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DEPARTMENTS 5 | Feedback 16 | The Launchpad 6 | Who’s Where 6 4 | Marketplace NOAA’s GOES-East satellite 8-9 | First Take 65 | Contact Us 60 captured this image of a hurricane 10 | Up Front 65 | Aerospace o the coast of Florida. 12 | Going Concerns Calendar 14 | Leading Edge
FEATURES COMMERCIAL AVIATION UNMANNED AVIATION 22 | New 787 problems spotlight 34 | Reliable Robotics reveals auton- 18 | Reality Bites Boeing’s quality issues omous Caravan for cargo Most observers agree aircraft manufacturers are too optimistic 24 | Border openings and uniformity TECHNOLOGY about demand for new aircraft crucial to airline recovery, CEOs say 36 | U.S. Air Force contract launches new supersonic jet company 26 | European airlines warn of barriers 40 | Adaptive Aims to recovery SUSTAINABILITY U.S. defense propulsion research 38 Startup tackles barrier to takes on new and di erent | DEFENSE decarbonizing with hydrogen challenges including a ordable 28 | The UK plans a bespoke AESA and attritable engines for missiles radar for Typhoon retrofi t DEFENSE and UAVs 57 | Reforging of U.S. Air Force pilot 29 | Finnish needs prompt Saab air- training hits new complications 50 | Hunter-Killer II launched decoy development Northrop Grumman and ASK THE EDITORS Lockheed Martin unveil details of 30 | Russia reveals unmanned Grom 63 | Questions about destabilizing of their MQ-9 replacement projects loyal wingman concept hypersonic weapons and stealth SPACE VIEWPOINT 58 | Brain Drain 32 | Vega and Electron return to 66 | Many companies miss the chance As industry ranks are decimated, service with new o erings to leapfrog the status quo OEMs and top-tier companies already are worried about losing too many talented workers ON THE COVER 60 | What’s Next for NOAA To target the looming threat of mobile missile launchers in Russia and China, Northrop Grumman The U.S. agency expands is developing an SG-2 next-generation hunter-killer UAS that could swarm behind enemy lines or partnerships, adding new neutralize electronic threats. Defense Editor Steve Trimble’s report on this and Lockheed Martin’s weather-monitoring tech concept for an MQ-9 replacement begins on page 50. Northrop Grumman concept image. and moving to cloud-based Aviation Week publishes a digital edition every week. Read it at AviationWeek.com/AWST data services DIGITAL EXTRAS Access exclusive online features from articles accompanied by this icon.
AviationWeek.com/AWST AVIATION WEEK & SPACE TECHNOLOGY/SEPTEMBER 14-27, 2020 3 AVIATION 4 SPACE& WEEK TECHNOLOGY/SEPTEMBER 14-27, 2020 for Over 45Years Your FleetsFlying Trusted to Keep Pedigree Parts Provider ofOEM The LeadingGlobal MRO Facilities Manufacturing and 5 World Class [email protected] 818-678-6555 EXPANDING OUR CAPABILITIES EXTENDING THE LIFE OF YOUR LEGACY AIRCRAFT Guy Norris, Tony Osborne, Bradley Perrett, James Pozzi, Adrian Schofield, Lee AnnShay, Steve Trimble William Garvey, Ben Goldstein, Lee Hudson, Irene Klotz, HelenMassy-Beresford, Jefferson Morris, Editors Managing Director, Intelligence &Data Services AnneMcMahon Copy Editors Editor-In-Chief Joseph C. Anselmo [email protected] Senior Manager, Data Operations/Production Terra Deskins Lindsay Bjerregaard, Sean Broderick, MichaelBruno, BillCarey, Thierry Dubois, Director, Editorial andOnline Production MichaelO. Lavitt Jens Flottau (Commercial Aviation) [email protected] Jen DiMascio (Defense andSpace) [email protected] Helen Massy-Beresford Director, Forecasts and Aerospace Insights BrianKough President, Aviation Week Network Gregory Hamilton Graham Warwick (Technology) Production Editors Audra Avizienis, Theresa Petruso Manager, Data Operations Military Michael Tint Director, Digital Content Strategy Rupa Haria Artists 2121 K Street, NW, Suite 210, Washington, D.C. 20037 Chief Aircraft Evaluation Editor Fred George Bradley Perrett Associate ManagingEditor Molly [email protected] Thierry Dubois [email protected] Tony Osborne [email protected] Contributing Photographer Joseph Pries Jen DiMascio [email protected] Lee Ann Shay [email protected] Content Marketing Manager Rija Tariq Maxim Pyadushkin [email protected] Jens Flottau [email protected] Irene Klotz [email protected] Adrian Schofield Guy [email protected] Mark Carreau [email protected] Jack Freifelder, Arturo Mora, Natalia Pelayo, Andy Savoie 605 Third Avenue, New York, N.Y. 10158 Thomas De Pierro, Rosa Pineda, Colin Throm Art Director Lisa Caputo Phone: +1 (212)204-4200 Phone: +1 (202) 517-1100 Executive Editors Data &Analytics [email protected] [email protected] Editorial Offices Cape Canaveral Bureau Chiefs Los Angeles Washington Frankfurt Auckland Houston Chicago Moscow Wichita London Beijing [email protected] Paris Lyon [email protected]
Andrea Hollowell
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Editor-In-Chief Joseph C. Anselmo [email protected] FIDDLING WHILE ROME BURNS ‘INFINITE WING’ Executive Editors My July viewpoint (July 13-26, p. 74) about the systemic On behalf of my husband, Roger Read, a long-time subscrib- Jen DiMascio (Defense and Space) [email protected] mismanagement of GPS and how perennial GPS managers er to your magazine who died Dec. 24, 2019, I would like to Jens Flottau (Commercial Aviation) [email protected] wield enough power to resist accountability points out that thank your editorial team for the very excellent tool Aviation Graham Warwick (Technology) [email protected] this has caused GPS to fall behind the Chinese and Euro- Week provided him. In his retirement years—after a long Editors Lindsay Bjerregaard, Sean Broderick, Michael Bruno, Bill Carey, Thierry Dubois, pean systems while remaining vulnerable to adversary career in aerial survey and aerial photography and as a William Garvey, Ben Goldstein, Lee Hudson, Irene Klotz, Helen Massy-Beresford, Jefferson Morris, attacks for decades, with resolution still a decade away. lecturer and author—he and aviation friend John J. A. Smith Guy Norris, Tony Osborne, Bradley Perrett, James Pozzi, Adrian Schofield, Lee Ann Shay, Steve Trimble Three great Americans in their fields—Adm. (ret.) Thad endeavored to bring the Infinite Wing, a cutting-edge in- Chief Aircraft Evaluation Editor Fred George Allen, Prof. Brad Parkinson and Capt. “Sully” Sullenberger— vention to eliminate wingtip vortices, to the attention of the Director, Editorial and Online Production Michael O. Lavitt coauthored a “rebuttal,” “LightSquared Fiasco 2.0” aeronautics world. In this, Aviation Week & Space Technology Associate Managing Editor Andrea Hollowell (Aug. 17-30, p. 66), that did not address my assertions head- proved an important source of information. Art Director Lisa Caputo on. Instead, they restated the argument that Ligado’s use of Since the passing of my husband, Mr. Smith has con- L-band causes harmful GPS interference, which has been tinued the scientific association started in 2014 with the Artists Thomas De Pierro, Rosa Pineda, Colin Throm soundly debunked by extensive world-class testing, internal College of Engineering at Swansea University. Copy Editors Jack Freifelder, Arturo Mora, Natalia Pelayo, Andy Savoie Defense Department-National Telecommunications and Milton Friedman said: “Only a crisis—actual or per- Production Editors Audra Avizienis, Theresa Petruso Information Administration documentation and the world’s ceived—produces real change.” Will COVID-19 prove to be Contributing Photographer Joseph Pries foremost spectrum management organization, the FCC. such a crisis? The Infinite Wing could offer: Director, Digital Content Strategy Rupa Haria This is deeply troubling because it confirms the worst: Climb fuel saving >15% Content Marketing Manager Rija Tariq GPS is a national security and economic vulnerability. It is Cruise fuel saving >10% Data & Analytics time for a reckoning of this mismanagement before a GPS Descent fuel saving >5% Director, Forecasts and Aerospace Insights Brian Kough “9/11” takes place in America. The L-band’s value to U.S. 5G Simple “bolt-on” wingtips is clear, as Nokia, Ericsson, Samsung, MITRE and others No spar strengthening needed Senior Manager, Data Operations/Production Terra Deskins have confirmed. Reduced noise footprint Manager, Military Data Operations Michael Tint Congress must eliminate debilitating amendments in the Reduced CO2 and NOx emissions Editorial Offices National Defense Authorization Act—notably the contract- No moving parts. 2121 K Street, NW, Suite 210, Washington, D.C. 20037 ing amendment by House Armed Services Committee Rank- Aviators, take note! Phone: +1 (202) 517-1100 ing Member Michael Turner (R-Ohio) that, disastrously, 605 Third Avenue, New York, N.Y. 10158 would give the Pentagon a “veto” over the FCC and punish Tuula Read, Enschede, The Netherlands Phone: +1 (212) 204-4200 private companies for freely and legally choosing to build Bureau Chiefs out the L-band 5G network. ‘UNLOADING’ CAVEAT Auckland We have a 5G race to win. As FCC Chairman Ajit Pai Regarding “Signs of a Shift” (July 13-26, p. 18), the “Roller- Adrian [email protected] testified to the Senate in June 2020: “This process has gone Coaster” method of unloading the stabilizer when using Beijing on long enough. . . . We made a decision based solely on the manual stabilizer trim is described in the 1982 Boeing 737- Bradley Perrett [email protected] facts and the law. I will defend this decision before any forum 200 pilot training manual and depended whether nose-up Cape Canaveral in this Congress or around the country.” or nose-down trim was required. Irene Klotz [email protected] Continuing to oppose the FCC’s unanimous, legal and If nose-up trim was required because the aircraft was in OUR CAPABILITIES AIRCRAFT LEGACY THE LIFE OF YOUR EXPANDING EXTENDING Chicago accurate finding—that Ligado bolsters U.S. 5G without a dive, the technique recommended by Boeing required the Lee Ann Shay [email protected] harming GPS—is fiddling while Rome burns. nose to be raised initially well above the horizon. This may require both pilots on the controls to raise the nose. Control 5 World Class Frankfurt Daniel S. Goldin, Malibu, California column pressure is then relaxed, allowing the nose to start Manufacturing and Jens Flottau [email protected] to fall. This is called unloading, and simultaneously one or MRO Facilities Houston both pilots rapidly wind the manual trim handles backward. Mark Carreau [email protected] As the nose passes the horizon (and the aircraft picks up London COMMERCIAL JET ENGINES Expected Revenues and Market Share, 2020-29 (U.S. $ billion) speed), the maneuver is repeated until the stabilizer trim The Leading Global Tony Osborne [email protected] Provider of OEM Single-Aisles Twin-Aisles is neutral. If this maneuver is simulated when airborne, the Los Angeles Pedigree Parts $4.2 Boeing 737 instructor manual warned that the trim was Guy Norris [email protected] $19 3% not to be deliberately set more than 2.5 units of stabilizer Lyon 14% trim either side of normal. This was a safety limitation to Thierry Dubois [email protected] $75.2 $41 Trusted to Keep 34% 31% prevent excessive control forces. Your Fleets Flying Moscow Trials reported in your article showing two pilots could Maxim Pyadushkin [email protected] $147.4 exert enough force to move the trim wheel without drop- for Over 45 Years 66% $67.9 Paris 52% ping the nose would have had to have been conducted at Helen Massy-Beresford [email protected] relatively low airspeed to be effective. 818-678-6555 Washington Jen DiMascio [email protected] Pratt & Whitney CFM GE Rolls-Royce Trent XWB Other Rolls-Royce Engines John Laming, Tullamarine, Australia [email protected] Source: Teal Group Wichita Molly McMillin [email protected] CORRECTIONS Address letters to the Editor-in-Chief, Aviation Week & President, Aviation Week Network Gregory Hamilton The slices in the “Twin-Aisles” pie chart accompanying the Space Technology, 2121 K Street, NW, Suite 210, article “‘The Golden Age Is Over’” (Aug. 31-Sept. 13, p. 16) Washington, DC, 20037 or send via email to: Managing Director, Intelligence & Data Services Anne McMahon were misidentified. The corrected pie chart appears above. [email protected] Letters may be edited The scale for “Growing Military Engine Repair, 2020-29” for length and clarity; a verifiable address and daytime (Aug. 31-Sept. 13, p. 9) should have been “(U.S. $ billion).” telephone number are required. Source: Teal Group
4 AVIATION WEEK & SPACE TECHNOLOGY/SEPTEMBER 14-27, 2020 AviationWeek.com/AWST AviationWeek.com/AWST AVIATION WEEK & SPACE TECHNOLOGY/SEPTEMBER 14-27, 2020 5 WHO’S WHERE Webhed: New Positions, Promotions, Honors And Elections Teaser: Primary Category: Kendall Goodman Redwire has hired Al Tadros as chief facility at Miami-Opa Locka Executive Secondary Category: has been promoted growth officer and executive vice pres- Airport. Michel (Mike) Menard suc- to AVX Aircraft pres- ident of space infrastructure. He joins ceeds Beaudette as general manager Bullet Points: ident and chief oper- Redwire from Maxar, where he was of the Tucson, Arizona, service center. ating officer. Good- vice president of space infrastructure Beaudette has 30 years’ experience man was serving as and civil space. with Bombardier. Menard was vice chief operating offi- Wheels Up has president and general manager for cer and also had been senior vice pres- appointed U.S. Air StandardAero and ident of the company’s Future Vertical Force Lt. Gen. (ret.) Dassault Aircraft Lift effort and program manager of its Thomas W. Bergeson Services U.S. Future Attack Reconnaissance Aircraft chief operating of- NASA has named Competitive Prototype. Goodman has ficer. He succeeds Catherine Koerner been awarded six U.S. patents. Jason Horowitz, who manager of the Orion International Airlines Group has moves to a new role as chief business program, overseeing named Luis Gallego as CEO; he suc- officer. Bergeson will oversee company development and op- ceeds Willie Walsh, who has retired. operations; Horowitz will focus on busi- erations of NASA’s newest spacecraft to Gallego was the head of Iberia and ness strategy. carry astronauts to the Moon and back. launched Iberia Ex- Risk management and mission sup- Koerner has been a flight director, space press; before that, he port services provider Constellis has shuttle manager, deputy manager of the was chief operating hired Richard Hozik as chief financial vehicle office and manager of the trans- officer at Vueling. officer. Hozik held executive positions for portation integration office for the Inter- Elizabeth Anderson government and commercial entities. national Space Station has been appointed Astroscale has program. CEO of the British hired Sharon Parker- Renee Martin- Interplanetary Society Lines as UK opera- Nagle has joined think tank. She worked at the Con- tions director. Parker- Eckert Seamans as federation of British Industry, The Lines was director of special counsel in Aldridge Foundation and at the Royal the Oxford Center for the firm’s Pittsburgh College of Surgeons of England, where Innovation. office. She served for she led a major overhaul of governance. Parker Aerospace more than 20 years at Airbus Americas, Jean-Paul Alary has been named CEO has promoted Michael Portela to group retiring in 2011 as vice president, gen- of Safran Aircraft Engines. He succeeds vice president of operations, airframe eral counsel, chief compliance officer, Olivier Andries, who has been named and actuation. He was general manager head of environmental affairs, corporate Safran executive vice president to suc- at Advanced Atomization Technolo- secretary and board member. She joins ceed Philippe Petitcolin in January 2021. gies, a Parker Aerospace-GE Aviation Eckert Seamans from water law and Andries had served with the French joint venture. resources consultancy A Ripple Effect, finance ministry and the Lagardere GRSi has promoted Kelly Baldwin where she was CEO and president. group. Alary was head of Safran Power to vice president of defense programs U.S. Navy Rear Adm. (ret.) and Units (formerly Snecma). Both men are and general manager of the company’s Space Foundation CEO Thomas Zelibor on the executive committee. Naval Information Warfare Center has joined the Defense Innovation Board Vertical Aerospace operations. He was project manager Space Advisory Committee. has hired Eric and leader of the platform integration Aerojet Rocketdyne has appointed Samson as head of business unit. Audrey McNiff to its board. She worked engineering. He was Elliott Aviation has promoted at Goldman Sachs in the hedge funds and vice president of en- Lawrence Harting to vice president sovereign wealth funds departments. gineering and head of of operations from vice president Maintenance, repair and overhaul design at Jet Aviation. and general manager at Flying Cloud provider Elliott Aviation has named Gulfstream has Airport in Eden Prairie, Minnesota. Melissa Maddox to its board. She was appointed Josh Thompson as chief He was director of operations and vice president and general manager for financial officer. He had been with Gen- manager of scheduling and planning at StandardAero in Houston. eral Dynamics Ordnance and Tactical Dassault Aircraft Services. Novaria Group has elected Bonnie Systems. He succeeds Dan Clare, who Bombardier Aviation has appointed Peat and James Riley to its board. Peat has retired. Marc Beaudette general manager of its was vice president at Parker Aero- Lisa Campbell has been appoint- Fort Lauderdale, Florida, service cen- space, and Riley was CEO of Consoli- ed president of the Canadian Space ter, which is planned to move to a new dated Precision Products. c Agency. Campbell was associate dep- uty minister of Veterans Affairs Can- To submit information for the Who’s Where column, send Word or attached text files ada and before that led military and (no PDFs) and photos to: [email protected] For additional information on marine procurement for the country. companies and individuals listed in this column, please refer to the Aviation Week Intelligence She succeeds Sylvain Laporte, who Network at AviationWeek.com/awin For information on ordering, telephone has retired. U.S.: +1 (866) 857-0148 or +1 (515) 237-3682 outside the U.S.
6 AVIATION WEEK & SPACE TECHNOLOGY/SEPTEMBER 14-27, 2020 AviationWeek.com/AWST WHO’S WHERE Webhed: New Positions, Promotions, Honors And Elections Teaser: Primary Category: Kendall Goodman Redwire has hired Al Tadros as chief facility at Miami-Opa Locka Executive Secondary Category: has been promoted growth officer and executive vice pres- Airport. Michel (Mike) Menard suc- to AVX Aircraft pres- ident of space infrastructure. He joins ceeds Beaudette as general manager Bullet Points: ident and chief oper- Redwire from Maxar, where he was of the Tucson, Arizona, service center. ating officer. Good- vice president of space infrastructure Beaudette has 30 years’ experience man was serving as and civil space. with Bombardier. Menard was vice chief operating offi- Wheels Up has president and general manager for cer and also had been senior vice pres- appointed U.S. Air StandardAero and ident of the company’s Future Vertical Force Lt. Gen. (ret.) Dassault Aircraft Lift effort and program manager of its Thomas W. Bergeson Services U.S. Future Attack Reconnaissance Aircraft chief operating of- NASA has named Competitive Prototype. Goodman has ficer. He succeeds Catherine Koerner been awarded six U.S. patents. Jason Horowitz, who manager of the Orion International Airlines Group has moves to a new role as chief business program, overseeing named Luis Gallego as CEO; he suc- officer. Bergeson will oversee company development and op- ceeds Willie Walsh, who has retired. operations; Horowitz will focus on busi- erations of NASA’s newest spacecraft to Gallego was the head of Iberia and ness strategy. carry astronauts to the Moon and back. launched Iberia Ex- Risk management and mission sup- Koerner has been a flight director, space press; before that, he port services provider Constellis has shuttle manager, deputy manager of the was chief operating hired Richard Hozik as chief financial vehicle office and manager of the trans- officer at Vueling. officer. Hozik held executive positions for portation integration office for the Inter- Elizabeth Anderson government and commercial entities. national Space Station has been appointed Astroscale has program. CEO of the British hired Sharon Parker- Renee Martin- Interplanetary Society Lines as UK opera- Nagle has joined think tank. She worked at the Con- tions director. Parker- Eckert Seamans as federation of British Industry, The Lines was director of special counsel in Aldridge Foundation and at the Royal the Oxford Center for the firm’s Pittsburgh College of Surgeons of England, where Innovation. office. She served for she led a major overhaul of governance. Parker Aerospace more than 20 years at Airbus Americas, Jean-Paul Alary has been named CEO has promoted Michael Portela to group retiring in 2011 as vice president, gen- of Safran Aircraft Engines. He succeeds vice president of operations, airframe eral counsel, chief compliance officer, Olivier Andries, who has been named and actuation. He was general manager head of environmental affairs, corporate Safran executive vice president to suc- at Advanced Atomization Technolo- secretary and board member. She joins ceed Philippe Petitcolin in January 2021. gies, a Parker Aerospace-GE Aviation Eckert Seamans from water law and Andries had served with the French joint venture. resources consultancy A Ripple Effect, finance ministry and the Lagardere GRSi has promoted Kelly Baldwin where she was CEO and president. group. Alary was head of Safran Power to vice president of defense programs U.S. Navy Rear Adm. (ret.) and Units (formerly Snecma). Both men are and general manager of the company’s Space Foundation CEO Thomas Zelibor on the executive committee. Naval Information Warfare Center has joined the Defense Innovation Board Vertical Aerospace operations. He was project manager Space Advisory Committee. has hired Eric and leader of the platform integration Aerojet Rocketdyne has appointed Samson as head of business unit. Audrey McNiff to its board. She worked engineering. He was Elliott Aviation has promoted at Goldman Sachs in the hedge funds and vice president of en- Lawrence Harting to vice president sovereign wealth funds departments. gineering and head of of operations from vice president Maintenance, repair and overhaul design at Jet Aviation. and general manager at Flying Cloud provider Elliott Aviation has named Gulfstream has Airport in Eden Prairie, Minnesota. Melissa Maddox to its board. She was appointed Josh Thompson as chief He was director of operations and vice president and general manager for financial officer. He had been with Gen- manager of scheduling and planning at StandardAero in Houston. eral Dynamics Ordnance and Tactical Dassault Aircraft Services. Novaria Group has elected Bonnie Systems. He succeeds Dan Clare, who Bombardier Aviation has appointed Peat and James Riley to its board. Peat has retired. Marc Beaudette general manager of its was vice president at Parker Aero- Lisa Campbell has been appoint- Fort Lauderdale, Florida, service cen- space, and Riley was CEO of Consoli- ed president of the Canadian Space ter, which is planned to move to a new dated Precision Products. c Agency. Campbell was associate dep- uty minister of Veterans Affairs Can- To submit information for the Who’s Where column, send Word or attached text files ada and before that led military and (no PDFs) and photos to: [email protected] For additional information on marine procurement for the country. companies and individuals listed in this column, please refer to the Aviation Week Intelligence She succeeds Sylvain Laporte, who Network at AviationWeek.com/awin For information on ordering, telephone has retired. U.S.: +1 (866) 857-0148 or +1 (515) 237-3682 outside the U.S.
6 AVIATION WEEK & SPACE TECHNOLOGY/SEPTEMBER 14-27, 2020 AviationWeek.com/AWST FIRST DRDO
combined 26.1 billion yuan ($3.8 billion) DEFENSE TAKE net loss for the first six months of 2020, India’s defense research For the latest, go to even as they worked their way back to- organization conducted a AVIATIONWEEK.COM ward normal capacity. 20-sec. scramjet-powered, Mach 6 test flight of the Embattled aircraft connectivity provider indigenous Hypersonic COMMERCIAL Gogo will sell its commercial aviation Technology Demonstration A quality issue with assembly of hori- unit to bankrupt satellite services pro- Vehicle on Sept. 7. zontal stabilizers is slowing deliveries vider Intelsat for $400 million. of the Boeing 787, and follows discovery The U.S. Air Force has awarded sole bid- of unrelated defects in fuselage sections An Etihad Airways 787-10 has begun a der Northrop Grumman a $13.3 billion of the widebody twin (page 22). series of test flights as part of Boeing’s contract for the Ground-Based Strate- ecoDemonstrator program aimed at re- gic Deterrent program to replace the Ed Dandridge has been named senior ducing CO2 emissions and noise. Minuteman III intercontinental ballistic vice president and chief communications missile. officer of Boeing. He joins from AIG Gen- Contracts totaling $33 million for eral Insurance, where he was global chief all-electric power train and fuel-to-elec- The U.S. Air Force is to launch a competi- marketing and communications officer. tric power conversion technologies for tion between General Electric and Pratt future single-aisle airliners have been & Whitney to deliver up to 461 engines Embraer is laying off 900 employees awarded by the U.S. Energy Department. for its planned Boeing F-15EX fleet. in Brazil, 4.5% of its global workforce, blaming COVID-19 and the termina- E-commerce giant Amazon has received As a budget debate continues over the tion of the planned commercial-aircraft FAA Part 135 air-carrier certification helicopter program’s fate, Boeing has partnership with Boeing (page 58). for its Prime Air drone service but does delivered the first MH-47G Chinook not plan to begin commercial deliveries modified to Block II standard to U.S. China’s three state carriers reported a imminently. Special Operations Command.
VIEW FROM LONDON The UK is investing £317 million ($410 million) in development of an active- array radar for the Royal Air Force’s Brexit Threat Returns Euro fighter Typhoons (page 28).
The UK aerospace industry is again warning of the dangers of a KAI “no-deal” Brexit after it emerged that the UK government could renege on elements of the Withdrawal Agreement previously struck with the EU. “The economic impact of the pandemic makes the cost of failure in negotiations especially severe,” says trade association ADS’ CEO Paul Everitt. His comments came after media reports the UK could tear up elements of the agreement relating to Northern Ireland. The first Korea Aerospace Industries Reneging on that agreement is seen by many as a nuclear option KF-X fighter prototype has entered final and could result in UK-EU trade talks collapsing. That would leave assembly and is scheduled to be rolled the UK without a deal with its largest trading partner, in turn dam- out in June 2021. aging an increasingly fragile aerospace industry already ravaged DARPA and the U.S. Air Force plan to by COVID-19. start free-flight tests of Lockheed Martin “A no-deal outcome to Brexit negotiations is the worst possible and Raytheon scramjet-powered missile demonstrators by the end of the year. result,” Everitt says. “Manufacturers in our sectors rely on com- plex Pan-European supply chains, international regulatory ar- Airbus is to deliver 17 uprated, fenestron- rangements and access to the EU market as the largest destination tailed UH-72B Lakota helicopters to the U.S. Army and National Guard over the for UK aerospace products.” next two years. The UK left the EU in January but remains a part of the single market and customs union for a transition period that ends on SPACE Launched by a Long March 2F booster, a Dec. 31. The news emerges as the UK aviation industry awaits Chinese “reusable experimental space- government plans for a stimulus package like those in France craft” touched down at the scheduled and Germany. c landing site on Sept. 6 after two days in orbit.
8 AVIATION WEEK & SPACE TECHNOLOGY/SEPTEMBER 14-27, 2020 AviationWeek.com/AWST Where China’s Air Force Still Lags FIRST DRDO 2,200 Where China’s Air combined 26.1 billion yuan ($3.8 billion) DEFENSE 2,000 U.S. Air Force TAKE net loss for the first six months of 2020, India’s defense research Force Still Lags 1,800 PLAAF For the latest, go to even as they worked their way back to- organization conducted a The latest U.S. Defense Department annual report AVIATIONWEEK.COM ward normal capacity. 20-sec. scramjet-powered, 1,600 Mach 6 test flight of the on China’s military notes the People’s Liberation Army Air Force (PLAAF) is rapidly catching up with Embattled aircraft connectivity provider indigenous Hypersonic 1,400 COMMERCIAL Gogo will sell its commercial aviation Technology Demonstration Western capabilities. Aviation Week Network analy- A quality issue with assembly of hori- unit to bankrupt satellite services pro- Vehicle on Sept. 7. 1,200 sis shows that while China has made huge strides in zontal stabilizers is slowing deliveries vider Intelsat for $400 million. modernizing its fleet, the greatest disparity remains 1,000 of the Boeing 787, and follows discovery The U.S. Air Force has awarded sole bid- in mobility and power projection: Tankers and trans-
Number of Aircraft ports account for 33% of the U.S. Air Force fleet of unrelated defects in fuselage sections An Etihad Airways 787-10 has begun a der Northrop Grumman a $13.3 billion 800 of the widebody twin (page 22). series of test flights as part of Boeing’s contract for the Ground-Based Strate- compared to 15% of the PLAAF’s. c ecoDemonstrator program aimed at re- gic Deterrent program to replace the 600 Ed Dandridge has been named senior ducing CO2 emissions and noise. Minuteman III intercontinental ballistic vice president and chief communications missile. 400 To request more information about Aviation officer of Boeing. He joins from AIG Gen- Contracts totaling $33 million for Week’s Military Fleet & MRO Forecast, go to eral Insurance, where he was global chief all-electric power train and fuel-to-elec- The U.S. Air Force is to launch a competi- 200 pages.AviationWeek.com/Forecasts marketing and communications officer. tric power conversion technologies for tion between General Electric and Pratt 0 future single-aisle airliners have been & Whitney to deliver up to 461 engines Fighter Bomber C4ISR Tanker Transport Source: Craig Caffery/Aviation Week Intelligence Network Embraer is laying off 900 employees awarded by the U.S. Energy Department. for its planned Boeing F-15EX fleet. in Brazil, 4.5% of its global workforce, Source: ra a er a o ee ell e ce e or blaming COVID-19 and the termina- E-commerce giant Amazon has received As a budget debate continues over the Arianespace’s Vega rocket returned to the U.S. National Security Space Archi- AWARDED tion of the planned commercial-aircraft FAA Part 135 air-carrier certification helicopter program’s fate, Boeing has flight Sept. 3 from Europe’s spaceport in tecture, for launch by Sept. 2022. Former NASA Administrator USMC Maj. partnership with Boeing (page 58). for its Prime Air drone service but does delivered the first MH-47G Chinook Kourou, French Guiana, with a ride-share Gen. (ret.) Charles Bolden is to receive not plan to begin commercial deliveries modified to Block II standard to U.S. mission carrying 53 satellites (page 32). After repeated attempts to sell a sol- the 2020 Wright Brothers Memorial China’s three state carriers reported a imminently. Special Operations Command. id-propellant, heavy-lift vehicle for U.S. Trophy for his “public service in avia- Lockheed Martin and York Space Systems national security launches, Northrop tion and aerospace as an aviator, astro- VIEW FROM LONDON The UK is investing £317 million ($410 will each build 10 networking satellites Grumman is discontinuing work on its naut and leader,” says the U.S. National million) in development of an active- for the Tranche 0 Transport Layer of Omega rocket. Aeronautic Association. c array radar for the Royal Air Force’s Brexit Threat Returns Euro fighter Typhoons (page 28). 75 YEARS AGO IN AVIATION WEEK KAI The UK aerospace industry is again warning of the dangers of a Peace came fast in 1945. On Aug. 5, Operation Downfall, the U.S. Project scientists, he wrote, predicted that it would take a decade “no-deal” Brexit after it emerged that the UK government could ground invasion of Japan set for November, was still a “go.” One to harness atomic energy for civilian purposes, which proved eeri- renege on elements of the Withdrawal Agreement previously week—and the atomic bombings of Hiroshima and Nagasaki—later, ly precise when the first nuclear power plant opened in the Sovi - struck with the EU. Japan was set for unconditional surrender. Whatever the staff of et Union nine years later. In the meantime, the device to look for “The economic impact of the pandemic makes the cost of failure Aviation had planned for the September issue, they pivoted. After next, Powell predicted, was the integration of the atom bomb with an eight-page special feature that meticulously diagrammed the two other scientific marvels yielded by World War II: Germany’s in negotiations especially severe,” says trade association ADS’ CEO physics of atom splitting, Herb Powell, the associate editor, at - V-2-type missiles precisely guided by “radio-electronic devices.” Paul Everitt. His comments came after media reports the UK could tempted to grapple with the implications. A survey of Manhattan In other words, an intercontinental ballistic missile. c tear up elements of the agreement relating to Northern Ireland. The first Korea Aerospace Industries Reneging on that agreement is seen by many as a nuclear option KF-X fighter prototype has entered final and could result in UK-EU trade talks collapsing. That would leave assembly and is scheduled to be rolled the UK without a deal with its largest trading partner, in turn dam- out in June 2021. aging an increasingly fragile aerospace industry already ravaged DARPA and the U.S. Air Force plan to by COVID-19. start free-flight tests of Lockheed Martin “A no-deal outcome to Brexit negotiations is the worst possible and Raytheon scramjet-powered missile demonstrators by the end of the year. result,” Everitt says. “Manufacturers in our sectors rely on com- plex Pan-European supply chains, international regulatory ar- Airbus is to deliver 17 uprated, fenestron- rangements and access to the EU market as the largest destination tailed UH-72B Lakota helicopters to the U.S. Army and National Guard over the for UK aerospace products.” next two years. The UK left the EU in January but remains a part of the single market and customs union for a transition period that ends on SPACE Launched by a Long March 2F booster, a Dec. 31. The news emerges as the UK aviation industry awaits Chinese “reusable experimental space- government plans for a stimulus package like those in France craft” touched down at the scheduled landing site on Sept. 6 after two days and Germany. c Subscribers can access every issue of Aviation Week back to 1916 at: archive.aviationweek.com in orbit.
8 AVIATION WEEK & SPACE TECHNOLOGY/SEPTEMBER 14-27, 2020 AviationWeek.com/AWST AviationWeek.com/AWST AVIATION WEEK & SPACE TECHNOLOGY/SEPTEMBER 14-27, 2020 9 COMMENTARY UP FRONT RICHARD ABOULAFIA
FOR THE TWO BIG COMMERCIAL There are few new European programs, and the aircraft OEMs, the next few years will be most important by far, the Franco-German-Spanish very tough going. It will be important for Future Combat Air System, has been given to Dassault. them to maintain a strategic plan, a list Dassault has a strong fighter culture and is not famous of goals and directions beyond mere survival. In July, for cooperating with other primes. Kevin Michaels’ column provided a definitive list of For Airbus, the challenge is clear: It must motivate Boeing’s priorities (July 27-Aug. 13, p. 10). Here is my political leaders to create new programs, get more equivalent strategic priorities list for Airbus: work on existing programs or promote military de- ➊ Make a tough twin-aisle choice. Airbus A350 XWB rivatives of civil platforms such as the KC-30 tanker output is falling quickly, probably by at least 50%. Mean- or H160M helicopter. while, Airbus’ other twin-aisle, the A330neo, has an ➍ Preserve a global production strategy. Boeing has extremely weak orderbook and faces years of two-per- six final production lines in three sites: Renton (737) and month production rates. The two aircraft are not all that Everett (777/777X, 767/KC-46, 787, 747) in Washington, different in terms of capabilities and price point. Airbus and Charleston (787) in South Carolina. The Boeing 747 must decide whether to bolster A350XWB sales by kill- line is closing, and one 787 line is likely to close, leav- ing the A330, which would end a profitable long-running ing four lines. Airbus has nine lines in five sites: Tou- program but rationalize production, saving money. louse (A320, A330, A350, A380); Hamburg, Germany Forward Planning A five-part strategy for Airbus
AIRBUS This decision largely comes down to Delta Air (A320/321); Mobile, Alabama (A220, A320/321); Tianjin, Lines, the only truly strategic (and healthy) A330neo China (A320/321); and Montreal (A220). This line prolif- customer. Since Delta is also an A350XWB customer, eration represents high fixed costs, and in a downturn consolidating these orders should not be a problem. there will be some temptation to rationalize these sites. Airbus also needs to consult with Rolls-Royce, the en- But in many cases, particularly in China and the gine prime on both programs, since Airbus needs to U.S., secondary lines have helped to circumvent pro- be mindful of Rolls’ health. tectionist trade barriers. While the A330neo may be ➋ Maintain aircraft design capabilities. Overall, Airbus’ on the chopping block and the A380 is dying, Airbus product portfolio is in better shape than Boeing’s, would be well-advised to preserve the other seven since the latter company is heavily dependent on the lines, despite the overhead. 737-8 for its single-aisle market standing, while Airbus ➎ Leverage better supplier relations. With Partnering enjoys a strong presence throughout its narrowbody for Success and other initiatives, Boeing has been product line. It will be easy for Airbus to become com- squeezing its suppliers’ margins by demanding price placent and coast on this product lineup, though, jeop- concessions, aftermarket rights and lengthened pay- ardizing its strong design capabilities. ment terms. The results are a weakened supply chain So far, unlike Boeing, Airbus has not announced seri- and a lot of alienation. ous R&D budget cuts. Yet it is not really clear what its Airbus can take advantage of Boeing’s aggressive ap- engineers are doing: Airbus has not had an active new proach by quietly telling suppliers that it will offer bet- commercial development program since the A350-1000 ter terms and conditions in exchange for superior and entered service in February 2018. Factory digitization, more innovative products. This approach could mean green initiatives and ancillary aviation concepts are not that the next generation of Airbus jets will be more com- the same as designing a new jet. Some kind of new pro- petitive than Boeing’s, since Airbus’ will be enabled by gram—even just a stretched A220-500—is essential to best-in-class subsystems and technologies that surpass keep jet design and integration skills intact. what Boeing’s aggrieved suppliers are willing to provide. ➌ Rejuvenate defense. Two decades ago, Airbus (and The COVID-19 downturn will be brutal. But if Airbus predecessor EADS) defense programs were all about prioritizes long-term outcomes, it will come out of it to hit their stride. The A400M transport, Eurofighter/ stronger than ever. c Typhoon, Tiger and NH90 helicopters and others had promising futures. Today, these platforms are winding Contributing columnist Richard Aboulafia is vice president of down, with dwindling backlogs. analysis at Teal Group. He is based in Washington.
10 AVIATION WEEK & SPACE TECHNOLOGY/SEPTEMBER 14-27, 2020 AviationWeek.com/AWST COMMENTARY UP FRONT RICHARD ABOULAFIA
FOR THE TWO BIG COMMERCIAL There are few new European programs, and the aircraft OEMs, the next few years will be most important by far, the Franco-German-Spanish very tough going. It will be important for Future Combat Air System, has been given to Dassault. them to maintain a strategic plan, a list Dassault has a strong fighter culture and is not famous of goals and directions beyond mere survival. In July, for cooperating with other primes. Kevin Michaels’ column provided a definitive list of For Airbus, the challenge is clear: It must motivate Boeing’s priorities (July 27-Aug. 13, p. 10). Here is my political leaders to create new programs, get more equivalent strategic priorities list for Airbus: work on existing programs or promote military de- ➊ Make a tough twin-aisle choice. Airbus A350 XWB rivatives of civil platforms such as the KC-30 tanker output is falling quickly, probably by at least 50%. Mean- or H160M helicopter. while, Airbus’ other twin-aisle, the A330neo, has an ➍ Preserve a global production strategy. Boeing has extremely weak orderbook and faces years of two-per- six final production lines in three sites: Renton (737) and month production rates. The two aircraft are not all that Everett (777/777X, 767/KC-46, 787, 747) in Washington, different in terms of capabilities and price point. Airbus and Charleston (787) in South Carolina. The Boeing 747 must decide whether to bolster A350XWB sales by kill- line is closing, and one 787 line is likely to close, leav- ing the A330, which would end a profitable long-running ing four lines. Airbus has nine lines in five sites: Tou- program but rationalize production, saving money. louse (A320, A330, A350, A380); Hamburg, Germany Forward Planning A five-part strategy for Airbus
AIRBUS This decision largely comes down to Delta Air (A320/321); Mobile, Alabama (A220, A320/321); Tianjin, Lines, the only truly strategic (and healthy) A330neo China (A320/321); and Montreal (A220). This line prolif- customer. Since Delta is also an A350XWB customer, eration represents high fixed costs, and in a downturn consolidating these orders should not be a problem. there will be some temptation to rationalize these sites. Airbus also needs to consult with Rolls-Royce, the en- But in many cases, particularly in China and the gine prime on both programs, since Airbus needs to U.S., secondary lines have helped to circumvent pro- be mindful of Rolls’ health. tectionist trade barriers. While the A330neo may be ➋ Maintain aircraft design capabilities. Overall, Airbus’ on the chopping block and the A380 is dying, Airbus product portfolio is in better shape than Boeing’s, would be well-advised to preserve the other seven since the latter company is heavily dependent on the lines, despite the overhead. 737-8 for its single-aisle market standing, while Airbus ➎ Leverage better supplier relations. With Partnering enjoys a strong presence throughout its narrowbody for Success and other initiatives, Boeing has been product line. It will be easy for Airbus to become com- squeezing its suppliers’ margins by demanding price placent and coast on this product lineup, though, jeop- concessions, aftermarket rights and lengthened pay- ardizing its strong design capabilities. ment terms. The results are a weakened supply chain So far, unlike Boeing, Airbus has not announced seri- and a lot of alienation. ous R&D budget cuts. Yet it is not really clear what its Airbus can take advantage of Boeing’s aggressive ap- engineers are doing: Airbus has not had an active new proach by quietly telling suppliers that it will offer bet- commercial development program since the A350-1000 ter terms and conditions in exchange for superior and entered service in February 2018. Factory digitization, more innovative products. This approach could mean green initiatives and ancillary aviation concepts are not that the next generation of Airbus jets will be more com- The Courage to Meet Tomorrow's Challenges Today the same as designing a new jet. Some kind of new pro- petitive than Boeing’s, since Airbus’ will be enabled by gram—even just a stretched A220-500—is essential to best-in-class subsystems and technologies that surpass keep jet design and integration skills intact. what Boeing’s aggrieved suppliers are willing to provide. IAI draws on innovative solutions and proven technologies to meet today and tomorrow's challenges. ➌ Rejuvenate defense. Two decades ago, Airbus (and The COVID-19 downturn will be brutal. But if Airbus We've been creating exceptional solutions since 1953. predecessor EADS) defense programs were all about prioritizes long-term outcomes, it will come out of it IAI offers tailored interconnected and interoperable solutions within and across domains. to hit their stride. The A400M transport, Eurofighter/ stronger than ever. c Leap into the future together with us. Typhoon, Tiger and NH90 helicopters and others had promising futures. Today, these platforms are winding Contributing columnist Richard Aboulafia is vice president of www.iai.co.il • [email protected] down, with dwindling backlogs. analysis at Teal Group. He is based in Washington.
10 AVIATION WEEK & SPACE TECHNOLOGY/SEPTEMBER 14-27, 2020 AviationWeek.com/AWST COMMENTARY GOING CONCERNS MICHAEL BRUNO
LEAVE IT TO A SILICON VALLEY Indeed, research continues to show the top tiers of software startup to try to puncture the the defense industry to be a nearly impenetrable cadre doom and gloom of today’s aerospace that is shrinking. Since fiscal 2015, the total number of and defense markets with a ray of hope: prime vendors doing business with the Defense De- Palantir, the big-data cruncher for the U.S. military and partment has fallen 15%, while the number of new intelligence community, expects to go public in a stock prime vendors has dropped 16%, according to a 2019 offering, according to a recent regulatory filing. report from the Center for Strategic and International Studies. At the same time, and despite a multiyear re- bound in Pentagon spending, defense contract obliga- Status Quo tions awarded to the Big Five primes increased 32%. “These trends, particularly the continued decline Why the Old Guard should in number of new entrants, are troublesome, as the not fear the new upstarts Defense Department and the National Defense Strat- egy emphasize the National Security Innovation Base Too bad it means nothing when it comes to chang- and try to attract nontraditional defense companies ing the sclerotic, government-dependent defense in- to do business with the Defense Department,” the dustrial base. think tank said. For certain, Palantir is making waves, and not just The COVID-19 crisis is only expected to make it because it is a rare new entrant to the clubby defense worse. Large pure-plays should come through the pan- contracting world—where libraries of regulations, de- demic relatively unscathed but may see lower spending cades-long vendor locks and revolving-door relationships make for almost insurmountable Pentagon Prime Vendors Continue Fall-Off barriers against outside competitors. Early 80,000 Legacy Vendor last decade, Palantir fought its way onto the 70,000 U.S. Army’s Distributed Common Ground Sys- 60,000 tem despite reluctance from service leaders at 50,000 the time and quiet congressional lobbying from 40,000 New Entrant established defense primes. 30,000
The company is backed in part by Peter Count Vendor 20,000 Thiel, who started PayPal with Elon Musk and who has differentiated himself from other tech 10,000 0 titans by publicly endorsing President Donald 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Trump’s reelection campaign. In the guise of a Fiscal Year prospectus for potential stock investors, Source: Center for Strategic and International Studies Palantir made what amounted to a public oath Source: S S of allegiance to government customers. The move growth outlooks, according to Capital Alpha Partners helped gloss over disclosures that Palantir—with defense analyst Byron Callan. Mergers and acquisi- $3 billion in venture capital along with annual reve- tions will become an even more important corporate nue—has not been profitable in its 17-year history and tool for delivering growth in 2021-25 and will further lost $590 million last year alone. concentrate the sector. There are other challenges. As AllianceBernstein “One factor that has struck us is the stability among analysts noted Aug. 25, Palantir still is small relative to defense contractors over the past 5-10 years,” he said the major government information technology contrac- in August. “With the exception of SpaceX, there has tors such as Leidos and General Dynamics Information not been a new entrant that has scaled to multi-hun- Technology. Plus other large defense contractors tend dred million dollars in annual sales.” to have operating margins in the high-single-digit range But do Palantir, SpaceX and Anduril represent a and valuations of just about 1x sales—far below the multi- new wave of entrants? Probably not. In a recent let- ples that investors expect from software companies. ter to defense officials published in DefenseNews, sev- Still, Palantir, Musk’s SpaceX and Thiel-supported An- eral venture capital leaders bemoaned how govern- duril—another Silicon Valley startup that aims to marry ment, with all its actions to date, seems eager to rally artificial intelligence, UAVs and sensors for government around its legacy primes. customers and which in July unveiled a $200 million Se- “We need new entrants into the defense indus- ries C round of new funding—certainly are attention-get- try more than ever, but without government support ting newcomers to the government contracting arena. through crises like this one, the talent and capital sim- But all three have yet to pass the test of time as going ply won’t be there,” they wrote. “If we see the same concerns—a key feature in a sector where government old story of the government claiming to support small programs can run half a century, like the B-52—let alone businesses but prioritizing its old incumbents, those as indicators of new competition in defense acquisition. investment dollars will disappear.” c
12 AVIATION WEEK & SPACE TECHNOLOGY/SEPTEMBER 14-27, 2020 AviationWeek.com/AWST COMMENTARY GOING CONCERNS Enabling the Extraordinary MICHAEL BRUNO To Fly To Power To Live
LEAVE IT TO A SILICON VALLEY Indeed, research continues to show the top tiers of software startup to try to puncture the the defense industry to be a nearly impenetrable cadre doom and gloom of today’s aerospace that is shrinking. Since fiscal 2015, the total number of and defense markets with a ray of hope: prime vendors doing business with the Defense De- Palantir, the big-data cruncher for the U.S. military and partment has fallen 15%, while the number of new intelligence community, expects to go public in a stock prime vendors has dropped 16%, according to a 2019 offering, according to a recent regulatory filing. report from the Center for Strategic and International Studies. At the same time, and despite a multiyear re- bound in Pentagon spending, defense contract obliga- Status Quo tions awarded to the Big Five primes increased 32%. “These trends, particularly the continued decline Why the Old Guard should in number of new entrants, are troublesome, as the not fear the new upstarts Defense Department and the National Defense Strat- egy emphasize the National Security Innovation Base Too bad it means nothing when it comes to chang- and try to attract nontraditional defense companies ing the sclerotic, government-dependent defense in- to do business with the Defense Department,” the dustrial base. think tank said. For certain, Palantir is making waves, and not just The COVID-19 crisis is only expected to make it because it is a rare new entrant to the clubby defense worse. Large pure-plays should come through the pan- contracting world—where libraries of regulations, de- demic relatively unscathed but may see lower spending cades-long vendor locks and revolving-door relationships make for almost insurmountable Pentagon Prime Vendors Continue Fall-Off barriers against outside competitors. Early 80,000 Legacy Vendor last decade, Palantir fought its way onto the 70,000 U.S. Army’s Distributed Common Ground Sys- 60,000 EXTREME tem despite reluctance from service leaders at 50,000 the time and quiet congressional lobbying from 40,000 New Entrant established defense primes. 30,000
The company is backed in part by Peter Count Vendor 20,000 Thiel, who started PayPal with Elon Musk and 10,000 who has differentiated himself from other tech Around the globe, military and aerospace systems titans by publicly endorsing President Donald 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Advanced thermal designers have turned to Meggitt to help them Trump’s reelection campaign. In the guise of a Fiscal Year prospectus for potential stock investors, meet thermal and power management challenges Source: Center for Strategic and International Studies management for extreme Palantir made what amounted to a public oath Source: S S with compact, lightweight, and efficient vapor cycle of allegiance to government customers. The move growth outlooks, according to Capital Alpha Partners systems, liquid cooling systems and components helped gloss over disclosures that Palantir—with defense analyst Byron Callan. Mergers and acquisi- military environments $3 billion in venture capital along with annual reve- tions will become an even more important corporate including fans, pumps and compressors. nue—has not been profitable in its 17-year history and tool for delivering growth in 2021-25 and will further lost $590 million last year alone. concentrate the sector. Meggitt has developed cooling solutions for the most There are other challenges. As AllianceBernstein “One factor that has struck us is the stability among challenging flight conditions, missions, and extreme analysts noted Aug. 25, Palantir still is small relative to defense contractors over the past 5-10 years,” he said the major government information technology contrac- in August. “With the exception of SpaceX, there has environments. From low supersonic flight, to high tors such as Leidos and General Dynamics Information not been a new entrant that has scaled to multi-hun- hot wet hover, to desert and arctic operations, our Technology. Plus other large defense contractors tend dred million dollars in annual sales.” thermal management solutions are proven and ready to have operating margins in the high-single-digit range But do Palantir, SpaceX and Anduril represent a to meet the challenge of the more electronic platform and valuations of just about 1x sales—far below the multi- new wave of entrants? Probably not. In a recent let- ples that investors expect from software companies. ter to defense officials published in DefenseNews, sev- and battlefield. Still, Palantir, Musk’s SpaceX and Thiel-supported An- eral venture capital leaders bemoaned how govern- duril—another Silicon Valley startup that aims to marry ment, with all its actions to date, seems eager to rally Tel: +1 949 465 7700 artificial intelligence, UAVs and sensors for government around its legacy primes. customers and which in July unveiled a $200 million Se- “We need new entrants into the defense indus- E-mail: [email protected] ries C round of new funding—certainly are attention-get- try more than ever, but without government support ting newcomers to the government contracting arena. through crises like this one, the talent and capital sim- But all three have yet to pass the test of time as going ply won’t be there,” they wrote. “If we see the same www.meggittdefense.com concerns—a key feature in a sector where government old story of the government claiming to support small programs can run half a century, like the B-52—let alone businesses but prioritizing its old incumbents, those as indicators of new competition in defense acquisition. investment dollars will disappear.” c
12 AVIATION WEEK & SPACE TECHNOLOGY/SEPTEMBER 14-27, 2020 AviationWeek.com/AWST COMMENTARY LEADING EDGE GRAHAM WARWICK
BARELY 20 YEARS AGO, PIPISTREL fl ight experience back to the two-seat Taurus Electro of was a virtual unknown in the aviation in- 2007. “How to do it? Fly, fl y and fl y more,” he says. dustry, a tiny Slovenian manufacturer of In ground testing on an iron bird, all elements of the small ultralight aircraft. In June, the pri- power train operate at the same electrical potential be- vately held company entered the history books when it cause the system is connected to the Earth. “When you received the fi rst internationally recognized type certif- fl y, there’s no cable to the ground,” Tomazic says. “Almost icate for an electric aircraft. by defi nition, the components will be fl oating in voltage. European Union Aviation Safety Agency (EASA) cer- If you don’t make sure they all operate at the same po- tifi cation for the Velis Electro two-seat trainer—and tential, you may see interesting things going on.” its in-house-developed electric engine and battery sys- Other issues relate to electromagnetic interference and tem—was not the fi rst aviation milestone for Pipistrel. cable routing and can range from “some interesting In 2007, its one-o , dual-fuselage Taurus G4 won NASA’s ringing and singing in the radios” to spurious cockpit indi- Green Flight Challenge ; the battery-powered four-seater cations from the air data computers, he says. “You learn exceeded the equivalent of 400 mpg per passenger. a lot about the placement of AC cables between the power electronics and the motor, because those are kilowatt- Electric Experience level antennas—very exciting things,” Tomazic notes. Vision of clean, quiet aviation drives Slovenian manufacturer
The most popular misconception about electric aircraft that Pipistrel has encountered? That an aircraft needs 4-hr. fl ight endurance to be useful, far beyond the capabil- ity of today’s batteries. The Velis Electro can fl y a 50-min. I IS R tra c-pattern training mission. “Just because you can Pipistrel followed up in 2014 with the WattsUp, a proof- fl y for half an hour or an hour doesn’t render this aircraft of-concept electric trainer that started its journey toward useless,” Tomazic says. “ It could be very useful.” the Velis Electro. Along the way, German aerospace cen- Pipistrel is not stopping at the Velis Electro. The ter DLR modifi ed the Taurus G4 into the Hy4, which in company is leading Europe’s Mahepa project, which is 2016 became the fi rst four-seater to fl y on hydrogen fuel- developing a hybrid-electric propulsion architecture us- cell propulsion. That same year, Pipistrel ground-tested ing modular components. This will fl y with fuel cells in a 200-kW serial hybrid-electric power train. the Hy4, and batteries and a combustion engine in the All this experience proved invaluable in gaining Panthera. Under Mahepa, Pipistrel is studying scaling EASA approval for not only the Velis Electro but also the system up to a 19-seat commuter aircraft. a complete licensing, operating and maintenance eco- The company also has announced its next aircraft: It system around the aircraft that allows buyers to begin is an electric vertical-takeo -and-landing (eVTOL) type training immediately. “We ship the airplane with the and a departure from the more than 2,000 light aircraft it charger as well,” notes Tine Tomazic, Pipistrel group has built to date. But it is not an urban air taxi for Uber, chief technology o cer. as expected. It is the Nuuva family of hybrid-electric un- “Why do we do it?” he asks , referring to electric pro- manned cargo aircraft. With a 1,700-kg (3,750-lb.) maxi- pulsion. The answer is cost: The energy cost of fl ying the mum takeo weight and 13.2-m (43.3-ft.) span, the V300 Velis Electro is just €0.9 ($1.06 ) per hour. That compares is designed to carry a 300-kg payload 300 km (185 mi.) at with $40-60 per hour in avgas to fl y a popular piston- 165 kt. The 6-m-span, 100-kg V20 will carry up to 16 kg. powered trainer such as the Cessna 172. Factoring in The company slowed work on its Uber design to ac- battery replacement takes the Velis Electro to €17 per celerate development of the unmanned cargo aircraft, hour, but even its total operating cost of €33 per hour is arguing regulatory and other constraints could delay a fraction of the $150-200 per hour for a 172. entry into service of eVTOL air taxis to 2028. The V300 Pipistrel has learned much by bringing the Velis Elec- is planned to enter service in 2023, but deliveries of the tro to market and hopes its EASA certifi cation “will cre- V20 could begin as early as 2021. Pipistrel says the sim- ate good precedents for other applicants in the pipeline,” ple, reliable Nuuva will be able to operate from standard Tomazic says. One key has been Pipistrel’s electrifi ed helipads at a fraction of the cost of a helicopter. c
1 AVIATION WEEK & SPACE TECHNOLOGY/SEPTEMBER 14-27, 2020 AviationWeek.com/AWST COMMENTARY LEADING EDGE GRAHAM WARWICK
BARELY 20 YEARS AGO, PIPISTREL fl ight experience back to the two-seat Taurus Electro of was a virtual unknown in the aviation in- 2007. “How to do it? Fly, fl y and fl y more,” he says. dustry, a tiny Slovenian manufacturer of In ground testing on an iron bird, all elements of the small ultralight aircraft. In June, the pri- power train operate at the same electrical potential be- PW800 vately held company entered the history books when it cause the system is connected to the Earth. “When you received the fi rst internationally recognized type certif- fl y, there’s no cable to the ground,” Tomazic says. “Almost icate for an electric aircraft. by defi nition, the components will be fl oating in voltage. A LEGENDARY BOMBER. European Union Aviation Safety Agency (EASA) cer- If you don’t make sure they all operate at the same po- tifi cation for the Velis Electro two-seat trainer—and tential, you may see interesting things going on.” its in-house-developed electric engine and battery sys- Other issues relate to electromagnetic interference and AND THE ENGINE THAT TAKES IT FURTHER. tem—was not the fi rst aviation milestone for Pipistrel. cable routing and can range from “some interesting In 2007, its one-o , dual-fuselage Taurus G4 won NASA’s ringing and singing in the radios” to spurious cockpit indi- FOR THE USAF AND THE B-52, THE FUTURE BEGINS NOW. Green Flight Challenge ; the battery-powered four-seater cations from the air data computers, he says. “You learn exceeded the equivalent of 400 mpg per passenger. a lot about the placement of AC cables between the power Pratt & Whitney’s revolutionary PW800 changes the game for the United States Air Force — and creates new possibilities electronics and the motor, because those are kilowatt- for what its B-52 can accomplish. With unmatched fuel efficiency — and significantly lower maintenance costs — level antennas—very exciting things,” Tomazic notes. the PW800 will take the B-52’s capabilities to new heights for decades to come. Electric Experience Vision of clean, quiet aviation drives EXPLORE THE FUTURE OF FLIGHT AT PRATTWHITNEY.COM/B52 Slovenian manufacturer
The most popular misconception about electric aircraft that Pipistrel has encountered? That an aircraft needs 4-hr. fl ight endurance to be useful, far beyond the capabil- ity of today’s batteries. The Velis Electro can fl y a 50-min. I IS R tra c-pattern training mission. “Just because you can Pipistrel followed up in 2014 with the WattsUp, a proof- fl y for half an hour or an hour doesn’t render this aircraft of-concept electric trainer that started its journey toward useless,” Tomazic says. “ It could be very useful.” the Velis Electro. Along the way, German aerospace cen- Pipistrel is not stopping at the Velis Electro. The ter DLR modifi ed the Taurus G4 into the Hy4, which in company is leading Europe’s Mahepa project, which is 2016 became the fi rst four-seater to fl y on hydrogen fuel- developing a hybrid-electric propulsion architecture us- cell propulsion. That same year, Pipistrel ground-tested ing modular components. This will fl y with fuel cells in a 200-kW serial hybrid-electric power train. the Hy4, and batteries and a combustion engine in the All this experience proved invaluable in gaining Panthera. Under Mahepa, Pipistrel is studying scaling EASA approval for not only the Velis Electro but also the system up to a 19-seat commuter aircraft. a complete licensing, operating and maintenance eco- The company also has announced its next aircraft: It system around the aircraft that allows buyers to begin is an electric vertical-takeo -and-landing (eVTOL) type training immediately. “We ship the airplane with the and a departure from the more than 2,000 light aircraft it charger as well,” notes Tine Tomazic, Pipistrel group has built to date. But it is not an urban air taxi for Uber, chief technology o cer. as expected. It is the Nuuva family of hybrid-electric un- “Why do we do it?” he asks , referring to electric pro- manned cargo aircraft. With a 1,700-kg (3,750-lb.) maxi- pulsion. The answer is cost: The energy cost of fl ying the mum takeo weight and 13.2-m (43.3-ft.) span, the V300 Velis Electro is just €0.9 ($1.06 ) per hour. That compares is designed to carry a 300-kg payload 300 km (185 mi.) at with $40-60 per hour in avgas to fl y a popular piston- 165 kt. The 6-m-span, 100-kg V20 will carry up to 16 kg. powered trainer such as the Cessna 172. Factoring in The company slowed work on its Uber design to ac- battery replacement takes the Velis Electro to €17 per celerate development of the unmanned cargo aircraft, hour, but even its total operating cost of €33 per hour is arguing regulatory and other constraints could delay a fraction of the $150-200 per hour for a 172. entry into service of eVTOL air taxis to 2028. The V300 Pipistrel has learned much by bringing the Velis Elec- is planned to enter service in 2023, but deliveries of the tro to market and hopes its EASA certifi cation “will cre- V20 could begin as early as 2021. Pipistrel says the sim- ate good precedents for other applicants in the pipeline,” ple, reliable Nuuva will be able to operate from standard Tomazic says. One key has been Pipistrel’s electrifi ed helipads at a fraction of the cost of a helicopter. c
1 AVIATION WEEK & SPACE TECHNOLOGY/SEPTEMBER 14-27, 2020 AviationWeek.com/AWST COMMENTARY THE LAUNCHPAD IRENE KLOTZ
MANY OF US HAVE BEEN EXCLUDED Panel member Charles Bolden, another former astro- —or worse—at some point in our lives due naut who served as NASA’s administrator from 2009 to skin color, gender, sexual orientation, size, to 2017, grew up in the segregated South of the 1950s religion, family pecking order, etc. We’re under the specter of lynchings. also, unknowingly or otherwise, part of the problem. Years later at the U.S. Naval Academy, Bolden faced In an effort to raise awareness of discrimina - another form of racism. “The assumption was because tion and to stem racist practices and proclivities, I was black that I couldn’t swim,” he says. “I was a ExploreMars.org devoted an opening day panel of its competitive swimmer all my life, so I was a damn good Aug. 31-Sept. 2 Humans To Mars (H2M) summit to the swimmer. It was always funny, because the instruc- topic of race, an event held virtually this year due to the tors would see [me] get in the pool and they’d go get COVID-19 pandemic. the shepherd’s crook For many of us, because they thought including staff and Jettisoning Racism they were going to management of this have to pull me out.” magazine, our virtual As his career pro- workplaces have be- gressed, Bolden found come a fruitful ground that “the higher you for new discussions get in rank, the more about increasing di- subtle” the racism versity and combating and discrimination racism. We all have became—dogging skin in the game, so him all the way into to speak. the NASA adminis- The takeaway from trator’s office. the H2M panel, mod- Helpfully, panel erated by Lockheed member Danielle Martin’s J.R Edwards Wood, director of the and planetary scien- EXPLOREMARS.ORG Space Enabled re- tist Sian Proctor with Mars exploration advocates search group at the Arizona’s Maricopa tackle diversity and inclusion Massachusetts Insti- Community College tute of Technology’s District, is that our future on Mars will be deter- Media Lab, provided a two-book reading list: Home mined by who we resolve to be on Earth today, notes from Nnedi Okorafor’s spacefaring science fiction series, ExploreMars President Janet Ivey. Binti, and How To Be An Antiracist by Boston University’s “I remember when I was in high school I was in the Ibram Kendi. car with my girlfriend, and a police officer rolled up on “I am a space engineer, but my goal is actually to us,” recalled panel member Leland Melvin, a former develop research abilities to combine antiracism with NASA astronaut and retired National Football League our space engineering research so that all of us could wide receiver. “He took her out of the car and told her then ask ourselves: What am I doing in my job—any that I was raping her because he wanted me to go to job you might have in the space community, anything jail,” Melvin said. “You know, when young black men get you’re designing or building or leading—to be antiracist into the prison system, they really never get out. They while I do it?” Wood says. never have a second chance. “It simply means asking two questions,” she con- “Every father in the black community has a conver- tinues. “Am I bringing anything from the history of sation with their son to tell them that if you get stopped racist ideas and policies in the U.S. and repeating by an officer, you assume the position, which is ‘10 and those in my work? And second: When I evaluate the two’ [hands on the wheel]. You’re very respectful . . . outcomes of my work—whether it’s a communications all these things. system, a hardware system or an event—who is ben- “I’ve been to space two times. I’ve ridden this rocket efiting, and are people from different racial groups with millions of pounds of thrust, and not once was I benefiting, equally?” afraid going to space,” Melvin says. “It’s when I’ve been And the last word goes to NASA’s Camille Alleyne, stopped by police officers I didn’t even know that I was deputy manager of the Commerical Lunar Payload starting to sweat and was holding the steering wheel Services program at the Johnson Space Center in really hard. Houston, who counsels: Always show up as your most “People have to ensure two things,” he adds. “Make authentic self. sure they’re not part of the problem . . . and [decide] You can view the entire panel discussion, “Celebrat- what are they doing to help—being antiracist versus ing Black Lives in the Space Industry: An Exchange of not a racist.” Leadership Stories and Experiences,” on YouTube. c
16 AVIATION WEEK & SPACE TECHNOLOGY/SEPTEMBER 14-27, 2020 AviationWeek.com/AWST COMMENTARY
THE LAUNCHPAD Innovation in Miniature IRENE KLOTZ
MANY OF US HAVE BEEN EXCLUDED Panel member Charles Bolden, another former astro- —or worse—at some point in our lives due naut who served as NASA’s administrator from 2009 to skin color, gender, sexual orientation, size, to 2017, grew up in the segregated South of the 1950s WHEN IT COMES TO PERFORMANCE, religion, family pecking order, etc. We’re under the specter of lynchings. also, unknowingly or otherwise, part of the problem. Years later at the U.S. Naval Academy, Bolden faced In an effort to raise awareness of discrimina - another form of racism. “The assumption was because WE’RE YOUR WINGMAN. tion and to stem racist practices and proclivities, I was black that I couldn’t swim,” he says. “I was a ExploreMars.org devoted an opening day panel of its competitive swimmer all my life, so I was a damn good Aug. 31-Sept. 2 Humans To Mars (H2M) summit to the swimmer. It was always funny, because the instruc- topic of race, an event held virtually this year due to the tors would see [me] get in the pool and they’d go get COVID-19 pandemic. the shepherd’s crook For many of us, because they thought including staff and Jettisoning Racism they were going to management of this have to pull me out.” magazine, our virtual As his career pro- workplaces have be- gressed, Bolden found PEACE OF MIND, SINCE 1948. come a fruitful ground that “the higher you Count on The Lee Company for relentless support and for new discussions get in rank, the more about increasing di- subtle” the racism unsurpassed reliability. That’s been our approach for versity and combating and discrimination racism. We all have became—dogging over 70 years, which has placed our field-proven skin in the game, so him all the way into Microhydraulic fluid control components on to speak. the NASA adminis- The takeaway from trator’s office. board every military and commercial aircraft the H2M panel, mod- Helpfully, panel flying today. So, whether you need a erated by Lockheed member Danielle Martin’s J.R Edwards Wood, director of the standard or custom-engineered solution, EXPLOREMARS.ORG and planetary scien- Space Enabled re- choose The Lee Company and relax. tist Sian Proctor with Mars exploration advocates search group at the Arizona’s Maricopa tackle diversity and inclusion Massachusetts Insti- We’ve got your back. Community College tute of Technology’s District, is that our future on Mars will be deter- Media Lab, provided a two-book reading list: Home mined by who we resolve to be on Earth today, notes from Nnedi Okorafor’s spacefaring science fiction series, ExploreMars President Janet Ivey. Binti, and How To Be An Antiracist by Boston University’s “I remember when I was in high school I was in the Ibram Kendi. car with my girlfriend, and a police officer rolled up on “I am a space engineer, but my goal is actually to us,” recalled panel member Leland Melvin, a former develop research abilities to combine antiracism with NASA astronaut and retired National Football League our space engineering research so that all of us could wide receiver. “He took her out of the car and told her then ask ourselves: What am I doing in my job—any that I was raping her because he wanted me to go to job you might have in the space community, anything jail,” Melvin said. “You know, when young black men get you’re designing or building or leading—to be antiracist into the prison system, they really never get out. They while I do it?” Wood says. never have a second chance. “It simply means asking two questions,” she con- “Every father in the black community has a conver- tinues. “Am I bringing anything from the history of sation with their son to tell them that if you get stopped racist ideas and policies in the U.S. and repeating by an officer, you assume the position, which is ‘10 and those in my work? And second: When I evaluate the Your Microhydraulics Flight Manual. two’ [hands on the wheel]. You’re very respectful . . . outcomes of my work—whether it’s a communications The Lee Technical Hydraulic Handbook all these things. system, a hardware system or an event—who is ben- has, for decades, served as the industry- “I’ve been to space two times. I’ve ridden this rocket efiting, and are people from different racial groups standard engineering reference for hydraulic with millions of pounds of thrust, and not once was I benefiting, equally?” components. Request your free copy today at afraid going to space,” Melvin says. “It’s when I’ve been And the last word goes to NASA’s Camille Alleyne, www.theleeco.com/new-hydraulic-handbook stopped by police officers I didn’t even know that I was deputy manager of the Commerical Lunar Payload starting to sweat and was holding the steering wheel Services program at the Johnson Space Center in really hard. Houston, who counsels: Always show up as your most “People have to ensure two things,” he adds. “Make authentic self. The Lee Company 860-399-6281 • www.TheLeeCo.com sure they’re not part of the problem . . . and [decide] You can view the entire panel discussion, “Celebrat- W E S T B R O O K • L O N D O N • P A R I S • F R A N K F U R T • M I L A N • S T O C K H O L M what are they doing to help—being antiracist versus ing Black Lives in the Space Industry: An Exchange of not a racist.” Leadership Stories and Experiences,” on YouTube. c
16 AVIATION WEEK & SPACE TECHNOLOGY/SEPTEMBER 14-27, 2020 AviationWeek.com/AWST COMMERCIAL AVIATION > 787 quality misses p. 22 Asia airline recovery p. 24 European airline crisis p. 26 REALITY BITES > MORE AIRCRAFT > AVIATION WEEK DATA > MARKET CONTRACTS PRODUCTION CUTS SUGGESTS 16,000 BY 30% COMPARED TO LOOM, ANALYSTS SAY DELIVERIES IN 10 YEARS PREVIOUS FORECASTS
Annual Commercial Aircraft Deliveries 2015-30 Aircraft 2,000 Projected 1,800
1,600
1,400
1,200
1,000
800
600
400
200
0 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Source: a o ee o erc al a o lee a oreca
Source: a o ee o erc al a o lee a oreca Jens Flottau Frankfurt and Sean Broderick and Michael Bruno Washington
ix months after commercial aero- Some big-picture perspective is needed to recap where the industry is. Twenty-nineteen was the last year in what space entered its worst-ever crisis, was called a super-cycle. Airlines in the U.S. in particular more data on tra c trends is becom- fi nally found ways to generate good profi t margins —so good ing available, and analysts are begin- that American Airlines CEO Doug Parker predicted they S would never su er a loss again. Tra c growth fl attened and ning to better understand what the near- and overall airline profi ts declined toward the end of the last long-term outlooks are for commercial aircraft decade, but times were still really good. production. New Aviation Week Intelligence Aircraft manufacturers believed in a never-ending growth Network data suggests demand will be down cycle, too. Airbus at one point talked about monthly sin- gle-aisle production in excess of 70 aircraft. Boeing was chas- around 30% over the next 10 years compared ing its rival, only to be held back by the grounding of the 737 to previous assumptions. The more worrying MAX, angering customers that complained the OEM was near-term threat is that OEMs have not yet cut destroying network expansion and profi ts at a time when more capacity was needed. production enough and will have to decide on There is an argument that pre-COVID-19 production plan- more reductions quickly. ning was too optimistic, even if the good times had persisted.
1 AVIATION WEEK & SPACE TECHNOLOGY/SEPTEMBER 14-27, 2020 AviationWeek.com/AWST COMMERCIAL AVIATION > 787 quality misses p. 22 Asia airline recovery p. 24 European airline crisis p. 26
In its 2019 global market forecast (GMF), Airbus projected Commercial Aircraft Deliveries a demand for 39,000 new aircraft over the next 20 years, by Aircraft Type, 2021-30 while Boeing saw a market for 44,000 units. If Airbus’ pro- jection had been accurate, the industry as a whole could Turboprop REALITY BITES have produced an average of 1,970 aircraft with more than Regional Jet 100 seats annually until 2038. But in 2019, Airbus and Boeing 6% > MORE AIRCRAFT > AVIATION WEEK DATA > MARKET CONTRACTS alone would have already ended up close to 1,900 aircraft had 7% PRODUCTION CUTS SUGGESTS 16,000 BY 30% COMPARED TO MAX deliveries continued as planned. Taking the GMF into account, there was already no more room for any growth be- LOOM, ANALYSTS SAY DELIVERIES IN 10 YEARS PREVIOUS FORECASTS yond last year’s rates. And there was hardly any room left for existing or emerging competitors such as Embraer, Comac Widebody 16% or United Aircraft Corp. (UAC) that would surely take a Narrowbody Annual Commercial Aircraft Deliveries share of the large regional/small narrowbody demand—or 71% more painful for Boeing and Airbus, the domestic China and 2015-30 Russia markets. Aircraft Going into the COVID-19 outbreak, the thinking was still 2,000 that there would be a relatively short-term dip through Projected which narrowbody deliveries could be sustained at a rela- 1,800 tively high rate. That rate would have even allowed Boeing to resume some level of MAX deliveries from the end of this year or when regulators unground the aircraft. The target Source: Aviation Week 2021 Commercial Aviation Fleet and MRO Forecast 1,600 OEMs had in mind was to reach the level of production they were used to as quickly as possible. Only a few weeks ago, too high relative to deliveries,” they said. “This is particularly 1,400 Airbus CEO Guillaume Faury was still dreaming of a steep an issue for Airbus, which intends to produce 40 A320neos rise in narrowbody deliveries from 2022, which admittedly per month through 2021. Airbus was able to deliver those 1,200 could still happen if things go exceptionally well. But the in July, but weSource: do Aviation not Week believe 2021 Commercial that Aviation rate Fleet can and MRO be Forecast sustained. It sentiment from most analysts has now changed. The sum- is an issue for Boeing and Airbus on widebodies, [as both] mer, as illustrated by the July traffic figures released by the are already delivering far fewer airplanes than they are pro- 1,000 International Air Transport Association (IATA), continues ducing. If one expects a global resolution of COVID issues to be disappointing. Global air travel is still down 80% from in 2021 that could change the outlook. But we see the odds 800 last year, and long-haul international travel is hardly exis- as against that.” tent as most countries keep some form of travel restrictions Agency Partners analyst Sash Tusa wrote to clients: “We 600 in place. remain very surprised that, given an arguably weakening The outlook for the fall and winter, low seasons even in COVID-19 backdrop, and impending oversupply as Boeing economic booms, is so frightening that IATA Director Gen- restarts 737 MAX deliveries, Airbus should even be talking 400 eral and CEO Alexandre de Juniac is now calling for a second about raising production rates, let alone from as early as round of government bailouts: “The initial round of mea- the second half of 2021. We suspect that Airbus and Boeing 200 sures will need to be topped up, and the debt burden cannot are now playing a potentially damaging game of chicken: be increased,” he said. According to IATA, governments have Neither will cut rates until airlines agree to pay the costs of 0 pumped around $120 billion into the airline sector globally the deferrals, especially since premature cuts might cede 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 to avoid financial collapse. deliveries share to the competitor.” “If airline passenger volumes don’t start to improve Airbus so far cut rates for the A320neo family from 60 Source: a o ee o erc al a o lee a oreca meaningfully in 2021, we are likely to see further aircraft to 40 aircraft per month, for the A350 from 10 to five, and Source: a o ee o erc al a o lee a oreca production rate cuts,” writes Jonathan Root, senior vice for the A330neo from five to around two. But Tusa argues Jens Flottau Frankfurt and Sean Broderick and Michael Bruno Washington president at Moody’s Investors Service. Large commercial more painful reductions have to be made. He predicts that aircraft production will be around 30-40% lower than 2019 A320neo rates will shrink to 24 aircraft per month in 2021, ix months after commercial aero- Some big-picture perspective is needed to recap where levels in 2021. New-aircraft build rates will partially depend while A220 output will go from four per month in 2019 to two, the industry is. Twenty-nineteen was the last year in what on resumption of Boeing 737 MAX production, with manu- new-build A350 aircraft will be down to three, and A330neo space entered its worst-ever crisis, was called a super-cycle. Airlines in the U.S. in particular facturing volumes for other aircraft remaining flat or even production will drop to two. more data on tra c trends is becom- fi nally found ways to generate good profi t margins —so good declining, Root wrote in an Aug. 27 report. In 2025, Tusa expects Airbus to produce no more than 46 ing available, and analysts are begin- that American Airlines CEO Doug Parker predicted they The outlook from credit analyst Root matches what a A320neo family aircraft monthly, as well as six A350s, six S would never su er a loss again. Tra c growth fl attened and growing list of sell-side stock analysts are expecting. A trio A220s and three A330neos. ning to better understand what the near- and overall airline profi ts declined toward the end of the last of AllianceBernstein analysts told their investor clients on However, Charles Armitage, European Aerospace and De- long-term outlooks are for commercial aircraft decade, but times were still really good. Aug. 24 that they are not seeing substantial improvement fence analyst at Citi Research, has a different view. “What production. New Aviation Week Intelligence Aircraft manufacturers believed in a never-ending growth in prospects since a June industry report. Doug Harned, [Airbus] is doing is not stupid,” he says. “If you believe that Network data suggests demand will be down cycle, too. Airbus at one point talked about monthly sin- George Zhao and Caius Slater said they expect Airbus and 2,400 aircraft is the demand over the next four years, then it gle-aisle production in excess of 70 aircraft. Boeing was chas- Boeing to eventually deliver most airplanes currently in pro- is a sensible thing to do.” He argues that it is not very painful around 30% over the next 10 years compared ing its rival, only to be held back by the grounding of the 737 duction, as airlines have already paid in cash and the aircraft to build up inventory in a low-interest-rate environment be- to previous assumptions. The more worrying MAX, angering customers that complained the OEM was have been built for specific carriers. But they see risk rising cause it saves Airbus the difficulty of cutting back and then near-term threat is that OEMs have not yet cut destroying network expansion and profi ts at a time when later this year and into 2021, with airlines reluctant to put rebuilding in a few years and does not disrupt production more capacity was needed. more cash into progress payments. unduly. The question is whether the market will recover to production enough and will have to decide on There is an argument that pre-COVID-19 production plan- “Even with high replacement demand, which we expect, the expected level and when it will do so. “There are huge more reductions quickly. ning was too optimistic, even if the good times had persisted. production rate plans at Airbus and Boeing through 2023 are uncertainties,” Armitage says.
1 AVIATION WEEK & SPACE TECHNOLOGY/SEPTEMBER 14-27, 2020 AviationWeek.com/AWST AviationWeek.com/AWST AVIATION WEEK & SPACE TECHNOLOGY/SEPTEMBER 14-27, 2020 19 COMMERCIAL AVIATION
This factory-new Finnair Airbus much like to hand over to cus- tomers. Assuming regulators do A350 is one of thousands of not start granting MAX approv- aircraft currently stored. als much before late in the year, E S LO A A S however, an aggregate delivery How will we build a total of fewer than 1,000 new air- craft is a strong possibility. sustainable global space economy? If so, it would mark only the 10th time in the last three de- cades that air transport man- ufacturers jointly handed over fewer than 1,000 aircraft in a How will we maintain a calendar year—and the first time since 2006. Last year’s to- permanent off-world civilization? tal, held down by the MAX de- livery halt that kept some 400 aircraft from entering service, was 1,425. The drop in deliveries and What international policies are needed to jump in both retirements and temporary removals will leave ensure the peaceful use of space for all? the year-end 2020 global fl eet of aircraft certifi ed for 19 or more Another twist comes from the opportunities for order seats on par with 2015’s fl eet size, underscoring the pandem- cancellation and deferral stemming from the MAX debacle. ic’s ramifi cations on global air tra§ c demand. “Earlier this year, we thought having 737 MAX exposure While retirements are on the rise, many stored aircraft was a liability for U.S. airlines, and in January we downgrad- are expected to rejoin operators’ fl eets to support demand ed Southwest Airlines on this,” Vertical Research Partners recovery. Aviation Week projects 2,100 aircraft returning wrote Aug. 19. “Now we view a MAX orderbook purely as a from long-term storage by 2023. source of fl eet optionality, a valuable asset when the demand The global fl eet is projected to grow at a compound annual outlook is less certain than ever.” growth rate of 2.4% in 2021-30, resulting in a fl eet of 38,300 What Vertical’s Rob Stallard, Karl Oehlschlaeger and aircraft, the forecast says. New deliveries will total 16,200 Darryl Genovesi mean is: Because Boeing has failed to meet during the decade—about 30% lower than prepandemic its contractual commitments, fi rm MAX orders have become estimates. options for airlines to take MAX deliveries “if and when they Widebody deliveries likely will total about 2,500 during see fi t.” Vertical’s forecast is that Boeing will deliver only the 10-year stretch, which is 42% below the prepandemic 45 MAXs this year and just 192 in 2021. That would equate forecast, refl ecting the slower expected return of long-haul to 53% of the currently parked MAX inventory, with the rest demand. Narrowbody deliveries will top 11,500—a 28% de- being delivered in 2022. cline compared to prepandemic calculations. Regional jets, “While this means that our 737 production forecast is already on the decline, thanks largely to upgauging trends, more elongated than Boeing’s plan of getting to 31 [aircraft are projected to account for 1,150 deliveries, or 38% less than Without answers, per] month in early 2022, we still think there is downward before the COVID-19 outbreak. risk to our estimates,” they add. “For airlines to be taking In other words, there is room for an annual average of we’re stuck on Earth. 16–18 November 2020 | Online these 237 new MAX aircraft in 2020-21 is dependent on [re- 1,150 narrowbody deliveries for the entire industry, 250 wide- certifi cation] timing, demand recovering, no further corona- bodies and 115 large regional jets. In 2018, Airbus and Boeing virus waves, and no additional trade war fl are-ups.” combined delivered 1,225 narrowbodies (and only 816 in 2019 To solve problems, do business, and work together to According to the Aviation Week Intelligence Network fore- because of the MAX grounding). The two OEMs handed answer important questions like these, join the smartest cast, the active global air transport fl eet will be 10% smaller over 380 widebodies in 2018 and 426 last year, showing the and most ambitious leaders from around the world at the end of 2020, compared to a year earlier, thanks to a degree of contraction that is needed to adjust to the new 16-18 November 2020 at ASCEND, online. Save 25% Now blend of retirements, temporary storage and a precipitous demand level. drop in deliveries. Looking further ahead, lower demand Airlines will permanently retire nearly 9,200 aircraft This international event is designed to deliver technical coming out of the novel coronavirus pandemic will reduce during the decade, the Aviation Week forecast shows. Cal- and non-technical content in a highly interactive format. ascend.events new-aircraft deliveries 30% in the decade ahead compared endar-year peaks are projected to come in 2028 and 2029, Join representatives from 550 leading organizations to pre-downturn projections. with each year expected to see more than 1,000 retirements. in the space ecosystem for 90 technical sessions, 30 Global passenger and cargo carriers will have 27,300 air- The average of 920 retirements per year during the com- workshops, 4 keynotes and networking. Don’t miss out. Powered by craft in service on Dec. 31, down from 30,500 at the start of ing decade is a notable jump over recent fi gures. Aviation the year, the revised fi gures show. The net decline of 3,200 Week data shows that annual retirements in 2015-19 aver- aircraft includes a projected 720 retirements, or 2.4% of the aged 657 before climbing to a projected 720 in 2020, in part active fl eet. due to the pandemic’s fallout. c Deliveries this year are projected to total just 895 aircraft. The timing of the Boeing 737 MAX return-to-service approv- Aviation Week editors discuss why Airbus and als could a£ ect this number, as the manufacturer has more Boeing will need to further trim output to ride out the than 450 built MAXs sitting in storage that it would very COVID-19 crisis: INAUGURAL CORNERSTONE FOUNDING SPONSOR