July 6, 2020 - No. 049 In This Issue 1,000 jobs to go at German aircraft engine firm Reliance plans to up aviation fuel stations by 50% Failed U.S. Expansion Behind Resignation of Israel Aerospace Industries' CEO Dubai's new law to help flying taxis, drone deliveries take off with a network of mini airports Pratt and Whitney to replace old faulty engines before deadline Hundreds of KQ staff set to be fired as carrier right sizes operations S. Korean Workers Arrive in South Asian Countries Despite the Region's Rampant Spread of COVID-19 How Airbus, equipment manufacturers and subcontractors will emerge from the crisis together Everything you should know about Aircraft Graveyards SpaceX Starship prototype bears down on first Raptor engine tests 1,000 jobs to go at German aircraft engine firm German aircraft engine manufacturer MTU Aero Engines said Monday it is planning to cut at least 1,000 jobs as the impact of the coronavirus continues to hammer the aviation industry. "By the end of 2021, the company aims to reduce capacity at its German and international locations by a total of around 10 to 15 percent," the company said in a statement. Headquartered in Munich, MTU Aero Engines employs more than 10,000 people worldwide and provides maintenance services as well as engines for military and commercial planes. "As a result of the pandemic, the aviation industry will remain under pressure for some time to come," CEO Reiner Winkler was cited as saying. "It will be years before air traffic-which is the foundation on which our activities in series production and our maintenance business rest-returns to pre-crisis levels," he added. The company hopes however to avoid compulsory redundancies, making the savings instead through partial retirement, early retirement and other arrangements. Travel restrictions introduced to slow the spread of the coronavirus since March have put a stranglehold on the aviation industry around the world. European aircraft maker Airbus said last week it is planning to cut around 15,000 jobs worldwide, 11 percent of its total workforce, in response to the "gravest crisis" the industry has ever seen. Germany's Lufthansa, Europe's biggest airline group, has been granted a nine billion euro ($10 billion) bailout from the German government, saving it from bankruptcy as a result of crushed travel demand. https://techxplore.com/news/2020-07-jobs-german-aircraft-firm.html Back to Top Reliance plans to up aviation fuel stations by 50% New Delhi: Billionaire Mukesh Ambani's Reliance Industries Ltd (RIL) plans to increase its network of aviation fuel stations by 50 per cent as it looks to capture greater market share in the business currently controlled by public sector oil retailing firms. In its latest annual report, RIL said the double-digit growth observed over 52 consecutive months might have been stalled due to the COVID-19 pandemic, but India continues to be one of the fastest growing aviation markets in the world for the fifth consecutive year. RIL, which operates the world's largest single location oil refining complex, plans to capture this opportunity through increased presence at airports to refuel airplanes. Air-passenger traffic in India rose 9 per cent even in February after the Indian carriers recouped to full capacity that was lowered following the closure of a major domestic carrier in the first few months of financial year 2019-20 (April 2019 to March 2020) as well as disruptions at Mumbai airport owing to construction and maintenance, it said. Following the COVID-19 pandemic, while travel restrictions were being imposed elsewhere, India was largely unaffected till the end of March 2020, before the sharp escalation in travel bans globally and lockdowns impacted India's aviation sector too. "On account of its network strength, cost competitiveness, industry leading technology and best-in-class service standards, RIL improved its volume share in the domestic market," according to the annual report. Reliance Aviation has the highest market share in 20 per cent of the operating airports. "RIL is looking to increase its network to 45 locations as against 30 at the end of FY 2019-20 and is well geared to benefit with the growth in the Indian aviation market," it said. India currently has 256 aviation fuel stations, with state-owned Indian Oil Corp (IOC) owning 119 of them. Bharat Petroleum Corp Ltd (BPCL) has 61 and Hindustan Petroleum Corp Ltd (HPCL) the remaining 44. RIL is the largest private aviation fuel retailer with 31 stations, according to the latest data from the oil ministry. In comparison, RIL's auto fuel retailing network is very small. Out of 69,392 petrol pumps in the country, RIL operates 1,398. IOC has the highest number of outlets at 29,208, followed by HPCL with 16,557 and BPCL with 16,309 petrol pumps. Russia's Rosneft-backed Nayara Energy is the biggest private auto fuel retailer with 5,720 petrol pumps. RIL said it registered 9.8 per cent growth in retail diesel sales and 14.7 per cent in retail petrol volume as compared with 1.5 per cent and 6.3 per cent for industry, respectively. During financial year 2019-20, RIL registered over 10 per cent growth in average outlet sales volume. On bulk diesel, RIL said it registered a volume growth of 10.8 per cent, increasing market share to 8.8 per cent, despite expected demand contraction and margin pressure. Direct sales volume would be driven by continued volume growth from railways and sourcing higher volume shares in State Transport Units (STUs), it said. https://www.deccanchronicle.com/business/companies/060720/reliance-plans-to-up-aviation-fuel-stations-by-50.html Back to Top Failed U.S. Expansion Behind Resignation of Israel Aerospace Industries' CEO The resignation of Israel Aerospace Industries' CEO Nimrod Sheffer last week came as a surprise to many. His tenure lasted only two years, during which the state-owned company saw its profits rise from an operating loss in 2018 to a 6% operating margin in the first quarter of this year. More than that, Sheffer and his team had signaled over the last two years that they were embarking on a long-term plan for the company, Israel's largest aerospace and defense maker. They were also preparing for privatization through an initial public offering on the Tel Aviv Stock Exchange. Sources at the company linked Sheffer's untimely resignation to the failure of IAI's drive to expand its North American sales by $1 billion via a greatly expanded IAI North America subsidiary. IAI had high hopes for the U.S. market. Two years ago, just before Sheffer was named CEO, it hired Swami Iyer as CEO of IAI North America. Iyer had previously been a vice president for defense and space at Honeywell Aerospace and prior to that had been a lieutenant colonel in the U.S. Air Force. Iyer was given responsibility for IAI's existing North American businesses, including Stark Aerospace and Elta North America. Big new office space was leased in Herndon, Virginia, outside Washington DC and scores of new employees - mostly from the U.S. Air Force and Honeywell - were hired. IAI's chairman, Harel Locker, said that inside IAI there were differences of opinion over how to target the U.S. But Locker said he accepted the recommendations of the Boston Consulting Group, which was retained to advise it how to invest hundreds of millions of dollars in North America, and which recommended that the American subsidiary should be staffed by Americans. The result was that IAI's Israeli executives in technology and marketing were constantly flying back and forth between Tel Aviv and Washington to bring the new hires up to speed on the company's technology and products and to familiarize them with its operations and strategy. IAI North America had 185 employees in marketing and production, at a cost of $200 million, according to the parent company's 2019 annual report. Iyer himself was IAI's best paid executive, earning $511,000 that year. The annual report doesn't show it because IAI North America is a wholly owned subsidiary and its results are broken out. However, the reports prove that the unit lost $9 million in 2018 and $10 million in 2019. They are expected to widen more this year due to the costs of shutting down the subsidiary. While IAI's North America's 2019 sales were $930 million, none of them were due to the unit. Two months ago, Sheffer decided to close down IAI North America and Iyer announced his resignation. North American sales and marketing is going back to the individual IAI divisions. No one at the top of IAI has been prepared to take responsibility for the failure, which only made the problematic relations between Sheffer and Locker even worse. Sources couldn't point to any difference between the two on substantive policy issues. But, they said, Sheffer often clashed with Locker, a dominant figure who sees his role as chairman as broader than supervising management. The had clashed, for instance, over whether to keep Yossi Melamed, general manager of IAI's aviation group, on another year beyond his formal retirement date. Locker wanted to, Sheffer didn't, but Locker had the final word. At the same time that Sheffer announced he was quitting on Wednesday, IAI's board instructed management to cut 900 jobs from the aviation division. The division encompasses IAI's aircraft maintenance and upgrade operations and its executive jet business, all of which is expected to shrink as the coronavirus lockdown depresses global air travel. The company's powerful union responded by declaring a labor dispute, a precursor to a strike. In any case,it's unlikely the downsizing will result in 900 layoffs - management spoke of that number as a basis for negotiations. IAI's new CEO, whoever it will be, has no shortage of work ahead of him or her. The company's defense business is highly profitable and had enjoyed strong growth in recent years. It is relatively immune to the impact of the coronavirus, but that has been due to contracts it won at least five years ago. IAI's new boss will have to ensure the company wins new ones. https://www.haaretz.com/israel-news/business/.premium-failed-u-s-expansion-behind-resignation-of-israel-aerospace-industries-ceo-1.8972274 Back to Top Dubai's new law to help flying taxis, drone deliveries take off with a network of mini airports Dubai on Saturday issued a new law regulating the operations of drones, or unmanned aerial vehicles (UAV), taking a step closer to connecting the city's landmarks and buildings aerially, through the 'Sky Dome' project. The law has been issued by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai. The Sky Dome project will see the Dubai skies buzzing with unmanned flying objects that will connect places and buildings through landing pads and mini airports across the city. The law will pave the way for granting instant government permits and NOCs to public and private entities in order for them to use drones to provide related services in the future, such as flying taxis and drone delivery services. It is the first step towards creating the infrastructure for drone systems and facilitates the development of an integrated framework for licensing and issuing certificates, permits, NOCs, and inspection services related to drone systems, and a legal system for investigating accidents and incidents. An integrated business system for drones transport services, air freight and logistic services will also create an important new economic tributary for Dubai's economy, officials said. The law will help Dubai position itself as a centre for the manufacturing of drones and smart transportation. The drones transport systems market consists mainly of delivery of goods; transport of passengers and freight; and surveying and imaging. Dubai has previously tested the world's first self-flying taxi service. A video released back in 2017 shows the autonomous taxi taking off against the stunning backdrop of the Dubai skyline and it is seen soaring over the city before landing safely at the same spot. Drones systems policy Reacting to the law, Sheikh Ahmed bin Saeed Al Maktoum, President of the Dubai Civil Aviation Authority (DCAA), said it establishes the framework for the emirate to be one of the world's leading cities in "shaping the future of civil aviation". "The new law supports the implementation of the DCAA's Dubai Sky Dome initiative, which seeks to build a structural eco-system for UAVs. In cooperation with the General Secretariat of The Executive Council of Dubai, the initiative has created a detailed drone systems policy," Sheikh Ahmed bin Saeed said. Mohammed Abdullah Ahli, Director-General of the DCAA and CEO of Dubai Air Navigation Services, explained that the project will create a master plan for the infrastructure of ground stations and their use as airports; loading and connecting stations; and maintenance, operation and freight stations. It will also classify the main urban areas for the distribution of ground and air service sites. Regulatory services Another key component of the project is a unique integrated smart platform for providing regulatory services for UAVs to use domestic airspace and other related government services. The digital platform will grant instant government permits and no-objection certificates for drone operations. It will also facilitate efficient governance of the sector to ensure security and safety and prevent any disruption to the civil aviation airspace. Neutralising security threats Obaid Saif Al Nuaimi, Director of Aviation Security and Dangerous Goods at the DCAA, said that one of the important components of the project is a system to address safety and security risks of drone activities. The 'Dubai Shield' system will "detect and track drones and take necessary counter measures in cooperation with relevant government and security authorities," he said. https://www.khaleejtimes.com/uae/dubaiNew-law-takes-Dubai-closer-to-flying-taxis-drone-deliveries-1- Back to Top Pratt and Whitney to replace old faulty engines before deadline US-based aircraft engine maker Pratt & Whitney (P&W) will complete replacement of its older engines that power Airbus A320neo planes operated by IndiGo and GoAir with modified engines much ahead of the 31 August deadline said a senior company official. "At the moment, we have completed replacement of about 220 engines at IndiGo, which has about 125 P&W-powered A320neo planes (250 engines) in its fleet. We have also replaced 60 of the 86 engines that power GoAir's A320neo fleet. GoAir has about 43 such planes in its fleet," said Ashmita Sethi, president and India head at P&W, United Technologies Corporation (India) In May, the Directorate General of Civil Aviation (DGCA) had extended the deadline for replacing P&W engines that power Airbus A320neo planes from May-end to 31 August as airlines were unable to implement the directive due to the nationwide lockdown The deadline for engine replacement has been extended several times since last year DGCA's instruction to IndiGo and GoAir to replace all the older P&W engines in their fleet with upgraded engines came after a series of snags "Clearly, India is a high priority market for us. We have continued to support our airline customers, working closely with them and finding innovative solutions (during the lockdown)," Sethi said. P&W India delivered 35-36 engines to airlines during the lockdown, she said "We flew in engines from the US using unscheduled charter flights. We also invested in MRO (maintenance, repair and overhaul) network capabilities and capacities around the world," Sethi said Airlines are at present allowed to operate up to 45% of their capacity after the government permitted the resumption of domestic flights from 25 May, albeit in a limited capacity, after about two months of grounding. IndiGo and GoAir are currently using most of their fuel- efficient P&W-powered A320neo jets to save on fuel costs IndiGo's CEO Ronojoy Dutta said in a recent interview that the country's largest domestic airline will phase out its older A320ceo planes with new A320neo planes to enhance cost efficiency Meanwhile, P&W's partnership with Air India's arm, Air India Engineering Services Ltd (AIESL), to maintain and carry out MRO services for the carrier's geared turbofan (GTF) engines has yet to take off because of curbs on international flights "P&W is providing the training and processes, while the manpower belongs to AIESL. However, because of the ban of international flights, our executives aren't able to travel to India," Sethi said "After ramping up the facility, the plan is to not only serve Indian airlines such as IndiGo and GoAir, but also international airlines that operate P&W's GTF engines (at Mumbai's AIESL facility). This will help create MRO sector's capabilities and capacities in India," she said https://www.livemint.com/companies/news/pratt-whitney-to-replace-old-faulty-engines-before-deadline-11593998217854.html Back to Top Hundreds of KQ staff set to be fired as carrier right sizes operations Hundreds of Kenya Airways (KQ) employees are expected to lose their jobs as the firm commences a right sizing exercise as the company deals with the fallout from the COVID-19 pandemic. In a memo to staff seen by Citizen Digital, the carrier says the staff rationalization has been forced upon by the firm's dwindling revenues which have supressed the carrier's operations over the last three months owing largely to the grounding of passenger flights. "A decision has been reached to carry out an organisation-wide rightsizing exercise which will result in a reduction of our network, our assets, and our staff. Effectively, we have commenced a phased staff rationalisation process, which we expect to conclude by September 30 2020," noted KQ CEO Allan Kilavuka. "With the suppressed demand for air transport, a large part of our fleet will remain grounded. We will also operate a reduced network when we resume our services as we anticipate that it will take some time before the industry starts to rebound." Kenya Airways lifeline under the current turmoil has been in cargo lifting with the company previously warning it would lose up to Ksh.50 billion by the close of the year to nearly half the record Ksh.128.3 billion revenue written in 2019. KQ has previously hinted at a reduction to its resource base as the company adopt to the new-normal including staff and network. The company can however look forward to a potential resumption of domestic flights in the near term with President Uhuru Kenyatta recently hinting at the planned resumption of internal aviation. Both transport Cabinet Secretary James Macharia and his tourism counterpart Najib Balala have carried out inspections to the Jomo Kenyatta International Airport (JKIA) and Mombasa's Moi International Airport (MIA) ahead of a potential announcement on local aviation next week. Kenya Airways is not the first carrier to downsize staff with gulf carriers including Qatar Airways and Fly Emirates having trimmed their employee base in recent months. In Latin America, the aviation sector faces a more fragile situation with leading carriers including Avianca and LATAM Airlines (LTM) having declared bankruptcy in May. By reducing on its staff and network, Kenya Airways will be seeking to trim its overhead costs amidst dwindling revenues. Prior to the pandemic, KQ had a staff base estimated at 4000 and operated a fleet of 36 to 54 global destinations. Recent trends have however indicated a reduction in capacity with all indicators pointing to a late resumption of international flights leaving the carrier with the domestic scene as the life-line in the near term. Staff costs in 2019 rose by Ksh.986 million to Ksh.17.05 billion as the carriers total operating costs surged to Ksh.141.3 billion on the back of increased operations and changes in accounting estimates. The drove KQ to an expanded loss of Ksh.13 billion for the year in spite of a steady rise in earned revenues. According to a source who spoke in confidentiality to Citizen Digital, KQ's staff rationalization exercise will set its aims first on soft targets including sub-contracted staff, trainees and staff on probation in its attempt to save on costs emerging from termination benefits. KQ has recent months waiting upon government to inject an estimated Ksh.4 billion in a new loan arrangement to ignite its bounce back having first received Ksh.5 billion in a first-tranche credit line in February to run routine maintenance on its fleet. The airline is currently nearing a re-nationalization plan that will see it return under the wings of government through a soon to be established Kenya Aviation Corporation. On Friday, the Nairobi Securities Exchange (NSE) suspending the trading of the companies shares ahead of the plan and following the submission of the National Aviation Management Bill to Parliament last week. The bill which is presently under consideration by MPs is expected to stamp KQ's renationalization having been privatized in 1996. The National Treasury which holds a majority 48.9 percent stake in the airline is expected to buy out minority shareholders before re-capitalizing the carrier under State management. https://citizentv.co.ke/business/hundreds-of-kq-staff-set-to-be-fired-as-carrier-right-sizes-operations-337689/ Back to Top S. Korean Workers Arrive in South Asian Countries Despite the Region's Rampant Spread of COVID-19 SEOUL, July 6 (Korea Bizwire) - South Korean workers and entrepreneurs are being permitted to bypass strict entry bans on foreigners to travel to South Asian countries where the coronavirus is rapidly spreading. Despite the rampant spread of the virus in the region, South Korean workers and entrepreneurs are accepting the risk in order to do business there. According to diplomatic sources, a special Asiana Airlines flight carrying 33 South Korean workers and entrepreneurs, including those representing Sejin Hitech Co. and Iljin Global Co., landed at Bengaluru in the southern part of India, at 2:10 p.m. on July 2. About two hours later, a Sri Lankan jet carrying six South Korean entrepreneurs arrived at the Colombo International Airport in Sri Lanka. On Wednesday, about 80 South Korean workers and entrepreneurs representing 31 companies including Doosan Heavy Industries & Construction Co. are scheduled to arrive in New Delhi, the capital of India. The 80 individuals are key employees essential for the operation of Korean subsidiaries in India, and are primarily newly-appointed supervisors or engineers for repair and maintenance of production facilities. South Korean companies faced difficulty doing business in South Asia starting from March due to the region's entry ban on foreigners. In particular, India carried out a strict lockdown to prevent the spread of coronavirus, with air routes linking India to South Korea almost completely shut down. Against this backdrop, the Korean Embassy in India and the state-run Korea Trade-Investment Promotion Agency (KOTRA)'s India Business Cooperation Center developed contacts with India's diplomatic and aviation authorities and Asiana Airlines, and paved the way for the first government-led exceptional entry in South Asia on June 19. Other South Korean businesses followed suit, making exceptional entries into the region. http://koreabizwire.com/s-korean-workers-arrive-in-south-asian-countries-despite-the-regions-rampant-spread-of-covid-19/163866 Back to Top How Airbus, equipment manufacturers and subcontractors will emerge from the crisis together The aeronautical sector has been durably affected by the coronavirus crisis. Aircraft manufacturers quickly implemented measures to limit the impact, but the recovery promises to be long. If some unknowns remain, the strategy and the past choices of the European manufacturer Airbus put it in a position to emerge from the crisis more effectively than its competitors. By Lyonel Rouast, partner and president of ISG for the SEMEA area. The passenger airline industry is now trying to stay afloat. With traffic down 94% worldwide, commercial aviation has survived through the crisis solely thanks to its liquidity. Experts estimate that the return to air traffic similar to that before the pandemic could take between three and five years. Under these conditions, the players in the sector would then be forced to quickly build new sources of income while modifying their approach to their current activities. Airbus and Boeing have retreated, reduced their workforce, drastically reduced their investments and almost completely stopped their production. France, home to Airbus and several other major companies in the aeronautical industry, is one of the world centers of technological innovation in the field. The French government has announced a series of measures to support the sector. These measures include loan guarantees, wage subsidies for workers and an investment fund for small businesses. Airbus, leading the way out of the crisis... With such measures, the European manufacturer should be able to emerge from the crisis more effectively than its competitors. Other factors, earlier, make it the favorite for a return to profitability: Single-aisle dominance: The single-aisle, or narrow-body jet aircraft segment represents more than 75% of the global commercial aviation market. The Airbus A320 line of single-aisle aircraft met with great success: it had acquired a solid clientele and was well positioned in the market compared to the Boeing 737MAX before the pandemic struck. The recent Boeing plane crashes have boosted Airbus' momentum to lead this vital segment. The acquisition of the Bombardier CSeries range also helped strengthen its leadership. The use of the virtual:The global market for aviation product and service engineering is about to change. The post-pandemic era will undoubtedly change the life cycle of most aircraft components, from small domestic consumables to huge turbojets. Equipment manufacturers must now keep their production lines in operation with a minimum of production and control activities, mainly oriented towards the spare parts market. Despite everything, innovation could emerge from this subsistence exercise. The need to operate factories with minimal staff can pave the way for augmented and / or virtual reality. Airbus was one of the pioneers in the deployment of mixed reality (MR) in crew training, maintenance and marketing. So we can expect massive and skillful implementation of these technologies. Setting up modern, dematerialized manufacturing environments with a minimum of operational contact points will be one of the keys to recovery. Aligned with sustainable development: Despite the crisis, Airbus has kept its commitments in terms of sustainable development. Part of the French government's $ 17 billion rescue fund will be used to continue developing greener planes. Almost half of the collection fund was spent on helping the national airline Air France-KLM, which itself has a strong inclination for Airbus. The aid will be granted in the form of loans and guarantees, in return for commitments to reduce carbon emissions and to maintain certain internal links in service. Enlightened investor: The aeronautical industry has often been burdened with technologies that were not ultimately commercialized. Currently, innovations or R&D projects that are too precursory can discourage investors due to the too great uncertainty about their success. Airbus has considerably balanced its investments from this point of view, being able both to strengthen existing technologies, but also to successfully introduce revolutionary innovations such as fully electric configurations, in its product lines. But not out of the woods Despite solid assets to emerge from the crisis more effectively than its competitors, all is not rosy for Airbus, which will also have to deal with its own risks. The specter of the WTO: Rumor has it that Boeing has refrained from accepting the subsidies offered by the American government, preferring not to hinder the counterparties associated with it. The rescue fund proposed by the French government could easily turn into a legal risk. The United States' WTO complaint against Airbus for development aid allegations would be strengthened if Airbus accepted aid from public funds and could result in penalties at several levels of activity. A success yet to be confirmed: Investment in the Bombardier CSeries product line (which has been renamed A220) has greatly increased Airbus' presence in North America, but we cannot yet speak of mass adoption. This investment could weigh on Airbus if the crisis continues while its competitor Boeing has retained cash by ultimately refraining from the acquisition of the Brazilian aircraft manufacturer Embraer . Airbus will have to work on a strategy of integration into its global portfolio of single-aisle aircraft with characteristics and technologies acquired via Bombardier. Composing with an unbalanced portfolio: Airbus is mainly active on the civil aviation market, which subjects it to the volatility of the world economy. Boeing, with its defense activities, presents a better balanced portfolio thanks to internationally recognized products, multidimensional programs with a strong research component and a penetration of these markets which goes far beyond its original borders. Balance sheet Although the fund promised by the government presents a good level of compensation for the French aeronautical workforce, it cannot completely eradicate cost optimization by aggressive job cuts. The order book of Airbus, which had 7,621 aircraft at the end of May 2020, has been considerably reduced. The pausing of its production acceleration plan, which provided for the manufacture of more than 800 aircraft by 2023, forced the giant to abruptly interrupt various programs. This should continue at least until the end of 2020. The production plans for the A330 and A350 were also impacted by the drop in demand, resulting in the loss of jobs for 6,000 employees all over Europe. Nevertheless, Airbus has recorded fewer order cancellations than other aircraft manufacturers, and its A320 family continues to have a busy pipeline. The company also continues production of the A220 (resulting from the purchase of the Bombardier CSeries range). What place for equipment manufacturers and outsourcing? Engineering and equipment players have already learned lessons from the pandemic. Engineering service providers such as Altran ( Capgemini ), HCL and L & TTS have long-standing relationships with aeronautical equipment manufacturers and are expected to play an important role in the rapid recovery of the sector. In aviation as in other vertical sectors, equipment manufacturers resort to outsourcing. The companies that provide these outsourced services have evolved. Simple "cost reduction centers", they have become value generators across the entire chain of product excellence, helping to accelerate go to market. The French government's rescue fund could be used appropriately by being invested in a restructuring of the costs of the subcontracting landscape for Airbus and French operators. With the reduction of production plans, equipment manufacturers can take better advantage of captives located in emerging economies. By streamlining the workflow between offshore captives and local operations, it is possible to Modernize maintenance While the production of new aircraft has been relegated to the background, equipment manufacturers may consider taking advantage of the opportunities in the spare parts and maintenance market. Fleets nailed to the ground around the world will have to go through intensive maintenance before returning to the air. Airbus should systematically use approaches such as AR / VR condition maintenance and the latest non-destructive testing technologies to assess the airworthiness of components. Outsourcing service providers generally have mastered this type of advanced technology. Airbus could partner with its outsourcing partners to compete with repair and maintenance players. Several of Airbus' current partners, such as Tech Mahindra, based in India , offer robust aircraft health monitoring systems (AHMS), already successfully tested on models A220 and which could be deployed to remotely monitor entire fleets to reduce costs for operators. To recycle In addition, the refurbishment market for older aircraft has flourished due to its cost competitiveness. This has led to an increase in associated markets, such as component testing, which requires non-destructive technologies to assess older components that can be kept, and for newer composite parts. Airbus should take advantage of the excellence of outsourcing players in structural engineering to effectively exploit the possibilities offered by this flourishing market. Conclusion Airbus must align its strategy with the fluctuating dynamics of the aeronautical industry dictated by the economic, political and social impacts of the Covid-19 pandemic. The company is in a potentially more favorable position than its main competitor, with fewer cancellations, and even records some new orders. Its sovereignty in the single-aisle aircraft segment and its growth strategy supported by outsourcing, practiced for years, send a positive message. The transition from a manufacturing-oriented strategy to a reinforced, maintenance-oriented commercial strategy can help Airbus strengthen its growth plan for the post-pandemic era as well as help it face the challenges of the current situation. https://www.usinenouvelle.com/article/avis-d-expert-comment-airbus-les-equipementiers-et-les-sous-traitants-sortiront-de-la-crise-ensemble.N980586 Back to Top Everything you should know about Aircraft Graveyards Any aircraft, be it commercial or military has a lifespan. The final flight a commercial aircraft is usually given a farewell, most commonly known as the aircraft's final flight allowing the people to see the aircraft in its colors for the last time. But what happens to the aircraft after its final flight? Where do these large numbers of retired airplanes go? Few airlines often display the aircraft in an open-air aviation museum, leaving the remaining airplanes in aircraft graveyards or aircraft boneyards. An aircraft graveyard or boneyard is where most of the airlines keep their aircraft that are no more in service. Most of these aircraft are stored after their parts are taken out for reuse or to be resold. The airplanes are crushed by excavators and then stored forever in the boneyard. Deserts are so far the best place for boneyards. These boneyards are often far from human settlements. Low humidity and the baking sun will slow down the corrosion of the retired aircraft. Most of these boneyards can be found in the U.S. Apart from the open space, dry air and very little rain make it perfect to store these retired airplanes in the U.S. These boneyards are mostly closed for Visitors. Here are few commonly known aircraft boneyards. Davis Monthan - United States This is so far the largest aircraft boneyard in the world located in Arizona. This graveyard stores around 4,500 aircraft and spreads over nearly 2,600 acres of land. The boneyard is taken care of by the 309th Aerospace Maintenance and Regeneration Group. The majority of the airplanes are military airplanes which include the B-52 bombers, C-47 Skytrains. The facility is closed for visitors and has limited access. Phoenix Goodyear Airport - United States The primary purpose of the Goodyear Airport was to preserve U.S. Navy, Marines Corps, and Coast Guard Aircraft. The facility stored more than 5,000 aircraft. The Phoenix Goodyear airport today is home to private companies that offer aircraft maintenance, storage, and commercial pilot training. It often serves as a general aviation reliever airport to relieve congestion at Phoenix Sky Harbor airport. Tarmac aircraft boneyard - Spain This is one of the biggest aircraft boneyards in Europe. The facility opened in 2013 and offers long-term aircraft storage, recycling, painting, and aircraft assembly. It was initially built to store commercial aircraft including Boeing, Bombardier, and Airbus. It is built to handle around 250 airplanes. Located at around 1,000 meters above sea level, the cold and dry climate offers the perfect weather condition to store airplanes. Southern California Logistics Airport - United States Southern California Logistics Airport or SCLA not only offers storage facilities but also offers globally accessible facilities to a huge number of aviation and logistics companies. The hangars at SCLA are often known to accommodate projects ranging from aircraft maintenance to the painting of wide-body airplanes including the Boeing 747, 777s, and 787s. The longest runway is around 15,000ft allowing it to accommodate any airplane flying today. Alice Springs - Australia Alice Springs facility is managed by a company called Asia Pacific Aircraft Storage or APAS. The facility offers storage for short term and long terms storage of airplanes. The region is known for its arid and climate and low humidity. There are currently 20 aircraft stored in the Alice Springs out of which 6 are Singapore Airlines' A380s. https://geekymint.com/aircraft-graveyards/ Back to Top SpaceX Starship prototype bears down on first Raptor engine tests SpaceX's fifth full-scale Starship prototype is fast approaching its first Raptor static fire tests after the company recently delivered one of the newest engines to the launch site. Known as Starship SN5, the ship is the fifth SpaceX has built since full-scale prototype development began in early 2019, as well as the fourth full-scale ship the company has completed since it began producing upgraded hardware in January 2020. SN5 rolled from SpaceX's Boca Chica, Texas rocket factory to nearby test and launch facilities on June 24th, less than a month after Starship SN4 was destroyed by operator error minutes after completing its fourth Raptor static fire in four weeks. While Starship SN5 was already more or less complete, SN4's explosive demise damaged the launch mount (used to secure and fuel prototypes) beyond repair, forcing SpaceX to rapidly build and outfit a replacement. SpaceX finished that replacement mount around June 20th, installed SN5 on it a few days later, and then spent about a week finalizing and inspecting both components. After barely a month of downtime, Starship SN5 kicked off its first gauntlet of tests late on June 30th, carrying on into the early morning of July 1st. As usual, SpaceX began with an ambient-temperature pressure test, filling Starship's tanks with neutral nitrogen gas to check for leaks. This time around, SN5 must have been put together with exceptional care, as the company was able to immediately proceed into the ship's first cryogenic proof test just a few hours later. CEO Elon Musk has yet to offer any confirmation but the implication is that SN5 performed beautifully during its first liquid nitrogen proof test. Notably, based on NASASpaceflight.com's excellent unofficial coverage, SN5's cryo proof was uniquely ambitious. It's unclear what if the test infrastructure, SN5, general confidence in the vehicle, or some combination of the above components were upgraded, but SpaceX appeared to load Starship SN5 with liquid nitrogen incredibly quickly, taking just 20-30 minutes to fully fuel the rocket. Given that all of that liquid nitrogen (some 1000+ metric tons or ~3.2 million gallons) is being loaded through a single "quick disconnect" panel, it's no mean feat and far outweighs SpaceX's already speedy Falcon 9 and Heavy propellant loading. SpaceX is famously the only current launch vehicle operator known to "sub-cool" its rockets' propellant, effectively squeezing a performance boost of 5-10% out of the same rocket hardware by making said propellant colder - and thus denser. That performance increase comes with tradeoffs, though, adding significantly tighter operational constraints, lowering delay tolerances, and necessitating an extremely quick propellant load. Sub-cooled liquid oxygen and methane has always been part of SpaceX's plans for Starship, so fast-load tests were inevitable, but it's a great sign that the company is starting to seriously think about capabilities that will be necessary for efficient orbital launches. Meanwhile, labeled "27", the engine - logically assumed to be Raptor SN27 - SpaceX has just installed on Starship SN5 is also of interest. On top of Musk's recent confirmation that SpaceX is already building Raptor SN30 (probably SN31 or SN32, now), SN27's assignment to Starship SN5 confirms that the company has managed to complete (and test) at least one next-generation engines every other week since the first full-scale engine shipped to McGregor, Texas in February 2019. For a brand new engine as complex as Raptor, that's an impressive production milestone. Per Musk, the end-goal is to produce at least one Raptor per day in the near term - a necessity given that each Starship and Super Heavy booster pair will require at least 37 engines. To feasibly build a fleet of tens - let alone hundreds or thousands - of Starships and boosters, one engine per day is arguably the bare minimum required just for early orbital launch attempts and initial operations. According to published schedules, Starship SN5's first live wet dress rehearsal (WDR) and static fire tests could happen as early July 8th, with backups on the 9th and 10th. Coincidentally, SpaceX's next orbital Falcon 9 launch is also expected on the 8th, albeit approximately seven hours after Starship's test window closes. https://www.teslarati.com/spacex-starship-sn5-raptor-test-schedule/ Curt Lewis