof- ness or form larger airlines to survive. gether, a number that is rising daily. itability return, and what will the in- And aircraft manufacturers and sup-
A depressing sight at airports worldwide—empty gates waiting for aircraft.
1 AVIATION WEEK & SPACE TECHNOLOGY/MARCH 23-APRIL 5, 2020 AviationWeek.com/AWST COMMERCIAL AVIATION > COVID-19 and cabins p. 24 ET302 report p. 26 UK-EASA break p. 28 Flybe failure fallout p. 30 European LCCs p. 31 Airline Liquidity* pliers will feel the pinch in the coming months as the effects
of deferred or canceled orders Months ripple through the industry (see 10 page 21). GROUND STOP 9 IATA Chief Economist Brian Pearce projects that the average 8 dustry look like when that happens? airline has a little more than two 7 AIR TRANSPORT HAS NEARLY HALTED IN MANY Who will be left, and who will be gone? months’ worth of cash to cover 6 > Will demand for air travel return to fi xed costs. “There is a growing 5 PARTS OF THE WORLD previous levels, given the unprec- liquidity crisis in air transport,” 4 edented shock the global economy he says. Countries a ected by 3 > AIRLINES PLAN FOR EXTENDED GROUNDING is now experiencing? And will con- COVID-19 now represent 94% of 2 tainment of the coronavirus be more the global air transport market, 1 successful than anticipated, ushering and new travel restrictions and 0 > I ATA: INDUSTRY NEEDS $200 BILLION in a quicker-than-expected return to border closures are being add- Africa Asia-Pacific Europe Latin America Middle East North America relative normalcy? ed daily. “Demand has fallen to FROM GOVERNMENTS What is clear is that the industry zero,” Pearce says. *Cash and equivalents coverage of revenues. Latest available 12 month cumulative revenues for Africa, Latin America and the Middle East might not be representative due to small sample size. that emerges from the crisis will need And not all airlines are equal. to reset its business model. Over the Most airline profi ts during the Source: Jens Flottau Frankfurt, Sean Broderick and Ben Goldstein past fi ve years, U.S. airlines spent 96% past decade were generated by Washington, Helen Massy-Beresford Paris, Adrian Schofield of their free cash fl ow on stock buy- about 30 carriers at, or near, invest- dismisses speculation that demand domestic consolidation and this crisis backs—which boost the share price— ment-grade ratings. Many othersSource lost: IATA for business travel will slump in the may prove similar . . . though current Auckland and Bradley Perrett Beijing and dividends, leaving little cushion money even in good economic times. post-COVID-19 environment. “It was fundamentals are gyrating with such for bad times. A slump in fuel prices will provide asked after 9/11, SARS, the full-size momentum that achieving merger ust over two years ago, American Airlines Chairman And those bad times could be some cushion and could save the in- toiletry ban and the [2008-09 global traction may prove difficult,” the worse than anyone imagined. As re- dustry up to $30 billion annually. But fi nancial crisis],” its analysts wrote analysts wrote. “From a regulatory and CEO Doug Parker surveyed the U.S. airline land- cently as December, the International airline revenue losses are far greater, in a March 16 note to investors. “Our perspective, it’s hard to imagine the scape and saw an unstoppable industry. “I don’t think Air Transport Association (IATA) ex- and hedging—particularly popular in advice is to ignore the topic.” government blocking even the largest we’re ever going to lose money again,” he proclaimed. pected the industry to turn a $29 bil- Europe—is delaying the positive e ect. Another area of rampant specu- of deals.” J lion net profi t in 2020. Three months So what is the other side of the lation: Which airlines will survive One wild card that will help deter- “We have an industry that’s going to be profi table in good and later, IATA is forecasting a year-end- COVID-19 crisis going to look like? the crisis? JP Morgan sees far more mine what the post-COVID-19 indus- bad times.” loss of $40 billion, similar to what was It will likely include the return of risk outside North America, which try looks like is government aid. Italy seen in the 2008-09 global fi nancial high-yield demand but with fewer accounts for about 20% of global ca- is nationalizing perennially struggling The bad times have arrived, as any Numerous bankruptcies are expect- meltdown. IATA Director General airlines—particularly outside North pacity but 65% of airline profi ts. Last Alitalia, and carriers around the airline executive in the world can at- ed before the airline industry moves Alexandre de Juniac says the indus- America, say analysts at JP Morgan. year “was already witness to a record world are leaning on their govern- test. As COVID-19 spreads and an ev- into some kind of recovery mode. try will require $150-200 billion in Global business travel has been number of airline failures despite a ments for help. U.S. airlines also er-increasing number of countries go When that will happen is anyone’s government assistance to overcome crippled by national travel bans, mass salubrious fundamental backdrop,” want big money, asking the federal TT A S into lockdown, global air transport is guess, but the longer the devastating liquidity shortfalls. cancellations of conventions and oth- the bank noted. government for a $58 billion package grinding to a halt. Travel restrictions groundings continue, the less will be De Juniac believes one outcome of er major events and a rapidly expand- of grants and loans and relief from all abound, capacity cuts are reaching left of what had been a prospering the crisis will be industry consolida- ing push for people to isolate them- THE AMERICAS excise taxes through 2021. President 90% of normal levels, and more than industry globally. tion, as carriers are forced out of busi- selves as much as possible and work In the U.S., JP Morgan sees consoli- Donald Trump has signaled support 40 airlines have stopped fl ying alto- The questions now: When will prof- ness or form larger airlines to survive. from home. But has the panic gone dation coming before a major airline for the idea. gether, a number that is rising daily. itability return, and what will the in- And aircraft manufacturers and sup- too far? Investment bank JP Morgan failure. “Downturns have spurred “We’ll be backstopping the airlines
A depressing sight at airports worldwide—empty gates waiting for aircraft.
1 AVIATION WEEK & SPACE TECHNOLOGY/MARCH 23-APRIL 5, 2020 AviationWeek.com/AWST AviationWeek.com/AWST AVIATION WEEK & SPACE TECHNOLOGY/MARCH 23-APRIL 5, 2020 1 COMMERCIAL AVIATION
COVID-19 and Passenger Traffic