March 7, 2022 - No. 15

In This Issue 
: Tax credit bundle promoting housing, aerospace, education gets preliminary Kansas Senate nod 
: Boeing suspends Russian titanium as Airbus keeps buying 
: NetJets to buy 150 Lilium eVOTLs 
: How Airlines Are Using In-Flight Connectivity for Passenger and Operational Applications 
: Embraer Launches E-Jet Passenger-to-Freighter Conversions 

 





Tax credit bundle promoting housing, aerospace, education gets preliminary Kansas Senate nod

Sen. Gene Suellentrop said Kansas needs to take steps to become more competitive in the aerospace industry or risk being left behind by neighbor Oklahoma. 

TOPEKA — The Kansas Senate gave the tentative green light Thursday to a massive bundle of tax credit incentives for aerospace and aviation programs, housing investments, teacher supplies and income tax while declining to provide a $250 rebate to all Kansans.

Senate Bill 282 began the debate as a tax credit estimated to cost the state $7.9 million by allowing employers in the aviation industry to write off tuition costs or certain program fees for a qualified employee beginning in 2023. Employees would be a graduate of an accredited engineering program, or an associate of an applied science degree program or a career technical program.

This credit would be capped at 50% of the tuition reimbursement paid and could be claimed each year, for up to the fourth year of employment.

The bill would also create a nonrefundable tax credit for taxpayers equal to 10% of the compensation paid to qualified employees in each of their first five years of employment, not to exceed $15,000 per year.

Sen. Gene Suellentrop, R-Wichita, said the measure was important to bring Kansas level with Oklahoma, which has been pushing aerospace development.

“If we’re not careful, they can take a good part of McConnell Air Force Base and our entire aviation production and haul it down south in a very short order,” Suellentrop said. “Their governor has worked with their legislature to create similar tax credit programs. So, this is not something new. This is used in the industry.”

Additionally, the bill would create a nonrefundable tax credit for taxpayers who become qualified employees during the year. Employees with income tax liability less than $5,000 would be eligible to carry any unused credit forward for up to four years.

Several other legislators piggybacked on the tax credit, proposing ideas of their own. Sen. Robert Olson, R-Olathe, brought a pair of housing tax credits and tacked them on with Senate approval.

The main credit, established in the Kansas Housing Investor Tax Credit Act, would allow any financial institution, project builder and developer who makes cash investment in some housing projects to claim a tax credit.

Under the act, the director of the Kansas Housing Resource Corporation can issue credits up to $35,000 per residential unit in a county with a population no more than 8,000; up to $32,000 per unit in a county with a population greater than 8,000 but not more than 25,000; and up to $30,000 per resident for all other qualified housing projects.

Sen. Jeff Pittman, D-Leavenworth, said he was concerned it did not include areas of high growth in northeast Kansas but still supported the measure.

“We need new housing in the state of Kansas, we need workforce development, and we need affordable housing in our counties out there across the state,” Pittman said.

Sen. Alicia Straub, R-Ellinwood, saw other issues in her area, like senior citizens on a fixed income struggling to afford the homes they have owned for years because of high taxes.

“I would support a reduction in taxes for all Kansas residents, not just picking winners and losers with builders and certain developments,” Straub said.

The only amendment to fail was an offer from Senate Minority Leader Dinah Sykes to include a $250 tax rebate for all single filers and $500 for married Kansas residents. The idea is part of the governor’s proposed budget.

Sen. Caryn Tyson, R-Parker, shut down the amendment quickly.

“It may sound good on the surface, but this is not the way to promote economic development or good sound tax policy,” Tyson said. “We’ve seen that behavior at the federal level. It was not the results that we would have liked to have seen.”

Another amendment adds another option to the Homestead Property Tax Act for Kansans aged 65 years or older or disabled veterans. 

The final amendment, introduced by Sen. Virgil Peck, R-Havana, would increase the amount of the residential exemption of the 20-mill property tax levy from $20,000 of valuation to $65,000. It would also allow that amount to increase in future years.

The amendment drew some worry from Sen. Marci Francisco, D-Lawrence, about the impact this may have on the school finance formula.

“My concern is there would be less property tax available so more of that funding would come from our state general fund than from the property taxes collected,” Francisco said. “I would just hope before I voted on this that I would have a better understanding of those numbers.”

https://kansasreflector.com/2022/03/07/tax-credit-bundle-promoting-housing-aerospace-education-gets-preliminary-kansas-senate-nod/


 




 


 




Boeing suspends Russian titanium as Airbus keeps buying

March 7 (Reuters) - Boeing Co (BA.N) said on Monday it had suspended buying titanium from Russia, while its European rival Airbus (AIR.PA) continues to use supplies from the nation that hosts the world's largest supplier of the commodity, VSMPO-AVISMA (VSMO.MM).

The U.S. planemaker said it had "substantial" inventory of the metal, prized in aerospace for its strength relative to its weight and its compatibility with the latest generation of carbon-fibre, long-distance passenger jets.

"We have suspended purchasing titanium from Russia. Our inventory and diversity of titanium sources provide sufficient supply for airplane production," Boeing said in an emailed statement.

The suspension was reported earlier by the Wall Street Journal.

The head of state-controlled VSMPO-AVISMA hit out at Boeing's decision to suspend the contract, which had been renewed four months ago at the Dubai Airshow where Boeing pledged to keep the Russian company as its largest titanium supplier.

The two companies had also agreed to increase the use of a forgings manufacturing joint-venture - Ural Boeing Manufacturing - in Russia's Titanium Valley in the Urals.

"We sincerely regret that the contracts with our long-term partner are suspended," VSMPO-AVISMA Chief Executive Dmitry Osipov said in an emailed statement on Monday.

"We are now reorienting our sales policy to other markets," he said, adding that the company had prepared for such an outcome for several months.

Western governments imposed sanctions on Russia after it invaded Ukraine in what it calls a “special military operation,” but they have not targeted VSMPO-AVISMA, 25% of which is owned by state defense conglomerate Rostec. It relies on aerospace for three quarters of its sales. read more

The potential for disruption to Russian commodity supplies has thrown a spotlight on titanium, which is also used in the marine, auto and nuclear industries.

AIRBUS SUPPLIES

In France, Airbus SE (AIR.PA) said it continued to source titanium from Russia and other countries. 

https://www.reuters.com/business/aerospace-defense/boeing-suspends-part-its-business-russia-wsj-2022-03-07/


 


 




NetJets to buy 150 Lilium eVOTLs

The eVTOLs will apparently be based in Florida where Lilium intends to build an eVTOL network, Russ Niles reports for AVWeb.

COLUMBUS, Ohio - NetJets said last week that it’s buying 150 Lilium eVTOLs and plans to operate them as Part 135 charter aircraft. According to TransportUp, the world’s largest fractional announced the deal in a statement to investors. The eVTOLs will apparently be based in Florida where Lilium intends to build an eVTOL network serving central and southern parts of the state. NetJets will be a partner in the network, which will link larger cities with existing and new-build “vertiport” facilities and may also join the Lilium sales team to sell eVTOLs to individuals, , Russ Niles reports for AVWeb. Continue reading original article.

The Military & Aerospace Electronics take:

8 March 2022 - In 2021, Germany's Lilium selected Honeywell's avionics and flight control systems for its 7-seater eVTOL in 2021.

The compact fly-by-wire system will act as the flight control system on the all-electric 7-Seater Lilium Jet, responsible for controlling its moveable parts, including the 36 control surfaces and ducted fans that provide its high levels of maneuverability in every stage of flight.

Alongside the flight control system, Honeywell is delivering the next-generation integrated avionics system, which will provide a simplified user interface for the pilot to fly the Lilium Jet. The selection of Honeywell’s next-generation Urban Air Mobility avionics system is the result of ongoing collaboration between Lilium and Honeywell to converge on the specific technical requirements suitable for the Lilium Jet. The avionics system is designed to reduce training time and will support operation by a single pilot, freeing up greater passenger capacity.

https://www.militaryaerospace.com/commercial-aerospace/article/14235120/netjets-to-buy-150-lilium-evotls


 




How Airlines Are Using In-Flight Connectivity for Passenger and Operational Applications
  
ST Engineering iDirect and its partners are hosting a series of webinars focused on advanced mobility technology and its impact and importance to end user customers. As part of that series, which begins with an aero webinar event Thursday, March 10th, ST Engineering iDirect sponsored the following article to gather airline perspectives on the value of in-flight connectivity.
 
This week will mark the two-year anniversary of the World Health Organization officially declaring the outbreak of COVID-19 as a pandemic.

While the last two years have been unlike any other in the history of the global passenger-carrying air transportation industry, growth in adoption of in-flight connectivity (IFC) and its ability to enable innovative new applications for airlines keeps expanding.

Recent reports published by Euroconsult and Valour Consultancy, for example, show that for most major airlines, connectivity has become more of a basic feature of their in-flight experience for passengers and a newer, faster medium for transmitting critical aircraft data to pilots, maintenance technicians, and other airline stakeholders who require it.

A Jan. 31 update on global IFC installation trends posted by Valour Consultancy’s Daniel Welch estimates that through the end of the third quarter 2021, the global IFC installed base was just below 9,300. According to Valour, North America remains the most connected and active region as well, with almost two thirds of the North American commercial active fleet already featuring IFC.

Southwest Airlines was one of the earlier North American carriers to invest in connectivity—under a 2013 agreement with Anuvu (formerly Global Eagle)—with the Texas-based carrier’s entire Boeing 737 fleet equipped with satellite connectivity. In an emailed statement to Avionics International, several representatives for Southwest’s IFEC team said they’re still looking at new applications they can enable with connectivity under a new modernization effort.

“On January 26, 2022, we launched the enablement of Venmo as a form of payment in the Inflight Wi-Fi Portal. Now, Customers have three different digital payment options for Inflight Internet including Apple Pay, PayPal, and Venmo. On February 15, 2022, we launched a new movie trailer feature: As customers browse through the movie options onboard, they can watch the trailer instead of just reading the synopsis,” the Southwest Airlines team said. “Since 2015, Flight Ops has partnered with Marketing and Customer Experience to utilize a small amount of Wi-Fi to connect applications on the Pilots’ Electronic Flight Bag (EFB). These apps help support the operation and advise Pilots of turbulence, radar, and updated weather forecasts.”

The Southwest Airlines fleet is equipped with Anuvu's in-flight connectivity technology. (Photo: Southwest Airlines)

On the flight operational side, Southwest first started adopting a paperless flight deck with EFBs in 2014, and has periodically added new capabilities since then. As an example, Southwest pilots use the WSI Pilotbrief Optima EFB application to view live weather in-flight while connected to Wi-Fi.

“In regards to fleet maintenance, flight data, engine data, and real-time data downloads, we have identified a solution for optimizing our operation via an e-Enablement utilizing Anuvu IFE Modernization effort. Since 2015, Flight Ops has partnered with Marketing and Customer Experience to utilize a small amount of Wi-Fi to connect applications on the pilots’ EFB. These apps help support the operation and advise pilots of turbulence, radar, and updated weather forecasts,” Southwest Airlines said.

Alaska Airlines is another North American carrier that was an early IFC investor, first equipping its aircraft with Wi-Fi in 2011, before upgrading to Intelsat’s faster 2Ku satellite connectivity in 2018. The airline has also traditionally been one of the more technology-forward carriers based in the U.S., and it took advantage of the upgraded connectivity speeds to enable a trial period use of the connected EFB applications Traffic Aware Strategic Aircrew Requests (TASAR) and Traffic Aware Planner (TAP) in recent years.

NASA first developed TASAR as a cockpit automation software capable of simultaneously monitoring real-time weather, winds, air traffic, and restricted airspace to provide re-route recommendations to pilots every 60 seconds. TAP is capable of monitoring changes in headwinds and also couples navigation data pulled from onboard systems with real-time information generated by the connectivity featured on Alaska’s fleet. The data is analyzed, and the system then scans the local air traffic center broadcasts throughout the course of a flight for potential conflicts before providing suggestions to pilots for a more efficient route.

During a recent Connected Aviation Intelligence webinar series co-hosted by Avionics International and Via Satellite, Bret Peyton, director of flight operations engineering and fleet technology for Alaska Airlines, said the carrier is still evaluating new operational uses of connectivity while monitoring the amount of bandwidth necessary to provide new connected operational applications for its fight crews and passengers.

“We’re working with some partners right now to take advantage of some flight deck route optimization concepts and hopefully the software, the computational algorithms soak up less bandwidth and hopefully you have that happening as you have overall costs going down from our service providers. Certainly there is going to be an increased demand for bandwidth on the guest side and definitely on the operational side,” Peyton said.

During that same webinar series, several other airlines also discussed how they observed increases in demand from passengers for connectivity that allows them to use the type of bandwidth-intensive streaming, video-conferencing, and other applications that became increasingly important for connecting businesses, colleagues, and organizations who faced COVID-19 travel and policy restrictions throughout the pandemic.

“NSR gathers that demand for in-flight Wi-Fi is at an all-time high as passengers return to flying. This trend pushes airlines to a tight position of making the critical decision of defining their inflight connectivity strategy. One of the tough choices airlines have been battling is whether to offer free onboard Wi-Fi and how to bankroll the associated expenses,” Joseph Ibeh, a market analyst with Northern Sky Research (NSR), wrote in a September blog post outlining some of the insights gathered from NSR’s Aeronautical Satcom Market Report 9th edition.

Tiina Suvanto, head of customer experience at Finnair, was also a participant in the CAI webinar series and explained how the airline manipulated the connectivity already featured on its in-service aircraft—Panasonic Avionics on their widebody fleet and Viasat on their narrow bodies. According to Suvanto, one of the new IFC applications they recently enabled was developed based on the timing of some of the routes they operate between Helsinki and Asia Pacific destinations.

“Like so many other airlines, we have a news solution developed by ourselves so that digital newspapers are delivered to the portal, they’re readable from the portal, and they’re delivered through the satellite connection to the aircraft server. We designed it so that we also get fresh newspapers. Our aircraft network operates in a way that most of the flights from Asia to Helsinki leave in the middle of the night in Finnish time. So that newspaper, Helsinki Sanomat, is pushed to our aircraft portal at the same time that it is pushed to their digital printing house, and you’re getting the news fresh, in real-time,” Suvanto said.

Finnair unveiled its new, spacious long-haul cabin featuring a brand-new Business Class and exciting new Premium Economy cabin as part of a major investment to enhance the customer experience. The airline's IFEC manager appeared on a 2021 webinar series hosted by Avionics International and Via Satellite. (Photo: Finnair)

Since they offer connectivity from different networks based on aircraft type, Finnair developed its own internal portal, the Nordic Sky Portal, so that the login and interface is the same for every passenger on every flight.

Similar to Finnair, Air France KLM also offers connectivity from different IFC service providers and has internally developed a passenger access portal that makes the user interface the same for passengers regardless of the network they’re using. Sam Krouwer, product owner of in-flight connectivity at Air France KLM said that has been an essential element of their passenger experience strategy in relation to access to Wi-Fi for passengers.

Krouwer expressed interest in the future possibility of Low Earth Orbit (LEO) satellites being capable of filling in coverage gaps for some of the routes included in their current operation.

“What was new for me to learn was that LEO [satellites] could solve the coverage issues we have around polar areas, which is a challenge on some of the routes we fly," Krouwer said during his appearance on the webcast series. "At KLM, we fly North Atlantic routes a lot, and it is a pain for our customers when the connectivity drops after you reach [the] Arctic region, so let’s hope LEO can fix that problem for us.”

https://www.aviationtoday.com/2022/03/07/how-airlines-are-using-in-flight-connectivity-for-passenger-and-operational-applications/


 




Embraer Launches E-Jet Passenger-to-Freighter Conversions

The Embraer E195F would carry up to 27,000 pounds of freight to a range of 2,100 nm. 

The passenger-to-freighter conversion market gained a new player Monday as Embraer launched the E190F and E195F, adding lifespan to aging E-Jets and finding a new capacity niche in the resurgent P2F market. The Brazilian airframer says it designed the E-Jet freighters to meet the evolving nature of e-commerce and modern trade, which calls for ever-faster delivery times and a need for decentralized operations.

The E190F would carry a payload of up to 23,600 pounds and the E195F 27,100 pounds. The company lists volume capacities of 3,632 cubic feet and 4,171 cubic feet, respectively, and ranges of 2,300 nm for the E190F and 2,100 nm for the E195F. By comparison, the larger A320P2F conversion under development by Elbe Flugzeugwerke, the joint venture created by Airbus and ST Engineering, will carry 46,296 pounds over 1,800 nm, or 37,478 pounds up to 2,560 nm.

“Perfectly positioned to fill the gap in the freighter market between turboprops and larger narrowbody jets, our P2F E-Jet conversion hits the market as the demand for airfreight continues to take off, and as e-commerce and trade, in general, undergoes a global structural transformation,” said Embraer Commercial Aviation CEO Arjan Meijer.

Embraer said it would make the conversion available for all used E190 and E195 aircraft. Targeting an entry-into-service of early 2024, the company said it sees a demand for the size category of the E190/195F of some 700 aircraft over 20 years.

The initiative comes as Embraer addresses what it calls three major opportunities, including the fact that much of the current standard body freighter fleet has entered its retirement window. The company also cited recent structural changes that strengthened the overall freighter market, “and more so for same-day deliveries and decentralized operations.”

Finally, it noted that E-Jets that entered service around 10- to 15 years ago are now emerging from long-term leases and beginning their replacement cycle, one that will continue over the coming decade. The full cargo conversion will extend the life of the most mature E-Jets by another 10 to 15 years, and encourage their replacement in the passenger market with what Embraer calls more efficient, more sustainable, and quieter aircraft.

The company claims the E-Jet Freighters will offer 50 percent more volume capacity and three times the range of large cargo turboprops and “up to 30 percent” lower operating costs than narrowbodies.

Embraer said it will perform the freighter conversions at its facilities in Brazil. The conversion includes a main deck front cargo door; cargo handling system; floor reinforcement; the Rigid Cargo Barrier (RCB), which is a 9G barrier with access door; cargo smoke detection system, including class “E” extinguishers in the upper cargo compartment; air management system changes (cooling, pressurization, etc); interior removal and provisions for hazardous material transportation.

“The E-Jet air freighters will provide fast, reliable, and cost-effective service to freight forwarders, extend the revenue earning life of E-Jets, support E-Jets’ asset values and create a strong business case encouraging the replacement of earlier aircraft with modern, more efficient, passenger aircraft,” said Embraer Services and Support CEO Johann Bordais. “With more than 1,600 E-Jets delivered globally, customers of this new freighter segment will benefit from well established, mature, global services network, in addition to a comprehensive portfolio of products ready to support their operation from day one.”

https://www.ainonline.com/aviation-news/air-transport/2022-03-07/embraer-launches-e-jet-passenger-freighter-conversions


 


Curt Lewis