April 6, 2020 - No. 025 In This Issue ABARIS TRAINING COVID-19: Dassault Aviation Places two Falcon Aircraft at Service of Operation Resilience Chorus Aviation Announces Significant Measures in Response to COVID-19, including Dividend Suspension Rolls-Royce dumps dividend as aircraft maintenance activity slumps Airbus Extends Production Pause to German, U.S. Plants Lithuanian-Chinese MRO wins certification for line maintenance in China NSW RFS awards maintenance of 412 fleet to Coulson Aviation Asia-Pacific Addresses Post-Covid Landscape FAA, Groups Work On COVID Rule Relaxation. Delta Submits Application for Federal Stimulus Funds COVID-19 airside safety and operations guidance published by ACI World SpaceX's Starship Can Lift a Lot More Than We Thought. COVID-19: Dassault Aviation Places two Falcon Aircraft at Service of Operation Resilience Saint-Cloud, France, April 5, 2020 - To deal with the health crisis linked to COVID-19, Dassault Aviation has made two Falcon business jets available to the French Defense Ministry as part of the Operation Resilience intended to supply logistics and medical support for civilian corona virus control activities. The first mission, involving the two aircraft, took place on Sunday, April 5. It brought a team of 26 doctors and other medical personnel from Brest, Brittany back to Paris. The team had accompanied COVID-19 patients to Brest on a special medical train. The two Dassault aircraft, a Falcon 8X and a Falcon 900, are equipped for 15 and 13 passengers, respectively. They are operated by Dassault Falcon Service (DFS), a subsidiary of Dassault Aviation specializing in maintenance and flight operations, based at Le Bourget airport. DFS also supplies the flight crews. Depending on the requirements defined by government authorities, one or both of the Falcon aircraft can be made available to the Resilience unit of the French Air Force's Air Defense and Air Operations Command (CDAOA). Capable of landing at small airports in all weather conditions and without the need for ground infrastructure, the aircraft enable medical teams and equipment to be dispatched quickly across France and throughout the world. * * * ABOUT DASSAULT AVIATION: With over 10,000 military and civil aircraft (including 2,500 Falcons) delivered in more than 90 countries over the last century, Dassault Aviation has built up expertise recognized worldwide in the design, development, sale and support of all types of aircraft, ranging from the Rafale fighter, to the high-end Falcon family of business jets, military drones and space systems. The company has more than 12,500 employees. dassault-aviation.com https://www.globenewswire.com/news-release/2020/04/05/2011812/0/en/COVID-19-Dassault-Aviation-Places-two-Falcon-Aircraft-at-Service-of-Operation-Resilience.html Back to Top Chorus Aviation Announces Significant Measures in Response to COVID-19, including Dividend Suspension and New US$100 Million Credit Facility HALIFAX , April 6, 2020 /CNW/ - Chorus Aviation Inc. ('Chorus' or the 'Company') provides the following update on the impact of the coronavirus (COVID-19) outbreak on its business and its initiatives to preserve liquidity. The COVID-19 outbreak has led to worldwide economic uncertainty with companies around the globe taking painful steps to manage through this unprecedented, ever changing event. For the aviation industry, it has led to strict travel restrictions and global cancellations impacting all airlines around the world. The International Air Transport Association is currently estimating a US$252 billion year-on-year loss in passenger revenue worldwide. Even if the Company's business model does not directly expose it to the market risks ordinarily faced by airlines, substantially all its source revenue is derived from airline customers, through its Capacity Purchase Agreement ('CPA') with Air Canada and its leasing of aircraft to airline customers globally. The full extent of the duration and therefore impact of this pandemic are unknown. Joe Randell , President and CEO, stated, "Our industry is facing its worst crisis in history. The world situation is unstable and there are no signs of a near-term recovery. We entered this predicament from our strongest position ever, and it's devastating to be sending approximately 3,000 employees home, given the successes we've achieved together. Our employees are amongst the most talented in the industry, and I'm deeply troubled by the uncertainty and anxiety this is causing our employees and their families. The rapid and dramatic impact of this pandemic is astounding, and we're taking all measures to ensure the safety of our employees, mitigate costs, bolster our liquidity and strengthen our relationships with customers. We're prudently and responsibly managing our financial resources to secure our future and eliminating all discretionary cash outflows thus requiring a suspension of our dividend. These are very difficult decisions, impacting all of our stakeholders, but necessary to ensure we're ready to emerge from this worldwide crisis as resiliently and quickly as possible." Further information regarding the suspension of the Company's dividend is provided below. Operations Impact Chorus is working with its main customer and partner, Air Canada, which has implemented a second quarter network-wide capacity reduction of approximately 85%-90%. Chorus' Air Canada Express flying has been reduced by approximately 90% for April and May, resulting in significant temporary employee reductions. Chorus is reviewing the Canada Emergency Wage Subsidy program and is awaiting further details to assess any impact to these planned reductions. With the shutdown of its production line, Bombardier has notified Chorus of a temporary delay in the production of its order of nine Bombardier CRJ900 aircraft that were originally scheduled for delivery in 2020. As such, Chorus expects a corresponding delay in anticipated leasing revenue under the CPA for these aircraft. No timeline has been provided for the future delivery of the aircraft. The deposits on these aircraft were previously paid, and the Company has a financing commitment for them. In accordance with the CPA, the fixed fee does not vary with the amount of flying and is fixed based on agreed annual amounts. As with many leasing companies, Chorus has received requests from substantially all of its Regional Aircraft Leasing segment customers for some form of temporary rent relief. The period of relief most commonly spans three months, and where monthly rentals are deferred in full or in part, the customer provides a commitment to repay the amounts deferred following the end of the agreed deferral period. While we expect the industry, and especially the regional aviation sector, to recover in time, these deferrals will increase Chorus' trade receivable balance in the near term. Consistent with market norms, our leases are generally for a fixed term, contain an absolute payment obligation on the part of the lessee, and cannot be terminated early for convenience. Chorus also had pending transactions involving the delivery of three ATR 72-600 aircraft and three Airbus A220-300 aircraft in 2020. Chorus expects all these deliveries will be deferred. https://finance.yahoo.com/news/chorus-aviation-announces-significant-measures-113000843.html Back to Top Rolls-Royce dumps dividend as aircraft maintenance activity slumps Rolls-Royce Holdings PLC (LON:RR.) added its name to the coronavirus dividend dump as the engine maker faces an unprecedented cratering of aircraft engine aftermarket sales due to the pandemic. The primary impact from coronavirus has been on engine flying hours in its civil aerospace business as many airlines have now grounded their entire fleets, with flying hours of widebody aircraft falling roughly 25% in the first quarter, 50% in March and further deterioration expected in April and beyond. Coronavirus has been the cause of a "headwind" of roughly £300mln to liquidity in the last six weeks of the first quarter, the company said. It has begun to prepare for an anticipated reduction in engine delivery and maintenance, repair and overhaul volumes, having kept its output of new widebody engines broadly stable in the quarter, as aeroplane manufacturers maintained production levels. Reassuringly for the FTSE 100 company, which is part of the VentilatorChallengeUK consortium working to increase the UK's supply of ventilators, its defence business has seen "no material operational or financial disruption" from the virus in the first quarter as US and UK governments both designated it a critical supplier. Furthermore, the larger Power Systems arm has been "relatively resilient" as reduced demand from China and from oil and gas customers was partly offset by demand for critical backup power generation. However, it is expected to be hit by reduced economic activity in the rest of the year, particularly in industrial markets Another upside is that engineers have been getting on top of the recent costly technical issues that have affected the Trent 1000 engine, with "mid-20s" aircraft on the ground at the end of March, down from mid-30s reported at the end of February and expected to be reduced to single digits by the end of the second quarter. Rolls-Royce had gross cash of £5.2bn as of the end of March, after fully drawing down a £2.5bn borrowing facility and will increase total liquidity to £6.7bn after agreeing another £1.5bn facility with a consortium of banks. Withdrawing its final dividend for 2019 "in light of the uncertain macro outlook", will save £137mln. Shares in the company climbed 15% to 290.2p on Monday morning, still down around 57% in the year to date. "The big challenge for Rolls-Royce," said analysts at AJ Bell, "is addressing its reliance on maintenance and repair revenue from its installed base of aircraft engines. "If planes are being flown less, demand for these services will reduce dramatically and it remains to be seen what the long-term impact of coronavirus will be on the aviation industry." Analysts at the Share Centre said investors will be pleased the company is getting on top of the long-running issues with the Trent engine, and also that defence activity has not been affected by Covid-19 yet. "However, there were few other positives for investors in this update. Before the coronavirus outbreak there were signs of improvement thanks to the efforts of CEO Warren East, but with the current grounding of so many commercial jets, for what may be an extended period, the short-term outlook remains difficult." https://www.proactiveinvestors.com/companies/news/916649/rolls-royce-dumps-dividend-as-aircraft-maintenance-activity-slumps-916649.html Back to Top Airbus Extends Production Pause to German, U.S. Plants Airbus has decided to pause commercial aircraft production and assembly activity at its German sites in Bremen and Stade and its U.S. A220/A320 manufacturing facility in Mobile, Alabama, the company announced Monday. Airbus said the actions come in response to several factors related to the Covid-19 pandemic including high inventory levels at the sites and the various government recommendations and requirements that affect flow at different stages of production. The company will suspend commercial aircraft production operations in Bremen from April 6 to April 27, while "key" business support services continue at the site. In Stade, Airbus will pause production and assembly from April 5 to April 11, after which time selected departments will remain idle on certain days for several weeks. Key business support services will also remain active at that site. In Mobile, the pause in production begins this week and will last until April 29. Certain activities will continue on-site, including building and installation maintenance, aircraft maintenance, some critical product-safety and customer-driven operations, receipt and control of materials and components, critical administrative support, and preparation for activity restart, said Airbus. During the past two weeks, Airbus paused production and assembly work in France and Spain for four days to implement required health and safety measures. Production and assembly in France have resumed gradually since March 23. Commercial aircraft wing production operations in the UK and commercial aircraft production activities in Spain and Canada remain suspended due to government restrictions and what Airbus characterizes as high stock levels. "Airbus is supporting efforts globally to tackle the COVID-19 crisis and has carried out extensive work in coordination with social partners to ensure the health and safety of its employees," the company said in a statement. "This has been achieved by implementing stringent health and safety measures, while securing business continuity across the company." The Airbus moves follow a similar pause in production activities at Boeing, which on Sunday indefinitely extended a work stoppage at its plants in the Puget Sound area and Moses Lake, Washington. A limited number of employees continue to work at those sites to perform "essential" national defense and customer support functions. https://www.ainonline.com/aviation-news/air-transport/2020-04-06/airbus-extends-production-pause-german-us-plants Back to Top Lithuanian-Chinese MRO wins certification for line maintenance in China FL ARI, a maintenance, repair and overhaul (MRO) service provider based in Harbin, China, has received certified approval as an EASA Part-145 organisation for line maintenance, and is expecting that certification for base maintenance will follow. FL ARI is a joint venture between the China Aircraft Leasing Group (CALC), its mid-to-end-of-life aircraft solutions arm Aircraft Recycling International (ARI) and FL Technics, a Lithuanian MRO specialist. The accreditation means that the company is now cleared to provide line maintenance support for aircraft from the Boeing 737NG series to Airbus A320-family aircraft. "We are happy that the joint venture company has become the first independent MRO organisation in north-east China to receive EASA Part-145 certification for line maintenance services," says Donatas Dockus, chief executive of FL ARI. "It is forecast that the aviation industry in China will be one of the fastest growing in the world over the next 10 years. In the nearest future, FL ARI will extend its MRO capability by receiving EASA Part-145 certification for base maintenance services as well," Dockus adds. Mike Poon, chief executive of CALC and ARI is in no doubt that the joint venture's team will bring the highest work ethic and business standards to Asia's aviation market and that, by combining the resources of CALC Group and FL Technics' experience: "FL ARI will become a significant force in the MRO industry in China," he predicts. FL ARI provides MRO services for aircraft in China and Asia. Established in 2018, it focuses on aircraft line and base maintenance, aircraft disassembly, and engineering services consultation. Its facility holds multiple approvals including the CAAC 145 line maintenance certificate, the EASA Part-145 and China's first accredited aircraft disassembler under the CAAC's CCAR-145 Civil Aircraft Maintenance Organisation Certificate Regulations. The company is currently providing line maintenance and repair services for two reputable airlines in China. http://www.rusaviainsider.com/lithuanian-chinese-mro-wins-certification-for-line-maintenance-in-china/ Back to Top NSW RFS awards maintenance of 412 fleet to Coulson Aviation New South Wales Rural Fire Service (NSW RFS) has awarded the operation and maintenance of its Bell 412 fleet as part of an existing 10-year contract with Coulson Aviation PTY Coulson Group CEO Wayne Coulson said the company continues to invest in Australia, where it operated for more than 19 years. In a further signal of its intention to remain in Australia, Coulson Aviation has moved its Australian headquarters from Melbourne to Bankstown. The move means Coulson can leave the Sikorsky S-61 firebombing helicopter fleet in Australia year-round to support operational needs as they arise. "We are pleased to be expanding our partnership with RFS, providing them with our long history of operational excellence and a safety-first focus," Wayne Coulson said. Foster Coulson added: "Coulson Aviation has more than 36 years in aerial fire suppression across the globe, and we are proud to continue supporting NSW RFS with essential services during bushfire seasons. "Australia had a fierce fire season this past summer and as New South Wales marks the end of the most devastating bushfire season in this State's history, our teams are committed to continue to protect community members." https://www.airmedandrescue.com/latest/news/nsw-rfs-awards-maintenance-412-fleet-coulson-aviation Back to Top Asia-Pacific Addresses Post-Covid Landscape By mid-March, while much of the rest of the world was locking down to combat Covid-19, the Asia-Pacific (APAC) region was "beginning to see the light at the end of the tunnel," said Asian Business Aviation Association (AsBAA) chairman and CEO Wu Zhendong. This despite restricted flight operations and unknown industry effects going forward. Yet any region anchored by a 4,000-year-old civilization takes a long-term view, and with the epidemic receding-having claimed this year's ABACE trade show in Shanghai among its victims-its business aviation community is looking ahead. Jason Liao, chairman and CEO of consultancy China Business Aviation Group in Beijing, expects the crisis to have "very negative" effects on the industry now, "but the long-term prospect is very positive: general aviation is playing a very active role in the war against coronavirus by providing transportation of critical supplies and key personnel-the first time in Chinese history it has played such a critical role," he said. "The government, the public, the media, and potential customers have realized the benefits of business aircraft." TAG Aviation Asia CEO Jolie Howard agreed. "The number of humanitarian flights showed we can help in many ways beyond just transporting VIPs." She also noted that many Chinese students studying aboard, stranded by airline groundings, were repatriated by charter flights. "It has added good, positive visibility for our industry," said Howard. The 2002-03 SARS epidemic gave many regional providers experience that helped them operate during this current outbreak. "I would say it caused this part of the world to react more quickly," said Louis Smyth, a senior manager at Universal Weather and Aviation in Hong Kong. "We have a stock of masks and hand sanitizers, and we were able to quickly activate our emergency response and business continuity plans for each office." "We were actually doing very well in 2019-it was a record year for traffic," Smyth added. "Obviously with Covid, the future is a guessing game." REGIONAL REVIEW Southeast Asia is now the region's presumptive growth driver, according to Asian Sky Group (ASG). Japan, Singapore, Thailand, and Vietnam all saw increased activity last year, with more than half (51 percent) of respondents in Southeast and Northeast Asia reporting increased flying in last year's final quarter. Mainland China, meanwhile, registered an "unquestionably quite gloomy" 2019, said Jeffrey Lowe, managing director of Hong Kong-based consultancy ASG. Business aviation operations fell 18 percent year-over-year in Greater China, the region's largest decline, and the People's Republic's GDP growth in Q3 was the weakest in more than a quarter century. AsBAA's Zhendong sees some positives in China's slowdown. "Five or six years ago, the government was encouraging people to get into general aviation, but people found out it's not that easy to make money. Now, the industry has come down to reality," he said. "It's more professional, and that's a healthy thing." Meanwhile, the Philippines, Indonesia, and other "smaller regions," report increased activity, he said. AsBAA's current policy issues include ongoing advocacy for greater availability of landing and parking slots for business aircraft at congested airports, and more immediately, against the reduced operating hours at Seletar Airport, Singapore's general aviation [GA] facility. In tandem, AsBAA is focused on increasing membership to give the industry a louder voice, by opening membership to helicopter and light aircraft manufacturers and the other 80 percent of the GA industry that "is not in business jets," Zhendong said, which includes more than 1,000 companies. Newly hired AsBAA COO Jeff Chiang heads this effort to grow the current membership of about 150. In the absence this year of ABACE, its prime communication and meeting platform, AsBAA is teaming with ASG to host an online "Fleet Week" gathering on the web (April 21-23), anchored by the release of the consultancy's annual Asia-Pacific Business Jet Fleet Report. Cataloging the region's gains and losses of business aircraft, tracked by country, manufacturer, cabin size, and other categories, the report, traditionally released at ABACE, is a valued barometer of APAC's fortunes. Other AsBAA initiatives-its annual Safety Day programs staged in Hong Kong, Mainland China, Philippines, Singapore, and Malaysia; the in-school Discovery Program that educates students of all ages in the region about business aviation and career opportunities; and gender equality programs-remain on track. THE OEMS Sales activity for new business aircraft in the region has ground to a halt, according to manufacturers, as their salespeople have ceased travel and prospects are reluctant to hold face-to-face meetings. Meanwhile, the cancellation of ABACE eliminates a platform where prospective customers could see aircraft side-by-side. OEMs are adjusting marketing plans and recalibrating sales projections while continuing to expand their less glamorous, but essential regional aftermarket support services. Falcon Jet manufacturer Dassault Aviation was changing its regional marketing focus from the flagship Falcon 8X to the forthcoming Falcon 6X, slated to enter service in 2022 when Covid-19 emerged. Dassault displayed at the Singapore Air Show a cabin mockup of the 6X, touted as the widest and tallest cabin in a purpose-built business jet. "We got a lot of positive reaction," said Jean-Michel Jacob, senior v-p, Falcon Sales for APAC. "People were amazed by the size." Australia, New Zealand, and other Southeast Asia markets are promising, but China sales already faced headwinds due to its economy and impact of the trade war with the U.S. Dassault's production is unaffected by Covid-19-related supply chain issues, said Carlos Brana, executive vice president of civil aircraft for Dassault Aviation. "We have constant communication with suppliers, and we're watching very carefully." Meanwhile, Dassault has bolstered its already substantial regional aftermarket-services presence with the acquisition of ExecuJet's MRO business, which includes ExecuJet Malaysia at Subang Airport and four Australian locations and one New Zealand facility. "It's absolutely clear that our customers appreciate our incredible investment [in regional support], and this will help us a lot in the future," Brana said. Additionally, Hawker Pacific MROs are factory authorized service centers, and support teams are based in locations including Beijing, Hong Kong, Singapore, Korea, Australia, and Taiwan. Honda Aircraft Company has "rapidly expanded our footprint in Asia" over the past two years, said Michimasa Fujino, president and CEO of the HondaJet manufacturer. In this region, Honda is targeting "individuals who may have never considered the benefits of business aviation before," Fujino said, noting that 25 percent of its customers are first-time buyers. Last year the light jet earned its type certification approvals from China and Japan, and deliveries have commenced. Five HondaJets went to Japan last year, with more than 10 more on order. Further deliveries to China await resolution of the Covid-19 crisis. HondaJet China expects to receive China CCAR 135 certification for HondaJet charter operations for its FlightJoy aircraft charter and management venture, and approval for charter in Japan is also expected. The upgraded HondaJet Elite, which entered service last August, made its regional debut at the Singapore Airshow in February, receiving "a very positive response," Fujino said, forecasting "significant growth in the China-APAC region going forward." With its global market expanding, Honda plans to increase its four-per-month production rate following completion of a new wing production and parts storage facility this year, and is exploring "highly-automated technology to support our production." Featuring Honda's patented over-the-wing engine mount, the Elite version offers enhanced range, useful load and performance; improved avionics and automation in the cockpit; optional Bongiovi speakerless sound system in the cabin; and a belted lavatory in the back. A medevac interior is also available. Bombardier sees "real growth opportunities in China and Asia-Pacific," with strong interest in both its new Global 7500 and recently introduced Global 5500/6500 aircraft in the region, the company said. With the sale of its rail transportation division, announced in February, the Canadian manufacturer of Global, Challenger, and Learjet business jets will "focus all our capital, energy, and resources on accelerating growth and driving margin expansion in our market-leading $7.0 billion business aircraft franchise," said Alain Bellemare, current president and CEO, soon to be replaced in that role by former business aviation division leader Eric Martel. In late 2019, Bombardier delivered the first of four Global 6500s ordered by Hong Kong's HK Bellawings, which has also firmed up its order for four Global 7500s, with options for additional aircraft. To support Globals, Challengers, and Learjets in the region, Bombardier is expanding its Singapore Service Centre at Seletar Airport and will more than quadruple the facility's footprint. The upgraded center will offer full interior finishing capabilities, enhanced maintenance and modification capabilities, a paint facility, parts depot, and flight- and ground-handling services. Additionally, TAG Aviation's Hong Kong facility is now a Bombardier authorized service facility, offering line maintenance services for some Challenger and Global models, including the Global 7500. At the light end of its fleet, the Canadian airframer sees "real potential growth for the Learjet 75 Liberty in China and Asia-Pacific." Launched last summer, the updated platform features a lower price ($9.9 million) and a more comfortable cabin than its predecessor. Gulfstream Aerospace planned to showcase at ABACE a scaled interactive cutaway model of its forthcoming flagship, the G700, unveiled at NBAA-BACE in October. With the cancellation of ABACE, the U.S. airframer is highlighting its customer support network for the 345 Gulfstreams in the region's fleet, said a company spokeswoman. The company-owned Gulfstream Beijing service center at Beijing Capital International Airport offers service for Gulfstreams registered in China, the U.S., Hong Kong, Macao, the Cayman Islands, Isle of Man, and Guernsey and is complemented by Jet Aviation's Gulfstream-authorized maintenance facilities in Hong Kong and Singapore. At Gulfstream's Asia Customer Support Contact Center near Hong Kong International Airport, the staff includes a computer maintenance program analyst, over-the-counter parts sales and warranty specialist, and a regional customer support manager. Beefing up its regional support, last year, Ernest Tai joined the Asia-Pacific team as managing director for customer support. With sister company Jet Aviation's acquisition of Hawker Pacific, the latter's MRO station at Shanghai's Hongqiao International Airport is now a Gulfstream authorized warranty facility. The location, which hosts ABACE, last year received approvals from the CAAC and the Bailiwick of Guernsey to perform maintenance on the G650, said Louis Leong, v-p Asia and general manager for Gulfstream sister company Jet Aviation's Singapore location. Textron Aviation, manufacturer of Cessna, Beechcraft, and (out-of-production) Hawker business aircraft, continues to see "strong customer interest" in the APAC region. Mike Shih, Textron v-p of strategy and business development for China, singled out the Cessna Grand Caravan EX single-engine turboprop and Beechcraft King Air 350i twin-turboprop as popular models, finding favor "in special-mission operations, such as medical transport." To support the fleet, Textron recently added three more company-owned service centers with the January acquisition of Australian MRO Premiair Aviation, previously a Textron authorized service facility, which adds a trio of facilities on the island continent, where the airframer recently established a parts warehouse. Textron also recently opened a new service location in Manila in collaboration with PhilJets Aero Services and expanded its Singapore parts warehouse. Meanwhile, whatever the current market in China, Textron Aviation and its sister company helicopter manufacturer Bell "continue to see firm support from the Chinese government in support of general aviation," said Shih. U.S.-based and Brunei-owned Piper Aircraft, manufacturer of aircraft spanning the general aviation and business aviation markets, recently introduced a new version of its flagship M600 single-engine turboprop and two new "value-priced" piston trainers. The M600/SLS (Safety, Luxury, and Support) includes its Piper's Halo system, featuring Garmin's Autoland as standard equipment. Autoland takes control of the aircraft in the event of pilot incapacitation, selects an appropriate airport, and then flies, lands, and stops the aircraft on the runway, all while autonomously communicating with air traffic control facilities and passengers. At the other end of its fleet, Piper has introduced the Piper Pilot 100 and Pilot 100i trainers, available in limited quantities beginning this year. The Pilot 100 features a 180-hp Continental Prime IO-370-D3A engine and Garmin G3X Touch avionics. The Pilot 100i offers an IFR-capable upgrade package. MANAGEMENT AND CHARTER "To sum up, there's quite a bit of uncertainty," said Howard at TAG Aviation Asia, which has some 46 aircraft under management in locations including Mainland China, Hong Kong, Thailand, Malaysia, and Indonesia and offers charter, management, MRO, and transaction services. The virus came to wide attention in late January when many clients were on vacation for Chinese New Year. "Quite a number of clients overseas decided to extend their stays, to see how things go," Howard said. Since then, flight restrictions have expanded in lockstep with the epidemic. "I don't think we're seeing the full impact yet," he added. "We've never seen these types of travel restrictions." Among many unforeseen impacts: temporarily out-of-work airliners are taking up swaths of parking at prime airports, squeezing out business aircraft. Meanwhile TAG continues a "transformation" that began three years ago, expanding from management-only to become a full-service provider, a change made possible by owners' willingness to make their aircraft available for charter. "As the market matures, people realize the cost benefits" of generating charter revenues to offset operating expenses, said Howard. Additionally, TAG's MRO services support its own fleet while also drawing other operators' customers for maintenance. And its on-airport operations-TAG opened a full-service FBO in Macao last year-serve as another customer portal. Malaysia is among the region's burgeoning business aviation markets. Asia Jet Partners Malaysia (AJPM), the country's sole commercially registered private jet operator, is "growing our charter and managed fleet and bolstering our maintenance capability," said company CEO Stutijn van Till. AJPM is adding this spring a second Bombardier Global 5000 to its fleet, based at Subang Sultan Abdul Aziz Shan Airport in Kuala Lumpur, and plans to move into a new hangar facility as part of the airport's redevelopment masterplan. Five-year-old AJPM has a 9M commercial air operator certificate from the Civil Aviation Authority of Malaysia and an air services permit from the Malaysian Aviation Commission. "We are looking to establish a suite of business aviation services in Malaysia that will rival the excellent facilities at Seletar in Singapore," said van Till. "Mature Southeast Asia business hubs such as Hong Kong and Singapore are becoming congested and expensive. Our goal is to deliver a first-class experience for private jet companies coming into Subang, supported by modern facilities and excellent infrastructure." Charter operator VistaJet is "cautiously optimistic" for 2020, "despite the unique challenges" Covid-19 presents, the company said. In March, the flagship service of parent company Dubai-based Vista Global Holding (VGH) reported a 16 percent increase in flights through the first 10 weeks of the year, a jump that "includes fliers looking for safer and cleaner alternatives to commercial flying," said VGH chairman and VistaJet founder Thomas Flohr. This follows "a record" 2019, according to Vista. Globally, memberships rose 26 percent, flights increased 24 percent, and passenger count grew 35 percent. Memberships in Asia, which represent 11 percent of global demand, grew by 6 percent, with China, India, and Singapore leading the charge. VistaJet operates only late-model, large-cabin Bombardiers, including the Global 7500, which joined the fleet this year. Singapore-based charter broker Apertus Aviation specializes in smaller-cabin jets for charter flights within the APAC region and for Asian clients traveling within the U.S. and Europe. Overcoming "cultural resistance to smaller planes is a constant battle," said managing director Ringo Fan. "But China is a fast learner; people adapt quickly. In business aviation as well, the next generation is realizing a large cabin isn't necessary with only two passengers." The company has staff in Hong Kong, Beijing, and as of last year, London, in addition to its Singapore headquarters. In addition to a network of vetted operators, Apertus is the exclusive charter agent for a G200 based in China, one of the smallest business jets available for charter in the People's Republic, according to Fan. Though demand in China "is dynamic, going up and down, one day to the next," he said, the 10-year-old brokerage has never felt the impact of austerity or anti-corruption campaigns. "We've always focused on the less wealthy part-they're not multi-millionaires," said Fan of his customers. "That's a pocket of the population the government relies on to grow the economy steadily. These clients aren't flashing [expensive] watches around, they don't need the ramp presence of a G650." Fan, whose parents are Chinese, was born and grew up in Australia and wants to fuse the best of those cultural differences in delivering the company's services. Its sister enterprise, 1903 Aviation (named for the year of the Wright Brothers' first powered-aircraft flight), is a membership program for international lift offered in collaboration with German operator Air Hamburg, providing customized block hour charter programs. Referrals from 1903 customers, whose associates sought ad hoc charter, led to Apertus's foundation. FLIGHT SUPPORT SERVICES Coming out of 2019, flight handler Universal Weather and Aviation ranked Japan and Thailand as top blossoming regional markets, said Smyth. China dropped off the list last year, but Beijing, where Universal provides handling services for international flights (sans facilities) continues to register heavy traffic, said Cynthia Zhang, UA China Managing Director. Where it would usually handle about 30 flights in February, after the cancellations this year, it handled five. Meanwhile, with more business aviation users employing flight-planning and filing software for their flight handling, Universal has been de-emphasizing its in-house handling and support services in favor of developing and providing online tools and apps of its own, like its uvGO mobile flight-planning app. That shift was underscored by the recent sale of its UVair fuel subsidiary to World Fuel (now Universal's exclusive fuel provider). "Fuel is a commodity, and margins are going to be lower and lower," said Smyth. "But traffic is increasing, so one of the best focus areas is technology. We want to hit the perfect full-service balance between high-touch and high-tech. Jetex reported increased demand for charter and ground handling services in the APAC region, with charter flights up more than 20 percent in February, year-over-year, and expects the region's appetite for these services "will remain resilient." Bolstering that belief, Jetex points to recent research from the World Travel & Tourism Council. Examining previous economic calamities that impacted travel, the council reported that between 2001 and 2018, the post-crisis recovery time decreased from 26 months to 10 months, on average. PREOWNED MARKET EFFECT As with new aircraft, preowned sales in the region have come to a standstill, and the long-term impact of the crisis on inventory and pricing is unknown, but there are no signs of panic in the market. "We're not seeing a surge of aircraft for sale," said TAG's Howard, adding, "more uncertainty is going to play out." David Dixon, president of aircraft transactions specialist Jetcraft Asia, believes this crisis will have more far-reaching effects on business as a whole than did SARS, due to the stronger connections between China and the rest of the world economy today. But it could have the opposite impact on preowned transactions. "If SARS is a pointer to the impact on business aircraft sales, there were, in my experience, some buyers who were unconvinced that they needed or wanted a private aircraft until the health threat changed everything," Dixon said. "I sold a few arising from this problem. In that sense, it might not be all bad." GOING FORWARD No doubt China remains the region's 800-pound sleeping gorilla at the moment, but no one sees the People's Republic as backing down on its private aviation bet. "At the highest level in China there is still recognition and support and investment in general aviation," said Doug Carr, v-p of regulatory and international affairs for ABACE co-sponsor NBAA. "What that looks like on the front lines are more companies, more policies, and procedural changes" to encourage its growth. The NBAA is already looking ahead to next year's Shanghai show, where it will "continue focusing on our core messages," those being increased access to airspace, technology innovation, safety training, and business aviation-friendly policies and procedures. Carr added that the association had no major announcements or initiatives it planned to introduce at ABACE this year, having released at NBAA-BACE in October its proposals for protecting the privacy and security of business aviation aircraft and flights in the era of ADS-B and other flight-tracking and identification technologies, a current priority. As for the cancellation of this year's event, "We always came at it with an eye toward the health, safety, and well-being of all show participants," said Carr. "We have a standard, and when we looked at the situation in late January and early February, we made the decision [to cancel] with transparency." Among the good news for those who are or will be flying privately to China, operators are seeing "night-and-day improvements in business aviation operations," said Nat Iyengar, a Hong Kong-based captain for Jet Aviation. He cited improvements in ATC, handling and ground support services, and better access to airports and airspace. "Operating is 100 times easier now than a decade ago, and I'd say almost 100 times easier than five years ago," Iyengar said. China's ATC is "reaching out to foreign ATC units-Eurocontrol, the FAA-and sending their people around the world, making the system more efficient." One example: "For the first time in my life, we got cleared for a visual approach [in China]. That was not in the Chinese playbook." Though the military controls China's airspace, pilots are now often receiving permission to remain at requested altitudes far longer before descents and climbs to requested altitudes sooner after takeoffs, he said. "Yes, there are times when you're flying Beijing to Shanghai and you'll be kept at 30,000 [feet]; but there are times [flying] Washington, D.C. to Boston you'll be at 3,500." Another change Iyengar has observed: "You see a lot of business jets in China which are true company airplanes; you're not seeing the high-flying, ostentatious flamboyant spending you did [before]. There's a very established wealthy, and middle class." Summing up what could be advice for all of business aviation in China, Iyengar has one word of advice for passengers and crews: "Patience." Long delays on departure and for taxiing are common. https://www.ainonline.com/aviation-news/business-aviation/2020-04-06/asia-pacific-addresses-post-covid-landscape Back to Top FAA, Groups Work On COVID Rule Relaxation The FAA has put all its COVID-19-related exemptions, policy deviations and various other pronouncements approved so far on a single webpage to help pilots, operators and maintenance organizations navigate the myriad time and personal-contact dependent regs that govern aviation enterprise. The agency has essentially thrown out the book that it normally throws at violators of the tightly governed system of checks and tests that rule participation in the industry. Friday's list had 17 specific memos, exemptions and policy changes that will allow aircraft to fly while the virus battle is fought. It's likely the list will be expanded as the agency has asked aviation organizations to point out possible exemptions. GA groups have sent a shortlist. A letter signed by eight general aviation groups highlights seven regulatory requirements that are difficult or impossible to achieve during the current regime of physical distancing and FAA service curtailments and are necessary to keep everything from medevac flights to critical supply deliveries and even mosquito control operating. "The agency stated that a challenge to expand these regulatory approaches to other segments of the aviation industry that conduct operations in general aviation is the requirement to justify the exemption or accommodation by showing a benefit to the public," the letter reads. "Our industry can easily show its important role to the U.S. and worldwide economy and an overall public benefit." https://www.avweb.com/aviation-news/faa-groups-work-on-covid-rule-relaxation/ Back to Top Delta Submits Application for Federal Stimulus Funds Delta Air Lines has submitted an application for federal stimulus grants, telling employees Friday that business conditions are worsening. The Atlanta-based airline expects its second-quarter revenue to be down 90% and is burning through more than $60 million in cash a day. And, Delta CEO Ed Bastian told employees, "we know we still haven't seen the bottom." Bastian told employees in a Friday memo that the federal grants "are not nearly enough," and if it did not take steps to save costs and raise new financing, "that money would be gone by June." About 30,000 of the company's 90,000 employees have volunteered to take unpaid leave. Bastian said Delta still needs more to volunteer to take unpaid time off and is also offering longer leaves of six months, nine months or 12 months. The airline, which has more than 36,000 employees in Georgia, is cutting flights 80% this month. The company has also reduced pay of hourly ground workers and merit employees 25% by cutting their hours. Delta is eligible for a portion of $25 billion in worker protection grants for passenger airlines. The first deadline for airlines to apply for funds from the CARES Act was the close of business Friday. "We submitted our application this morning to Treasury Secretary Steven Mnuchin for our share of the worker-protection grants," Bastian wrote to employees. "We appreciate the decisive action of our nation's leaders to protect our people." In order to be eligible, the stimulus program requires airlines to "refrain from conducting involuntary furloughs or reducing pay rates and benefits until September 30, 2020" for employees other than corporate officers, as well as curb shareholder payouts and maintain a minimum number of flights. Although Delta is cutting hours and total pay, it says it is not cutting "pay rates," per the wording of the bailout package. Also Friday, Warren Buffett's Berkshire Hathaway, a major shareholder in Delta, disclosed the sale of a portion of the millions of Delta shares it owns. Buffett's firm also sold a portion of the Southwest Airlines shares it owns. The stimulus package also includes $25 billion in loans and loan guarantees for passenger airlines. Airlines would qualify for the loans if they can't get credit otherwise. Delta is focusing on cutting costs by slashing payroll expenses, halting capital projects, consolidating airport facilities, "delaying non-essential maintenance" and looking for other savings. The company has parked more than 450 of the 600 planes it will ground this month. "We know that the second quarter will be even more difficult than the first as the pandemic continues to evolve," Bastian wrote. https://www.aviationpros.com/airlines/news/21132744/delta-submits-application-for-federal-stimulus-funds Back to Top COVID-19 airside safety and operations guidance published by ACI World Airports Council International (ACI) World has issued guidance for airports - titled 'Airside Safety and Operations under COVID-19' - on best practices in order to help them to adapt their airfield operations in response to the effects and impact of the COVID-19 pandemic. Based on a survey conducted with the members of the ACI World Safety and Technical Standing Committee, roughly half of the respondents had experienced a 90 per cent or greater reduction in aircraft movements, and 64 per cent had experienced a 70 per cent or greater reduction. Even with enormous global restrictions on travel, most airports surveyed had not restricted their hours of operation due to COVID-19. However, three quarters of respondents indicated that they have closed some of their airside infrastructure in order to adapt operations to best limit the impact of the virus. In addition, most have had to implement special arrangements to park large numbers of grounded aircraft. ACI World's new advisory bulletin provides guidance on accommodating parked aircraft, as well as the maintenance of airside infrastructure (runways, taxiways, aprons, stands, piers), the management of airside operations teams and continuing essential cargo operations. Angela Gittens, ACI World Director General, said: "The COVID-19 pandemic has resulted in an unprecedented disruption of global air transport and has imposed operational challenges to airside infrastructure. Despite the dramatic decline in passenger traffic, many airports remain open for cargo operations and the continuity of the air cargo business is essential for communities, the global economy at large and for fighting the ongoing pandemic." Gittens continued: "The health and welfare of travellers, staff and the public, and limiting the spread of communicable diseases, are the priorities for the aviation industry, and 'business as usual' no longer applies. It is imperative for airports to implement necessary measures to ensure best safety practices for airfield operations and this guidance will assist them in this work." https://www.internationalairportreview.com/news/114560/covid-19-airside-safety-operations-guidance-aci-world/ Back to Top SpaceX's Starship Can Lift a Lot More Than We Thought What's inside Elon Musk's quickstart guide to space travel? Well, mostly it's technical data, and even that's more like background information and high-level overviews than how to "use" anything. The concrete takeaways are intended for just one group: "Potential Starship customers can use this guide as a resource for preliminary payload accommodations information." In that sense, using a Starship from Musk's SpaceX company could become the newest form of container shipping. Having a standardized, predictable amount of space across a fleet is exactly what led to the development of cargo containers, which reduced cost across almost all legs of shipping by saving fussy labor to load and unload individual items or boxes. Musk has even used recycled cargo containers in the building of his SpaceX Starship headquarters. Inverse reported that a Twitter user first noticed the potentially huge payload a Starship can carry into low Earth orbit. A table in the user guide lists 100 tons, but from other math in the table, one can extrapolate that number is more like 150 tons. That means the entire decommissioned Mir space station could be taken up in one launch. Even for a much higher altitude of orbit, the Starship still purports to carry up to 21 tons. That number is large enough to include virtually all the different satellite models ever launched or the entire Apollo lunar lander unit. And the user guide (seen below) offers a tantalizingly real call to action, like any piece of sales collateral: "For payload specific loads or rideshare loads assessments, contact sales@spacex.com." The Starship is one of Musk's most ambitious and fast-moving projects among a portfolio that includes bewildering ambition and scope already. SpaceX plans to begin commercial flights in 2021, with a moon trip scheduled for 2023. Even if the company can't hit these goals-and truly, no one knows how the global COVID-19 (coronavirus) pandemic will ripple effect into the future-Musk has a track record of both delivering in short time frames and staying flexible and optimistic after the kinds of failures and iterations that all major projects encounter. For longer trips to the moon and, Musk hopes, eventually Mars, these numbers are less about payload and more about the number of people who can safely travel and be housed. SpaceX says Starship will carry up to 100 people, which is many times more than the current record of just over a dozen people in one spacecraft at one time. If this many people could travel even into low Earth orbit at the same time, the role of space travel in the public imagination would certainly change and become, well, more grounded in reality. And since Starship is fully reusable, a crew could hypothetically fly up with the pieces of a satellite or space station and assemble it before safely returning to Earth. There has never been a "fleet" of ships of the size Musk has planned for SpaceX, and the possibilities are really exciting. https://www.popularmechanics.com/science/a32052844/spacex-starship-user-guide-payload/ Curt Lewis