Category Archives: General News and Airshow Reviews
Airline Debt to Balloon by 28% Heavy New Debt Levels Will Weigh Down Airline Recovery
Geneva – The International Air Transport Association (IATA) released analysis showing that the airline industry’s global debt could rise to $550 billion by year-end. That’s a $120 billion increase over debt levels at the start of 2020.
- $67 billion of the new debt is composed of government loans ($50 billion), deferred taxes ($5 billion) and loan guarantees ($12 billion).
- $52 billion is from commercial sources including commercial loans ($23 billion), capital market debt ($18 billion), debt from new operating leases ($5 billion), and accessing existing credit facilities ($6 billion).
Financial aid is a lifeline to get through the worst of the crisis without folding operations. But during the re-start period later this, the industry’s debt load will be near $550 billion—a massive 28% increase.
“Government aid is helping to keep the industry afloat. The next challenge will be preventing airlines from sinking under the burden of debt that the aid is creating,” said Alexandre de Juniac, IATA’s Director General and CEO.
In total governments have committed to $123 billion in financial aid to airlines. Of this, $67 billion will need to be repaid. The balance largely consists of wage subsidies ($34.8 billion), equity financing ($11.5 billion), and tax relief / subsidies ($9.7 billion). This is vital for airlines which will burn through an estimated $60 billion of cash in the second quarter of 2020 alone.
“Over half the relief provided by governments creates new liabilities. Less than 10% will add to airline equity. It changes the financial picture of the industry completely. Paying off the debt owed governments and private lenders will mean that the crisis will last a lot longer than the time it takes for passenger demand to recover,” said de Juniac.
Regional variations
The $123 billion in government financial aid is equal to 14% of 2019’s total airline revenues ($838 billion). The regional variations of the aid dispersion indicate that there are gaps that will need to be filled.
There are still large gaps in the financial aid needed to help airlines survive the COVID-19 crisis. The US government has led the way with its CARES Act being the main component of financial aid to North American carriers which in total represented a quarter of 2019 annual revenues for the region’s airlines. This is followed by Europe with assistance at 15% of 2019 annual revenues and Asia-Pacific at 10%. But in Africa, the Middle East and Latin America average aid is around 1% of 2019 revenues.
“Many governments have stepped up with financial aid packages that provide a bridge over this most difficult situation, including cash to avoid bankruptcies. Where governments have not responded fast enough or with limited funds, we have seen bankruptcies. Examples include Australia, Italy, Thailand, Turkey, and the UK. Connectivity will be important to the recovery. Meaningful financial aid to airlines now makes economic sense. It will ensure that they are ready to provide job-supporting connectivity as economies re-open,” said de Juniac.
The Impact of Debt
The kind of aid provided will influence the speed and strength of the recovery. IATA urged governments still contemplating financial relief to focus on measures that help airlines raise equity financing. “Many airlines are still in desperate need of a financial lifeline. For those governments that have not yet acted, the message is that helping airlines raise equity levels with a focus on grants and subsidies will place them in a stronger position for the recovery,” said de Juniac.
“A tough future is ahead of us. Containing COVID-19 and surviving the financial shock is just the first hurdle. Post-pandemic control measures will make operations more costly. Fixed costs will have to be spread over fewer travelers. And investments will be needed to meet our environmental targets. On top of all that, airlines will need to repay massively increased debts arising from the financial relief. After surviving the crisis, recovering to financial health will be the next challenge for many airlines,” said de Juniac.
Last week, the IATA Board of Governors committed to five key principles for the industry re-start. Among these are commitments to the safety and security of staff and travelers, to meeting the industry’s environmental targets and to being a meaningful driver of the economic recovery with affordable connectivity.
Leonardo AW159 Wildcat helicopter conducts first successful firings of Thales ‘Martlet’ Lightweight Multirole Missile (LMM)
Leonardo and Thales are proud to announce the first successful firings of the Thales ‘Martlet’ Lightweight Multirole Missile (LMM) from Leonardo’s AW159 Wildcat helicopter. The firings were conducted as part of the UK MoD’s Future Anti-Surface Guided Weapon (FASGW) programme and demonstrated the integration of the Martlet onto the AW159 platform. This represents a major milestone for the programme and will enable this high-end capability to enter service with the Royal Navy later this year.
The firing trials were conducted from 27th April to 21st May 2020 and despite the current COVID-19 situation, Leonardo and Thales were able to support the UK Ministry of Defence by completing this critical activity. All of the teams involved had to adopt strict distancing procedures, in some cases having to find new ways of working, in order to make sure that the trials could go ahead. It is a testimony to the professionalism of those involved that these trials were successfully completed under such challenging and novel circumstances.
“This major milestone demonstrates that the combination of the AW159 Wildcat and Martlet missile will be a flexible and effective tool for the Royal Navy. Next year the Wildcat fleet will embark on Carrier Strike Group missions with HMS Queen Elizabeth on its maiden operational deployment. As the only British company to design and manufacture helicopters on-shore, we’re extremely proud to be equipping the UK Armed Forces with world-beating sovereign capabilities.” said Nick Whitney, Managing Director of Leonardo Helicopters (UK).
“The successful live firings of the Thales LMM Martlet from the AW159 Wildcat is a key milestone in the programme, delivering a significant step-change in capability for the platform. LMM Martlet will ensure that the Wildcat has the best-in-class offensive capability to protect HMS Queen Elizabeth and her task group during her maiden operational deployment next year. With each platform capable of carrying up to 20 Martlet, the Wildcats deployed with the task group will be a significant deterrent to anyone wishing to interfere with UK interests.” said Philip McBride, General Manager, Integrated Airspace-protection Systems, Thales UK.
In July 2014, Leonardo signed a contract with the UK Ministry of Defence to integrate, test and install the MBDA Sea Venom (heavy) and Thales LMM (light) missile systems onto Royal Navy AW159 Wildcat helicopters, a programme called Future Anti Surface Guided Weapon (FASGW).
The FASGW (light) part of the programme has now seen the LMM, with its associated launcher and airborne laser guidance unit, successfully integrated into the Leonardo AW159 Wildcat sensor, displays and avionics systems. The LMM provides a step-change in capability for the Royal Navy which, in the maritime environment, faces a major challenge in engaging smaller, fast-moving, asymmetric threats, due to their high mobility, their small thermal and radar signatures and the severe background clutter encountered. The LMM is capable of surmounting these issues where traditional electro-optic and radar guidance systems do not provide the certainty of hit required.
On-board the AW159 Wildcat platform, the LMM Martlet could also allow operators to engage air targets such as UAVs and other maritime helicopters.
The launchers are mounted to the AW159 via the new Leonardo Weapon Wing, developed at the Company’s design and manufacturing facility in Yeovil and first trialled last year. Each weapon wing will be able to carry either ten Martlet or two Sea Venom missiles and generates additional lift for the helicopter in forward flight, reducing demands on the main rotor.
The twin-engine multi-role AW159 is able to conduct missions ranging from constabulary to high end warfighting where it has the capability to autonomously detect, identify and attack targets on land and at sea, including submarine threats. The high-performance platform has state-of-the-art systems, including a Leonardo Seaspray multi-mode electronically-scanning (E-scan) radar, and integrated electronic warfare Defensive Aids Suite (DAS).
Over 50,000 flight hours have been logged by the helicopter. The AW159 has also been chosen by the British Army, the Republic of Korea Navy and the Philippine Navy as a new maritime operator of the helicopter.
South African Airways Looks Forward To Resuming Domestic Service
JOHANNESBURG. 26 May 2020. South African Airways (SAA) is currently retaining its domestic schedule, as published between Johannesburg and Cape Town, with effect from mid-June 2020. Accordingly, SAA is focusing on ensuring operational readiness to resume flights once permissible.
This position will be reviewed on an ongoing basis.
At the same time, SAA is cancelling all planned scheduled flights on regional and international services until the end of June 2020 with immediate effect. This decision has been taken as a result of the continuing global impact of the Coronavirus pandemic. Many restrictive rules and regulations still apply to civil aviation across the world. On this basis, it is not yet possible to resume operations beyond South Africa’s borders in a sustainable manner.
“Everyone at SAA is looking forward to welcoming and serving our customers once again. Our operational preparedness is underlined by the significant role the airline has played in global repatriations to and from South Africa and by our desire to serve the domestic market,” stated Philip Saunders, SAA’s Chief Commercial Officer.
For those customers holding unused SAA tickets for these flights, there is no need to contact the airline at this time. All customers will be able to use their ticket’s full value as a credit for travel on any SAA service up to an including 24th March 2022. SAA will also permit a free name change if any individual customer no longer wishes to travel. This represents an important part of SAA’s continued commitment to support our customers in these unprecedented times.
SAA is committed to restart further operations on an incremental basis, and will regularly provide updates on progress.
Lockheed Martin Announces Proactive Measures to Mitigate COVID-19 Impacts to F-35 Production
F-35 Production Employees Will Temporarily Adjust Schedules to Sustain Aircraft Delivery
FORT WORTH, Texas, May 19, 2020 /PRNewswire/ — In response to previously reported COVID-19 F-35 supplier delays, Lockheed Martin (NYSE: LMT) is taking proactive measures to mitigate impacts and position the program for the fastest possible recovery by adjusting work schedules, maintaining specialized employee skillsets, and accelerating payments to small and vulnerable suppliers, to continue meeting customer commitments.
Today Lockheed Martin and the International Association of Machinists and Aerospace Workers (IAM) agreed to a temporary alternate work schedule for F-35 production line employees in Fort Worth to maintain their skilled workforce.
The new schedule, which will begin May 23, divides each shift into three groups. On a rotation, each group will work for two weeks and then will have a week off. During the adjusted three-week work schedule, employees who work 96 hours or more will be compensated an additional 24 hours for their off week while receiving full pay and benefits.
The alternate schedule allows Lockheed Martin to staff the production line to meet a slower workflow resulting from supplier delays. In addition, it provides a work rhythm that retains the expertise of the talented workforce and provides opportunities to adjust work to better support production.
“These are challenging times, but managing tough challenges is when the F-35 program performs at its best. The alternate work schedule maintains the specialized skillset of the employees and provides opportunities to for us to adjust our workflow to account for supplier delays due to COVID-19,” said Aeronautics Executive Vice President Michele Evans. “Our F-35 workforce is the best in the world at what they do, and we will continue to deliver on our customer’s mission.”
The temporary alternate work schedule agreement will continue for its first three-week cycle. The company will then evaluate business needs and can alter the schedule as needed with the option to discontinue as warranted or continue until Sept. 4. Lockheed Martin and the IAM have also agreed to allow employees to volunteer to be furloughed for 30 days where they maintain their benefits but forgo pay during this period.
Rolls-Royce Launches First-time Immersive Virtual Reality Training For Business Aviation Customers
Even during the COVID-19 pandemic, Rolls-Royce continues to ensure world-class support for our global customer base. As part of our IntelligentEngine vision we are further expanding the use of immersive Virtual Reality technology for customer training.
The latest addition to the remote training programme is an instructor-led distance learning course, providing a comprehensive overview of the construction, design and operation of the Rolls-Royce BR725 engine that powers Gulfstream’s current flagship G650 business aircraft family. After completion of this comprehensive two-day training course, participants will be able to service the engine and undertake non-routine maintenance.
Andy Robinson, SVP Customers and Services – Business Aviation, Rolls-Royce, said: “Rolls-Royce has been the leading engine supplier for business aircraft for more than two decades thanks to our continued commitment to the highest levels of service support. We are tremendously proud to have been voted number one in the latest Engine Product Support Services Survey of Aviation International News (AIN) by our operators.
Digitalisation plays a vital role in in bringing our IntelligentEngine vision to life; we use it to design, test and maintain our engines. This new immersive live Virtual Training tool is nothing short of a game-changer – it makes us the leader in technical training and allows customers to participate in the new training, wherever they are in the world. They just need an internet connection, and the required VR equipment, which will be shipped directly to their door,” Andy added.
Lee Bradshaw, Director of Technical Operations, Cox Aviation, said: “The new Virtual Reality maintenance course is a great example of the innovative thinking that is needed to meet the challenges of our ever-changing world. This programme allows each student to immerse themselves in an augmented environment full of realistic images, interactive functions and auditory feedback to delve deeper into the engine like never before. The course complements the industry-leading service already provided by Rolls-Royce and is another reminder of why this company is pioneering the way in creative solutions for the future.”
While not intended to completely replace practical training, Rolls-Royce see the value Virtual Reality adds for customers, such as higher flexibility and the elimination of the need to ship a full size training engine. The user finds themself as part of two realistic scenarios – the engine installed on the aircraft in a virtual hangar and the BR725 engine alone, just like it would be in our in-person training courses. The immersive environment allows them not only to watch the process steps to get familiar with the respective task, but to interact with the engine and the tools, and actually accomplish the task under the constant supervision of the instructor.
Where to enroll? https://rollsroycetraining.wufoo.com/forms/maj05r114g9sx7/
About Rolls-Royce Holdings plc
1. Rolls-Royce pioneers cutting-edge technologies that deliver clean, safe and competitive solutions to meet our planet’s vital power needs.
2. Rolls-Royce has customers in more than 150 countries, comprising more than 400 airlines and leasing customers, 160 armed forces, 70 navies, and more than 5,000 power and nuclear customers.
3. Annual underlying revenue was £15.3 billion in 2019, around half of which came from the provision of aftermarket services.
4. In 2019, Rolls-Royce invested £1.45 billion on research and development. We also support a global network of 29 University Technology Centres, which position Rolls Royce engineers at the forefront of scientific research.
5. The Group has a strong commitment to apprentice and graduate recruitment and to further developing employee skills.
At Cruising Altitude in 2019 and Prepared for Turbulence in the Future-Pilatus
Pilatus reported another very successful business year in 2019, exceeding the one billion mark yet again with turnover of approximately 1.1 billion Swiss francs. Operating income totalled 153 million Swiss francs, incoming orders amounted to 1.1 billion Swiss francs. Pilatus staff enjoyed a share in this success with a generous bonus payout – even in the current difficult economic climate.
2019 will go down in the company’s 80 year history as another very successful twelve months overall. The figures were very similar to those reported in 2018. Total aircraft deliveries came in at 134 – 83 PC-12 NGs, 40 PC-24s and 11 PC-21s – the most extensive production programme yet.
Successful PC-24 market launch
The market rollout of the brand-new PC-24 is now complete and Pilatus has well and truly left the build-up phase. 75 PC-24s have been delivered to date and are in use on every continent. The PC-24 with the most hours in the air has already flown over 1,800 hours. The order book re-opened in May last year and demand for the world’s unique Pilatus Super Versatile Jet remains as high as ever. The PC-24 has won prestigious new clients such as Volkswagen and KSA, the Swedish air ambulance service – important milestones in a programme which is still young as yet.
A comprehensive post-certification test campaign was performed in 2019 to have the Super Versatile Jet approved for operations on rough field runways and in other conditions. All PC-24s are now authorised for use on wet and snow-covered unpaved and grass runways. In the same vein, other PC-24 product improvements have been made to eliminate initial teething problems and provide customers with extra added benefits.
Excellent response to the PC-12 NGX
Pilatus launched the PC-12 NGX in autumn 2019: compared to its predecessor, this further development of the world’s best-selling single-engine turboprop in class now boasts an improved engine, smarter avionics and a completely re-designed cabin with larger windows. The new PT6E-67XP engine by Pratt & Whitney Canada is particularly impressive: its electronic propeller and engine control system is a worldwide first in this market segment. After obtaining certification in 2019 and making appropriate changes to the production line, the market launch generated a large number of orders. This month saw the first customers take to the skies aboard their new NGXs.
Major PC-21 order from Spain
Finalised in 2019 and signed in January 2020, the PC-21 order from Spain is a very important step in securing future operations. From 2021 onwards, Pilatus will deliver a total of 24 PC-21s to the Spanish Air Force, the Ejército del Aire. Spain is the third European air force to opt for this Next Generation Trainer. If the General Aviation Division is indeed heavily impacted by the current economic difficulties, this order will prove essential for Pilatus in terms of providing sufficient activity for the workforce and continued business success for the company. It also demonstrates the importance of the two-pillar strategy – civilian and military business – in guaranteeing future economic viability.
Pilatus delivered the last of a total of 49 PC-21s to the Royal Australian Air Force in November 2019. This delivery – the final one for the time being – brings the worldwide fleet of PC-21s up to a total of 211 aircraft. An impressive figure indeed, and proof that the PC-21 is now the world’s most modern, most efficient training system.
Employee profit-sharing – nothing changes
At 2,289 the number of full-time jobs across the Pilatus Group increased slightly in 2019. The very good figures for the year deliver the most effective means of thanking Pilatus employees: from apprentice through to senior manager, all employees received their personal share in the profits for 2019 as usual. This year’s bonus, paid in April 2020, is equivalent to almost 1.5 times the respective monthly salary. This performance-related employee profit-sharing model is contractually agreed with the company’s own Workforce Committee and has been in place for over 25 years.
Turbulent times in 2020
Pilatus started the year with orders worth over two billion Swiss francs, not including the major order from the Spanish air force. But the corona crisis is bound to leave its mark, and the promising outlook of the early weeks of the year has had to be revised downward. Pilatus was quick to take appropriate countermeasures, including the introduction of short-time work for large numbers of staff. In the meantime, fewer than 20 percent of employees are still affected by this measure. Supply chains remain disrupted, necessitating continuous reassessment of the situation.
Oscar J. Schwenk on 2019 and the future
Oscar J. Schwenk, Chairman of Pilatus, commented on the annual results as follows: “I am very pleased with our performance in 2019. I note, however, that the corona pandemic has pitched us – and many others – into a period of severe turbulence requiring constant fact-based readjustment of our chosen heading. Every pilot learns how to make the all-important corrections to flight path and altitude. We are doing exactly, reverting to the basics, as taught from the first hours of flight instruction – encompassed in the term good airmanship: aviate, navigate, communicate. In other words, retain control of the business, apply an analytical approach to problems and, finally, define a fact-based plan of action and communication.
Under the leadership of CEO Markus Bucher, I have always tailored my management style to economising during the good times in preparation for the challenges of the future, all the time keeping our feet firmly on the ground – all entrepreneurs know that healthy liquidity comes before everything else! Specifically, that means paying realistic salaries, monitoring fixed costs at all times and distributing profits with prudence. Happily, our investors have supported this sustainable corporate strategy – one which we have deliberately kept free of external loans – for years.
We are not the only ones having to tighten our belts. In a situation which no one could have foreseen, it is reassuring to know that the financial reserves set aside in the past will ensure we are able to navigate the current crisis in preparation for a clean landing and a renewed take-off into the future, together. In the final instance, our business success benefits everyone!”
Gulfstream G700 Development Accelerates
SAVANNAH, Georgia, May 8, 2020 — Gulfstream Aerospace Corp. today announced the second and third all-new Gulfstream G700™ test aircraft have taken flight, further advancing toward certification and customer deliveries of the industry’s new flagship.
The second G700 flight-test aircraft had its first voyage on March 20, departing Savannah/Hilton Head International Airport (SAV) and flying for 2 hours and 58 minutes. The aircraft reached an altitude of 45,000 feet/13,716 meters and a speed of Mach 0.85. Also departing from SAV, the third flight-test aircraft flew for the first time today, soaring over Savannah for 3 hours and 2 minutes. It also reached an altitude of 45,000 ft/13,716 m and a speed of Mach 0.85.
“The G700 flight-test program is running very well, a reflection of the extensive testing we conducted in our ground labs,” said Mark Burns, president, Gulfstream. “All three flight-test aircraft are performing exactly as we expected them to, and that helps us ensure a safe and thorough certification of the highest performing, most spacious and technologically advanced aircraft in business aviation.”
The three flight-test aircraft have flown more than 100 hours since the program’s first flight on Feb. 14. The G700 has reached a maximum altitude of 54,000 ft/16,459 m and a maximum speed of Mach 0.94.
The current flight-test aircraft are being used for envelope expansion, flutter testing, flying qualities and flight control, as well as mechanical systems, flights into known icing and environmental control systems, among other tests.
The G700 features the longest, widest and tallest cabin in the industry with 20 Gulfstream panoramic oval windows and up to five living areas, along with an ultragalley with more than 10 feet of counter space and a crew compartment or passenger lounge; a master suite with shower; and the industry’s only ultrahigh-definition circadian lighting system.
The G700 is powered by Rolls-Royce Pearl 700 engines and can fly at its high-speed cruise of Mach 0.90 for 6,400 nautical miles/11,853 kilometers or at its long-range cruise of Mach 0.85 for 7,500 nm/13,890 km. The G700 also includes the Gulfstream Symmetry Flight Deck™ with the industry’s only electronically linked active control sidesticks; the most extensive use of touch-screen technology in business aviation; and Gulfstream’s award-winning Predictive Landing Performance System.
M-345: Leonardo’s new jet trainer certified and ready for the global market
- The DAAA (Directorate for Air Armaments and Airworthiness), the certification Authority of the Italian Ministry of Defence, has given the initial certification for Leonardo’s new M-345 trainer
- Leonardo’s new M-345, close to entering into service with the Italian Air Force, and future aircraft of the Italian Airforce acrobatic team Frecce Tricolori, is an aircraft capable of providing jet trainer aircraft-like performance and efficiency at the cost of a turboprop
- The initial certification of the M-345 is the result of intense in-flight and on-ground test activities – which total almost 200 flights, carried out also thanks to the collaboration with the Italian Air Force, aimed at assessing aircraft and equipment compliance with stringent performance and safety standards
Leonardo is pleased to announce that the DAAA (Directorate for Air Armaments and Airworthiness), the Italian Ministry of Defence’s Certification Authority, has issued the “Initial Certification” for Leonardo’s new M-345 training aircraft. This important achievement for the M-345 programme is the result of intense activities with two hundred dedicated flights logged alongside the critical support of the Italian Air Force’s Flight Test Centre, 61st Wing and 10th Aircraft Maintenance Unit.
Lucio Valerio Cioffi, Managing Director of Leonardo Aircraft Division, commented: “The achievement of the Initial Certification for the M-345 – unique in its segment for acquisition and operational costs – confirms the aircraft features excellent characteristics and capabilities and makes it available for the international market. This result stems from a consolidated collaboration between the industry, the Certification Authority and the Italian Air Force under a full national effort and embodies the heritage in training excellence which is widely acknowledged to the Italian Armed Forces.”
The Initial Certification of the M-345 marks the first case of enforcement of the new AER (EP) P-21 rule for a fixed-wing aircraft. This rule adopts the European EMAR-21 – (European Military Airworthiness Requirements) – a stringent international certification requirement that will also be beneficial to the export of the aircraft.
The M-345, thanks to its performance and advanced integrated training system provides the Air Force with a significant improvement in training effectiveness greater efficiency and a strong operating cost reduction. The new aircraft, designed to meet basic and basic/advanced training needs, will complement the M-346s used for the advanced phase of pilot training and, in the framework of the “International Flight Training School” project, will support the reinforcement and internationalisation of the training offer launched by Leonardo in partnership with the Italian Air Force.
The Integrated Training system based on the M-345 confirms Leonardo’s world technological leadership in training pilots allocated to current and future generation aircraft, benefiting from the experience and technology already developed for the M-346, including the “Live Virtual Constructive” capability. This allows the integration of the in-flight aircraft with simulated “friend” or “foe” elements, allowing the future pilot to be exposed to the complexity of every possible operational scenario.