September 7, 2017 - No. 070 In This Issue United Technologies' Blockbuster Forges Do-It-All Aviation Giant China Aviation Expo highlights homegrown high-end products, technology PROS Selects Aviation Festival London to Outline Offer Optimization Vision New swarming drone technology could help find lost hikers, study wildlife Satcom Direct (SD) Activates First Brazilian Aircraft with Jet ConneX Vector Aerospace Hosts Canada-Texas Business Roundtable at its Grapevine (DFW) Facility New Saudi MRO Goes Live With Ramco ERP Suite GE Aviation's $110M jet-engine factory on path to employ 230 by 2019 Jetstar Tightens Tire Checks After Boeing 787 Flap Failure SpaceX to Launch Secret Spy Craft Mission United Technologies' Blockbuster Forges Do-It-All Aviation Giant United Technologies Corp. agreed to buy Rockwell Collins Inc. for about $23 billion, giving rise to an aerospace behemoth that can outfit jetliners and warplanes from tip to tail. The deal, one of the biggest in aviation history, creates an aircraft-parts giant better positioned to withstand the squeeze from planemakers Boeing Co. and Airbus SE for pricing discounts and higher output. The company will boast a broad suite of products for airplanes, from Rockwell Collins's touchscreen cockpit displays to United Technologies's Pratt & Whitney jet engines. "The combination gives us the ability to both scale and innovate," Greg Hayes, chief executive officer of United Technologies, told analysts on a conference call Tuesday, a day after the deal was announced. "This will be good for our customers, it will be good for the industry because it gives us the scale to do things we couldn't do on our own." Rockwell Collins shareholders will receive $140 a share in cash and stock, the companies said in a statement Monday after weeks of behind-the-scenes negotiations. The price represents an 18 percent premium to Rockwell Collins's closing level on Aug. 4, before Bloomberg News reported on the talks. Market Reaction Investors reacted with caution, pushing United Technologies down as much as 3.6 percent, the most intraday in almost six months and the biggest drop on the Dow Jones Industrial Average. The shares fell to $113.67 at 10:19 a.m. in New York, while Rockwell Collins climbed less than 1 percent to $131.58. United Technologies said it plans to finance the cash portion of the deal with about $14 billion of new debt. Moody's Investors Service placed the company's ratings on review for downgrade, saying United Technologies may have to increase its "reliance on inherently uncertain earnings growth to moderate leverage." Moody's currently has an A3 senior unsecured debt rating and Baa1 junior subordinated debt rating for United Technologies. With the acquisition, valued at $30 billion including the assumption of debt, United Technologies is increasing its bet on commercial-aircraft systems, where it has stumbled recently with the rocky rollout of a new jet engine that cost $10 billion to develop. The aerospace market accounts for about half of sales at the Farmington, Connecticut-based manufacturer, with the rest coming from elevators, air conditioners and other building systems. "This is a significant deal for UTC and the aviation industry in general," Hans Weber, president of San Diego-based consultancy Tecop International Inc., said in an email. By buying Rockwell Collins, which delivers avionics systems for the U.S. planemaker's 787, "UTC becomes a critically important supplier to Boeing and will have a strong negotiating position as Boeing is putting price pressure on suppliers." United Technologies plans to combine its aerospace business with Rockwell Collins in a new unit named Collins Aerospace Systems. Rockwell Collins CEO Kelly Ortberg will head the division, while Dave Gitlin, who currently runs UTC Aerospace Systems, will serve as president and chief operating officer. The buyer expects the acquisition to add to adjusted earnings after the first year following closing, and generate $500 million or more in annual pretax savings and other benefits by the fourth year. The deal is expected to close by next year's third quarter, subject to regulatory and shareholder approval, and other customary conditions. United Technologies opted for a mix of cash and stock with the goal of maintaining a strong credit rating, the company said. Chief Financial Officer Akhil Johri said United Technologies would suspend its share repurchase plans for the next few years. Industry Dealmaking Rockwell Collins, based in Cedar Rapids, Iowa, is already absorbing the largest acquisition in its history. The company earlier this year closed the purchase of B/E Aerospace, adding deluxe jetliner seats, lavatories and galley equipment to a lineup of high-technology avionics products. That deal was valued at $8.6 billion including the assumption of debt. Consolidation is necessary for the aerospace-parts manufacturers, said Shukor Yusof, founder of aviation consultation Endau Analytics. Given that the industry remains fragmented, the deal isn't likely to encounter regulatory hurdles, he said. When Hayes took the United Technologies helm in 2014, he pledged to consider major moves, including deals potentially in excess of $20 billion. The company sold its Sikorsky helicopter business to Lockheed Martin Corp. for $9 billion in 2015. Hayes rejected a merger proposal in early 2016 from Honeywell International Inc., saying he didn't believe antitrust regulators would have approved the $90 billion tie-up. Honeywell later abandoned the bid. The Rockwell Collins transaction tops United Technologies' own $18 billion purchase of Goodrich Corp. in 2012. Billionaire Warren Buffett's Berkshire Hathaway Inc. last year completed the acquisition of Precision Castparts Corp., a metals fabricator that produces parts for aerospace suppliers, for $37 billion including debt. Manufacturer Pressure Accelerated industry consolidation comes as suppliers face pressure from airframe manufacturers to reduce costs and boost production rates to support faster output of narrow-body jetliners such as Airbus's A320 and Boeing's 737. The U.S. planemaker is also treading onto its suppliers' turf with new businesses dedicated to spare parts and services, as well as avionics. Rockwell Collins has a customer base that spans the world's largest airlines, airports and private-jet operators. Those clients, combined with the company's catalog of avionics and aircraft-cabin equipment could help insulate the merged company from Boeing's expansion into aftermarket sales and services, Douglas Rothacker and Joel Levington of Bloomberg Intelligence said in a report before the deal was announced. Airbus issued a veiled warning to United Technologies to not let empire building get in the way of critical deliveries for the French planemaker. The U.S. company supplies the Airbus A320 family of aircraft with its GTF engines, which have been dogged by technical glitches that have weighed on deliveries of the updated version of Airbus's best-selling model. "Our total focus is on delivering planes, and we hope that this M&A would not distract UTC from their top operational priority," Airbus said by email. Storied Companies The United Technologies-Rockwell Collins deal would combine two storied companies with roots in the early days of the U.S. aviation industry. Arthur Collins founded the eponymous short-wave radio company in 1933. Collins Radio made its mark serving a South Pole expedition by Rear Admiral Richard Byrd, also expanding into airplane communications and eventually into space as a supplier to the Mercury, Gemini and Apollo missions. The acquirer is a descendant of the United Aircraft and Transport Corp., a conglomerate formed by Boeing founder William Boeing and Pratt & Whitney's Frederick Rentschler. Trust busters in 1934 broke up the company, which included Boeing, Pratt and United Airlines. Few Hurdles Hayes said he doesn't see any insurmountable hurdles to closing the deal. Concessions are often required where regulators spot overlaps between companies that might allow them to squeeze rivals or customers. United Technologies won European Union approval to buy Goodrich only after an extended 2012 probe into antitrust concerns. The companies allayed regulatory worries by selling Goodrich units for electrical power generation and small-engine controls and giving Rolls-Royce Holdings Plc the option to buy a Goodrich fuel nozzle research project. United Technologies and Rockwell Collins have little overlap in products, analysts said. "Although we expect scrutiny from regulators we fully expect this deal to close," Jeff Sprague, an analyst with Vertical Research Partners, said in a note. Morgan Stanley served as financial adviser to United Technologies, while Wachtell, Lipton, Rosen & Katz provided legal advice. JPMorgan Chase & Co. and Citigroup Inc. were financial advisers to Rockwell Collins, and Skadden, Arps, Slate, Meagher & Flom handled legal advisory services. https://www.bloomberg.com/news/articles/2017-09-04/united-technologies-is-said-in-deal-to-buy- rockwell-collins Back to Top China Aviation Expo highlights homegrown high-end products, technology BEIJING, Sept. 6 (Xinhua) -- The domestically-developed jumbo jet C919, aircraft engines and other high-end aviation products will be highlighted at Aviation Expo China 2017 in Beijing from Sept. 19 to 22, the event organizer said Wednesday. The expo will be held at China National Convention Center and is being jointly organized by Commercial Aircraft Corp. of China (COMAC), Aero Engine Corporation of China (AECC) and China Promotion Ltd. COMAC will display the Chinese-developed large passenger jet C919, new regional jet ARJ21, and a wide-body passenger jet, which will be jointly built by China and Russia. The C919 achieved a successful maiden flight on May 5 this year, and has moved to the next phase of further testing and test flight missions, according to COMAC. The wide-body passenger jet program is currently in the preparation phase of the proposal, after the joint venture China-Russia Commercial Aircraft International Co., Ltd (CRAIC) was set up on May 22 this year. The newly-established AECC will display its achievements in aircraft engines, gas turbines, and graphene material and high precision aluminum alloy technologies, it said. The AECC was set up in Beijing on Aug. 28, 2016 to accelerate independent research, development and manufacturing of aircraft engines and gas turbines. Founded in 1984, China Aviation Expo was China's first professional aviation expo. This year it has attracted more than 300 exhibitors from 14 countries and regions, with eight national pavilions, including Russia, Ukraine, Italy and Australia. http://news.xinhuanet.com/english/2017-09/06/c_136588891.htm Back to Top PROS Selects Aviation Festival London to Outline Offer Optimization Vision HOUSTON & LONDON--(BUSINESS WIRE)--PROS® (NYSE: PRO), a cloud software company powering the shift to modern commerce, today announced plans to share its vision for the future of the travel industry at the Aviation Festival London. PROS leaders will showcase how companies can compete against the rapid rate of change and dramatic shifts that are reshaping the travel industry landscape. More than 2,000 people are expected to attend the London conference, which is scheduled for Sept. 6-8 at the Business Design Centre. The Aviation Festival London is one of the largest and most established aviation and travel technology shows in the world. The event covers a range of topics including technology, industry trends and thought leadership across sales, distribution, revenue management and travel experience. "Passenger airlines and travel companies are undergoing digital transformations, driven by customers who are looking for personalized, frictionless buying experiences," said PROS Senior Vice President for Strategy Surain Adyanthaya. "Powered by PROS machine learning and cognitive-based artificial intelligence, these organizations will be able to deliver personalized and expanded offers that drive loyalty and growth. We look forward to discussing what we see as the future of the industry and how - with our own expanded single-solution shopping, merchandising and revenue management capabilities - PROS is enabling customers to compete and win in this rapidly changing travel technology landscape." PROS Presentations Three presentations at the conference feature PROS executives: * How Modern Commerce is Reshaping Airlines - from Revenue Management to Shopping and Merchandising: As customers demand new ways to shop and purchase air fares - and related products and services - the airline industry is searching for technologies capable of accommodating these requirements through personalized, real-time and omnichannel experiences for shopping, merchandising and revenue management. Adyanthaya will host a workshop where airlines can discuss PROS holistic approach that combines all three in a single offer optimization solution. He will lead an interactive conversation on adopting dynamic pricing, aligning with the industry's New Distribution Concept (NDC) initiatives and integrating Internet Booking Engines (IBEs) into revenue and offer creation. * How will Dynamic Pricing & Cognitive Science Power Airline Modern Commerce? In this presentation, Adyanthaya will showcase dynamic pricing and cognitive algorithms as the strategic levers for customer-centric distribution, accompanied by a roadmap with real-world views into how companies are using the technologies to drive loyalty and growth. * Goodbye PSS, Hello Retailing: Are we heading toward a new era in airline distribution technology?: A select panel of industry leaders, including Eric Dumas, president of Vayant Travel Technologies - a company recently acquired by PROS - will join a panel hosted by Atmosphere Research Group Principal Henry Hartveldt. Dumas, together with representatives from Emirates, Turkish Airlines, Lufthansa and Skyscanner, will discuss the emergence of artificial intelligence and machine learning, the future of distribution technology and the forthcoming IATA One Order initiative and its impact on the modernization of passenger systems. To learn more, visit the PROS website or follow PROS on Twitter at @PROS_Inc. About PROS PROS Holdings, Inc. (NYSE: PRO) is a cloud software company powering the shift to modern commerce by helping companies create personalized and frictionless buying experiences for their customers. Fueled by dynamic pricing science and machine learning, PROS solutions make it possible for companies to price, configure and sell their products and services in an omnichannel environment with speed, precision and consistency. Our customers, who are leaders in their markets, benefit from decades of data science expertise infused into our industry solutions. To learn more, visit pros.com. http://www.businesswire.com/news/home/20170906005715/en/PROS-Selects-Aviation-Festival- London-Outline-Offer Back to Top New swarming drone technology could help find lost hikers, study wildlife CU Boulder researchers have developed an advanced drone "swarming" technology that allows a single operator to control multiple unmanned aircraft for a variety of tasks, which could include searching for lost hikers or studying wildlife. The CU Boulder team spent three weeks in August on the project at the Pawnee National Grassland near Greeley, Colorado, using the first-ever approval by the Federal Aviation Administration (FAA) to conduct flights with a single pilot managing multiple aircraft. The purpose of the technology is to locate moving radio beacons and follow them, said Associate Professor Eric Frew of the Ann and H.J. Smead Aerospace Engineering Sciences, who is leading the project. "This new approval and new capability allows CU Boulder to continue its leading role in the development of autonomous unmanned aircraft systems," said Frew. "Future drones will be able to fly autonomously, with minimal human oversight, by cooperating with other aircraft to perform a wide variety of missions safely and efficiently." CU Boulder researchers are working with Colorado Parks & Wildlife, Boulder County Parks and Open Space and several other partners on the project, said Frew. The new technology could be used to help find beacon-toting hikers lost in the mountains or track imperiled wildlife. As part of the project, CU Boulder obtained a Certificate of Waiver or Authorization (COA) from the FAA that allows one pilot to fly up to 30 aircraft at one time. Typical approval by the FAA requires every drone to have its own pilot and one observer who is responsible for watching out for other air traffic, said Frew. "The new COA allows for a 'zone defense' where the visual observers monitor the edge of the flight environment without having to monitor individual aircraft," said Frew, who also directs CU Boulder's Research and Engineering Center for Unmanned Vehicles (RECUV). "This is an example of what we call 'beyond-visual-line-of-sight,' an important capability for the drone industry." Unlike previous examples of multiple drones flying together, such as Lady Gaga's pre-taped Super Bowl show, the CU Boulder approval means it can be can be used repeatedly in the U.S. National Airspace System, said Frew. The project is an international collaboration with the Korean Advanced Institute of Science and Technology, a public research university located in Daejeon, South Korea. "Our teams have been working together over the past two and half years to develop the algorithms and software to make this system work," said Steve Borenstein, lead engineer on the project and pilot for the CU Boulder team. The Korean team has been developing control algorithms to coordinate the aircraft, while the CU Boulder team is responsible for implementing the algorithms and flying the aircraft. As part of the project, CU Boulder graduate students are also creating new software that allows the aircraft to track the position of individual radio beacons. The CU research team is part of the Integrated Remote and In Situ Sensing (IRISS) initiative within the CU Boulder Grand Challenge. Launched in September 2014, the Grand Challenge is a response to President Obama's nationwide call to action for companies, research universities, foundations and philanthropists to seek solutions to the pressing problems facing our world today. IRISS includes a multi-disciplinary team that leads the design, development and deployment of novel remote and on-site sensing systems that use the mobility of aerospace systems to aid in data collection from the ground, atmosphere and space. http://www.colorado.edu/today/2017/09/06/new-swarming-drone-technology-could-help-find-lost- hikers-study-wildlife Back to Top Satcom Direct (SD) Activates First Brazilian Aircraft with Jet ConneX São Paulo, Brazil / 5 September 2017 - Following hard on the heels of LABACE, the business aviation connectivity company Satcom Direct (SD) has become the first service provider to activate the Inmarsat Jet ConneX technology for a Brazilian registered executive aircraft. The privately owned Gulfstream G650, based in São Paulo, will begin using the service in September. The activation of the Jet ConneX, Ka-band technology will enable passengers and crew to maximize high-speed data transfers to support a variety of functionality. Live video and TV streaming, WiFi internet capability across multiple personal devices, video conferencing, as well as voice and text services, will all be available, across the globe. The always-on connectivity is provided through the on-board Satcom Direct Router, SDR™ which maximises the cabin's connection to the Inmarsat Global Xpress satellite network. The SDR also facilitates the use of SD value-added technologies, providing increased control and functionality of the cabin Wi-Fi network. "Jet ConneX means you'll never miss a football match, an important email or a Facetime call from your family while in the air. We understand how important it is to have a reliable internet connection and following this, our first South American activation, we anticipate there will be more to follow as the region's executive aviation market continues to develop." said Ewerton Libanio, Managing Director of SD Brazil. SD was one of the first companies to activate the Jet ConneX service for business aviation customers over the entire Global Xpress (GX) network in June 2016. Jet ConneX is the only globally available, high-speed internet solution available today for business jets. http://www.aviationpros.com/press_release/12365143/satcom-direct-sd-activates-first-brazilian- aircraft-with-jet-connex Back to Top Vector Aerospace Hosts Canada-Texas Business Roundtable at its Grapevine (DFW) Facility Grapevine, TX - Vector Aerospace (www.vectoraerospace.com), a global independent provider of aviation maintenance, repair and overhaul (MRO) services, recently had the honour of hosting a Texas Trade Mission roundtable discussion at its Grapevine, TX, facility involving participants from the Canadian Chamber of Commerce, the Canadian Trade Commissioner Service, local businesses and media. The roundtable was part of a Canadian Chamber of Commerce outreach mission to Texas, highlighting the $35 billion trade relationship that exists between Canada and the Lone Star State. Bombardier, CAE and Vector Aerospace are some of the many Canadian companies creating local jobs and investments in Texas. The mission was organized in association with the U.S. Chamber of Commerce and the Texas Association of Business, and involved a series of visits to relevant companies in Dallas-Fort Worth and Austin. Distinguished guests attending the roundtable discussion at Vector's Grapevine facility included Canadian Chamber of Commerce President and CEO the Hon. Perrin Beatty. "Like the 617,200 Canadians who travel to Texas each year, we've been met with hospitality everywhere we go. Some Texans were surprised to learn about the deep Canadian connection to their communities, including the half-million jobs in the state that depend on Canada-US trade and investment," Mr. Beatty said. "It is so great to see the Canadian Chamber of Commerce put a focus on Texas and the Dallas/Fort Worth area," RaDonna Hessel, President and CEO, Grapevine Chamber of Commerce stated. "We have a large aerospace focus here with strong international ties and are so proud to have Vector Aerospace - a strong global company - right here in Grapevine. We applaud their efforts to strengthen international relationships through discussions and engagements like this." Attendees also included local DFW representatives from Bell Helicopter, Bombardier Aerospace, Mainfreight USA and SAFRAN Helicopter Engines, as well as representatives from the Canadian Consulate office located in Dallas, TX. Following the roundtable discussion, John Seidl, Vice President of Global Operations, led the Canadian delegation, distinguished guests and media on a tour of Vector's Grapevine facility. The location, which opened in 2011, proudly supports the Pratt & Whitney Canada (P&WC) PT6A, JT15D and PW100 series of engines, as well as the Rolls-Royce M250 turboshaft. http://www.aviationpros.com/press_release/12365112/vector-aerospace-hosts-canada-texas- business-roundtable-at-its-grapevine-dfw-facility Back to Top New Saudi MRO Goes Live With Ramco ERP Suite A newly established Saudi Arabian maintenance, repair and overhaul company has implemented Ramco Systems' enterprise resource planning (ERP) software suite system for its maintenance and engineering management and supply-chain/logistics planning, as well as finance and human- resources functions. Saudi Rotorcraft Support Co. signed a five-year agreement with Ramco Systems, a global provider of aviation software on cloud and mobile platforms, in early April 2017. That pact came just as the Riyadh-headquartered MRO began operations aimed at supporting mission-critical capabilities for Saudi Arabia's military and commercial helicopters. "Helicopter engineering has advanced significantly in recent decades to include use of composites and higher usage of technology, including avionics," Ramco CEO Virender Aggarwal said. "However, MRO support services have tended to lag in this development. With the rapid growth of rotary-wing aircraft in the Middle East, the need to accelerate R&D to solve urgent challenges is acute." A joint venture company formed in 2015 by Alsalam Aerospace Industries, Boeing and Saudia Aerospace Engineering Industries, Saudi Rotorcraft Support says it can work on more than 360 helicopter types produced by six aircraft OEMs and powered by six engine manufacturers. Saudi Rotorcraft Support positions itself as part of the Kingdom of Saudi Arabia's National Transformation Program and the related effort to transform the country under what is called Vision 2030, said the company's CEO, Neil Bevan. A former leader of Boeing Defence UK's Chinook Modifications and Upgrades, Bevan was named CEO in June. Saudi Rotorcraft Support "aligns with these Vision 2030 objectives, particularly in the areas of localizing defense, attracting talent and creating opportunities for all," he said. Ramco's software "has given us a technical backbone that will help us digitally address the MRO requirements in this growing market." Offshore oil and gas operations in the Persian Gulf and Arabian Sea, combined with the region's many high-net-worth individuals and ongoing military tensions, make the Arabian Peninsula one of the world's most valuable and influential helicopter markets. Saudi Rotorcraft Support estimates there are more than 300 helicopters in Saudi Arabia, flown by nine operators. After staff initial training in Chennai, India, Saudi Rotorcraft Support and Ramco said, they completed a one-month implementation and training period in Riyadh. Systems implementation, as well as user acceptance testing and training of "user champions," employees and managers, followed that. Saudi Rotorcraft Support saw "Go-Live" implementation Aug. 27. In addition to Ramco's mobile-friendly aviation maintenance, maintenance and engineering and MRO sales modules, Saudi Rotorcraft Support plans to implement the software company's complete finance, human resources and payroll programs with the objective of getting an integrated view of its business operations. Ramco's Aviation Suite V5.8 is aimed at digitizing and streamlining Saudi Rotorcraft Support's operations and aircraft management processes across its operations. Other functions include continuing airworthiness management organization, materials management and quality and safety. Their pact also calls on Ramco to work closely with Saudi Rotorcraft Support to research and develop additional customized applications and intellectual property at its Ramco Aviation Design and Analytics Research Lab in Singapore. Ramco set up that engineering lab in early 2016 to develop advanced aviation information technology solutions (such as wearable devices for ground mechanics and drones to inspect aircraft on the tarmac), with Air France Industries KLM Engineering & Maintenance as an anchor partner. The lab's creation was supported by the Singapore Economic Development Board. http://www.aviationtoday.com/2017/09/06/new-saudi-mro-goes-live-ramco-erp-suite/ Back to Top GE Aviation's $110M jet-engine factory on path to employ 230 by 2019 LAFAYETTE-Employees at GE Aviation's new jet engine assembly and overhaul facility here don't lack for elbow room. The size of the current workforce-87-is dwarfed by the 300,000-square-foot facility. Several work stations stand empty, not yet called into service. Someone so inclined would have space to turn cartwheels across the polished concrete floor. But if the $110 million factory ramps up as the company expects, it won't stay this roomy for long. The facility, which opened in September 2015 with 21 employees, produces about six engines a week. The goal is to increase staffing and production to a workforce of 230 by 2019 and five engines a day by 2020. GE Aviation's optimism rests on a couple of factors: The facility-along with factories in Durham, North Carolina, and France-produces the LEAP, a brand-new engine with a backlog of more than 14,000 orders. And, bolstered by low fuel prices and strong passenger traffic, the airline industry in general is on a roll. Airlines are ordering new planes so they can retire older aircraft, increase the size of their fleet, or both. "It's snowballing forward in a positive way, which is what makes aviation right now so exciting," said Eric Matteson, the site leader for GE Aviation's Lafayette plant. "People are flying again." The LEAP engine, which stands for Leading Edge Aviation Propulsion, is produced by CFM International, a 50/50 joint venture between Connecticut-based General Electric Co. and France- based Safran Aircraft Engines. CFM launched the LEAP program in 2008, as a more fuel-efficient replacement for CFM56 engines. The first LEAP engines went into service last year. The LEAP-1A powers the Airbus A320 NEO family of aircraft. In July 2016, Turkey-based Pegasus Airlines became the first airline in the world to take delivery of aircraft powered by these engines. The first U.S.-based airline to take delivery of LEAP-1A-powered aircraft was Denver-based Frontier Airlines, in October. The LEAP-1B powers the Boeing 737 MAX family of aircraft. In May 2017, Malaysia-based Malindo Air became the first airline in the world to take delivery of LEAP-1B-powered planes. Lafayette assembles LEAP-1A engine cores, then sends them to France for final assembly at a Safran plant in a Paris suburb. It also assembles complete LEAP-1B engines that it ships directly to Boeing in Seattle. In the future, the Lafayette facility will also assemble LEAP-1C engine cores for the Comac C919, a yet-to-be-launched Chinese aircraft that's in flight testing and verification. Lafayette is getting into the game at a time of high demand for this type of engine. LEAP engines are built to power single-aisle commercial aircraft, and both Boeing and Airbus say they see strong demand for this size of plane in the years ahead. In its annual Current Market Outlook report, released in June, Boeing said the industry will need 41,030 new airplanes through 2036, mostly single-aisle. "The single-aisle segment will see the most growth over the forecast, fueled by low-cost carriers and emerging markets," the report said. "29,530 new airplanes will be needed in this segment, an increase of almost 5 percent over last year." In its own annual forecast, also released in June, Airbus offered a similar outlook. The manufacturer said it foresees a need for 34,900 passenger and freight aircraft by 2036. Of this number, Airbus says, 24,810 will be single-aisle planes. The Asia-Pacific region will take 41 percent of deliveries during that period, Airbus predicts, fueled by emerging markets like China and India, where air travel will expand as disposable-income levels increase. Local game plan The Lafayette plant currently focuses nearly entirely on engine assembly. But that will shift in years to come. The facility's maintenance/repair area, which is mostly quiet now, will rev up starting around 2020, when the first wave of LEAP engines will need scheduled overhaul work-at about 10,000 flights, Matteson said. Having production and maintenance under roof helps ensure the facility's relevance for decades to come, even after new LEAP engines are no longer being built. (Safran plants in Saint-Quentin, France, and Brussels, Belgium, also handle LEAP maintenance and repair, but GE's North Carolina plant does not.) "I think it provides more sustainability long term," said Ryan Metzing, executive director of the Indianapolis-based Indiana Aerospace and Defense Council. "That's a stream of business that now keeps the facility relevant and successful." This part of the Lafayette operation should likely create opportunities for Indiana suppliers that might be tapped to help GE with maintenance and repair work, Metzing said. Maintenance work also puts the Lafayette facility in direct contact with its end users-airlines and leasing companies around the world. "It creates a global presence for the local area," Matteson said. "At least every other week, we've got a customer in the building from somewhere." That visitation should increase along with increased production, he said. Competition Even amid all the positives, GE Aviation still faces challenges-especially in industry competition and worker recruitment. GE Aviation's main rival for this engine type is Connecticut-based Pratt & Whitney, which recently launched its own fuel-saving engine, the PurePower Geared Turbofan. Airbus offers its A320 NEO customers the option of choosing either the GE Aviation LEAP engine or the PurePower engine. In October 2016, Spirit Airlines became the first U.S. carrier to put A320 NEOs into service, and Spirit chose the PurePower. "These are the two competing versions of how to do a new-generation engine," said Seth Kaplan, managing partner of the aviation industry publication Airline Weekly. "The two are kind of competing fiercely." It's too early to say which engine will be more fuel-efficient, Kaplan said. But so far, the LEAP has had a smoother launch. "If they've had issues, they haven't been significant enough to bubble up to where the whole airline industry is talking about them-whereas that is the case with Pratt & Whitney," Kaplan said. In July, Spirit disclosed that it had grounded two of its five new Airbus A320 NEOs because of "various reliability problems" associated with the PurePower. It's not uncommon for new engines to experience hiccups, Kaplan said, but the high-profile nature of the PurePower's difficulties could work in favor of its competitor. "Right now, if an airline is making a decision [on new aircraft], there's no question they're looking at what's going on-and maybe a bit nervous about what's going on-with the Pratt & Whitney engine," he said. "All of that is probably helpful for CFM." Staffing challenges Landing engine orders for the Lafayette plant is only the first hurdle. The next one is finding qualified employees to build them. "It's been one of our biggest challenges, finding and hiring enough people to work here," Matteson said. Most of the workers are aircraft mechanics who hold a Federal Aviation Administration credential. It typically takes two years of schooling or equivalent military experience to pass the credentialing test, Matteson said. In addition, he said, the plant needs workers who excel at soft skills such as teamwork, decision- making and the maturity to discuss problems and resolve conflict. The facility uses what GE calls a self-directed teaming environment. It's a flat structure, with groups of 15 to 20 employees working out many of their own problems. Matteson said local schools-Purdue University, Ivy Tech Community College and Vincennes University-have all been a good source of new hires. But the Lafayette facility is also recruiting at other schools, as well as military bases, hoping to snag eligible recruits as they leave the service. "Our first few waves of technicians came straight from the local market, but after that we needed to start branching out," he said. About 40 percent of the workforce is military veterans. "When you look at the soft skills needed to really excel here, those out of the military seem to better fit that," he said. New hires earn $26.50 per hour. Matteson said GE plans to have about 230 employees in Lafayette by 2019, "with room to grow past that." But the plant will likely never get bigger than about 400 employees, he said, noting that GE's North Carolina plant, which opened in 1993, has about 330 workers. GE's strategy nowadays, he said, is to open smaller facilities that can be more nimble and entrepreneurial. And the Lafayette facility's team-oriented staff structure works only for workforces of 400 or fewer. "The days of the big campuses, at least for General Electric, are gone."* https://www.ibj.com/articles/65225-ge-aviations-110m-jet-engine-factory-on-path-to-employ-230- by-2019 Back to Top Jetstar Tightens Tire Checks After Boeing 787 Flap Failure Australian low-fare carrier Jetstar Airways is asking its pilots and maintenance engineers to pay closer attention to the state of the tires on its Boeing787s during turnarounds after tread debris on takeoff caused a flap failure on a flight from Singapore to Melbourne, Australia, in May. The incident highlights one downside of cutting grooves into runways-a practice widely used to force water from the runway and increase the contact area of the tire on the surface. According to the final report on the incident by the Australian Transport Safety Bureau (ATSB), the grooves, in the case of the Jetstar 787, had over time caused "chevron cutting damage" that led to a 360-deg. delamination of the tread on a main gear tire. The tread debris punctured the composite lower wing structure outboard of the belly of the 787, snapping off a torque tube that drives the left wing inner and outer flaps and cracking a flap trailing edge. The crew became aware of a problem at 3,000 ft. after departure from Singapore, when the first officer called for the flaps to be retracted from the takeoff position (Flaps 5) to the Flaps 1 position. Given that the drive mechanism for the flaps had been broken by the tread, the 787's computer detected an asymmetry between the flaps on the right side versus the left side during the retraction, causing the system to stop driving the flaps and to issue a fault on the engine-indicating and crew-alerting system in the cockpit. The ATSB said the crew correctly followed the checklists in a holding pattern at 6,000 ft. before returning to Singapore for an overweight (188-ton) and relatively high-speed landing at 195 kt. because of the minimal flap deployment. "The captain elected not to jettison excess fuel due to their proximity to other aircraft in the holding pattern, [as] the landing distance required provided a sufficient safety margin and [because of] the fact that the checklist did not require it," said the ATSB, noting that the 787 maximum landing weight is 172 tons. The aircraft was not damaged, and no one was injured in the incident. Airport officials discovered two "debris fields" of tire rubber on the runway. The ATSB sent the failed tire (No. 6, in the left rear inboard position on the left main gear) and its companion tire (No. 5) to the tire manufacturer, Michelin, for an analysis. The No. 5 tire had signs of cracking that had "started to propagate through the tread-reinforcing ply," according to Michelin. The 787 main landing gear is made up of four tires per side, each pressurized to 228 psi. The ATSB said there were no indications that the tires were underinflated, an issue that has been problematic in accidents and incidents, according to the Flight Safety Foundation. Tires are an "on-condition" maintenance item, putting the burden on inspectors-whether pilots or maintenance technicians-to determine the state of wear. According to the ATSB, the failed tire was installed in late 2016 and had accumulated 306 cycles; the No. 5 tire had 307 cycles. "Both tires were below the average life of the operator's use of these part numbers," said the ATSB. "The operator reported that this was their first occurrence of a tire delamination on its 787 fleet." Jetstar also reviewed its flight performance data to see if there was any evidence of pilot operational techniques-including sideloads on landings or takeoffs-that would have reduced tire life. "No occurrences were noted for any of the operator's aircraft in the 787 fleet," said the ATSB. The aircraft lifted off from Singapore at a speed of 180 kt., more than 20 kt. slower than the 204-kt. maximum ground-speed rating for the tires. Michelin in its analysis concluded that "chevron cutting around the tread of both tires" indicated that the tires had been operating throughout their life on grooved runways. "The forces required to accelerate the tire to ground speed during the touchdown phase generate a tearing action, which results in chevron cutting damage," said the ATSB. Signs that the tread was damaged may have been apparent following an inspection by the maintenance team after the previous landing, but not readily visible. The ATSB says that while no faults were recorded for the arrival and predeparture service checks, it was possible that the tire shoulder was already "subject to undercutting of the tread" before departure. "The arrival inspection likely occurred during daylight hours, but the aircraft may have been parked with the tire positioned such that the initiation side was not visible to the inspector," says the ATSB. "However, this was not confirmed by the ATSB." Following the incident, Jetstar issued a "quality notice" to its maintenance line stations and external maintenance organizations, discussing the incident and highlighting 787 tire inspection and replacement requirements. For its 787 pilots, Jetstar issued a "standing order" on tire wear to highlight the areas that require extra attention during preflight checks. http://aviationweek.com/commercial-aviation/jetstar-tightens-tire-checks-after-boeing-787-flap- failure Back to Top SpaceX to Launch Secret Spy Craft Mission The forecast for the next mission by Elon Musk's rocket company SpaceX is cloudy -- and not just because of the weather. Space Exploration Technologies Corp. is slated for its 13th Falcon 9 launch of the year Thursday, from NASA's Kennedy Space Center in Florida. The mission is shrouded in at least two mysteries: the purpose of the payload it's carrying for the U.S. military, and its chances of going off without a hitch amid a weather system ahead of Hurricane Irma. A day after pummeling Puerto Rico and the Caribbean, Irma is forecast to be about 900 miles southeast of the launch site during Thursday's take-off, according to the nearby Patrick Air Force Base. The base said on its website Wednesday that thick clouds expected from a separate storm are a concern and estimated a 40 percent to 60 percent chance of launch Thursday. There's also a Friday back-up window. If SpaceX is able to overcome weather issues, the company will for the first time carry a U.S. Air Force space drone that's conducted highly classified missions in orbit for more than a year at a time. This will be the fifth mission for the X-37B Orbital Test Vehicle, an autonomous spacecraft about 20 percent of the size of the retired Space Shuttle. Secretive Vehicle For years, the Air Force has refused to say what the 11,000-pound vehicle built by Boeing Co. does. The most recent X-37B mission ended in May after more than 700 days circling the Earth. SpaceX's launch Thursday is scheduled to take place between between 9:50 am and 2:55 p.m. local time, SpaceX said in a press kit. It'll then attempt to land the first stage of the rocket on land for reuse. The SpaceX Falcon 9 rocket won U.S. Air Force certification for national security space missions in May 2015, breaking a lock long-held by United Launch Alliance, a joint venture between Boeing and Lockheed Martin Corp. Each of the first four missions for the X-37B involved the Atlas 5, a United Launch Alliance rocket. An X-37B is only launched once every few years, so the program itself won't have a major financial impact on SpaceX, said Brian Weeden, the director of program planning for the Secure World Foundation, a space policy think tank. "However, it could help increase the Air Force's comfort level with launching national security payloads on SpaceX in general, which could be a significant source of revenue in the future," Weeden wrote in an email. Military Contracts Contracts for military launches include satellites that let troops communicate on battlefields and are estimated to be valued at about $70 billion through 2030. In May, SpaceX launched a rocket carrying NROL-76, a classified payload for the National Reconnaissance Office. SpaceX plans to fly 20 to 24 missions in 2017 for customers that include the National Aeronautics and Space Administration and commercial satellite operators. The Hawthorne, California-based company has contracts with NASA valued at $4.2 billion to resupply the International Space Station using an unmanned Dragon spacecraft and to ultimately ferry astronauts there with a version of Dragon that is capable of carrying crews. Musk, SpaceX's CEO, saw his net worth rise by about $4 billion after SpaceX's latest fundraising round valued the company at around $21 billion. The 46-year-old also runs electric-car maker Tesla Inc. https://www.bloomberg.com/news/articles/2017-09-07/spacex-to-launch-secret-spy-craft-mission- if-weather-cooperates Curt Lewis