September 28, 2017 - No. 076 In This Issue Why a Crucial FCC Vote Could Cause Headaches for Elon Musk's SpaceX Boeing invests $33 million in joint venture with Chinese firm Duncan Aviation's First Honeywell TFE731 CZI Event: One Build, One Run, One Exceptional Engine Petition Highlights U.S. Government Classification Of Aviation Mechanics Silverhawk Aviation Joins the Paragon Network Air Canada, AAR Sign 5-Year MRO Contract with Air Canada for Boeing 767 Maintenance Aerostar Takes Next Step to Expand Civil Aircraft MRO Capacity and Prepares for First Airbus A320NEO Australia Issues Airworthiness Bulletin Affirming Parts Recovery Privileges L.A. Electric Plane Startup Working with EasyJet to Develop Electric Jetliners Thales bets on China's appetite for simulators Why a Crucial FCC Vote Could Cause Headaches for Elon Musk's SpaceX The Federal Communications Commission (FCC) will today vote on an order that could cause trouble for the satellite plans of Elon Musk's SpaceX by threatening their economic viability. SpaceX wants to create a massive, $10 billion constellation of more than 4,400 communications satellites that would beam internet coverage around the world. However, it's not the only company racing to throw thousands of communications satellites into the heavens, with key competitors including OneWeb, Telesat and Boeing. It's critical that these systems don't conflict with one another, nor with the satellites that are already up there, so regulators have to pay close attention to issues around the power of the satellite's transmissions and the radio spectrum that they use to send and receive information. SpaceX intends to start its satellite operations over the U.S. before spreading worldwide. However, that raises the question of whose rules it needs to follow: those of the U.S. regulator, or of global regulators. Musk's company wants the FCC to be its go-to regulator for its operations around the world. However, the FCC's proposals state that, outside the U.S., frequency coordination and power issues really need to be handled by the International Telecommunication Union (ITU), an agency of the United Nations. That would have a major impact on SpaceX, which has been speeding up its satellite launch schedule in order to gain an edge over its rivals domestically. Under FCC rules, the first company to launch its system in the U.S. gets to choose which frequencies it would like to use. SpaceX could win that race if it beats Softbank-backed OneWeb to the punch. However, the ITU also has a "first come first served" system, and Telesat and OneWeb have already won priority ITU rights for their own satellites in different parts of the world. According to Bloomberg, the FCC is likely to approve the proposals on Tuesday, as chairman Ajit Pai is in favor. Forced to jockey for position with rivals who are already licensed outside the U.S., SpaceX might now have to restrict the power and frequencies of its system. Satellite industry consultant Tim Farrar told the publication that this could make it "very difficult or SpaceX to provide an economically viable service outside the U.S." http://fortune.com/2017/09/26/fcc-vote-elon-musk-spacex-satellites/ Back to Top Boeing invests $33 million in joint venture with Chinese firm The giant US aircraft manufacturing company Boeing and the Commercial Aircraft Corp. of China(COMAC) signed a joint venture agreement and also unveiled Boeing's first overseas completion and delivery center. The facility will be in Zhoushan in the east of China in Zhejiang province. The joint venture will have registered capital of $55 million with Boeing having a 60 percent share through its investment of $33 million. COMAC has a 40 percent with an investment of $22 million. The project will oversee Boeing's new 737 completion plant in China. Construction began in early May and will include a delivery center that will be owned by Boeing. The facility will be able to carry out tasks such as cabin installation, painting, flight testing and maintenance. Boeing Corp. is a US-based global corporation that designs, manufactures, and sells airplanes, rotorcraft, rockets, and satellites throughout the world. It also leases items and provides product support. It is the second largest defense contractor in the world in 2015. By dollar value it is the largest US exporter. Its stock is part of the Dow Jones average. In 2016 Boeing recorded sales of $94.6 billion. COMAC is a Chinese state-owned aerospace manufacturer that was established in 2008 and is headquartered in Pudong, Shanghai. COMAC designs and constructs large passenger aircraft that have a capacity of over 150 passengers. China is attempting to lessen reliance on Boeing and France's Airbus. The C919 had its maiden flight in 2017. It can seat up to 168 passengers and is meant to compete with the single aisle jet market that is now dominated by the Airbus A320 and Boeing's 737. COMAC said that completion tasks with would be carried out by both COMAC and Boeing employees. COMAC said the project would broaden cooperation between it and international players and would optimize the environment for the growth of the civil aircraft industry in China. President of COMAC, He Dongfeng said:: "Zhoushan and Seattle are located at the two sides of the Pacific Ocean. In the past, most people living in Seattle didn't know about Zhoushan, but now they come to work here. Our completion center has linked us together." Boeing expects the first stage of construction at the site to be finished and will go into operation by May 2018. Boeing hopes to deliver the first single-aisle B737 MAX plane by the end of 2018 to a domestic Chinese airline. Boeing expects to deliver all the aircraft finished at Zhoushan to be delivered to Chinese customers. The maximum annual production will be 100 planes per year. Lin Zhijie, an aviation industry analyst said: "One-fifth of narrow-body aircraft in the world are delivered to China. It is a huge market Boeing hopes to seize." France's Airbus already has a final assembly plant at Tianjin established in 2008. Airbus has boosted its market share in China from 34 to 47 since it was first started. Boeing is playing catch up. As Lin put it: "Boeing is now making more efforts by establishing its first overseas completion and delivery center in Zhoushan, in order to seize the strong market potential in China and strengthen its cooperation with Chinese aviation industry players." http://www.digitaljournal.com/business/boeing-invests-33-million-in-joint-venture-with-chinese-firm/article/503600 Back to Top Duncan Aviation's First Honeywell TFE731 CZI Event: One Build, One Run, One Exceptional Engine LINCOLN, NEB. - After performing its first official CZI (Core Zone Inspection) on a Honeywell TFE731 engine at its Turbine Engine Overhaul Facility in Lincoln, Nebraska, Duncan Aviation is pleased to announce the engine has been reinstalled on a Bombardier Learjet 45 operated by Jet Linx Omaha and that it is showing impressive performance margins after only one build and one test cell run. The report received from the Test Cell Certification run performed by the OEM, resulted in 158 degrees ITT margin and 971 RPM N2 Margin, or 263% and 162% more than the maintenance manual requirements. The test cell results did not come as a surprise to Mike Bernholtz, Duncan Aviation Turbine Engine Service Sales Rep. "The CZI process is not new to us. We have been in partnership with the OEM on core inspections and maintenance for decades. Because of our solid history of quality and pride of craftsmanship, engines just don't come back to us after they are released back to the customer in order to address additional maintenance or service issues." James Prater, Duncan Aviation Manager of Turbine Engine Services, believes the impressive CZI margin numbers are simply another testament to the service quality their customers have experienced for years. "This was our first CZI. We built it once. It was tested once and delivered on the first try with performance margins that not only exceeded the maintenance manual requirements, but also exceeded nearly all of the engine's new production performance parameters." Duncan Aviation's second CZI is in process now and scheduled to deliver in October. There are several more CZI events on Duncan Aviation's schedule for the rest of the year and into 2018. Duncan Aviation is also in the process of an engine facility expansion with a new test cell and control room. The test cell is under construction and is scheduled to be fully operational by the end of 2017. For more information about Duncan Aviation, visit Duncan Aviation at booth #C9125 during this year's NBAA convention from October 10-12, in Las Vegas, Nevada, or watch for announcements at www.DuncanAviation.aero/nbaa. About Duncan Aviation Duncan Aviation is an aircraft service provider supporting the aviation needs of government and business operators and other service providers. Services include major and minor airframe inspections, engine maintenance, major retrofits for cabin and cockpit systems, full paint and interior services and preowned aircraft sales and acquisitions. Duncan Aviation also has international aircraft components solutions experts available 24/7/365 at +1 402.475.4125 who can handle any aircraft system problem with immediate exchanges, rotables, loaners or avionics/instrument/accessory repairs and overhauls. Complete service facilities are located in Lincoln, Neb., and Battle Creek, Mich. Additional locations include Provo, Utah, and more than 20 other facilities strategically located throughout the United States to provide customers with local support and the quickest response to avionics, engine and airframe Aircraft On Ground (AOG) situations. For more information about any of Duncan Aviation's services, call +1 402.475.2611 or visit www.DuncanAviation.aero. http://www.aviationpros.com/press_release/12370810/duncan-aviations-first-honeywell-tfe731- czi-event-one-build-one-run-one-exceptional-engine Back to Top Petition Highlights U.S. Government Classification Of Aviation Mechanics George Orwell said, "Myths which are believed in tend to become true." A long-held myth was fueled by a recent online petition-supported by nearly 20,000 individuals- questioning the U.S. Department of Labor's classification of aviation maintenance professionals as "unskilled" labor. The petition was subsequently withdrawn after the author was "made aware that the Department of Labor has dropped the classification system." In reality, the department hasn't used the labels "skilled," "semi-skilled," or "unskilled" since the 1980s. Justin Madden, legislative affairs director for the Aircraft Mechanics Fraternal Association, conducted extensive research on behalf of his constituency and found that usage of the terms is largely limited to the Social Security Administration, where aircraft mechanics are considered "skilled" labor for purposes of disability determinations. "The [Aircraft Mechanics Fraternal Association] will not stand idly by when our significance is challenged; fortunately, thisparticular perceived insult is a misconception," said Madden. While aviation maintenance professionals are not defined as "unskilled" by the administration, Madden contends that there are concerns with the classification system framework and how the government slices and dices aviation maintenance occupations. The Standard Occupational Classification System is the federal government's tool for organizing and categorizing every job in the U.S. The Bureau of Labor Statistics creates and disseminates an outlook for each occupation identified by the system. The reach of the data is vast. Policy makers, researchers and federal and state agencies use outlooks to analyze workforce needs, allocate funding and educate job seekers on career options. For example, the bureau's outlook handbook is the basis for Government Accountability Office reports, many state student aid and grant-funding programs, and federal statistical analyses published by O*NET Online-the foremost U.S. resource for career exploration. Currently, certificated and non-certificated mechanics are lumped into one occupation, while avionics technicians-whether they have a mechanic's certificate or not-are considered a separate occupation all together. Madden argues that classifying certificated mechanics along with non- certificated technicians skews data by constraining a diverse class of professionals into a basic, single box, with a segment carved out for those that work primarily on avionics. "The impending shortage of [aviation maintenance technicians] is being concealed because of improper statistics based on a flawed classification system; this defect is causing undue harm to the craft," he argues. Last year, a group of 10 aviation trade associations asked the standard occupational classification committee to consider changes to its organization of aviation maintenance occupations. The framework is updated once every 10 years; the next edition is scheduled for publication in 2018. http://www.mro-network.com/safety-regulatory/petition-highlights-us-government-classification- aviation-mechanics Back to Top Silverhawk Aviation Joins the Paragon Network Silverhawk Aviation at Lincoln Airport (KLNK) in Lincoln, NE is now an elite member of the Paragon Network. Silverhawk Aviation is a premier FBO located in Lincoln, NE at Lincoln Airport (KLNK). Their newly remodeled state-of-the-art FBO features 24-hour service, a private VIP lounge, heated hangars, on- site rental cars, and more. Silverhawk Aviation began in 1991 as a small charter company with one aircraft and one pilot. They are now a full-service FBO with a FAA-certified repair station specializing in general aviation maintenance, repair, and upgrades, as well as a robust charter fleet. "Silverhawk Aviation is proud to be a part of the Paragon Network," stated Will Zimdars, Director of FBO Services for Silverhawk Aviation. "This is a huge opportunity for our business. I am looking forward to using the resources The Network provides to help us grow and gain national exposure. We guarantee our current and future guests an exclusive customer service experience each and every time they visit us in Lincoln. Our team of NATA Safety 1st Certified line professionals excel in servicing all GA trips from quick turns and tech stops to extended stay visits. People matter. If it's important to our customers, it is important to us. Joining the Paragon Network is the best way we can continue to grow and service our clients." http://www.aviationpros.com/press_release/12370735/silverhawk-aviation-joins-the-paragon- network Back to Top Air Canada, AAR Sign 5-Year MRO Contract with Air Canada for Boeing 767 Maintenance Global aviation services leader AAR (NYSE: AIR) and Air Canada (TSX: AC) have announced they have signed a five-year agreement to provide airframe maintenance for the airline´s fleet of 34 Boeing 767 at AAR´s Miami MRO facility, the company said. The contract will commence later this year and ramp up over three months. Air Canada´s Senior Vice President, Operations, Rich Steer, added, "We have been pleased with the work performed by AAR on Air Canada´s fleet. This contract assures Air Canada of a quality solution for our Boeing 767 maintenance needs through AAR´s extensive and proven capabilities in this field." In addition to Miami, AAR´s award-winning network includes airframe maintenance facilities in Indianapolis, Indiana; Oklahoma City, Oklahoma; Duluth, Minnesota, Rockford, Illinois; Trois- Rivières, Quebéc; and Windsor, Ontario, as well as component repair facilities in New York and Amsterdam; and landing gear services in Miami. Across these sites, AAR provides industry maintenance, repair and overhaul for regional, narrow-body and wide-body aircraft operators. AAR is the largest MRO services provider in the Americas and third worldwide. AAR is a global aftermarket solutions company that employs more than 5,000 people in over 20 countries. Based in Wood Dale, Illinois, AAR provides aviation services to commercial and government customers in over 100 countries through two operating segments: Aviation Services and Expeditionary Services. AAR´s Aviation Services include inventory management; parts supply; OEM parts distribution; aircraft maintenance, repair and overhaul; and component repair. AAR´s Expeditionary Services include airlift operations; mobility systems; and command and control centers in support of military and humanitarian missions. More information can be found at www.aarcorp.com. Air Canada is Canada´s largest domestic and international airline serving more than 200 airports on six continents. Canada´s flag carrier is among the 20 largest airlines in the world and in 2016 served close to 45 million customers. Air Canada provides scheduled passenger service directly to 64 airports in Canada, 57 in the United States and 96 in Europe, the Middle East, Africa, Asia, Australia, the Caribbean, Mexico, Central America and South America. Air Canada is a founding member of Star Alliance, the world´s most comprehensive air transportation network serving 1,300 airports in 191 countries. Air Canada is the only international network carrier in North America to receive a Four-Star ranking according to independent U.K. research firm Skytrax, which also named Air Canada the 2017 Best Airline in North America. For more information, visit: www.aircanada.com, follow @AirCanada on Twitter and join Air Canada on Facebook. http://www.financial-news.co.uk/43673/2017/09/air-canada-aar-sign-5-year-mro-contract-with- air-canada/ Back to Top Aerostar Takes Next Step to Expand Civil Aircraft MRO Capacity and Prepares for First Airbus A320NEO Base Maintenance Visit Aerostar S.A - the leading Romanian aerospace company - is exhibiting at MRO Europe (October 3- 5) with two senior company representatives - Mr. Ovidiu Buhai Director Aviation MRO & Upgrades Division, and Mr. Cristian Korenschi, Civil MRO-Business Development - in attendance. Aerostar comes to MRO Europe on the back its next step to expand its civil aircraft MRO capacity. It has signed a 49-year lease agreement with the local authorities at Iasi in northeast Romania for 16,000 sq.m. of land at Iasi International Airport to enable it to build a new MRO facility. This new 4-bay MRO hangar, which is expected to be open for business in the summer of 2019, will increase Aerostar's throughput of Airbus A320 family and Boeing 737 Classic and New Generation overhauls by up to 40 percent. The planned new facility lies 130km north of Aerostar's existing business operations at Bacau where two dedicated hangars provide six-seven aircraft bays which are invariably full during the peak maintenance periods. During 2016 a total of 80 aircraft completed 'C' and 'D' checks at Bacau and so far in 2017 53 aircraft have been maintained. Since the company moved into commercial aviation MRO activities 13 years ago over 500 aircraft from some 50 airlines have been overhauled at Bacau. Ovidiu Buhai stated that overhaul activity on Airbus A320 family aircraft is steadily increasing and added: "In April 2018 we will overhaul our first A320NEO and we believe this to be the first contracted overhaul of an A320NEO in Europe. This follows a period of theoretical and practical training to extend the scope of our EASA Part 145 approval which will be in place by 1 April next year". Aerostar also announced today two further developments: · Aerostar's approvals have been boosted by the awarding of FAA Air Agency Certificate No 4BRY 586 C on 20 September 2017. This will allow Aerostar to bid for overhaul work from customers whose aircraft are leased from US-based lessors and under FAA jurisdiction. · Aerostar has also developed its capability for aircraft cabin interior items using SATTO Rapid Repair Systems on commercial aircraft and which is fully compliant with European Union REACH (Regulation, Evaluation, Authorisation and Restriction of Chemicals) standards and Material Safety Data Sheet (MSDS) requirements. Issued on behalf of Aerostar S.A. by Dorway Public Relations. Contact: David Dorman. Tel +44 (0) 1582 488336; Mobile: +44 (7831 135526) http://www.aviationpros.com/press_release/12370762/aerostar-takes-next-step-to-expand-civil- aircraft-mro-capacity-and-prepares-for-first-airbus-a320neo-base-maintenance-visit Back to Top Australia Issues Airworthiness Bulletin Affirming Parts Recovery Privileges The Australian Civil Aviation Safety Authority recently issued guidance on utilization of components removed or salvaged from another aircraft. The bulletin offers up recommendations for making continue-in-service determinations. Under Australian regulations, that determination does not require issuance of a maintenance release, provided of course that no maintenance is required to make the article serviceable. The privilege to conduct such an assessment was recently questioned in the U.S. In 2015, the Aeronautical Repair Station Association requested clarification on whether the continue-in-service determination constitutes an "inspection," therefore requiring a maintenance release. Issues arose when repair stations were rated to perform work on the top assembly, but not for each individual sub-article. In its response, the FAA agreed that a rating for the "top assembly" signifies qualification to maintain all "sub-articles." The agency concluded that "repair stations can implement procedures to perform inspections, tests and other maintenance in compliance with Part 43 on sub-articles and place them in stock for future use." European Aviation Safety Agency (EASA) regulations provide for the performance of maintenance and installation of recovered parts without issuing return-to-service documentation so long as the repair station has the appropriate procedures in place. Under European regulations, "when an organization maintains a component for its own use, an EASA Form 1 may not be necessary depending upon the organization's internal release procedures defined in the exposition." The Australian bulletin reinforces the privilege for organizations holding a Civil Aviation Safety Authority certificate and falls in line with the majority of international authorities that support the practice so long as appropriate procedures are in place. http://www.mro-network.com/safety-regulatory/australia-issues-airworthiness-bulletin-affirming- parts-recovery-privileges Back to Top L.A. Electric Plane Startup Working with EasyJet to Develop Electric Jetliners Sept. 27--European low-cost airline EasyJet said it is working with Wright Electric, a Los Angeles electric plane startup that plans to eventually produce all-electric commercial jets. It's a sign of the aviation industry's increasing interest in electric-powered planes. The collaboration doesn't involve any financial investment or promises of future plane orders on EasyJet's part. Rather, the airline is providing information to Wright Electric about what needs the startup should address when designing and building a plane for the commercial passenger market. For example, Wright Electric Chief Executive Jeff Engler said, discussing route structures with EasyJet has helped his company figure out the minimum distance an all-electric airliner would need to fly. Talks with maintenance staff enabled Wright Electric to understand how cargo enters and exits a plane and how high and wide the cargo doors need to be. "Working with partners like this has been incredible," Engler said. "If you think about making any new product ... you want to make sure it's designed as specifically for the market as possible." Wright Electric has already designed and flown a two-seat electric plane and plans to fly its second plane next year, with a larger, commercial-scale aircraft potentially by 2021. The 10-person startup was founded last year and has received funding from groups such as Silicon Valley accelerator Y Combinator. Engler said Wright Electric's goal is to have a plane certified by the Federal Aviation Administration within a decade. Companies and government agencies have been increasingly building small, experimental planes powered by electricity, intrigued by the promise of quieter and greener flights. But the limitations of battery technology have largely limited these tests to smaller planes. Airplanes need lots of lithium-ion batteries to reach a significant range, and adding batteries increases an aircraft's weight. In 2015, a two-seater Airbus electric plane flew over the English Channel, and the European aviation giant has said it is developing a second electric-powered plane. NASA, meanwhile, is working on an electric research plane known as the X-57 Maxwell that will test how electric propulsion can affect a plane's performance. samantha.masunaga@latimes.com Twitter: @smasunaga http://www.aviationpros.com/news/12370901/this-la-electric-plane-startup-is-working-with- easyjet-to-develop-electric-jetliners Back to Top Thales bets on China's appetite for simulators Haite Group, a Chinese company specializing in aviation services, recently inaugurated a flight training center in Tianjin featuring a Thales Reality H EC135 full flight helicopter simulator. Thales sees the delivery as the first in a long series to come. The center will be instrumental in meeting the increasing demand for helicopter pilot training in China, Thales said. In that instance, the Paris-based company's role is only that of a supplier. But it has had a long relationship with Haite Group, Benoit Plantier, Thales vice president, training and simulation activities, said. The simulator Haite Group has received sports Thales' Hexaline electric motion system, for lower maintenance cost. The Civil Aviation Administration of China (CAAC) certified it as a Level D simulator. "The CAAC's requirements are similar to those of the European Aviation Safety Agency, but this was their first EC135 simulator so they want to understand in depth, they ask for more explanation and documents," Plantier said. Thales expects Haite Group will order more simulators, and said they would support H135 fleet growth in the country. Meanwhile, Airbus Helicopters is building its first final assembly line in China, and it will produce H135 light twins. The EC135 is the predecessor of the H135 so, for Haite Group, buying an H135 simulator was the next logical step. China was the manufacturer's first single market in 2016. The country is estimated to need thousands of civil helicopters over the next 20 years for applications such as emergency medical services, for which the EC135 and the H135 are well suited. Airbus Helicopters is claiming a 40 percent market share in China's civil helicopter market, with 260 rotorcraft. The long-discussed deregulation of the lower airspace, needed for the helicopter industry to thrive, is beginning in earnest, according to Plantier. https://www.verticalmag.com/news/thales-bets-chinas-appetite-simulators/ Curt Lewis