May 21, 2018 - No. 040 In This Issue Citadel Completions Plans Aircraft Center at Chennault Airport in Lake Charles, Louisiana Philippine Airlines and Lufthansa Technik Philippines sign 12 year line maintenance agreement. Antonov An-158 regional jet fleet is grounded Sikorsky begins CH-53 King Stallion deliveries to Marine Corps NTSB Backs FAA's Closure Of Texas MRO Shop The Army Is Inspecting Its Entire Apache Helicopter Fleet for a Critical Defect Ennis company to unveil innovative new machine TN: Memphis Airport Board Lowers Landing Fees, Terminal Rents, Approves $41M Project. DOT Watchdog To Review ADS-B, NextGen Equipage China's first private rocket launch kicks off the country's commercial space race Citadel Completions Plans Aircraft Center at Chennault Airport in Lake Charles, Louisiana Citadel Completions will make a $17.6 million capital investment and hire more than 250 people for an aircraft center dedicated to interior jet modifications and maintenance at Chennault International Airport in Lake Charles, Louisiana. As a newly established aerospace company, Citadel will provide full-scale interior completions for luxury and commercial aircraft, such as Boeing 737, 747, 767 and 777 jets, along with Airbus A330 and A340 jets. In addition to providing jet interior modifications, Citadel Completions will perform MRO, or maintenance, repair and overhaul, services, as space is available. At Chennault, Citadel Completions will occupy Hangar D (with 150,000 square feet of space), Hanger H (112,000 square feet) and a separate administrative building with 19,000 square feet. "We are excited to begin operations at the Chennault International Airport in Lake Charles," said Citadel Completions Managing Director Joe Bonita. "The infrastructure at Chennault is modern and well-suited for aircraft interior completion and MRO operations. The airport and local community have been extremely welcoming, and we look forward to working together to build a world-class business at this incredible facility." According to Louisiana Economic Development Citadel Completions, an entity created and financed by Las Vegas entrepreneur and businessman Sheldon G. Adelson, will include a seasoned team of aviation professionals who design and engineer luxury interiors for a variety of narrow, and wide-body aircraft. Customers will range from private owners and VIP jet groups to government operators. LED began reviewing project possibilities in May 2017 and in November 2017 entered discussions with the entity that formally would become Citadel Completions LLC. To secure the project, the State of Louisiana offered the company a competitive incentive package that includes a performance-based grant of $7 million to defray the cost of facility modifications, payable in seven consecutive yearly installments, along with a $2 million performance-based grant for lease support. In addition, the company is expected to utilize Louisiana's Industrial Tax Exemption and Quality Jobs programs. "Louisiana's established advanced manufacturing capacityprovides unparalleled advantages for aviation and aerospace companies," Governor John Bel Edwards said. "That's particularly true in Southwest Louisiana, where Chennault International Airport is one of our state's great aviation assets. Citadel Completions has recognized the value of this facility and our exceptional workforce, and we congratulate the company on choosing Lake Charles for their completion center, which will bring high-paying jobs and new careers in aviation to this region." http://www.areadevelopment.com/newsItems/5-18-2018/citadel-completions-lake-charles-louisiana.shtml Back to Top Philippine Airlines and Lufthansa Technik Philippines sign 12 year line maintenance agreement Philippine Airlines (PAL) and Lufthansa Technik Philippines (LTP, 49%-owned by MacroAsia) signed a twelve-year maintenance agreement on Thursday, May 17, 2018 to formalize the turnover of line maintenance services for PAL's incoming A350s and A321 Neos, effective May 31, 2018. The volume from this 12-year agreement is estimated to be worth more than USD260 million during the life of the agreement. LTP started preparing for the servicing of the A321neo and the A350-900 as early as 2016. To be ready for the entry into service of these new planes, LTP is investing about USD15 million to cover for the training of mechanics, facility adjustments and for tooling and materials. This agreement between PAL and LTP is a testament to their solid partnership, aligned with the overall goal of delivering a better flying experience for PAL's passengers. In 2018, PAL expects to get four A350-900s, six Airbus A321neos and five Bombardier Q400s. PAL foresees to end the year with 98 aircraft in its fleet. It currently has 89 aircraft. Its move to modernize its fleet, with LTP's help, is part of the initiatives being implemented to achieve a five-star rating for PAL by 2020. https://centreforaviation.com/members/direct-news/pal-and-ltp-sign-12-year-maintenance-agreement-for-pals-new-a350a321neo-planes-418599 Back to Top Antonov An-158 regional jet fleet is grounded The aviation authorities of Cuba have ordered the grounding of the entire Antonov An-158 fleet operated by Cubana de Aviación, the Caribbean island nation's flag carrier and the world's only commercial operator of the type, according to publicly-available official notices. In their resolution, the Cuban regulators explain that the grounding is the consequence of a number of problems associated with the operation of the Ukrainian-designed jet, including a shortage and unreliable delivery of component parts for the aircraft which are, to a great extent, produced in Russia. The Antonov An-158 is a 100-seat regional jet, a stretched version of the An-148, which was designed and built in the Ukraine using many Russian components, in a project originally financed by a group of Russian banks. It was also a Russian lease company which organised a deal for the aircraft with Cuba. Against the difficult backdrop, cooperation between Russia and Ukraine remains fractured. The Cuban airline has reportedly been beset by technical problems with the type since it entered service in 2013. In the last three months the operator registered abnormal engine operation temperatures on the Ukrainian Ivchenko-Progress D-436 engine. One of the fleet, tail number CU-T1716, was removed from service after the aircraft manufacturer mandated to stop operation of the aircraft's powerplant. The other five aircraft - CU-T1710, CU-T1711, CU-T1712, CU-T1714 and CU-T1715 - are in different states of health. According to public flight tracking web-services, CU-T1716 made its final flight on May 3, CU-T1715 has been grounded since March 1, and CU-T1714 since January 19. There are no signs of any operations for the remaining aircraft for over a year. The airline has not offered any comments to Russian Aviation Insider, but apparently it will have to report to the authorities about the prospect of restoring the fleet's airworthiness for a resumption of operations. Antonov State Enterprise has confirmed to Russian Aviation Insider that it signed an agreement with the new management of Cubana de Aviación to assist in the return to service of the An-158s before the end of this year. "Antonov's engineers will conduct a technical assessment of the fleet's condition and will create a list of necessary maintenance works for each aircraft. Both sides are committed to a productive cooperation," an Antonov source comments. In May 2017 Antonov extended the service life of all Cuban An-158s for six months. It also announced plans to create a spare parts stock for the type and arrange a supply chain jointly with foreign partners to solve the components shortage problem. It also suggested a full-fleet support programme for the airline. However no further announcements or developments in terms of airworthiness have since been made. The production of these aircraft in the Ukraine and their subsequent export to Cuba was financed by a group of Russian banks and overseen by Russia's Ilyushin Finance Co and the Panama-registered South American Aircraft Leasing (SAAL). The Russian lessor has emphasised that the aircraft were impeccably serviced throughout the guarantee period. However, once that guarantee period had expired, the airline failed to take sufficient action towards providing financing for further components delivery or for securing relevant agreements with the manufacturer and suppliers. "Thus we are getting the impression that the Cuban side has intentionally created the situation for building a negative perception of the aircraft, while neglecting the fact that it did not take any steps towards arranging for the continued airworthiness of its aircraft," IFC said. The lessor also points out that the An-148 - original member of An-148/158 family - is currently successfully operated by Russia's Angara and Saratov Airlines, as well as EMERCOM and the nation's Defence Ministry. Their continued airworthiness and defect rectification procedures have been in place since service entry, and with such due attention, the aircraft have continued to demonstrate good results, both operationally and commercially, the lessor insists. Ilyushin Finance Co is currently not connected in any way with the An-158, but its MRO subsidiary IFC Technic has been in talks with Cubana de Aviacion regarding maintenance options. Cubana de Aviacion earlier complained that untimely deliveries of spare parts from discordant Russia and Ukraine had forced it to cancel flights. For example, in May 2017, out of 116 scheduled flights from Olguin, 38 had to be cancelled and a further 36 of the remaining 78 were delayed due to technical reasons, the airline claimed. http://www.rusaviainsider.com/antonov-158-regional-jet-fleet-grounded/ Back to Top Sikorsky begins CH-53 King Stallion deliveries to Marine Corps Sikorsky, a Lockheed Martin company, delivered the first CH-53 King Stallion helicopter to the U.S. Marine Corps May 16. The aircraft is the first of an expected 200 helicopters for the Marine Corps' fleet. The CH-53K is the new build replacement for the U.S. Marine Corps' aging CH-53E Super Stallion fleet. The CH-53E first flew in 1974 and entered service with the USMC in 1981. "Our first delivery of a CH-53K to the Marine Corps marks the start of a new generation of true heavy lift helicopter deliveries by Sikorsky that bring unsurpassed and expanded capability across the modern battlefield to provide tremendous mission flexibility and efficiency in delivering combat power, humanitarian assistance or disaster relief for those in need," said Dan Schultz, Sikorsky President and former CH-53 pilot. "With 18 additional aircraft in various stages of production already, the entire Sikorsky team, in partnership with our suppliers, is looking forward to additional deliveries to delight our customer." This first CH53K heavy lift helicopter will be stationed at Marine Corps Air Station New River in Jacksonville, North Carolina. There the helicopter enters into the Supportability Test Plan. U.S. Marines will conduct a logistics assessment on the maintenance, sustainment and overall aviation logistics support of the King Stallion. This assessment also will validate maintenance procedures with Marine Corps maintainers conducting hands-on care/upkeep of the aircraft. The Supportability Test Plan will ensure readiness and support on the flightline when CH-53K helicopters enter into service with the USMC. Sikorsky expects to deliver its second CH-53K helicopter to the USMC in early 2019. The CH-53K test program recently completed the following milestones: maximum weight single-point cargo hook sling load of 36,000 pounds (16,329 kilograms); forward flight speed of over 200 knots; 60 degrees angle of bank turns; altitude of 18,500 feet mean sea level (MSL); 12-degree slope landings and takeoffs; external load auto-jettison; and gunfire testing. "I am very proud of the work accomplished to deliver the most powerful helicopter ever designed into the hands of our Marines," Lt. Gen. Steven Rudder, Deputy Commandant for Aviation, said. "And confident in the teamwork and dedication in this program which will carry us to IOC (Initial Operational Capability) next year." Sikorsky is preparing its manufacturing facility in Stratford, Connecticut, to house CH-53K production beginning this summer. The heavy lift helicopter made its international debut and showcased its maneuverability and advanced fly-by-wire technology during demonstration flights at the recent ILA Berlin Air Show in Berlin, Germany. For the latest video and photos from the air show please visit our Twitter and Facebook channels. The CH-53K is an all new aircraft, using modern intelligent design. The rugged CH-53K helicopter is designed to ensure reliability, low maintenance, high availability and enhanced survivability in the most austere and remote forward operating bases. http://www.aerotechnews.com/blog/2018/05/18/sikorsky-begins-ch-53-king-stallion-deliveries-to-marine-corps/ Back to Top NTSB Backs FAA's Closure Of Texas MRO Shop Three NTSB board members, in a 2-1 vote, have ruled that FAA's emergency revocation of a Texas-based repair station's certificate was justified, overturning an administrative law judge's (ALJ) opinion that FAA over-reacted. The shop, Arlington, Texas-based AeroBearings, filed an appeal. AeroBearings has been cited for not having complete data on a key machine it uses, and falsifying return-to-service documentation--8130-3 forms--related to work done on the machine. FAA revoked the shop's certificate on March 1, citing findings during a May 2017 inspection. AeroBearings appealed, putting the matter before the ALJ, which is part of the NTSB. FAA then appealed the ALJ's ruling, sending the matter to the board. AeroBearings uses an FAA-approved military specification, or mil-spec, to repair and overhaul engine bearings, and developed its own machine to use in the inspection process. But some data on the machine's specifications were on a computer that belonged to the shop's now-deceased co-founder, and AeroBearings said nobody can access the password-protected files. The shop relies on previous results to verify the machine is working correctly, but FAA determined that the data needs to be available to support AeroBearings's approved ratings. NTSB agreed. "The argument that the machines are working as designed because the bearings are repaired and inspected within acceptable ranges, is not persuasive," NTSB wrote. NTSB also found justification for FAA's records-falsification findings, based largely on what it said was "missing information" on four 8130-3s cited by the agency. The 8130-3s indicated that AeroBearings performed work based on engine maintenance instructions, citing specific sections in CFM International, GE, and Pratt & Whitney manuals. But the forms did not explicitly state that some work was also done based on the mil-spec. "The Federal Aviation Regulations (FARs) require the records to be clear on their face," NTSB wrote in its decision. "It should not be up to the end user to have to request whether the maintenance records they possess are the complete set of records--that is the reason for maintaining scrupulously accurate records." Engine manufacturers do not recommend disassembling bearings for repair. Rather, bearings that do not pass inspections are sent back for full replacements. AeroBearings, seeing an opportunity to provide a service that costs less than replacement bearings, derived its repair process from mil-specs that the U.S. Air Force has used for decades. FAA signed off on AeroBearings's procedures in 2011. NTSB's linking of 8130-3s to a "complete set of records" is likely to raise eyebrows in the MRO community. Repair stations are required to include 8130-3s along with parts they have inspected or repaired. The one-page forms are not complete maintenance records, and are not meant to provide details on what was done to parts--they simply verify that the work performed is airworthy. NTSB's notion of an 8130-3's role as a complete set of records also appears to contrast with its view in a 1999 case against a mechanic who did not inspect work orders referenced on a return-to-service form. The mechanic believed the form itself, a yellow tag with hand-written notes including references to read work orders, signified the part was airworthy and installed it. But the work orders explained that the part would not comply with the manufacturer's specifications. NTSB faulted the mechanic for not referencing the rest of the maintenance records to see what was left off the form. "Had [the mechanic] taken the time to look at the work order referenced by the yellow tag, even if it might have been inconvenient to locate it, he would have immediately seen that the yellow tag in this instance did not signify a useable part," the board said in its decision. The board's dissenting vote came from NTSB Chairman Robert Sumwalt, who disagreed with the falsification charge as well as the decision to revoke the certificate. Sumwalt argued that an incomplete statement is not the same as a knowingly false one. "The majority would apparently find that any failure to be 'scrupulously accurate' in a mechanic's logbook would foreclose the ability of a respondent to subsequently argue that he or she did not knowingly make a false entry," Sumwalt wrote. He also said that AeroBearings's certificated should be suspended until it can demonstrate compliance with the FARs by reproducing the missing data lost on the computer--something the repair station says it could do. The revocation penalty requires a more involved certificate-reapplication process if the shop is cleared. FAA has not issued an official recall or safety-of-flight warning on bearings serviced by AeroBearings. But the agency confirmed that it is "advising operators to quarantine the parts that are still on the shelves" until further notice. http://www.mro-network.com/maintenance-repair-overhaul/ntsb-backs-faas-closure-texas-mro-shop Back to Top The Army Is Inspecting Its Entire Apache Helicopter Fleet for a Critical Defect The Army has ordered aviation techs to widen their search for a broken part that can send Apache helicopter rotors catastrophically ripping loose mid-flight, according to documents obtained by Task & Purpose, a terrifying defect that has resulted in recent deadly Apache mishaps. In April, Defense News reported the Pentagon ceased accepting deliveries of the AH-64E 'Echo' Apache months earlier due to a "critical" safety issue over the copter's strap pack nut, the component that keeps the rotor blades from separating from the airframe. But a February Army Aviation and Missile Command (AMCOM) guidance goes even further by explicitly expanding new inspections from Army aircraft flown in "severe coastal" areas to include "all AH-64 aircraft, regardless of location." The Safety of Flight guidance, dated February 18 and framed as an addendum to earlier inspection guidelines issued on October 23, 2017, also lays out new pre- and post-flight inspection routines. But many Apache pilots believe the Army is recklessly passing on this risk to its aircrews without actually fixing the systemic problem. "The Army is continuing to fly the fleet of AH-64s, accepting the risk, knowing the issue, and using increased inspections and distilled water rinses to mitigate the risk," one Apache aviator, who asked for anonymity out of concern for their career, told Task & Purpose. "The pilots aren't a fan of that tactic." The threat of corrosion is a constant enemy of airframe integrity for aviators operating in coastal areas. Indeed, the failure of the strap pack nut was responsible for the in-flight rotor separation and crash of an Apache AH-64D in Galveston, Texas on December 28, 2016, killing both soldiers on board. The Pentagon's halting of Apache Echo variants in April triggered yet another update to the guidance regarding inspections. "The Army has issued 'Safety of Flight' messages requiring units to increase standard maintenance inspections of the strap packs," AMCOM confirmed to Task & Purpose in a May 15 statement. "As part of that process, the units are also executing daily borescope inspections of the main rotor strap pack retention nuts for all Apache models." The new procedures for assessing the faulty component are primarily focused on increasing the frequency of inspections, according to AMCOM, a major problemfacing airframes across an increasingly strained aviation fleet. They include visual borescope inspections of all airframe strap packs prior to every Apache flight, and, according to the Army aviator, "distilled water rinses of the strap pack nut after the last flight of the day." When taken in the context of the Pentagon's halted Echo deliveries, AMCOM's broad expansion of strap pack inspections implies renewed concerns over the Apache itself. Indeed, strap pack issues plagued the airframe following a deadly crash of the newly-adopted airframe in 1987; a subsequent investigation revealed several cracked rotor hub retention nuts, according to 1992 report from AMCOM predecessor Army Aviation Systems Command. The active-duty aviator claimed that Army engineers have identified "over a dozen" cracked strap pack nuts on Apache airframes since the new inspection procedures were implemented in February, as well as dozens more strap packs that were "replaced or removed due to unsatisfactory condition or evidence of corrosion." AMCOM could not provide information regarding how many Apache aircraft had been designated non-mission capable as a result of the additional inspections, citing the branch's PEO Aviation office as the primary release authority. "These inspections, some which occur daily, look for corrosion, sealant errors and/or strap pack nut cracks," AMCOM said. "This is an additional requirement for our soldiers and crews, but this is how we are currently working to mitigate risk and keep the fleet safe to fly." http://nationalinterest.org/blog/the-buzz/the-army-inspecting-its-entire-apache-helicopter-fleet-25865 Back to Top Ennis company to unveil innovative new machine A Co Clare company will unveil a new production machine at a Limerick conference before it enters service at its Ennis facility next month. The Mid West's thriving aerospace and aviation industry will feature strongly at Manufacturing Solutions 2018, Ireland's largest ever manufacturing supply chain conference and trade show, hosted by the GTMA and Limerick Institute of Technology. Guest speakers from Boeing, Shannon IASC and Enterprise Ireland will discuss this growth industry which already employs over 1,600 people in more than 40 aerospace and aviation companies based in the region. Cook Medical's guest speaker will present a talk on the all important Industry 4.0, INCASE, and innovation partnership projects. Manufacturing Solutions 2018 will also facilitate the unveiling of the €600,000 state-of-the-art, CNC Penta Machine during the conference and trade show at LIT's Moylish Campus on Wednesday, June 13, 2018. Taking centre stage at the event, or more accurately taking over the 12×6 metre marquee erected to house it, the 15 tonne, eight metre long, two metre high Penta machine, acquired by Panalok Ltd, Ennis, will be delivered to the conference at LIT's Moylish Campus by a specially commissioned crane. The machine, which has previously been on show in Chicago, Milan and Birmingham, will be onsite at the Limerick conference demonstrating its ability to make a range of very small, high precision nuts and fasteners for the aerospace industry. After June 13, the Penta machine will be transported to Panalok's production factory in Ennis, where it will take up the production of fasteners for new aircraft and aircraft maintenance. Charlie Coughlan, Director Panalok Limited said: "This new CNC Penta machine represents a significant investment by Panalok into the future. Its five different spindles and 31 CNC axis of movement is the equivalent of five machines in one. "This multi-spindle machine is designed to machine difficult materials high in Nickel and Chrome which are particularly hard and tough. Being able to machine these materials opens up new markets for Panalok and will help grow jobs and expand the activities of the company in Ennis," he said. Programme leader in Precision Engineering at LIT, Ciaran O'Loughlin said: "Manufacturing Solutions 2018 will focus on major market sector technologies from aerospace and automotive to medical and materials." "We are particularly pleased therefore to have companies such as Cook Medical, Shannon IASC, Boeing and Enterprise Ireland available as guest speakers this year. These presentations, plus the large number of exhibitions and demonstrations makes this an event not to be missed." GTMA Chief Executive Officer, Julia Moore, said, "Last year's Manufacturing Solution event was the largest of its kind in the history of the GTMA. Already this year the number of exhibitions is up by 25% on 2017, pointing to a very busy and a productive day at LIT this June." Manufacturing Solutions 2018 will take place in LIT, Moylish Campus on Wednesday June 13, 2018 from 8.30am to 5pm. The conference and roadshow is supported by Shannon IASC, Cook Medical, Enterprise Ireland, Fáilte Ireland, Limerick Chamber, Shannon Chamber and Regional Skills. http://clareherald.com/2018/05/ennis-company-to-showcase-innovative-new-machine-58725/ Back to Top TN: Memphis Airport Board Lowers Landing Fees, Terminal Rents, Approves $41M Project Memphis International Airport's board on Thursday rolled back user fees for the coming fiscal year and approved a $41 million contract for a new maintenance and operations complex. Landing fees will go down about 0.5 percent, and terminal rents will fall about 13 percent starting July 1 because of reduced expenses, airport officials said. Landing fees, paid by airlines based on landed weight, and terminal rents, paid by passenger airlines and concessionaires, are major components of a $117.9 million budget that's down from $120.4 million this year. http://www.aviationpros.com/news/12413068/memphis-airport-board-lowers-landing-fees-terminal-rents-approves-41-million-project Back to Top DOT Watchdog To Review ADS-B, NextGen Equipage Citing concerns that only a "small fraction" of U.S. aircraft operators are prepared for the FAA's Jan. 1, 2020 ADS-B Out mandate, the U.S. DOT Office of Inspector General (OIG) will be conducting a review of equipage rates and plans for meeting that deadline. The House aviation subcommittee requested the audit that is now expected to get under way next month. It will have three primary objectives: determining equipage rates for ADS-B and other NextGen technologies, ascertaining reasons behind equipage decisions, and assessing the FAA's and operators' plans to meet the ADS-B Out deadline. Implementation of NextGen is a complex undertaking that requires investments from both the FAA and airspace users for the full benefits to be realized, the DOT OIG acknowledged. The FAA has put the ADS-B ground infrastructure in place but, with the ADS-B deadline fast approaching, only 48,000 of the estimated 241,000 affected aircraft are equipped. The joint investment is true not only for ADS-B, but also for systems such as Data Communications (DataComm) digitally linking controllers and pilots, the DOT OIG added. Besides putting the ADS-B ground infrastructure in place, the FAA has implemented the datalink technology at towers and is planning to implement DataComm at high-altitude facilities starting next year. https://www.ainonline.com/aviation-news/business-aviation/2018-05-18/dot-watchdog-review-ads-b-nextgen-equipage Back to Top China's first private rocket launch kicks off the country's commercial space race China celebrated the country's first rocket launch by a private spaceflight company this week. OneSpace Technologies, based out of Beijing, launched its OS-X rocket from an undisclosed location on a suborbital trajectory on Wednesday, reaching a reported altitude of 25 miles and traveling about 170 miles before falling back to Earth. It's the first demonstration of what the company says will become a scalable business built around sending small satellites into space. Until now, China's space industry has been dominated by the government's space agency, the China National Space Administration (CNSA). The agency has sent satellites, science missions, and even people to space. It has also put robots on the Moon, placed two space stations in orbit, and has big plans for the coming decades. After about half a century of a national space program, China decided to get private enterprise into space, too. President Xi Jinping made it a particular priority for the country in 2012, when he said he wanted China to become a "spaceflight superpower." And in 2014, the Chinese government formally allowed private companies to start working toward launching satellites. OneSpace is the first private Chinese company to launch a rocket, and it has big plans. The company's CEO, Shu Chang, told state-run news outlet China Daily that he hopes OneSpace becomes "one of the biggest small-satellite launchers in the world," and that it plans to perform 10 launches in 2019. Shu also likened the company to SpaceX in an interview with CNN Money. It's a comparison that other outlets have drawn, but one that doesn't totally bear out. For one thing, OneSpace is using different technology. While Shu says the company plans to eventually build rockets capable of lifting larger satellites (and potentially humans) into space, its current rocket stands just 30 feet tall and can only carry about 220 pounds into orbit. That's less than half the 70 foot height of SpaceX's first rocket, the Falcon 1, and far below the height (230 feet) and lift capacity (more than 50,000 pounds) of its current rocket, the Falcon 9. OneSpace also uses solid rocket fuel, which is generally more stable and simple to build, but means the rocket boosters can't be reused; SpaceX, meanwhile, uses liquid fuel, and recovers its rockets after launch. Shu told CNN that "this is the first rocket developed and built entirely with homegrown technology," but the outlet noted that he previously worked for a "state-owned aerospace company." OneSpace was reportedly founded with money from the State Administration for Science, Technology and Industry for National Defense, and this particular flight was paid for China's state-owned Aviation Industry Corporation, according to Quartz. And the rocket's other name (the "Chongqing Liangjiang Star") is a nod to state-run Chongqing Liangjiang Aviation Industry Investment Group - which OneSpace is partnering with to build a research and manufacturing base that will be part of the Chinese government's massive Belt and Road initiative. However, OneSpace is emulating SpaceX by straddling the line between being privately-run and government-funded. While Elon Musk's spaceflight company is private, it has benefitted greatly from a number of NASA contracts throughout the years as it built up its commercial customer base - including one that essentially saved the company from an early collapse in 2008. It's not yet clear whether OneSpace will shake up the small satellite market. There is a rush of competition aiming at specifically launching small satellites, from big corporations like Virgin to small startups like Rocket Lab to mainstays like Orbital ATK, all of which are trying to grab ahold of a nearly half-trillion dollar global business. It's also not clear whether US or other western satellite companies would be able to even buy a ride on a OneSpace rocket. The US government places strict controls on the export of satellites, which until a few years ago were still classified as weapons. "Chinese rockets are not an option for US companies," a spokesperson for Planet, one of the leading operators of Earth-imaging satellites, tells The Verge. OneSpace already has plenty competition at home to deal with, too. The loosening of restrictions in 2014 has lead to the creation of around a half-dozen spaceflight startups, all of which are looking to launch satellites, all while the government's space program turns its eyes to bigger, bolder projects like a permanent space station and an ambitious robotic Mars mission in 2020. https://www.theverge.com/2018/5/19/17369200/china-private-rocket-launch-onespace-satellites Curt Lewis