Small African Regional Aircraft Southern African Transport Conference: Towards a Desired Transport Future (Safe, Sufficient & Affordable) 11th July 2018, Wednesday [Denel Aeronautics: Lesetja RT Mogoba]
1 Confidential Table Of Contents
1. Business Case & Aim Design Suite, Structural Testing, Certification
2. Design Developments
3. Partnership & Frameworks 5 Axis, High Speed Machining Thin web machining up to up to 6.5m 4. Studies Advising Business Models
5. Funding & Capitalisation Honeycomb reinforced composites Double curvature complex panels 6. Engagement Process
Sub and Main Assemblies up to 16m
DENEL GROUP 2 (SARA) Small African Regional Aircraft - Background
Denel Aeronautics Background • Denel SOC Ltd, through its Aeronautics division has been designing, modifying and manufacturing Aircraft at the Kempton Facility for over 50 years. • Denel SOC Ltd is the OEM for the Rooivalk Attack Helicopter, the Oryx Medium Transport Helicopter and the Cheetah Fighter Aircraft. • Denel has world leading Aerospace capabilities and competencies including Design, Engineering, Advanced Manufacturing and Continued Airworthiness and Systems Integration • Global OEM accreditations for Maintenance, Repair and Overhaul
Background of the Concept • Since 2012 Denel has been developing the concept of a Regional Aircraft envisaged as a 21st century transportation system for Africa. • The concept is based on the study conducted by GE/Cessna/ASD Lab Tech Team on the future community airliner concepts. • Launched publicly at the 2014 AAD Airshow, SARA has been adopted as a potential National Flagship Programme by the Joint Aerospace Steering Committee (JASC) in line with National Macro Policies of NDP, IPAP, NIPP. • In 2015, an independent Market Potential study was conducted by Lufthansa, co-funded by DTi, DPE, IDC and Denel. • The market study confirmed a viable Business case for SARA in the market and its candidacy for National Flagship. • A 1:1 Scale Mock-Up has been built to facilitate 13 post graduate studies with UP, Wits, Rhodes, NWU
DENEL GROUP 3 1. Business Case & Aim
DENEL GROUP 4 SARA Aircraft Concept Summary
24 Seater with comfortable four-abreast seating (19 + 5 seats)
Passenger, Combi or Cargo Configurations for operational versatility.
Turboprop Regional aircraft, for increased operational cost efficiency
FAR 25 certification, Pressurised cruise at 25000ft above the weather in comfort and speed and uninterrupted scheduled operations
Designed for short field performance, utilizing more airport infrastructure. Supports point to point travel and decongestion of main hubs.
Laminar flow fuselage design features ensuring improved fuel efficiency
High Wing Short Take-off and Landing (STOL) design, operation on semi- prepared airstrips. Support rural economic development (> 460 airstrips in RSA). Performance Specifications
Take-off distance < 1000m
Design Cruise 300+ KTAS (556 km/h)
Economical Cruise 280 KTAS (519 km/h)
Primary mission 800km (24 pax), Flying into Hub and Driving to Destination Secondary mission 2700km (15 pax) FlyingFlying Point into-to Hub-Point and Driving to Destination Flying Point-to-Point
DENEL GROUP 5 Vehicle for National Benefits: It’s Not About an Aircraft
OEM with Airframe Design Authority to reduce risk & certification timelines
Economic Growth & Development (National)
• Leverage African Economic Growth • African solutions for Africa • Enhance Regional mobility • Advance Global Competitiveness • International Smart Partnerships • Improve Regional integration • Knowledge-based economy • Export Revenue Growth • Enterprise development, Over 20 Companies Avionics B.O. • Export revenue from High technology Products Cockpit Drive Foreign Direct Investment Electrical • B.O. Landing Gear Comms Systems Powerplant B.O. B.O. B.O. B.O.
Industrial Development Commercial Growth Social Economic Development (National)
• Diversify advanced manufacturing • Diversification of aftersales services suite • Sustainable jobs creation capability (maintenance and life-cycle cost • Transformation of technical skill base • Deepen the inherent Industrial Base management) • Rural economy development • Harness Technology spill over from • Harness existing manufacturing • Black industrialists development the Aerospace industry. infrastructure • Leverage Defence Industrial • Drive Industrial Research & • Vehicle for multimodal transportation Development For Commercial Economic Technology Development systems (supporting DoT Master Plan) Growth • Design/development skills transfer • Vehicle to effect M&A Strategies
DENEL GROUP 6 OR Tambo SEZ & CoE Aerotropolis: Final Assembly Line Scenario
DENEL GROUP 7 Universities in 2018: SARA Human Capital Development
THRIP – Denel status: North-West University Present Human Capital Development • LEAN Manufacturing (PhD Student) • 3 Post Graduates Completed • Supply Chain (local participation) (PhD Student) • 10 Post Graduates In-Process • 4 Employees
Rhodes University WITS University Cockpit Ergonomics MEng Students: (2x MEng Students) Advanced Wing Design (STOL) (Employee at DAv) Aircraft Design Optimisation (Employee Wits University at DAv) Eye-Tracking of Pilot During Landing (MEng Student)
University of Pretoria North-West University Rhodes University BEngHons - All Electrical • MBA - Business Model for Cockpit & Cabin Fatigue Studies Control Concept (Employee at SARA Operations (2x MSc Students) Denel) • MEng - LEAN culture at a SA Aviation Organisation
DENEL GROUP 8 8 Commercial Air Travel Driving Demand: Aircraft & MRO
Commercial Market: USD 254.6Bn in 2015
DENEL GROUP 9 SARA Best in Class and Operationally Cost Competitive
DENEL GROUP 10 Lufthansa Market Study Findings – Validated Business Case
Job Creation: • Non – recurring jobs during development phase: Direct jobs: 309 (200 new engineers) • Recurring direct jobs during series production: o Airframe production: ~ 490 jobs p.a. o OEM integrator: ~ 80 jobs p.a • (6x economic multiplier) = ~ 3500 jobs p.a. sustained for period of at least 10 years
Revenue: • Sales revenue: ~ R 5 bn p.a. • Export revenue: ~ R 3.5 bn p.a. (70%) • Enterprise development :> 20 SA companies • Breakeven: 200 SARA aircraft/10 years • Substantial National benefits • Estimated development cycle approximately 7 years
Market Growth & Replacement (12 – 40 PAX Aircraft): • 161 in Africa, 313 in 6 regions, at 9% penetration • 1500 Global demand, proportional over 20 years • Passenger peak within 800km distance, in 6 regions
DENEL GROUP 11 2. Design Developments
DENEL GROUP 12 SARA 1:1 Scale Fuselage Mock-Up (January 2018)
DENEL GROUP 13 Engineering & ESD: Technical Status
Structure: Systems: Maturity A design, SAM models, initial loads & FEM Flight Deck, Performance, Mass & C of G
• Engine Installation (1.7m ahead of wing L/E) • Technical enquiries in progress with OEMs as follows: • Engine cowling design • Pratt & Whitney Canada: PT6A-67R engine candidate • Air intake design • Hartzell Propeller: HC-B5M-bladed propeller • Engine installation structure candidate • Pax door installation • Cockpit Layout • Geometrical definition • Flight Deck Concept 1 Layout done from pilot inputs • Structural concept • Engine Installation • Wing structure DDS Completed • Concept 1 Engine Installation for PT6A-67R candidate • Structural arrangement (ribs, spars and done control surfaces locations) • Aircraft Performance • Flaps, Slats and Flaperons aerodynamic • Engine losses estimation for PT6A-67R candidate definition (positioning for take off established with engine deck landing and cruise) • Take-off and Landing Performance estimates • Preliminary Empennage surface creation i.a.w completed for PT6A-67R combined with Hartzell HC- aerodynamic definition B5M 5-bladed propeller candidate • Investigation into mass penalty of non circular • Cruise Performance estimates completed for the fuselage cross sectional shape above propulsion candidate • Start of the development of a post processing • Aircraft Mass & Balance analysis tool for fuselage components i.e. • Mass & CG database & algorithm created frames, stringers and skins • Component Mass Budget updated • Conceptual investigation on Aircraft overall lay- • CG estimates completed (various pax & fuel out (Extended fuselage) i.a.w finalized Engine configurations) installation & Empennage definition • Empennage Aerodynamic Design • SARA Mock-Up Space allocation • Sizing of minimum required stabilizer areas completed (impact on overall layout of aircraft to be assessed)
DENEL GROUP 14 Concept & Prelim Design - Cost Breakdown
Concept & Prelim design - cost breakdown
Engineering & Design Drafting Labour - Concept Design
Engineering & Drafting Tools - Concept 9% 17% 7% Engineering & Design Drafting Labour - Prelim Design 2% 3% 7% Engineering & Drafting Tools - Prelim
5% Wind Tunnel Models & Testing
Qualification & Certification Planning 50% RSA Commuter Route Flight Investigation
National & International Marketing Campaign
DENEL GROUP 15 3. Partnership & Frameworks
DENEL GROUP 16 Role Of SOC/Industry As Integrator
Government OEMs
• MOUs • Policy objectives • National SWOT • Departmental integration Role of Industry • Market niches • NIP/DIP • Collaborative R&D • Funding • Benchmarking • Market Integrator • Product integrator /Prime • HCD • Transformation • Enterprise development Partnerships Extended Enterprises
• Collaborative research • Increased capacity • Product complementation • Flexibility • Enterprise development • Transformation
DENEL GROUP 17 Stakeholder Engagements Within Government, Industry, Academia
Stakeholder Period Agreement
1 THRIP Apr 2014 Joint funding to build 1:1 scale mock-up for Post Graduate studies
2 JASC Feb 2015 Co-funding for an Independent market study by DPE, DTi, IDC and Denel.
3 DST June 2015 Advanced Manufacturing Technology Roadmap Program endorse SARA and RV
4 DPE Feb 2016 Support to secure funding and Cabinet endorsement as National Flagship.
5 JASC Jun 2016 Confirmation to support endorsement of SARA as National Flagship.
6 FOSAD Jul 2016 Presentation to the Economic Cluster of DG’s, as part of national endorsement
7 AISI (DTi) Aug 2016 Supports several technology projects related to SARA
8 Gauteng IDZ Sep 2016 In partnership with City of Ekurhuleni and DTi, support SARA as anchor to establish Denel campus as IDZ/SEZ under the auspices of the Aerotropolis project 9 CSIR, IDC Oct 2016 Endorsement of SARA designated as a strategic program MOA’s to be signed
10 DoT, CAASA Nov 2016 Marketing, Certification Bilaterals support and incorporation into the Master Transportation Plan
11 Gauteng Nov 2016 Premier Makhura confirms in-principle support of SARA into the next development phases, under the Province auspices of the Aerotropolis and Gauteng IDZ
DENEL GROUP 18 Stakeholder Engagements Within Government, Industry, Academia
Stakeholder Period Agreement
12 AISI March 2017 SARA Certification Readiness Review (Report) delivered
13 CSIR May 2017 MOA for exploring collaborative opportunities fully signed
14 RSA Universities May 2017 15 Universities indicated firm interest to contribute (Human Capital Dev’) to SARA via THRIP
15 BRICS June 2017 BRICS Business Council Manufacturing Working Group (BBCMWG) participation
16 Transnet June 2017 SARA Workshop : R&D and Advanced Manufacturing symbiosis
17 Cabinet July 2017 Draft Cabinet Memo inputs shared with DPE, for Minister: DPE approval August 2017
18 The dti July 2017 SARA workshop
19 GIDZ July 2017 Submission compiled by Denel/City of Ekurhuleni/GIDZ to the dti
20 City of Ekurhuleni August 2017 Executive Mayor visit – strategic meeting and facility tour to inform draft MOA
21 IDC August 2017 Draft Standard Joint Development Agreement inputs
22 JASC November 2017 TOR : Socio Economic Impact Study requirement initiation meeting
DENEL GROUP 19 Innovation Forum Process
Generate ideas that Transform the can improve Explore potential technological organisational solutions and define potential of the products, services, a final concept. invention into and business models. economic value.
Problem/need Project solution Known? Technically proven? Significance? Economically proven? Existing solutions? Solution satisfactory?
Idea Project Strategically alignment? Final Solution Technical and economical Technically feasible? Validated? feasibility? Does a need exist? Lifecycle plan? Return on Investment? Launch plan? Resources?
Identify and assess Development of a the problem or functional prototype. need that is Prove technical, addressed by the economic and market idea. feasibility. User involvement is critical.
DENEL GROUP 20 4. Studies Advising Business Model
DENEL GROUP 21 The Role of National Aerospace Flagship Programs – Rooivalk
• Development cost: R6,2 billion . Revenues of about: R22 billion . Exports of spin off companies, of R15,4bn . Enablement of Defence Industrialization Programmes: R7,1bn . Alternative acquisition: R46 bn . Skills development – increased national competitiveness . Project Management . Engineering . Systems Integration . Certification . Artisans Performance Specifications . Technology spill overs / building blocks • Power plants (each): 1,573kW . Airframe programmes Maximum speed: 309km/h • . Gas turbine production & MRO • Cruise speed: 278km/h . • Operational ceiling: 20,000ft Economic multiplier impact (incl. indirect & induced): • Maximum range: 1,335km R24.8 bn (Gripen research based) • Mission range: 940km . Enterprise development • Endurance: up to 5hr . Denel (DAe, DD, DLS), Aerosud, Paramount, TMA, Grintek, CSIR
DENEL GROUP 22 Research Secured or Underway
AEROSPACE NATIONAL FLAGSHIP JASC Dept. Performance, Monitoring & Evaluation Cabinet Memo
SARA RELATED R&D PROJECTS Natural Fibre As Substitute For Composites Mass Mobility Transportation Composite Industrialisation Technologies Design For Additive (Aluminium based) Manufacturing Innovation Forum to support SARA Steercom and R&D Committee
TECHNOLOGY ECOSYSTEM APPROACH, ROLE &, REQUIREMENTS RSA FAR 25 Certification Readiness Lufthansa Consulting Group market feasibility NASA study & 140 local operators interviews
City of Ekurhuleni 10 point economic (master) plan Socio-economic impact study & ESD University and centres of excellence Human Capital Development progress
DENEL GROUP 23 5. Funding & Capitalisation
DENEL GROUP 24 SARA Way Forward: Partnerships for Funding & Development
Program Maturity and Progress Secure Formal endorsement from SA government’s as a National Flagship Program.
Total development funding will be R5bn – R6bn over 7 years. To validate and mitigate risk, an initial tranche of circa 3% of the development funding is required for tollgate 1: Concept Design and tollgate 2: Preliminary Design.
Based on a Joint Development model, secure partners for funding R&D, Development and Advanced Manufacturing post prototype manufacturing phase.
In parallel development stages Denel will develop a Business Plan, including a National Benefit Study, an Industry Collaboration Model, a Detailed Project Plan and Joint Venture and Funding Models The above will resolve risk (technical, cost, schedule), prove concept compatibility with performance requirements, unlock industrial funding, and enable Letters of Interest from prospective customers.
Continental and Regional Collaboration Opportunities: African Solutions for Africa Leverage smart partnerships of Government to Government and Business to Business collaboration for co development, industrialisation, certification and production within the BRICS regions
Leverage unique African economic growth to facilitate funding mechanism (African Union, African Development Bank)
Regional integration and marketing collaboration with the continental aviation stakeholder cluster – AASA, AFRAA and operators alike.
DENEL GROUP 25 Opportunities for Effective & Innovative Collaboration
Key Government Macro-Policies
• National Development Plan (NDP) • New Growth Path (NGP) Framework • Industrial Policy Action Plan (IPAP) • National Infrastructure Plan (NIP), • Presidential Infrastructure Coordinating Committee (PICC) • Private Sector Participation (PSP) Framework
SOC to SOC collaboration to drive Gov. developmental objectives Collaborative research, harnessing pool engineering skills
African Solutions for Africa Deepen Industrial base in favour of Advanced Manufacturing
OEM - Indigenous Complex systems (Rail, Aerospace, Defence) Strategic funding for industrial research and development
Support Implementation of the Integrated Transportation Plan Drive industrial research and technology Development
Strategic Sovereign capabilities to harness technology spill overs Unleash Niche Export Markets and Unique Partnerships
DENEL GROUP 26 Denel Proposal – Joint Development & Collaboration for PDR Phase
Denel proposal for scoping and funding model • Denel – OEM and Technical Authority • Transnet – R&D, Development and advanced manufacturing partner • Industrial Development Cooperation (IDC) – Industrialisation Funding partner • Government (DPE, DoT, DTi, and DST) and CSIR- R&D Funding partners Modes of Contribution (Project Phases 1 – 6 circa R5bn – 6bn) • Financial – Hard currency funding support • Technical Human Resources – Engineering labour resources, design, development and certification at various skill levels • Technical Infrastructure – Software and development tools and hardware, including testing facilities • Support Services Human resources – Finance, Legal, Business Development, Marketing, Human Resources, Integrated Logistics Support, System Engineering and Obsolescence • Manufacturing Infrastructure – Existing infrastructure Project Phase Tech. Tech Support Manuf. Period Financial (Running Concurrently and not in series) HR Infra. HR Infra. 1 Concept and Preliminary Design (PDR) 2 Years Yes Yes Yes Yes No 2 Detailed Design (CDR) 2 Years Yes Yes Yes Yes No 3 Prototype Manufacture and testing 3 – 5 Years Yes Yes Yes Yes Yes 4 Qualification and Certification (post CDR) 5 Years Yes Yes Yes Yes No 5 Log Support Development (post PDR) 5 – 6 Years Yes Yes Yes Yes No 6 Industrialisation 3 – 5 Years Yes Yes Yes Yes Yes 7 Serial Production Min 10 years Yes Yes Yes Yes Yes 8 After Sales Support Min 20 years Yes Yes Yes Yes Yes
DENEL GROUP 27 6. Engagement Process
DENEL GROUP 28 Contact Details
Mr Lesetja R T Mogoba
+27 (0) 11 927 2248
Denel Aeronautics
Business Development Function
Senior Marketer: Diversification and Innovation
DENEL GROUP 29 Questions
DENEL GROUP 30 Thank You
DENEL GROUP 31