D A Y 1 AVIATION WEEK & SPACE TECHNOLOGY / AIR TRANSPORT WORLD / SPEEDNEWS July 11, 2016 Farnborough Airshow ADS Wants Brexit Response Association demands “bold” action on situation. PAGE 4 Boeing Says Come on Over With AW&ST celebrating 100 years too. PAGES 12-13 Get Moving on MOM! Airlines demand new “middle- of-the-market” jet. PAGE 14 Boeing: Dennis Muilenburg C Series Flies to “Our future is not guaranteed.” PAGES 24-26 Impress the Press Airbus: Fabrice Brégier Brexit impact and the A320neo. Bombardier flew no fewer than three trips for the world’s press yesterday, just days before the first C Series enters service with SWISS. Watch video of one of the flights on aviationweek.com/shownews/farnborough-airshow-2016/videos. PAGES 28-30 Curado Looks at His Decade Boeing to Boost KC-390 Sales Embraer has become a genuine global powerhouse. PAGE 32 Embraer’s sales drive for the KC-390 multi-role an existing cooperative agreement to “pursue transporter, which is making its first appear- new business opportunities, both for the air- GE Sees an Electric Future ance here at Farnborough, is set for a dramatic craft itself and for aircraft support and sustain- boost following the announcement that Boeing ment.” The new deal is broader in both scope Disruptive technologies and supply-chain changes. PAGE 40 and the Brazilian manufacturer are expanding and geographical reach. —Page 6 P&W Sees a Business Boom Busiest expansion phase in two decades. PAGE 42 F-35’s UK Beneficiaries BAE, EDM, GKN, Leonardo, Rolls, Stirling all do well. PAGES 54-58 ShowNews Digital Embraer’s Treble: Pitching High Access daily ShowNews content on the Embraer is here with not one but three new aircraft: the Legacy 500 business move. Go to aviationweek.com/shownews jet, KC-390 military transport and E190-E2 airliner. Getting that message across are (L to R): Marco Tulio Pellegrini, president & CEO, Embraer Executive Jets; John Slattery, president & CEO, Embraer Commercial Aviation; Paulo Cesar Silva, president & CEO, Embraer; and Jackson Visit us at Schneider, president & CEO, Embraer Defense & Security. Pavilion OE3. Designed to prop up your profits. upyour prop Designed to Bombardier, Q Series and The Evolution of Mobility are trademarks of Bombardier Inc. or its subsidiaries. This document does not constitute an offer, commitment, representation, guarantee or warranty of any kind. The performance of the aircraft may differ from the images shown and, together with any related commitment, representations, guarantee or warranty, shall be determined in a final purchase agreement. All rights reserved © 2016 Bombardier Inc. MORE PASSENGERS THAN THE COMPETITION If generating additional value is the $8 million question, the Q400 is your answer. Speedy and powerful enough to keep up with jets, but with up to 20% lower seat costs and space for up to 14 additional passengers, it’s performance-engineered so that you can grow your network, accommodate more passengers – and watch your profits take flight. ADS Calls for ‘Bold’ Editor-in-Chief John Morris [email protected] Action Over Brexit +1 860-316-8750 Managing Editor Rich Piellisch The British government needs to be “relatively bold” in order to Senior Editors attract investment from business and stabilize the uncertainty Scot Greenan, Mike Jerram Writers caused by the country’s decision to “Brexit,” according to UK Angus Batey, Paul Jackson, Guy Norris, Tony Osborne, Lara Seligman aerospace trade organization ADS Group. Copy Editor Polly Watson Senior Art Director & IT Manager he government has a “menu” of options Kirk Fetzer it could use in the short-term to coax out Art Directors T Ariel Fristoe, Magdalena Long and trigger investments that people “might be Photographer holding off of,” Paul Everitt, CEO of ADS, told Mike Vines journalists in London on June 30 as Britain’s Digital Photo Editor Fran Vines aerospace and defense industry prepared for Digital Data Manager the Farnborough Airshow. Theresa Petruso The decision by British voters to exit the Managing Director Iain Blackhall European Union on June 23 has caused [email protected] sharp falls in the value of the pound. Sterling U.S./CANADA ADVERTISING SALES fell to 30-year lows against the U.S. dollar and Beth Wagner – [email protected] Tom Davis – [email protected] billions of pounds were wiped off the value of Rob Howlett – [email protected] stocks and shares, although stock markets Leah Vickers – [email protected] Tim Reed – [email protected] have rallied and recovered since. Richard Brown – [email protected] Greg Smith – [email protected] British Prime Minister David Cameron also David Seaberg – [email protected] resigned, remaining in place until October Miguel Ornelas –[email protected] Chris Salem – [email protected] to “steady the ship” and pave the way for a INTERNATIONAL ADVERTISING SALES new leader and government that would lead Andrea Rossi Prudente [email protected] the country into exit negotiations and future Germany, Switzerland trade agreements. Robert Rottmeier – [email protected] “We will all have to get used to the idea of UK, France, Portugal, Spain, Benelux [email protected] relative stability,” said Everitt, adding that the Paul Everitt, ADS Group CEO UK, Ireland, Middle East uncertainty had caused jitters and a reluc- Ann Haigh – [email protected] tance to invest because it was unclear how understand its new trading relationship with Operations Manager Britain will fare when it comes to negotiat- the EU, and in the longer-term would be pre- Erving Dockery Marketing Communications Manager ing its exit, a process that is still at least two pared to position itself for a range of global Elizabeth Sisk years away. It is a time for the government to opportunities, he said. Printing & Distribution Management MM Print Services Limited be relatively bold, to ensure that key sectors ADS chief economist Jeegar Kakkad said www.mmprintservices.com know there is stability.” that future British leaders had to ensure ShowNews is published by Penton Media Inc., 9800 Metcalf He suggested that the government needed Britain kept its access to agencies and bodies Ave., Overland Park, KS 66212-2216. Also the publisher of Air Transport World, Aviation Daily, Aviation Week & Space to carry out its own investments in defense as such as the European Aviation Safety Agency Technology, Business & Commercial Aviation, SpeedNews, The Weekly of Business Aviation and World Aerospace Database. well as on national infrastructure, adding, “It – an EU organization – to ensure the coun- ShowNews at Farnborough Airshow: Chalet B14 is important we take a sensible and structured try kept a seat at the table and an influential tel: +1 860-316-8750 view and not go into panic mode. There are voice in it. sensible opportunities they [the government] Everitt said he was confident of continued can take to make the UK more attractive to success for the UK aerospace and defense Chief Executive Officer persuade people to trigger investments they sector, which now employs 128,000 people David Kieselstein might otherwise have waited on.” and has an annual turnover of GBP31 bil- Senior Vice President, Strategy and Business Development He suggests tax credits for research and lion (US$42 billion), of which GBP27 bil- Warren N. Bimblick Chief Financial Officer/Executive Vice President development programs that might go else- lion (US$36 billion) is exported. “Aerospace Nicola Allais where, as well as changes to investment and defense are long cycle businesses; we are Senior Vice President & General Counsel allowances and tax rates for capital such as not going to stop delivering aircraft, deliv- Andrew Schmolka equipment and infrastructure. Without such ering defense capabilities. Those will roll President, Aviation Week incentives, Everitt suggested the UK could on [post-Brexit]. The sector is strong and in Gregory Hamilton “generate a bit of a vacuum while everyone good financial health; order books are good.” ©Copyright 2016 by Penton Media. All rights reserved Material in this publication may not be reproduced in any sees what happens.” he added. —Tony Osborne form without permission. In the medium-term, Britain would See Brexit Dilemmas – Page 95 4 July 11, 2016 | AviationWeek.com/ShowNews The engine of change will come from the company that can build it. GE is bringing together best-in-class analytics and deep domain expertise to help our customers solve their toughest challenges. See how we’re changing the way we fl y at geaviation.com. NEW AT THE SHOW Boeing Ups KC-390 Support, Lockheed Martin F-35B Will Help Embraer Sales The canceled appearance two years ago will be for- of Twinjet Transport given and forgotten once the F-35B makes its belated Farnborough debut today. Two F-35As that appeared Boeing and Embraer are expanding a four- at the Royal International Air Tattoo will not be dis- year-old cooperative agreement to jointly playing at Farnborough, and the visiting B models market and support the KC-390 tanker- will not perform a vertical landing: But, if its RIAT transport, providing a significant stimulus appearance last Friday was anything to go by, simply seeing the long-delayed, durably to the Brazilian multi-mission aircraft project controversial jet flying – and hovering – at the show will be enough to replace the skepti- and paving the way for greater sales of the cism that has surrounded the program with genuine and palpable excitement. aircraft as part of broader global defense campaigns. The two companies, which first forged Airbus A320neo links in 2012, say they will together “pursue Although not on static display here at Farnbor- new business opportunities, both for the ough, both versions of the re-engined Airbus A320neo are expected to perform a flypast – aircraft itself and for aircraft support and possibly on July 12.