May 17, 2022 - No. 25 In This Issue : Aerospace MRO company announces plans for Tulsa facility : Delta TechOps, Asiana Airlines enter engine maintenance agreement : Spirit Airlines Strengthens Houston Ties With New Aircraft Maintenance Facility : Hartzell Propeller announces transitions in engineering and flight safety leadership : Saudia selects Mammoth Freighters to convert Boeing 777s for cargo : Evidence of Nosedive Suggests Boeing Not at Fault in China Eastern Crash Aerospace MRO company announces plans for Tulsa facility Air Transport Components has operated a Federal Aviation Administration/European Union Aviation Safety Agency repair station for more than 20 years in Gilbert, Ariz. The company has announced plans to open a 60,000-square-foot facility to employ 50 people in Tulsa. (Courtesy photo) Air Transport Components, a company that provides maintenance, repair and overhaul, or MRO, services for components on commercial and military aircraft, has announced plans to open a 60,000-square-foot facility in Tulsa. The site, to employ 50 people, will provide non-destructive testing, grinding, painting and thermal spray coatings and will offer additional services for aerospace clients in the future, ATC said in a release. Based in Gilbert, Arizona, ATC does MRO work for Boeing, Airbus and other major aircraft companies. It said it has planned an immediate investment of $5 million in the facility in Tulsa, to be located at 6728 E. 11th, along Route 66. The company announced its plans while representatives were attending recent Aviation Week events in Dallas,. ATC Chief Executive Officer Jimmy Newman said Oklahoma has a rising reputation in the aerospace industry. “The MRO and aerospace workforce in Oklahoma is unmatched and was certainly the deciding factor when looking at expansion options,” he said. According to the Oklahoma Department of Commerce, over the last several years the state has earned nearly $1 billion in investment by aerospace and defense companies. “Our state is known for its prowess in MRO and I’m pleased that ATC saw the potential in our exceptional aerospace workforce as well as proximity to customers and supply chain,” Oklahoma Secretary of Commerce and Workforce Development Scott Mueller said. In Arizona, privately owned ATC has operated a Federal Aviation Administration/European Union Aviation Safety Agency repair center for more than 20 years. Approved by all major airlines, its services include repair of airframe, structural, and hydraulic components as well as complete landing gear overhauls. In Tulsa, ATC will provide services such as high velocity oxygen fuel thermal spray coating, which increases corrosion protection and wear resistance in parts. “Due to increased volume, new capabilities, and the unique opportunities that the state of Oklahoma provides, ATC decided to expand its strong industry brand into Tulsa,” Newman said. According to the Oklahoma Department of Commerce, more than 1,100 aerospace entities operate in the state, including manufacturers, MRO providers, and research and development entities. More than 120,000 Oklahomans are employed in the state’s aerospace and defense sectors. “We applaud the Department of Commerce and our Tulsa’s Future partners, who helped secure this project.” Tulsa Regional Chamber Senior Vice President of Economic Development Arthur Jackson said. “Our region’s long-standing history in the aerospace industry and our highly skilled workforce make northeast Oklahoma the ideal place to support ATC’s growing operations.” Oklahoma’s central location and work force have made the state ideal as a hub for MRO activity, the Commerce Department said. American Airlines runs the largest single-site commercial aircraft MRO facility in the world at Tulsa International Airport. The largest Department of Defense air depot is at Tinker Air Force Base, and the Mike Monroney Aeronautical Center in Oklahoma City is the nation’s hub for FAA and U.S. Department of Transportation training, logistics, and aeromedical research, responsible for training more than 76,000 students annually. https://journalrecord.com/2022/05/02/aerospace-mro-company-announces-plans-for-tulsa-facility/ Delta TechOps, Asiana Airlines enter engine maintenance agreement The multi-year agreement covers the repair and overhaul of CF6-80C2 engines by Delta TechOps, the largest maintenance provider in North America with over 150 customers globally. Delta TechOps will be a maintenance, repair and overhaul provider of Asiana Airlines’ CF6-80C2 engines over the next five years, bringing the engines powering the South Korean carrier’s Boeing 747 and 767 aircraft under its extensive global portfolio. Delta TechOps people will expertly carry out scheduled engine overhaul shop visits during the five-year period. Additionally, Delta TechOps will support any unscheduled or AOG engine work. “We are so pleased to have a new agreement with a prominent CF6 MRO, Delta TechOps,” said Hoon Bae, General Manager of Aircraft & Supplies Purchasing, Asiana Airlines. “With this new business, we are confident that Asiana Airlines and Delta TechOps will build up our long-term partnership into the future.” “We are looking forward to getting started on this significant new work with Asiana that is all possible thanks to the well-established track record of safety, excellence and quality by Delta TechOps people,” said Don Mitacek – S.V.P. – Delta Technical Operations and President – Delta TechOps Services Group. “We look forward to expanding our portfolio of more than 150 MRO customers around the world with Asiana in the years ahead.” As the maintenance division of Delta Air Lines, Delta TechOps has over 35 years of experience operating and maintaining CF6-80C2 engines. The work will be conducted by Delta TechOps Aviation Maintenance Technicians primarily at its Atlanta Technical Operations Center. ABOUT DELTA TECHOPS Delta TechOps is the largest airline maintenance, repair and overhaul provider in North America. In addition to supplying maintenance and engineering support for Delta’s large fleet of aircraft, Delta TechOps provides high-quality service to more than 150 other aviation and airline customers around the world and has developed strategic partnerships for next-generation engines with Pratt & Whitney and Rolls-Royce. The organization specializes in high-skill work such as engines, components, hangar and line maintenance. Delta TechOps employs thousands of aviation maintenance professionals and is one of the world’s most-experienced providers with more than 90 years of aviation experience. For more information visit deltatechops.com. ABOUT ASIANA AIRLINES Asiana Airlines was founded in 1988 and is headquartered in Seoul (South Korea). The airline currently operates a fleet of 82 long-and short-haul aircraft that fly to 6 domestic and 63 international destinations in 21 countries. Its cargo route network covers 26 cities in 11 countries. Asiana Airlines became a Star Alliance member in 2003. https://news.delta.com/delta-techops-asiana-airlines-enter-engine-maintenance-agreement Spirit Airlines Strengthens Houston Ties With New Aircraft Maintenance Facility Spirit to add more than 50 jobs at George Bush Intercontinental Airport MIRAMAR, Fla., April 20, 2022 /PRNewswire/ -- Spirit Airlines (NYSE: SAVE) today announced a commitment to deepen its roots in Houston with the addition of an aircraft maintenance facility at George Bush Intercontinental Airport (IAH). The facility, located along John F. Kennedy Boulevard, will serve as a large aircraft maintenance hangar with offices and warehousing for the Spirit Technical Operations team when it begins its first phase of operations. The maintenance complex includes two aircraft bays and ramp space for up to four aircraft, as well as warehouse, shops, and office space, and adds an important geographical location to complement Spirit's maintenance hub in Detroit. Spirit plans to staff the facility with more than 50 Houston-based Team Members to maintain and service Spirit's growing fleet, which is planned to gain 24 new planes this year for a projected fleet-wide total of 197 by the end of 2022, and 33 more planes projected for delivery in 2023. As Spirit's network expands, this additional maintenance capacity will be located a short flight away from several of Spirit's busiest stations. "Maintaining our Spirit Fit Fleet® in top condition is a priority for us every day, and we've picked the perfect additional location for our stellar Technical Operations team as they support our on-going growth," said John Bendoraitis, Executive Vice President and Chief Operating Officer of Spirit Airlines. "We're proud to bring the values and commitment to excellence that earned our team the FAA's Aviation Maintenance Technician Diamond Award of Excellence to Houston. Thank you to the IAH team for the great 10-year partnership, and we look forward to adding jobs and new maintenance capacity as we grow our presence in the community." "Houston's strong economic outlook makes our city an attractive ally for corporate growth and expansion in a global marketplace," said Mayor of Houston Sylvester Turner. "The new maintenance facility at Bush Airport will add quality jobs in our community. We value Spirit Airlines' commitment to Houston, as they continue to expand services in our city and invest in our workforce." "Spirit Airlines will enhance their overall daily operations at Bush Airport by adding this new facility," said Director of Houston Airports Mario Diaz. "This will not only benefit passengers all over their network but will elevate the airport guest experience for those who fly out of Houston to the airline's multiple domestic and international destinations." Soar With Us There is no limit to how fast and how far you can grow within Spirit. We're growing and hiring Pilots, Flight Attendants, Aviation Maintenance Technicians and more. Visit spirit.com/careers for information and stay tuned for hiring events. Recognition Spirit continues to garner awards and recognition. The carrier won "Best Airport Innovation" in the 2021 APEX/IFSA Awards for its groundbreaking self-bag drop system with biometric photo matching, which speeds up the check-in process and reduces face-to-face contact. Additionally, Spirit was named WalletHub's Most Affordable Airline in 2021. Spirit also received the FAA's Aviation Maintenance Technician Diamond Award of Excellence for the fourth consecutive year. About Spirit Airlines: Spirit Airlines (NYSE: SAVE) is committed to delivering the best value in the sky. We are the leader in providing customizable travel options starting with an unbundled fare. This allows our Guests to pay only for the options they choose — like bags, seat assignments and refreshments — something we call Á La Smarte®. We make it possible for our Guests to venture further and discover more than ever before. Our Fit Fleet® is one of the youngest and most fuel-efficient in the U.S. We serve destinations throughout the U.S., Latin America and the Caribbean, and are dedicated to giving back and improving those communities. Come save with us at spirit.com https://www.prnewswire.com/news-releases/spirit-airlines-strengthens-houston-ties-with-new-aircraft-maintenance-facility-301529004.html Hartzell Propeller announces transitions in engineering and flight safety leadership Hartzell Propeller, the leading aircraft propeller manufacturer, has implemented an engineering leadership transition. Vice President of Engineering and Flight Safety Bruce Hanke is retiring in July, with his duties being assumed by 21-year veteran GE Aviation engineering leader Doug Washburn, who recently joined Hartzell Propeller. Doug Washburn will assume the duties of retiring vice President of engineering and flight safety, Bruce Hanke. “Bruce Hanke, with over four decades of engineering and leadership experience, leaves a legacy of many achievements during his 20 years at Hartzell,” said Hartzell Propeller President JJ Frigge. “Bruce’s accomplishments include development of composite-bladed propellers, light weight Bantam and Raptor series propeller systems, compact governors, in-house propeller deice and anti-ice system design and manufacturing, and improvements in the flight safety of Hartzell products,” Frigge added. “We very much appreciate Bruce’s leadership and are looking forward to Doug Washburn’s contributions in the years to come,” Frigge said. “Doug has a wealth of experience in the design, testing, and certification of aviation components.” Frigge added, “He spent his first years at GE in testing, with a focus on instrumentation and airfoil vibration, so his background integrates well with Hartzell’s future objectives.” Using an innovative blend of sophisticated engineering analytics, certification skills and world class manufacturing technologies, Hartzell is working closely with many OEMs within emerging industries to fine-tune propeller applications. “We have dedicated tens of thousands of engineering hours to electric, hybrid and hydrogen powered aircraft since 2019. We continue to make advancements in tooling, manufacturing processes, and lightweighting materials,” said Frigge. May 2022 Washburn’s experience at GE Aviation includes numerous engineering management roles with skills in mechanical design, analysis and testing, organizational leadership, project management, fiber optic systems, and team building. He has a Master of Business Administration from Xavier University, both a Bachelor of Science and Master of Science in Mechanical Engineering from The Ohio State University. He also holds a Six Sigma Black Belt certification. https://verticalmag.com/press-releases/hartzell-propeller-announces-transitions-in-engineering-and-flightsafety-leadership/ Saudia selects Mammoth Freighters to convert Boeing 777s for cargo Saudi Arabian flag carrier Saudia said it will order seven passenger-to-freighter conversions of the Boeing 777-300 from startup aviation engineering firm Mammoth Freighters. The move would double the airline’s freighter fleet, assuming none of the planes are for replacement purposes. The investment is the latest example of industry confidence in air cargo’s growth potential during the next 20 years and its interest in a new long-haul product that can replace large 747 and MD-11 cargo jets. Those planes are gradually being phased out because of age and high operating costs. State-owned Saudi Arabian Airlines (Saudia) has a purchase agreement with Mammoth Freighters to reconfigure 777s for carrying heavy pallets on the main deck, plus an option for five more conversions, the airline said in a news release. Mammoth Freighters suggested in a tweet the conversions are for the -300 variant. But a spokesperson contacted by FreightWaves declined to provide details. Saudia didn’t respond to inquiries by press time. Initial conversions will take place at Mammoth Freighter’s new overhaul facility in Texas, according to Saudia’s announcement. Saudia Aerospace Engineering Industries (SAEI), a maintenance and repair organization based in Jeddah, would use Mammoth’s design to convert additional aircraft under the deal. Saudia’s aircraft maintenance subsidiary said it will build a multi-bay facility dedicated to widebody aircraft modifications, maintenance and passenger-to-freighter conversions. The facility will also be able to manufacture aircraft structural components used in the changeover. Saudia Cargo currently has seven air freighters – four factory-built Boeing 777s and three Boeing 747-400s. E-commerce is central to the company’s growth strategy, officials said. In February 2021, Cainiao, the logistics arm of Chinese online retail platform Alibaba, engaged Saudia as a contract carrier to create a sky bridge between Asia and Europe for express package delivery. Saudia operates 12 flights per week linking Hong Kong to Liege, Belgium via Saudia’s Riyadh hub. The arrangement has significantly increased Saudia Cargo’s e-commerce volume. 777 conversion market Saudia Cargo is Mammoth’s second official customer after Canadian all-cargo carrier Cargojet, which signed a contract for four 777-200 freighter conversions. Mammoth is set up to do conversions for the 777-200 and 777-300 variants. It is backed with funds managed by Fortress Investment Group. The twin-engine 777s can carry about 105 tons of goods and have a wide fuselage that make them well-suited for dense freight and light e-commerce shipments. The 777-300 is about 33 feet longer than its sister, allowing it to hold 10 more main deck pallet positions than a -200 Long Range aircraft. Air cargo operators, express carriers and leasing companies can provide their own assets for conversion or pick up a ready-to-fly converted freighter from Mammoth’s existing inventory. Mammoth has 10 777-200LR aircraft it acquired from Delta Air Lines (NYSE: DAL), which retired its 777 fleet in 2020. Mammoth and Israel Aircraft Industries are the first to develop structural designs and modification kits enabling transformation of 777 passenger aircraft into heavy-duty cargo jets. Israeli Aircraft Industries has orders to convert more than 50 777-300s, including from Cargojet, Kalitta Air and Emirates. Mammoth and IAI expect to make their first deliveries next year after receiving certification from aviation regulators that the redesigned aircraft are airworthy. The 777-converted freighter fills a void in the market as more passenger aircraft become available in the secondary market. Boeing (NYSE: BA) will stop making 777 freighters in 2027 to comply with international emission standards. It is working on a 777X replacement aircraft with new engine technology that it hopes to have ready by mid-decade. Boeing is also producing the final four 747-8 freighters, which are destined for Atlas Air (NASDAQ: AAWW). Boeing estimates air cargo volumes will grow at a 4% compounded annual average rate through 2040. Remodeling a passenger aircraft for heavy cargo involves installation of a wide cargo door and a rigid 9G barrier in front of the cockpit, reinforcing the floor, plugging windows, adding main deck temperature-control systems, and installing a powered or manual cargo-handling system. https://www.freightwaves.com/news/saudia-selects-mammoth-freighters-to-convert-boeing-777s-for-cargo Evidence of Nosedive Suggests Boeing Not at Fault in China Eastern Crash Boeing BA +6.72% shares rose on news that the tragic crash of a 737-800 operated by China Eastern Airlines CEA +1.02% likely wasn’t caused by a plane malfunction. The Wall Street Journal, citing U.S. officials, reported Tuesday that the crash of China Eastern flight 5375, on its way from Kunming to Guangzhou, was most likely due to an intentional nosedive. Who might have put the plane into a nosedive, if that is what happened, still isn’t known. Boeing (ticker: BA) declined to comment on the report. The National Transportation Safety Board, one entity that investigates airline accidents, also declined, saying it doesn’t comment on investigations being led by other organizations. Where the officials cited by the Journal worked wasn’t mentioned. China Eastern Airlines (CEA) didn’t respond to requests for comment. Shares of both companies were higher in Tuesday trading, but so was the overall market. China Eastern stock gained about 1%. The S&P 500SPX +1.93% and Dow Jones Industrial AverageDJIA +1.34% rose about 1.1% and 0.6%, respectively. Boeing shares have gained 4.9% to about $130.13. Shares added roughly $3 shortly after the publication of the Journal article. Shares have hung on to roughly $2 of that gain, even as the S&P 500 has slipped about 20 points from its daily high. Intentional actions taken by crew members to cause an accident are incredibly rare. A 2015 search by the International Civil Aviation Organization and the Bureau of Enquiry and Analysis for Civil Aviation Safety found 12 situations since 1980 that might fit that description. The 2015 search was conducted in conjunction with an investigation into the 2015 crash of a Germanwings fight that was attributed to the actions of the co-pilot. Boeing stock dropped roughly $12 at its lowest point the trading day following the China Eastern crash. Shares closed March 21 at $185.90, down about $7, or 3.6%. Shares recovered most of that loss the next day and eclipsed the pre-crash high about a week later. Boeing stock might have the potential to gain a couple more dollars as any overhang associated with the crash fades away, although a $2 to $4 move looks about right. Coming into Tuesday trading, there hadn’t been many updates since the end of March. The Civil Aviation Administration of China issued a preliminary report on April 26, but it didn’t contain a lot of new information. Shares of both China Eastern and Boeing have traded lower since the crash. China Eastern stock has lost about 12%. Boeing shares have lost about 32%. The crash, however, probably isn’t to blame for much of either drop. The S&P 500 is down about 9% over that span. Boeing’s first-quarter earnings report disappointed investors, hurting shares, while a resurgence of Covid-19 in China has hurt demand for air travel, weighing on China Eastern stock. https://www.barrons.com/articles/china-eastern-737-crash-pilot-nosedive-boeing-stock-51652807600?siteid=yhoof2 Curt Lewis