MAY 2, 2019 - No. 035 In This Issue DynCorp International Awarded Aviation Field Maintenance (AFM II West) Contract Baltic MROs' Growth Plans Extend Beyond Borders Volga-Dnepr's aircraft maintenance arm wins ISO certification New software to maximize safety and efficiency in aircraft manufacturing General Electric tops profit estimates, calls 737 MAX 'new risk' First international aviation academy opens at Saudi Arabia's KAEC Jet Airways employees ready to pay airline dues from salary, stock option; mystery investors to offer Rs 3,000 crore Airlines instructed to inspect some Boeing 737 Max engines after Southwest emergency landing Piaggio Given Green Light To Restart Production ARSA Engages FTC on Maintenance Manual Availability SpaceX's mission to the International Space Station delayed by electrical problems DynCorp International Awarded Aviation Field Maintenance (AFM II West) Contract MCLEAN, Va.--(BUSINESS WIRE)--On April 26, the U.S. Army Contracting Command at Redstone Arsenal awarded DynCorp International (DI) a contract for Aviation Field Maintenance (AFM) and Sustainment Level Maintenance for the AFM Directorate (AFMD). The work involves program management, aircraft and ground support equipment maintenance, as well as aircraft modifications, and other logistical support to aviation customers worldwide. The total value of the contract is not to exceed $1.1 billion and the period of performance is May 13, 2019 through August 12, 2027, if all options are exercised. "We are honored to have been selected to support this critical mission for the U.S. Army," said Joe Ford, president of DynAviation. This work is similar to the Regional Aviation Sustainment Management (RASM) - West Region contract, which DI has supported since May 2013. About DynCorp International DynCorp International is a leading global services provider offering unique, tailored solutions for an ever-changing world. Built on over seven decades of experience as a trusted partner to commercial, government and military customers, DI provides sophisticated aviation, logistics, training, intelligence and operational solutions wherever we are needed. DynCorp International is headquartered in McLean, Va. For more information, visit our blogs Inside DI or DI at Work or follow DynCorp International on Twitter. https://www.businesswire.com/news/home/20190430006053/en/DynCorp-International-Awarded- Aviation-Field-Maintenance-AFM Back to Top Baltic MROs' Growth Plans Extend Beyond Borders Ambitious businesses from small countries face a similar challenge: Their domestic markets are too small to sustain growth beyond a certain point. For aviation MRO companies, that problem is mitigated by the mobility of aircraft, which makes it easier to attract foreign customers, but other limitations are less easily addressed. The Baltic countries of Estonia, Latvia and Lithuania have a combined population of just over six million, and this creates a dilemma for local MRO providers. "One of the main challenges we face here in the region is certainly the lack of skilled staff," says Jan Kotka, chief operating officer of Tallinn, Estonia-based Magnetic MRO. "We do our best to hire skilled professionals from the local market, but the talent pool here has limitations," he admits. Zilvinas Lapinskas, chief executive of Vilnius, Lithuania-based FL Technics, echoes those thoughts and outlines various strategies the company is pursuing in response. These include collaboration with local schools and universities and the implementation of lean production. "This method has proven itself throughout the world, so we expect to shorten the training time of our new employees in order to establish and maintain standardized work and required quality," he says. Magnetic is also cooperating with local education authorities. "We have a customized study program to boost the number of specialists in cooperation with the Estonian ministry of education," says Kotka. "Magnetic MRO also holds EASA [European Aviation Safety Agency] Part 147 training approval and runs a specially designed training center, which we use to serve our own needs as well as third-party customers," he says. Then there is the problem of scaling. Local airlines can provide only limited maintenance work, and bigger carriers in the wider region tend to have their own technical departments. This applies even to some low-cost carriers, which might be expected to outsource. Ryanair, for example, has its own maintenance base in Kaunas, Lithuania-Kaunas Aircraft Maintenance Services (KAMS). Its chief executive, Karolis Cepukas, says it has completed 700 checks for the airline's Boeing 737 aircraft since 2013. "Most of the work is done in-house," he says. KAMS will add 737 MAX capabilities in the first quarter of 2021 at the earliest, he notes. The biggest local carrier-Riga, Latvia-based AirBaltic-also has its own MRO capabilities, although until recently these focused on line maintenance and A checks, with heavier work (plus engine, wheels and brakes maintenance) outsourced. However, for the airline's newest aircraft, the Airbus A220-300, AirBaltic is planning to do C checks itself, with the first scheduled for the fourth quarter of 2019. It also plans to add wheel maintenance for the type by expanding its workshop capabilities. These developments mark a significant shift away from outsourcing, since AirBaltic is migrating to a single fleet type of A220 aircraft. One comfort for third-party providers is that AirBaltic's technical department does not compete with them for other customers, although that may change. "Currently, AirBaltic does not perform any maintenance work for third parties," says Andris Vaivads, AirBaltic's senior vice president for technical operations. "With expansion of the company's maintenance capabilities, AirBaltic may evaluate the opportunity in the future." Diversifying Customers Six years ago, more than 75% of FL Technics' customers were from Russia and Commonwealth of Independent States countries, but that has dropped to one-third, while European customers now constitute half the company's work. "The current diversification is a healthy one, and I plan to keep it that way," says Lapinskas. Perhaps the most eye-catching win was a five-year deal signed in 2018 to provide base maintenance for 28 Lufthansa Group A320s, a contract that Lapinskas says would have been "impossible" to win several years ago. He credits new production methods, new wheel and brakes services and the modernization of FL Technics' avionics, interior, battery, emergency equipment and non-destructive testing capabilities for the transformation. Another interesting development for the company was a deal to maintain aircraft for South African carrier Comair over the summer months, a traditionally slow period for Northern Hemisphere MRO providers. Foreign Forays Diversification is also being sought through international expansion, which seems vital given that the Baltic MRO market will be worth just $126 million in 2019, according Aviation Week's Fleet & MRO Forecast. That compares with $3.8 billion for the Eastern European MRO market and $17.3 billion for Western Europe. FL Technics is venturing even farther afield as it seeks to capitalize on burgeoning demand in Asian markets. Its efforts in this regard have been buoyed by parent company Avia Solutions, whose sister company AviaAM Leasing, along with Henan Civil Aviation Development, set up a joint venture leasing business-AviaAm Leasing China-in Henan province in 2016. FL Technics has built on that relationship by establishing its own Chinese joint venture, FL ARI Aircraft Maintenance & Engineering, with local partners China Aircraft Leasing and ARI. The Harbin-based MRO aims to provide A320- and 737-family support. It has just received line maintenance approval from Chinese regulators and is progressing toward EASA certification. Meanwhile, in August 2018, FL Technics Indonesia earned FAA Part 145 certification for its operation at Jakarta's Soekarno-Hatta International Airport. It also holds local approvals from aviation authorities in Indonesia, Thailand, Vietnam and Cambodia. Magnetic MRO also has been busy abroad with this year's acquisition of Dutch line maintenance provider Direct Maintenance, which has a network of 11 line stations across Europe, the Middle East, Africa, Asia and the U.S. "Historically, our focus has been in Europe, and our main base and line maintenance customers have been from the area, [but] that trend has been changing within the past few years," says Kotka. "Through the acquisition of Direct Maintenance, we will have a much stronger foothold in Africa." Also in 2019, the company opened EngineStands24 in Dubai, a new warehouse to store stands for narrowbody aircraft engines such as the CFM56 and V2500. Magnetic may open another engine- stands hub in Saudi Arabia following a memorandum of understanding with Saudi Arabian repair specialist First Premium for Support Services, which will initially see the parties jointly establish wheel and tire, brake, oxygen refill and battery shops in Jeddah. While the Saudi and Dubai ventures represent organic growth for the company, Magnetic MRO is considering further bolt-on purchases, which will help mitigate "growing" competition from Eastern European MRO providers. "Luckily though, our portfolio is rather wide, and that has left us certain freedom to develop in the areas we have decided to focus on," says Kotka. "Direct Maintenance will definitely not be our last acquisition. Growing our global network is one of the biggest ongoing priorities we have, and we'll keep working hard to strengthen our position in regions that are most important for us strategically," he adds. The Middle East and Asia offer the best opportunities to grow Magnetic's business in the coming years, Kotka says. Capabilities For 2019, Aviation Week estimates that spending in the Baltic regional MRO market will be split as follows: 29% for line maintenance, 29% for engine maintenance, 26% for component maintenance; 9% for airframe heavy maintenance and 7% for modifications. The leading share of line maintenance reflects significant investment by local MRO companies in the specialty. FL Technics, for example, will introduce mobile line stations this year to assist with AOG situations. It is also planning to open a new painting hangar in Lithuania and introduce line capabilities for PW1100G- and CFM Leap-powered A320neos as well as the Boeing 777 and 787. Lapinskas says the company has identified a need for more flexible, short-term line solutions for charter and other seasonal operators. "We see a gap in the market where flexible solutions are required for the operators when they have a need for line maintenance services during a short period of time up to six months," he says. "Most MRO providers tend to go for long-term contracts while charter operators are being left at the mercy of local providers and their availability." Line and base maintenance have been the "pillars" of Magnetic's business until now, says Kotka, although he notes that new avenues are opening, with the MRO providers, fastest growth on the asset-management side as it trades aircraft and engines for leasing and part-outs. "There's great potential in everything that revolves around end-of-life assets, and we're glad to fill that gap with our complex set of in-house capabilities and decades of experience working physically with the assets," he says. New technologies also have significant potential to improve Magnetic's business. Kotka cites the company's development of virtual reality solutions for interior inspections, 3D laser scanning for damage inspection and a digitization plan that includes 3D printing and fingerprint scanning. "Of course, this is just the tip of the iceberg, as we have many more activities ongoing and ahead of us," he says. It appears Baltic MRO providers are well-positioned for further growth in their home market and beyond. https://www.mro-network.com/maintenance-repair-overhaul/baltic-mros-growth-plans-extend- beyond-borders Back to Top Volga-Dnepr's aircraft maintenance arm wins ISO certification Volga-Dnepr Technics Moscow (VDTM), one of the leading independent maintenance, repair and overhaul (MRO) providers for both Russian and foreign aircraft in Russia, has been successfully certified for compliance with the ISO 9001-2015 international standard. It follows the successful implementation of a quality management system (QMS) that has improved the efficiency and transparency of the company's business processes. The initial auditing phase, which was conducted by Bureau Veritas, included a preliminary performance check against all documentation related to the management system developed by VDTM. In the second phase Bureau Veritas inspectors studied the MRO's operating and performance levels in a real production environment at the airports of the Moscow Aviation Hub (MAH). The ISO 9001-2015 certification process covered a range of activities such as the maintenance and repair of the Boeing 747-400, the Boeing 747-8, the Boeing 737NG, the Boeing 737CL, the Airbus A320 and the Superjet 100 aircraft types at Moscow's three major airports - Sheremetyevo (SVO), Vnukovo (VKO) and Domodedovo (DME) - as well as components repair and the training of engineering staff. VDTM, which is part of Russia's Volga-Dnepr Group, has been active in the MRO market in Russia since 2009. In a particularly busy 2018, the company started performing interior equipment repair works, received a certificate of recognition of the EASA certification by the authorities of the Republic of Belarus, and also set up an aircraft on ground (AOG) team to provide quick responses to grounded aircraft downtime situations anywhere in the world. http://www.rusaviainsider.com/volga-dnepr-aircraft-maintenance-iso-certification/ Back to Top New software to maximize safety and efficiency in aircraft manufacturing Aircraft manufacturers "often [value]production speed over quality" and this "frenzied pace" has led to aviation safety concerns, according to a recent report by The New York Times (NYT). To ensure that manufacturers' production goals are not in competition with aviation safety, the FAA has approved the use of remote connectivity technology in manufacturing. Using this technology, aircraft can be remotely inspected in manufacturing facilities. CloudVisit's aviation maintenance software is one such example of this technology, and has been designed to maximize efficiency and safety in aircraft manufacturing facilities. Using the software, aircraft assemblers take video recordings and images of an aircraft component when it first arrives at the manufacturing facility. This data provides quality assurance of the part before assembly. As the aircraft is assembled, workers document their tasks through video and audio recordings, as well as images. This data demonstrates what assembly tasks are completed, the accuracy with which the task was completed and the quality of the final output. For example, an aircraft assembler can conduct a non-destructive test (NDT) to ensure that the quality of metal of an aircraft component is optimal. The test and the results are documented through video recordings and saved on the cloud. The recording is then shared with aircraft inspectors who can approve quality control checklists from their computers. This remote inspection is designed to maximize efficiency during the aircraft manufacturing process without compromising safety of the completed aircraft. CloudVisit's aviation maintenance software was designed to ensure aviation is a safe and profitable industry for airlines and manufacturers of aircraft. It can be used for inspections of manufactured aircraft, as well as for MRO after an aircraft has been delivered to the purchaser. https://www.businessjetinteriorsinternational.com/news/facilities/aviation-maintenance-software- maximizes-aviation-safety-and-efficiency-in-manufacturing-facilities.html Back to Top General Electric tops profit estimates, calls 737 MAX 'new risk' General Electric reported better-than-expected quarterly profits on Tuesday, lifting hopes over its turnaround, even as it signaled a potential hit tied to the Boeing 737 MAX grounding for which it provides engines. Shares rose after the industrial conglomerate, which has struggled the last two years amid weakness in key divisions, reported first-quarter profits of $3.5 billion, compared with a loss of $1.2 billion in the year-ago period. Revenues dipped 1.8 percent to $27.3 billion. Earnings rose in aviation, oil and gas and healthcare, offsetting a loss in renewable energy and much lower earnings in power, an albatross for GE in recent years. But in an earnings presentation, GE flagged the 737 MAX as a "new risk" for the company in the wake of Boeing's travails following the two deadly crashes that led to the global grounding of the aircraft. Earlier this month, Boeing slashed production on the 737 MAX by about 20 percent, raising new challenges for suppliers, including GE, which makes the plane's LEAP engines with French company Safran. "We are confident in the 737 MAX aircraft," said GE Chief Executive Larry Culp. "We're working closely with Boeing through the recertification process and, while the planes are on the ground, we're conducting proactive scheduled maintenance on the engines," he said during a conference call on the company's quarterly earnings. Chief Financial Officer Jamie Miller said the company had not lowered production of the engines but added that company cash flow could be pinched depending on when aircraft deliveries resumed. "We will continue to adjust our operational managements as this situation evolves," Miller said. US carriers such as American Airlines and Southwest Airlines are targeting August to resume flights on the 737 MAX in the expectation that Boeing will receive approval for its fix from the Federal Aviation Administration by that time. Boeing expects certification of a software fix some time after an FAA meeting with international regulators on May 23, a Boeing spokesman said on Monday. Measured tone Under Culp, who was tapped as chief executive last October, the company has moved to resolve regulatory problems, cut costs and divest some units to reduce debt. The company's share price has plunged over the last two years, leading to its removal from the prestigious Dow Jones Industrial Average stock index, due initially to weakness in the power and oil and gas business. More recently, the company's momentum has been slowed by new regulatory probes, large asset write-downs and a move to cut the company's dividend steeply. GE earlier this month finalized a $1.5 billion settlement with the Justice Department over subprime mortgages before the 2008 financial crisis. Rene Lipsch, an analyst at Moody's, said the weakness in some GE industrial businesses was "a stark reminder of the challenges that the company still faces" but added that profit margins could improve later in the year. "This holds out the prospect of seeing some initial results of the company's turnaround efforts in the second half of 2019," he said in an analyst note. But Culp has warned that the company's troubled power division will remain under pressure in 2019. On Tuesday, he described the power turn-around as "in the early stages," and suggested investors would do well to take Tuesday's better-than-expected results in stride and not let expectations get out of hand. "It's just one quarter in a multi-year journey," he said. "With better execution and a stronger balance sheet, we'll continue over time to create sustainable, shareholder value." Culp reiterated that he expects 2020 and 2021 financial results to be "meaningfully better." Shares finished up 4.5 percent at $10.17. https://phys.org/news/2019-04-electric-results.html Back to Top First international aviation academy opens at Saudi Arabia's KAEC JEDDAH: The National Aviation Academy of Saudi Arabia (Tayaran) was inaugurated at its headquarters at King Abdullah Economic City (KAEC) on Wednesday by Prince Sultan bin Salman, head of its board of trustees. The prince said Tayaran had been established to train talented individuals pursuing careers in various aeronautical fields in accordance with the highest international standards, and would provide sustainable employment opportunities for young Saudi citizens. "The academy will strengthen the Saudi economy and the aviation industry. With the Kingdom's strategic position and strong economy, it continues to make great progress in aviation, with the largest airports, the largest freight jets, and many significant international aviation conferences and forums," he said. Tayaran's general manager, Capt. Mohammed Al-Subaiei, said the academy would support 1,650 trainees annually, including 1,200 in aircraft maintenance and 450 pilots, making it the largest center of its kind in the Middle East. There are also programs to sponsor talented students unable to fund themselves. "We have 35 male sponsored students. We accept sponsored applicants who pass our admission tests regardless of their gender," he said, adding that Tayaran would eventually open its doors to international students. "In three years, the academy will accept students from around the world. Such an ambitious project will initially begin with around 5 percent of the total number of applicants." He added that Tayaran would also conduct courses at their center in Al-Thumamah from September 2019, focusing on piloting aircraft and operating drones. "As a science, aviation is a sophisticated field of study, not only for the safety and security conditions it demands, but also for the high cost of the training equipment it requires to ensure the best educational outcomes. Students can finish their maintenance program in 36 months." Al-Subaiei said the Kingdom's expanding civil and military aviation sectors would need about 8,800 pilots and 11,700 technicians over the next seven years. "The academy is committed to utilizing the best technologies and teaching internationally accredited programs to prepare its members to become pioneers," he said. "The academy will provide job opportunities for young people who, Crown Prince Mohammed bin Salman has said, are our foremost resource." The International Air Transport Association expects airline passenger demand to double over the next two decades, requiring up to 460,000 new commercial pilots by 2031. A Boeing outlook report published in 2012 indicated that 601,000 new commercial technicians and engineers would also be needed. Meanwhile, the Emirates Flight Training Academy (EFTA), the world-class flight training facility developed by Emirates Airlines, signed a memorandum of understanding (MoU) with Tarayan to share their expertise and jointly promote their training programs and facilities. Signed in Riyadh, the MoU was agreed by EFTA Vice President Capt. Abdulla Al-Hammadi and Al- Subaiei, in the presence of Prince Sultan and the governor of Riyadh, Prince Faisal bin Bandar. This collaboration reflects the shared interests between the two academies and the strong bond between the Kingdom and the UAE. "The EFTA is very pleased to partner with Tayaran. This collaboration will help develop the talent pool supporting the future growth of the aviation industry in our region," Al-Hammadi said. He added that he looked forward to working closely with Al-Subaiei to provide expertise and share technology, as well as to create a platform for a mutually beneficial exchange program between the two sides. http://www.arabnews.com/node/1491121/saudi-arabia Back to Top Jet Airways employees ready to pay airline dues from salary, stock option; mystery investors to offer Rs 3,000 crore Unlike the US and Europe, the management buyouts (MBOs) are rare in India and in nearly all the cases, they are carried out by private equity and venture capitalists. The recent proposal by the Jet Airways' employee unions to buy the troubled airline isn't, strictly speaking, an MBO, but this employees-led proposal is first-of-its-kind for the domestic aviation, and the Indian corporate sector as well. Two employee unions at Jet - SWIP (Society for Welfare of Indian Pilots) and JAMEWA (Jet Aircraft Maintenance Engineers Welfare Association) - have written a letter to SBI chairman Rajnish Kumar asking to consider their proposal to take over the management control at the carrier. The letter, signed by two more Jet senior executives, says that the employee consortium and outside investors are ready to buy Jet. The consortium has offered to pay Rs 7,000 crore to lenders - Rs 4,000 crore from the employee stock option programme spread over five years, and another Rs 3,000 crore to be arranged from outside investors. In a conversation with Business Today, Capt Ashwani Tyagi, general secretary of SWIP, says that almost every employee at Jet will be participating in this initiative. "Everybody wants this airline to run. It's a contribution, which will be coming from the salaries of the employees. We are giving a plan on behalf of everybody. We have given a letter to bankers. In the next stage, we will be explaining them the proposal and will listen to them also," he says. Jet's immediate funding requirement, as outlined in the resolution process in February, was about Rs 8,500 crore. Since then, the funding gap has gone up substantially as Jet owes money to its vendors (ground handling, petrol companies), airport authorities, employees and passengers. Tyagi says that in order to restart the airline, the employee consortium will be offering Rs 3,000 crore that's going to come from outside investors. He didn't divulge the identity - whether they are HNIs or venture/PE funds - of these outside investors. "They will buy the equity in the company. We cannot disclose the identity of the investors at the moment," says Tyagi. The proposal letter talks about not asking bond-holders of Jet for any haircuts. But, that seems difficult since the airline has an outstanding debt of over Rs 8,500 crore over and above the funding gap of at least Rs 8,500 crore. The amount offered by employee consortium would fall way short of meeting the debt obligations and the funding requirements. "We are discussing the matter with the banks. We have received a call from bankers. We are going to meet them. We are discussing among ourselves," says Tyagi. Jet's sale process is expected to conclude by May 10, and investors like Etihad Airways, TPG Capital, Indigo Partners and government-backed NIIF have reportedly shown interest in buying the airline after lenders floated EoI (expression of interest) document last month. Recently, a UK-based aviation entrepreneur Jason Unsworth evinced interest outside of the EoI process. The airline temporarily shut down its operations in mid-April after it could not arrange for additional funding from lenders to operate planes. Before that, the airline's fleet was scaled down substantially from about 130 aircraft to seven. Its landing and parking slots have been given to rival airlines like IndiGo, SpiceJet and Vistara for a brief period. The lenders are now hoping for a suitor to buy this millstone around their neck. It seems that the proposal by employees has been prepared in a jiffy and it seriously lacks in details. It's also not known whether the airline's senior management, including CEO Vinay Dube, backs such proposal. Besides the puzzling funding structure, there are some gaping holes in the proposal that might not pass muster with lenders, perhaps. https://www.businesstoday.in/top-story/jet-airways-employees-ready-to-pay-airline-dues-from- salary-stock-option-mystery-investors-to-offer-rs-3000-crore/story/342350.html Back to Top Airlines instructed to inspect some Boeing 737 Max engines after Southwest emergency landing In recent weeks, engine maker CFM instructed several airlines including American and Southwest to inspect a total of 25 engines on their grounded Boeing 737 Max fleets. The order follows a March 26 incident involving a Southwest Airlines 737 Max 8 plane where pilots had to shut down an engine shortly after taking off from the Orlando International Airport. Sources say the investigation into that incident revealed signs of "coking" around at least one fuel nozzle on the 737 Max's CFM Leap 1B engine. Coking, a byproduct of combustion, essentially involves a tar-like gunk that can build up. According to the FAA, coking can restrict fuel flow to some nozzles and causes greater amounts of fuel to flow into nozzles empty of the tar, thus creating a dangerous and uneven heating in the engine. Those initial findings prompted Southwest Airlines to inspect 12 engines from its fleet of 34 Boeing 737 Max jets parked in Victorville, California since the worldwide grounding. Southwest said in a statement its maintenance team completed those inspections on April 10 and has submitted the results to the engine maker, CFM. The inspections were described by a source familiar with the situation as "exploratory in nature." On March 26, a Southwest crew was ferrying a 737 Max 8, without passengers, from Orlando to Victorville for long-term storage. Shortly after takeoff, pilots experienced what was described at the time as a "performance issue" with the No. 2 engine, leading to an engine overheat. The plane returned to Orlando and landed safely and the incident is still being investigated. Southwest Chief Operating Officer Michael G. Van de Ven said, "The working theory on that particular airplane was that there was coking around the fuel nozzles and it created a variance in the hotspots and cold-spots in the engine." Southwest CEO Gary Kelly told an analyst he believes this is a "break-in issue" with the new CFM engines. "It's not unusual for an engine to have some break-in things happen and the engine for the most part has performed in line with our expectations, especially with the fuel efficiency," Kelly said. "It's a great quiet ride and it's a good engine." American Airlines said it "conducted a borescope inspection of three aircraft engines, at the request of the engine manufacturer, without any findings." CFM requested American change nozzles on two engines despite the lack of findings. Engine maker CFM is a joint venture between GE Aviation and Safran Aircraft Engines. "We're being very proactive with all the LEAP-1B operators during the grounding to ensure a smooth reentry into service when the time comes," GE Aviation Spokesman Perry Bradley said in a statement. "The activity centers on providing proactive guidance and recommendations to properly preserve the engines, complete any outstanding inspections and to pull forward any scheduled maintenance activities or Service Bulletin recommendations." This is the second maintenance issue to make headlines for Boeing recently. During a shareholders meeting in Chicago Monday, Boeing admitted an indicator light that could have alerted pilots to incorrect Angle of Attack (AOA) sensor readings that trigger the MCAS anti-stall system to override pilot controls was supposed to be standard feature but was not operational on all 737 Max jets "as intended." This admission came as a surprise to federal regulators. The failure to activate the AOA disagree light on all 737 Max aircraft will now be part of a review that began on Monday focused on the approval of the plane's automated flight control systems. The faulty AOA sensor readings and MCAS system are being investigated as the causes of two Boeing 737 Max crashes in recent months, an Ethiopian Airlines flight in March and an Indonesian Lion Airlines flight in October, that resulted in 346 total deaths. https://www.cbsnews.com/news/boeing-737-max-8-airplane-engines-ordered-for-inspection-on- southwest-airlines-american-airlines-aircraft/ Back to Top Piaggio Given Green Light To Restart Production Having secured agreement from the Italian government on April 24 on a plan to turn around the company, Italy's Piaggio Aerospace on April 30 confirmed it has now invited expressions of interest in its effort to find a buyer. "We want to begin exploring the demand in the market to better understand those who are currently potentially interested," the company said, adding it had placed a notice in a number of financial newspapers "following authorization from the ministry of economic development." Expressions of interest are due to be received by Vincenzo Nicastro, the government-appointed "extraordinary commissioner" who is overseeing the administration process, by May 15, 2019. The plan agreed on April 24, in a meeting chaired by the Italian government and including representatives of local authorities and trade unions, will see production of the Piaggio Avanti Evo restart while work will resume on securing certification of the P.1HH Hammerhead, an unmanned maritime reconnaissance version of the Avanti. Nicastro said the April 24 agreement "represents a first concrete step for the relaunch of the company and will allow it to present itself as an attractive opportunity for potential buyers." The plan also "foresees new contracts for the engine maintenance with a ten-year plan; a contract for the retrofitting of nineteen P.180-Avanti operated by various Italian Institutions; and the purchase of ten new P.180-Avanti. "Finally, the plan also includes the completion of the P.1HH HammerHead certification process, along with the subsequent acquisition of two systems and the development of further technology to support Piaggio Aerospace to compete in the international market arena. Each system is made out of a Ground Control Station and two aircraft. More systems would be acquired in the medium- term." The statement added that the long-term objective is to have capabilities in the company for developing further technology linked to the guidelines of the Ministry of Defense. This will allow the company to re-enter systems-design activity at a European level, in particular, the European medium-altitude long-endurance (MALE) UAV project. The government said almost all workers would re-acquire their jobs, but would initially be placed on laid-off status, starting May 2. In addition, once production is restarted the commissioner will be tasked with identifying an industrial partner. The statement added that the Ministry of Defence has confirmed it will comply with the timelines required to see the execution of contracts and work orders in progress, concerning the aircraft built by the company. In April, the company was still trying to sell P.180 Avanti Evo turboprop twins while administrators looked for a buyer for the company, which went into insolvency after its owner Mubadala, of the UAE, canceled its P.1HH Hammerhead order. On December 3, the Italian government appointed Nicastro, a lawyer, as extraordinary receiver to temporarily manage Piaggio. The Italian government pledged €250 million ($280 million) to complete the final stage of the P.1HH program, including €180 million to procure eight Hammerheads and four ground stations. There are some 37 government-owned Avantis, some of which need replacement, and efforts are being made to promote new aircraft sales for the Italian Air Force, coast guard, and police. https://www.ainonline.com/aviation-news/business-aviation/2019-04-30/piaggio-given-green-light- restart-production Back to Top ARSA Engages FTC on Maintenance Manual Availability The FAA's inconsistent enforcement of maintenance manual threatens competition in the aviation aftermarket, ARSA told the Federal Trade Commission in a letter submitted April 29. ARSA's submission was made in conjunction with the FTC's Nixing the Fix initiative, the centerpiece of which is a July 16 meeting to examine ways in which manufacturers in various industries limit third-party repairs. Among other topics, the workshop will address issues that arise when a manufacturer restricts the ability of consumers or an independent repair shops to make product repairs. ARSA told the FTC that the repair-restriction challenges faced by aviation repair stations are related to rules that require manufacturers to develop maintenance information and make it available. Specifically, the FAA fails to enforce the regulation requiring Design Approval Holders (DAHs) to develop basic maintenance information and thereafter make it available to maintenance providers (14 CFR § 21.50(b)), while aggressively enforcing the rule requiring repair stations to possess that same maintenance data (14 CFR § 145.109(d)). ARSA's comments were submitted in response to a call for empirical research and data about repair restrictions in advance of the July 16 meeting. ARSA's letter provides an overview the maintenance manual regulatory framework, describes the challenges repair stations encounter when seeking maintenance data and cites various examples provided by ARSA members (redacted to remove any identifying information) in response to association surveys and to the Small Business Administration's Small Business Ombudsman. Although the deadline to submit pre-meeting data to the FTC has passed, the deadline for submitting comments on manufacturer aftermarket restrictions isn't until Sept. 16. ARSA members concerned about the availability of maintenance data are encouraged to both submit comments and participate in the July 16 meeting to help shed light on DAH practices and encourage the FTC to address the issue. If you intend to do both or either, please let ARSA Executive Vice President Christian Klein know so the association can keep you informed of relevant developments. In addition to supporting the FTC's Nixing the Fix initiative, association and industry members should take action on other fronts: (1) Follow ARSA's lead and file a comment with the SBA Ombudsman. For information on the effort and access to an association-produced industry toolkit, visit: arsa.org/sbaicacomment. (2) Utilize ARSA's toolkit for requesting exemption from the "current" maintenance data requirement of § 145.109(d). For more information, visit: arsa.org/145-109. https://www.aviationpros.com/education-training/trade-associations-events/press- release/21078826/aeronautical-repair-station-association-arsa-arsa-engages-ftc-on-maintenance- manual-availability Back to Top SpaceX's mission to the International Space Station delayed by electrical problems New York (CNN Business)Here's something you don't want to hear aboard a 20-year-old space station hurtling through space at 17,000 miles per hour: Something has gone wrong with the power supply. Electrical problems on the International Space Station have delayed SpaceX's latest cargo mission to the orbiting laboratory. The rocket company was supposed to drop off a bundle of hardware and supplies to the six astronauts on board the ISS as part of an uncrewed launch Wednesday. But that launch was called off and the crew is working to restore the station's full power supply. NASA now says that if all goes well, the cargo capsule could launch Friday at 3:11 am ET. The space station's crew is not in immediate danger, NASA said in a blog post. The astronauts will spend Wednesday and Thursday working to replace a piece of hardware that routes the power generated by the space station's solar panels all over the station. The device failed earlier this week, leaving the space station running on about 75% of its usual power supply, according to NASA spokesperson Gary Jordan. Parts of the football field-sized space station went dark Monday, but the crew was able to keep the lights on and continue running experiments by rerouting power from other lines while they work to restore full functionality, NASA said in a Tuesday statement. SpaceX's Dragon 1 - the spacecraft that is supposed to make the trip - also relies on a giant robotic arm attached to the ISS that latches on to the capsule as its approaches. But the power supply issues left the robotic arm without a back-up power source. That caused safety concerns, so NASA asked SpaceX to delay its mission. The power problem throws a wrench into what has otherwise become a routine mission for SpaceX. The company is one of a couple commercial businesses that NASA partners with to occasionally ferry cargo and supplies to ISS crew members. SpaceX has contracts worth billions of dollars to do so. This upcoming resupply mission will mark SpaceX's 17th for NASA. The uncrewed Dragon 1 capsule will carry about 5,500 pounds of luggage, including hardware that will map carbon dioxide levels in Earth's atmosphere, a piece of equipment that could help communicate with deep-space exploration probes, and a host of science experiments. Even once the power is returned, there is a separate issue that could throw another curveball into SpaceX's plans: Where to land Dragon 1's rocket boosters after the spacecraft launches. SpaceX is the only company in the world that lands and reuses rocket boosters after missions to orbit, and it frequently does so. The company says reusing hardware is at the core of its plan to drastically reduce the cost of spaceflight. And the booster, the largest piece of the rocket and the part that gives it the initial thrust at liftoff, accounts for about 60% of the rocket's cost, according to CEO Elon Musk. The problem is that SpaceX used one of its ground pads in Florida for an April 20 test of its new Crew Dragon spacecraft. That test ended in fiery disappointment, and the site is out of order. SpaceX said the ground pad needs to be quarantined while it investigates what went wrong with the Crew Dragon test. SpaceX has a backup plan for the Dragon 1 launch, at least. The company can use a seaborne platform, or droneship, to serve as a landing side for its reusable rocket booster. Typically, droneships are only used for SpaceX missions that require the rocket to travel so far out over the ocean that the booster doesn't have enough fuel left to return safely to terra firma. The Dragon 1 doesn't have that issue, so the droneship will only need to travel 20 miles off the coast. The Crew Dragon mishap is still concerning for other reasons, though. That spacecraft is built to carry humans, and is a critical part of a separate, multibillion-dollar contract SpaceX has with NASA to eventually begin flying astronauts to the space station. Boeing (BA) has a similar contract. But both companies are already years behind schedule. An investigation into what caused SpaceX's Crew Dragon to misfire is underway. It could derail plans to fly astronauts aboard the spacecraft later this year. https://www.cnn.com/2019/05/01/tech/spacex-international-space-station-power- problems/index.html Curt Lewis