Low-Fare & Regional Vol 36 No 3 June/July 2019 www.laranews.net

Lion Air Back in the game Beyond the passenger revenues Landing gears, wheels and brakes Fast and Furious Nothing but green skies ahead

Gas turbines are more efficient than ever. And we’re making sure they get even more so. But Rolls-Royce is also working on tomorrow, pioneering hybrid-electric and all-electric power. This quiet revolution will soon offer the opportunity for more sustainable growth and reduced carbon emissions. It is the fundamental change we need to lower our collective impact on the environment.

Pioneering the power that matters Find out more: rolls-royce.com/electrification 3 IN THIS ISSUE

COVER 14 Wheels of change: The quest is on to engineer Leader of the pack more robust, lighter and more efficient landing Lion Air and its sibling airlines have taken the Indonesian market by storm in recent years. Kimberley gear systems, wheels and brakes. Young follows the airline’s progress to the top and its response after the tragic events of last October. NEWS & FEATURES

4 COMMENT 37 SYSTEMS 52 REGIONAL FOCUS To infinity and beyond, via Paris… 797 is Strutting their stuff High potential behind a host of problems ’s big play. Bernie Baldwin reports on the challenges Despite past political unrest and financial of making landing gear easier to maintain. issues, Argentina and Brazil are taking 6 NEWS the necessary steps towards developing “Niki” Lauda – a remarkable legacy; 40 ANCILLARY REVENUES competitive carriers for a growing domestic Bombardier to sell sites; Ryanair delays Revenue Raisers market need. its 737 MAX deliveries; ’ chief The price of a ticket is now just a resigns; Canada highlights A220 fuel feed small part of the revenue income that 55 FIVE QUESTIONS TO… issues; Mitsubishi Aircraft Corporation passengers provide for an airline. Emma … ’s CEO John Slattery America heads back to court; Ethiopian Kelly investigates this growing extra On the current and future trends within Airlines helps launch Ghanaian national source of revenue. the regional aircraft market and how OEMs carrier; Sukhoi Superjet under pressure are upping their game to adapt to the after management changes to UAC board. challenging, yet exciting times ahead.

18 BRITTEN-NORMAN 57 AERO-TECH TRENDS Britten’s got talent ; Technik; and LARA’s Glenn Sands spoke with the team Magnetic MRO. of the UK’s only remaining commercial aircraft manufacturer. 45 BOOKING, PRICING AND DISTRIBUTION 58 NEW APPOINTMENTS & EVENTS DIARY Keeping up with demand Airbus; Airlines; Allegiant; 25 ERA CONFERENCE PRAGUE 2019 Never has the demand for competitive Avianca Holdings; CDB ; ExpressJet Connectivity and Confidence ticket pricing along with the capability to Airlines; Infare; JetBlue Airways; Porter Europe’s regional aviation sector gathered search and reserve quickly online been so Airlines; Pratt & Whitney. in the Czech capital for its annual widespread across the low-fare airlines. conference to discuss what procedures and plans are in place during these 49 REVENUE MANAGEMENT IN THE NEXT ISSUE turbulent times Revenue management goes dynamic l MRO Special and personal l Supply Chain, Parts and Logistics 30 PROPULSION SYSTEMS As airlines look to increase revenue beyond l Life Cycle Extension Electric dreams become reality just the ticket, Henry Canaday examines l Cabin Interiors The number of projects to deliver electric the wealth options and extras now being l Passenger Personalisation propulsion for is growing. offered to passengers. l Review

laranews.net June/July 2019 LARA 4 COMMENT

To infinity and beyond, via Paris…

The Airbus A320 has the world’s fastest growing sales of any aircraft and is widely used for short-haul regional routes. EDITORIAL The success of this aircraft has been viewed with envy by Boeing. tel: +44 1252 545993 The US company readily admits that although its 737s could perform Editor: Glenn Sands [email protected] much of the same work, a further stretch in the 737’s development is

Senior Reporter: Kimberley Young nearly impossible. The fuselage is already so long that it would scrape [email protected] the ground during take-off, and larger engines would clip the ground. -Pacific Correspondent: Emma Kelly The 737 was designed with stairways in mind and is too low to the [email protected] ground to be practical to take bigger loads. ENERGY OF tel: +61 8 9291 9089 To compete with Airbus, the dated design of the 737 has to be left behind – and this is what Contributors: Bernie Baldwin, Henry Canaday. Boeing is doing. The 737 will be replaced by the 797 – details will be revealed at the upcoming ADVERTISING SALES & MARKETING AN INNOVATOR. tel: +44 1252 545993 Paris Air Show.

Sales Manager: Toby Walton The Boeing 797, also dubbed the ‘New Mid-sized Aeroplane’, fills a hole in Boeing’s aircraft [email protected] line-up. Currently, there’s no aircraft in the 250-270 passenger range designed for short-haul HERITAGE OF Marketing and Communications Manager: Laura Andrews travel. The 797 would be bigger than the 737 MAX 10 but smaller than the long-haul 787-8. [email protected] Airlines want to add an aircraft suitable for high-capacity short-haul flights, such as routes PRODUCTION & DESIGN between large and geographically close cities like and New York. With its twin aisles, A LEGEND. tel: +44 1252 545993 the 797 will be able to board and disembark passengers far more quickly than the single-aisle Production and Design Editor: Steve Lodewyke aircraft like the 737 and A320. [email protected] A REVOLUTIONARY TOTAL TRAINING SOLUTION, Graphic Designer: Paul Firth As a new design and incorporating the latest technological innovations from the 777x and [email protected] the Dreamliner, the 797 will include composite structures to make it lighter and have a host of BACKED BY THE BEST IN AVIATION. CIRCULATION improved passenger comforts. Subscription Enquiries: TRU Simulation + Training is part of the [email protected] Rolls Royce, who’ll be supplying the engines for the new aircraft, predict that 4,000 to 5,000 tel: +44 1252 545993 fax: +44 1252 408674 will be ordered during the next 20 years. family of brands, in company with Bell, , MANAGEMENT For Boeing, despite its current high-profile problems, it’s looking as though the future will be Beechcraft and Lycoming. Leveraging its [email protected] far more positive – and largely made of composites. Managing Director: Mark Howells connection to aviation leaders, TRU brings you Director: Becky Howells LARA is published six times per year – in February/March, April/May, Glenn Sands – Editor turnkey devices, courseware and ongoing support. June/July, August/September, October/November and December/ January – by HMG Ltd. Distribution of LARA is carefully Discover cutting-edge training powered by decades controlled for industry-related individuals. Non-qualifiers can subscribe annually for £100. of experience. Articles and information contained in this publication are the copyright of HMG Aerospace Ltd and may not be reproduced in any form without the written permission of the publishers.

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Bombardier to sell Belfast and Casablanca sites Bombardier announced in May that it will sell consolidation will simplify and better focus our Global 7500, the Canadian aircraft its aerostructures businesses in Belfast, UK, organisation on our leading brands – Global manufacturer’s top-of-the-range , and Casablanca, Morocco, as part of Challenger, and the CRJ. It will allow us from US-based in January. consolidating its aerospace enterprise into a to better support our customers and generate The Global 7500 wing operations in Texas ‘single and fully integrated’ unit located at value for shareholders.” along with the facilities in Montreal, Canada, sites in Canada, Mexico and the US. A newly This is seen as part of a shakeup of and Santiago de Querétaro, Mexico, will created Bombardier Aviation division will Bombardier’s aviation business division. The provide Bombardier “with all the skills, incorporate both business aircraft and CRJ company has already sold its controlling stake technologies and capabilities to design, regional jets. in the C-Series narrowbody to Airbus in produce and service the current and next “It is the right next step in our July 2018. This leaves the CRJ as generation of aircraft,” said Bellemare. transformation,” stated Alain Bellemare, the only remaining commercial aircraft Bombardier has stated it is “committed to Bombardier group president and CEO. “The programme for Bombardier Aerospace. It has finding the right buyer – one that will operate also sold its business aircraft training unit to responsibly and help us achieve our full CAE for US$645 million last year. Conversely, growth potential.” Both the Northern Ireland Bombardier acquired Red Oaks, the Texas- and Morocco sites had seen a significant based wing manufacturing operation for its increase in work from global customers in recent years. These projects have included manufacturers such as Airbus, General Electric, International Aero Engines, Irkut, Pratt & Whitney and Rolls-Royce.

Andreas Nikolaus “Niki” Lauda – a remarkable legacy

Niki Lauda, three times Formula One world champion and founder of several airlines, has died at the age of 70, following a period of ill health. Lauda, who underwent a lung transplant in August, “passed away peacefully” on Monday 20 May, his family said. After entering Formula One in 1971, he became world champion for Ferrari in 1975 and 1977 and for McLaren in 1984; he retired the following year. In 1979, the racing star and commercial pilot founded Lauda Air, as a charter and leisure carrier. Within a few years, in 1985, Lauda Air began scheduled operations with two BAC 1-11s. The carrier later added , 767-300ER, 777- 200ER, CRJ-100 and A320 aircraft to its fleet. Lauda was known to captain some of these flights himself. He left his first airline in 2000, and three years later Lauda Air became part of the Austrian Airlines Group. In 2003, Lauda acquired Aero Lloyd Austria and with it created Niki Luftfahrt, later branded ‘NIKI’. The airline operated to and from airports in Austria for several years before being acquired by Air Berlin in November 2011. Five years later, Lauda took over Amira Air and turned it into a business-charter airline, Laudamotion Executive, which is still flying routes today with its business jets. Niki (Andreas Nikolaus) Lauda, Following the collapse of Air Berlin, Lauda continued to carry out operations independently while negotiating with racing driver and aviation the Lufthansa Group, until NIKI operations ceased in December 2017. entrepreneur, born 22 February Placing a bid for what now remained of the Austrian leisure airline, Lauda was awarded the ownership of the 1949; died 20 May 2019. carrier’s assets, which included aircraft, employees and landing slots leased from the Lufthansa Group. The new Austria-based low-cost leisure airline was established under the name Laudamotion. The new carrier started operations on 25 March 2018, with aircraft based at several airports in Austria, Germany and Switzerland. On 20 March 2018, even before launching flight operations, Irish low-cost carrier Ryanair announced that it was to take over 24.9% of the airline, and by late December it had taken full control of Niki Lauda’s last airline.

LARA June/July 2019 @news_LARA 7 NEWS Ryanair delays its 737 MAX deliveries summer but will not arrive until late November. A further 42 examples will also be delayed until mid-2020. Pre-delivery payments have been “frozen”, the airline has revealed, and it “expects” Boeing to cover lost profits. Ryanair is currently engaged in talks with the manufacturer. The worldwide grounding of the Boeing it had “every confidence” in the aircraft, The airline says that the revised delivery 737 MAX series has resulted in Ryanair which has suffered two recent air crashes. schedule also depends on the European delaying the delivery of its first five aircraft Ryanair has ordered up to 210 737 MAXs, Union Aviation Safety Agency’s approval. until late 2019 to early 2020. which will be delivered in the 197-seat The airline stated the delay in deliveries At the same time that Ryanair made this high-density configuration. The first five means that it will “not see any meaningful announcement, the airline also stated that aircraft were due to be delivered this cost benefit” until its 2021 fiscal year. Jet Airways’ chief Vinay Dube resigns

The chief executive of Jet Airways, Vinay Dube, has resigned from executive and chief financial officer, Amit Agarwal, also citing this the troubled Indian airline. In a statement to the Bombay Stock was for personal reasons. Exchange, the Indian carrier said Dube is stepping down “with The airline ceased operations on 17 April, after it was unable to immediate effect due to personal reasons.” secure emergency funding. Dube became CEO of Jet Airways in 2017, having previously served Etihad Airways has confirmed its interest to invest in the troubled as vice-president for Asia-Pacific at . airline but would require other suitable investors to assist in the Jet Airways also disclosed the resignation of its deputy chief recapitalisation.

Canada highlights fuel feed issues Transport Canada issued a directive on 13 situation, this could stop the flow of fuel The regulator stated: “In one incident, the May over the airworthiness of the new A220 completely. wear damage ultimately led to a hole in aircraft. Previously known as the Bombardier In response, Transport Canada have issued main engine feed tube located in the C-Series, it appears the aircraft may have a an airworthiness directive instructing all collector tank, resulting in fuel imbalance chafing issue within its fuel feed system. operators and owners of A220s to check their during flight. It is possible that such wear Operators have been asked to inspect their aircraft for the issue. Presently, only could cut fuel flow to engines.” A220 fuel feed tubes. Transport Canada has issued the directive, The directive issued covers all A220-100s The issue was identified in a recent but it is likely other regulators will follow suit. and -300s within the series. Operators have service bulletin, where it was found that the They said that wear damage had occurred been asked to perform tubes which feed fuel to the engines could on “multiple aircraft” in an area where a checks every become “chafed” by a clamp. In a serious bonding clamp connects the fuel feed tubes. 1,800 hours.

laranews.net June/July 2019 LARA C40799.021_CFM_BILLION_LARA_Jun19_273x205_DPS_v2.indd 2 04/06/2019 10:44 C40799.021_CFM_BILLION_LARA_Jun19_273x205_DPS_v2.indd 2 04/06/2019 10:44 10 NEWS

Mitsubishi Aircraft Corporation America heads back to court with its MRJ

Mitsubishi Aircraft Corporation America (MACA) has been taken back to federal court by Bombardier which alleges that trade secrets “As a result of the actions of defendants… Bombardier claims former employees stole related to its C-Series certification and Global Bombardier’s certification efforts for these trade secrets when leaving the company to take 7000 systems were stolen by former employees. aircraft were delayed by several months,” jobs working on the MRJ, in the process move with The Montreal-based manufacturer has stated alleges the suit. violating federal and Washington State trade that the Mitsubishi Regional Jet programme Around 92 former Bombardier staff are secret laws. In April, the case was tossed out of benefited from those secrets. working on the MRJ programme, Bombardier court but the judge left in place counts against “Bombardier submitted an amended claims in the suit. Mitsubishi Aircraft and gave Bombardier 15 days complaint which clarifies the relationship Mitsubishi Aircraft Corporation America has to refile, which Bombardier did in late April. between the defendants and provides stated: “That Bombardier’s allegations are The refiled suit argues MACA knew about the additional information on the harm that without merit. Mitsubishi Aircraft is confident trade secrets and that Mitsubishi Aircraft used the times Bombardier suffered as a result of [Mitsubishi that it will ultimately prevail in defending itself its corporate structure to hide affiliate MACA * Aircraft’s] unlawful actions,” says Bombardier. from Bombardier’s unwarranted allegations, from liability. The companies are essentially 40% less fuel and 40% less CO2 “Bombardier will continue to enforce its and that Bombardier’s actions will not one and the same, Bombardier claims. rights and ensure that all wrongdoers are held adversely impact the development and entry The former Bombardier employees allegedly accountable,” it added further. into service of the MRJ or the success of the stole C-Series certification reports related to The refiled suit says the loss of employees to MRJ programme.” airspeed indicating and static pressure systems, atr-intolife.com the MRJ programme delayed certification of both The case dates back to October 2018 when air temperature indicators and flight-testing the Global 7000, which Bombardier has since Bombardier sued MACA, its Japan parent data, Bombardier says. renamed the 7500, and the C-Series, which Mitsubishi Aircraft, a -based flight-testing Bombardier also alleges employees stole became the A220 after Bombardier sold majority company AeroTEC and several former Global 7000 and 8000 secrets related to skew programme ownership to Airbus in 2018. Bombardier employees. detection systems. Great Dane Airlines unveils E195 connections with the UK’s Stobart Air, the company recently acquired, along with Flybe, by Connect Airways. The new airline is planning to serve three destinations – Edinburgh, Nice and Dublin from its Aalborg base in northern Denmark. According to Denmark’s corporate registry, the carrier has undergone a recent major change of ownership. It indicates that the airline has been majority-owned since March by Great Dane Airlines, a regional start-up carrier, The aircraft, EI-GGC, a 2008 airframe was investor SEBC Holding, which also has diverse has unveiled its first aircraft – an Embraer 195 – previously flown by Flybe. It is owned by the interests in hotel operations, business software, newly painted in the operator’s colours. Cayman Islands-based lessor Propius which has and a motor-racing circuit. * per trip compared to regional jets © Gettyimages LARA June/July 2019 @news_LARA

205x273-LowFareRegAirlinesMove.indd 1 21/05/2019 10:31 205x273-LowFareRegAirlinesMove.indd 1

© Gettyimages * per trip compared to regional jets toregional tripcompared * per move with move with the timesthe 40% less fuel and 40%lessCO40% lessfueland atr-intolife.com 2 * 21/05/2019 10:31 Our Beyond Pool ensures that customers avoid large-scale initial investments whilst maintaining guaranteed, reliable access to high-quality stock. This gives our customers reassurance that no matter the situation, they will have a dependable partner, which allows them to focus on their other core business activities, rather than time-consuming rotable sourcing and logistics. Beyond Pool guarantees cost-certain component support solutions at the most competitive price-point available on the market.

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Ethiopian Airlines helps launch Ghanaian national carrier

Africa’s largest airline, Addis Ababa-based will begin by focusing on domestic routes. Recently, there has been significant new is entering into a partnership With more than 30 million residents, Ghana is infrastructure at Ghana’s airports. This has with Ghana’s government to launch a new Africa’s tenth biggest country. It has a stable included a new terminal at Accra’s Kotoka Accra-based airline. The Star Alliance member democratic government, a healthy economy International Airport, a new terminal at is due to send several Dash 8-400s to Accra and abundant resources, making the nation one Kumasi, and expansion and development at later in 2019. The airline is yet unnamed but of most profitable within the African continent. Tamale, Wa and Ho airports.

Sukhoi Superjet under pressure after management changes to UAC board The Sukhoi Superjet programme is under consider the MC-21 the top priority for Speaking at a conference in Moscow, Irkut’s greater scrutiny following a reshuffle of the investment, leaving other programmes, most head of marketing, Kirill Budayev, explained board at the United Aircraft Corporation in late critically the Superjet with a limited budget. UAC’s approach to the Superjet. “Our current April, and appointment on 13 May of Rostec’s More than 180 Superjets have been built by strategy is more oriented on perfecting the Anatoly Serdyukov as the board’s chairman. SCAC, but over half are currently in storage. Of existing aircraft design and building an Although not directly connected to the recent the aircraft that are in regular service, 75% effective after-sales support system. The crash of the Aeroflot SSJ-100 Superjet at operate in Russia, and of these, 66% fly with immediate goal is to improve the current Moscow’s Sheremetyevo Airport on 5 May, carriers on operational lease terms and 18% production version by introducing winglets which killed 41 passengers and crew, analysts on financial leases. Operators themselves own and putting more passenger seats in.” view the appointment as a sign that the the remaining 16%. In Budayev’s opinion the MC-21 will Our Beyond Pool ensures that customers avoid large-scale initial investments whilst maintaining guaranteed, reliable Superjet programme needs help in order to From early 2018 through to this year, several represent the core of UAC’s civil product range access to high-quality stock. This gives our customers reassurance that no matter the situation, they will have a get it back on track. service bulletins addressed many of the followed by the SSJ-100 in the intended role of dependable partner, which allows them to focus on their other core business activities, rather than time-consuming In May, Ravil Khakimov became the aircraft’s issues which have been discovered “a smaller brother” and “a second flagship”. rotable sourcing and logistics. Beyond Pool guarantees cost-certain component support solutions at the most president of both Irkut and Sukhoi Civil Aircraft since the airliner entered regular service in Engineers within UAC will be focusing efforts (SCAC) and has taken on the task of creating a 2008. UAC claims that the commercially into achieving more commonality between the competitive price-point available on the market. single entity within the UAC corporate operated SSJ-100s fly only 200 to 220 hours MC-21 and Superjet over the next year, structure to include the development, product per month, whereas other lead commercial although Budayev stated: “There is no decision For further information visit www.aerfin.com sales, and after-sales support of civil aircraft. types complete up to 300 to 350 hours per at the top corporate level yet to what degree The changes took place as a result of president month. The differences are due to ongoing we should pursue that commonality. We are Putin’s transfer of a 92% stake in UAC to maintenance issues with the Superjets that simply looking for solutions on a better use of Engine | Airframe | Programs | Lease | Trade | Manage Rostec in October 2018. Rostec leadership and need to be constantly addressed, so keeping what we have, and then develop plans on how its new management team within UAC the jets on the ground. to move forward.”

Call us on +44 (0) 2920 109 890 or email [email protected] | [email protected] laranews.net June/July 2019 LARA Family portraits: Since launching in 2000, the Lion Air Group has expanded to five carriers, including Lion Air, , Thai Lion, and . Leader of the pack Lion Air and its pride of sibling airlines have taken the Indonesian market by storm, and with a landmark order for wireless in-flight entertainment with AirFi, the low-fare carrier is looking to keep its local rivals at bay. Kimberley Young follows the airline’s progress to the top and its response after the tragic events of last October.

riginally conceived in the final The Lion Air Group has also grown to five largest Travel and Tourism economy in months of the 20th century, and first airlines; low-cost carriers Lion Air, Thai Lion , after and the Otaking to the skies in 2000, Lion Air and Wings Air, and full-service airlines; Batik Philippines. has become the largest privately run airline Air and Malindo Air. Passenger numbers are also on the rise, in , the world’s largest island Travel and tourism is rocketing skyward in with IATA suggesting that in the growing nation, criss-crossing an extensive network Indonesia, growing by an impressive 7.8% in Asia-Pacific market, “Indonesia is forecast to of domestic routes and flying international 2018 according to the World Travel and be a standout performer – climbing from the travellers to , , China and Tourism Council (WTTC) – double the global world’s 10th largest aviation market in 2017 the religious sites of Saudi Arabia. average of 3.9% – and making it the third to the 4th largest by 2030.”

LARA June/July 2019 @news_LARA 15 LION AIR

“Lion Air is crucial to the continued development of what has become one of the fastest growing country markets in the world.”

“In Southeast Asia there is a huge demand in the airline industry in terms of aircraft acquisition, aircraft purchases and traffic is bursting through the roof,” comments aviation analyst Shukor Yusof from Endau Analytics. He adds that in Vietnam and Indonesia, a large population of under-35s are driving growth, particularly for discount travel, resulting in the surge of budget carriers. “As for Indonesia specifically, it is the approximately 38 million, ahead of rival due to safety concerns. Since then, the largest aviation market in Southeast Asia, I at 14.0% and Garuda’s country had been taking steps to improve think, by virtue of its population, about 300 low-cost subsidiary Indonesia aviation safety standards and the million, and is driven by low-cost carriers,” at 13.1%. International Civil Aviation Organisation he explains, “They’ve got an immense However, Lion Air isn’t so strong in the (ICAO) conducted an audit in 2017, under potential in terms of domestic expansion.” international market at a percentage the Universal Safety Oversight Audit It is this domestic market that Lion Air has capacity share of 16.9%, falling behind Program (USOAP). Among the Asia Pacific particularly excelled in, growing to become Garuda Indonesia which dominates with countries, Indonesia was moved up to 55th Indonesia’s largest domestic airline. percentage capacity share of 36.6% and in the ranking up from 151, out of 191 “As the single largest airline in the Indonesia AirAsia with 33.4%. Taking into participating countries. market, providing nearly 41 million seats a account the other carriers in the Lion Air Airlines in Indonesia were cleared to fly to year, Lion Air is crucial to the continued Group such as Batik Air does boost the the US in 2016, and in the same year three development of what has become one of airline’s position in the international market, airlines (Lion Air, Citilink and Batik Air) were the fastest growing country markets in the but doesn’t quite match that of its big cleared from the EU Air Safety List. The world,” observes John Grant, senior competitors. general ban on was also analyst, OAG. “In such an emergent market, lifted in 2018. In summer 2018, as a result of across such a large country, the INFRASTRUCTURE CHALLENGES Indonesia’s compliance with ICAO’s USOAP, development and growth of domestic air Competition between the airlines in Lion Air, Batik Air and Garuda Indonesia services is crucial and the airline provides a Indonesia is tough, with Garuda and Lion Air were all upgraded to the top safety tier – strategic role in that activity.” battling to take the top spots, but while the seven stars – by the global rating agency According to figures from OAG, in battle rages, outside of Indonesia the AirlineRatings.com. Indonesia, Lion Air is particularly strong reception of Lion Air has been mixed. “Indonesia are trying to improve, but in the domestic market, topping the charts In 2007, all Indonesian carriers were there are also huge challenges,” analyst for capacity share in domestic services, placed on the EU Air Safety List, restricting Yusof says. “They have made a lot of with 25.6% for 2019 and capacity of them from operating in the European Union, improvements and upgrades but still ❱❱❱

laranews.net June/July 2019 LARA 16 LION AIR

“The new fleet of A320neo and Boeing fall short because of several factors such as as an order for 234 A320 Family aircraft in lack of resources and the skillset to keep up 737 MAX are critical 2013 (of which the airline has taken delivery with the growth of the industry. The of 41 according to CAPA), and a 230 aircraft infrastructure of the country is also a huge elements for our order with Boeing in 2011 (with purchase barrier which results in the safety concerns. rights for an additional 150). Last year Many of the airports within Indonesia have long-term growth Edward Sirait, president and chief executive not been upgraded for many years and are that will ensure Lion officer of Lion Air Group, said: “The new fleet operating beyond their capacity.” of A320neo and Boeing 737 MAX are critical These infrastructure concerns also make Air Group’s position elements for our long-term growth that will it harder for the aviation industry to keep up ensure Lion Air Group’s position as the with the rocketing demand for travel. The as the leading airline leading airline in the region.” analyst points out that more funds are needed, as well as pilots, air traffic in the region.” DIFFICULT DECISIONS AHEAD controllers and maintenance personnel, The airline’s history with Boeing in “This is all critical for a country that is a As well as growing in capacity, the group particular was one full of milestones. The leader in the industry in Southeast Asia.” has grown in fleet numbers, nearly tripling airline was the launch customer for the The Indonesian government has a plan to its fleet over the past six years from 112 Boeing 737-900ER in 2007, the first to put attract more tourists, and recently the aircraft in-service at the end of 2012 to 310 the 737 MAX 8 into service and the first to country’s planning minister was reported to at the end of 2018 according to the Centre order and take delivery of the MAX 9. The be drafting plans for building projects, for Aviation (CAPA) Fleet Database. (Though airline announced a commitment for 50 MAX including a proposal calling for upgrading in 2012, the group only included Lion Air and 10s in 2018, at a list price of $6.24bn and in existing airports. The country is also opening Wings Air). the largest incremental order at the time for new terminals to accommodate budget The 310 aircraft in-service at the end of the MAX 10 variant. In 2018 on the delivery carriers, such as at Soekarno-Hatta 2018 was split into 117 for Lion Air, 63 for of the first 737 MAX 9, Boeing said the Lion International Airport, outside , where Wings Air, 55 in Batik Air, 41 for Malindo Air Air Group had an additional 200 737 MAXs eight LCCs will operate from Terminal 2F – and 34 for according to CAPA, on order and was one of the world’s largest including Lion Air Group from 1 May 2019. who said Lion has the largest fleet in operators of the 737. Yusof comments, however, “I would Southeast Asia, but a “slowdown in the However, following the tragic loss of the imagine there will be more government growth rate over the past few years had led Lion Air flight JT610, operated by a 737 MAX 8 injection of funds to build these low-fare to a narrowing of the gap with AirAsia.” aircraft, there have been reports that Lion Air carrier terminals within the country but it is CAPA suggested in a report that the may not go ahead with its 737 MAX orders. not happening quickly enough – it is not slowdown may be a good thing for the The aircraft, made in 2018 and which had keeping pace with the growth of the market group as it appears to have too many been operating since August 2018, was on in the country.” narrowbody aircraft on order for its current route to Pangkkalpinang but crashed near These improvements in infrastructure needs (with outstanding orders for more Kerawang 13 minutes after taking off from could be a step in the right direction though, than 400 narrowbody jets). Jakarta’s Soekarno-Hatta International and may help towards improving efficiency Lion Air has had a reputation for breaking Airport in October 2018. There were 189 and operations in the industry. records with mammoth aircraft orders, such people on board.

LARA June/July 2019 @news_LARA 17 LION AIR

“We are excited to include the into our fleet as it promises to be According to news service Reuters, the airline had postponed all planned 737 more fuel efficient and with its longer range, MAX deliveries until a final report into last year’s crash. to expand our group’s fleet network.” “I don’t know if they’re going to completely disassociate the relationship passenger experience, and has signed with For a group such as Lion Air’s with a with Boeing, as these things are not straight AirFi to equip the entire group’s narrow- and diverse cast of aircraft in its fleet, a portable forward and it may not be as simple as wide-body aircraft, including all new aircraft solution offers great flexibility in bringing IFE terminating the contract because they want deliveries. In characteristic Lion Air style, the to passengers. The offering could also help it that aircraft for growth,” Endau analyst order marked another milestone, as Lion Air solidify its position with passengers in a Yusof says, “The best way forward for Lion Group became the largest AirFi Wireless IFE competitive market. Yusof comments, Air, as with all other operators of the 737 customer by fleet size. however, “Lion Air is just keeping up with MAX whose planes are on the ground, would AirFi will deploy the IFE solution across what the competition is offering. I do not be to renegotiate with Boeing and perhaps 215 aircraft in the first wave and the long- believe it will make more money for them or acquire other types of aircraft at more term contract also includes options to make it more competitive beyond the favourable pricing.” upgrade to AirFi LEO, lightweight Indonesian market.” connectivity. Lion Air seems to be the alpha in Indonesia FLEET RENEWAL AirFi will provide a fully managed service and has been pushing domestic growth in the The airline has been going through a fleet (hardware, software, content and revenue country. In an archipelago of approximately renewal process, recently retiring its last generation), and Satish Mahtani, MD AirFi 17,000 islands, it may be no wonder that an -400. The aircraft had been Indonesia, called it “truly a landmark airline offering affordable connections across operated since April 2009, and the airline said moment for AirFi” commenting that the the country is ahead of the pack. the aircraft had played a “very important announcement was a “tremendous But following the tragic events of last role” in the airline’s journey, but now “as a endorsement from Lion Air Group to put year, it stands to be seen how the airline will means of revitalising and rejuvenating the AirFi at the heart of the onboard digital come back from the accident and navigate fleet, Lion Air Group is ready to bring in the passenger experience at one of the world’s the troubled relationship with Boeing and -900neo aircraft which is planned biggest carriers.” the 737 MAX aircraft. n to arrive in May 2019.” Lion Air Group will acquire 10 A330neo The Lion Group ended 2018 with an in-service fleet of 310 aircraft aircraft, eight of which will be leased from 120 BOC Aviation (the airline will have the option to acquire four of the aircraft at delivery). The 10 aircraft are scheduled for 100 delivery to the group in 2019 and 2020. Speaking of the agreement with BOC Aviation, Lion Air Group’s CEO, Edward 80 Sirait, said: “We are excited to include the Airbus A330neo into our fleet as it promises 60 to be more fuel efficient and with its longer range, to expand our group’s fleet network.” The aircraft will have a single-class layout 40 seating 440 passengers and will be operated by Lion Air on selected domestic routes, as well as for charter and pilgrimage services 20 to Saudi Arabia. Some of the aircraft will be operated by the Thai Lion subsidiary for long-haul services from Thailand. 0 Lion Air Wings Air Batik Air Malindo Air Thai Lion Air In addition to the refleeting process, Lion Air appears to be investing further in the Source: CAPA – Centre for Aviation, Fleet Database.

laranews.net June/July 2019 LARA 18 BRITTEN-NORMAN

Britten’s got talent

Being stuck on a tropical island sounds idyllic but at some point you’re going to have to leave – even if it’s just to get supplies! And then there’s only one aircraft that can deliver – the Britten-Norman Islander. LARA’s Glenn Sands spoke with the team of the UK’s only remaining commercial aircraft manufacturer.

e’ve always been here For the past 10 years, Britten-Norman’s the aircraft manufacturer’s civilian Islander supporting the civil regional work has been dominated by fulfilling UOR taking a backseat. “Wairline market but, I guess, [Urgent Operational Requirement] requests Due to its available capacity, the relatively because we do it quietly as a small aircraft for its Islander and Defender fleet on behalf small company simply couldn’t cover all manufacturer, we perhaps don’t get the of the Ministry of Defence, to support bases at once. But a steady contract from the recognition we deserve,” said William operations in Afghanistan and Iraq. The MOD provided a long-term revenue stream to Hynett, chief executive of Britten-Norman. company readily admits that this resulted in secure a solid future for the company.

LARA June/July 2019 @news_LARA 19 BRITTEN-NORMAN

“We chose the Garmin G600 TXi glass-based flight deck, which is incredible... the G600 and Islander flight deck integrate beautifully.”

can do to improve any aspects, mainly hangers at Britten-Norman’s facility at through updating to keep it relevant in Solent Airport, (formally HMS Daedalus). today’s market.” The company has shifted gears with a Back in 1965, Islanders flew around the re-emphasis on the civilian market, which is African bush with just limited ADF stretching beyond simply selling Islanders to navigational aids and VHF radio. Today’s pilot customers. Britten-Norman has introduced expects far more in the cockpit to provide a a host of new innovations within the greater situational awareness. Even though company to support existing customers and many routes flown by the Islander are little attract new ones. However, the unique core capabilities of more than 15-minute VFR sector hops, Hynett explained: “We have introduced a the Islander couldn’t be ignored and now the occasionally some are 30-60 minutes on IFR direct factory support model, rather than company is refocusing its efforts back on to where a more modern flight deck is expected. outsourcing this kind of arrangement like the civil regional market with an upgraded Hynett explained the upgrading process: larger companies do. A big reason behind product and a range of buy or lease options. “Truthfully, if you can get a sophisticated this was feedback. It was felt as a company In looking forward, Britten-Norman is also flight deck in a Piper or Cessna why wouldn’t that we had become slightly too divorced evaluating its past with the Islander, as customers not expect it in an aircraft like from our customer base. We weren’t getting Hynett explained: “In terms of the airframe, ours? So we looked at several options over that positive feedback loop which would it is built like a proverbial brick outhouse. the years and we chose the Garmin G600 TXi allow us to create a design offering to It’s an enduring design but I personally can’t glass-based flight deck, which is incredible. respond to customers’ needs quicker. take credit for it. You are getting the majority of the “So we now have an office in Miami, one “It’s incredibly fit for purpose and the capabilities of the G1000 for less cost, but here in the UK and we have just opened truth about the design is that there is very while still retaining the cutting-edge another in Hong Kong. The aim is to be little that can be done today to change it, capability. The G600 and Islander flight deck in-region and supplying parts and also without doing a significant modification. So integrate beautifully together.” interacting with customers to better really our focus is about the application of It’s not only internal Islander upgrades understand their requirements, in terms the aircraft and how it’s used, and what we that are making their impact within the of future upgrades for the Islander. ❱❱❱

laranews.net June/July 2019 LARA 20 BRITTEN-NORMAN

“So far it has worked pretty well. A lot of development within the company is a way the modifications we create on the new- “So far it has worked to add variable thrust to improve control, build aircraft, we now automatically build as and reverse thrust. a retro-fit modification kit wherever pretty well. A lot of Hynett continued: “Another possibility is possible. So, if desired, they can be fitted the Lycoming iE2, where a piston engine can across the entire fleet. This can be done the modifications we be modernised into a FADEC [full authority either locally, or when the aircraft visits our create on the new- digital engine control] model. facility. Or we can send a team of engineers “But what we have been looking for what out to the location.” build aircraft, we seems like an eternity, is a diesel variant. It’s A good example of the company’s really a Jet A1-powered piston engine. There dedication to customer service was now automatically have been a few developed, but Britten- demonstrated in their tender winning Norman is not an OEM, so we are merely a application to upgrade the Islander fleet on build as a retro-fit recipient. There was the Thielert Centurion, the Falkland Islands with G600 capability. modification kit but it was only 150-180hp and our minimum This small mini airline is operated under the engine requirement size is 260hp. island’s government flag and provides locals wherever possible.” “The reason behind looking for this type of with a fast and easy airborne taxi service. powerplant is we know that AvGas is readily Britten-Norman’s engineers upgraded the development at Britten-Norman, explained available in central Europe and North entire fleet as each aircraft underwent its how the company is introducing lots of America. But as soon as you start getting into rolling routine maintenance schedule. minor incremental improvements: “We’re areas that I call ‘Islander country’, sourcing Hynett can personally testify to the looking at how to keep the current product AvGas can be pretty tough. durability of the Islander in the South relevant as well as meeting new customer “Of course, what’s exciting about a Atlantic region, having flown to the requirements. What we are focusing on are potential electric solution for the Islander is Falklands for a customer. options for changing the engine. that it’s the perfect aircraft for this. It’s exactly “We’re investigating the potential of the kind of duration and profile we fly where ‘CAN DOʼ AIRCRAFT electric, but what you have to remember is you’d want to have an electric-powered He recalled: “It was quite a journey and a that there are multiple options other than aircraft for short 15-minute hops. This is the long way to go in an Islander. But, it’s a that. Presently, we are looking at successors heart of Britten-Norman’s operations.” typical scenario for a lot of the Islander for the Lycoming O-540 and IO-540, which Hynett explained there are different deliveries. You tend to end up flying we’ve been using for years as our mainstay ways to approach the electric issue and the thousands and thousands of miles at 120kts. power plant, and we’re looking at future problem of aircraft weight is not as But I hadn’t been to the Falklands and knew options with these.” relevant to his company compared to other the aircraft could do it.” About 10 per cent of the Islander fleet is aircraft manufacturers. But questions Looking outside the specific aircraft turbine-powered using the Rolls-Royce have to be addressed about upgrades, Lara Harrison, head of business Model 250. One programme under reliability. Will the batteries go flat

LARA June/July 2019 @news_LARA 21 BRITTEN-NORMAN

SPECIFICATION PANEL Britten-Norman BN-2B Islander

DIMENSIONS Length: 10.97m while flying from A to B? It’s a point that is limited. Only because the barriers to entry in Height: 3.78m consistently raised by those looking into today’s environment when making any kind Wingspan: 14.93m the application of electric flight. of major change are hugely expensive. You Wing-area: 30.19m2 must have greater clarity of where the OUR KIND OF PROFILE market is going to sit for these changes. WEIGHTS AND LOADINGS Hynett explained the problem perfectly: “It’s not a case of wishing to be complacent Empty weight: 1,866kg “People like the idea of electric cars but if you or lazy. People like the Islander because of Max (AUW): 2,994kg are looking to get from London to Edinburgh, what it is, not what they imagine it might Useful load: 1,128kg that feels quite tricky. Having an electric car become. We are keen not to detract from the Wing loading: 99.1kg/m2 to get you around London feels like a no risk basic design and the original concept, Power-loading: 6.68kg/kW type of operation. We are the equivalent of because that’s what people originally Fuel capacity: 492 litres that in terms of our flight operations. So, if wanted. It’s easy to get carried away with you are doing inter-island hopping, that’s our changes and to steer yourself off track from PERFORMANCE kind of profile. The whole point of the what the original product was all about.” Velocity never to exceed: 183kts Islander is that it goes into somewhere, drops While not drastically modifying the Cruise: 142kts on the ground for 10 minutes, gets people on Islander’s design, the company is keen to Stall: 40kts and off and then heads off to the next sector. focus on reducing obsolete features within Climb rate: 1,130ft/min “But we do have a development in the the airframe’s structure and replacing old Service ceiling: 17,200ft works which we will be announcing later this materials with the latest generation materials. year. It won’t take too long to have a But these parts must be available for the ENGINES demonstrator aircraft ready for testing. There operators, many of whom are in remote Two Lycoming IO-540 fuel-injected air- are different ways to deal with charging locations, which is why the opening of cooled flat-sixes, producing 300hp batteries for electric power than how the car additional regional offices and distribution (224kW) each at 2,700rpm, turning industry has approached the problem.” centres has been a key strategy over the Hartzell Scimitar composite three-blade Despite the upgrade developments on the past year. Many of these distributor constant-speed fully feathering horizon, Hynett is aware of the Islander’s agreements have now been formalised, propellers. limitations and what the aircraft is best allowing for several established service suited for: “Core product wise, I think the network centres to be opened. This is probability of there being any kind of viewed as one of the most critical aspects of significant change to the Islander is fairly maintaining global Islander operations. ❱❱❱

laranews.net June/July 2019 LARA 22 BRITTEN-NORMAN

SETTLING IN AT SOLENT AIRPORT An indication of Britten-Norman’s commitment to the region was its recent announcement to expand its civil aircraft manufacturing and maintenance facilities at Solent Airport, on the UK’s south coast. A two-year lease for a pair of purpose-built hangars will provide a 13,000sq ft final assembly plant for the group’s manufacturing subsidiary. The hangars will also offer much needed specialist space for the company’s aerospace business services, BN Aviation. The latter will provide OEM aircraft refurbishment, MRO services, and specialist avionics integration.

Aside from the around 100 aircraft per year. But two years Britten-Norman’s civil applications for the logistical developments later it tailed off drastically and it has been a Islander are secure and the demand for new taking place within the low volume output ever since. We are fine aircraft has remained small but steady. company, Britten- Norman has a with this because as a company we recognise Hynett proffered: “I would say the Islander quiet confidence in its product which our position as a niche manufacturer.” cut its teeth in non-Islander country, that is to has endured for more than 30 years. Many of Despite the low-volume output, the say, sub Saharan Africa where it was a those sold during the aircraft’s Islander story is far from finished. Britten- mainstay product. It remains as absolutely heyday are still operating today and herein is Norman has ventured into other aviation relevant today as it did when it first came to a problem, as Hynett described: support-related activities, systems the market. “It’s a challenge and a success for us in integration and training. By adding multiple “You can think of an island as one or two that. In a way, you get to a saturation point layers to the business, the infrastructure for things. It’s either an object surrounded by in the market. How many Islanders can the the Islander aircraft is secure. water, or it’s a place surrounded by world take? Africa is a prime example. It’s inaccessibility. The western provinces of accepting EU funding and pumping this into FLEXIBLE APPROACH China are the latter, which is a potential the development of major airports and so Harrison explained one of the developments: market for the Islander,” said Hynett. it’s reducing the need for a product like ours “We’ve been looking at customer-spending Britten-Norman already has a distributor within the region. patterns and recognise that everyone now signed up in China but is keenly aware of the “But there are still many places in the finances things and so we have introduced cultural complexities of operating within the world that need an ultra-STOL type for heavy- leasing options along with capital purchase. Chinese aviation market. lift operations, which is what the Islander can It’s so we, as a company, can find the best “I think it’s unrealistic to expect a do. Our manufacturing output started finance arrangement for a potential manufacturing plant here in the UK to send around 1968 and from 1970-71 it shot up to customer who may be seeking either a new out fully finished aircraft for distribution. or second-hand aircraft, and offer a You have to have a supply chain that has a finance profile that will ideally fit Chinese element within it, either parts or TRAINING FOR AIR AND GROUND CREWS within their budget.” sales, in order to succeed,” said Hynett. Located at Bembridge, Isle of Wight, Britten-Norman The future of the It’s clear that the despite the Islander under its BN Resources branding offers a host of being more than 30 years old, the design is worldwide training support courses for pilots, avionics as relevant today as any competing designs. technicians and maintenance engineers. For the Islander, these As Britain’s only remaining civil aircraft have proved particularly popular. The company is aware that many users of manufacturer, the staff at Britten- their products are from overseas and have introduced courses in English for Aviation Norman feel a sense of duty and (ESP) for those pilots and ground crew who need to refresh their English language responsibility to keep the proud skills prior to attending one of BN’s courses. Islander tradition alive. n

LARA June/July 2019 @news_LARA

SJ_LARA_FN.indd 1 5/8/19 3:13 PM SJ_LARA_FN_2.indd 1 5/14/19 8:21 PM Tampere

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Destination Tampere Region – Full of culture, next to nature Serlachius Museums / Olli Huttunen Photo:

Lovely lakeland Ready for action Calming countryside Tampere is a vibrant lakeland Tampere offers globally interesting Half an hour’s drive from city. There are 200 beautiful settings for conferences and Tampere and you are in the lakes, where you can paddle, corporate events, as well as for beautiful and peaceful Finnish fish, cruise or swim. Nature is an large-scale sports and cultural countryside. Enjoy the tranquil essential part of the cityscape events. 4 million event-goers woods, glistening waters and in Tampere: the lakeside starts visit Tampere each year and that fresh forest berries of Hämeen- from the city centre, and so do number is set to rise in 2021, with kyrö, go on an active adventure the forests. Nature is close every- the completion of Finland’s larg- on Sastamala’s Devil’s Mountain, where you turn, and it effects the est multipurpose arena. or wonder at the unique residents – happy outdoor people Tampere is also applying to exhibitions in the award- live here! become the European Capital of winning Serlachius Museums Culture 2026. in Mänttä-Vilppula.

www.visittampere.fi @FlyTampere 25 ERA CONFERENCE PRAGUE 2019

Andrew Kelly, ERA president gave the opening address.

quickly how it can work together. Indecision in choosing a course of action is starting to Connectivity have an impact on various operating groups and pilot movements, engineers’ contracts and aircraft handling are feeling the effects. There’s a lack of clarity across Europe and Kelly believes that by being aware of the and Confidence impacts early, ERA is “proving its worth as a strong and credible brand and is regularly The city of Prague is known for its medieval astronomical clock with its bringing all sectors within the industry together to discuss solutions and a better spiralling movement and arcane inner workings. Therefore, as time ticks way forward.” slowly towards Brexit, it seemed a fitting place for Europe’s regional aviation He continued: “ERA is working towards sector to gather for its annual conference. Glenn Sands was there to hear advancements across the field, without what procedures and plans are in place during these turbulent times. fear or favour” and welcomes a review of EU261 – which Kelly regarded as long he European aircraft CEOs discussed future aircraft overdue, and “the worst piece of aviation Conference (ERA) annual assembly designs and the prospect of electric regulation ever written.” Tcame to Prague with 50 airlines regional airliners. Others explained how Leaving outside aviation events aside, the represented and more than 260 delegates. MRO facilities would have to cope with new first group of delegates faced the question: Of course, Brexit and the impact that a deal rules and regulations coming into place ‘What does the current European landscape of some kind will have on regional airlines across Europe. look like in terms of growth and profitability?’ in Europe were discussed during the two- Andrew Kelly, ERA president, opened the Brian Pearce, IATA’s chief economist, said day event in the Czech capital. conference with a statement that Europe as the past few years have been positive for But other subjects looked beyond this a team has the potential to become a global smaller airlines while larger, long-haul and well-trodden topic. Commercial leader in aviation – but it has to decide medium-haul carriers have endured a ❱❱❱

Montserrat Barriga, director-general of the ERA, answered some questions for LARA relating to the challenges facing Europe’s regional airlines.

What do you think are the biggest challenges facing airlines in Europe at present? There are many challenges facing European operators, with one of the biggest being pilot and skills shortages. This is not just a European crisis but a global one with the shortage of pilots putting the air travel industry’s recent growth at risk. At the core of the crisis are the training costs, type ratings and pay and conditions. For ERA airlines, there is an added difficulty of increasing competition with legacy and large low-cost carriers. Small to medium-size airlines have traditionally been a career entry point for pilots, but the new pilot pipeline is a fraction of its former size with integrated graduates these days joining low-cost employers almost directly, with only 250 flying hours completed.

laranews.net June/July 2019 LARA 26 ERA CONFERENCE PRAGUE 2019

Flor Diaz Pulido (right) stressed the need for better regional connectivity operating within Europe. Brian Pearce, chief economist at IATA (centre right), warned that profit margins are coming under increasing pressure across the industry. far gloomier time. But he admitted that across the industry, profit margin levels are coming under increasing pressure with She began with a thorough explanation of focusing on connectivity and announced European airlines suffering the most. This the new external aviation agreements that, by early-2021, new rules will be in unsettling negative trend was obvious coming into place that it’s hoped will place to assist the 440-plus airports in the between 2012-15. improve connectivity and capacity for EU. Revised guidelines are also being Pearce relayed the difficulties of running regional destinations within Europe. developed for the European Commission in an airline and in particular the “empty seat But any improvements must be balanced partnership with the airports operating aid, syndrome” which he described as a against the seven main challenge areas which has taken place in April in 2014, 2019 “perishable asset”, making costs difficult to which Pulido views as: safety, security, and is set for 2024. It’s a challenging time for recover once the aircraft had left its gate. sustainability, competitiveness, the head of aviation policy within the He described the European market as connectivity, citizens and capacity. European Commission but plans certainly “fragmented” and said operators need to She elaborated on these points by seem to moving ahead. “unbundle” their product for consumers. emphasising areas such as improving the The seat can be viewed as the base product capacity in the air and on the ground. Pulido FACING THE FUTURE and it’s up to the passenger to add ancillary hopes that by 2040, only 8% of people will Henk Ombelet is head of advisory products, which in turn will increase an not be able to fly as passengers in Europe. operations at Cirium Consultancy – a airline’s baseline profit. She pointed out that Europe’s domestic rebranding of components that include airlines are doing well in terms of Flightglobal and Flightstats. He provided an ALL EYES ON COST CONTROL connectivity, but the sustainability of the overview of future aviation trends in Europe, He summed up by saying that: “airlines will current legal framework has to be examined although he described the present situation have to work harder to break even, against a in terms of tackling any links that limit with Brexit and on-going negotiations as “a backdrop of pilot pay issues. The big growth, particularly airport charges for bit of a comedy”. He raised the issue of jet challenge for the next 12 months will be regional carriers. fuel prices and the fact that, although now controlling costs and recovering what they Pulido highlighted that: “such charges are lower than last year, they had not returned can in order to stay in business.” the most polarising and sensitive subject at to the 2015 price. A knock-on effect of this is Leaving aside an airline’s economics, the the moment.” Her organisation is trying to that exports and airfreight is on a downward ‘importance of regional connectivity and develop “clarity and a better directive on the trend, which may well impact the aviation competition in Europe’ was addressed by matter.” She added though that: “there’s industry later this year. Flor Diaz Pulido, head of aviation policy, room for improvement and the current Added to this is the global worry of directorate-general for mobility and directive related to this is under evaluation.” worsening trade disputes between China and transport, European Commission. Pulido concluded her presentation by the US. Ombelet predicts this will filter into

What changes would you like to see introduced within Europe to make things ‘easier’ for small to medium-sized operators? Compensation claims by passengers on delayed flights in the EU are escalating sharply, harming European airlines. The costs of complying with EU261 claims is increasing over time and it will no doubt eventually affect fares and the level of customer service provided. Under the current regulation, delays exceeding three hours can result in a pay-out of between €250 and €600 – the larger amount being paid for flights of more than 3,500 km. With price-per-seat on a single flight averaging between €80 and €100, the compensation amount is much higher than the price the passenger pays for their ticket. Also, it’s very time-consuming for airlines, especially small to medium-sized operators with limited resources. Doing so is another hidden cost. As well as this, we are starting to find that passengers are claiming for flights from previous years because they are being chased to do so by claims firms. The reimbursement cost is disproportionate to the prices charged and ERA is working hard with the regulatory authorities to discuss and ensure that future changes to the legislation consider all European operators.

LARA June/July 2019 @news_LARA 27 ERA CONFERENCE PRAGUE 2019

Europe’s future development and growth as a global aviation leader was debated (centre left). Highlight of the conference was the manufacturers’ debate which brought together industry heads from Bombardier, ATR and Embraer (left).

the panel included Stefano Bortoli, CEO of ATR, Colin Bole, senior vice-president the EU eventually, although he could not fleets to cope with increasing costs. The ATR commercial for Bombardier, and John predict what specific impact this would have. 72-600 is currently the largest aircraft used by Slattery, president and CEO for Embraer’s Looking at aircraft types, he made it the regional airliners in Europe and it is commercial aviation section. clear that the “age of the turboprops being expected that there will be fewer turboprops The debate opened with each speaker cheaper is no longer the case, with the and an increase in regional jets over the next providing a brief personal insight into how introduction of the Airbus neo models.” The few years. they got into aviation and what motivates technological capabilities now allow Ombelet ended with a cautionary them to continue pushing forward with new aircraft to fly further and to carry more message to all airline operators at the event developments for their companies. passengers, which has meant low-fare and warned: “the environment and ensuring The session then moved on to a operators are able to offer longer stage its protection will likely play a key factor in discussion on Boeing’s 80% acquisition of lengths. This is resulting in the “capacity aircraft development and sales within Embraer’s commercial sector. Although the mix” slowly changing between specific regions in Europe.” final details are subject to approval by the and low-fare carriers. The afternoon conference switched to a anti-trust laws, the partnership should be But, Ombelet explained that regional technical theme and was dubbed ‘The completed by the end of this year. The new airlines are not reacting quickly enough to Great Manufacturers’ Debate’. Chaired by arrangement will see Boeing provide input the changes and that some are reducing their ERA’s director-general, Montserrat Barriga, to Embraer’s facility in Brazil in terms of ❱❱❱

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Maint_E_182x125_LARA_20190603_02.inddlaranews.net 1 June/July23.05.19 2019 13:59 LARA 28 ERA CONFERENCE PRAGUE 2019 FLY MORE SABERLETS:

engine development, procurement and make a better workspace for the pilots. these will be the CRJ550, which has created SLASHING AIR manufacturing. John Slattery was keen to We’re introducing ClearVision, which will significant interest in North America. Bole stress the new opportunities for the reduce flight disruption, or having to land explained the innovations that will be partnership before he turned his attention to elsewhere due to poor weather. introduced into the aircraft: “We are aiming Embraer’s current star product, the E195-E2. to improve the cabin atmosphere area as a CUTTING COSTS “We have a good franchise footprint at GREAT EXPECTATIONS whole with visual effects and improvements present to present the E2 in and we’ll have “Passengers are now expecting in-flight with space, with the long-term goal of certification for the aircraft completed by entertainment and want similar facilities as introducing seamless travel for passengers the first half of this year,” he said. “The E195 on a train, which ATR are now looking to on regional aircraft. It’s ensuring economics has an increased range and size of more offer. It will be the price of the ticket that and reliability are key, by getting costs than 30% and the E175 is now only two will be the measuring stick.” down with CRJ operations,” he said. years away from its entry into service. These It’s clear that the future of the turboprop The good nature of the debate was new E2 series of aircraft will offer 20% lower is in safe hands with ATR and it will now be reflected in John Slattery’s comment as the costs per trip and have been tailored to a case of adding small innovations to the president and CEO of Embraer. “The CRJ regional carriers.” base product to ensure the company fuselage can actually fit inside the E-Jet’s Stefano Bortoli, CEO of ATR, described his continues to achieve success. with room to spare!” he said. “This new company’s successes to date and the outlook Adding his input to the manufacturers family of aircraft by Embraer has a lower for the next few years: “We continue to debate was Colin Bole from Bombardier, a fuel burn and is already proving a success develop the 600 series and retain the no-frills, company known for its jets and with the airlines by the amount of orders better performance that operators and turboprops. The company finds itself in a we have for the aircraft. Currently we have a passengers seem to want,” he explained. transition phase as the A220C shifts to 90% lead in sales compared to the CRJ. We “The aircraft is both reliable and Airbus, but Bombardier will retain a 35% are also seeing that the series is retaining its affordable. The turboprops continue to have shareholder’s stake. residual value when sold on, so it’s proving an advantage over single-jet operations, Bole mentioned the success of the Q400 a game changer.” and we’re now looking at introducing a turboprop but the company plans to shift Quick to address some of the points raised number of new innovations. One is wider its focus back to the RJ market, where it by Bombardier and Embraer, ATR’s CEO and lighter seats and the other is to regards itself as an industry leader. Among highlighted that: “innovation for the sake of it is not what ATR is about. Every change has to be justified in front of the airlines, in terms of operating costs and performance. ” Whichever way Brexit goes, what do you think will be the Our new saber-shaped winglets slash the air, The second day of the conference looked impact on UK-based/owned operators? improving performance and handling especially at Brexit and the impact that it may or may when operating from short runways with steep Without a clear plan in place for Brexit, it’s very difficult to say for not have on regional carriers. But it was the approaches. Saberlets also cut fuel consumption debate among the leading manufacturer sure how UK and EU operators will be affected; however, it is likely by at least 3%. to create many restrictions. A few of the ways this will impact CEOs that proved most interesting, with their companies seeking to produce similar significantly will be with traffic rights and leasing conditions. SSJ100: Stunning looks, World-beating performance. However, plans are already in place to cover an extension period successful products. And it became very clear following the UK’s departure from the EU whereby both the UK that in this pursuit, it is a mix of talent and and EU operators can continue to operate with the least amount technology that is keeping Europe’s regional of disruption possible. airlines soaring high – despite the political chaos taking place below them in Europe. n ssj100rightnow.com

LARA June/July 2019 @news_LARA

ADV_SSJ_2018_LARA_205x273_3mm.indd 1 12/09/18 17:20 FLY MORE SABERLETS: SLASHING AIR CUTTING COSTS

Our new saber-shaped winglets slash the air, improving performance and handling especially when operating from short runways with steep approaches. Saberlets also cut fuel consumption by at least 3%.

SSJ100: Stunning looks, World-beating performance.

ssj100rightnow.com

ADV_SSJ_2018_LARA_205x273_3mm.indd 1 12/09/18 17:20 30 PROPULSION SYSTEMS

Grail quest: Zunum’s hybrid- electric aircraft is preparing for an early 2020s debut.

Electric dreams become reality The number of projects to deliver electric propulsion for airliners is With the US hub-and-spoke system, for growing. Bernie Baldwin reports on progress. example, flying a distance between secondary cities of, say, 200 miles, might owering commercial aircraft with an motors, and power electronics to the point require an air journey via a hub some electric engine has been akin to a where we can extend to megawatt class distance away. While the flight time and Pholy grail in the aviation industry for systems with aircraft levels of weight and connection might still be a little less than the many years. While there have been small safety. As with electric cars, the operating three-to-four-hour drive that would be light aircraft which have managed it up to costs are fundamentally lower than needed, it would still be far longer than a now, the potential for an electric powerplant conventional counterparts,” he explains. direct flight. Putting a 50-seat regional jet on capable of carrying 10 passengers is nearing. that route probably would not be The first step on the way, a hybrid engine ZUNUM’S REGIONAL AIM economical, but with the reduced costs of a with a gas turbine engine to aid power and Regional aviation is the place where Zunum hybrid-electric aircraft it would most likely be battery charging in much the similar way as is starting, but for more than the obvious viable. And this is where Zunum’s target is. hybrid car engines, is likely to take flight reason of batteries being relatively heavy Moreover, with half of aviation emissions in later this year. Zunum Aero is progressing and thus range-limiting. The company single-aisle stages, sub 1,500 miles, Zunum is with an aircraft seating up to 12 passengers believes that the advantages of an electric convinced that this is an area which a hybrid which is scheduled to enter service in 2023. motor are best felt when aircraft are doing will be able to address with significantly According to chief technology officer and frequent take-offs and landings and lower reduced emissions during the early years of co-founder Matt Knapp, the company has altitude cruises and also that there is a operation and to an even greater extent the key technologies required to deliver a regional transportation gap across the beyond that. The hybrid is simply a path to great leap in moving away from traditional journey length of 150-500 miles, particularly zero emissions, Knapp observes. gas turbine aero engines. “The rapid in the United States as over the past 30 On why the Zunum offering will work, progress of the ground electric vehicle years, cost pressures have pushed regional Knapp points to what he describes as an industry has pushed down weight, and carriers into flying aircraft averaging around “intersection of physics and economics.” pushed up performance on batteries, 70 seats and operating 450 mile stages. Zunum found that as it developed the tools

LARA June/July 2019 @news_LARA 31 PROPULSION SYSTEMS

Eviation’s early bird: Nine-seater Alice’s adventures are due to start in 2022. Siemens and MagniX are providing the powerplant options. to analyse and design aircraft and apply which should be considerably better than The acquisition cost for the first Zunum cost models to them, the transportation they are now, enabling the same aircraft to aircraft is “well-aligned” with something of efficiency – payload x range over energy – spend more and more time running all similar size such as a Pilatus PC-12. In terms is almost flat with electric power transport. electric. Turning on the gas turbine to of direct operating costs, however, the “That’s not economics, that’s physics,” he extend the range would not be needed. The hybrid-electric is expected to deliver costs emphasises. In comparison, for aircraft is therefore the first step towards 60% lower than a PC-12, 70% lower than a conventional aircraft the bigger the larger aircraft – a “fantastic commercial Beech King Air, and 80% lower than a aeroplane, the more efficient it is. proposition,” according to Knapp. Cessna Citation CJ4 over the expected The aircraft announced by Zunum in Zunum’s target is a direct operating cost distances to be flown. Those DOCs include October 2017 is, as mentioned, a nine-12- of eight cents per seat-mile or less. That airframe maintenance, engine reserve seater. “It is a Part 23 aircraft which can be figure incorporates maintenance, the fuel overhaul/maintenance and the cost of all flown with the current supply chain for and the energy (including that used in the the energy. aerospace electric components, and Part hybrid operating mode). As noted, Zunum is on a timeline to certify 23/EASA CS23 have already been in 2023 and the first big milestone step in that substantially updated to enable certification process is to take the propulsion technologies of electric and hybrid-electric aircraft,” “The acquisition on which the company has so far been Knapp confirms. “While the technology is focusing – which cover motors and available right now to start production of a cost for the first converters, battery algorithms, control larger vehicle, both the regulatory basis and algorithms and other parts of the powertrain the supply chain are lacking. Building Zunum aircraft is – and to put that on a flying testbed. confidence and experience with the nine- For that role, the company has a Rockwell seater, Part 23 aircraft will pave the way to ‘well-aligned’ with Turbocommander which is quite like its own 50-60 seats by late in the 2020s.” something of similar aircraft in terms of size, speed and weight. Going deeper into the technology of the The port-side turboprop engine will be Zunum aircraft’s “plug-in series hybrid- size such as a taken off and replaced with Zunum’s motor electric” engine, the operational cycle and propeller. The plan is for the begins by fully charging up the batteries on Pilatus PC-12.” Turbocommander with this configuration to the ground. When this enters service in the fly towards the end of the third quarter this early 2020s, it will have 200 kWh of batteries. year or early in the fourth quarter. However, Zunum has allocated a fixed mass For that gas turbine element, the Over time, the company will gradually to the batteries and as battery technology company has a partnership with Safran swap in the components to the hybrid improves over the life of the airplane, the which will provide an engine from its powertrain, the off-the-shelf converters amount of energy available for that fixed rotocraft turbines division. The model to be will switch to Zunum’s own converters, the mass will increase. used is a very recent development. Knapp off-the-shelf batteries will become its Thus, compared with the model that will reports that Safran has great belief in the batteries and so on until by late 2020, go into series production in the mid 2020s, regional aircraft market and views it as an Zunum will be flying a fully representative Zunum aeroplanes entering service in the opportunity to build many more engines powertrain in test before it goes onto the mid 2040s and beyond will have batteries than it would for helicopters. all-new airframe. ❱❱❱

laranews.net June/July 2019 LARA 32 PROPULSION SYSTEMS

Wright stuff: The easyJet-backed Wright Electric hybrid-electric aeroplane is currently moving through its test phases prior to initial flight tests.

While the regional market in the US was a Eviation has already tested the Magni250 for for high-power evaluation. [Now] we’re happy key stimulant for the Zunum programme, more than 1,500 hours in a variety of operating to announce that we completed high-power Knapp is insistent that it is not simply a US conditions. The all-composite Alice – aimed at testing using the fuel engine,” he adds. “After opportunity, but a global one. The company’s the regional and business aircraft markets and some further testing on the stand, we will 20-year forecast estimates a potential market operating under FAR 23 regulations – is begin our aircraft retrofit and eventually worth in the region of $3 trillion. Of course, scheduled to be certified in 2021, with entry progress to initial flight tests.” as Knapp says, you must be there with a into service the following year. Wright Electric, which has easyJet as a product to make that happen and that’s A third nine-seater under development partner in the project, is aiming to have the what Zunum is trying to do. comes from Wright Electric, which has been engine airborne this year. working for more than a year on a hybrid- While all these programmes involving ELECTRICITY IN THE AIR electric aeroplane aimed at the private electric power come from relatively new An all-electric aircraft designed to take nine aviation market. “Last fall [autumn 2018] we names, another involves some of the most passengers is Alice, being developed by Israel’s announced we’d completed initial runs of the established global industrial brands, namely Eviation to fly up to 650 miles at a cruise speed powertrain on our test stand,” reports CEO Airbus, Siemens and Rolls-Royce. Again, the of 240 kt using three 260 kW engines. Eviation Jeffrey Engler in his latest web-blog. initial development work is in hybrid- has lined up two powerplant providers, the “For those runs we’d spun the propeller at electric technology. first being Siemens and more recently MagniX, low power using the electric motor, The three are working on a flight which will offer its Magni250. demonstrating balance and getting us ready demonstrator engine, E-Fan X, which is due

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LARA June/July 2019 @news_LARA 33 PROPULSION SYSTEMS

to fly in 2020. This demonstrator, according machines, power electronics and cables “We have worked very closely with to Rolls-Royce, will “explore the challenges were also required, with all of this supported Siemens eAircraft over the course of the last of high-power propulsion systems, such as by new thermal management, control and three years to research hybrid-electric thermal effects, electric thrust protection systems. technologies,” stated Martin Nuesseler, head management, altitude and dynamic effects “[At Rolls-Royce] we have always been of e-aircraft systems programme at Airbus. on electric systems and electromagnetic pioneers in aviation and we recognise the “The results we have achieved this far pave compatibility issues.” The programme will need to demonstrate that there is a the way towards the future of hybrid electric also investigate the requirements for potential future product for the technology flight. We are sure that Siemens eAircraft certification of electrically powered aircraft, and a viable roadmap to deliver it – hence will continue to be a close partner of Airbus just as Zunum is working with the FAA. the E-Fan X demonstrator.” in future.” “Electrification is a global trend across Meanwhile, the early uses of hybrid industrial technology and as a result engines or full-electric engines are being championing electrification is a key part of “The aerospace designed for aircraft to carry 9-12 Rolls-Royce’s strategy,” explains Riona industry needs passengers. But as Armesmith notes, the Armesmith, Rolls-Royce, chief project testbed for the E-Fan X is an RJ100, a engineer, hybrid electric propulsion and energy densities of 100+ seat aircraft on which three engines E-Fan X programme director. “The rapid will be the original Honeywell gas turbines development of battery technology was at least 1,000 Wh/kg with one pylon carrying a demonstrator clearly a big driver in the timing of this hybrid-electric propulsion unit. project. We recognised that the automotive and beyond for the The company sees Zunum and Wright industry was pushing the boundaries of the technology to really Electric as largely aircraft concepts and maximum achievable energy density, but we demonstrators (although Zunum already has expect that once the automotive industry be viable at a orders for its aircraft), while the E-Fan X is reaches around the 500 Wh/kg, the industry purely a propulsion system demonstrator will look to reduce cost rather than continue large scale.” and is being used to develop much larger to develop the technology. (MW class vs kW class) electrical components. “The aerospace industry needs energy Regarding the electric element to the “Rolls-Royce is developing propulsion densities of at least 1,000 Wh/kg and beyond propulsion system, the challenge of system solutions for a wide range of aircraft for the technology to really be viable at a managing to keep the weight of the fuel cells/ types and working closely with our large scale. So, the aerospace industry batteries down has been the responsibility of customers and partners to understand their needed to take the baton on the battery Airbus and Siemens. Although the two have future requirements for aircraft, irrespective development challenge,” Armesmith adds. not disclosed the fine details of their of the technologies required to deliver “However, the battery alone doesn’t make a collaboration, they have reported that their them,” Armesmith comments. hybrid-electric propulsion system. The rest work together has reached the stage where Which airline puts the first hybrid-electric of the system also requires development, for Siemens will step back from the project as and then all-electric airliner into service is not example high power density, aerospace “the agreed targets were achieved one year yet know. What is clear is that the distant safety and reliability standard megawatt faster than expected, so that an earlier horizon has come an awful lot closer. n scale, high voltage (for aerospace) electrical separation is now taking place,” reported a See overleaf for more on Rolls-Royce Siemens spokesperson. electric propulsion.

Pioneer spirit: Rolls-Royce’s 100+ seat E-Fan X demonstrator is taking up the challenge of hybrid-electric flight for larger commercial aircraft.

laranews.net June/July 2019 LARA 34 HYBRID-ELECTRIC & ALL-ELECTRIC FLIGHT

Future flight: Rolls-Royce style

LARA provides a brief overview of the inventions and “Electrification is one of the most exciting developments in insight Rolls-Royce believes will impact the regional aviation since the birth of the jumbo jet. We are determined to use our pedigree in aerospace to be at the forefront of developing carrier market over the next decade. innovative propulsion systems to meet the needs of the next Electrification is an inescapable trend as the world looks for ways chapter in aviation,” Dr Mekhiche announced recently. to generate cleaner and safer sustainable power. Rolls-Royce is actively engaged in a number of future projects For Dr Mike Mekhiche, deputy director of Rolls-Royce Electrical, it which underpins its overall vision to be one of pioneers in solving is a key part of his company’s strategy. practical solutions for electric flight. n

goal with a successful series of ground tests •Turbo-Electric mode: In this configuration, of a hybrid version of its M250 gas turbine. the battery system is redundant. The engine The tests were carried out across three operates as a pure turbo-generator system configurations: supplying electric power for thrust and any •Series Hybrid: In this configuration, the other power needs on the aircraft. engine operates as a turbo-generator that For Rolls-Royce, the next step is to further charges an onboard battery system; it does advance the hybrid propulsion system not contribute to thrust directly. All power towards integration on an aircraft and required for thrust and other onboard experimental flights in 2021. systems is supplied by the battery. The M250 hybrid power pack M250 •Parallel Hybrid: Thrust is supplied by a complements the AE 2100 2.5MW system With its stated ambition to provide hybrid- combination of the engine (mechanical being developed for larger aircraft, including electric propulsion systems for the next thrust) and the electrical system (electrical regional aviation, and is being tested with generation of aviation, Rolls-Royce has thrust), while the other power needs of the Airbus on the E-Fan X demonstrator made significant steps towards realising this aircraft are met by the battery. platform (pictured left, see page 33).

RECORD-BREAKING ALL-ELECTRIC AIRCRAFT FLYING TAXI CONCEPT Rolls-Royce is leading a highly specialised challenge to Electric vertical take-off and landing (EVTOL) vehicle is a build the world’s fastest all-electric aircraft. The ACCEL flying taxi concept which uses existing gas turbine technology zero-emissions plane is expected to make a run for the to generate electricity to power six electric propulsors record books with a target speed of more than 300 mph in specially designed to have a low noise profile. The taxi will 2020. The ACCEL project will help Rolls-Royce to introduce also have a battery for energy storage. In this series hybrid- the adoption of zero-carbon, electric-powered flight into EVTOL configuration it could carry a maximum of five the general aviation and short-range regional markets, as passengers at speeds up to 250 mph for approximately 500 well as assist the aerospace industry’s progression miles. This EVTOL project could take to the skies as soon as towards the ACARE 2050 targets. the early 2020s.

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WR19 Destination-LARA-205x273.indd 1 23/05/2019 14:25 37 LANDING GEAR SYSTEMS

As the E-Jet landing gear manufacturer, Liebherr listened to its customers and created an increase in the time between overhauls.

be used to avoid new parts replacing the used parts. Thus, the customer benefits from cost decreases. “The DOA delegation can also be used to offer minor product improvements to the customers; for instance, when the customer mainly operates within a very harsh environment and is therefore interested in special protection features to reduce maintenance costs. Furthermore, Liebherr helps to cope with towing incidents, for example, by analysing the point of impact and the damage pattern and releasing a Image: Embraer Image: special repair definition. This allows continued operation (if possible) instead of having to replace parts and possibly causing an aircraft-on-ground (AOG) situation,” Vlielander states. Strutting AAR Landing Gear Services is another company committed to pursuing the repair of customers’ parts, according to Daniel Menendez, the company’s vice-president of engineering and customer support. “We do their stuff that whenever viable, instead of simply Bernie Baldwin reports on the challenges of making landing gear easier to scrapping and replacing them. Although we maintain, making wheels and brakes more efficient, and making the whole typically are obligated to request system lighter with no loss in robustness. concessions from the OEMs, they do not often design the repairs. Our inspectors and ust about everyone who flies regularly Germany, an extension of the scheduled engineers work together to request has experienced a heavy touchdown, time between overhaul (TBO) according to thousands of concessions every year, and Jwith a thump that goes right up the authority regulations was implemented. most of these repairs are designed spine. If it jolts the body that much, think of This extension was driven by customer input in-house,” he reports. the forces being placed on the system and Liebherr, based on engineering “Some repairs are mundane, others more bearing the impact most, the landing gear. sampling procedures of landing gears and technically interesting and financially Even a smooth touchdown involves structural components after having seen impactful,” Menendez adds. “For example, considerable force on that equipment. So, real operational conditions,” he explains. we recently developed a repair for the 757- designing and maintaining it to withstand axle sleeve that involved precisely turning a those varying forces is vital to safety. On the EXTENDED BENEFITS piece of it off and welding on a repair maintenance side, costs can be reduced if “The sampling data was analysed and the bushing. We developed the special tooling high quality repairs can extend the life of the results discussed with the airframer and the that ensured the finished product was as part or component and delay the need for regulatory authorities. The TBO was increased good as new and allowed us to perform the an expensive new replacement. by two years, leading to remarkable cost same repair to many of these units. At Liebherr-Aerospace & Transportation, savings for the airlines considering the product Menendez’ colleague, German ‘Alex’ Lara, this practice plays a strong role in the lifecycle,” adds Vlielander. AAR director of Wheel and Brake Services company’s philosophy, as its chief services “Liebherr-Aerospace also uses [its points out that as far as his area is concerned, officer, Alex Vlielander, points out with a position] of Design Organization Authority the majority of required repairs are relevant example. “For the Embraer 190 (DOA) for minor repairs on landing gear addressed in the Component Maintenance landing gear, designed and manufactured systems in order to develop fast-track repair Manual (CMM). “That leaves little room for by Liebherr-Aerospace Lindenberg in solutions,” he continues. “Those repairs can new repairs. By performing and ❱❱❱

laranews.net June/July 2019 LARA 38 LANDING GEAR SYSTEMS

Inspection at AAR’s Wheels and Brakes Services.

adhering to the manufacturer’s repairs, the testament to the design combination of the life span of the wheel and brake can be seal technology and this HVOF coating,” extended considerably,” he notes. Babin confirms. Assessing how these repair developments For wheel technology too, the company benefit customers in terms of cost savings, invests considerably in R&D. “We do annual increased safety and better operational reviews and planning sessions for both flexibility, Menendez refers to the 757 product lines within the Landing Systems repairs. “Our customers loved it. At the time, [division]. We look at projects, evaluate and this part was not available in the market and the non-chromated primer and the new assess them and then ask ourselves if there one sleeve scrapping could be the cause of Zn-Ni coatings. And after two years, is something emerging that airlines are severe delays, absent an alternate solution. removing the parts showed the new looking for,” says Babin. “Then as we see When the part occasionally did appear in coatings gave an equal, if not better, higher TRLs, we reach a point where it’s time the market, the price was much higher than performance than the traditional coatings.” for industrialisation or introduction of some previously. We helped our customers avoid Another popular application has been of these innovations as retrofits or upgrades. all of that by developing and performing our tungsten carbide–cobalt coatings using a own repair,” he emphasises. high-velocity oxygen fuel (HVOF). “I refer to LANDING SOON Although a new brand, Collins Aerospace this as the next-gen technology for the “On the wheels and brakes side, we’ve been has vast experience in this field courtesy of working surfaces on landing gear looking at new aluminium alloys for wheel its ancestry. When it comes to landing gear components. So highly loaded pins, as well forgings to reduce weight and cost and systems, the company has developed as the piston surfaces and the slider surfaces enhance corrosion protection,” he adds. coatings to protect the components from and axles get tremendous performance,” “We’ve seen a lot of success with our new and through maintenance procedures. Babin continues. oxidation protection system, HTX, which has “We’ve focused on developing new demonstrated robust performance in some materials, new coatings for both the landing challenging conditions. Some of those gear products and the wheels and brakes “We have more than conditions – eco-friendly de-icers – are products, some of which include zinc–nickel detrimental to both the carbon and plating,” begins Michel Babin, the company’s 2,000 landing gear aluminium materials as well the steel parts director, field technical service, Landing legs in service since of landing gear,” Babin states. Systems. “That’s now being used on high The technologies involved in landing gear strength steel parts to replace traditional 2007 with zero systems are, of course, constantly cadmium and Ti–Cd plating formulations for developing. Taking an overarching view, the corrosion protection systems. in-service shock- companies assess what airlines can expect “We’ve applied this into a number of new from future developments. commercial and military product lines, as strut leakage.” AAR’s Lara believes airlines will begin to well as it serving as a drop-in replacement see electric brakes as an option in new for in-production programmes – seen a lot “With this HVOF coating, we’ve seen gears aircraft. “Electric brakes eliminate the use of of success,” he notes. “That ties in with coming in after nine or ten years of service hydraulic fluid, which removes the issues repairs down the line. with a surface finish that may have some associated with hydraulic brakes including “We’ve also introduced EcoSky, a staining, but overall from a function point- leakage and spills,” he notes. chromium-free pigment for primer,” Babin of-view is pristine. It doesn’t require any For Vlielander, the key elements will be in remarks. “We invented this with our United stripping or replacement, which reduces the design and what is used for that process. Technologies research centre. To assess its cycle time in the restoration/refurbishment “Regarding the design tools, the CAD 3D full Technology Readiness Level, we introduced and again reduces the cost,” he stresses. aircraft model, FEA [finite element analysis] a field evaluation with an airline customer In addition to those savings, the higher and Multi Body Simulation have advanced for a 24-month period. We flew parts on an reliability of the working surfaces involved to a big extent, with the result that the active commercial aircraft and monitored it adds value. “We have more than 2,000 landing gear integration in terms of every eight-12 weeks. landing gear legs in service since 2007 with attachment interface, space envelope and “We had a combination of the traditional zero in-service shock-strut [landing gear structural analyses can be managed without coatings with the chromated primers and shock absorber] leakage. That’s a true hardware mock-ups,” he explains.

LARA June/July 2019 @news_LARA According to AAR’s Daniel Menendez, while some repairs are mundane, others are more technically interesting and financially impactful.

“Airlines can expect to see that the aftermarket potential for landing gears will further develop and that the competitive environment for the OEM and customer services companies will further sharpen,” the Liebherr chief services officer predicts. Part of the excitement for the future at Collins Aerospace is the coming together of the Rockwell Collins capabilities with all of we integrate with the avionics side of the “The last piece I want to mention here is United Technologies’ knowhow. “The business,” says Babin. additive manufacturing (AM). Different heritage Rockwell Collins brings the Arinc “Some of the aircraft wheels structures sections in aviation have begun to use AM communications, the avionics, the data are highly optimised. Weight is very for secondary or back-up structures, even content and management to a level that we important, [as is] fatigue; we have to interior components. But similarly, to didn’t have before,” Babin elaborates. accommodate for that,” he highlights. composites, how do you certify the AM parts “Stepping back to landing systems, we “We use a lot of advanced tooling and FEA when we start getting into primary have a number of initiatives looking at [finite element analysis] for that and really structures? That continues to be a focus prognostics and health monitoring. A lot of find that balance of strength-to-weight for both on the wheel and brake products as that technology will develop and mature as the materials being used. well as for landing gear,” says Babin. n

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laranews.net June/July 2019 LARA 40 BEYOND THE BOARDING PASS: ANCILLARY REVENUES

Revenue Raisers

The price of a ticket is now just a small part of the revenue income that analysis. The champs include LCCs passengers provide for an airline. Following the lead of the low-fare carriers, VivaAeroBus, Volotea, Allegiant Air, Pegasus Airlines, Ryanair and Scoot. The percentage airlines now offer a host of upgrades and perks for those travelling, although all of revenue achieved by this group jumped to come at a price. Emma Kelly investigates this growing extra revenue provider. 33.9% from 30.9% in 2017, says the report. LCCs and the ancillary revenue champs ince 2014, global airline ancillary failure, which seems ever present in the are the “originators of ancillary revenue and revenues have more than doubled, airline business,” it says. have always effectively managed the Swith airlines of all shapes and sizes IdeaWorks has been tracking the growth combination of low fares and a la carte following the lead set by low-cost carriers. of airline ancillary revenues – defined as features”, says IdeaWorks. “Whereas Airlines have now set their sights on even revenue beyond the sale of tickets that is traditional airlines offer a handful of greater ancillary revenues and are generated by direct sales to passengers or optional extras, the true ancillary revenue increasingly getting better at targeting the indirectly as a part of the travel experience – evangelists manage a buffet of choices in right ancillaries at the right customers, as since 2010. For 2018, in conjunction with the online booking path, through mobile well as deploying innovative techniques and technology platform CarTrawler, IdeaWorks apps and solicitations sent after travel is technologies to reach and capture the estimated total airline ancillary revenue at booked,” it explains. spending of those customers. $92.9 billion – a 312% increase on the 2010 According to IdeaWorks, a typical ancillary Global management firm McKinsey puts figure of $22.6 billion and 10.7% of the revenue-savvy carrier will have around 60% global ancillary revenues at US$50-$55 industry’s global $871 billion revenue. In its of its ancillary revenue coming from billion per annum, not including revenues figures, IdeaWorks includes any activity that baggage fees; 12% from assigned seating; from frequent flyer programmes. McKinsey yields cashflow beyond the transportation 9% from onboard services, including food, points out that this figure exceeds the of customers from A to B, including frequent extra leg room and duty free; 15% from industry’s $31 billion 10-year average annual flyer programmes, commissions and a la other a la carte services, such as charges operating profit, noting: “Without them carte services. from priority check-in, onboard [ancillary revenues], the industry would not Ancillary Revenue Champs – those entertainment and connectivity; 3% from be profitable.” carriers that generate the highest activity as travel retail, such as car, hotel and Ancillary revenue consultancy IdeaWorks a percentage of operating revenue – are a insurance; and 1% from the sale of frequent is more descriptive when it comes to growing band and are achieving greater flyer points and miles. ancillary revenues. “Ancillary is an results than ever before as airlines become Baggage alone contributes $28.1 billion to inoculation against the virus of financial better retailers, according to IdeaWorks’ the ancillary revenue total, according to

LARA June/July 2019 @news_LARA 41

frequent flyer programmes, commission- based products or fare or product bundles – according to IdeaWorks. LCCs in that region generate nearly 25% of operating revenue and airlines in the region achieve 9.7% a la carte revenue as a percentage of operating revenue. Europe also happens to be home to some of the largest ancillary revenue champs in the world, such as easyJet, Eurowings, Norwegian and Ryanair. Europe-based global network carriers like Air France/KLM, Lufthansa and are now following these champs. The same is true in North America, where the big three of American Airlines, Delta and are following their LCC counterparts and boosting ancillary revenues by restricting or charging for access to seat assignments.

SELL, SELL, SELL While Asia-Pacific is home to a significant number of ancillary revenue-savvy LCCs, including AirAsia, Cebu Pacific, Indigo, Jetstar, Scoot, SpiceJet, Spring Airlines and Vietjet, global network carriers in this region have been slow to adopt ancillary revenue methods. “Ancillary is an inoculation against the virus Ancillary revenue champs and LCCs are simply better retailers than their full-service of financial failure, which seems ever counterparts, according to IdeaWorks. These carriers are innovating in what they present in the airline business.” sell and how they sell it, increasingly personalising the offering and digitalising the process. IdeaWorks, with stringent baggage fee the basic economy method as they work to AirAsia, for example, saw its ancillary policies being the “hallmarks of top overcome the challenges of a slowing global revenue climb 12% for the last quarter of revenue-performing LCCs”. Las Vegas-based economy and the ever-present threat of 2018 and 7% for the full financial year. discount airline Allegiant, for example, their low-cost airline brethren,” predicts Group ancillary revenue for the year was generates more than $16 per passenger IdeaWorks. RM2.06 billion, with the Malaysian from its baggage revenue policies, including The prevalence of LCCs in a region drives operation achieving a 5% growth to RM1.49 fees for large carry-on bags. IdeaWorks says the growth of the industry’s ancillary billion; the Philippines was up 26% to the surprising development over the last revenues, says IdeaWorks. Europe leads the RM297 million; and Indonesia’s ancillary two years is that some of the world’s leading way for a la carte activity – including revenues climbed 3% to RM273 million year network carriers – particularly in Europe and charges for onboard food and beverage, on year. AirAsia attributed the growth to North America – are also implementing bag baggage and excess baggage, assigned “dynamic pricing and ancillary fees. “Bit by bit, traditional airlines in Africa, seats, priority check-in, onboard personalisation resulting in better target Asia and Latin America are expected to test entertainment and connectivity, but not marketing”. ❱❱❱

laranews.net June/July 2019 LARA 42

Likewise, Ryanair has focused on digital initiatives, driven by its Ryanair Labs, to further drive ancillary revenue. The LCC now has three Ryanair Labs, in Dublin, Wroclaw and Madrid, employing 600 digital experts. Half year results, reported last October, saw ancillary revenues rise 27% to €1.3 billion, with Ryanair attributing this to Ryanair Labs’ initiatives. “Key drivers of this growth were improved conversion of priority boarding and reserved seating,” says Ryanair. IdeaWorks estimates that Ryanair’s annual revenue from assigned seating alone is €455 million or $4 per “Airlines that passenger. In addition, membership of MyRyanair increased to 50 million members, succeed in the while the Ryanair digital platform receives ancillary space more than one billion visits per annum. AMAZON-IAN AMBITIONS Baggage fees continue to account for maximise their Another Ryanair Labs initiative, Ryanair most of AirAsia’s ancillary revenues at 48% revenue by offering a Rooms is a major part of the LCC’s aim of and this revenue rose 7% for the year to becoming the “Amazon of travel”. It now RM987 million, thanks to the use of larger array of travel offers more than 10 million rooms from five personalisation methods, including tailoring suppliers and is a prime example of ancillary dynamic pricing to individual customers. products, including innovation. The airline successfully In-flight food and beverage sales climbed encourages its customers to book their 8% to RM143 million; seat selection was up hotels, car hire and accommodation via Ryanair Rooms by 18% to RM164 million; duty free revenues car transfer.” effectively returning its 10% commission in climbed 32% to RM37 million; while the Fly- the form of travel credits which customers Thru service, which allows passengers to can use to fly with the airline within the next transfer from one flight to another without machine learning and artificial intelligence, six months. having to collect and check-in baggage and with further development of its website and More can be expected from Ryanair in the go through immigration, achieved a 13% mobile apps expected to be a major near future. “A major upgrade of our digital increase in sales to RM127 million. contributor. “AirAsia.com has already platform is under way – website, app and As the number of AirAsia aircraft equipped generated more than RM16 billion in gross third-party ancillary product plug-in – which with its Rokki WiFi increases, so will merchandise revenue from our online flight will facilitate improved personalisation and revenues. “We have installed 65 aircraft with ticket sales in FY2018. This platform is in fact capacity for traffic growth to 200 million per Rokki WiFi. All our planes will be fully WiFi- one of the largest revenue-generating annum as we roll out relevant ancillary enabled by the end of 2019, which will bring platforms in Asia today. Hence, we are also products which fit to each individual in more ancillary revenue,” AirAsia Group increasing our efforts to sell additional customer’s profile and buying patterns,” the CEO Tony Fernandes said recently at the travel-related services such as hotels, tours, airline says. group’s financial results announcement. insurance and more to millions of our guests Earlier this year, the LCC announced Overall, AirAsia has boosted ancillary who fly with us,” says Fernandes. “We intend its latest batch of “customer care revenue per passenger from RM42 in 2013 to to transform AirAsia.com into a platform of improvements” which include a frequent RM49 in 2017. choice for all to fulfil any travel needs. We flyer programme, Ryanair Choice, which AirAsia intends to increase ancillary believe that this platform has enormous will cost members UK£199 annually in revenues this year through its digital potential and will generate a significant exchange for free seats, fast track and initiatives, including the use of data, increase in revenue,” he adds. priority boarding, while its digital offerings

LARA June/July 2019 @news_LARA 43 BEYOND THE BOARDING PASS: ANCILLARY REVENUES

Frontline staff are responsible for about “We have installed 65 aircraft with Rokki 30% of ancillary revenues and delivering or policing about 60%, according to McKinsey. WiFi. All our planes will be fully WiFi-enabled “Our research suggests that better collection and upselling by the frontline could raise by the end of 2019, which will bring in more ancillary sales by 20-35% – or an additional ancillary revenue.” $11 billion to $18 billion for the industry,” it says. Airlines need to foster understanding and have expanded with the sale of sports and hotels, car hire and car transfer. It’s commitment; provide appropriate tools and events tickets. important for airlines to focus their efforts support; align processes and structures; and Fellow European LCC easyJet reported on where customers are willing to spend, enhance talent and skill, McKinsey says. earlier this year that its ancillary revenue for presenting them with products relevant to Whichever way airlines go about the last quarter increased by 19.9% to £271 their booking through personalisation of increasing ancillary revenues, IdeaWorks million, attributing this to “better bag and content,” explains Aileen McCormack, chief believes rising ancillary revenues are good allocated seating sales”. Meanwhile, commercial officer of travel technology for both airlines and the consumer. It says: easyJet’s invitation-only Flight Club platform CarTrawler. “The connection between ancillary revenue encourages its members to remain loyal and and financial health for airlines is now clear spend more. PEOPLE INVEST IN PEOPLE and is a solid component of the industry’s With the bulk of LCC’s ancillary revenues While the use of new technologies, new financial profile. Consumers too are learning coming from baggage charges, not revenue sources and different forms of to appreciate the a la carte choice as surprisingly, airlines are becoming distribution are all boosting airlines’ revenue-savvy airlines have become better increasingly clever in their sales tactics. Last ancillary revenues, McKinsey points out that shopkeepers. Consumers will always reward September, Australian LCC Jetstar this approach can only take airlines so far companies that treat them honestly with announced that passengers could now and it’s important for frontline staff to be fairly priced products that provide what is purchase 3 kg of additional carry-on part of the equation. promised.” n baggage, increasing the total carry-on allowance from 7 kg to 10 kg, starting from A$13 on Starter Fares. What the airline failed to mention was that up until 2014, Jetstar passengers could get onboard with 10 kg of carry-on luggage free of charge, but reduced it to 7 kg in 2014. US discount airline Allegiant is one of the world’s most innovative and effective airlines when it comes to ancillary revenue initiatives, according to IdeaWorks. Many of these are not related to its core business of flying, including its Sunseeker Resort in Florida, which is projected to contribute in excess of $6 per passenger; family entertainment centres; and the Allegiant World Mastercard, which provides a free in-flight beer or wine for cardholders and is expected to generate annual earnings of $50 million by 2020. “Airlines that succeed in the ancillary space maximise their revenue by offering a larger array of travel products, including

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45 BEYOND THE BOARDING PASS: BOOKING, PRICING AND DISTRIBUTION

autonomy. In particular, dynamic pricing, which is the ability to create personalised Keeping up fare and travel package offers based on individual client information. The NDC, which operates on an XML-based data transmission standard, allows airlines to build their own APIs. They can change prices with demand independently adding value to their offers and adjusting prices to each customer. Never has the demand for competitive ticket pricing along with the capability Fashionable content offers, ancillaries, to search and reserve quickly online been so widespread across the low-fare and discounts: By using the electronic data airlines. Much has changed since LARA covered the constantly evolving tech’ interchange for administration, commerce topic in 2018. Are the processes now in place able to deliver? LARA’s Glenn and transport prior to the adoption of NDC Sands provides the latest overview airlines were unable to include ancillaries in their offers. t’s been seven years since the ancillary offers. IATA has made it clear, Product diversity: Traditional, early working International Air Transport Association stating that: “The primary driver for NDC is models only permitted airlines to display I(IATA) announced its New Distribution the revenue opportunity. NDC unlocks the prices and schedules. NDC makes it easy for Capability (NDC). Its aim was to provide a value through the travel agent channel by travellers to compare prices via OTAs. seamless capability to exchange data sets providing it with features and content that is Reduced reliance on legacy systems: NDC between airlines and online travel agencies difficult to access today.” acts as a separate search engine outside of (OTAs), global distribution systems and With the system now maturing across the the legacy passenger service system (PSS), travel management companies. The benefits industry what benefits has NDC introduced? which just shows which seats are available of this new approach would be passed onto Bespoke shopping and access to customer for a given flight. the passenger by allowing them to select a information: Currently, most of the The advantages of NDC are obvious, but host of ancillary options on top on their customer’s personal data is held by the OTAs within the industry there are still some basic ticket price. and Global Distribution Systems (GDSs). concerns over how to operate and manage For regional airlines and low-fare carriers, This means that the airlines only receive the the system in the future. Jörg Troester, head operating in a highly competitive market, it’s basic information about their clients. No of corporate strategy, industry and fast becoming a critical piece of software to personalised shopping experience was government affairs for Hahn Air, has ensure their survival. The advent of NDC has possible before. The NDC’s operating system watched the steady shift of passengers brought with it an industry standard that provides airlines with direct information becoming increasingly more reliant on now allows airlines to distribute their flights about their customers. mobile solutions. With apps to gain access directly through OTAs or through global Content and pricing autonomy: to travel content on-the-go, Troester distribution systems and also provide Personalisation also allows pricing commented: “In response airlines are ❱❱❱

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Hahn Air’s Troester: “Huge opportunities for OTAs.”

Yanik Hoyles, IATA’s director for industry of ancillaries is not only driven by the low- distribution programmes, believes the cost carriers but by the airlines of any reliance on mobiles will increase: “People business model. Today, they’re able to sell want to do everything on their mobile services such as luggage, seats or meals via devices. We’re not able to forecast a their apps. This is not only interesting for ‘peak’ mobile level. The big challenge direct distribution. Ancillaries present a that needs to be overcome with mobile huge opportunity for travel agencies as well. investing massively in their own apps travel is the number of options you can There are two main trends we see. adding features such as rebooking options, show. Today on Google, you can receive “The first is the increase of electronic chatbots and so fourth. A number are also dozens of flight options. On a mobile, three miscellaneous documents (EMDs) which are utilising mobile communications to or four options are the maximum you can gaining importance as a means to sell the communicate directly with their passengers reasonably offer. So NDC will be a great help global distribution systems and that’s why in case of irregularities with their itinerary. here because it allows you to offer relevant Hahn Air has extended its product range to Although this has not meant that indirect content, tailored to the shopper.” include HR-EMD. It allows airlines to offer distribution channels are out of the picture. According to Javier Sosa, director of ancillary services through travel agencies. “What we are experiencing from our side is channel experience for SABRE Airline “Secondly, the NDC gives travel agents that travel agencies are playing a major role solutions, the use of mobile appears to be access to the entire range of airlines, in this regard. If they react to the trend in a regional. “Markets vary, with the Asia-Pacific meaning they have the same content at smart way and offer corresponding solutions region showing higher growth and overall hand as the direct distribution channels. for tablets, smart phones and other mobile mobile booking share compared to those in This is a huge opportunity for the travel devices, they are even able to significantly Europe and the Americas.” agent community along with the airlines. It increase their business. We have seen some opens the market for new players to the of the big travel management companies SPECIALISE TO SUCCEED industry as well. It’s why travel agents need take advantage of new app solutions such as A possible option for the smaller agency is to prepare, and as a company we’re here to Triplt, which allows for a user-friendly to specialise in one specific region. Hahn support them by delivering the airline organisation of travel plans, similar to Air’s Troester explains: “Often you will have content to them in the best possible way.” chatbot technology etc.” small agencies which are very specific and But the way in which ancillaries are Mastering the mobile channels will be sell travel to a certain destination. For presented to the traveller requires caution, critical for smaller travel agencies to ensure example, an agency specialising in offering so as not to overload during the purchasing their survival. Along with the tech’ they need trips to Malaysia needs to provide rich phase. IATA’s Hoyles explained: “Travel to be able to offer their customer an entire content about local customs as well as agencies must ensure that the appropriate travel package in formats that are able to be cultural and social behaviour in a information appears at the right time in the easily transferred to mobile devices. For convenient and mobile-friendly format. process. If the traveller is shopping for such cases, the formats of how they present They could also offer consultation via precise dates and destinations, you may data to clients who prefer to use mobile mobile chats. It’s all about information, offer the ancillaries at the time of purchase. devices exclusively needs to be constantly availability and personalisation. Travel If they are seeking a general experience monitored. consultants, if they are to remain so, they [affinity shopping] then you might only want should literally only be a ‘touch’ away. to offer the ancillaries at a later stage. If it’s The price of the ticket is now just a small business travel, then offers will be filtered by portion of the income for travel companies, the corporate travel policy. An agency could as a wealth of ancillary options are have bundles set up based on the level of presented to the passenger. While there’s traveller that appear up-front, such as a the risk of overwhelming the client, free-bag allowance or lounge access.” how these are presented during But, Mike Reyes, senior director of offer booking has become a careful management at Sabre, warns of the danger balancing act for airlines and of overloading the online booking process. travel agencies. Troester “We do see the conversion process dropping described the steady rise of off when you are asking a customer to stay the ancillary extras: “The sales on your website for 10 minutes and make

LARA June/July 2019 IATA’s Hoyles: “Reliance on mobiles will grow.” @news_LARA 47 BEYOND THE BOARDING PASS: BOOKING, PRICING AND DISTRIBUTION

Sabre’s Reyes: “Don’t overload online booking process.” redundant, irrelevant offers, that see the changes and it still generates revenue. For most negative reactions from the customer.” OTAs and TMCs shifting to NDC will mean Despite the fluid travel transactions that additional expenses, which, at present, do NDC has brought to the industry, there are not guarantee any benefits. The reason for still two major disadvantages to the system. this is the drastic market fragmentation with The use of XML instead of EDIFACT is differing NDC solutions, and no one-size-fits- supposed to be standard, but in reality, as of all solution. early 2019, the implementations are Although the big three GDS giants: different and depend on the IT provider. So, Travelport, SABRE and Amadeus are all dozens of choices to complete a booking. there is no real ‘operating standard’ for all. participating in the adoption of NDC as part Each one of these ‘next steps’ is an This means that if every airline were to plug of the current evolution occurring across the opportunity for a consumer to fall out of the into their own NDC pipeline, there would be industry, the new system was supposed to booking flow, and the airline’s conversion countless API channels, impossible for OTAs allow airlines to bypass GDS. At present, falls. The more successful airlines are and travel management companies (TMCs) GDSs are likely to remain in place even with currently working at opportunities for to integrate with. NDC adoption. Airlines will still be able to shoppers not to drop out of the process. It’s The second major disadvantage is with merchandise the ancillary services through the airlines that are overwhelming the legacy, distributors won’t leave the GDS NDC pipelines; they will still be achieving consumer with multiple offers, or pipeline because they don’t require any their goals. n

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Associated titles: Join the conversation: Regional @news_LARA LARA magazine 49 BEYOND THE BOARDING PASS: REVENUE MANAGEMENT

Revenue management goes dynamic and personal As airlines look to increase revenue beyond just the ticket, Henry willingness to pay for them. This in turn Canaday examines the wealth options and extras now being offered means the offer, price and other terms can to passengers. be truly personal, not just addressed to a broadly similar segment of customers. or a long time, airline revenue analysts real time, direct, personal and very Ancillaries have become hugely have segmented passengers into complete in the services offered. important, especially to low-fare airlines. Fdifferent types based on time of Dynamic and real time mean that the offer Carriers are both picking up substantial booking, ticket terms wanted, journey length, to each customer reflects the absolute latest sums from their basic travel product, like types of travel and other factors. Airlines had market information available, not yesterday’s baggage and better seating, and getting at previously set prices for each booking class data digested and interpreted last night. And least a cut from third-party products, such and they then opened or closed each class to this means all relevant information, including as hotels, rental cars and insurance. So, the different types of travellers with the aim of the latest moves by competitors. dynamic, personalised offer will include maximising revenue from those willing to pay Direct means that whenever possible, these items as well. more and then filling seats with the more airlines are connecting with each customer All these changes are being supported to cost-conscious. without an intermediary like a GDS, or at greater or lesser degrees, at various paces, That overall logic still applies. But least getting all the information they would by the major revenue management software changes in the market and technology are get on each customer with no party in vendors. Some progress depends on actions making it possible to apply the logic much between. Each transaction can then outside airline or vendor control, like the more precisely, much more quickly and to a become like a website sale, and that gives penetration of IATA’s NDC and One Order much fuller version of the airline’s offer. the airline a rich picture of the customer, programs. Carriers can thus choose a more Revenue management is going dynamic, his or her desires, possible choices and aggressive or less aggressive approach ❱❱❱

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to future revenue management, just as IT “It makes the revenue analyst’s life easier; companies are varying their adoption of the “Others offer only he/she can drill down to see demand and new approach. But failing to see and choose how competitors are operating, quickly a path will impose heavy penalties. dynamic availability. make decisions based on the forecast, who Some small or very young airlines still booked and who will show up and then manage revenue the old-fashioned way, We offer unlimited optimise the seats.” with Excel spreadsheets and very simple price points with PROS has been supporting Southwest rules, notes Sebastian Gross, product owner Airlines for 30 years, supports Frontier for the Dynamic Pricing Solution at near-zero delay and Airlines and recently signed up South Lufthansa Systems. “They can do this for Korea’s Jeju Air. The application aims to categories of flights, but not for each single have the tools to maximise total revenue from each seat with departure,” Gross says. the flexibility to unbundle ancillaries from Most carriers, low-fare and majors are distribute them.” seats. The aim is to determine how much using more modern revenue-management customers are willing to pay for ancillaries tools. And these modern tools are shifting new ancillary. That means airlines will not and when they should be offered. toward a new world of direct distribution have to agree on each new EMD definition PROS is now doing a pilot study on how it and much more personalised selling. LSY with the rest of the industry before can personalise merchandising of air fares has already begun to shift its revenue- implementing a new ancillary. and other services. It will segment offers by management software to this new world, LSY has already prototyped this new channels and decide what should be the and Gross expects the entire airline industry retailing approach with one airline and is offer for each fare class or bundle. Again, will have shifted in about 10 years. talking to many other carriers about rolling there will be an emphasis on, “what to sell, “There will be a complete shift in it out more generally. Gross says LSY is the when,” Mehta says. distribution channels, much more customer- only provider with an actual working NDC- centric selling, and pricing will be part of it,” One Order platform that does true dynamic MAKING IT PERSONAL the LSY executive predicts. He believes true pricing. “Others offer only dynamic PROS has launched its next-gen revenue dynamic pricing, with prices determined now availability. We offer unlimited price points management platform with more advanced of the customer’s request, will come. LSY is with near-zero delay and have the tools to demand forecasting and more Artificial now doing a “clean redesign” of its revenue distribute them.” Intelligence (AI) to personalise offers management to support this approach. The potential gains could be very according to rules on both fares and significant. First, direct customer ancillaries. PROS also offers an essentials ONE ORDER connections should save hundreds of version of its revenue manager for young Traditional management handled pricing by millions of dollars in GDS costs. And some airlines. “As the airline grows it can adopt opening and closing booking classes, an airlines have estimated that true dynamic more robust capabilities, Mehta says. That unmanageable approach for true dynamic pricing alone will boost revenue by 3-6%. kind of flexibility has kept PROS as the pricing. In the future, direct connections to Personalising full offers and their pricing market leader in revenue management, customers, bypassing GDSs with IATA’s NDC could offer further revenue gains. supporting over 70 airlines. “It’s all science- and One Order standards, can customise One Order enables that because offers are based,” Mehta stresses. “Now we are prices and offers on the fly. not limited by available EMDs in GDSs or working with new AI technologies.” Gross says One Order is the next logical airline passenger service systems. “It’s much Navitaire continues to offer its traditional step after NDC, allowing unlimited flexibility easier to bundle ancillaries and deliver them revenue-management tool, SkyPrice, to with an airline’s own ancillaries, integrating to customers,” Gross says. “If an airline wants optimise revenue and manage inventories third-party ancillaries and easing to provide a new service, it should be able to for low-fares and hybrid carriers, says accounting for interline travel. LSY is do that with minimal time-to-market, not product manager Ignacio de Cardenas. But building its new airline retailing platform wait until other airlines agree to a change.” it has also added Ancillary Pricing around NDC and One Order. All ancillaries, Even low-fare carriers simply must use Optimisation, or APO. both flight-related and non-flight, will be sophisticated revenue-management tools to APO started as a tool to define prices directly contained in the order without thrive in highly competitive and constantly dynamically for ancillaries, such as premium having to create a new Electronic changing markets, argues Aditi Mehta, seats and baggage, using Machine Learning Miscellaneous Document, or EMD, for each senior product marketing manager at PROS. algorithms and a flexible data set. “It gave

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carriers the ability to be more flexible in how per seat may be recognised and fare prices they offered products and to offer products “You can fine tune adjusted accordingly. Second, Sabre is at the right prices,” de Cardenas explains. looking at optimising the prices of ancillary But now APO has evolved to support the offer for your services themselves, either by looking at dynamic pricing of air fares too. history or testing prices in the market. De Cardenas defines dynamic pricing as website or other Fare families and bundled offers are “pricing based on much more data and real- channel. There is lots another focus. Chamberlain says Sabre can time data.” Machine Learning algorithms use track purchases by fare class, but in the customer segment, itinerary, competition of buzz on the idea, it future offers will likely be agnostic about and other data to determine the price at fare classes. “We will automate based on time of sale. “You can fine tune the offer for is the most exciting classless revenue management.” Offer your website or other channel. There is lots management is not new, he notes, but of buzz on the idea, it is the most exciting thing going on now.” using AI to offer different price points to thing going on now.” different passengers is new. for all is a desire to get more real-time data Although it is rich in real-time data HUNGRY FOR DYNAMIC PRICING into the revenue management tools. sources, Sabre’s revenue manager can The way it works at Navitaire is that revenue Sabre has been in revenue management let the analyst skip over unnecessarily management sets the minimum price, and for about 30 years, notes Sam Chamberlain, granular data, which can overwhelm then APO fine tunes this price for each product director for pricing and revenue the analyst and is not required for customer. “We are looking at integrating management. It introduced its latest revenue simpler networks. revenue management and APO, giving more optimiser in 2017 with several new features. And Chamberlain stresses that Sabre’s information to APO from revenue First, a fare optimiser automatically set tools are cloud-ready and can scale up for management,” de Cardenas says. prices, a task previously done manually. increased demand in minutes, rather than No airlines are doing dynamic pricing Second, availability is now set dynamically, the months required by some applications. now, but Navitaire has one Asian customer in real time with much richer data from They can switch easily from maximising that wants to go first with the new approach GDSs on shopping, rather than overnight yield to maximising revenue to maximising and is in discussions with several other based on batched data. load factor. A revenue-opportunity module potential users. De Cardenas believes The availability decision is thus “optimised enables analysts to “see money left on the dynamic pricing should “absolutely interest all the time,” Chamberlain says. There are not table,” the percent of possible revenue low-fare airlines, maybe more so.” necessarily more fares than before, but fares achieved. Furthermore, Sabre “goes above Navitaire can price ancillaries both are set based on the competition. and beyond” enabling NDC by offering an separately and as part of fare families, Sabre is now working on ancillaries along API hub that can create connections with using Machine Learning for the latter two lines. First, an average ancillary spend NDC-compliant channels. n approach. GDSs have challenges in enabling dynamic pricing, but Navitaire’s solution supports NDC. De Cardenas stresses that APO is tightly integrated with Navitaire’s New Skies passenger service system and allows users to build their own Machine Learning models and then import these into APO. Navitaire supports some very important “low-fares”, including Air Asia, Ryanair and Spirit Airlines. De Cardenas expects tremendous growth in , where carriers are “hungry for dynamic pricing.” Major, established low-fares can afford to invest in the new approach, but smaller start-up low- fares may not be able to. But the clear trend

laranews.net June/July 2019 LARA 52 REGIONAL FOCUS: BRAZIL AND ARGENTINA

High potential behind a host of problems

Argentina and Brazil are at the rgentina is looking to double its This represented a slight softening forefront of developing new low- aviation market within four years. compared to December’s growth of 6.1%. cost carriers in South America. A Having given up on saving its flag The signs are that passenger volumes will carrier, Aerolineas Argentinas, and with continue to accelerate slightly over the next Despite past political unrest and a new government in place under few months and while these figures can be financial issues, both nations are President Mauricio Macri, it wants vulnerable to seasonal fluctuations in real taking the necessary steps to liberalise air operations. This has brought terms, suggestions are that Latin America, towards developing competitive a flood of interest from new operators – one particularly Brazil and Argentina, are slowly carriers for a growing domestic of the first was low-fare carrier Flybondi. leading the way in the region. This may be market need. Glenn Sands com in 2018, followed by Norwegian Air. due to renewed economic and political The plan is to revolutionise air uncertainty in a number of key countries in provides an overview. transportation within the country and an the area, which could weigh upon air indication of this is the fact that more than a transport demands in coming months. dozen operators have requested over 500 international and domestic routes. PRODUCTIVE PARTNERSHIPS But infrastructure constraints, economic Despite the regional uncertainties, Latin uncertainty and mounting union opposition American carriers are expected to report a are undermining Argentina’s grand US$700 million net profit in 2019 (up from expansion plans. As a new airline works to $400 million in 2018). The expected net profit expand its network in the country, it needs per passenger is $2.14 (1.6% net margin). to develop strategies to face these Economic conditions in local markets are challenges for Argentina to establish a recovering slowly and as Brazil’s economy respected regional and international carrier. emerges from recession, Argentina faces According to the International Air Traffic new difficulties. The strength of the US Association (IATA), passenger demand in the dollar has added to challenges for airlines in Latin American region climbed 5.8% in the region by raising the local currency cost January 2019 compared to January 2018. of key dollar-denominated inputs, such as

LARA June/July 2019 @news_LARA 53 REGIONAL FOCUS: BRAZIL AND ARGENTINA

Avianca 2% Norwegian 1%

Andes 7% Aeroilinaes oil and aircraft, but significant joint ventures Argentinas 66% are improving performance. Flybondi 8% One of the most significant joint ventures in the region is Norwegian Air Argentina – an Argentinian subsidiary of the Norwegian Air Group, which launched operations in LATAM 16% October 2018. The airline’s first flight took place from Buenos Aires’ Aeroparque Jorge Newbery to Córdoba on 16 October. The CEO of Norwegian Air Argentina, Ole Christian Melhus, called it a “magnificent milestone”, adding that it will “contribute to increasing connectivity, stimulating tourism and creating thousands of new jobs in this country.” Source_EANA_Argentina_domestic_market_share2018. Norwegian Air Argentina has started its operations with a single Boeing 737-800 and It’s not just external operators who are demonstrated a network strategy that plans to increase the fleet to four to operate seeing the potential within Argentina. The prioritised connecting cities in Argentina’s over six routes connecting Buenos Aires with nation’s first low-fare airline Flybondi.com interior and avoiding the Buenos Aires- Córdoba, Mendoza, Iguazú, Neuquén, took delivery of its first aircraft, a Boeing centric strategy of its rivals. By May 2018 it Bariloche and Salta. In the initial stages, all 737-800, in December 2017. was the country’s third largest airline. operations in Buenos Aires will be carried The event was significant as it marked Aerolineas Argentinas, with its Austral out at the Jorge Newbery Airport, but the leasing company SMBC Aviation Capital’s subsidiary, continues to dominate the airline intends having 10 to 15 Boeing 737- first aircraft delivered into the Argentine domestic market with 70% market share. It 800 aircraft operating in Argentina by the market. The airline has since received four is followed by LATAM Airlines Argentina end of this year. However, this may be more, bringing its fleet to five aircraft, all in (14%), Flybondi.com (7%), Andes (6%) and significantly delayed as Boeing seeks to an all-economy class configuration. Avianca Argentina (1%). resolve technical issues related to the The ultra-low fare airline began Flybondi.com was founded partly via a aircraft’s MCAS system. commercial operations on 26 January, crowd funding programme with the aim of Despite the external regional problems, following the deregulation of the Argentine launching the first ultra-low-cost carrier in many of which are beyond the control of airline marketplace. Within five months it the country. It has demonstrated that parent company Norwegian Air Group, its sought an additional 361 new route there’s an appetite for this style of carrier CEO, Bjorn Kjos, made it clear that his airline authorities to secure its long-term expansion. within the region. At present, the operator is seeking to add further routes to more The airline shunned the controversial new is serving two countries and has 14 South American countries based on strong Buenos Aires El Palomar low-cost airport and destinations across 19 routes but is set to ticket sales on the Buenos Aires route. the new routes requested by the airline increase this during the year. ❱❱❱

laranews.net June/July 2019 LARA 54 REGIONAL FOCUS: BRAZIL AND ARGENTINA

Azul Fleet Plan 155 150 150 141 regular service with a Brazilian operator 129 46 ahead of any other. 123 20 32 41 6 Embraer has made it clear that its new 20 32 aircraft is aimed at enabling regional business 7 42 51 growth, as well as complementing existing 10 60 low-cost carrier fleets for which Brazil’s 33 70 12 aviation network is seen as a prime target. 33 12 Embraer E1 Brazil’s domestic and regional carrier 33 12 A320neo family market is one of the most volatile at present. 33 12 63 A330 This is not in terms of losses but in the rapid 48 32 34 ATRs increase in passenger demand, coupled with 22 32 10 E-Jets the revision of rules by Brazil’s Congress 2018 2019 2020 2021 2022 2023 allowing joint ventures and partnerships to Source: Azul be formed with overseas operators. The situation is unlikely to change through 2019. BOOMING BRAZIL demise meant that Brazil’s other largest Last year, outside investments from US As predicted in 2018, Brazil’s three largest airlines – GOL, LATAM Airlines Brazil and Azul airlines promised long-term opportunities – airlines grew their domestic capacity in – picked up the opportunities. It’s likely American Airlines, Delta Air Lines and United varying degrees. Demand within the country there will be more, with predicted solid have all increased their stakes in the appeared to gradually rise after plummeting domestic passenger growth for the next 11 domestic operators. For the time being the during the country’s recession in 2015. months until November 2019. rapid growth and the prospect of missing an Azul, GOL and LATAM Airlines Brazil now Additionally, the outgoing administration opportunity in the region means the finer believe the country’s domestic market is in a of former Brazilian president Michel Temer details of forging joint ventures between period of stabilisation, with corporate issued an order to lift foreign ownership Brazil’s domestic airlines and those from demand finally starting to rebound. Based restrictions on the country’s airlines, which overseas are still being ironed out. n on this prediction, all three airlines were capped at 20%. The effects of this expanded their international capacity with change have still not had their full impact, LATAM adding a service to Rome, Las Vegas but it coincides with a lot of joint venture Brazilian Association of Airlines outlined (27.9.2018) and Boston in 2018. GOL inaugurated its activity within Latin America, as in Argentina market share between member iarlines in Brazil in Aug 2018. service from Fortaleza and Brasilia to Miami with Norwegian. and Orlando, using Boeing 737 MAX aircraft. Brazil is keen to remain in position as the Avianica 13.8% According to CAPA, most Brazilian airlines region’s largest aviation market and is home have an optimistic outlook for 2019 as the to manufacturer Embraer. Much like ATR, country’s economic growth is expected to Embraer believes that by the early-2030s as top 2% this year and domestic demand much as 90% of regional aviation activity remains stable. will come from newly created routes, for Azul But at the end of 2018, the bankruptcy filing which Latin America will be a 19.3% of Avianca Brazil cast a long shadow of key provider. Much of the uncertainty over the dynamics of the Brazilian focus within the Brazilian market. This was despite posting solid gains in market is on LCC. domestic passenger share, but fuel and This positive outlook is demonstrated by LATAM currency pressure created tough headwinds Brazil’s Azul Airlines being the launch 32.8% for the airline. It was reported that the airline operator for Embraer’s revolutionary owed lessors close to US$100 million. Just E195-E2. Azul already has 60 E195s in weeks prior to the bankruptcy filing, the airline operation and the first delivery of the E2 is returned four of its aircraft to lessors. due shortly. The type is entering service While the full effects of Avianca Brazil’s ahead of any European airline – a GOL bankruptcy have yet to be fully felt, the notable first in that a Brazilian 34.2% capacity cuts resulting from the airline’s manufactured airliner is commencing

LARA June/July 2019 @news_LARA 55 FIVE QUESTIONS TO…

John Slattery, president and chief executive officer at Embraer Commercial Aviation, talks about the current and future trends within the regional aircraft market and how manufacturers are upping their game to adapt to the challenging, yet exciting times ahead. … Embraer’s John Slattery

What are the biggest challenges facing to suggest that the peak of this great cycle is carrier to mitigate impacts of planned aircraft manufacturers at present in now behind of us. maintenance events that would disrupt the terms of technology limitations? The need to maintain profitability levels schedule, capture high season peak Firstly, aircraft must be safe. So, any new will certainly drive the industry towards our demand, avoid long-term asset technology must first prove that it will not segment of up to 150 seats. Furthermore, commitments when launching a new jeopardise current safety levels. This is, jets and the turboprops are designed to operation, and even cope with AOGs. without question, the single biggest challenge address genuinely different markets, as a European ACMI business has grown 11% for any new technology being considered. matter of fact the new jet generation E2 has annually on average over the last five years In some segments, for example the sub- reduced the economic benefit of the current in terms of fleet leased and we see room for 50-seat market, disruptive technology is turboprops on very short routes, so further growth. There are opportunities for required to make a product, and the naturally jets are increasingly favoured. With outsourcing low density routes to regional segment, economically viable again in jets, airlines not only get a more comfortable operators with a lower cost base. Allowing terms of operational costs. Single-pilot and flexible machine when compared with major and low-cost carriers to bring in a capability and electrical engines are current generation turboprops; but also the more efficient aircraft to serve and develop examples of solutions that could help to most economic option. thin routes, without adding complexity to drastically reduce operational costs. their narrowbody operation. However, these options must also be What are your views on electric powered proven to be reliable and safe; this takes regional aircraft and when do you think Brexit has now been extended again, time and limits the speed of technology it will be a viable option? after three years of negotiations, in terms implementation in aviation. Electrification is opening a new degree of of what aircraft manufacturers, operators freedom in the design space for novel aircraft and suppliers need to prepare for – what Regional carriers appear to be shifting concepts and we do see a path for a potential do you feel will be the impacts to the back to jets, after the last few years of disruption on the market. However, there are industry and how is it best to prepare? focusing on turboprops, what do you see still significant challenges to be addressed According to the IATA, the direct economic as the benefits to this decision, if any? regarding technologies’ maturity, plus impact is likely to see the United Kingdom We have seen the whole sub-150-seat operational and regulatory issues. air passenger market reduce by 3% to 5% segment gaining real momentum. From the by 2020, when compared to the non-Brexit turboprop side deliveries are around 110 At the ERA conference in Prague you scenario. aircraft/year, and on the jet side deliveries mentioned that you felt there will be a A more fragile economic backdrop over are around 150 jets/year. growth in Europe over the next 10-15 the coming years will force airlines to focus In 2015, the industry reached 8.6% of EBIT years in ACMI, what do you feel will even more on making structural Margin - over two times larger than we saw cause this and what makes you think this improvements, to lower breakeven load at the beginning of this decade. However, will be the case? factors and boost capital productivity. we have seen airline margins steadily falling, Europe is an ACMI powerhouse, responsible Whatever the scenario, we have full and seemingly systematically. 2016: 8.5%, for roughly 40% of all ACMI companies and confidence that both generations of E-Jets 2017: 7.7%, 2018: 6.8%. For sure those fleet today. From the lessee standpoint, will fulfill its role of providing efficiency and numbers remain strong, but it’s reasonable ACMI brings lot of value, since it allows the profitability to this market. n

laranews.net June/July 2019 LARA aviationdevelop.com

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Magnetic MRO Airbus launches “Skywise Health continues to Monitoring” with US airline Allegiant Air invest in new tech Airbus has launched the initial operations of its new Skywise service – Skywise Health Monitoring (SHM) – with Allegiant Air on the operator’s A320s. Dynamically coupled with Skywise Reliability Services (SRS) and Skywise Predictive Maintenance (SPM). SHM is hosted on Skywise, gathering live diagnostic feeds from the aircraft via its aircraft communication addressing and reporting system linked to the airline’s information system. By utilising the aviation data platform, SHM collates and focuses the alerts, flight-deck inputs and maintenance messages and prioritises them. It correlates any faults with the relevant troubleshooting procedures, highlights operational impacts and provides maintenance history of the system to allow effective tracking of the alerts. SHM will save airlines time and decreases the cost of unscheduled maintenance. The system can capture 20,000 real-time aircraft parameters allowing end-to-end unscheduled event management/fixes, for example, by anticipating tools and parts’ availability closest to the aircraft. Magnetic MRO, a global provider of technical care for aircraft operators and lessors, has launched Interior Inspector – a new service which connects airline workers and Better efficiency through maintenance teams in logging damages found in the passenger cabin of a Lufthansa Technik’s advice commercial aircraft. US carrier JetBlue Airways is one of “During interior inspections for our the first customers of Lufthansa customers, we quickly understood that the Technik’s new engineering consulting pen and paper approach was not the way service – Maintwise. forward,” explained Magnetic MRO’s interior In just two months, Lufthansa project manager Pärtel-Peeter Kruuv. “We Technik developed a maintenance needed a tool that connects found damages concept tailored to the individual and pictures or notes taken on a specific needs of JetBlue for its entire Airbus A320 fleet of around 130 aircraft. location and combines that in a user- The aim of Maintwise is to bundle optimally all aspects of an aircraft’s maintenance friendly system that would only need a short programme, considering available ground times, customer targets and framework tutorial to be used.” conditions. In co-operation with the customer’s planning and engineering experts, the The application allows either the cabin engineers at Lufthansa Technik devised a maintenance concept that optimally harmonises crew or dedicated mechanics to log the flight plan with the maintenance programme. whichever kind of damages or findings in Depending on the customer’s objectives, higher aircraft availability or lower maintenance the passenger cabin of a commercial costs are the main targets. Other objectives include improving planning stability or aircraft. The application is intended to work increasing flexibility for aircraft operations. on smartphones, tablets and PCs. Engineers at Lufthansa Technik assess the customer’s situation by identifying the exact The next stage will see Magnetic MRO targets and collecting relevant information concerning the various maintenance concepts. introduce the application to its customers as Considering ground time constraints, maintenance requirements, required working hours a service to start collecting data on how and other criteria, different concepts are simulated and evaluated. Interior Inspector is used daily by Based on the analysis, Lufthansa Technik proposes possible scenarios for maintenance commercial airlines. The collected data will concepts and compares their economic benefits. From this, the customer chooses the most allow the application to be continually suitable concept for implementation, which is then developed in detail. developed and improved.

laranews.net June/July 2019 LARA 58 PEOPLE AND APPOINTMENTS

Air Wisconsin Airlines has appointed Robert CDB Aviation has appointed Sign Kadouh to Binns as president of the airline, reporting to the position of head of commercial, Asia Christine Deister, CEO. Binn brings over 25 Pacific, and Nick Seah to the role of head of years of airline and industry-related commercial, Greater China and North Asia. experience, including as chairman and CEO Kadouh joined CDB Aviation in February 2017 Aviation of Global Aviation Holdings. as senior vice-president, commercial, calendar 2019 becoming part of the lessor’s team in Hong Kong. While Seah joins CDB Aviation from BOC JUNE Aviation where he served as executive vice- 17-23 Tracy Tulle has been named president, overseeing airline leasing and sales Paris Air Show, Paris, France* senior vice-president, flight for a number of Asia-Pacific jurisdictions. https://www.siae.fr/en/ crew operations at Allegiant. 25-27 Tulle has led Allegiant’s IATA Aviation Data Symposium, Athens, in-flight services since 2012 Infare has made Mikkel Bønnelycke chief Greece* and is the first to serve in this new role. She financial officer, helping to guide the https://www.iata.org/events/Pages/ also currently chairs Allegiant’s Customer company’s continued expansion. Previously aviation-data-symposium.aspx Experience Leadership Team. he was CFO at the IT infrastructure provider GlobalConnect A/S and HR and payroll SEPTEMBER software developer Lessor A/S. He also 4-6 JetBlue Airways has served as CFO and COO at mobile payments Aviation Festival, London, UK promoted Michael Stromer provider Swipp. He succeeds Peter https://www.terrapinn.com/conference/ to chief product officer, Freiesleben who is leaving to become an aviation-festival/ technology. Stromer joined active investor in young growth companies. 4-7 JetBlue in 2007 and has held RAA Annual Convention, Nashville, USA various roles across marketing and Following the 2019 Annual General Meeting, https://www.raa.org/convention/ information technology, most recently as Airbus formally appointed Guillaume Faury 9-12 vice-president tech products. as chief executive officer, replacing outgoing APEX EXPO, Los Angeles, USA CEO Tom Enders. It was announced last http://expo.apex.aero/ October that Airbus’ board of directors had 11-12 Robert Deluce, the founding president and selected Faury, previously president of AeroEngines Europe, Istanbul, Turkey* CEO of has assumed the Airbus Commercial Aircraft, as the next CEO. https://www.aeroengineconference.com/ new role of executive chairman, with his son en/home.html Michael Deluce taking on the president and Pratt & Whitney, a division 18-19 CEO role. Kevin Jackson moves to the of United Technologies Corp. Dispax World, London, UK* position of executive vice-president and has appointed Maria Della https://unrulypax.com/ THERE IS NO COMPARISON. chief commercial officer while Paul Moreira Posta as president of Pratt & 21-24 remains chief operating officer and also Whitney Canada, effective 1 World Routes, Adelaide, Australia* NO EQUAL. THERE IS ONLY ONE. becomes executive vice-president. June. Della Posta joined Pratt & Whitney in https://www.routesonline.com/events/204/ THE COMMERCIAL JET ENGINE 1985 and was named senior vice-president, world-routes-2019/ IN A LEAGUE OF ITS OWN. Pratt & Whitney Canada in 2012. Della Posta 24-26 ExpressJet Airlines, a succeeds John Saabas who has announced MRO Asia-Pacific, Singapore* Powered by an industry-fi rst geared architecture — and more than United Express carrier, his retirement. https://mroasia.aviationweek.com/en/ 40 other groundbreaking innovations — the Pratt & Whitney GTF welcomed Ajit Jacob as home.html is unlike any engine that’s come before it. managing director of EXPLORE THE FUTURE OF FLIGHT AT transformation. In a newly Hernán Rincón Lema notified Avianca OCTOBER PW.UTC.COM created role, he will lead the expansion of Holdings’ board of directors of his plans to 8-10 the company’s corporate infrastructure and retire effective 30 April after three years’ ERA General Assembly, Juan Les Pins, support functions as the airline grows with serving as the chief executive officer. The France new Embraer E175s and hires more than 600 announcement was made on the completion https://www.eraa.org/events/era-general- pilots in 2019. Jacob joins with more than a of his third year as CEO and in line with the assembly-2019 decade of financial planning and analysis company’s planned transition. Rincón joined roles at United Airlines, serving most Avianca to lead the company’s transformation *LARA is a proud media partner of these events. recently as director of compensation. process which has been accomplished.

LARA June/July 2019 @news_LARA

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