February 12, 2018 - No. 012 In This Issue OEMs Step Up Aftermarket Activity In Asia-Pacific Gama Aviation raising $67 million to expand Voyageur Aviation announces new production and infrastructure project STRATASYS AFFIRMS SINGAPORE SERVICE CENTER FOR 3D PRINTED PARTS IN AVIATION SIA Engineering, GE Aviation Finalize GE90, GE9X JV. Futenma-based Osprey Loses Part in Latest Aviation Incident on Okinawa FACC Wichita subsidiary earns composites MRO approval Dover partners with AFRL to innovate in fuel efficiency Boeing's Biggest Trade Fight Could Spark a U.S. Confrontation with Europe The Most Interesting Thing Shot into Space This Week Wasn't a Tesla OEMs Step Up Aftermarket Activity In Asia-Pacific The trend of OEM incursion in the aftermarket was exemplified at the Singapore Air Show this week with the event seeing a number of industry giants forming new airframe, engine and component joint ventures. With Asia-Pacific's in-service fleet expected to grow at a 5.8% compound annual growth rate according to Aviation Week's 2018 MRO & Fleet Forecast, along with a projected MRO sector value of $22.5 billion by 2027, the region's maintenance opportunities are attractive to increasingly service-centric OEMs. In recent years, their MRO strategies in the region have been characterized by them setting up shop often through partnerships and JVs, particularly focusing on new widebody aircraft types from Boeing and Airbus. Much of the airframe activity at Singapore was centered on Boeing, operating with ambitious goals to accrue $50 billion in annual revenuesfor its Boeing Global Services (BGS) unit within five to 10 years. This intent outlined last year has led to many second guessing its next move in the aftermarket. One prevailing belief in the industry is that acquisitions to aid this growth are inevitable. While Singapore didn't serve up any buying activity from the U.S. airframe maker, it did see nearly $1 billion worth of new service deals signed in Singapore. These included deals for Singapore Airlines to use Boeing's Electronic Logbook on its 777 and 787 fleets, a landing gear exchanges contract with Japanese carrier All Nippon Airways, and partnering with China Southern Airlines and Guangzhou Aircraft Maintenance Engineering Company to develop services for the BGS program. Rival Airbus, which is seeing its Services By Airbus aftermarket division growing in double digits while heavily pushing its Skywise open data platform, had MRO-related announcements of its own at Singapore. It confirmed a new customer services center at its Airbus Asia headquarters located at Seletar Aerospace Park in the city-state. The center adds to its existing regional presence, which includes Malaysia-based acquisition Sepang Aircraft Engineering and its Heavy Maintenance Services Singapore JV with SIA Engineering. Airbus has also operated a technical training center with Singapore Airlines since 2016 to address the projected global demand for 200,000 new technicians in the region by 2036. In the engine and component segments, which will account for around 30% of the overall Asia-Pacific aftermarket this year according to Aviation Week data, the major OEM activity centered on SIA Engineering, the airline-affiliated MRO which ranks among the region's largest service providers. GE Aviation was among the engine makers to form partnerships with SIA Engineering focusing on next-generation engine types. These included finalizing a 51%-49% JV agreement for GE90 and GE9X overhauls with SIA Engineering, following on from the first announcement of the initiative in summer 2017 at the Paris Air Show. It also announced plans to build a new facility to manufacture GE9X engine parts in Singapore, growing its presence in a components segment, which accounts for the largest MRO market in the region in 2018 at 33%. Pratt & Whitney, through its Pratt & Whitney Eagle Services Asia business, expanded its offering in Singapore by launching full services for the Engine Alliance GP7200 used to power the Airbus A380. Pratt & Whitney Eagle Services Asia, which previously carried out low pressure compressor module overhauls on the engine, plans to carry out its first full service on the widebody engine in the first quarter of 2018. Meanwhile, in an increasingly data-driven and sensor heavy engine industry that has seen concepts such as the Internet of Things and digital twinning come to the fore, British engine maker Rolls-Royce used Singapore to showcase its IntelligentEngine strategy, which it says will change the way it designs, manufactures and services its engines. "We see it almost as being as big a shift as going from piston to gas turbine. It's almost a new way of thinking," Rolls-Royce's marketing senior vice president Richard Goodhead told Aviation Week's Guy Norrison Feb. 6. http://www.mro-network.com/maintenance-repair-overhaul/oems-step-aftermarket-activity-asia-pacific Back to Top Gama Aviation raising $67 million to expand With stock-markets stumbling around the world, this may not have been the greatest week to raise equity, but Gama Aviation - the business aviation company listed on the London Stock Exchange - has announced a £48 million ($67 million) capital raise. The company is placing shares with institutional investors and with Hutchison Whampoa, Gama's Hong Kong partner. Hutchison Whampoa will take 21% of the new issue and become a cornerstone investor in Gama Aviation. Gama will use $19.8 million of the cash to buy out Hutchinson's 20% stake in China Aircraft Services Limited - the Hong Kong aircraft engineering company - and its 50% stake in the Gama Aviation Hutchinson Holdings joint venture. Hutchinson says that it plans to be a long-term investor in the company. Gama will use $20 million to invest in its US maintenance business and in its Sharjah FBO in the UAE. It hopes to use the rest of the money to buy aircraft operators or maintenance companies in Europe and the Middle East. "We have put the people and systems in place that we needed to grow," says Marwan Khalek, CEO of Gama Aviation, "we just needed the capital, and this capital raising has given it to us." https://corporatejetinvestor.com/articles/gama-aviation-raising-67-million-to-expand-097/ Back to Top Voyageur Aviation announces new production and infrastructure project NORTH BAY, ON, Feb. 9, 2018 /CNW/ - Chorus Aviation Inc. ('Chorus') announced today that its subsidiary, Voyageur Aviation, is undertaking an extensive redevelopment of its specialized maintenance, repair and overhaul (MRO) facilities in North Bay with the support of the Northern Ontario Heritage Fund Corporation (NOHFC). The redevelopment is expected to create 40 new jobs at Voyageur's facility in North Bay. At an event held this morning at Voyageur's hangar facility in North Bay, The Honourable Michael Gravelle, Minister of Northern Development and Mines, announced an investment in production and infrastructure that will enable renovation and upgrades to Voyageur's existing facility. "With the support of the Northern Ontario Heritage Fund Corporation, we are investing in personnel and infrastructure at our facility in North Bayto grow Voyageur's specialized regional aircraft maintenance, repair and overhaul (MRO) services, as well as our part sales business. As a North Bay-based company with a global client base, this investment is key to Voyageur's continued success," said Scott Tapson, President, Voyageur Aviation Corp. The grant enables Voyageur to redevelop and upgrade their facility in North Bay and to invest in equipment, tooling and related technology as well as training for personnel. Additional employees will be hired to support this expanded operation. "Investing in businesses like Voyageur Aviation and their new production and infrastructure project is critical to supporting opportunity and job creation in Northern Ontario. Through the NOHFC, our government is fostering increased opportunity and fairness for residents and business across Northern Ontario," said Michael Gravelle, Minister of Northern Development and Mines and Chair of the NOHFC. "This investment enables Voyageur to offer services to an extended client base as we meet the rising demands of our specialized regional aviation services. The growth of our operation, together with job creation will also benefit a variety of businesses in North Bay and make a positive economic impact on the community," added Scott Tapson. About Chorus Headquartered in Halifax, Nova Scotia, Chorus was incorporated on September 27, 2010. Chorus' vision is to deliver regional aviation to the world. Chorus has been leasing its owned regional aircraft into Jazz's Air Canada Express operation since 2009, and has established Chorus Aviation Capital Corp. to become a leading, global provider of regional aircraft leases and support services. Chorus also owns Jazz Aviation and Voyageur Aviation - companies that have long histories of safe and solid operations that deliver excellent customer service in the areas of contract flying operations, engineering, fleet management, and maintenance, repair and overhaul. Chorus Class A Variable Voting and Class B Voting Shares trade on the Toronto Stock Exchange under the trading symbol 'CHR'. www.chorusaviation.ca About Voyageur Aviation Corp. Voyageur Aviation Corp. is a wholly-owned subsidiary of Chorus Aviation Inc. (TSX: CHR), a company whose vision is to deliver regional aviation to the world. Voyageur Aviation Corp. is the parent company of Voyageur Airways Limited, Voyageur Aerotech Inc., and Voyageur Avparts Inc. Voyageur Aviation Corp. manages these entities under the same core principles of comprehensive safety management, quality assurance, and client-dedicated solutions. Voyageur Airways Limited: Established in 1968, Voyageur Airways is a Canadian Air Operator specializing in ad-hoc or contract-based aircraft charter services and aircraft leasing. Voyageur Airways' operations are worldwide, often in remote and challenging environments. Voyageur Aerotech Inc.: Voyageur Aerotech Inc. is a Canadian Approved Maintenance Organization (AMO). Voyageur Aerotech provides a multitude of aircraft maintenance, manufacturing and engineering related services. Voyageur Avparts Inc.: Voyageur Avparts Inc. is a Canadian company providing a multitude of regional aircraft supply chain services. http://markets.businessinsider.com/news/stocks/Voyageur-Aviation-announces-new-production-and-infrastructure-project-1015227741 Back to Top STRATASYS AFFIRMS SINGAPORE SERVICE CENTER FOR 3D PRINTED PARTS IN AVIATION Stratasys and Singapore-based aircraft maintenance company SIA Engineering Company (SIAEC) are one step closer to establishing a service center for 3D printed parts in commercial aviation, after the two companies signed a Joint Venture Agreement (JVA). The JVA follows a Memorandum of Understanding (MoU) agreement that the two companies signed in 2017. Under the current agreement, SIAEC will have a 60% equity stake in the joint venture, while Stratasys will hold the remaining 40%. Stratasys has also released a free white paper on using 3D printing to make thermoforming molds and tools. An agreement to supply MROs and OEMs When Stratasys signed the MoU with SIAEC in April 2017, the company's CEO Ilan Levin reiterated a commitment to "advancing the use of additive manufacturing for high requirement aerospace applications" and to also solving "unique challenges of the MRO [maintenance, repair, and overhaul] segment and further drive adoption." The new service center, to be based in Singapore, will offer design, engineering, certification support and part production. Customers for this service are expected to include airlines, MRO providers, and original equipment manufacturers (OEMs). Unlike companies like Sintavia which are 3D printing metal parts for aircraft exteriors, the commercial aviation service center will chiefly produce FDM/FFF 3D printed aircraft cabin interior parts as well as tooling for MRO providers. Png Kim Chiang, CEO of SIAEC commented: "WITH INCREASING ADOPTION OF ADDITIVE MANUFACTURING TECHNOLOGY IN THE AEROSPACE INDUSTRY, THIS JOINT VENTURE WILL BE ABLE TO ACCESS GROWING DEMAND FOR ADDITIVE MANUFACTURING SERVICES." "We look forward to partner with Stratasys to provide our customers with new service offerings as we continue to enhance our suite of MRO services," Chiang added. The impact of 3D printing on thermoforming Stratasys has also released a white paper entitled "Take Advantage of the Multiple Benefits FDM Thermoform Tooling Offers." The white paper introduces FDM thermoforming, outlines its benefits to industry, provides overviews on design, compares FDM materials for tools, addresses processing, post-processing and finally provides some test cases. The white paper concludes that FDM-manufactured tools for thermoforming applications, compared to traditional methods, addresses the challenges of high tooling cost, long lead times and producing complex geometric shapes. Tell us who you think is the best 3D printing company of the year. Make your nominations for the 3D Printing Industry Awards 2018 now. For more stories on 3D printing in aerospace, subscribe to our free 3D Printing Industry newsletter, follow us on Twitter, and like us on Facebook. https://3dprintingindustry.com/news/stratasys-affirms-singapore-service-center-3d-printed-parts-aviation-128708/ Back to Top SIA Engineering, GE Aviation Finalize GE90, GE9X JV SIA Engineering and GE Aviation have formally signed a joint venture agreement to create an engine overhaul joint venture based in Singapore. The facility will specialize in repair services for the GE90 engine, the sole engine option for the Boeing 777-300ER and -200LR, and the GE9X, the single engine selection for the Boeing 777X. It will handle work for both SIA Group airlines along with third-party customers. Both parties first proposed an MRO partnership in June 2017 at the Paris Air Show. GE will hold a 51% equity stake in the JV, while SIA Engineering will take the remaining 49% in the business, which remains subject to acquiring the relevant regulatory approvals. MRO-Network has contacted GE Aviation to clarify construction and opening dates for the facility. GE Aviation is ramping up its presence in Singapore, where it has been established since 1981. Earlier this week, it confirmed plans to set up a manufacturing facility at Seletar Aerospace Park to produce GE9X engine parts in late-2018, an investment costing S$42million ($31.7 million). http://www.mro-network.com/maintenance-repair-overhaul/sia-engineering-ge-aviation-finalize-ge90-ge9x-jv Back to Top Futenma-based Osprey Loses Part in Latest Aviation Incident on Okinawa Feb. 09--CAMP FOSTER, Okinawa -- No injuries or damage has been reported after a large piece from a Marine Corps aircraft was lost this week off the coast of Okinawa. Part of an air intake from an MV-22 Osprey washed ashore Friday on the western beach of Ikei Island, said a spokesman for Okinawa Defense Bureau, which is a branch of Japan's Ministry of Defense. The piece, which came from the aircraft's right engine, is 2 feet long, 3 feet wide and 2 feet deep. The helicopter-plane hybrid assigned to Marine Corps Air Station Futenma reportedly lost the part during a flight Thursday but was able to return safely to base. The Marine Corps on Okinawa confirmed Friday that the part had fallen from one its Ospreys, bureau officials said. It's unclear whether Marine officials alerted their Japanese counterparts about the incident, which they are required to do by the status of forces agreement between the two nations. Marine Corps officials could not be reached for comment on Friday evening. Bureau officials said they would continue to investigate the incident. A series of recent aircraft-related mishaps, including three emergency landings by Marine helicopters in January, has drawn criticism from Tokyo, which dispatched Japan Ground Self-Defense Force aircraft maintenance specialists to Futenma on Feb. 1 for a briefing on the issues. On Dec. 13, a CH-53E Super Stallion's window inexplicably became separated from the aircraft and landed on an elementary school sports field adjacent to Futenma's fence line. More than 50 schoolchildren were playing at the time, and a boy was slightly injured from a pebble that flew up during impact. On Dec. 7, a plastic part thought to belong to a U.S. military helicopter was found on the roof of an Okinawan day care facility. In October, a Super Stallion made an emergency landing in a farmer's field outside Okinawa's Northern Training Area after an inflight fire. The aircraft was an almost total loss. In August, an Okinawa-based MV-22 Osprey crashed off the coast of Australia during a training exercise, killing three Marines. At a maritime security forum last month in Washington, D.C., Marine Corps Commandant Gen. Robert Neller said the service's safety record was "horrible" in 2017 but that things were improving. Okinawans are largely divided when it comes to hosting about half of the U.S. military's 50,000 Japan-based troops and their aircraft. Deadly aviation accidents in the past have sewn anxiety and fear over the possibility of a crash or falling debris. Tokyo and its allies in Washington have tried to consolidate U.S. forces on the island and hand back large swaths of bases and territory to satisfy detractors. They plan to relocate Marine air operations from densely populated Futenma to Camp Schwab on Okinawa's remote north coast as soon as a runway can be built into Oura Bay to facilitate the move. A small but fervent protest movement backed by Okinawa's governor wants to move Marine air operations off the island, but has so far been unsuccessful. The movement suffered a major blow on Feb. 4 when Nago's anti-base mayor Susumu Inamine was defeated by former Nago assemblyman Taketoyo Toguchi, who is supported by Prime Minister Shinzo Abe's Liberal Democratic Party. Abe has since vowed to press on with the relocation plan. http://www.aviationpros.com/news/12396912/futenma-based-osprey-drops-part-in-latest-aviation-incident-on-okinawa Back to Top FACC Wichita subsidiary earns composites MRO approval FACC Solutions Inc. (Wichita, KS, US) , a subsidiary of FACC (Ried im Innkreis, Austria), announced on Feb. 7 that it has been granted Foreign Part-145 EASA approvals and certification as a Foreign Repair Station by the European Aviation Safety Agency (EASA), thereby positioning itself as a qualified maintenance service provider for EU registered aircraft. This EASA approval adds to the company's existing FAA approvals. FACC notes that the market for MRO services - notably maintenance and repairs of composite systems - is increasingly developing into a promising field of business due to the expanding share of composite structures in new aircraft. With its infrastructure in Austria and the U.S., FACC says fulfills all technical and official requirements to perform maintenance works on structural components of wings, tail units and engines, as well as in the cabin. With these maintenance approvals and certifications as a design (EASA Part-21 J) and production organization (EASA Part-21 G) held for several years, FACC offers a range of maintenance services in addition to its extensive component portfolio, thereby allowing the company to perform maintenance works such as repairs, modifications and tests of fiber composite aircraft components, regardless of whether the parts, components and systems were produced by FACC or the manufacturer (OEM). "This approval represents another milestone in the expansion of FACC's service strategy. As a technology company in the aerospace industry, we have created ideal conditions for sustainably expanding the MRO segment," says Robert Machtlinger, CEO of FACC. "We are now in a position to reach a larger customer base and offer a wider range of services. Our goal is to provide high-quality services to our customers with maximum flexibility and react to their needs in a fast and precise manner by offering cost-efficient solutions, with reaction times kept to a minimum." https://www.compositesworld.com/news/facc-wichita-subsidiary-earns-composites-mro-approval Back to Top Dover partners with AFRL to innovate in fuel efficiency DOVER AIR FORCE BASE, Del. -- As Air Mobility Commands focuses on the innovations necessary to maintain the Air Force's competitive advantage, Mobility Airmen provided insight to help the Air Force improve C-17 capabilities and save money in the future. The Air Force Research Laboratory's Advanced Power Technology Office (APTO) from Wright-Patterson Air Force Base, Ohio, collaborated with Dover Air Force Base Airmen and private companies on programs to make the entire C-17 Globemaster III fleet lighter, safer and more fuel efficient Jan. 30, 2018. Three programs currently being developed by APTO to improve the C-17 fleet include the installation of Microvanes, the use of synthetic tie-downs instead of cargo chains and the use of winch cables instead of steel cables. In September 2017, APTO showcased three ongoing programs using a C-17 set up by 736th Aircraft Maintenance Squadron personnel here to Roberto Guerrero, deputy assistant secretary of the Air Force for operational energy. "We visited Dover late last year [2017] to do some demonstrations, and we received useful feedback from the local crew for redesigning our system. We wanted to come back to see how they liked the changes and get more feedback from them" said Justin Smoak, Samson Rope application engineering manager, Ferndale, Washington. Microvanes The nylon Microvanes being tested are filled with 3D printed glass beads. Each Microvane is 2.4 inches tall and 16 inches in length. The addition of Microvanes to the C-17s are an effort contracted with Lockheed Martin to reduce drag and fuel consumption that is currently being considered for transition by AMC. Using a Mylar template, 736th AMXS maintenance personnel installed 12 Microvanes, six on each side at the rear of a C-17 fuselage that gave Guerrero a first-hand look. "Microvanes essentially clean up the airflow in the region of the cargo door by re-energizing the air with small vortices that delay separation, smooth the flow, and reduce drag," said Capt. Randall Hodkin, AFRL Advanced Power Technology Office aviation working group lead. "Historically, cargo aircraft have airflow issues in the aft region of the airframe due to the required upsweep of the fuselage to integrate a cargo ramp." According to Hodkin, if all 222 U.S. Air Force C-17s had Microvanes installed, fuel savings per year could range up to 2.0 million gallons, equating to five to seven million dollars depending on fuel prices and mission. "With support from Dover AFB, we were able to validate that the tooling developed as part of the AFRL program can position C-17 Microvanes in the correct location to achieve the expected one percent fuel savings," said Hodkin. C-17 Microvane flight testing was conducted by the 412th Test Wing, Edwards AFB, California, between August and December 2016. This valuable flight test program was able to validate that Microvanes reduce drag by one percent when in cruise. In addition, the Edwards AFB flight tests also included several test scenarios to validate that Microvanes do not affect the critical C-17 air drop mission capability. Synthetic Tie-downs and Winch Cables In addition to installing the Microvanes, the team also tested synthetic tie-downs and winch cables. Tie-downs are ropes, cords, straps or chains that secure items during airlift operations. Winch cables help adjust the tension on tie-downs, securing the load. AFRL, Hodkin, Samson Rope application engineers, along with an AMC subject matter expert, also came back to Dover at the end of January to demonstrate fit-for purpose synthetic tie-down assemblies and a custom engineered winch cable. These solutions were developed after feedback from an operational evaluation at Charleston AFB in 2016 and the previous demonstration at Dover. "For the winch cable, safety is definitely paramount," said Senior Master Sgt. Jeff Witherly, Headquarters, AMC C-17 evaluator loadmaster, Scott AFB, Illinois. "The steel cable we currently have could possibly snap and whiplash, whereas the new synthetic cable fails in a more predictable and controlled manner." The proposed use of the 280-foot synthetic winch cable weighing 14 pounds is 83 percent lighter than the current 80 pound steel wire cable. Loadmasters from the 3rd Airlift Squadron also helped Witherly, Hodkin, and Samson Rope application engineers with concerns regarding how the synthetic chain would fit in a slotted interface designed for steel chains on the buffer stop assembly, a device used during specific airdrop missions to keep pallets from shifting forward in the cargo compartment. "We received excellent feedback on the final version of the synthetic tie-downs even though they did not interface as nicely with the BSA grooves as we'd like," said Hodkin. "The loadmasters said that the tie-downs would work with the interface, but could be placed around the BSA frame next to the grooved interface to better restrain the BSA." Witherly also commented that "When using synthetic chains, the change would be transparent to loadmasters for most applications, but the weight difference would be significant and noticeable." Transitioning the existing ninety-two C-17 steel chains to synthetic tie-down assemblies can remove 1,000 pounds of excess weight from the aircraft, potentially reducing the annual C-17 fuel budget by one million dollars and improving mission capabilities. Way Forward "The programs APTO is working on are great examples of how we can increase our combat capability through the smart use of operational energy," said Guerrero. The next step in replacing the steel wire winch cable and tie-downs with a synthetic is to have them approved as official AMC requirements. If approved, additional ground or flight testing would be the next step prior to fleet-wide implementation. http://www.mcchord.af.mil/News/Article-Display/Article/1437962/dover-partners-with-afrl-to-innovate-in-fuel-efficiency/ Back to Top Boeing's Biggest Trade Fight Could Spark a U.S. Confrontation with Europe Feb. 11--Boeing's lawyers, still smarting from the shock of losing their U.S. trade-court case against Bombardier's CSeries jets, are now awaiting an imminent ruling in a bigger trade fight over government subsidies. In a case against Airbus that's slogged on for nearly 15 years and has seemed endless, Boeing now insists it's within sight of a final victory. And though the dispute long predates President Donald Trump, his administration's hard-nosed "America First" posture on trade disputes -- ready to impose tariffs rather than negotiating settlements -- adds a new edge of rancor and risk. The U.S. filed suit against Airbus at the World Trade Organization (WTO) in 2004, and since then the gears of that court have ground slowly without any perceivable impact. Yet Boeing's top lawyer, Michael Luttig, said in an interview that the law is about to catch up with Airbus and the European Union (EU). "Boeing committed itself some 15 years ago ... and it has never blinked since," said Luttig. "Today, we are months away from the imposition of tariffs." Airbus is staring back, also refusing to blink. A senior Airbus executive and trade lawyer, who asked not to be named because of the continuing legal proceedings, compared Luttig's threat of tariffs to "a nuclear strike" and pointed to the parallel EU case before the WTO that accuses Boeing of taking subsidies. "The EU would be well-prepared to respond in kind and with much greater force," said the Airbus legal executive. "The EU will survive that first nuclear strike and will retaliate with megatons to the U.S.'s kilotons." In a speech in London last month, Airbus CEO Tom Enders said that under Trump, the U.S. is "no longer fighting for opening markets but to close the U.S. market to ... foreign competitors." Citing the CSeries case, he accused Boeing of "ruthlessly surfing on this 'America-First' wave." The risk that a multinational trade war could erupt with some of the nation's closest allies looks suddenly higher. A WTO endgame In September 2016, after multiple procedural steps and appeals, the last ruling in the United States' WTO case against Airbus found that the European jet maker had fallen far short of remedying the harm to Boeing from illegal subsidies. The EU immediately appealed. What's ahead this year, by late spring, is the final decision on that appeal. Boeing's lawyers expect the court to largely uphold the 2016 decision. And Boeing says, that's it. It's the end of the appeals. If Airbus loses, said Bob Novick, Boeing's outside counsel on the WTO dispute since 2003 and former general counsel to the U.S. Trade Representative, the U.S. would then immediately request authorization to impose retaliatory sanctions. Boeing anticipates that the WTO will set the level of sanctions at $10 billion to $15 billion. The U.S. government could then slap punitive tariffs up to that amount on whatever EU goods it selects for maximum political impact. Boeing's tough talk may be partly a negotiating ploy. Still, if the WTO hands this loaded weapon to the U.S. government, it's unlikely the Trump administration's trade hawks will be shy about using it. Jeff Bialos, a partner in the international law firm Eversheds Sutherland and a former Commerce Department official handling major trade litigation, said that typically at such an endpoint in a trade dispute, the two governments would negotiate some agreed settlement. "The issue is, will the Trump administration, with its views on trade ... have the ability to negotiate solutions?" Bialos said. "The jury is out. We are going into uncharted waters." Bill Perry, a Seattle-based international trade lawyer with Harris Bricken and a former U.S. Commerce Department attorney, thinks Trump will take "a very hard line." He pointed to the administration's imposition last month of tariffs on imported solar panels, to punish China for selling finished panels in the U.S. below their cost, and on washing machines, targeting Korean manufacturers. "Could this be the first row of bricks in a protectionist wall Trump intends to put up?" Perry asked. At the very least, the stage looks set for brinkmanship, if not an open trade war. A duel with pistols drawn Boeing lawyers expect the imminent threat of tariffs to focus minds in the EU and perhaps to precipitate settlement talks in which they would then have the upper hand. The top Airbus executive warned that Boeing is on the hook for its own illegal subsidies in the parallel WTO case filed by the EU -- and so whatever the U.S. does, the EU can and will match. "Boeing can try for sanctions. And if they do, we will too," he said. In the EU case against Boeing, the last ruling in June found that Boeing had failed to remedy the harm to Airbus from just one set of subsidies: the tax reduction that was part of Washington state's aerospace incentives. Boeing has appealed that ruling. An awkward detail for the EU is that its case against Boeing was filed as a countersuit some nine months after the U.S. filed against Airbus, and so it lags the U.S. case by roughly that amount of time. The decision on Boeing's appeal won't come out until late this year or even next year. In the meantime, the U.S. may act. The Airbus executive dismissed the delay between the cases -- "a few months"-- as insignificant. He compared it to a pistol duel, where one person gets to fire first, but knows that the other will survive and will get a chance to fire back. The EU will have plenty of ammunition, he contended. When the time comes to add up the compensation needed, he said the EU will count every airplane Boeing sells, including future sales. "Every sale of a 787 is a subsidized sale and every one will count against Boeing when judgment day comes," the Airbus executive said. Trade war consequences If Boeing's 15-year pursuit of Airbus at the WTO has been tenacious, the legal attack it launched on Bombardier last April was even more fiercely aggressive. And even though it failed, pushing the case had consequences for Boeing. Geoffrey Geertz, a researcher on the politics of trade at the Washington, D.C.-based Brookings Institution, pointed out that in the Delta jet sale won by Bombardier's CSeries that was central to the case, "there wasn't much at stake" for Boeing because it wasn't offering its own jets against the smaller aircraft. Yet pursuing the case alienated both the Canadian and British governments, putting at risk large defense contracts, including a contract to supply Canada with F/A-18 jet fighters valued at more than $5 billion. It also antagonized major commercial-airplane customer Delta. In a subsequent sales campaign in December that mattered much more to Boeing, Delta chose to go with Airbus when it bought 100 larger planes. "Boeing might be rethinking whether that was a miscalculation," Geertz said. An open trade war with major economic partners could be even more damaging, not only for Boeing but for the U.S. That's a belief central totraditional, pre-Trump Republican Party policy. President Ronald Reagan in 1986 dismissed congressional demands for import tariffs as "flimflammery" and warned against the dangers of protectionism. "The truth is these trade restrictions badly hurt economic growth," Reagan said. The unpredictable consequences of tariffs are evident in the case of REC Silicon, which produces polysilicon, a raw material used in making solar panels, at a $1.7 billion manufacturing plant in Moses Lake. The Chinese solar-panel industry once imported polysilicon largely from the U.S. But after an earlier round of the solar-panel trade fight, China in 2014 retaliated by imposing tariffs on U.S. polysilicon that forced REC to cut 500 jobs. A letter sent to Trump by REC employees in early January said that "now the remaining jobs are at risk" and urged Trump to announce "a comprehensive settlement" with China. Instead, Trump applied new tariffs. The risk is a tit-for-tat response. Last month, in retaliation for the Commerce Department's initiation in December of a trade case against imports of aluminum sheet from China, the Chinese government started its own case against U.S. exports of sorghum grain to China. "It signals the possible start of a trade war with China," said trade lawyer Perry in a newsletter to clients this month. "There is a price to pay for U.S. tariffs and trade actions." Fight or settle? No company is more dependent on free trade than Boeing, which sells both its commercial jets and its defense products worldwide. Yet Boeing sees itself at a huge disadvantage against Airbus because of the types of subsidies the European jet maker has available. Yes, Boeing gets tax breaks and so pays less tax on the income from the planes it rolls out each year. But it has to take all the risk and shoulder the multibillion-dollar cost when it develops a new airplane. Airbus gets upfront government loans amounting to billions of dollars to defray the cost in advance -- with no repayment necessary if the new airplane project fails. Luttig insists that "there is no such thing as free trade unless all of the global industry participants abide by the rules." "Free trade is, by definition, trade in accordance with the rules of fair trade," he added. Airbus says it wants a different endgame to the WTO case: a negotiated settlement that would reset the rules. The Airbus legal executive said a multinational deal could lay out agreed limits to government support in the aircraft industry for the long-term future. "We sit down with all participants in this game, including the Chinese, the Russians, the Japanese, the Canadians, the Brazilians and maybe more, and have a good discussion globally," he said. Such an agreement might then constrain China's behavior as its aviation champion COMAC develops future airplanes to compete against Boeing. Brookings researcher Geertz said pursuing such a settlement makes sense because "the long-term game for Airbus and Boeing is figuring out what they are going to do about COMAC." In an interview at Boeing's Chicago headquarters before the loss in the Bombardier case, Chief Executive Dennis Muilenburgsteadfastly eyed his shorter-term target. "Airbus, as has been determined through the WTO proceedings, has an unresolved more than $23 billion illegal subsidy ... that still needs to be addressed," Muilenburg said. "We have to stand on a principle of global fair competition." Boeing's case against Airbus may be stronger than the one against Bombardier. Still, with one trade-court decision gone awry, Boeing's leadership must now weigh anew the risks of a trade war against the likelihood that a legal victory could enforce a fair competitive landscape for the future. http://www.aviationpros.com/news/12396908/boeings-biggest-trade-fight-could-spark-a-us-confrontation-with-europe Back to Top The Most Interesting Thing Shot into Space This Week Wasn't a Tesla There was a second payload on board the SpaceX Falcon Heavy that launched Tuesday (Feb. 6), and (unlike the Tesla Roadster) it's built to last 14 billion years. SpaceX confirmed during its pre-launch livestream that the gadget, called an Arch, is tucked away somewhere inside the red Tesla Roadster now floating through space. It's a simple-looking object: a clear, thick disk of quartz crystal, about an inch across, with lettering across its face. It could almost be a small business award - best car dealership maybe, or top pizza restaurant - except for the data etched microscopically into its body with powerful, high-frequency lasers. And that data, or at least the future suggested by that data, is what earned the Arch a ride aboard the Roadster. Pronounced "ark" as in "archive," it's part of a very Silicon Valley plan to - as technology investor, self-described futurist and Arch Mission Foundation co-founder Nova Spivack explained it to Live Science - create "a self-replicating, meta-level process to perpetuate human civilization." The Foundation picked the quartz discs for this task because they can store a lot of information very compactly, without degrading much at all over long time spans. Each laser-inscribed point on the disc is just 200 nanometers wide (a bit bigger than a single HIV virus), but can encode six bits of information, Spivack said. And as long as the quartz isn't shattered or blasted with intense waves of radiation, those points should be legible to anyone with the technology to view them - even millions (or perhaps billions) of years in the future. In a phone interview, Spivack explained that the etched quartz is part of a grand plan to seed the solar system with super-durable data-storage devices containing a vast cultural archive of human civilization. The outside of the disks will have visible symbols on them, Spivack said, "symbols that say, 'Look, this is interesting.'" Then, future discs will have tiny images etched into them "like microfilm," he said, big enough to be visible with a good microscope. A future observer who discovers those symbols, the Foundation hopes, will take the time to decode the tiny dots, which will contain huge archives of information. Why do this? "If you look at the history of civilizations, human civilizations do a very good job of wiping themselves out," Spivack said. And if that happened today, much of the modern cultural record - stored on degradable magnetic disks and drives and tape - would disappear within a century. The Arch project's stated goal is to act as a kind of insurance against civilizational catastrophe. Create a durable, redundant record, leave it where future human (or alien) civilizations might find it, and our culture's collective knowledge will never die out. It's a striking idea, at once utopian, space-age and completely fatalistic - appealing enough to a certain kind of imagination that, according to Spivack, Elon Musk agreed to carry the first Arch into space after hearing about it in a casual Twitter exchange. Spivack insisted that he's not trying to become the author or curator of this distributed monument to modern society. "The idea here is to send not just one or two or 10 one-off Archs, but to send millions - maybe billions - of them all across the solar system into all kinds of locations," he said. The foundation wants to build a lunar Arch library, as well as a Mars library, among many others, and to expand beyond quartz storage into other kinds of long-term data records, including DNA. Still, for the moment at least, Arch technology remains prohibitively expensive. And in that context Spivack reluctantly acknowledges that the foundation will have to play gatekeeper. "The Wikimedia Foundation, Wikipedia, Project Gutenberg (e-books), human genomes and other large open-data sets are the priority," he said. Later, he hopes to offer small chunks of the record to "donors" - people who pay, he estimated, $20 to $100 in return for the right to place some fragment of data into deep posterity. Those funds, he said, will go into an endowment, which he hopes will fund the foundation long term. Eventually, he said, if the endowment grows big enough, the foundation will give archival rights away for free. Rather than pick and choose what ideas get preserved at that point, he said, the foundation hopes distributing the power of long-term preservation widely enough will create a truly representative portrait of human society that will live on into deep time. "We're not going to make difficult censorship decisions because, you know, the internet is open and so is the Arch," he said. "We'll include everything, including the bad stuff, because the bad stuff is also important." So, what's the point of all this effort? Why go through the trouble to write something down for a far-flung future audience that may never arrive - or, Spivack suggested, might be a silica-eating alien race that consumes the Arch disks as food? Well, it turns out that building the Arch could be pretty lucrative. "Some of the things that are being developed certainly have commercial potential," Spivack said. Right now, the best way to send large amounts of information between Earth and space is via radio signals. But there are some hard bandwith limits on radio, thanks to the speed of light and other issues. Even the internet connection on the multi-billion-dollar ISS in low-Earth orbit is only about as fast as a typical home router. That's fine for the data needs of a small crew, but imagine trying to squeeze all the data needs of a Mars city through that connection, with additional delays due to distance and lightspeed. If/when humans move into space, Spivack thinks dense, lightweight data-storage devices could become more valuable as ways of transporting, say, the contents of the internet between Earth and Mars. And tech like the quartz disks, which he said could one day hold hundreds of terabytes of information, would be perfect for that task. Already, he said, there are plans to spin off patents from research groups involved in the Arch project into side companies - companies whose intellectual property rights will in turn fund the foundation. For the moment though, Spivack said he's focused on getting as much data from "the humanities" up into space as possible. (The foundation, he said, assumes that any civilization that could parse the microscopic data-dots on the disks already understands our sciences.) And as long as the foundation is playing its reluctant (according to Spivack, at least) curator role, they're acting just like you might expect from a group of Silicon Valley techno-futurists: The first Arch disks produced so far, including the one riding through space on that Tesla Roadster, contain Isaac Asimov's Foundation Trilogy. https://www.livescience.com/61714-space-archive-falcon-heavy.html Curt Lewis