March 24, 2022 - No. 20 In This Issue : Aerospace contractor Moog to expand near Buffalo : EASA Slams the Door on Russian Aerospace : Flexjet Achieves Record 23rd Consecutive FAA Diamond Award for Excellence in Aircraft Maintenance : Will exuberance for air cargo conversions create freighter glut? : Alaska Airlines goes all-in on Boeing, accelerating plans to retire A320-family aircraft : POSITION: Professor/Associate Professor/Assistant Professor in Aviation Engineering : EFW’s A320 Passenger-to-freighter Conversion Earns EASA STC Aerospace contractor Moog to expand near Buffalo (The Center Square) — A defense and aerospace contractor based in western New York is set to expand thanks to a $25 million investment, Gov. Kathy Hochul announced. Moog Inc. plans to add 500 new jobs as part of the project to add new manufacturing equipment. The expansion will complement the company’s work on the F-35 Joint Strike Fighter, V-22 Osprey tiltrotor, flight simulators as well as hardware for satellite and NASA programs. The expansion will occur at Moog’s East Aurora complex, located about 20 miles southeast of Buffalo. Moog Chairman and CEO John Scannell said the company is excited about the opportunities for long-term growth in New York. “Our investments in buildings and advanced manufacturing equipment are helping to create new jobs in the highly skilled manufacturing sector,” he said. “These jobs are across multiple end markets including defense, space and the electrification of construction equipment.” Two years ago, Moog completed a 95,000-square-foot production facility. That $44 million investment led to 100 new jobs. In nearby Wheatfield, the company has invested $20.5 million in a plant to bolster its space propulsion division. That project also created 100 jobs. “Moog is an important part of Erie County’s overall economic portfolio, and this investment is great news for all,” Erie County Executive Mark Polonxarz said in a statement. “As a company based in Erie County, Moog understands that our local workforce and business climate are exceptional and business can grow and flourish here.” The newest investment is being helped by up to $15 million in Excelsior Jobs Program state tax incentives. That’s based on the 500 jobs being added over five years. Gov. Hochul said in a statement that her administration wants to make New York “the most business- and worker-friendly state” in the U.S. She said Moog’s decision to expand again proves the state has a strong manufacturing sector. https://newspress.com/aerospace-contractor-moog-to-expand-near-buffalo/ EASA Slams the Door on Russian Aerospace The continuing conflict in Ukraine has prompted EASA to suspend the type certificates of Russian-made aircraft, strip Part 145 approvals from Russian MROs, and remove Third Country Operator (TCO) certificates from Russian operators. Affected are aircraft such as the Irkut SSJ 100/95, Beriev BE-103 and BE-200ES-E, Tupolev Tu-204, and Russian Helicopters Ka-32. This action is seen as de minimus on Russian airlines, which the European Union previously banned from its airspace. However, the Ka-32 utility helicopter is operated by a variety of European countries, including Portugal, Spain, and Switzerland. EASA said it was taking the action in accordance with EU sanctions that prohibit providing "technical assistance or other services related to the goods and technology suited for use in aviation or the space industry, whether or not originating in the [EU], and to the provision, manufacture, maintenance and use of those goods and technology, directly or indirectly, to any natural or legal person, entity or body in Russia or for use in Russia.” Thus, EASA has suspended all certificates it has issued—including those for products, parts, and appliances, as well as the certificates for organizations and flight simulation training devices—where the holder is located or residing in Russia or otherwise subject to the sanctions. The move also applies to pending or new applications for EASA certificates, in addition to aircraft leasing and airline code-sharing agreements. https://www.ainonline.com/aviation-news/aerospace/2022-03-24/easa-slams-door-russian-aerospace Flexjet Achieves Record 23rd Consecutive FAA Diamond Award for Excellence in Aircraft Maintenance CLEVELAND--(BUSINESS WIRE)--Flexjet, one of the most prestigious global fractional private jet providers and one known for its high safety standards, has received the 2021 Federal Aviation Administration’s Diamond Award of Excellence for Aviation Maintenance Technician Training for a record 23rd consecutive year, more than any other private jet travel provider in history. “Every safety accolade Flexjet earns underscores the number one priority of our company – the safety of our Owners, our flight crews and our employees” Since 1991, the FAA Diamond Award, the highest in its category, has recognized aviation companies and maintenance specialists with highly effective training programs that are meant to improve safety, aviation regulations, and technical knowledge in ways that meet or exceed the FAA’s requirements. To qualify, 100 percent of a company’s maintenance technicians have to participate in specialized FAA training in aviation safety, technical knowledge, aircraft systems, and aviation regulations. “Every safety accolade Flexjet earns underscores the number one priority of our company – the safety of our Owners, our flight crews and our employees,” said Michael J. Silvestro, Flexjet’s Chief Executive Officer. “It is evident by the elevation of our FAA Safety Management System participation to active conformance last year to this month’s 23rd FAA Diamond Award, that the dedication of our employees to safety is habitual, and one that we are truly proud to be recognized for.” Each year since its inception, the FAA qualifications have become increasingly rigorous, making winning these awards annually challenging and requiring continuous focus on this level of expertise. In fact, many of the companies that do not maintain their own aircraft rely on a patchwork of maintenance facilities, which means a comparable patchwork of maintenance technician expertise. Flexjet’s sustained commitment to safety has been all the more impressive given its growth in recent years and has met this growing demand by bringing onboard both additional flight crews and ground crews, including aircraft maintenance technicians. This exciting growth has not deterred Flexjet from meeting every safety standard and requirement, including those associated with the FAA Diamond Award. In addition to its 23-year streak as an FAA Diamond Award winner, Flexjet also holds the Aviation Research Group/US (ARG/US) Platinum Safety Rating, among the most esteemed aviation safety ratings. The biennial Platinum rating results from independent evaluations and a multi-day, onsite examination that compares companies against the industry’s leading practices for safety. Flexjet also maintains IS-BAO compliance at level 2, based upon a global, voluntary code of best practices with a safety management system. IS-BAO conforms with the standards and practices of the International Civil Aviation Organization, and compliance is the same as meeting an international standard of safety excellence. Flexjet also was the first fractional jet ownership program to meet the demanding Industry Audit Standard of the Air Charter Safety Foundation, perhaps the most demanding standard for Part 135, and remains on the registry. Flexjet also takes part in the FAA’s innovative Part 5 Safety Management System. Further cementing a company-wide safety ecosystem, Flexjet achieved active conformance with the FAA’s Safety Management System (SMS). In earning this designation from the FAA, Flexjet has become one of only one percent of the nation’s private jet providers to do so. Said Silvestro, “We couldn’t be prouder of our team for their dedication to safety over the past two years. Through some of the most unique and challenging times in our industry, we have been steadfast in continuously exceeding the safety standards and raising the bar on our already high standards in aircraft maintenance.” About Flexjet Flexjet first entered the fractional jet ownership market in 1995. Flexjet offers fractional jet ownership and leasing. Flexjet’s fractional aircraft program is the first in the world to be recognized as achieving the Air Charter Safety Foundation’s Industry Audit Standard, is the first and only company to be honored with 23 FAA Diamond Awards for Excellence, upholds an ARG/US Platinum Safety Rating, a 4AIR Bronze Sustainable Rating and is IS-BAO compliant at Level 2. Flexjet’s fractional program fields an exclusive array of business aircraft—some of the youngest in the fractional jet industry, with an average age of approximately six years. In 2015, Flexjet introduced Red Label by Flexjet, which features the youngest fleet in the industry, flight crews dedicated to a single aircraft, and the LXi Cabin Collection of interiors. To date, there are more than 40 different interior designs across its fleet, which includes the Embraer Phenom 300, Legacy 450 and Praetor 500, Bombardier Challenger 350, the Gulfstream G450, G650, and G700. Flexjet’s European fleet includes the Embraer Legacy 500, Praetor 600. Flexjet is a member of the Directional Aviation family of companies. For more details on innovative programs and flexible offerings, visit www.flexjet.com or follow us on Twitter @Flexjet and on Instagram @FlexjetLLC. https://www.businesswire.com/news/home/20220324005609/en/Flexjet-Achieves-Record-23rd-Consecutive-FAA-Diamond-Award-for-Excellence-in-Aircraft-Maintenance Will exuberance for air cargo conversions create freighter glut? Record capacity injection from used passenger aircraft to crest by 2026, experts say A surge of passenger-to-freighter aircraft conversions in response to heightened shipping activity since the pandemic is raising questions about whether the boom cycle can be sustained or will lead to oversupply that lowers lease and freight rates. The number of aircraft reconfigured for main-deck cargo storage is estimated to exceed 180 by 2025, a 150% increase compared to the average annual production of 70 units last decade, according to a recent analysis by AeroDynamic Advisory. Thirty years ago, the conversion rate was about 50 aircraft per year. The narrowbody fleet, in particular, has been the focus of unprecedented expansion during the past two years, with cargo retrofits expected to top 110 units this year — more than double the annual pre-pandemic output. Conversions for the Boeing 737-800, the most popular cargo candidate in the standard segment, are expected to top 80 units in 2022, a two-thirds jump in the existing fleet size of 112, Fortune Aviation Services said in a report released this week. It warns there could be too many small narrow freighters for several years. Driving the trend are leasing companies that, faced with losing revenue from idle passenger assets early in the COVID crisis, hurried to repurpose aircraft as freighters and speculative investors entering the narrowbody conversion market for the first time. “The rush by owners and lessors to push so many aircraft, such as the 737-800, through freighter conversion is running headlong into a period of slower economic growth and a short-haul air freight market that already faces stiff competition from less costly road and rail options as well as passenger belly space,” said Steve Fortune, whose firm provides strategic guidance to investors, lessors and overhaul shops about market opportunities, in a preamble to the report. The AeroDynamic Advisory study — which examines the entire market: standard, widebody, turboprop and small regional jets — forecasts converted freighter production will soften by mid-decade as stakeholders try to avoid an oversupply scenario. “If conversion rates keep going the way they are now and don’t slow down, then lessors could definitely find themselves in a sticky spot, especially those that are converting aircraft on a speculative basis,” Mike Stengel, AeroDynamic’s senior associate, told FreightWaves. Last year, cargo volume moved by air increased 7% compared to 2019, despite an 11% shortage of capacity related to international passenger airlines flying less to preserve cash during the pandemic. North America was the strongest region, with 20% growth, according to the International Air Transport Association. A shift in spending by socially distanced consumers from services to online goods, boosted by government stimulus and wage increases, turbocharged an already strong e-commerce market and demand for all-cargo aircraft. Conditions favoring air cargo include the need for COVID-related medical equipment, extremely low retail inventory levels, robust merchandise trade and industrial growth, and severe ocean shipping delays that sent companies looking for alternative transportation. Analysts say air cargo throughput would have been even higher in 2021 were it not for COVID outbreaks, labor shortages and airport congestion that also disrupted air logistics. Conversion architects report they are busier than ever. These companies engineer how to gut and ruggedize aircraft interiors, install cross beams and reinforced flooring to support containers, add a large cargo door and cockpit barrier, secure regulatory approval for changing the aircraft’s design and license their designs to body shops. Depending on the aircraft type, production slots are sold out for several years with nonrefundable deposits. Fortune Aviation Services reports that the imbalance between supply and demand was already underway before the pandemic in the small freighter segment. Between 2015 and 2020, it said, the number of small freighters in service (mostly 737s) grew more than three times faster than shipment volume — mostly because of e-commerce and Amazon.com building out its own cargo airline. Boeing conversions are veering to the 737-800 as the feedstock of older 737-400s dries up, market watchers say. Conversion bonanza Rapid investment in converted freighters is also being fueled by an abundance of quality aircraft and lower asset prices with airlines parking many aircraft during the COVID crisis and mostly reintroducing the most fuel-efficient, economical models for financial and environmental reasons. Leasing companies typically flip planes to cargo mode after about 20 years of flying, but low market values for popular models means younger planes are now available. DHL Express, for example, recently acquired a pair of medium-size Boeing 767s that are less than 10 years old and recently converted a Airbus A330-300 built in 2013, according to the AeroDynamic report. Widebody values are currently suffering the most from COVID disruption of international travel, with aircraft available for 30% to 40% less than before the pandemic, AeroDynamic Advisory said. Valuations for single-aisle aircraft have nearly recovered from pandemic lows. London-based aircraft management and appraisal firm IBA last October put the all-in value of a used 737-800 at $18 million to $19.5 million – with conversion work accounting for $4.3 million to $6 million of the total. A typical lease rate is about $180,000, depending on the operator’s credit and country risk. Robert Convey, senior vice president for sales and marketing at Aeronautical Engineers Inc., said during an IBA webinar at the time that 737-800 values collapsed to $10 million to $12 million as COVID spread in early 2020. AEI’s conversion cost is less than $4 million, he added. The Airbus A321 converted freighter is also receiving rave reviews from industry professionals as the latest aircraft to the conversion party. Only a few have been produced so far, but experts describe its lower-deck container capability, payload capacity and fuel efficiency as strong points. The A321 is competing against the 737-800 and also is viewed as a replacement for the aging Boeing 757 fleet. IBA values the A321 at $21 million to $24 million, including a conversion price just north of $6 million. It can fetch about $225,000 per month on lease. As more fuel-efficient “neos” replace older A321 passenger aircraft, the values will come down, making conversions more feasible. License holders are rapidly opening more conversion centers to meet the demand. Boeing (NYSE: BA), for example, this year plans to open two 737-800 production lines at a partner facility in Costa Rica and two lines for the 767 medium-size widebody freighter in Guangzhou, China. Elbe Flugzeugwerke, a joint venture between Airbus (DXE: AIR) and Singapore’s ST Engineering, recently said it has more than 80 slots reserved for the Airbus A330 and is increasing capacity to about 30 conversions per year for the A330, plus 30 for the new A320/A321 narrowbody freighter by 2024. Airframe shops under its program recently opened conversion hangers in Shanghai, San Antonio and Mobile, Alabama. Last month, Hong Kong Aviation Engineering Co. began transforming A321s for U.S.-based 321 Precision Conversions at its aircraft maintenance facility in Xiamen, China. Aeronautical Engineers Inc., an independent provider of conversion kits based in South Florida, plans to add another conversion center soon but has not made a final decision, Convey said in an email message. The company has a two-year waiting list for production slots, with 65 firm orders for the 737-800. The pipeline includes eight 737-400s and 16 other small jet aircraft. AeroDynamic Advisory estimates that nearly 30 new conversion lines will be opened worldwide by 2025 from 2020. Overcapacity? Experts say the air cargo market will eventually cool off, and with it red-hot demand for freighters, but could still be poised for better long-term performance because of relentless, double-digit annual growth in e-commerce sales. On the demand side, global economic growth is expected to moderate to 4.4% in 2022 from 5.9% last year, according to the International Monetary Fund. The Russia-Ukraine war could erode output even further. Once ports and other freight stakeholders correct supply chain bottlenecks, which experts say may take another year, some air cargo shipments could revert to ocean transport. Meanwhile, as passenger carriers rebuild their networks, there will be more lower-deck space for cargo, especially on key international routes. Extra capacity and softer volume will dampen yields, which have been so strong for 18 months that many passenger airlines continue to operate cargo-only flights with half-empty planes. The recovery in passenger fleets will reduce the aircraft surplus and strengthen values, reducing feedstock candidates for conversion, AeroDynamic Advisory said. Still, even after a market correction, annual conversions of 160 aircraft will be at historic levels, the aerospace consulting firm said. Some industry professionals say there is plenty of room for more long-haul, widebody freighters. Airbus and Boeing (NYSE: BA) nearly halved production of large passenger aircraft since 2019 while many airlines permanently retired all, or part, of their 747 jumbo jet, 777, A330, 340 and A380 fleets, noted Yuriy Tokarev, vice president of asset management at Aerovista, on LinkedIn. Many large aircraft are due for major maintenance checks or degraded during storage and will take longer to bring back to service with repair shops also backed up, he said. Fortune argues that narrowbody lessors will be disappointed because it could take years for a capacity correction to work through the industry. “With a limited number of retirements and a moderation in air cargo growth, speculative 737NG investors who recently decided to jump into the conversion market will struggle to achieve a compensatory return from lower than assumed lease rates and freighter aircraft values,” he wrote. Market capacity is part of the reason Canadian airline WestJet is starting out small with its first freighter division of four converted 737-800 aircraft later this year. “It’s certainly something we’re monitoring. We don’t want to get so many that we contribute to an overcapacity problem,” Charles Duncan, the company’s executive vice president for cargo, said in an interview. “In our forecasting and modeling we assume yields come down, but we do expect demand for air cargo to continue to grow, largely because of e-commerce. We don’t see that slowing down or reverting back to pre-pandemic levels,” he said. “We’re a long way from overcapacity, but if we’re making long-term investments it’s something we’re mindful of.” https://www.freightwaves.com/news/will-exuberance-for-air-cargo-conversions-create-freighter-glut Alaska Airlines goes all-in on Boeing, accelerating plans to retire A320-family aircraft This post contains references to products from one or more of our advertisers. We may receive compensation when you click on links to those products. Terms apply to the offers listed on this page. For an explanation of our Advertising Policy, visit this page. Alaska Airlines said Thursday that it was accelerating its plans to simplify its fleet, becoming an all-Boeing operator at the mainline level by the end of 2023 and sticking entirely with Embraer E-175 jets at regional subsidiary Horizon Air. The update came ahead of an investor conference the airline planned to hold in New York City. “As the fleet grows to 400 aircraft by mid-decade, these [changes] will [result in] operational simplicity, flexibility and scalability, better fuel efficiency and reduced maintenance costs,” the airline wrote in the update. Alaska currently operates 40 Airbus A320-family aircraft, according to Airfleets.net, including 30 Airbus A320ceos and 10 A321neos — about 20% of its fleet. Alaska Airlines acquired the planes via its 2016 acquisition of Virgin America. The new timeline would shave several years off Alaska’s plan to shift the entirety of its mainline operation to Boeing’s 737 narrow-body platform. The airline had previously planned to phase out the A320ceos by the end of 2023, although it had not announced its intentions for the leased A321neo fleet. The airline has outstanding orders for 71 Boeing 737 Max aircraft, according to Boeing, including the -8, -9, and -10 variants. Horizon, which is a wholly-owned subsidiary of Alaska Air Group, currently has 32 De Havilland Canada Dash 8-Q400 propeller aircraft, in addition to its fleet of 30 E-175s, according to Airfleets. As part of the investor event curtain-raiser, Alaska also said that it would convert two of its older 737-800 passenger aircraft into freighters, seeking to capitalize on the surge in air cargo demand that began during the pandemic. The airline currently has three smaller 737-700 freighters. The airline also noted that it planned to expand its network, growing 4% to 8% per year through 2025. https://thepointsguy.com/news/alaska-airlines-boeing-retire-airbus/ POSITION: Professor/Associate Professor/Assistant Professor in Aviation Engineering Recruiter: THE HONG KONG POLYTECHNIC UNIVERSITY Location: Hong Kong The Hong Kong Polytechnic University is a government-funded tertiary institution in Hong Kong. It offers programmes at various levels including Doctorate, Master’s and Bachelor’s degrees. It has a full-time academic staff strength of around 1,200. The total annual consolidated expenditure budget of the University is in excess of HK$7.6 billion. DEPARTMENT OF AERONAUTICAL AND AVIATION ENGINEERING Professor / Associate Professor / Assistant Professor in Aviation Engineering (two posts) (Ref. 22031104) In line with the strategic development of the University and to lead the development of the aeronautical and aviation engineering discipline in teaching and research activities, the Department of Aeronautical and Aviation Engineering was established in the Faculty of Engineering. The Department currently offers undergraduate and postgraduate programmes and actively engages in various research and consultancy work. Please visit the website at https://www.polyu.edu.hk/aae/ for more information about the Department. Applications are now invited from academics who are actively involved in aviation engineering to fill the vacancies for academic staff. Duties The appointees for the post will be required to: • teach at undergraduate and postgraduate levels; • conduct research that leads to publications in top-tier refereed journals and awards of research grants; • undertake research, programme/curriculum development and administration; • supervise student projects and theses; • engage in industrial and scholarly research/consultancy activities; • undertake academic and departmental administrative duties; and • perform any other duties as assigned by the Head of Department or his delegates. Qualifications Applicants should have: • a PhD in the area of airline operations / aircraft performance and fleet management / aviation sustainability / network modelling, reliability engineering and system safety in aviation / data-driven and demand modelling in aviation or relevant disciplines; • strong commitment to excellence in teaching and research; • good publication records; • good networking ability; and • excellent communication skills and the ability to use English as the medium of instruction. Remuneration and Conditions of Service A highly competitive remuneration package will be offered. Initial appointment for Assistant Professor will be on a fixed-term gratuity-bearing contract. Re-engagement thereafter is subject to mutual agreement. An appropriate term will be provided for appointment at Associate Professor / Professor levels. For general information on terms and conditions for appointment of academic staff in the University, please visit the website at https://www.polyu.edu.hk/hro/docdrive/careers/doc/Prof.pdf. Applicants should state their current and expected salary in the application. Application Please send a completed application form by post, nominate three referees from different institutions/organisations by providing their names, addresses and relationship with the applicants, to Human Resources Office, 13/F, Li Ka Shing Tower, The Hong Kong Polytechnic University, Hung Hom, Kowloon, Hong Kong or via email to hrstaff@polyu.edu.hk. Application forms can be downloaded from https://www.polyu.edu.hk/hro/careers/guidelines_and_forms/forms. If a separate curriculum vitae is to be provided, please still complete the application form which will help speed up the recruitment process. Consideration of applications will commence in mid-March 2022 until the positions are filled. The University’s Personal Information Collection Statement for recruitment can be found at https://www.polyu.edu.hk/hro/careers/guidelines_and_forms/pics_for_recruitment. PolyU is an equal opportunity employer committed to diversity and inclusivity. All qualified applicants will receive consideration for employment without regard to gender, ethnicity, nationality, family status or physical or mental disabilities. https://www.timeshighereducation.com/unijobs/listing/286123/professor-associate-professor-assistant-professor-in-aviation-engineering/ EFW’s A320 Passenger-to-freighter Conversion Earns EASA STC Airbus freighter conversion specialist Elbe Flugzeugwerke (EFW) has earned a Supplemental Type Certificate (STC) from the European Union Aviation Safety Agency (EASA) for its A320 Passenger-to-Freighter (P2F) aircraft, EFW said Thursday. The first A320P2F aircraft ever developed, the aircraft joins a family of Airbus P2F programs that include the A330-200P2F, A330-300P2F, and A321P2F. As with the A321P2F variant, the A320P2F resulted from a collaboration between program leader EFW and its parent companies, ST Engineering and Airbus. Owned by ST Aviation’s leasing arm, the A320P2F will become the first of five converted freighter aircraft on lease to Vaayu Group, an aviation services group of companies based in Washington state. ST Engineering’s commercial aviation business announced the lease deal with the Vaayu Group during last month’s Singapore Airshow. Two of the aircraft already have found a home with an operator, Astral Aviation based in Nairobi, Kenya, which will become the first carrier to fly the narrowbody freighter conversion. The initial aircraft took its first flight on December 8 at Singapore's Seletar Airport where ST Engineering performs the conversions. “With this STC, we have added another first in the world to our family of Airbus P2F platforms,” said EFW chief executive Andreas Sperl. “Airlines that employ different Airbus freighters to meet their various needs will get to enjoy improved operating economics due to the commonality across these platforms. Being a newer-generation freighter, it also offers greener fuel burn outcomes for its operators.” EFW stresses that the large global fleet of Airbus A320 passenger aircraft means a healthy feedstock of options for the conversion company itself and for airlines and leasing companies wanting to invest in converted freighters. The A320P2F can accommodate 10 container positions and one pallet position in the main deck, and seven container positions in the lower deck. The freighter’s gross payload of up to 21 tonnes at a maximum range of 1,850 nm and total usable containerized volume of 159m3 (5,603ft3) gives it 85 percent stowage efficiency, according to EFW. Key features of the P2F conversion include a main-deck, port-side, hydraulically-actuated cargo door measuring 142 by 85 inches that can lock electronically. The Class E cargo compartment meets industry requirements fully, with features such as a 9-g rigid cargo barrier, lightweight cargo lining, manually operated loading system, and reinforced floor panels and floor grid to cater for the higher running loads. To meet the rising demand for freighter conversions, ST Engineering and EFW plan to establish new conversion sites in China and the U.S. this year and to increase conversion capacity for all their Airbus P2F programs to more than 60 slots per year by 2024. https://www.ainonline.com/aviation-news/air-transport/2022-03-24/efws-a320-passenger-freighter-conversion-earns-easa-stc Curt Lewis