January 25, 2023 - No. 004 In This Issue : Aircraft That Changed Aviation Forever : Private Equity Firm Acquires Mod Specialist Blackhawk Aerospace : 6 electric aviation companies to keep on your radar : Joby Partners with Aviation High School to Prepare the Future Electric Aviation Workforce : Aviation industry in crosshairs for next biofuel push : Berry Aviation wins US MARSOC A-ISR support contract : Private jet companies look to expand Las Vegas presence with casino customers Aircraft That Changed Aviation Forever January 13, 2023 Craig Bowman Note: Graphics are available in the original article. For the last century, the rate of rapid technological growth that has been achieved thus far has surpassed the pace of technological achievements of the previous millennia of human history combined. This could not be more true for the aviation industry.Before the late 19th century, flying had only been a dream or a gift reserved for the gods and heroes of ancient mythologies. Yet, that all changed. Although brutal affairs such as warfare have been a leading contributor to the swift advancement in aero engineering and aviation as a whole, the progress can nevertheless be attributed to a select few aircraft that changed aviation forever. 1905 Wright Flyer III The Wright Flyer III in its two-seat configuration at the Kill Devil Hills, May 1908 Over the winter of 1904-1905, the Wright brothers built the Wright Flyer III. With its first flight taking place on 23 June 1905, the aircraft featured a new airframe and an upgraded engine with slightly larger cylinders, but it was essentially the same design and had the same marginal performance and instability as Flyers I and II. These shortcomings caused a major crash on July 14 1905 that all but wrecked the aeroplane. Orville Wright emerged unscathed from the crash and it convinced the Wrights to make radical changes to the aircraft design. On Oct 5 1905, Wilbur Wright flew 24 miles in 39.5 minutes, longer than the total duration of all the flights of 1903 and 1904. Four days later, they wrote to the Secretary of War, offering to sell the world’s first practical aeroplane. A Boeing 314 “Clipper” in flight Aeroplane travel became popular during the mid-1930s and as passengers wanted to fly across the ocean, Pan American Airlines put in a demand for a long-range, four-engine flying boat. As a result, Boeing developed the Model 314, nicknamed the “Clipper” after the great ocean going sailing ships. On June 28, 1939, the 3,500-mile range Clipper made the first scheduled transAtlantic flight. By the year’s end, Clippers were routinely flying across the Pacific. Clipper passengers looked down at the sea from large windows and enjoyed the comforts of dressing rooms, a dining salon that could be turned into a lounge and a bridal suite. The Clipper’s 74 seats were converted into 40 bunks for overnight travellers. Four-star hotels catered gourmet meals served from their galley. B-29 Superfortress Enola Gay 1945 On August 6, 1945, the B-29 Superfortress Enola Gay bombed the Japanese city of Hiroshima. It was not a sortie of just one bomber, with a payload that had never been seen before, it was the first atomic bomb. Aside from being the first nuclear-capable aircraft, the B-29 was also the first with a pressurised compartment for the flight crew and the first US bomber to an integrated radar to supplement its Norden M-9 bombsight. With a maximum takeoff weight of 140,000 pounds, the four-engine, 11-crewman B-29 could carry up to 20,000 pounds of bombs. It was flown from 1943 to 1954, although the Air Force continued flying variants as tankers until 1978. Junkers F 13 Dated: 1920 The F13 first flew in 1919 (as the J13), essentially being the first aircraft to anticipate the onset of modern air transport. It was cantilever [no wing struts], all metal, low wing, monoplane, and streamlined by today’s standards. By the end of the year 1919, it was in commercial service in Germany. It established the founder Hugo Junkers in a position of global air transport dominance that his firm would not relinquish until the mid-1930s, to US American businessman Donald Douglas. The F13 was also used in the first airline service in the Americas (Colombia’s SCADTA). Unlike postwar transport aircraft that were modified from military types, the F13 was designed to carry passengers in an enclosed cabin. Its four cushioned seats had seat belts, the cabin was lighted, and it had picture windows. Mikoyan-Gurevich MiG-15 A Soviet Air Forces MiG-15UTI two-seater trainer over Duxford Air Festival Photo: The Mikoyan-Gurevich MiG-15 “Fagot” made its mark during the Korean War as the Soviet Union’s first jet-powered daytime interceptor with a pressurised cabin and an ejection seat. The MiG-15’s main purpose was to pick off US B-29 bombers. It did so with perfection, but that led to storied dogfights between the MiGs and the B-29s’ fighter escorts, the North American F-86s. Though later variants of the MiG-15 could climb higher and faster than the F-86, US Air Force pilots generally made up the difference with better aerial combat training and internal equipment. Nevertheless, the 670-mph MiG-15 solidified the impression that the Soviets could build state-of-the-art aeronautical technology. Aircraft That Changed Aviation Forever Private Equity Firm Acquires Mod Specialist Blackhawk Aerospace By Mark Phelps - Published: January 3, 2023 Blackhawk Aerospace, a 60-employee aircraft modification company based in Waco, Texas, announced today it has sold its majority ownership to private equity firm New State Aviation Holdings. The financial firm’s “anchor aviation investment” is Avex, a sales and support company focusing on Daher TBM turboprops. Self-described as a “middle-market” private-equity platform, New State will retain Blackhawk management and, as with Avex, enable the newly acquired company to continue to operate independently. Terms of the transaction were not revealed. Founded in 1999 as Blackhawk Modifications, the Texas company engineers and performs engine upgrades for several turboprop models, including the Beechcraft King Air series. The modifications “improv[e] an aircraft’s speed, safety, and climb capabilities, while extending engine life,” according to Blackhawk. Worldwide customers include the commercial and defense markets. Since its inception, Blackhawk has added divisions for defense support, maintenance, avionics, composites and aircraft sales by acquiring businesses located in Huntsville, Alabama, and Columbia, Missouri. Blackhawk CEO Jim Allmon said, “Our family of companies shares a singular focus: to increase an aircraft’s capabilities to unrivalled heights while maintaining the highest level of safety possible. We look forward to working with Chad [Cundiff] and the rest of the New State Aviation team to further expand our services.” Private Equity Firm Acquires Mod Specialist Blackhawk Aerospace 6 electric aviation companies to keep on your radar In some ways, the unexpected halt in traveling in 2020 may have helped boost this transition. By Michelai Graham January 25, 2022 Note: Graphics are available in the original article. Electric aviation may have seemed like just a dream a few years ago, but the industry is on the rise. Image via Shutterstock/Satit Srihin Aviation emissions have doubled since the mid-1980s, Our World in Data reports, and they account for 2.5 percent of global carbon dioxide emissions. The U.S. is becoming more ambitious about reaching net-zero emissions, and President Joe Biden even signed an executive order to push for a 50 percent reduction in greenhouse gas pollution by 2030. Addressing air travel is a large part of that, which has inspired innovation in sustainable aviation fuels, as well as in technologies that promise to electrify flight. "The electrification of aviation has come a long way in recent years. In 2008, the industry adopted a global, sector-wide climate action framework — a world first. Since then, the industry has continued to recognize and respond to environmental concerns expressed by consumers, the environmental lobby, governments and other players by, for example, cutting emissions and reducing noise levels," Stephane Lagut, a global aerospace and defense sector leader at Ernst & Young, told GreenBiz. "Together, these factors have made a greener, cleaner aviation sector inevitable — and that was before the pandemic struck." Air travel took a big hit because of the pandemic. Still, air mobility investments groups are ready to pour funds into electric aviation. Take UP.Partners. The firm launched a $230 million venture capital fund last fall to back electric aviation companies. With more financial backing, we may see some all-electric passenger aircrafts in the sky by 2026. In some ways, the unexpected halt in traveling in 2020 may have helped boost this transition. For one thing, free-falling demand led to low aircraft use, triggering decommissioning of older aircraft sooner than planned. Cost pressures on the system are also driving exploration of investments in more cost-effective and sustainable aircraft, Lagut said. The industry may still be far off from urban air mobility, a.k.a flying taxis. (See our separate list for some of those players.) Still, advancements in electric and autonomous vehicles have sparked renewed excitement about integrating battery power more broadly in aviation, Lagut explained. Funding, talent, battery capacities and other energy storage concerns will be some of the biggest hurdles in the electric aviation industry, but companies aren’t shying away from the challenges. The global market for electric aircraft is projected to reach $27.7 billion by 2030, according to market research company MarketsandMarkets. Experts say the growth in this market stems from urban mobility aircraft deployment and the increasing use of electric aircraft for cargo and other activities. Below, you can find six electric aviation companies to watch in 2022. We’re featuring these privately held companies because they are all moving into new phases of product development, raised funding to fuel growt, or are simply powering forward on their missions. It’s important to note that these aren’t the only companies doing the best work, but these are some we think you should know about. We also chose electric aviation companies we haven’t previously featured (check out the 2019 list) and that aren’t attached to projects managed by larger corporations or airlines. Here they are: Airflow Founded in 2019, San Francisco Bay Area-based Airflow is building an aircraft for middle-mile logistics and passengers. The aircraft, which can carry nine passengers or 2,000 pounds of cargo, will be staffed and operated by one pilot. The company was launched by a team from the former Airbus Vahana eVTOL program, which worked on an electric-powered personal air vehicle prototype. Over the next decade, Airflow wants to develop fully autonomous, cargo-carrying vehicles. For now, the company is focused on developing its flagship electric short takeoff and landing (eSTOL) aircraft. Airflow recently landed partnerships with Honeywell and Tailwind Air Service to help develop its aircraft. Through its partnership with Honeywell, Airflow will be testing out the company’s traffic radar tech on its aircraft and developing personalized avoidance algorithms. "Honeywell recognizes the impact that an eSTOL manned aircraft can have on not only passenger and middle-mile logistics operations but also on building a sustainable future for aviation. We want our technologies to be a part of that journey and future," Stéphane Fymat, vice president and general manager of urban air mobility at Honeywell Aerospace, said in a press release. "Airflow is founded by some of aerospace’s most experienced professionals, and we’re excited to help the company deliver upon both their short- and long-term goals, which are to expand the benefits of aviation as well as reduce carbon emissions with an electric aircraft." The company hasn’t yet disclosed funding details but states on its website that it will be sharing venture capital backing soon. Airflow is led by CEO Marc Ausman, a former chief strategist on the Airbus Vahana program. Before launching Airflow, Ausman also held executive roles at Yuneec, Eclipse Aviation and the U.S. Navy. Beta Technologies has raised $511 million in funding across two rounds from companies including Amazon and Hula. Beta Technologies Burlington, Vermont-based Beta Technologies is an aerospace manufacturer developing electric vertical take-off and landing (eVTOL) aircrafts for the cargo and logistics industry. Founded in 2017, the company started as CEO Kyle Clark’s senior thesis project in college. He threw himself into learning aircraft design, ultimately landing on the concept Beta is advancing today. The startup has raised about $450 million, according to a spokesperson, including a $368 million Series A closed in May. It has attracted investments from investors including the Amazon Climate Pledge Fund. But Beta isn’t just in the business of developing electric aircraft; the company also provides rapid charging stations at airports and is developing a training program with CAE, a Canada-based simulation technologies manufacturer, for electric vertical pilots and maintenance technicians. Clark said Beta has more than 60 rapid charging stations online or in construction from here to Arkansas. "The future of transportation is electric, and Beta enables it," Clark told GreenBiz. "We’re building all the elements needed for deployment of electric aircraft — including the aircraft itself as well as a cross-country charging infrastructure that supports all-electric vehicles — eVTOL, trucks, cars — not just our own." With its steadfast mission of expanding electric aviation worldwide, Beta built, tested and flew its first eVTOL aircraft, Ava, in under a year. The company took lessons from its flagship aircraft and built Alia, which has a 50-foot wingspan and will be the aircraft Beta takes through FAA certification. Clark said Alia is a "zero operational emissions aircraft" that reduces material waste generated in production and ongoing maintenance, offering a lower impact means of transportation for use cases across the board. Heart Aerospace Heart Aerospace, a Sweden-based electric aviation startup, is developing a 19-passenger electric aircraft that can travel 250 miles and a backup generator for energy reserve and range extension. The company coined its flagship aircraft Heart ES-19, and United Airlines and commercial aviation holding company Mesa Air Group ordered 200 of Heart Aerospace’s inaugural electric aircrafts. Last summer, the company closed a $35 million Series A funding round led by big names, including Bill Gates’s Breakthrough Energy Ventures and United’s venture arm. Heart Aerospace spun out of a research project at Sweden-based Chalmers University of Technology in 2018, and the company was a part of Y Combinator’s Winter 2019 cohort. The company’s deal with United and Mesa was announced in conjunction with its Series A and includes an option of purchasing up to 100 additional aircraft, TechCrunch reported. "We’re not looking to reinvent the wheel. A lot of startups are presenting very novel aircraft architectures, spending several years in subscale testing just to demonstrate the basic functionality of the aircraft," Anders Forslund said in a press release. "We’ve avoided these pitfalls by relying on a conventional aircraft architecture," says Forslund. "We can devote almost all our resources to the formal development — bringing this aircraft through certification and into commercial service." Heart Aerospace has raised $37.3 million since its inception to develop its electric aircrafts, and the company plans to deliver its first commercial aircraft by 2026. We expect the company will continue to release positive progress updates following a successful flight of a subscale model of its Heart ES-19 aircraft in December. Check out the flight here. Universal Hydrogen Los Angeles-based Universal Hydrogen is on a mission to make a flexible and carbon-free future possible by making hydrogen the universal fuel choice. The company developed a modular capsule technology solution for hydrogen transportation to power electric aircrafts. Universal Hydrogen also develops conversion kits that aircraft operators can purchase to retrofit their existing regional airplanes with hydrogen-electric powertrains compatible with its modular capsule technology. In October, Universal Hydrogen secured $62 million in funding to advance the first test flight of its hydrogen fuel cell powertrain on a regional airliner in 2022. The company said its tech is appealing because the modular capsules are lighter than your typical hydrogen storage options. Universal Hydrogen also landed a partnership with Connect Airlines in December to help it become the first zero-emission U.S.-based airline. The airline is purchasing 24 of Universal Hydrogen’s green hydrogen conversion kits to transition to an actual zero-emission operation. Universal Hydrogen has signed various other letters of intent with airline operators interested in purchasing its conversion kits. Wright Electric Launched in 2016, New York-based Wright Electric builds technology for large commercial airplanes and is developing its flagship electric aircraft. The Wright Spirit will be a zero-emission 100-passenger airplane for one-hour flights, and the Wright 1 will be a 186-seat single-aisle aircraft with an 800-mile range. The company’s mission is to eliminate carbon emissions from all flights under 800 miles, so it’s targeting single-aisle planes, which account for 45 percent of all aviation emissions. Wright plans on doing this by developing electric motors, high-frequency inverters and adaptable propulsion systems. The company is in the development stages for its motors and inverters and will be working on the propulsion fans this year. After 2022, Wright will be in testing mode ahead of its plans to launch the Wright Spirit by 2026 and the Wright 1 by 2030. Wright is funded by NASA, the U.S. Department of Energy, Y Combinator, Lionheart Ventures, the U.S. Air Force and other investors. The company is designing its electric motors to be scalable from 500 kilowatts to four megawatts. "The level of power and weight demonstrated with our new 2 MW motor will become the baseline for any new electric aircraft and is a key technology in our megawatt system," Wright CEO Jeff Engler said in a press release. ZeroAvia After closing a $35 million Series B in December, this hydrogen-electric aircraft developer is hyper-focused on its growth plans. ZeroAvia manufactures hydrogen-electric aircrafts to improve emission performance. The company was founded in 2017 in San Carlos, California, but it moved to England last year. ZeroAvia has made significant strides in developing its commercial entry product. The company began electrical testing of its initial powertrain design in 2019, and most recently, in August, ZeroAvia did some ground testing on its hydrogen aircraft engine. In its first HyFlyer I project, the company completed 35 test flights of its six-seat prototype. For its HyFlyer II project, ZeroAvia is developing a 600-kilowatt hydrogen-electric powertrain for a 10-20 seat aircraft and preparing for flight testing in early 2022. The company has secured commercial deals with big names such as Alaska Airlines, ASL Aviation Holdings and Mitsubishi Heavy Industries Regional Jet division. ZeroAvia has secured more than 460 commitments to deliver on its hydrogen-electric engines and other programs. Editor's note: This story was updated Jan. 27 to correct the funding amount for Beta. 6 electric aviation companies to keep on your radar Joby Partners with Aviation High School to Prepare the Future Electric Aviation Workforce Santa Cruz, CA, and New York City, NY, Dec 05, 2022 — Joby Aviation, Inc. (NYSE:JOBY), a company developing all-electric aircraft for commercial passenger service, today announced a partnership with Aviation High School in New York City to prepare the next generation of aircraft maintenance technicians and aerospace leaders for career opportunities created by the electric age of flight. New York’s Aviation High School is a leading education center for future aircraft maintainers and aerospace professionals. Joby’s partnership with the school comes shortly after the Company announced a multi-year partnership with Delta Air Lines to deliver transformational, sustainable home-to-airport service for Delta customers, beginning in New York and Los Angeles. “Industry partnerships such as the one between Aviation High School and Joby Aviation are key in ensuring our career-pathways programs are exciting, relevant to students’ interests, and valuable in preparing our young people for life after graduation,” New York City Schools Chancellor David C. Banks said. “I’m grateful to everyone at Aviation High School and Joby Aviation for their dedication to our students and their futures.” As part of the partnership, 100 Aviation High School students have already enrolled in Joby’s online Private Pilot Ground School course, which teaches the basics of aerodynamics, aviation and piloting. Joby will also work with the school’s faculty to integrate material on electric propulsion systems and other new technologies into its curriculum. “With electrification and air taxis set to revolutionize the aviation industry, we are excited to partner with Joby to inspire and train our students to work with these cutting-edge technologies and prepare the talented young men and women of New York City for successful careers in the aviation world of tomorrow,” said Aviation High School Principal Steven R. Jackson. Joby recently brought 4 virtual-reality simulators to Aviation High School, located in Long Island City. Students had the opportunity to virtually pilot the Company’s electric vertical take-off and landing (eVTOL) aircraft, which has a dramatically lower noise signature than traditional helicopters and produces zero emissions during flight. “Aviation High School is a tremendous resource for the New York community and the aviation industry, working upstream to prepare a diverse group of students to join the next generation of pilots, maintainers, and aerospace leaders. We’re thrilled to partner with the school and give students first-hand access to innovative technologies like electric propulsion and eVTOL aircraft design,” said Bonny Simi, Head of Air Operations and People at Joby. With more than 1,000 test flights completed, Joby has demonstrated its revolutionary aircraft has the range, speed, altitude, and low noise profile to operate quiet and sustainable trips in and around communities like New York City and the tri-state area. Andrew Kimball, New York City Economic Development Corporation President, said: “This sort of partnership – building direct pathways for New York City students for the innovative sectors of today and tomorrow – are essential to creating a more vibrant and inclusive economy. Thank you to everyone at Aviation High School, the Department of Education, and Joby Aviation, for providing such a valuable program to our students.” Queens Borough President Donovan Richards Jr., commented: “The aviation industry is taking off in Queens as LaGuardia Airport’s redevelopment wraps up and Kennedy Airport’s revitalization gets underway. It is critical that the tens of thousands of jobs created by these projects are filled by Queens residents, and that our young people especially are easily connected to these employment opportunities of tomorrow. I look forward to partnering with Aviation High School, Joby Aviation, the Port Authority and all our partners to ensure that Queens is at the forefront of the reimagining of our airports.” "Celebrated an exciting partnership between Aviation High School and Joby Aviation that will train students to pilot new electric air taxis starting in 2025. This partnership will provide future graduates of Aviation High School with new career pathways and opportunities to maintain, repair, and service these new air taxis of the future and promote climate justice in aviation," said Council Member Julie Won. "Honored to celebrate this announcement with Principal Jackson, NYC Schools Chancellor Banks, Deputy Queens Borough President Ebony Young, Joby, and the staff and students at Aviation High School." About Joby Joby Aviation, Inc. (NYSE:JOBY) is a California-based transportation company developing an all-electric, vertical take-off and landing aircraft which it intends to operate as part of a fast, quiet, and convenient service in cities around the world. To learn more, visit www.jobyaviation.com. About Aviation High School Aviation High School is a Federal Aviation Administration (FAA) certified aviation maintenance technician school and New York City public school located in Long Island City, Queens. Aviation High School comprises over 2,000 students who participate in FAA aviation maintenance courses, in addition to traditional academic courses, from freshman year through fifth year as they work on earning their FAA airframe and powerplant licenses. These licenses enable certified graduates to directly enter the aviation maintenance workforce as aviation maintenance technicians. The school is celebrating its 87th anniversary and graduates of Aviation High School make-up a very large portion of the aviation maintenance technician workforce in the tri-state area and the nation. Visit www.aviationhs.net for more details. Forward Looking Statements This press release contains “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, including but not limited to, statements regarding the development and performance of our aircraft; our business plan, objectives, goals and market opportunity; and plans for, and potential benefits of, our strategic partnerships. You can identify forward-looking statements by the fact that they do not relate strictly to historical or current facts. These statements may include words such as “anticipate”, “estimate”, “expect”, “project”, “plan”, “intend”, “believe”, “may”, “will”, “should”, “can have”, “likely” and other words and terms of similar meaning in connection with any discussion of the timing or nature of future operating or financial performance or other events. All forward looking statements are subject to risks and uncertainties that may cause actual results to differ materially, including: our ability to launch our aerial ridesharing service and the growth of the urban air mobility market generally; our ability to produce aircraft that meet our performance expectations in the volumes and on the timelines that we project, and our ability to launch our service; the competitive environment in which we operate; our future capital needs; our ability to adequately protect and enforce our intellectual property rights; our ability to effectively respond to evolving regulations and standards relating to our aircraft; our reliance on third-party suppliers and service partners; uncertainties related to our estimates of the size of the market for our service and future revenue opportunities; and other important factors discussed in the section titled “Risk Factors” in our Annual Report on Form 10-K, filed with the Securities and Exchange Commission (the “SEC”) on March 28, 2022, and in future filings and other reports we file with or furnish to the SEC. Any such forward-looking statements represent management’s estimates and beliefs as of the date of this presentation. While we may elect to update such forward-looking statements at some point in the future, we disclaim any obligation to do so, even if subsequent events cause our views to change. Joby Partners with Aviation High School to Prepare the Future Electric Aviation Workforce Aviation industry in crosshairs for next biofuel push Aviation accounts for 10 percent of U.S. greenhouse gas emissions — a figure expected to triple by 2050 Note: Graphics are available in original article.. By Valerie Yurk Posted January 23, 2023 at 7:00am Corrected 2:15 p.m. | Congress and the Biden administration aim to boost the use of sustainable fuels for the emissions-heavy aviation industry, setting up a new front for the debate over biofuels. Sustainable aviation fuels, or SAF, made from a range of plants and other organic matter have proven successful as a replacement or additive for traditional, petroleum-based jet fuels. The Biden administration has thrown its support behind SAF, setting a goal for the U.S. to produce enough to meet 100 percent of jet fuel demand by 2050. The administration says such a conversion would reduce greenhouse gas emissions from aviation by 50 percent. NASA on Wednesday said it would partner with Boeing Co. to create a SAF-powered single-aisle aircraft. Congress, in its 2022 climate, health care and tax package, included a tax credit of $1.25 per gallon for blenders using SAF. Appropriators also included $68 million in the fiscal 2023 government spending law to support carbon reduction efforts in the aviation industry, including provisions directing federal agencies to prioritize SAF research and development. Meanwhile, the private sector is ramping up SAF production. Companies like Finnish oil firm Neste Corp., Boston-based World Energy LLC and Sky NRG BV of the Netherlands, supply SAF to Alaska Airlines, American Airlines, JetBlue, United Airlines and Boeing. World Energy is among the top producers in the United States, with plants in California that fuel United Airlines flights out of Los Angeles. Commercial airplanes and large business jets contribute about 10 percent of transportation emissions, a figure expected to triple by 2050 as air travel continues to grow. That growing demand for air travel has some experts skeptical about SAF’s ability to keep pace. And although the U.S. produces 4.5 million gallons annually as of 2021, according to the White House, the industry has a long way to go to meet President Joe Biden’s goal of producing at least 3 billion gallons annually by 2030. “The lack of sufficient supply [of SAF] is the biggest issue right now,” said Geoff Cooper, president of the Renewable Fuels Association, an ethanol industry advocate. “There’s some stuff being produced, but it’s a very small volume, and until we get more production facilities up and running, the cost is going to be high.” In the United States, SAF costs on average $9.23 per gallon as of Wednesday, according to aviation data site Global Air, up from $8.67 in May. Standard kerosene-based jet fuel sits at an average of $6.90 per gallon. Trucking industry representatives have raised concerns that a larger reliance on SAF will take away key feedstocks from biodiesel, an alternative fuel that’s already been used for years. Biodiesel and SAF are both made up of lipids, primarily soybean oils and used cooking oils, and critics say that scaling up SAF could undermine the biodiesel industry, which helped reduce more than 18 million tons of carbon emissions on California’s roads between 2011 and 2019. “Touting sustainable aviation fuel as a ‘new method’ for reducing transportation carbon emissions ignores the fact that it will unravel decades of existing carbon reductions in over-the-road transportation and increase fuel prices for commercial fleets,” said the National Association of Truck Stop Operators, a trucking industry representative, in a statement. “In fact, renewable jet fuel production is simply designed to displace existing and future, less expensive renewable diesel production.” Tax credit boost Cooper said that the SAF industry has some positive signs. The tax credit has been a huge boon for the SAF industry, he said, and new technologies have emerged in the past year that provide new feedstocks for SAF. For example, companies like Honeywell have developed a way to further process ethanol, a popular starch-based biofuel, into jet fuel, which opens up the SAF industry to hundreds of existing bio-refineries and provides for a feedstock other than lipids. Alder Fuels of Washington, D.C., a producer of "green crude," is also working with Honeywell to use feedstocks like regenerative grasses and forest and agricultural residues. With a more diverse range of feedstocks, the Energy Department projects the industry would be able to produce 50 billion to 60 billion gallons per year with biomass like corn, grain, algae, agricultural and forestry residues and municipal solid waste streams. Congress seems eager to move ahead on aviation biofuels, including some lawmakers who have been reluctant to back energy transition fuels. Congress has long fought over what to do about biofuels, which has caused a regional split over how much biofuels like ethanol to blend into gasoline under the renewable fuel standard. Lawmakers from Midwestern states that produce key crops like corn and sugarcane used to make ethanol have long supported increased biofuel blends. Legislators from states with oil refinery operations like Texas and Oklahoma have pushed back against biofuels, arguing that it will only increase fuel production costs that translate to higher prices at the pump. In October, a bipartisan group of Midwestern lawmakers — including Sen. Joni Ernst, R-Iowa, Sen. Charles E. Grassley, R-Iowa, Sen. Deb Fischer, R-Neb., Sen. Amy Klobuchar, D-Minn., and Sen. Sherrod Brown, D-Ohio — sent a letter to the EPA calling SAF a “new pathway for RFS compliance” and urging to agency to take action on “regulatory barriers” on biointermediates, or partially converted feedstocks, that can be used to make SAF. “Such actions would permit these biofuel producers to use at scale the investments they have made, access low-carbon markets, and pave the way for the next generation of renewable fuel innovation,” they added in the letter. Diverse feedstocks But it seems that SAF’s diverse choice of feedstocks makes it more appealing to some lawmakers from both parties. Republicans from states outside of the Midwest, including those who usually oppose green energy initiatives — like the Senate Energy and Natural Resources Committee’s top Republican, John Barrasso, R-Wyo.; Sen. Steve Daines, R-Mont.; and Sen. Bill Cassidy, R-La. — have come to support SAF and biodiesel production. All have biodiesel production plants located in their states. Montana-based oil refiner Calumet Montana Refining announced its renewable arm, Montana Renewables, had recently received bonds to add biodiesel production infrastructure to its refinery. Louisiana is also set to get new renewable diesel plants, including one from project development company Strategic Biofuels LLC, and Barrasso said Wyoming is “a leading producer of renewable diesel and is expected to produce a lot more in the near future.” The Republican group, along with Sens. Dianne Feinstein, D-Calif., and Ben Ray Luján, D-N.M., introduced a bill in the last Congress that would allow renewable and sustainable aviation fuels to qualify for the Energy Department’s Title XVII loan guarantees under the Energy Policy Act of 2005. “We’re seeing a fair amount of attention around SAF in New York, the Northeast, and even down the coast into Georgia and Florida,” Cooper said. “We haven’t seen that sort of geographical division behind SAF that we’ve seen with other biofuels, and I think part of the reason for that is … there is broader agreement on the need for solutions in the aviation sector, and there’s broad agreement that liquid biofuels are probably the best bet.” And as long as SAF continues to show promises to grow industries across the country, it’s likely that Republicans will remain supportive of aviation biofuels. “During the conversations regarding the tax credit, we didn’t get a lot of pushback from really anybody,” a House Transportation and Infrastructure Committee aide familiar with the discussions said. “Many Republicans have conceptually endorsed the idea of SAF and ways to reduce barriers … the [aviation] industry pushed for it, labor organizations pushed for it, and as long as strong environmental standards are in place, environmentalists are behind it too.” The aide added that Democrats on the committee will likely look into building on SAF progress made throughout the last few years, including ways to ramp up SAF storage and transportation infrastructure. This report was corrected to accurately reflect the names of two companies involved in producing sustainable aviation fuels, Neste Corp. and Sky NRG, to clarify the products of Alder Fuels, and to properly identify Sen. Joni Ernst of Iowa. Aviation industry in crosshairs for next biofuel push Berry Aviation wins US MARSOC A-ISR support contract The company will provide a specially modified Cessna 206 as per the terms of the contract. Berry Aviation’s C-206 platform can be used for air-to-ground integration work, perimeter security and intelligence gathering training. Credit: Berry Aviation, Inc/PRNewswire. Acorn Growth Companies’ member Berry Aviation has received an award to support the US Marine Corps Special Operations Command (MARSOC). Under the terms of the contract, the company is required to provide Airborne Intelligence, Surveillance and Reconnaissance (A-ISR) system services. The ISR services will be offered in support of MARSOC’s air-to-ground integration training. The company will provide a specially modified Cessna 206 platform, aircrew who have combat experience, and a remote portable ground control station (GCS). Berry Aviation Special Operations Support director and MARSOC combat veteran Stan Green said: “The aircraft is mod-payload compliant, and purpose built to serve both as a crewed platform as well as a surrogate UAS that operates within the National Airspace confines.” According to the company, Special Operations teams will use the A-ISR system to obtain and crucial key skills in a ‘realistic, scenario-based training’ before being deployed across the globe. Berry Aviation noted that the contract is the first for its ISR division. Acorn Growth Companies managing director Gary Ambrose said: “Berry Aviation has successfully leveraged a specialised and global air mobility operation and added ISR training and support to their offering. “They have an impeccable reputation for safety and mission results for their customers. Their combat-experienced operators and cadre are the best of breed and will be a value add for MARSOC and others in need of ISR services.” Last year, the company received a contract from the US Special Operations Command (USSOCOM), Science and Technology Directorate for a new Group 1 Uncrewed Autonomous System (UAS). Berry Aviation wins US MARSOC A-ISR support contract Private jet companies look to expand Las Vegas presence with casino customers Howard Stutz January 22nd, 2023 at 2:00 AM Note: Graphics available in original article. Officials with the growing private airline industry see their sleek jets as the eventual replacement to casino company corporate jets that fly big-spending customers to the Strip. It’s already happening on a small scale. On many weekends, limousine drivers working for Strip resorts – instead of waiting in the Harry Reid International Airport baggage claim area holding a sign with a customer’s name – park their vehicles in front of private airline terminals located along the western side of the airport, far from the main passenger terminals. The casino’s customers are picked up for a quick drive down Las Vegas Boulevard to their awaiting destination. Private airlines save time for passengers eager to reach the blackjack tables or make their restaurant reservations. Federal guidelines also allow passengers to avoid TSA security lines or baggage claim because their luggage is waiting on the tarmac when they disembark. They may pay a little more than a commercial flight, but not the exorbitant amounts typically associated with private jets, and officials from the airlines say the flexibility is worth the cost. Executives said they have been in talks with gaming companies about ferrying their customers, but agreements haven’t been formalized. “With all the big events coming to Las Vegas this year, we’ve had a few private discussions about partnership opportunities,” said Tom Smith, CEO of Scottsdale, Arizona-based Set Jet. Ben Kaufman, director of marketing for Dallas-based JSX, said the airline has “great relationships” with several Strip properties. “Those relationships are always ever-changing and evolving, but we have regular communication,” Kaufman said. Travel industry expert, Scott Mayerowitz, executive editor of travel industry news website The Points Guy, said Las Vegas is the latest target for private airline companies. While many casino companies still operate their own corporate jets, Mayerowitz said private airline operators such as JSX and Set Jet offer the gaming companies a more economically feasible way to shuttle in customers. “The idea of bringing one high roller over on a jumbo jet doesn't make economic sense anymore,” Mayerowitz said, calling the private jet industry “a really creative way for the casino companies to still treat their best gamblers like royalty, but to do it at a much more efficient cost.” Spokesmen for several Strip casino operators said their companies still operate their own aircraft and declined to comment on the private airline industry. In the short term, Las Vegas is a key market for the corporate jet industry because leisure travelers are starting to become dismayed by the commercial airline industry. On a national scale, Mayerowitz said regional airlines have cut service to some leisure destinations. There are also not enough pilots for the industry. He said four airlines – Southwest, American, Delta and United – “control 80 percent of the flights.” He added that a proposed merger between Jet Blue and Spirit would reduce customer choice, further pushing air travelers to seek other options. After the post-Christmas meltdown by Southwest Airlines that delayed or canceled thousands of flights nationwide and disrupted the travel plans of hundreds of thousands of travelers, the private airline operators found a new audience of interested customers. “We saw a 100 percent increase in our web search traffic,” Smith said. In anticipation of a bigger consumer market, Set Jet broke ground in December on a 2,500-square-foot terminal adjacent to its temporary space in Las Vegas in the Atlantic Aviation facility. The private terminal is at the corner of Tropicana Avenue and Koval Lane on the airport grounds. Smith said the 3-year-old company plans to base two planes out of Las Vegas, which would grow the airline’s total number of annual passengers to a volume matching the company’s Scottsdale hub that serviced 8,500 customers in 2022. Last year, Set Jet flew some 1,500 passengers to and from Las Vegas through the Atlantic Aviation terminal. “Vegas is a key destination and a location that allows us to expand service and create opportunities and new partnerships,” Smith said. Las Vegas is also a growth market for Dallas-based JSX. The airline operates 43 routes across 22 North American destinations. More than half of the company’s flights have a Las Vegas connection. JSX Director of Marketing Ben Kaufman said the airline operates nearly 150 flights a week from the company’s Las Vegas terminal at the end of Haven Street across from Mandalay Bay. “Las Vegas is an absolutely critical pillar of our organization,” Kaufman said. “It's a city that we've been very excited to grow over the years.” Count gaming industry analyst and adviser Brendan Bussmann as a convert to private airlines when he’s looking for ways to reach a short work-related event. Bussmann, the managing partner of Las Vegas-based B2 Global, booked a round-trip flight on JSX for late March to attend the National Indian Gaming Association Conference in San Diego. Bussmann said he didn’t want to navigate a five-hour drive on congested Interstate 15 or rely on Southwest for the one-day trip. “With the additional routes to California, it makes a day trip that much easier and you avoid the traffic slog of the I-15 that has yet to be fixed after all of these years,” Bussmann said. Resort operators silent The history of private flights into Las Vegas started shortly after World War II when the late billionaire Kirk Kerkorian, long before creating MGM Resorts International, started an air service that shuttled customers from Southern California to casinos in the desert community. Decades later, MGM Grand Air had a five-year run operating flights between Los Angeles, New York and Las Vegas, but the airline never made a profit. MGM Resorts International still has private aircraft in a hangar at Harry Reid International. A company spokesman declined to comment. Resort operators are quite not ready to turn over the services of bringing their customers to Las Vegas. Wynn Resorts operates two Gulfstream jets that can seat 19 passengers each. Las Vegas Sands Corp. maintains a massive hangar at Harry Reid airport for the company’s fleet of passenger jets, which includes several Gulfstream jets and several large Boeing aircraft, including the 737, 747 and 767 models normally used for commercial flights. The planes are either owned by Sands or the Adelson family, which controls 58 percent of the casino company. Las Vegas Sands sold its Strip properties last year for $6.25 billion and just operates casinos in Macau and Singapore. A company spokesman declined to comment on the status of the aircraft. Bussmann suggested casino operators would be better off partnering with private air carriers. “These new airlines and additional routes provide the gaming industry with a more cost-effective way to bring in VIPs, especially for some of those that may not have any aircraft or just a small fleet of jets,” he said. Boyd Gaming eliminated its charter service to fly its Hawaiian customers to Las Vegas but has since contracted with Hawaiian Airlines for flights to and from Honolulu. Those customers account for a large percentage of the revenue for Boyd’s three downtown Las Vegas properties. “We were able to maintain some of the customer perks, such as having their luggage delivered to our properties,” Boyd spokesman David Strow said. A niche market According to the airport’s monthly release of passenger figures, almost 48.3 million passengers came through the airport in the first 11 months of 2022. The private airlines accounted for an undisclosed small portion of the 193,622 passengers that used the Atlantic Aviation terminal during those 11 months. “In a week, (private airlines) are probably going to move as many (total) passengers as the commercial airlines put through the airport in an hour,” Mayerowitz said. The jets shuttle from 15 to 45 passengers, depending on how the plane’s interior is designed. Set Jet, for example, has a higher price point because it operates under a membership agreement in which passengers pay a monthly fee. The company charges a one-time $100 security check fee, $100 a month for membership and $750 for one-way flights. The airline’s passenger cabins include sofas, living room-style recliners and other amenities. “People are seeking out different options and our model appeals to many customers,” Smith said of the service that connects Las Vegas with flights between Los Angeles, Scottsdale and Cabo San Lucas, Mexico. JSX offers more routes and flies longer distances, which is one reason the airline carries more passengers. The company is adding free in-flight high-speed Wi-Fi for 100 of its aircraft. From Las Vegas, JSX services Los Angeles, Burbank, Napa Valley, Dallas, Denver, Phoenix, Reno and San Diego. Prices vary for each city. From Las Vegas, a round trip to Phoenix in mid-February costs more than $600. A round trip to Los Angeles on the same day is roughly $350. “It's more about having respect and a need for your time and for the passenger to be treated in a different manner than they would by flying the commercial carriers,” Kaufman said. Bussmann said JSX, Set Jet and other air carriers are expanding their Las Vegas flights and presence because they see a niche market they can serve. “It’s a specific customer that wants convenience, accessibility, and more amenities than the larger airlines,” Bussmann said. Scott Kichline, managing director of business and commercial development for Reid airport, said the facility has noted the growing use of private airlines. “On a busy weekend, the ticket prices might be $150 or $300 or $400,” he said. “But it’s still not $2,000 an hour for a private jet. It’s a different mix of customers.” With the Formula One race coming in November, the Super Bowl in 2024 and a growing schedule of special events, the airport acquired a 30-acre parcel for expanded private jet parking behind the JSX hangar building. “We need to expand the ramp area for the private jets,” Kichline said. “It's going to be a continuing effort to kind of adjust as the market adjusts.” Harry Reid International Airport is also considering other ways to accommodate private jets, such as expanding services at Henderson Executive Airport, which also operates under the Clark County’s Department of Aviation. Kichline said 18 acres of ramp space were added for parking planes and the goal is to increase the size of the runway. An environmental impact process with the federal government needs to be completed. “I think you're looking at probably a five-year plan,” Kichline said. He added the department is also looking at a new master plan for North Las Vegas Airport, but that could be a 12- to 24-month process. The challenge with moving private jets away from Reid airport is the owners want to be close to the Strip. “There's always going to be the billionaire who says, ‘No, I want to land at Harry Reid because it's right on Las Vegas Boulevard,’” he said. (Updated on 1/22/2023 at 1:20 p.m. to correct spelling of Scott Mayerowitz) Private jet companies look to expand Las Vegas presence with casino customers Curt Lewis