October 4, 2022 - No. 38 In This Issue : Gulfstream Aerospace Opens Fort Worth Service Center : HOUSE APPROVES FEDERAL AEROSPACE, STEM EDUCATION CENTER : Israel Aerospace Industries opens wide-body jet conversion site in Belgrade : House Passes Bill Targeting Foreign Repair Stations : BAE Opens New Manufacturing Plant in Austin : Joby Aviation can’t hit production targets on time, according to short sellers’ report : New De Havilland manufacturing plant to be built near Calgary : Coating research aims to improve aircraft de-icing : Firefly’s successful rocket launch over the weekend helps fill a big gap in the market, CEO says Gulfstream Aerospace Opens Fort Worth Service Center • Gulfstream Aerospace's new Forth Worth Alliance service center in Texas includes an 80,000-sq-ft hangar. Gulfstream Aerospace took the wraps off its Fort Worth Alliance Airport service center in Texas today with a ribbon cutting of the $35 million, 160,000-sq-ft (14,864-sq-m) MRO. Announced in 2020, the center includes 80,000 sq ft of hangar space, 44,000 sq ft of back shops, and 32,000 sq ft of offices. As part of the facility’s development, the Savannah, Georgia-based airframer shifted about 150 customer-support jobs from its location at Dallas Love Field, which has added completions of the large-cabin G600 twinjet, in addition to outfitting the super-midsize G280. Additionally, fifty jobs were created at the facility at Fort Worth Alliance. Gulfstream is also building a 225,000-sq-ft service center in Mesa, Arizona, which is expected to employ more than 200 people and gain LEED Silver certification as part of the company’s sustainability push. The OEM is already operating out of a temporary facility in Mesa until that center opens next year. https://www.ainonline.com/aviation-news/business-aviation/2022-10-04/gulfstream-aerospace-opens-fort-worth-service-center HOUSE APPROVES FEDERAL AEROSPACE, STEM EDUCATION CENTER NATIONAL CENTER FOR THE ADVANCEMENT OF AVIATION ADVANCES The U.S. House of Representatives on September 28 overwhelmingly passed legislation to establish the National Center for the Advancement of Aviation. This bill would help the aviation and aerospace industries collaborate on programs that will ensure the aviation workforce is well trained and prepared. Legislation headed to the U.S. Senate for final approval would establish a federal center to support aviation STEM education and help address shortages of pilots, technicians, and other aerospace professionals. Photo by Chris Rose. Legislation headed to the U.S. Senate for final approval would establish a federal center to support aviation STEM education and help address shortages of pilots, technicians, and other aerospace professionals. Photo by Chris Rose. The bill would also help introduce our nation's youth to aviation science, technology, engineering, and math curriculum and assist our military veterans in transitioning to opportunities in the aviation sector. The National Center for the Advancement of Aviation Act (H.R.3482) was introduced by Reps. André Carson (D-Ind.), the late Don Young (R-Alaska), and House Aviation Subcommittee Chairman Rick Larsen (D-Wash.). The NCAA would serve as an independent body to enable cooperation among all industry sectors to coordinate, promote, and support the future of aviation. The NCAA is seen as a necessary initiative to shape a generation of new pilots, aerospace engineers, unmanned aircraft system operators, aviation maintenance technicians, and other professionals. A recent Boeing commercial study found that more than 600,000 new pilots and 610,000 maintenance technicians will be needed to fly and maintain the global commercial fleet over the next 20 years. The NCAA will have an enormous impact on young people as it will foster educational efforts through the development and deployment of STEM-based aviation curriculum in middle and high schools. AOPA’s High School Aviation STEM curriculum is now being taught in over 400 high schools in almost every U.S. state. This curriculum provides teachers with the tools and training needed to educate and inspire the next generation of aviation professionals. As an enabler of cooperation, the center would also serve as a repository for research conducted by institutions of higher education, research institutions, and other stakeholders regarding aviation and aerospace workforce matters. “We applaud House passage of this much-needed bill and appreciate the vision of its sponsors. This is not a government entity, and it is not funded by general taxpayer funds, but it does recognize the need for all sectors of the aviation industry, including military aviation, to collaborate on areas that will ensure that our aviation industry remains vibrant and competitive,” said AOPA President Mark Baker. “I am especially gratified that developing STEM aviation curriculum for our nation’s youth is recognized as a key component of the center’s work.” Nearly 200 organizations across all aviation and aerospace sectors expressed support for the creation of the NCAA in a letter to the House committee in April 2022. A Senate companion bill was introduced in May 2021 by Sens. Jim Inhofe (R-Okla.) and Tammy Duckworth (D-Ill.). H.R.3482 now awaits further action by the Senate before it is sent to the president to be signed into law. https://www.aopa.org/news-and-media/all-news/2022/september/29/house-approves-federal-aerospace-stem-education-center Israel Aerospace Industries opens wide-body jet conversion site in Belgrade BELGRADE (Serbia), October 4 (SeeNews) - State-owned Israel Aerospace Industries (IAI) has opened Eastern Europe’s first wide-body jet conversion site at Belgrade Nikola Tesla Airport, local media reported. The Israeli company is preparing to begin work on Boeing 777 conversions, for which it has partnered with AerCap, the world’s largest owner of commercial aircraft, requiring it to increase overall global capacity, resulting in the opening of its Belgrade facility, EX-YU Aviation reported last week. According to EX-YU Aviation, IAI is said to have already begun work in Belgrade and is preparing to roll out its first passenger to cargo converted aircraft with a Boeing 767-300ER having arrived in the Serbian capital in mid-September, with work on its conversion set to begin soon. Air Serbia has recently said it is exploring the possibility of converting three of its ATR72-200 aircraft into cargo planes. Cargo aircraft are being rushed into service amid a worldwide shortage in shipping capacity and the segment has proved to be extremely lucrative for airlines amid the outbreak of the coronavirus pandemic. IAI says that, currently, it transforms 25 planes a year, with the process taking about three months. The conversion price per plane is around $35 million (35.2 million euro), much cheaper than the price of a new cargo plane, according to EX-YU Aviation. IAI is the world’s leader in passenger to cargo conversions of the Boeing 767, 737 and 747 aircraft, with lines in Israel and Mexico, while its Abu Dhabi site is expected to open in partnership with Etihad Engineering. ($ = 1.00724 euro) https://seenews.com/news/israel-aerospace-industries-opens-wide-body-jet-conversion-site-in-belgrade-800074 House Passes Bill Targeting Foreign Repair Stations Maintenance bill will hold foreign MROs to equal standards; the workforce bill will launch a new national center to improve recruitment and retention. The Global Aircraft Maintenance Safety Improvement Act seeks to strengthen the FAA’s ability to enforce safety rules on foreign repair stations through annual inspections, mandates, and increased oversight. House lawmakers have passed a series of bills targeting the safety records of foreign repair stations in legislation geared toward improving aviation safety standards and developing the aviation workforce. Some U.S. airlines outsource heavy maintenance work to aeronautical repair stations outside the U.S.—including facilities in El Salvador, Mexico, and China. The problem occurs when standards followed by foreign repair stations don’t match those in the U.S. For instance, U.S. repair station workers must comply with screenings for substance abuse, and background checks, while foreign repair stations sometimes don’t hold to similar standards. The loopholes potentially threaten the safety of passengers, according to the International Association of Machinists and Aerospace Workers (IAM). “The current lack of uniform regulatory standards and oversight sets an unlevel field with carriers increasingly enticed by the financial incentives to push this work overseas,” IAM International President Robert Martinez, Jr. said in a statement. Equal Standards House lawmakers approved the Global Aircraft Maintenance Safety Improvement Act Thursday, which aims to align safety standards and requirements for foreign repair stations with those in the U.S. The bill aims to create a uniform standard of safety, no matter where the aircraft is repaired and maintained, House Transportation & Infrastructure Chairman Peter DeFazio (D-Ore.) said when introducing the bill in March. The bipartisan bill calls for annual unannounced inspections, mandating the reporting of mechanical issues and problems attributable to foreign repairs, as well as compelling the agency to conduct required background checks of foreign repair station employees. Creating uniformity makes the skies safer, DeFazio said. The bill also sets minimum requirements for mechanics and others working on U.S. registered aircraft at foreign repair stations. If passed, the bill would require the stations to implement specific regulations within a year, or it would temporarily suspend FAA certification of new foreign aircraft repair stations until they met the measures. Investment In an Essential Industry Last week, House lawmakers also advanced the National Center for the Advancement of Aviation Act of 2022, a piece of legislation targeting ongoing workforce challenges facing the industry through the creation of a national aviation recruitment and retention center. The new entity would be federally chartered, independent and designed to support and promote the civil aviation workforce, specifically through scholarships, research, education, and outreach. A national center would be an “investment in the future of an essential industry for our country,” said Rep. André Carson (D-Ind.), who introduced the bill in May 2021. The aviation and aerospace industry currently supports over 11 million jobs and contributes more than $1.6 trillion annually to the national economy. Carson said the new National Center would be essential in making the industry safer and more vibrant. Both bills have now advanced to the Senate, where they must be affirmed by vote before becoming law. FAA Youth Task Force Coincidentally, the FAA’s Youth Access to American Jobs in Aviation (YIATF) Task Force—formed in 2020 to outline a strategic path forward for recruiting young professionals into the aviation industry—released its final recommendation last Thursday. The task force outlined 21 recommendations for how the FAA could work with the industry and schools to appeal to more students. Twenty-one task force members represented major companies, trade groups, and institutions in the U.S., like Boeing (NYSE: BA), Aviation Technicians Education Council (ATEC), the National Business Aviation Association (NBAA), and institutions like AeroStar Avion Institute. In its final meeting on September 22, Task Force members provided their final recommendations on how the FAA can better encourage young people to pursue future aviation jobs. “We want to convince young people aviation is for them and remove the financial barriers to entry for them to succeed,” said Jo Damato, senior vice president of education, training, and workforce development for the NBAA. “The task force wants the FAA to look at creating stackable aviation maintenance credentials within high school programs to lead students to entry-level aviation positions faster while gaining needed experience.” https://www.flyingmag.com/house-passes-bill-targeting-foreign-repair-stations/ BAE Opens New Manufacturing Plant in Austin BAE Systems is planning to double its workforce in Austin and its new $150 million center there is providing room to grow. BAE Systems is expanding its innovation and manufacturing capabilities with the opening of a $150 million facility in Austin, Texas. Located at Parmer Austin Business Park, the 390,000-sq-ft facility will provide space for manufacturing, engineering design, lab work, and offices. The facility further includes expansion space for future growth. “We are growing our business, our talent, and our brand in Central Texas,” said Dave Harrold, v-p and general manager of Countermeasure & Electromagnetic Attack Solutions at BAE Systems Electronic Systems. “Our goal is to double our workforce in Austin over the next several years.” Nearly 700 BAE workers are based in Austin. The location will focus on a range of programs involving autonomy, cyber, and sensor development. In addition, the facility will accommodate programs surrounding the manufacturing of radio frequency and electro-optical/infrared countermeasure systems, and aircraft electrification technology. https://www.ainonline.com/aviation-news/aerospace/2022-10-04/bae-opens-new-manufacturing-plant-austin Joby Aviation can’t hit production targets on time, according to short sellers’ report Joby Aviation, which is developing quiet, clean electric aircraft, has tantalized shareholders with plans to launch an Uber-like air taxi service into the market by 2024. New research from Bleecker Street Capital, a short-biased hedge fund led by Chris Drose, claims that Joby presented an exceedingly optimistic view of its manufacturing capacity to investors, while making very modest production plans for its current factory, a pilot plant, in Marina, Calif. Joby told CNBC it is now looking for the best site for a higher volume factory but declined to provide further details. It also provided a contrary report from analyst firm Raymond James that argued Joby’s manufacturing plans are appropriate and the market understands the risks of the air taxi business already. Founded in 2009 by CEO JoeBen Bevirt, Joby is part of a movement to electrify aviation and reduce affiliated noise and air pollution while meeting growing demand for air travel. In the U.S., civil aviation contributes about 3% of total carbon emissions each year, according to research from the Federal Aviation Administration. Besides exacerbating climate change with carbon emissions, the FAA writes, “aircraft operations have impacts on human health and welfare via noise pollution and emissions that degrade air quality.” Joby has developed an alternative to traditional planes or helicopters for short hops, known as an electric vertical take-off and landing aircraft, or eVTOL, in industry parlance. Joby’s aircraft have a stated range of 150 miles, can travel up to 200 miles per hour, and have room to transport five people, including one pilot and four passengers. Joby boasts that it has conducted more than 1,000 successful test flights already, and was the “first eVTOL aircraft developer to receive a signed, stage 4 G-1 certification basis,” which paves the way for the company’s electric aircraft to become certified as airworthy and safe for commercial use. The company’s story and progress so far has netted it partnerships and deals with Uber, Toyota, the Department of Defense and others. Joby’s projections Before the company went public via a SPAC deal with Reinvent Technology Partners in late 2021, Joby said in a pair of investor presentations that it was aiming to have 141 of its aircraft in operation, generating revenue, by the end of 2024. Before it began trading on the NYSE, Joby forecast that it would have more than 900 eVTOLs in operation by the end of 2026, each one capable of delivering about 40 rides per day. However, public records from Monterey County, Calif., first obtained by Bleecker Street Capital, reveal that as of June 2022, Joby was telling local officials it only plans to produce 10 eVTOLs per year in the next two years at its pilot plant in Marina. The records also say that Joby plans to make just 30 air taxis per year, starting around 2027, at that facility, which is located at the Marina Municipal Airport Complex. In 2020, local news reports citing environmental review documents said Joby planned to build a 580,000 square foot manufacturing facility at that same site. A spokesperson would not comment specifically on those plans. When presented with records and the reports, Joby said its “Pilot Production Plant” in Marina was always going to produce a low volume of eVTOLs and it’s still trying to find the right location for a higher-volume “Phase 1″ plant. A Joby spokesperson wrote in an e-mail to CNBC on Thursday evening: “Our approach to manufacturing has always included multiple phases, starting with initial, low volume production at our Pilot Production Plant located in Marina, CA, followed by a Phase 1 manufacturing facility that would support higher production volume of aircraft. We continue to actively pursue site selection for Phase 1 manufacturing across multiple locations. We remain pleased with the progress we are making on the Pilot Production Plant and aircraft certification, and were pleased to achieve our Part 135 Certificate ahead of schedule.” The spokesperson also noted, “We’re actively evaluating proposals from a number of states, including California, regarding the potential location of our Phase 1 factory.” Bleecker Street Capital founder Chris Drose, who presented his short thesis on Joby at a Vision Research event in New York City on Thursday after markets closed, told CNBC that Joby “cannot possibly do what it says it’s going to do.” The shortseller thinks Joby should have already revised its guidance. His short report also notes that Joby aims to deliver 40 flights per unit per day in 2026, with around 963 aircraft in operation by the end of that year. “That translates into roughly 14 million flights per year. Last year, the FAA supervised 16.4 million flights in the U.S.,” Drose wrote. “Joby’s guidance is so aggressive that it implies a near doubling in the amount of aircraft taking off in the United States on a daily basis.” Raymond James & Associates wrote a note countering the Bleecker Street Capital short report Thursday night, arguing that the market already takes the risks of Joby’s business into consideration. They also say that investors should not compare Joby’s plans to those of traditional aviation businesses. Bullish on Joby, Raymond James analysts said the company has an appropriate plan for manufacturing, having made some progress towards its goals already. They wrote, “Joby operates out of San Carlos, CA; Marina, CA; Washington D.C.; Europe; and Asia. We recently toured the parts production line at Joby’s San Carlos, CA facility. We came away more impressed (or less skeptical) regarding the in-house manufacturing of many parts.” In October, Joby plans to hold a Field Day where analysts will be able to visit its Marina pilot plant. Raymond James analysts also specified, “While Joby’s 2021 investor deck bases unit economics on ~40 flights per day, our estimates are based on a slower ramp up to 25 flights per day starting in 2029.” Bleecker Street Capital’s bet against Joby represents the largest position held by the upstart hedge fund today. Drose declined to say the exact size of his short position in the air taxi business. His firm, which launched in the fourth quarter of 2021, has about $35 million in assets under management. Drose said he really hates traffic congestion, would love an electric air taxi option and to see climate-tech companies succeed. But he thinks that Joby is at risk of slowly falling apart as shareholders lose faith in the project due to inevitable production delays and pushed timelines. The company’s market cap hovered just over $2.5 billion as of market close Thursday, though the SPAC deal had valued Joby over $6 billion, and the company notched a post-transaction value around $4.5 billion in August last year. Shares were up slightly in Friday mid-day trading, but are down about 36% year-to-date. https://www.cnbc.com/2022/09/30/joby-aviation-cant-hit-production-targets-on-time-short-report.html New De Havilland manufacturing plant to be built near Calgary The company plans to eventually employ 1,500 people at the plant De Havilland Aircraft of Canada Ltd has announced their plans to construct the De Havilland Field, a new manufacturing plant for aircraft, which will be in Wheatland County in Alberta, Canada. At this site, the final assembly for the DHC-515 Firefighter aircraft, DHC Twin Otter and the Dash 8-400 aircraft will take place. Alberta Premier Jason Kenney called it a ‘game-changing investment’ for manufacturing in the province and a major sign of the economic growth, job opportunities and diversification happening there. In Toronto Wednesday, he said: “This is just another step forward in the huge growth in our aviation sector with more big news to follow in that sector in just the weeks ahead.” Tanya Fir, the province’s Minister for Jobs, Economy and Innovation, called the announcement a ‘huge win’ and in a statement, she said: “We wanted to find ways to leverage Alberta’s strengths, like our available land close to logistical hubs and our young, skilled and motivated workforce, to find a path back to our position as Canada’s economic engine.” To build this plant, the company has acquired approximately 600 hectares of land and are planning to begin construction by as early as next year. They expect their first buildings to be operational by 2025, but the full buildout could take years. Company co-owner Sherry Brydson said: “De Havilland Field, like Rome – I have to warn you – won’t be built in a day. We anticipate the full buildout will take somewhere between 10 and 15 years. We’re planning to take it slowly and seriously and we’re going to make sure it works.” Company co-owner Rob McDonald explained that De Havilland doesn’t need government handouts and aims to be self-sufficient: “We need people to buy our planes. We don’t really need or want support from the government.” This development will help De Havilland’s plan to deliver the first of its DHC-515 aircraft by the middle of the decade. https://www.airmedandrescue.com/latest/news/new-de-havilland-manufacturing-plant-be-built-near-calgary Coating research aims to improve aircraft de-icing Engineers at UBC Okanagan have been collaborating with researchers from the University of Toronto to make a significant breakthrough in de-icing technology. Their latest research, published in this month's edition of Nature Communications, examines a smart, hybrid—meaning passive and also active—de-icing system that works by combining an interfacial coating with an ice-detecting microwave sensor. This coating integrates the sensors into the material while enabling heat to dislodge ice without the need for a person or machine to physically melt it, explains UBCO's Dr. Mohammad Zarifi. "Many of us have had the misfortune of sitting on a plane waiting for it to be de-iced while fretting about missing a connecting flight," says Dr. Zarifi an Associate Professor at UBCO's School of Engineering and report co-author. "Our new technology takes a hybrid approach by adding sensors within an ice repellent coating that can easily be added to aviation or wind turbine blades." Dr. Zarifi explains that undesired ice accumulation is problematic with many renewable energy technologies such as wind turbines and hydroelectric dams, aviation and power transmission. Ice mitigation strategies can be divided into either active or passive methods. Active de-icing involves an external energy input used to remove the ice, typically through thermal, chemical or mechanical methods. In contrast, passive de-icing either reduces the accretion rate of ice, lowers the adhesion strength between ice and the surface or both. "Neither route towards an ice-free surface is seen as a cure-all today, as active de-icing methods utilize substantial energy but passive de-icing coatings cannot keep a surface ice-free indefinitely," he adds. "A hybrid system that combines passive and active de-icing technologies may be an attractive solution to the ice-accretion problems." This is why the sensor—which lives beneath the coating that will be applied to a turbine or aircraft—could be a game-changer. The sensor acts as an ice detector and prompts the embedded heaters to melt the ice automatically. This creates a substantial improvement in energy efficiency and is what sets this latest innovation apart from existing approaches, says Zahra Azimi Dijvejin, doctoral student and lead author of the study. "The hybrid approach allows the operator to quickly and accurately monitor the equipment sustainably," she says. "The equipment won't need to be de-iced unnecessarily—avoiding wear-and-tear and wasteful energy usage—because the sensors can determine the need." The sensors, which are integrated into innovative materials, could keep surfaces ice-free without the need for further chemicals or energy-intensive methods. "We are moving from our experimentation phase into real-life usage, and have seen the technology hold up to harsh conditions," explains Dr. Zarifi. "We're currently working with Canadian turbine manufacturers to incorporate the technology for the upcoming winter." https://techxplore.com/news/2022-10-coating-aims-aircraft-de-icing.html Firefly’s successful rocket launch over the weekend helps fill a big gap in the market, CEO says • Private venture Firefly Aerospace reached orbit with its Alpha rocket for the first time. • Firefly is the fifth U.S. rocket builder to reach orbit in the past 15 years — joining a select group that includes SpaceX, Rocket Lab, Virgin Orbit and Astra. • Firefly’s Alpha rocket is designed to launch as much as 1,300 kilograms of payload to orbit – at a price of $15 million per launch. Private venture Firefly Aerospace reached orbit with its Alpha rocket for the first time on Saturday, a milestone in the company’s development that sees it join an increasingly competitive U.S. launch market. Firefly is the fifth U.S. rocket builder to reach orbit in the past 15 years — joining a select group that includes SpaceX, Rocket Lab, Virgin Orbit and Astra. “It’s a fantastic group to be a part of ... but there’s nobody else in that group that has the capability of the rocket we just put into space,” CEO Bill Weber told CNBC. “There’s an open for business sign on Firefly.” Standing at 95 feet tall, Firefly’s Alpha rocket is designed to launch as much as 1,300 kilograms of payload to orbit – at a price of $15 million per launch. This puts Firefly in the “medium-lift” category of rockets, in between “small” launchers and the “heavy” rockets. “There’s a business case that is just screaming to be addressed” in the middle part of the launch market, Weber said. Firefly launched the mission, its second attempt to reach orbit, from California’s Vandenberg Space Force Base, with the Alpha rocket delivering three satellite payloads. The success comes a year after its first attempt failed mid-flight. Firefly has another Alpha launch scheduled for this year, and plans to launch as many as six in 2023 and 12 in 2024. “We don’t want to just do this once. We want to do this once a month and then ultimately once a week,” Weber said. “There is more demand in the market than rockets we’re going to build and that’s a great place to be from a growth perspective.” Sign up here to receive weekly editions of CNBC’s Investing in Space newsletter. Weber was named Firefly CEO just a month ago, with company co-founder Tom Markusic stepping down earlier this year, shortly after private equity firm AE Industrial Partners acquired a significant stake in the company. Weber was previously CEO of KeyW, a cybersecurity company sold to Jacobs in 2019. The company has a variety of plans for expansion, including a partnership struck this summer with Northrop Grumman to move the contractor’s Antares rocket work to the U.S. from Russia and Ukraine. It also plans to build a larger rocket called “MLV.” Firefly is building out additional product lines as well, including its “Blue Ghost” lunar lander and a space utility vehicle, or “space tug,” to transport satellites into unique orbits after a launch. Weber said the first Blue Ghost mission to the moon is currently scheduled for May 2024. “We’re going to be one of the first missions, if not the first mission, for NASA that puts a spacecraft back on the moon,” Weber said. With the funding its raised previously, Firefly’s CEO said the company is capitalized to “do the things that we need to do in 2022 and 2023.” But Alpha reaching orbit gives the company a new status for potential investors. ″[Saturday] morning changed a lot of things for this company, on a lot of different fronts,” Weber said. https://www.cnbc.com/2022/10/03/firefly-aerospace-reaches-orbit-joining-spacex-rocket-lab-and-others.html Curt Lewis