October 29, 2018 - No. 085 In This Issue AAR Eagle Career Pathway Program at Western Michigan University to Boost Aviation Maintenance Instruction Paulding rep foresees 'strong' state funding push for $35M aircraft training facility UDAN Scheme Set to Gain Traction as TruJet Partners With IBS Software Inhofe touts FAA bill's effect on state aviation workforce as more workers needed Frontier Airlines Reaches Five-Year Contract with Maintenance Controllers' Union GE Digital Launches New Asset Service Management Solution Blackpool Airport: Exciting new masterplan is ready for take off, but will holiday flights return? AeroVision International Signs ERJ Parts Support Agreement With Contour Airlines LG Electronics and Lufthansa Technik Establish Joint Venture for Aircraft Displays and Systems Call to place SA Express under business rescue as it is allegedly bleeding R1m a day Elon Musk's big Falcon Heavy rocket might find a market after all AAR Eagle Career Pathway Program at Western Michigan University to Boost Aviation Maintenance Instruction, Experience KALAMAZOO, Michigan, October 26, 2018 - Western Michigan University's new partnership with AAR, a global provider of aviation services, is expected to enhance instruction for students studying to become aircraft maintenance technicians, providing real-life work experience and an opportunity to be hired upon graduation. The newly launched AAR Eagle Career Pathway Program at WMU will expand the University's aircraft maintenance, repair and operating supply instruction, and include job shadowing and mentoring opportunities, as well as the sharing of proprietary software information with students interested in careers as aircraft maintenance technicians. Under this first-of-its-kind program for aviation maintenance, students will receive academic support, be monitored throughout their academic careers and have an opportunity to interview with AAR after graduation. Dr. Raymond Thompson, WMU associate dean of the College of Aviation, joined Ryan Goertzen, AAR vice president of maintenance workforce development, to announce the partnership October 26 at the University's Aviation Education Center in Battle Creek. "AAR is taking a leadership role in providing career pathways and guidance for those interested in pursuing a career in large aircraft maintenance," Thompson says. "The technician shortage is real and growing worse. Partnering with AAR provides the College of Aviation opportunity to attract a diverse group of youth into aviation maintenance, a well-paying and growing industry." Thompson adds that AAR Eagle further distinguishes WMU's already competitive aviation program with yet another resource for students pursuing a career in a high-demand field. It also works to help close the gap between the supply of mechanics and demand for them projected within the next decade that threatens the expansion and modernization of the global airline fleet. "AAR EAGLE is about growing the maintenance technician talent pipeline and educating high school students on the exciting opportunities available to them in aviation maintenance," says Brian Sartain, AAR senior vice president of repair and engineering services. "Working alongside universities and colleges, like Western Michigan, we will provide a five-year career path program with access to the largest maintenance repair and overhaul network of facilities in the Americas. Our efforts will help address the industrywide shortage of technicians as well as guarantee high- paying jobs to participants in the program." For more program information, contact Thompson at raymond.thompson@wmich.edu or (269) 964- 8020, or Goertzen at ryan.goertzen@aarcorp.com or (918) 576-9981. About AAR AAR is a global aftermarket solutions company that employs more than 6,000 people in over 20 countries. Based in Wood Dale, Illinois, AAR supports commercial aviation and government customers through two operating segments: Aviation Services and Expeditionary Services. AAR's Aviation Services include parts supply; OEM solutions; integrated solutions; maintenance, repair, overhaul; and engineering. AAR's Expeditionary Services include mobility systems and composite manufacturing operations. Additional information can be found at www.aarcorp.com. https://www.aviationpros.com/press_release/12434794/aar-eagle-career-pathway-program-at- western-michigan-university-to-boost-aviation-maintenance-instruction-experience Back to Top Paulding rep foresees 'strong' state funding push for $35M aircraft training facility At least two state lawmakers said they will need to make sure the next state budget includes funding for the new Aviation Academy in Paulding County. Gov. Nathan Deal recently announced the Technical College System of Georgia will build a $35 million Aviation Academy at Silver Comet Field airport in west Paulding County. Deal is set to leave office in January because of term limits and his successor will present the 2020 state budget for lawmakers to consider. District 67 State Rep. Micah Gravley, R-Douglasville, and District 30 State Sen. Mike Dugan, R- Carrollton, began working to bring the academy to Paulding in late July after the governor's office contacted them about it. Dugan said the Georgia General Assembly has not yet approved the funding. He said the governor may have announced the plan but he did not "relax" on any proposed construction project in his district until the money is appropriated. "If you do (relax), you won't get it done," Dugan said. He said it will be up to the Paulding County legislative delegation to make sure the money is included in the budget and remains reserved for the academy during the legislative process of approving the document. Gravley said he believed "the market will demand" a new metro Atlanta aviation maintenance training school be funded because of the need for it. He said he knew all current Paulding delegates, including Dugan, District 31 State Sen. Bill Heath, R-Bremen; and District 66 State Rep. Kimberly Alexander, D-Hiram, will be "fighting for this," Gravley said. He also said he believed those who replace two veteran legislators, District 17 State Rep. Howard Maxwell, R-Dallas, and District 19 State Rep. Paulette Rakestraw, R-Hiram, will work hard for it, as well. "I think it will be a strong, coordinated effort from the legislative delegation to ensure that this continues to be funded," he said. Maxwell is retiring after eight terms in the House while Rakestraw lost a re-election bid earlier this year after four terms. Gravley also said he believed "the new governor will support this." Republican nominee Brian Kemp "sees the importance of this," he said. The Aviation Academy will be part of Chattahoochee Technical College, which will oversee operations of the new facility on a four-acre site southeast of the airport's terminal building, Deal said. The Paulding County Airport Authority voted last week to transfer the site to the Paulding County Industrial Building Authority, which promptly voted to transfer the site to the state government for the academy. The Paulding County Commission also voted to concur with the transaction, which was required because it is a co-sponsor of federal grants to the airport. https://www.mdjonline.com/neighbor_newspapers/west_georgia/news/paulding-rep-foresees- strong-state-funding-push-for-m-aircraft/article_c279f0fe-d960-11e8-8a24-33d6eef2df7f.html Back to Top UDAN Scheme Set to Gain Traction as TruJet Partners With IBS Software The Government of India's ambitious UDAN scheme is set to gain on-ground traction as TruJet kick- started its pan Indiaplans by inking a deal with Aviation IT specialist, IBS Software (IBS), for its Passenger Service System (PSS). Under the contract IBS will implement the full suite of the iFly Res solution for passenger reservations covering the inventory, fares and ticketing functionality. The 100% cloud-based solution will enable online/Internet based booking engine (IBE) for both B2C & B2B as well as online & counter check-in at all regional airports. Hyderabad-based TruJet is the first Indian airline to be granted license by the Directorate General of Civil Aviation (DGCA) to operate on all UDAN sectors. Largely a regional airline thus far, TruJet will, through the UDAN scheme, emerge as a mainstream player in the aviation map of India. The airline currently operates a fleet of 5 ATR aircrafts and has signed an agreement with 9W to wet lease 10 more ATR aircrafts. UDAN (Ude Desh ka Aam Naagrik- Let the Common Man Fly) is a regional airport development and regional connectivity scheme of the Government of India, launched in 2017, to make flying affordable for the masses, while promoting a balanced regional growth across the country. IBS' iFly Res, one of the first New Distribution Capability (NDC) compliant PSS systems in the world, comprehensively addresses all the key functions including passenger reservations, schedules and flight control, inventory control, fares & ticketing and departure control. Once implemented, iFly Res will help TruJet in the dynamic management of blocked and free-sale inventory, real-time visibility on operations and quick decision making which provides a platform for an improved level of customer service and cost optimization. The SaaS based reservation solution will also enable TruJet to integrate seamlessly with other partner airlines for codeshare operations as well as future goods distribution. IBS Software offers end-to-end IT systems covering diverse process areas - passenger services, cargo operations, flight and crew operations, airport operations and aircraft maintenance engineering - giving it the unique position as the company that provides the widest range of IT products to the aviation industry in the world. "The change of Trujet's PSS to IBS' iFly Res marks our transition from a regional start up to a national airline, poised to bring connectivity and state-of-the-art booking functionality to the common man of India. We are proud that our team is Indian and our systems are also Indian. When the iFly Res system is commissioned in Trujet, we will bring incredible travel bargains and 24/7 booking on a wider scale than we have ever done before", said K V Pradeep, Group Director, TruJet. "This partnership with TruJet is significant for IBS as it heralds our entry into the Indian PSS market, till now dominated by overseas names. The widening footprint of our PSS solution is a true testament to the substantial investments we have made in making the solution truly world class. iFly Res, has over the years, successfully withstoodstringent due diligence to emerge as the best suited PSS to meet the changing business requirements of airlines. We are delighted to associate with TruJet in its quest to be one of the premier airlines operating in India," said V K Mathews, Executive Chairman, IBS Software. About TruJet Trujet, headquartered at Hyderabad, India, operates to 14 destinations in south and central India. Currently owning 5 ATR aircrafts, TruJet plans to acquire 2 more, soon. On 27 Apr 2017 Trujet inducted a flight between Hyderabad and Nanded, the first of its services under the Government of India's UDAN Scheme. Ministry of Civil Aviation issued a certificate of appreciation to Trujet for successfully commencing all the routes under UDAN 1. Trujet was also conferred the MOST PROMISING AIRLINE Award by South India Travel Awards. Under UDAN 2 scheme, Trujet will connect cities like Kandla, Porbandar, Jaisalmer, Keshod, Nasik and Jalgaon with Ahmedabad and thus will transition from being a Regional carrier to a National carrier. https://www.prnewswire.com/news-releases/udan-scheme-set-to-gain-traction-as-trujet-partners- with-ibs-software-838640047.html Back to Top Inhofe touts FAA bill's effect on state aviation workforce as more workers needed U.S. Sen. Jim Inhofe lauded the recently passed FAA Reauthorization Act of 2018 on Friday, legislation he said will strengthen the state's aviation workforce. Speaking alongside Inhofe at American Airlines' Tulsa Maintenance Base, also known as Tech Ops- Tulsa, local officials said the national labor market for aviation workforce professionals is shrinking: Only 2 percent of the workforce is new, with 30 percent at or near retirement age. "Our nation is truly at risk if we do not take action to build a strong pipeline for the aerospace industry," said Steve Tiger, superintendent and CEO of Tulsa Tech. In the next 20 years, the entire industry is estimated to need 790,000 new civil aviation pilots and 754,000 new maintenance technicians. By 2022, the industry is scheduled to have a shortage of skilled workers. "We have the best ready-made market of mature people who are in this industry," Inhofe said. "Now ... we have about three employees who are disappearing for each two that are coming on board in this industry. So we have to get more of the young guys over here. "We're the natural place to have it happen. And I would like to get to the point - in fact, I will get to the point - that Oklahoma is going to be the aviation capital of America." Also attending the event were representatives from American Airlines, Spartan College of Aeronautics and Technology, Tulsa International Airport and the Tulsa Regional Chamber. Aviation and aerospace businesses in Oklahoma generate $43.7 billion annually in economic activity, according to an Oklahoma Aeronautics Commission report released in 2017, making aviation and aerospace the second-largest economic engine in the state behind oil and gas. "We need to move forward," said John Yackus, senior vice president of flight operations for Spartan. "We need to be in the same place we were in 1968, one year ahead of having a man on the moon. "We need to have that type of foresight. We need that type of vision. That type of vision is being supplied by the senator," he said. Inhofe is a member of the Senate Commerce, Science and Transportation Committee and a certified pilot with more than 11,000 flight hours. The bill he spoke about Friday will reauthorize the FAA for five years and contains dozens of provisions that he authored. The provisions in the FAA Reauthorization Act include the Fairness for Pilots Act and the FLIGHT Act. The Fairness for Pilots Act improves transparency for pilots subjected to FAA enforcement proceedings by requiring the FAA to articulate the specific activity under investigation and provide specific documentation to pilots. It also strengthens the Notice to Airmen program by requiring that all notices be posted in a publicly available, central forum online. The FLIGHT Act ensures federal investment in general aviation airports that support local economic development by preventing money from being redirected by the FAA. In addition, it streamlines environmental regulations so general aviation airports can invest in themselves. The bill also ensures the long-term stability of the federal contract tower program by updating the FAA's cost-benefit analysis, protecting the six contract towers in Oklahoma, and prevents the FAA from eliminating Contract Weather Observer services at 57 airports, including Tulsa International Airport and Will Rogers World Airport in Oklahoma City. https://www.tulsaworld.com/business/aerospace/inhofe-touts-faa-bill-s-effect-on-state-aviation- workforce/article_fb61947e-0d48-50a6-9ac5-5485ee8a0fe3.html Back to Top Frontier Airlines Reaches Five-Year Contract with Maintenance Controllers' Union Oct. 26--Denver-based ultra-low cost carrier Frontier Airlines on Wednesday announced it reached terms on a contract with its maintenance controllers. The collective bargaining agreement, struck between Frontier and the International Brotherhood of Teamsters' Local 455 Airline Division, is the maintenance controller group's first with the airline. It is in place for five years, according to a news release. "We would like to recognize the efforts of the International Brotherhood of Teamsters and the National Mediation Board in helping us come together on a deal that benefits everyone and ensures security for the future," Gary Appling, Frontier's vice president of technical operations, said in a statement. The contract is the fifth Frontier has reached with different segments of its workforce in the last two years, the airline said. Since December 2016 it has finalized agreements with its aircraft appearance agents, material specialists, ground service equipment technicians and tool room attendants and aircraft dispatchers. The airline has not reached a new agreement with its pilots after two years of negotiations. That negotiation, now being overseen by a National Mediation Board, has prompted the members of Frontier's unit of the Air Line Pilots Association to threaten a strike if a new deal cannot be reached. https://www.aviationpros.com/news/12434779/denvers-frontier-airlines-reaches-five-year- contract-with-maintenance-controllers-union Back to Top GE Digital Launches New Asset Service Management Solution GE Digital has just launched a new asset service management software solution aimed at maximizing uptime and improving maintenance outcomes. Predix ServiceMax Asset Service Management (ASM) is catered to planners, dispatchers and technicians with a host of functionality for keeping track of and understanding the service requirements of assets ranging from components and spares to engines and aircraft. "Companies that operate mission critical assets have unique needs from our traditional field service management customers, such as OEMs and service-only organizations," says Scott Berg, CEO, ServiceMax. "In recognizing these pain points for operators, our new ServiceMax ASM solution was built to meet the needs of companies that service a wide array of products they operate, increasing uptime, optimizing resource utilization and improving safety and compliance." Berg says assets for industries such as aviation have become smarter and more complex thanks to technology such as IoT connectivity and predictive analytics, which requires a solution that goes behind traditional enterprise asset management software. With ServiceMax ASM, Berg says an example scenario of its usage within MRO could be within an AI-driven predictive maintenance schedule that has determined a predictive failure point and optimized what maintenance should take place and when. "What the ServiceMax solution does is take that activity and assist the dispatcher or planner to try and identify the ideal technician or crew of technicians assigned to that work," explains Berg. A technician would then access ServiceMax ASM via mobile device in the field to look up the work they have been assigned, service history on an asset, instructions, IoT data, sensor readings and more. After work is finished, the software can be used to record the work completed and parts consumed as well as handle compliance-required documentation and maintenance records. "You get a very intelligent sort of dispatch from a predictive standpoint," says Berg. "You get intelligence in matching the right engineer and technician for the exact requirements of the job, and you get a very quick sort of closed-loop process where you immediately digitally recorded what the service engineer did, eliminating the need for any pieces of paper, binders and forms along the way." In addition to maximizing uptime and minimizing cost, Berg says the software solution helps develop better documentation and records of service activities that are actually taken versus recommendations and protocol from service manuals. "I think it improves the job of the technician, because you're handing them a high-end device where they're better equipped with real-time information of the situation they're seeing and the ability to reach out to others for help," he says. GE Digital has been testing the product concept with some of its existing customers, including OEM manufacturers with asset operation or complex installation service businesses. Berg says these customers have pushed GE Digital to develop some of the specific capabilities available in ServiceMax ASM, particularly in terms of handling more complex work assignments with longer durations. ServiceMax ASM can be combined with other Predix solutions-such as Predix Asset Performance Management, which can provide predictive AI capability for maintenance-but the software is also available as a standalone application in the cloud. The software will be subscription-based and priced monthly by the user based the size of workforce and number of assets being managed. The software is currently in a beta period and will become available in early 2019. https://www.mro-network.com/software/ge-digital-launches-new-asset-service-management- solution Back to Top Blackpool Airport: Exciting new masterplan is ready for take off, but will holiday flights return? A new masterplan for Blackpool Airport unveiled today outlines a £3.45m investment to safeguard aviation in the resort. Key to the strategy to keep the Squires Gate terminal viable will be a focus on executive flights, retaining a key off-shore helicopter contract and ploughing cash in to upgrade worn out aircraft hangars. A new apron for jets could be built while opportunities to build up businesses such as aircraft maintenance and flight training will be pursued. But a report going before councillors says bringing back holiday flights could not currently be justified on cost grounds. A new apron for jets could be built while opportunities to build up businesses such as aircraft maintenance and flight training will be pursued. But a report going before councillors says bringing back holiday flights could not currently be justified on cost grounds. Outlander Trench Coat Promoted by torrid.com The report has been produced by industry consultants York Aviation who were commissioned by Blackpool Council which bought the airport just over a year ago. Its findings say the 400 acre airport has an important role to play in developing the wider enterprise zone. Proposals include replacing old hangars with new aircraft facilities closer to the runway, thus freeing up land alongside Squires Gate Lane for new business units. This would both create employment and bring in additional business rates to the council which could be ploughed back into the airport. Coun Mark Smith, cabinet member for regeneration, enterprise and economic development for Blackpool Council said: "The York Aviation report provides clear guidance for future marketing opportunities and identifies priorities for investment. "It gives an invaluable steer on management roles and responsibilities to enable a long term, sustainable, operational airport and the successful delivery of the overall enterprise zone. "At this stage, it is clear the reintroduction of commercial flights is not financially viable. "Similarly, the operation of smaller services such as flights to the Isle of Man, Dublin and Belfast, would break even at best. "If we are to maintain an operational airport in Blackpool it is critical we take heed of the financial reality. "The airport is an integral part of the future development of the enterprise zone and a much loved and valued transport asset for Lancashire. "Our focus and dedication is to support the business sectors already operating and to promote opportunities for new growth for the airport." The council has allocated borrowing of £28.8m over the next three years for development of the Blackpool Airport Enterprise Zone. This includes £3.45m towards relocating and replacing older aircraft hangars, providing a new apron and a new offshore helicopter terminal. It is estimated the land released by the relocation of the airport operational facilities, together with the new airport facilities, could generate investment to support 2,156 new jobs and £34m in additional business rates to fund further investment. The report is due to go before Blackpool Council's executive on Monday November 5. Why are holiday flights unlikely to return? York Aviation considered the reintroduction of commercial passenger services "on a similar scale to those previously operated by Jet2." But the increased costs associated with such a move "would result in a loss of around £590,000 per annum". The reinstatement of low volume services across the Irish Sea would "still leave the airport profitable, but on a much reduced scale". Research found around 1.5 million passengers a year would be needed to justify the investment required to accommodate holiday flights. At the height of the Jet2 era, passenger numbers at Blackpool peaked at 700,000 per year and it is estimated the current demand is only around 250,000. Capital costs for a passenger terminal and car park would increase to around £42m. The report says investment "would far outweigh the income that could be generated." It concludes "this is not an approach which can be recommended at the current time" but adds this "does not preclude it being revisited in the future should market conditions change considerably." https://www.blackpoolgazette.co.uk/our-region/blackpool/blackpool-airport-exciting-new- masterplan-is-ready-for-take-off-but-will-holiday-flights-return-1-9416245 Back to Top AeroVision International Signs ERJ Parts Support Agreement With Contour Airlines MUSKEGON, Mich., Oct. 27, 2018 /PRNewswire-PRWeb/ -- AeroVision International has signed a long-term component spares and exchange agreement with Tennessee-based Contour Airlines. The parts support agreement provides Contour with access to an extensive inventory of components used to support their growing fleet of ERJ 135 & 145 aircraft. Parts will be forward- positioned at Contour maintenance facilities in Tennessee, Georgia, Arizona, California, West Virginia, and supplied from AeroVision's main Logistics Center in Muskegon, Michigan. "AeroVision is customizing service solutions for Contour Airlines to meet their specific operational, financial and maintenance requirements," said Pete Gibson, Vice President of Sales & Marketing for AeroVision. "We are excited to be chosen as a key partner for Contour." "We selected AeroVision because of their responsive and solutions-focused customer service team and their ability to create and deliver a customized offering that addressed all of our needs," said Matthew Chaifetz, CEO of Contour. "As we evaluated options to support our rapid growth, it became clear that AeroVision was the ideal business partner, willing to adapt to a model that best fits our business, rather than imposing a one-size-fits-all approach." About AeroVision International: Founded in 2003, AeroVision International has become a trusted business partner to business and regional aircraft MR&O facilities and operators worldwide. AeroVision supplies business and regional commuter engines and engine parts (PT6 / PW100 / JT15D / PW300 / PW500 / TFE-731 / AE3007) in support of operators and MRO facilities around the world. With a strong focus on Embraer ERJ-135/145 and EMB120 aircraft, AeroVision offers sales & leasing of aircraft, engines, auxiliary power units, avionics and landing gear as well as outright or exchange sales of all major internal and external spare parts. About Contour Airlines: Contour Airlines is the scheduled service brand of Contour Aviation. Contour was formed in 1982 and has since grown to become one of the largest Part 135 aircraft operators in the country. The company is a diverse aviation services provider that includes Part 135/91aircraft management and charter, scheduled airline service, three Fixed-Base Operations in Tennessee, a FAR Part 145 certified repair facility, an aircraft sales division and FAR 141 pilot and maintenance training. For more information, visit https://www.contourairlines.com. https://markets.businessinsider.com/news/stocks/aerovision-international-signs-erj-parts-support- agreement-with-contour-airlines-1027661352 Back to Top LG Electronics and Lufthansa Technik Establish Joint Venture for Aircraft Displays and Systems SEOUL, South Korea and HAMBURG, Germany, Oct. 25, 2018 - LG Electronics (LG) and Lufthansa Technik AG will jointly develop, produce and market LG's innovative OLED displays for commercial airplane cabins, the companies announced today. The new venture will be based in Hamburg, Germany and will commence operation in the first half of 2019. The new joint venture will combine LG's advanced, lightweight and flexible OLED display technology with Lufthansa Technik's aviation business capabilities to create new markets for on-board aircraft applications such as welcome board screens and interior linings. "We are very excited to be joining hands with Lufthansa Technik to expand the reach of LG's innovative consumer electronic technologies to commercial aircrafts," said Soon Kwon, president of the LG Business-to-Business Company. "Both partners contribute a globally recognized reputation in their respective business areas to create a new flying experience for the passengers," added Dr. Johannes Bussmann, chairman of Lufthansa Technik's executive board. Closing of the agreement, which was inked earlier this week in Hamburg, is subject to regulatory approval. About Lufthansa Technik AG With some 35 subsidiaries and affiliates, the Lufthansa Technik Group is one of the leading providers of technical aircraft services in the world. Certified internationally as maintenance, production and design organization, the company has a workforce of more than 25,000 employees. Lufthansa Technik's portfolio covers the entire range of services for commercial and VIP/special mission aircraft, engines, components and landing gear in the areas of digital fleet support, maintenance, repair, overhaul, modification, completion and conversion as well as the manufacture of innovative cabin products. For more news and information on Lufthansa Technik, please visit: www.lufthansa-technik.com About LG Electronics, Inc. LG Electronics, Inc. (KSE: 066570.KS) is a global leader and technology innovator in consumer electronics, mobile communications and home appliances, employing 77,000 people working in 125 locations around the world. With 2017 global sales of USD 55.4 billion (KRW 61.4 trillion), LG comprises five business units - Home Appliance & Air Solutions, Home Entertainment, Mobile Communications, Vehicle Components and B2B - and is one of the world's leading producers of flat panel TVs, mobile devices, air conditioners, washing machines and refrigerators. For more news and information on LG Electronics, please visit www.LGnewsroom.com. About LG Business Solutions The LG Electronics USA Business Solutions division serves commercial display customers in the U.S. lodging and hospitality, digital signage, systems integration, healthcare, education, government and industrial markets. Based in Lincolnshire, Ill., with its dedicated engineering and customer support team, LG Business Solutions delivers business-to-business technology solutions tailored to various business environments. LG Electronics USA Inc., based in Englewood Cliffs, N.J., is the North American subsidiary of LG Electronics Inc., a $55 billion global innovator in technology and manufacturing. LG is a 2018 ENERGY STAR® Partner of the Year-Sustained Excellence. www.LGSolutions.com. https://www.digitalsignageconnection.com/lg-electronics-and-lufthansa-technik-establish-joint- venture-for-aircraft-displays-and-systems Back to Top Call to place SA Express under business rescue as it is allegedly bleeding R1m a day SA Express should be placed into business rescue and possibly liquidated, says the DA, following a report that the state-owned airline paid about R150m to lease 21 aircraft in the last five months. According to Fin24 sister publication City Press, sources claim that of the R150m, about R80m was used to pay for 13 aircraft, which have not flown for five months. They said most of them may never fly again because they are scrap. The South African Civil Aviation Authority (SACAA) suspended SA Express' Aircraft Maintenance Organisation (AMO) and Air Operators Certificate (AOC) in May, reported Fin24. The SACAA also suspended the Certificates of Airworthiness for nine of the 21 aircraft operated by the airline, citing non-compliance in relation to 17 specific findings. The SACAA reinstated SA Express' AMO certification in June. City Press calculated that in June and July, SA Express paid about R50m to lease its 21 aircraft, none of which flew a single flight in those two months. The publication reported that SA Express is losing more than R1m a day, paying leases on aircraft that lie idle in hangars because they are too unsafe to fly. At the end of July, the CAA granted SA Express airworthiness certificates for two aircraft. And by the end of last month, the regulator authorised the airline to fly eight aircraft. SA Express spokesperson Madikwe Mabotha said the airline had made significant progress since it was grounded in May. "Returning from three months' lay-off to full operation was never going to be easy," he said. Finance Minister Tito Mboweni announced the government will provide additional funding for SA Express, reported Fin24. "To support a sustainable reconfiguration of our airline portfolio, in 2018/19 government will provide additional funding for SAA and South African Express Airways," he said in his mini budget speech. Mabotha said the R1.2bn bailout would help the company settle some of its debt and return to financial stability. However, the DA's finance spokesperson Alf Lees said it "is mind-boggling" that National Treasury wants to saddle taxpayers with more funding for the airline. "It is unconscionable that SA Express is kept 'alive' with taxpayer bailouts simply to provide 'employment' and salaries to highly paid executives and staff." Lees said the DA will propose amendments to the Adjustments Appropriation Bill to prevent the payment of the R1.7bn to SA Express. SA Express should be placed into business rescue, and if this fails, it must be liquidated, he said. https://www.fin24.com/Companies/Industrial/sa-express-losing-r1m-a-day-of-taxpayers-money- report-20181028 Back to Top Elon Musk's big Falcon Heavy rocket might find a market after all Two companies have signed deals to launch their satellites on SpaceX's Falcon Heavy rocket, the most powerful space vehicle in operation today. ViaSat, which provides internet service from space, chose the Falcon Heavy to launch one of its next generation internet satellites between 2020 and 2022. Ovzon, a Finnish start-up that expects to deliver mobile broadband from orbit, hired SpaceX's big lifter to deliver their satellite on a similar time-frame. Market maker SpaceX also sold one of the rockets to the US Air Force this summer, to go along a previously planned experimental mission bought by American space command. The vehicle is also contracted to launch a satellite for the company ArabSat. Beyond those five upcoming flights scheduled for the Falcon Heavy, with the first expected in spring 2019, the satellite operator Inmarsat has an option to fly on the Falcon Heavy as well. Since its debut launch put Elon Musk's red Tesla roadster into orbit around the sun in February 2018, the role of the vehicle hasn't been entirely clear. SpaceX's Falcon 9 continues fly satellites and missions to the International Space Station about twice a month, while the company's design team is focused on the BFR, an even larger rocket to realize the company's vision of travel within the solar system. The Falcon Heavy cost of more than $500 million to design and develop, and offers a starting price is $90 million, though the version purchased by the US Air Force cost $130 million. Though we don't know the vehicle's profit margin, it's safe to say it will take many flights for SpaceX to recoup its investment in Falcon Heavy. Satellite market analysts have been skeptical about the Falcon Heavy's ability to get into the black because of softness in the marketfor the kind of large geostationary satellites it is designed to fly. But industry sources predict that it would win launch contracts from the US government because it is significantly cheaper than the other American heavy-lift rocket, United Launch Alliance's Delta IV. Vulcan's shadow United Launch Alliance is currently building a new rocket called Vulcan Centaur that will compete with SpaceX's offerings and replace its own Atlas and Delta systems. ULA even teamed with Amazon billionaire Jeff Bezos, whose company Blue Origin will build the engine for Vulcan. Earlier this month, the US Air Force chose three companies to develop rockets for future military missions, handing out several billion dollars in funding. Surprising many, SpaceX didn't win an award, with federal funds going to ULA, Northrup Grumman and Blue Origin instead. SpaceX could still compete for these contracts when they come up for bid sometime after 2020. A new slide detailing the projected capabilities of the Vulcan, which is expected to cost less than $150 million, gives us an idea of how that competition might go. The chart below shows two versions of the Vulcan, one with two attached solid rocket boosters and another with six, compared to the Falcon 9 and the Falcon Heavy. Each one is measured by what they can carry to different orbits-low-earth orbit (LEO), where the International Space Station is; a geostationary transfer orbit (GTO), which puts the satellite on a path to orbit high above one place on earth; and geostationary orbit (GEO), which is a direct flight to orbit high above one place on earth. The next generation of rockets As both are advertised, the Vulcan Centaur does seem competitive with SpaceX's Falcon 9, although we won't know for sure until we see the sticker price. Interestingly, the six-booster configuration is still not as capable as the Falcon Heavy. However, the Falcon 9 has never flown a mission direct to geostationary orbit, and while Falcon Heavy can, we don't know how much payload it can take. While there is an even larger Vulcan version expected in 2023, it does seem like the Falcon Heavy could be remain a competitive choice for national security launches for the foreseeable future. There are two other potential choices in the running: Northrup Grumman's proposed solid-booster rocket OmegA could compete as a heavy-lifter carrying as much as ten metric tons to geostationary orbit, but its cost is not public. Blue Origin's New Glenn is a huge reusable rocket that promises to carry as much as 45 metric tons to low-earth orbit, but may not be ready until 2022. The big mystery yet to be solved is which of these new rockets can compete with SpaceX's rock- bottom prices. https://qz.com/1439557/spacex-is-building-a-market-for-falcon-heavy/ Curt Lewis