November 12, 2018 - No. 089 In This Issue Bristow Group To Combine With Columbia Helicopters In A $560 Million Transaction Rolls-Royce Introduces New Engine Change Service Closing the gap: Skills must catch up to demand in aviation sector, officials say Boeing, Safran Joint Venture to Start Operation AVIATION EXPERT URGES FG TO INVEST IN AIRCRAFT MAINTENANCE, REPAIR Air New Zealand and French plane maker to develop electric aircraft Japan fails to move forward on SDF inspection of Futenma base TS&S Achieves Chinese Approval For V2500 MRO Deadly Lion Air Crash Puts Spotlight on Safety Culture Within Indonesia's Airlines SpaceX to test hybrid BFR next year. Bristow Group To Combine With Columbia Helicopters In A $560 Million Transaction, Creating A Leading Global Diversified Industrial Aviation Solutions Company HOUSTON, Nov. 9, 2018 /PRNewswire/ -- Bristow Group Inc. (NYSE: BRS), the leading provider of global industrial aviation services, announced today that it has signed a definitive agreement to combine with privately-held Columbia Helicopters, Inc. ('Columbia') for $560 million. Columbia will be designated as an unrestricted subsidiary under the Columbia name and air operating certificate (AOC). Bristow expects the complementary transaction to strengthen the company's operational and consolidated financial profile by delivering adjusted EBITDA and cash flow accretion; reducing consolidated net leverage; diversifying the combined company's fleet and customer base; expanding its addressable market, especially in the U.S. government sector; and producing significant incremental revenue opportunities. Founded in 1957 by Wes Lematta and headquartered in Aurora, Oregon, Columbia is the leader in heavy-lift helicopter operations and trusted expert in maintenance, repair and overhaul services, with global operations servicing end-markets that include defense, firefighting, onshore oil and gas, infrastructure and forestry. For the twelve months ended September 30, 2018, Columbia recorded revenues of approximately $281 million and adjusted EBITDA of approximately $117 million1,2. Columbia's fleet of operating helicopters is comprised of 21 high return tandem rotor Vertol 107 and Chinook CH-234 / CH-47D; with additional non-operational airframes available for deployment with minimal capital expenditure. Columbia also has full MRO and certification capabilities. 1 A full reconciliation of non-GAAP financial measures is included at the end of this news release. 2 Historical metrics normalized for the 2017 divestiture of Helifor business line. Compelling Strategic and Financial Rationale: * Will create a global diversified industrial aviation solutions company focused on safe aviation: Together, the companies will have 304 operating aircraft and an enhanced platform to provide comprehensive aviation mission services to its expanded client base. Bristow's customer base will be significantly more diverse geographically and by end-market, with contributions from the oil and gas industry reduced to 58% of pro forma revenue for the trailing twelve-month period. * Strengthens operational and financial profile of combined company with adjusted EBITDA and cash flow accretion for deleveraging: Columbia generates significant contracted revenue streams from the U.S. government and the transaction is expected to more than double the combined annual adjusted EBITDA on a consolidated basis. Prior to synergies, Columbia is expected to generate $125 million to $130 million of adjusted EBITDA for the twelve-month period ending March 30, 2019 and $100 million to $105 million of adjusted EBITDA less capital expenditures, which are primarily related to heavy aircraft maintenance capex. Bristow believes it will be able to utilize its existing net operating losses to optimize the combined company tax position. The combined company expects to achieve annual cost savings, including utilizing Columbia's MRO capabilities to reduce Bristow's maintenance expenses. * Highly complementary businesses drive meaningful revenue growth opportunities: The Company expects significant opportunity to leverage its global network of AOCs to bring Columbia's capabilities to more global markets and expand Columbia's addressable market to include additional infrastructure and firefighting customers. In addition, the Company expects to capitalize on Columbia's strong past performance with the U.S. government and Cargo Airlift Review Board (CARB) certification to utilize Bristow's available aircraft in U.S. government work. Columbia's relationships and reputation in government end-markets and Bristow's fleet and capabilities position the combined company to be competitive on contract opportunities currently not available to either standalone entity. * Jonathan E. Baliff, CEO of Bristow, commented, 'We share a long-standing, proven commitment to safety and Columbia's specialized heavy-lift capabilities are highly complementary to Bristow's offshore capabilities. We therefore see significant opportunity to leverage the combined company's fleet, MRO capabilities and certificates to expand our addressable market opportunities globally. Just as importantly, we believe we will be able to utilize our U.K. SAR expertise to build our combined business in the growing U.S. government and industrial end-markets, where Columbia has deep experience.' Thomas N. Amonett, the Vice-Chairman of the Board of Directors and Interim President of Bristow, stated, 'The acquisition of Columbia will bring together two premier helicopter companies with a shared commitment to deliver safe lift for our customers. We look forward to the opportunities ahead, as we continue to execute our long-term strategy to diversify our business, expand our addressable market and strengthen our overall financial profile.' Steve Bandy, President and Chief Executive Officer of Columbia, added, 'Like Bristow, we have built our business through a commitment to operational excellence that fosters long-term relationships with customers and employees. Together with Bristow, we will have an incredible platform to serve our global customer base. On behalf of everyone at Columbia, we are looking forward to partnering with Bristow to redefine the industrial aviation industry.' Thomas C. Knudson, Chairman of Bristow, stated, 'We have a deep respect for Wes Lematta, one of the foremost pioneers in the industry, and have long admired Columbia's entrepreneurial spirit. Steve and I both have deep aviation and piloting expertise, and we are aligned on our approach to leveraging Bristow and Columbia's combined strengths to build our leadership position in the growing market for aviation services.' Transaction Details: Under the terms of the agreement, Bristow will acquire 100% of the equity interests of Columbia for $560 million from the Lematta family and current management. For the twelve months ended September 30, 2018, Columbia recorded revenue of approximately $281 million and adjusted EBITDA of approximately $117 million1,2 resulting in a transaction multiple of 4.8x adjusted EBITDA, excluding the impact of estimated operational and cost synergies. Columbia will be designated as an unrestricted subsidiary and will be fully consolidated on the Bristow financial statements upon transaction close. Jonathan Baliff will serve on the Columbia Board of Directors as a representative of Bristow upon close of the transaction. 1 A full reconciliation of non-GAAP financial measures is included at the end of this news release. 2 Historical metrics normalized for the 2017 divestiture of Helifor business line. The transaction will be funded through a combination of debt, convertible debt, newly issued common shares to the Lematta family and existing Columbia management and cash from Bristow's balance sheet. Bristow has secured fully-committed debt and convertible debt financing for the transaction. The Lematta family and existing Columbia management, which is committed to leading the Columbia operating subsidiary, will roll over $77 million of their current ownership (including ownership in certain equity awards) into Bristow common stock, up to a maximum of approximately 7.1 million shares. Bristow remains focused on deleveraging and maintaining a strong liquidity position. The transaction is expected to close prior to December 31, 2018 and is subject to customary closing conditions including the expiration or termination of the applicable waiting period under the Hart- Scott-Rodino Act, the satisfaction of certain additional conditions relating to regulatory matters, the receipt of certain designated consents, and other customary closing conditions. Bristow will remain headquartered in Houston, Texas. Columbia will remain headquartered in Aurora, Oregon. Advisors: Jefferies LLC is serving as exclusive financial advisor to Bristow. Wachtell, Lipton, Rosen & Katz and King & Spalding are serving as legal counsel to Bristow, and Baker Botts is serving as financing counsel to Bristow. Greenhill & Co., LLC is serving as exclusive financial advisor to Columbia. Tonkon Torp LLP is providing legal counsel to Columbia. Jefferies Finance LLC is providing committed debt financing and Jefferies LLC served as sole placement agent arranging the committed convertible financing. Conference Call: Management will conduct a conference call starting at 8:00 a.m. ET (7:00 a.m. CT) on Friday, November 9, 2018 to review both the announced transaction and Bristow Group's financial results for the fiscal year 2019 second quarter ended September 30, 2018. This release and the most recent investor slide presentation are available in the investor relations area of our web page at www.bristowgroup.com. The conference call can be accessed as follows: Via Webcast: * Visit Bristow Group's investor relations Web page at www.bristowgroup.com * Live: Click on the link for the Bristow Group conference call * Replay: A replay via webcast will be available approximately one hour after the call's completion and will be accessible for approximately 90 days. Via Telephone within the U.S.: * Live: Dial toll free 1-877-404-9648 Via Telephone outside the U.S.: * Live: Dial 1-412-902-0030 ABOUT BRISTOW GROUP INC. Bristow Group Inc. is the leading global industrial aviation services provider offering helicopter transportation, search and rescue (SAR) and aircraft support services, including maintenance, to government and civil organizations worldwide. Bristow has major transportation operations in the North Sea, Nigeria and the U.S. Gulf of Mexico, and in most of the other major offshore oil and gas producing regions of the world, including Australia, Brazil, Canada, Russia and Trinidad. Bristow provides SAR services to the private sector worldwide and to the public sector for all of the U.K. on behalf of the Maritime and Coastguard Agency. For more information, visit bristowgroup.com. ABOUT COLUMBIA HELICOPTERS, INC. Columbia Helicopters is the global leader in heavy-lift helicopter operations and trusted expert in maintenance, repair and overhaul services. The company owns, operates and maintains a fleet of Columbia Model 107-II Vertol, Columbia Model 234 Chinook, and Columbia Model CH-47D Chinook helicopters. These aircraft are operated around the world, providing passenger and cargo services to customers and in various end-markets. In addition, Columbia Helicopters supports commercial and government operators with a comprehensive range of responsive life-cycle support and MRO services, from tip to tail, in the hangar or in the field maintenance. Columbia Helicopters holds the Type and Production Certificate for the Columbia Model 234 Chinook and Type Certificate for Columbia Model 107-II Vertol. Columbia Helicopters also holds a Restricted Category Type Certificate for the Columbia Model CH-47D Chinook. Columbia Helicopters is a factory-authorized service center for the Honeywell T55-714, a NAVAIR-approved MRO facility, and also provides total logistics support for the GE T58 and CT58 engines. To learn more, visit http://www.colheli.com/. https://www.twst.com/update/bristow-group-inc-bristow-group-to-combine-with-columbia- helicopters-in-a-560-million-transaction-creating-a-leading-global-diversified-industrial-aviation- solutions-company/ Back to Top Rolls-Royce Introduces New Engine Change Service Rolls-Royce has introduced a new Trent XWB Engine Change Service, with Hong Kong Aircraft Engineering Company (HAECO Hong Kong) as its launch partner. The service enables Rolls-Royce customers to access its OEM expertise and supplier network, with Rolls-Royce acting as a one-stop shop to organise labour, parts and/or tooling for any Trent XWB engine change event. It further improves our ability to ensure aircraft are available for service, supporting our vision that every Rolls-Royce powered aircraft departs and lands on time, every time, as efficiently as possible. Offered as a Foundation Service within the Rolls-Royce CareStore, customers are able to request a quote for their engine change event requirements from our 24/7 Aircraft Availability Centre, be that a home base or remote site location. HAECO Hong Kong has been selected as the first service provider to support Rolls-Royce in delivering the Engine Change Service, providing established capabilities and a long-standing relationship with Rolls-Royce. Lee McConnellogue, Rolls-Royce, Senior Vice President - Aircraft Availability Services, Civil Aerospace, said: "We are constantly looking at ways we can further improve aircraft availability and this service gives us additional capability to do just that. We wanted to launch with a partner who has a heritage of delivery and engineering expertise and HAECO Hong Kong fits that requirement perfectly." Patrick Wong, HAECO Hong Kong's Executive General Manager, Line Services, said: "We are looking forward to working with Rolls-Royce on this new service. We know airlines are looking for efficiency improvements that get their aircraft back in service faster, and that is what we can offer." Rolls-Royce plans to expand the service across other members of the Trent engine family and also create a global network of service support providers. Established in 1950, HAECO is one of the world's leading independent aircraft engineering and maintenance groups. It is one of the largest Maintenance, Repair and Overhaul service providers in terms of capacity. https://www.aviationpros.com/press_release/12436254/rolls-royce-introduces-new-engine-change- service Back to Top Closing the gap: Skills must catch up to demand in aviation sector, officials say Last month at a news conference at American Airlines' Tulsa Maintenance Base, U.S. Sen. Jim Inhofe promoted a vision as large as the Boeing 737 staged behind him. The goal, the longtime legislator and pilot said, is to make Oklahoma the aviation capital of America. Whether the state soars that high remains to be seen. But to stay among the nation's industry leaders, it must begin to close the gap between the demand for maintenance workers and the number of new employees joining the industry, otherwise known as the skills gap. Tulsa Tech Superintendent and CEO Steve Tiger said that phenomenon, which some call the "perfect storm," has been building for about a decade. "You have the modernization of the fleet," he said. "You also have the old planes - 20 years old - that they are still having to fly. Without the new technicians, they are unable to work on the new, modern, more high-tech planes. "China and other countries are doing a better job of that. That is driving some of this demand. We need to move forward with modernization. The baby boomers are filling most of the jobs, but they don't quite have the skills for the new planes, so they are trying to balance that." New entrants comprise 2 percent of the aircraft maintenance technicians population annually, while 30 percent of the workforce is at or near retirement age, according to a 2017 report by the Aviation Technician Education Council. In this country, FAA-certified AMT schools produce about 60 percent of new mechanics, with the military and on-the-job training accounting for the balance. As of mid-November 2017, the aggregate enrollment at all AMTs was about 17,800, roughly half of their capacity of nearly 34,300, according to the ATEC report. Erik Olund is managing director of American Airlines' Tulsa Maintenance Base, also known as Tech Ops-Tulsa, which employs 5,200 people and handles aircraft overhaul and component and avionics repair. The median age of a worker there is 56, he said. "We as an industry haven't had the turnover and the need to go out and hire until now, when our workforce is hitting an age where we haven't had a lot of recruitment because of all our financial conditions," Olund said. "In my opinion, the greater issue is that we haven't promoted what a great career this is." Nationally, American Airlines works with schools and technical colleges that have A&P (airframe and/or powerplant) programs, Olund said. Locally, it partners with educational institutions such as Tulsa Tech and Spartan College of Aeronautics & Technology. "We've done a lot of work in the schools with guidance counselors, especially at the high school level, to push kids to go after degrees, huge college loan debt, versus educating them on working as a mechanic," Olund said. "You get your A&P license, and in five to 10 years, you could be making six figures in a year." Martha Webb-Jones, human resources director at Spirit AeroSystems and chairwoman of the board of directors for Workforce Tulsa, said Spirit is opening up conversations about workforce readiness and the local and state level, speaking to policies that impact the workforce system. Spirit employs about 1,300 at its facility in Tulsa. "We've also worked to build strategic partnerships - with East Central High School, technical training institutions, like-minded companies and organizations, for example - to help ensure that we're recognizing best practices and being part of the solution for all stakeholders," Webb-Jones said. "Finally, we're focused on building an internal culture where people are empowered and engaged and motivated to keep learning. It's far easier to attract and retain qualified workers when the workers you have enjoy coming in every day." Tulsa Tech's aviation-aerospace training facility is at its 38-acre Riverside campus, which was built in 1999 for about $28.5 million. Besides its traditional curriculum, Tiger said the institution is in its third year of an aerospace academy for high school students. "This was a focused effort to build kind of a technical high school within that campus," Tiger said of the partnership among all Tulsa County high schools. "It's a way to get younger students in the pipeline and really entrenched because one of the factors causing the shortage is getting individuals aware of the career opportunities and engaged in training." It continues to work with key players such as NORDAM, American Airlines and Spirit AeroSystems on job shadowing, tours and hiring, he said. Tulsa Tech currently serves about 180 students in aviation maintenance, well short of its 300 capacity, he said. "We've really ramped up the engagement that we have with industry," Tiger said. "We're looking to strengthen that partnership as we go forward." Crystal Maguire is executive director of the Aviation Technician Education Council, a national trade association whose mission is to promote and support aviation maintenance technician education. Its membership is made up of aviation employers, vendors and educational institutions with maintenance technician programs. She agrees that the sector's growth, low profile and aging employees have contributed to the skills gap. But among the recent bright spots is that women make up 2.3 percent of the certificate mechanic workforce, up from 1.7 percent in 2001, according to the 2017 ATEC report. "I had this really interesting conversation with FedEx," Maguire said. "They are starting to look at moms, like empty nesters, females who maybe got out of the office while they had kids. They are looking for pilots as well as mechanics. It's a huge untapped resource." ATEC has begun putting in place a national awareness campaign called "Choose Aerospace" to communicate all of the sector's opportunities to the masses, she said. "Industry will start getting more involved in the education part as their demand grows for their workforce and they see the need to develop these pipeline programs," Maguire said. "We have expanded our membership four-fold in the last few years because we've been targeting industry more, saying 'If you guys are going to have who you need, you need to get involved with your education partners.'" The Oklahoma Department of Commerce recently announced the launch of the Oklahoma ACES (Aerospace Commerce Economic Services) Program, a membership organization. Created under House Bill 2578, the primary goal of ACES is to establish a common statewide strategy for the growth of the Oklahoma aerospace industry. Memberships are available to aerospace-related companies, local economic development organizations, government agencies and academic institutions. "As Oklahoma's second largest industry, aerospace is critical to our state's economy," Vince Howie, director of Aerospace and Defense for the Oklahoma Department of Commerce, said in a statement. "The ACES program will bring together Oklahoma's aerospace leaders - industry, military, education and more - to support and foster growth of the aerospace industry." https://www.tulsaworld.com/business/aerospace/closing-the-gap-skills-must-catch-up-to-demand- in/article_e1bc32c5-baf7-53ae-80ea-707422ca8db4.html Back to Top Boeing, Safran Joint Venture to Start Operations CHICAGO and PARIS, Nov. 9, 2018 /PRNewswire/ -- Boeing [NYSE: BA] and Safran [EPA: SAF] have received regulatory approvals for a joint venture so they can begin designing, building and servicing aircraft Auxiliary Power Units (APUs)-onboard engines that are primarily used to start the main engines and power aircraft systems while on the ground and, if necessary, in flight. The companies also named Etienne Boisseau as Chief Executive Officer of the joint venture. The agreement establishes a partnership between two of the world's leading aerospace companies to work together on APU products and expanded service capabilities to benefit customers and industry. Both companies have a 50 percent stake in the joint venture. The initial team will perform design work in San Diego, Calif. "Safran is proud to launch this joint venture with Boeing in order to offer state-of-the-art APUs and enhance customer value. Together, we are committed to delivering innovative, highly technological and cost-competitive solutions to global customers. We are confident this joint team will provide first-class products and services within the best integrated industrial organization," said Philippe Petitcolin, CEO of Safran. The joint venture combines Boeing's customer and airplane knowledge and Safran's experience designing and producing complex propulsion systems. "We are open for business and excited to offer even more value to our customers throughout the lifecycle of their investment. This joint venture strengthens Boeing's vertical capabilities as we continue to expand our services portfolio. By making strategic investments that accelerate our growth plans, we also are providing our customers with expanded, innovative services solutions," said Stan Deal, President and CEO of Boeing Global Services. In addition to Etienne Boisseau, others nominated to the joint venture's leadership team include: * Linda Hapgood, Chief Operating Officer * Erin Morrissey, Chief Financial Officer * Joan Inlow, Chief Technology Officer The name of the joint venture as well as the location of the future headquarters and production and service facilities will be announced at a later date. Safran currently supplies a wide range of components to Boeing commercial and defense programs, including as a partner to produce CFM's LEAP-1B engine for the 737 MAX (through CFM International, a 50/50 JV between Safran Aircraft Engines and GE). Boeing and Safran also are partners in MATIS, a joint venture in Morocco producing wiring products for several airframe and engine companies. About Boeing Boeing is the world's largest aerospace company and leading manufacturer of commercial airplanes and defense, space and security systems. Boeing is also the world leader in combined commercial airlines and government services with customers in more than 150 countries. The company's products and tailored services include commercial and military aircraft, satellites, weapons, electronic and defense systems, launch systems, advanced information and communication systems, and performance-based logistics and training. Boeing employs approximately 140,000 people across the United States and in more than 65 countries. Operating as one of Boeing's three business units, Global Services is headquartered in the Dallas area. For more information, visit www.boeing.com/services. About Safran Safran is an international high-technology group, operating in the aircraft propulsion and equipment, space and defense markets. Safran has a global presence, with more than 58,000 employees and sales of 16.5 billion euros in 2017. Working alone or in partnership, Safran holds world or European leadership positions in its core markets. Safran undertakes Research & Development programs to meet fast-changing market requirements, with total R&D expenditures of around 1.4 billion euros in 2017. Safran is listed on the Euronext Paris stock exchange, and is part of the CAC 40 and Euro Stoxx 50 indices. In February 2018, Safran took control of Zodiac Aerospace, significantly expanding its aircraft equipment activities. Together with Zodiac Aerospace, Safran has more than 91,000 employees and would have around €21 billion in adjusted revenue (pro forma 2016). For more information: www.safran-group.com / Follow @Safran on Twitter https://www.aviationpros.com/press_release/12436247/boeing-safran-joint-venture-to-start- operations Back to Top AVIATION EXPERT URGES FG TO INVEST IN AIRCRAFT MAINTENANCE, REPAIR An aviation expert, Mr. Trevor Henry, has urged the Federal Government to create an aircraft Maintenance, Repair and Overhaul (MRO) facility to enhance the growth of the industry rather than floating a national airline. Henry, the Head of Commercial, Med-view Airline, said this in Lagos on Friday during the Nigerian Aviation Business Exhibition (NABE). The News Agency of Nigeria (NAN) reports that NABE was organized by Mr & Miss Aviation Nigeria (MAMAN), in collaboration with the Nigerian-American Chamber of Commerce (NACC). The theme of the forum was "Opportunities in the Nigerian Aviation Industry, its Complexity, and its Needed Human Capital." NAN reports that Maintenance, Repair, and Overhaul (MRO) is an essential requirement to ensure that aircraft are maintained in pre-determined conditions of airworthiness to safely transport passengers and cargo. Henry said that the government should channel the money meant to get a national carrier into having an MRO facility and simulator facility where aircraft would be maintained and pilots trained. Henry said that lack of an MRO facility has had a negative impact on the survival of airlines in the country as airlines struggled to maintain their fleet or stay in business for a consistently long period as seen in other climes. According to him, airlines take their aircraft and pilots outside the country for maintenance and training. The aviation expert noted that the establishment of MRO and simulator facility would address the issue of capital flight and integrate more youths through job creation into the aviation industry. "The Ethiopian Government has done what I am speaking about and they are reaping the benefits, I believe the money and efforts of the Nigerian government should be channeled into similar things," he said. NAN recalls that the proposed national airline was expected to gulp 8.8 million dollars preliminary cost and 300 million dollars as take-off cost. Capt. Josiah Choms, the Managing Director, Caverton Helicopters, said that for the nation's aviation industry to progress considering the ever-changing technology advancement, the skill set of the sector's workforce must be constantly improved. He said that the development and sustainability of the aviation sector was hinged upon strict adherence to safety procedure and proficient personnel. Ms. Ololade Adenekan, Project Manager, MAMAN, said that Nigeria was blessed with vibrant youths, and the aviation industry should not suffer inadequacy of professionals. She said that the forum was to equip youths with requisite knowledge needed to acquire relevant skills and opportunities in the sector toward boosting economic growth. Ebuka Ugochukwu, the Communications Executive, NACC, said that the objective of the forum resonated with the chamber's commitment to empowering businesses with an exposure that would boost their performance and increase wealth creation. Ugochukwu said that growth of the aviation sector would impact on other sectors of the economy, create jobs and knowledge transfer while boosting the growth of the country's Gross Domestic Product (GDP). https://plustvafrica.com/news/aviation-expert-urges-fg-to-invest-in-aircraft-maintenance-repair/ Back to Top Air New Zealand and French plane maker to develop electric aircraft Air New Zealand and the French plane manufacturer Avions de Transport Regional (ATR) have signed an agreement to explore the possibility of using hybrid or electric aircraft on New Zealand's domestic and regional routes. Under the agreement, the partners will look into the development of propulsion systems, the infrastructure required to support them including airport and regulatory framework, maintenance, ground and flight operations, the airline said in a statement on its website. "Hybrid aircraft are expected to enter the market in the next decade or so," Air New Zealand chief executive Christopher Luxon said. "Depending on when hybrid and electric technologies become available for larger turbo-prop aircraft, we believe there is potential for these to be a viable option for our regional network." With New Zealand's renewable electricity supply and airline's regional network, the country is the "ideal test bed for these technologies", he said. Air New Zealand and ATR are not the first collaboration to develop alternative propulsion systems. The German technology company Siemens and its partner Airbus want hybrid aircraft to take to the air commercially by 2030. Electric propulsion is expected to become a norm by 2050, although other technologies such as hydrogen-powered aircraft are also being considered, Johannes Wollenberg, who is part of Siemens' eAircraft team developing hybrid electric propulsion system, said in September. https://www.thenational.ae/business/aviation/air-new-zealand-and-french-plane-maker-to- develop-electric-aircraft-1.790015 Back to Top Japan fails to move forward on SDF inspection of Futenma base After nine months, the Defense Ministry has gotten nowhere in plans to have a Self-Defense Forces team inspect a U.S. air station in Okinawa Prefecture over a series of aircraft accidents and emergency landings. In fact, the on-site inspection issue was not even on the agenda of a Nov. 8 meeting in Tokyo attended by about 20 representatives from the Defense Ministry and U.S. Forces Japan. They merely "exchanged opinions on flight safety," according to officials. U.S. military aircraft were involved in a seemingly endless series of incidents in Okinawa Prefecture in 2017 and early this year, fueling anti-base sentiment and safety concerns in the island prefecture that hosts about 70 percent of all U.S. military facilities in Japan. In January alone, three helicopters stationed at the U.S. Marine Corps Air Station Futenma in Ginowan in the prefecture made emergency landings. On Jan. 29, then Defense Minister Itsunori Onodera said in the Diet that the ministry will dispatch SDF members to Futenma to inspect and confirm the U.S. military's aviation maintenance. The U.S. military, however, has reacted strongly to the proposed SDF dispatch. At the Upper House Budget Committee on Nov. 7, Defense Minister Takeshi Iwaya said the ministry and the U.S. military were in the final stage of coordinating some form of an on-site inspection. But on the same day, U.S. Forces Japan tweeted about the talks scheduled for Nov. 8, "The meeting is not an inspection, nor will the issue of inspections of U.S. military or JSDF aircraft be discussed." The Defense Ministry concurred that the talks were "not about the inspection." Helicopter pilots and maintenance workers from the Ground SDF, the Air SDF and the U.S. military attended the two-hour meeting in Minato Ward. According to sources familiar with the talks, the two sides agreed to explore ways to deepen mutual understanding. The topics raised included mutual base visits, procedures for regular maintenance work, views on accident prevention and emergency landings, and certification of aircraft safety. Asked if the ministry would continue pressing the U.S. side to accept the SDF inspection at Futenma, a ministry official said, "We will decide according to the need." Iwaya and Okinawa Governor Denny Tamaki are scheduled to hold talks in the prefecture on Nov. 10-11. Tamaki was recently elected on a campaign opposing the heavy U.S. military presence in the prefecture. http://www.asahi.com/ajw/articles/AJ201811090045.html Back to Top TS&S Achieves Chinese Approval For V2500 MRO Turbine Services & Solutions (TS&S) has received certification from China's aviation regulatory body to service IAE V2500 engines. The Civil Aviation Administration of China (CAAC) approval allows the Abu Dhabi-based MRO to maintain these engines that power Airbus A320ceo aircraft, among others, for Chinese registered aircraft. TS&S says it holds the largest number of aviation authority registrations in the Middle East and North Africa. It became an IAE-approved V2500 overhaul center in 2013. In addition to the CAAC approval, it has also received aviation regulatory certification from Nepal, Vietnam, Sri Lanka, Thailand, Brazil, Chile and Argentina-which aids its goal of increasing international clients. As an example, earlier in the year, TS&S won contracts to maintain V2500 engines that power the A320s operated by Latam Airlines Group, AtlasGlobal, Yemenia Airways and Asiana Airlines. TS&S, wholly owned by Mubadala, provides MRO for engines powering Airbus A310, A320, A330, A310 and Boeing 747, 767, 777 and 787 aircraft- specializing in the V2500, Rolls-Royce Trent 700 and GE Aviation and GEnx engines. It holds partnerships with those engine OEMs, which allow it to perform repairs and subcontract work from the OEMs, as well as its airline customers. Its business has grown threefold in the last four years. https://www.mro-network.com/maintenance-repair-overhaul/tss-achieves-chinese-approval-v2500- mro Back to Top Deadly Lion Air Crash Puts Spotlight on Safety Culture Within Indonesia's Airlines In April 2013, a Lion Air Boeing 737 missed the runway on the Indonesian resort island of Bali in bad weather and plowed into the sea, cracking its fuselage open on the rocks. All 108 on board survived. But a September 2014 report by Indonesia's air crash investigators highlighted errors and poor training, saying the 24-year-old co-pilot had failed to adhere to the "basic principles of jet aircraft flying." Lion Air, struggling to get off a European Union blacklist because of "unaddressed safety concerns," asked Airbus, which supplies part of its fleet, to help improve training. The EU removed the privately owned budget airline from the list in 2016 after it determined Lion Air met international safety standards. None of Indonesia's roughly 100 airlines - most of them tiny - remain on the EU blacklist, with the last few coming off in June. All were banned in 2007; the national carrier, Garuda Indonesia, was the first to be removed in 2009. The crash of a Lion Air jet on Oct. 29 into the sea off Jakarta has put a spotlight back on the airline's safety record, although the cause remains undetermined. None of the aircraft's 189 passengers and crew survived. Lion Air's latest crisis illustrates the challenge relatively new carriers face as they try to keep pace with unstoppable demand for air travel in developing nations while striving for standards that mature markets took decades to reach. Retired air force chief of staff Chappy Hakim, an adviser to the transport ministry, told Reuters he avoided flying with Lion Air or other Indonesian airlines, with the exception of Garuda, which has not had a fatal crash since 2007. "I know Garuda," he said of the national carrier. "The other airlines, I don't believe they do the maintenance and training properly." He declined to elaborate further. Lion Air Managing Director Daniel Putut disputed any laxity in the airline's safety culture, stressing that it conducted maintenance in accordance with manufacturer guidelines. The Directorate General of Civil Aviation, the Indonesian aviation authority, did not respond to multiple requests for comment about Lion Air's safety record. Putut, a former pilot, also told Reuters during a visit to the airline's training center near the Jakarta airport that it complied with all regulatory requirements. He said Lion Air had worked hard to install an attitude of "zero tolerance" for accidents after the Bali crash, making last week's disaster a painful eye-opener. Thousands ofLion Air flights have taken off and landed without serious incident since then. "We are also looking into what went wrong - new aircraft, experienced crews, and we have applied the zero-tolerance culture, yet another accident happened," Putut said. "But we still don't know the cause, so we will wait for the investigation from NTSC (National Transportation Safety Committee)." Safety Culture Frank Caron, head of a risk consulting firm who served as Lion Air's safety manager from 2009 to 2011 after insurance companies requested a foreign expert, said that at the time he was troubled by what he regarded as the airline's attitude that accidents were inevitable. "Safety is much more than running concepts and procedures," he said. "Safety is a spirit, a state of mind, a way of thinking, an attitude in the daily aspects of an operational life. And that is precisely what Lion never got. They would say, 'The airline has 250 flights a day, it is not abnormal that you have accidents.'" For example, after the 2013 Bali crash, Lion Air co-founder Rusdi Kirana told local media who asked about the airline's safety record: "If we are seen to have many accidents, it's because of our frequency of flights." Caron claimed he left Lion Air after some of his safety recommendations were not implemented. Lion Air's chief executive declined to comment on Caron's account of his departure or his other assertions. Indonesian accident investigators made four recommendations after the Bali crash, including that Lion Air should "ensure that all pilots must be competent in hand flying" and teach proper cockpit coordination. They also urged the aviation authority to ensure all airlines under its control did the same. Putut said Lion Air embraced those recommendations. Between the Bali crash and the one last week, Lion Air had three non-fatal accidents, including one in April in which a 737 skidded off a runway, according to Flight Safety Foundation's Aviation Safety Network database. Since it began operating 18 years ago, Lion Air has seen a total of eight planes damaged beyond repair in accidents, two of which killed a combined 214 people, according to the Aviation Safety Network database. During the same period, five jets from its chief rival, the national carrier Garuda Indonesia, were damaged beyond repair, and two accidents killed a combined 22 people, according to the database. Garuda declined to comment about its safety record. Since the 2013 Bali crash, Lion Air has sought to improve safety by gaining European Aviation Safety Agency (EASA) certification for its pilot training and maintenance facilities. EASA certifies its training center to instruct other airlines' pilots on A320 simulators and is seeking the same approvals for 737 jets and ATR72 turboprops, said Audy L Punuh, Lion Air's Angkasa Pilot Training Organisation Director. Rapid Growth Lion Air has expanded quickly since it started flying in 2000, overtaking national carrier Garuda by capturing more than half of the domestic market and establishing offshoots in Thailand and Malaysia. It has ridden a wave of aviation growth in Indonesia, where air travel has become critical for the economy. Domestic air traffic more than tripled in Indonesia over the past decade as prosperity and low fares made flying affordable for more people. With 129 million passengers in 2017, the Southeast Asian country was already the world's 10th- largest aviation market and is projected to continue growing. That growth has been accompanied by an air-accident rate that was twice the global average in 2017 and consistently higher than Indonesia's neighbors in the Association of Southeast Asian Nations, according to the United Nations' aviation agency. Indonesian pilots are allowed to fly a maximum of 110 hours a month, which is more than the 100 hours in most other countries. Last year seven commercial planes were damaged beyond repair around the world, according to Boeing data; two were in Indonesia, wrecked in non-fatal accidents involving Sriwijaya Air and Tri M.G. Airlines. Latest Crash Flight JT610 took off from Jakarta at 6:20 a.m. on Oct. 29, bound for Bangka island, off Sumatra, and plunged into the sea 13 minutes later. Just before the crash, the pilot asked to return to the airport. The aircraft flew erratically on its previous flight and its airspeed readings were unreliable, according to an accident investigator and a flight tracking website. Investigators on Monday said the flight data recorder from the downed jet showed anairspeed indicator had been damaged during its final four flights, raising questions about maintenance and mechanical problems. Boeing said on Wednesday it had issued a bulletin to airlines reminding pilots about what it described as existing procedures for handling erroneous data from sensors. The Federal Aviation Administration later issued a directive calling for revisions to "operating procedures of the airplane flight manual." It is too early for regulators to decide whether to reconsider the decision to remove Lion Air from the EU blacklist, EU Ambassador to Indonesia Vincent Guerend told Reuters. "The European Commission continues to monitor the situation on a regular basis," he said. "It is still too early to have any conclusive views on the causes of the accident." https://www.insurancejournal.com/news/international/2018/11/09/507190.htm Back to Top SpaceX to test hybrid BFR next year Elon Musk has been busy tweeting about his mid-term plans for SpaceX. Currently, SpaceX uses a tried and tested Falcon 9 rocket which has proved extremely reliable. The - current - next step has been to focus on the 'Falcon Heavy', an improved design that's capable of carrying a heavier satellite payload and yet also has the potential for a much higher recovery/reusability rate. Musk now says that SpaceX will additionally attempt a test flight next year of a Falcon 9 but with a modified upper stage in order to trial SpaceX's next-generation launcher. Musk's Tweet said: "Mod to SpaceX tech tree build: Falcon 9 second stage will be upgraded to be like a mini-BFR Ship". That 'mini-BFR ship' he refers to is a modified intermediate stage to the totally reusable Big Falcon Rocket that he hopes will be an intercontinental passenger rocket that also has the potential to fly to Mars. Musk said this mini-BFR could fly by June next year. "Ultra-light heat shield & high Mach control surfaces are what we can't test well without orbital entry," he commented. Meanwhile, on the financial markets it was widely reported that Musk is looking to raise extra cash via a loan of up to $750 million. https://advanced-television.com/2018/11/09/spacex-to-test-hybrid-bfr-next-year/ Curt Lewis