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Boeing’s Arizona Modification Line Yields First QF-16 Full-Scale Aerial Target

A team from Boeing [NYSE: BA] and the U.S. Air Force completed the first QF-16 Full-Scale Aerial Target to undergo conversion from a modification line in Arizona. The aircraft was flown last month to Tyndall Air Force Base, Florida, where it will be used autonomously in future weapons training operations. 

The 309th Aerospace Maintenance and Regeneration Group (AMARG) located at Davis-Monthan AFB in Tucson teamed with Boeing under a public-private partnership to create a second modification line to supplement ongoing QF-16 work at Boeing’s Cecil Field site in Jacksonville, Florida.

“The delivery of this first AMARG modified QF-16 aerial target drone is a testimony of the cooperative, synergistic relationship we had hoped for when we created the private-public partnership with Boeing,” said Col. Jennifer Barnard, Commander of the 309th AMARG. “Though the installation of the drone conversion package is a relatively new venture for us, our hope is to leverage cost efficiencies and proficiencies benefiting both partners.”

Conversion of the F-16 A/C aircraft to the unmanned QF-16 configuration requires modification of the airframe and installation of major components. The QF-16 performs both autonomous maneuvers through autopilot and controlled maneuvers through ground stations.

“The partnership between Boeing and AMARG is crucial to expediting capability to the warfighters,” said Craig DeMeester, Boeing QF-16 program manager. “It’s an example of great teamwork, and completing this first jet is just the beginning as we have more deliveries planned this year and well into next year.”

Boeing began converting retired F-16s into QF-16s in 2015. More than 120 aircraft are on contract to be modified, with over 40 percent delivered to date.

A QF-16 takes off from Davis-Monthan Air Force Base, Arizona, June 4, 2020. The QF-16 was regenerated to flying status after being stored at the 309th Aerospace Maintenance and Regeneration Group to Boeing to become a full-scale aerial target. (U.S. Air Force photo by Airman 1st Class Jacob T. Stephens)

Tesla to Slash Headcount at Nevada Gigafactory by 75%

BEIJING/TOKYO (Reuters) – U.S. electric carmaker Tesla Inc <TSLA> plans to slash on-site staff at its Nevada battery plant by around 75% due to the coronavirus pandemic, the local county manager said on Thursday.

The move comes after its Japanese battery partner Panasonic Corp <6752.T> said it would scale down operations at the Nevada factory this week before closing it for 14 days.

The factory produces electric motors and battery packs for Tesla’s popular Model 3 sedans.

“Tesla has informed us that the Gigafactory in Storey County is reducing on-site staff by roughly 75% in the coming days,” Austin Osborne said in a post on the county’s website.

No further details were available and it was not clear how many employees work in the factory. Tesla did not immediately respond to a Reuters request for comment.

The Reno Gazette Journal, which earlier reported the planned suspension, said Panasonic has about 3,500 employees at the Nevada plant.

Tesla said last week it would temporarily suspend production at its vehicle factory in San Francisco Bay Area from end of March 23, as well as at its New York solar roof tile factory.

However, Tesla CEO Elon Musk said the company will reopen the New York plant “as soon as humanly possible” to manufacture ventilators for coronavirus patients.

Two employees of Tesla have tested positive for coronavirus but have been working from home for the past two weeks and had not been symptomatic at work, Tesla said in an email to employees on Thursday. It did not disclose which unit or at what location the employees work.

(Reporting by Yilei Sun and Makiko Yamazaki; Editing by Miyoung Kim and Himani Sarkar)

British Airways Franchise Partner SUN-AIR Selects Garmin ADS-B solution for Dornier 328 aircraft

Garmin is pleased to announce European Aviation Safety Agency (EASA) approval of an Automatic Dependent Surveillance-Broadcast (ADS-B) solution for the Dornier 328 jet and turboprop aircraft. SUN-AIR Aviation Group has selected a Garmin ADS-B solution for their entire fleet of 18 Dornier 328 aircraft that utilizes a Supplemental Type Certificate (STC) and “plug and play” installation kit from their certification partner Scandinavian Avionics, headquarters of The SA Group. This cost-effective Garmin ADS-B upgrade provides operators with an economical solution for complying with the ADS-B mandate in Europe.

“Garmin continues to lead the industry on a global scale with a broad range of ADS-B solutions that span all segments of aviation, including a wide-range of commercial, defense, regional and business aircraft,” said Carl Wolf, vice president of aviation sales and marketing. “We are thrilled to provide SUN-AIR with a technology solution that is cost-effective, easy to install and keeps them flying so they can continue to serve their valued customers.” 

The ADS-B upgrade for the Dornier 328 is comprised of a pair of GTX 3000 ADS-B transponders and a GPS 3000, a high-integrity SBAS/WAAS position source, and a complete installation kit comprised of a pre-wired shelf, wire harness and consumption material. This solution is designed to easily interface to existing equipment on board the aircraft, reducing installation time and lowering the overall cost of compliance. Together, the GTX 3000 and GPS 3000 serve as a rugged, standalone ADS-B Out solution that meets the stringent demands of transport category aircraft around the globe.

“This Garmin ADS-B solution is an ideal upgrade for our aircraft because the installation design supports an abbreviated maintenance visit,” Kristoffer Sundberg, CEO SUN-AIR airlines. “For our workhorse fleet of aircraft, efficiency and minimal aircraft downtime are key, and Garmin and Scandinavian Avionics have addressed this with a straightforward upgrade.” 

Designed by Scandinavian Avionics, the STC and slide-in rack contains all of the necessary Garmin equipment and paperwork for the ADS-B Out solution. Scandinavian Avionics has completed the initial installation on a prototype aircraft and expects to complete the upgrade on the entire SUN-AIR fleet in the coming months. 

“Alongside Garmin, we have designed this STC so that Dornier 328 operators can take advantage of the installation efficiencies this upgrade affords,” said Michael Truelsen, CEO Scandinavian Avionics. “We look forward to continuing to work with Garmin to expand the aircraft eligibility list for this all-in-one, turn-key solution.” 

The GTX 3000 and GPS 3000 Garmin ADS-B Out solution for the Dornier 328 has received EASA approval and is available immediately. For additional information regarding the STC, contact SUN-AIR or Scandinavian Avionics. Visit www.garmin.com/aviation for additional information.

Air New Zealand Suspends 2020 Earnings Guidance

Due to increased uncertainty surrounding the duration and scale of the Covid-19 outbreak, Air New Zealand has today announced that it will be withdrawing the full year 2020 earnings guidance it issued to the market on 24 February 2020 and reconfirmed at its interim results announcement on 27 February 2020.

Air New Zealand has taken numerous steps to mitigate the impact of reduced demand resulting from Covid-19, including reducing capacity on its Asia, Tasman and Domestic networks, redeploying its fuel efficient 787 Dreamliner fleet to drive operational efficiencies and using tactical pricing to stimulate demand on the impacted sectors. However, the airline now believes that the financial impact is likely to be more significant than previously estimated and with the situation evolving at such a rapid pace, the airline is not in a position to provide an earnings outlook to the market at this time. An update on earnings expectations will be provided when appropriate.

Over the course of the past week the airline has seen additional softness in demand with a decline in bookings across its network. The further spread of Covid-19 to countries outside of China, including New Zealand, has driven a downward shift in demand.

Chief Executive Officer Greg Foran says that it is increasingly clear that Covid-19 has created an unprecedented situation and it is difficult to predict future demand patterns.

“We have been continuously monitoring bookings and in recent days have seen a further decline which coincides with media coverage of the spread of Covid-19 to most countries on our network as well as here in New Zealand,” says Mr Foran.

In response the airline has implemented further capacity reductions to its network, which include extending the suspension of its Shanghai service through to the end of April, and additional consolidation of services across the Tasman, Pacific Islands and Domestic network in March and April.

As a result of these actions, Air New Zealand has reduced total capacity into Asia by 26 percent, and total overall network capacity by approximately 10 percent since the outbreak of Covid-19 started.

Like the vast majority of its industry peers, the airline is also pursuing a range of mitigations in response to the swift decline of demand. These include the deferral of non-urgent capital spend and non-critical business activity across operational and corporate functions.

Chief Executive Officer Greg Foran has voluntarily offered to reduce his base pay of $1.65 million by approximately 15% ($250,000) with the support of the Board, and Air New Zealand’s Executive team will extend their salary freeze that has been in place since May 2019. On top of this, the airline has implemented a hiring freeze for all roles that are non-critical and will offer operational staff the option to take unpaid leave in addition to managing annual leave balances.

“Air New Zealand is a strong and resilient business operated by a world-class team with deep experience having navigated prior shocks to our business and industry. While we have already made swift adjustments to our operations, we are prepared to take further actions to address the ongoing demand impact of Covid-19,” says Mr Foran.

Summary of Air New Zealand’s response since the Covid-19 outbreak

  • Overall capacity reductions of approximately 10% across the network, including:
    – Asia capacity reduction of 26% through June, including extension of Shanghai route suspension through April 
    – Tasman capacity reductions of 7% through June 
    – Pacific Islands capacity reductions of 6% through June 
    – Reductions across the Domestic network of approximately 4%, with a 10% to 15% reduction in March and April
  • Various labour initiatives including a voluntary reduction in CEO pay, a hiring freeze for all non-critical roles and voluntary unpaid leave for operational staff
  • Deferral of non-urgent capital spend and any non-critical business activity

Airbus & Texas DPS Explain Large-Scale Search and Rescue Operations

Article by Belén Morant, Media: Airbus Helicopters; Jonny Carroll; DTX Media

Tim Ochsner, Chief Pilot of the Texas Department of Public Safety (DPS), explains the key to the success of the SAREX (search and rescue exercise)

When it comes to offering an adequate, effective and rapid response to natural disasters there’s no room for improvisation, particularly when a number of different agencies are involved. Tim Ochsner, Chief Pilot of the Texas Department of Public Safety (DPS), explains the key to the success of the SAREX (search and rescue exercise) conducted by more than 20 different agencies since 2015, which has now established itself as the benchmark for rescue training in the US.

How did the need arise to organise rescue training on such a large scale as SAREX?

In 2011, the state of Texas had huge problems with wildfires, and the following years we had two major floods. All the agencies equipped with aerial capability for these kinds of situations were involved: the Army with their Lakotas, our local EMS agencies, the Austin Police Department with their H125 and San Antonio Police Department with an H125 as well…

We all quickly formed a team and worked together out of necessity due to the flooding. We didn’t have time to set much up – we just did it.

After those events, we thought we needed to come up with a better plan for training, establish a communication plan and standard operating procedures. We had to establish a cooperation framework that was independent to the parties we tend to work with, because at the end of the day these things can change. That’s how the SAREX exercise came about.

Click the link for the full story, more pictures, and a video! https://www.airbus.com/newsroom/stories/sarex.html

Bombardier Strengthens Support Network in Europe with London Biggin Hill Service Centre Expansion

  • Expansion at Bombardier’s London Biggin Hill service centre will double the facility’s footprint to nearly 250,000 square feet
  • Increased capacity will benefit more operators of Bombardier business aircraft, including the new Global 7500 jet

London Biggin Hill Airport, February 5, 2020 – Bombardier proudly announced today the expansion of its London Biggin Hill service centre with the construction of a new and larger facility nearing 250,000 square feet (approximately 23,225 square metres) to replace its existing hangars. Scheduled to be operational by mid-2022, the new service centre will provide customers in the region with extended maintenance support and reinforce Bombardier’s customer service experience in Europe.

The facility will provide the space and flexibility to offer a full range of maintenance and refurbishment services on Bombardier’s vast portfolio of products, and has the capacity to accommodate as many as 14 Global 7500 aircraft at the same time. The expansion will introduce sought-after capabilities and state-of-the-art installations, such as component painting and interior refurbishment capabilities, component repair and overhaul workshops and training rooms. The site will also ensure a quick response to its customers’ repair needs with the integration of a brand-new parts depot. Over the next several years, this significant expansion will bring the facility’s workforce to more than 250 employees and beyond to meet expanding demand.

“With the expansion of the London Biggin Hill service centre, Bombardier is taking another step in showing its unwavering commitment to providing customers with industry-leading services on a global scale, and the OEM expertise they rightfully deserve,” said Jean-Christophe Gallagher, Vice President and General Manager, Customer Experience, Bombardier Aviation. “Europe continues to be a strong market for business aviation, and we’re glad to show our commitment to our customers with this important investment in the region.”

Bombardier’s London Biggin Hill service centre was inaugurated in 2017 and offers tip-to-tail heavy maintenance capabilities on LearjetChallenger and Global families of aircraft. The site is fully equipped to perform scheduled and unscheduled maintenance, modifications and avionics installations, and paint repair services. In 2019, the service centre added enhanced interior repair and refurbishment activities.

“The expansion of Bombardier’s service centre and the enhancement of its service and maintenance capabilities is a testament to the dynamism and attractiveness of the Biggin Hill Airport,” said Robert Walters, Commercial Director of London Biggin Hill Airport. “Bombardier has been a tremendous partner and, with this announcement, demonstrates its strong commitment to the continued growth of our world-class aviation hub.”

This expansion comes on the heels of numerous announcements in Bombardier’s vast support network, including the announcements of a new service centre at Miami-Opa Locka Executive Airport and of an expanded Singapore service centre, the recent addition of two U.S. line maintenance stations in Teterboro and Van Nuys, and the expansion of the Mobile Response Team (MRT) with a new Challenger 300 aircraft based in Munich, Germany.

Wheels Up and Delta Close Groundbreaking Transaction Combining Delta Private Jets with Wheels Up

  • With this expanded private fleet and access to Delta’s global network, Wheels Up is strategically positioned to fulfill every travel need of its now 8,000+ members and customers.

Delta and Wheels Up, the leading brand in private aviation, have closed on a previously announced groundbreaking transaction and partnership agreement.

The closing officially combines Delta Private Jets (DPJ) with Wheels Up, pairing Wheels Up’s membership programs, innovative digital platform and world-class lifestyle experiences with Delta Private Jets’ renowned reliability, safety, service and scale. The combination creates one of the world’s largest owned and managed fleets of nearly 200 private aircraft, ranging from the King Air 350i to large-cabin jets. With this expanded private fleet and access to Delta’s global network, Wheels Up is strategically positioned to fulfill every travel need of its now 8,000+ members and customers.

In the weeks ahead, Wheels Up and Delta will be communicating directly with customers to roll out cross-platform partnership benefits and other program features that cannot be found anywhere else within the private aviation industry.

“Together, Wheels Up and Delta will democratize the industry to make private flying and the private flying lifestyle accessible to significantly more individuals and businesses around the world,” said Wheels Up Founder and CEO Kenny Dichter. “By adding Delta Private Jets and partnering with Delta, our membership platform has evolved to one that can fulfill a vast range of flight needs on a very large scale.”

As part of this transaction Delta’s Chief Operating Officer, Gil West, has joined the Wheels Up Board of Directors.

“This innovative partnership is the latest step in Delta’s efforts to transform travel into a part of the journey to look forward to,” West said. “Bringing together the Delta brand, DPJ’s renowned reliability and scale, and the exceptional experiences that are the hallmark of Wheels Up, is opening up a whole new world of travel options to more travelers than ever before.”

The Wheels Up and Delta Private Jets teams will be working together to ensure a seamless transition for all DPJ employees and customers. DPJ employees will continue to operate out of their current location in Cincinnati. 

“We are thrilled to welcome the talented and passionate Delta Private Jets employees into the Wheels Up family and for Gil West to join our Board of Directors.” said Dichter.

Over the next year, Wheels Up and Delta will continue introducing exciting cross-platform benefits and features, all designed to add more value for their members and customers.

Financial terms of the transaction will not be disclosed, and there is no expected impact to Delta’s 2020 financial guidance.

Latécoère Enters Into Agreement to Acquire Bombardier’s Electrical Wiring Interconnection System Business in Querétaro

  • Latécoère to acquire EWIS activities and related assets as well as a skilled workforce specializing in harnessing and electrical sub-assemblies in Querétaro
  • Agreement promotes long-term relationship with Latécoère and supports the optimization of Bombardier Aviation 
  • Bombardier continues to produce major structures at its high-tech main campus in Querétaro, including the aft fuselage for the Global family of jets

Latécoère and Bombardier announced that the companies have entered into a definitive agreement, whereby Latécoère will acquire Bombardier’s electrical wiring interconnection system (EWIS) assets in Querétaro, Mexico. The two companies also concluded a long-term supply agreement that will see Latécoère supply Bombardier with electrical wiring interconnection systems.

The transaction is subject to customary conditions and approvals and is expected to close in the first half of 2020.

Approximately 700 skilled employees are dedicated to the manufacture of EWIS at Bombardier’s facility in Querétaro. Under the long-term supply agreement, Latécoère will continue to supply the EWIS for all Bombardier Aviation platforms, including GlobalChallenger and Learjet aircraft from the current location to support Bombardier’s requirements. The annual turnover of the business is anticipated to be around USD 80 million.

“This acquisition reflects our willingness to emerge as a leading player in the global consolidation movement in the aeronautics sector,” said Yannick Assouad, CEO of Latécoère. “We keep deploying our manufacturing footprint on an international scale with a strong desire to strengthen our presence in the areas closest to our customers,” she added.

“This agreement exemplifies Bombardier’s focus on streamlining its activities to foster a strong and efficient aviation franchise,” said Paul Sislian, Chief Operating Officer, Bombardier Aviation. “With Latécoère’s reputation for excellence, this new partnership will result in a winning combination for both our companies.”

Under the terms of the transaction, Latécoère will pay Bombardier a cash consideration of USD 50 million. The transaction further supports Bombardier Aviation’s transformation and sharpens the company’s focus on its core manufacturing capabilities. The skilled employees who manufacture the main harnesses and electrical subassemblies in Querétaro will bring years of experience and value to Latécoère. The sale will not impact the remainder of Bombardier’s operations at its Querétaro site, which will continue to produce major structures for Bombardier aircraft, such as the aft fuselage for the Globalfamily of business aircraft – including the company’s flagship Global 7500 jet – the most complex aircraft component manufactured in Mexico.

Jet Grounding and Delays Overshadow Dubai Airshow

FILE PHOTO: Emirates Airline Boeing 777 planes at are seen Dubai International Airport in Dubai

DUBAI (Reuters) – An eight-month crisis over the grounding of Boeing’s 737 MAX jets and widespread industrial delays are setting an unpredictable backdrop to next week’s Dubai Airshow, with some airlines reviewing fleet plans even as others look for bargains.

The biennial civil and military expo is a major showcase for wares from jumbo jets to military drones but faces growing questions over demand and the capability of overstretched suppliers, delegates arriving for the Nov. 17-21 event said.

Top of their agenda will be the worldwide grounding of the 737 MAX in the wake of two deadly crashes.

Investors who have pushed up Boeing <BA> shares believe the planemaker is turning a corner after the eight month grounding, with the company predicting commercial flights in January. But it also faces a logjam of undelivered jets that could take 1-2 years to unwind.

State-owned flydubai expects its fleet will now shrink by a third this year, highlighting the cost of the grounding for the biggest MAX customer outside the United States. “Flydubai has very big ambitions … given the scale of those ambitions, there’s little they can do but wait and watch, like everyone else,” said Teal Group analyst Richard Aboulafia.

Boeing lost one potential MAX customer earlier this year as Saudi budget airline flyadeal ditched a provisional order.

Experts say airline frustrations with plane and engine makers could also disrupt plans by the world’s largest jetmakers pushing for order endorsements. The Middle East’s largest aerospace event will give Airbus <EADSY> and Boeing a chance to sit with some of their top customers who have threatened to walk from billions in deals.

The planemakers are struggling to deliver aircraft on time, forcing airlines to delay expansion plans, while engines on some jets are consistently causing issues for carriers.

“This seems to be a systemic issue across the board,” said Novus Aviation Capital Managing Director Mounir Kuzbari.

“As a result, we see stress on the relationship between airlines and the plane and engine makers.” Dubai’s Emirates, by far the region’s biggest airline, has issued a stern warning to plane and engine makers. It will no longer take delivery of aircraft that do not meet performance expectations, raising doubts over $35 billion in pending orders.

Airbus, Boeing and engine makers will be looking to allay concerns as they finalise jet sales with Emirates, which is also looking at reducing an order for the delayed Boeing 777X.

Airbus is seen close to a final order for A330neo and A350 jets while Boeing aims to salvage a provisional order for 787s.

GULF PRESSURE

Air Arabia could, however, steal the show with a planned order of up to 120 Airbus jets, industry sources say.

Kuwait’s Jazeera Airways is in negotiations with Airbus and Boeing for around two dozen airplanes.

Past editions of Dubai’s premier trade event have featured blockbuster deals, often led by Emirates as Gulf carriers redrew the aviation map around their ‘super-connector’ hubs.

But the Gulf hub model is increasingly under pressure as the once-rapid growth of the region’s biggest airlines slows.

“The market continues to be weak for all airlines in the region; we should see a further 2-3% reduction in passenger numbers for the full year,” said Diogenis Papiomytis, Frost & Sullivan’s Global Program Director for Commercial Aviation.

Middle East military leaders touring the displays will try to gauge whether they are on the cusp of another regional splurge on weapons after an escalation in Gulf tensions.

A series of attacks over the summer has highlighted potential security gaps among some of the world’s top defence spenders who now increasingly buy from China and Russia.

(Reporting by Alexander Cornwell, Tim Hepher, Ankit Ajmera, Stanley Carvalho; Editing by Mark Potter)

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