August 6, 2018  -  No. 062

In This Issue 
IATA and CFM partner to increase maintenance market competitiveness 
Fast 5: Africa's MRO Needs 
India Working on Bizav Aircraft Management Rules 
Frost & Sullivan: Opportunity to Develop a Regional Business Aviation Hub in Malaysia 
Moving Aircraft And Parts Into China's Fast-Growing Market Poses Special Challenges 
China Completes Testing of Unmanned Helicopter 
Strategic plan for aviation industry expansion being prepared 
Garmin announces new aviation webinars 
IFS launches newest version of IFS Maintenix operator edition for airlines, fleet operators 
These are the astronauts NASA assigned for SpaceX and Boeing to launch the first crews from the US since 2011 

IATA and CFM partner to increase maintenance market competitiveness

The International Air Transport Association (IATA) has signed a deal with jet engines supplier CFM International (CFM) to address rising airline operating costs and help make flying affordable.

According to the companies, the deal is expected to increase competition in the market for maintenance, repair and overhaul services (MRO) on engines manufactured by CFM, a joint venture between GE Aviation and Safran Aircraft Engines.

Engines made by CFM power around 13,400 single-aisle aircraft. The deal is expected to benefit CFM's airline customers, aircraft lessors, third-party MRO facilities and parts manufacturers.
IATA director general and CEO Alexandre de Juniac said: "Airlines spend a tremendous amount of money on the maintenance and repair of aircraft and engines to ensure we are always operating to the highest levels of safety and reliability.

"This milestone agreement with CFM will lead to increased competition among the providers of parts and services related to the servicing of CFM engines. We expect increased competition will reduce airline operating costs and help to keep flying affordable. And we hope that this agreement will be an example for other manufacturers to follow."

As part of the deal, CFM has adopted a set of 'Conduct Policies' that will help enhance opportunities available to third-party providers of engine parts and MRO services on its existing CFM56 and the new LEAP series engines.

The company has further agreed to licence its Engine Shop Manual to an MRO facility even if it uses non-CFM parts; grant airlines and third-party overhaul facilities the right to use the CFM Engine Shop Manual without a fee; as well as perform all parts repairs when non-CFM parts or repairs are present in the engine.

GE has also agreed to apply the Conduct Policies to other air commercial aircraft engines it produces.

Based on the agreement, the association has withdrawn a formal complaint it filed with the Competition Directorate of the European Commission (COMP) in March 2016. The complaint regarded an investigation being conducted by the COMP into alleged abuses of dominant positions by manufacturers of aviation equipment.

https://www.airport-technology.com/news/iata-cfm-partner-increase-maintenance-market-competitiveness/

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Fast 5: Africa's MRO Needs

A former general secretary of the African Airlines Association, Nick Fadugba is often referred to as Africa's greatest aviation export. Despite the many challenges facing aviation on the continent, Fadugba tells Daniella Horwitz that he still believes it is a vital catalyst for Africa's economic and social advancement.

Few African carriers have their own MRO centres. What is the reason for the limited MRO activity in Africa?

The reason for the limited MRO activity in Africa is mainly due to the small fleet size of most African airlines.  The average fleet size across the continent is less than 10 aircraft and this does not provide a critical mass to justify most airlines individually investing in capital-intensive MRO activities. Hence, the African airlines with key MRO activities have reasonably-sized fleets.

What aftermarket needs do African carriers have? What untapped needs exist?

Areas that need addressing include spare parts provisioning, materials management, component maintenance, refurbishment and conversion of aircraft cabin interiors, and, in some countries, even wheel and break overhaul and repair capabilities remain a challenge.There is also a need for more well-trained aviation personnel, with skill sets ranging from technical, to operational, to management.

What is the biggest challenge facing African aviation operators and MROs?

Perhaps the biggest challenge facing African operators and MROs is insufficient co-operation. I would like to see increased co-operation between African airlines, especially in respect of joint ventures, interlining, code-sharing, joint training, joint MRO and joint spares provisioning. There is also ample room for increased co-operation between MROs in Africa which could see the emergence of MRO centres of excellence in specific areas, rather than each MRO trying to provide every service.

You have been described as one of Africa's greatest exports to the aviation world. What are your hopes for Africa's aeronautical future?

I established African Aviation in 1990 with the raison d'ętre of promoting aviation development in Africa and still believe that aviation is a vital catalyst for Africa's economic and social advancement. Much has been achieved, but much more remains to be accomplished. The improvement in aviation safety in Africa and modernization of African airline fleets with state-of-the-art aircraft are two major achievements. Increased intra-Africa connectivity is the next goal.

It is likely that aircraft OEMs from China, Japan and Russia will make in-roads into Africa over the next two decades. Their aircraft are likely to be more attractively priced and will have similar capabilities as western aircraft. However, will they be able to provide comparable operational and technical support as that provided by western OEMs?

In future, most new aircraft delivered to Africa are likely to be provided on operating leases because the balance sheets of many African airlines are not strong enough to support direct aircraft financing. This will increase the need for efficient MRO services in Africa to protect aircraft asset values and will also require meticulous aircraft maintenance record-keeping.

https://www.mro-network.com/maintenance-repair-overhaul/fast-5-africas-mro-needs


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India Working on Bizav Aircraft Management Rules

India's ministry of civil aviation is now working on a model that would better accommodate business aircraft management, India Business Aviation Operators Association (BAOA) managing director R.K. Bali told AIN. These new guidelines would help the country's business aviation sector to become more cost-effective, he said.

Ravi Menon, founder of Air Works, India's oldest and largest maintenance and services company, expects the final guidelines to be released in six months. AIN has learned that the ministry of civil aviation has appointed an economic advisor to liaise with numerous ministries, including those of finance and trade,to ensure the rules are enforced expeditiously.

"We are taking one step at a time," noted Bali. "The next issue will be for easing of rules for fractional ownership."

In the past three years, the number of nonscheduled operators in India has decreased from 139 to 110 due to the economic unviability of running these operations after the government introduced stricter laws on safety oversight. "There are no more shortcuts now," explained Bali.

Invision Air co-founder Jayant Nadkarni said his company was forced to sell two aircraft because of the restrictions. "The cost of ownership crashes" because of the situation, he said.

Present guidelines require every nonscheduled operator to handle its own fleet management. Eighty percent of such operators in India have only one aircraft. Each owner is required to have a maintenance technician, flight safety manager, and a complement of pilots with every aircraft, increasing the cost substantially.

Even if the aircraft is not underutilized, operations costs go up by at least two to three times compared to an aircraft management company handling a larger fleet, said Bali. "As a result, economies of scale cannot be reached."

Air Works' Dubai-based subsidiary Empire Aviation-one of the region's largest managed fleets of business jets, with more than 25 aircraft under management-has been waiting in the wings to start aircraft management services in India. "Unlike the U.S. with zero import tax rates, certain countries in Europe also have differential tax rates on commercial and private aircraft as in India, but take a more mature attitude towards it," said Nadkarni.

India imposes high and differential import duties on business aircraft based on their end use. For charter companies, it is at 18 percent; that rises to 28 percent for aircraft procured only for personal use. "We would like rationalization for both categories," said Bali.

https://www.ainonline.com/aviation-news/business-aviation/2018-08-03/india-working-bizav-aircraft-management-rules

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Frost & Sullivan: Opportunity to Develop a Regional Business Aviation Hub in Malaysia

KUALA LUMPUR, Malaysia, Aug. 3, 2018 /PRNewswire/ -- The economic progress of Malaysia and a growing number of high net-worth individuals in the country is leading to a steady growth in the demand for business aviation. This coupled with the regional dynamics of the industry, wherein existing hubs such as Singapore's Selatar airport and Hong Kong International Airport are giving preference to commercial flights, present an ideal moment for Malaysia to capitalise.

As per a recent survey conducted by Frost & Sullivan among industry stakeholders in the Asia Pacific region, the Sultan Abdul Aziz Shah airport at Subang in Malaysia is the most favoured choice for the next business aviation hub in the region.

"Subang is already the most frequently used business aviation airport in Malaysia and it has potential to develop even further," said Nishant Dey Purkayastha, Consultant at Frost & Sullivan.
Frost & Sullivan estimates that the business aviation fleet owned and used by Malaysians, which stood at 51 jets in 2017, can potentially reach to 124 jets by 2030.

"However, the industry has several roadblocks that need to be mitigated in order to realize the full potential. Regulatory issues related to registration, financing and cabotage policy are major roadblocks. For instance, only 30% of the fleet based out of Malaysia are registered in the Malaysian registry. The others are registered in other countries. This hampers the domestic charter industry as the internationally registered jets cannot be used for domestic operations. Other hurdles are in the form of infrastructure related issues and operational issues," said Nishant.

The availability of a complete ecosystem, including charter operators, authorised maintenance centers, fixed-based operators and parking space, were key reasons that helped Singapore and Hong Kong to emerge as hubs for business aviation.

"Subang currently does have a decent ecosystem, with some leading global names such as ExecuJet and Hawker Pacific, as well as established local players like Smooth Route, Sapura Aero and Redland Aviation. However, some aspects of the value chain such as painting and modifications, flight simulation and training, and parts distribution and logistics are missing. Malaysia will need to attract investments to fill up the gaps and complete the ecosystem," he added.

Currently, Subang's annual business jet movement stands at around 3,200. The leading business aviation airports in Asia Pacific region are Beijing (9,000 movement), Hong Kong (7,250 movement), Shanghai (5,000 movement) and Singapore (4,900 movement). Subang's numbers are marginally ahead of Bangkok's Don Muang airport and Manila's Ninoy Aquino airport. As per Frost & Sullivan's analysis, if the issues in the ecosystem in Malaysia can be addressed, the annual business jets movement in Subang can potentially reach a figure of 9,299 by 2030.

Business aviation sector's contribution to the Gross Domestic Product (GDP) of Malaysia stands at 0.008% currently. On the other hand, developed countries such as the United States, Canada and United Kingdom typically have a contribution of around 0.20% of the GDP from the business aviation industry.

This provides immense potential for the industry to grow in Malaysia and at the same time create jobs and contribute to the economy. Currently, the industry contributes approximately 96 million Ringgitto the annual GDP and provides 636 person-years of employment. In the best case scenario, this can potentially grow to 342 million Ringgit in GDP contribution and 1,546 person-years of employment by 2030.

The development of the industry will require all the key stakeholders to work in tandem. While the Ministry of Transportation, the Civil Aviation Authority of Malaysia (CAAM) and Malaysian Aviation Commission (MAVCOM) will have to take the lead to ease the regulatory hurdles, Malaysia Airports Holdings Berhad will have to work in conjunction with agencies such as Malaysia Investment Development Authority (MIDA) to prospect and attract the right investors. Understanding the needs of the investors and coming with an appropriate investment package to seal the deals.

Nishant added, "Thailand, Philippines and Indonesia are some of the other regional players that can potentially look to develop a business aviation hub. But Malaysia's existing ecosystem is more developed and the industry players seem to hold a more favourable view of Malaysia. However, delays in taking steps in the right direction might enable to competitors to catch up."

About Frost & Sullivan
For over five decades, Frost & Sullivan has become world-renowned for its role in helping investors, corporate leaders and governments navigate economic changes and identify disruptive technologies, Mega Trends, new business models and companies to action, resulting in a continuous flow of growth opportunities to drive future success. 

http://www.aviationpros.com/news/12423446/frost-sullivan-opportunity-to-develop-a-regional-business-aviation-hub-in-malaysia

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Moving Aircraft And Parts Into China's Fast-Growing Market Poses Special Challenges

It has long been the fastest-growing major aviation market in the world and before too long will be the biggest aviation market globally. But dealing with China, especially moving aircraft in and out of China on leases, requires some very special skills.

Even new aircraft deliveries into China can take some time, notes Kevin Chan, senior vice president and regional manager for technical asset management at SMBC Aviation Capital. After a type certificate is validated for a new aircraft, its import into China still requires approvals by the Chinese National Development Reform Commission and Civil Aviation Administration of China (CAAC) "These can take considerable time to acquire and thus delay the delivery of the aircraft," Chan notes.

For previously flown aircraft, there can be issues with the availability, timeliness and accuracy of utilization data and aircraft records. "In recent years, in order to compete for market share, some leasing companies were willing to accommodate off-market terms and conditions, including specifications that limit aircraft re-marketability," Chan explains. These kinds of problems can limit a lessee's ability to adhere to lease agreements for regular inspections, a critical obligation following the placement of the aircraft.

Another issue in cross-Chinese-border transactions arises from China's growing position as a global manufacturing hub. "Divergences in the regulation of Chinese authorities and that of other global authorities can be an issue in the acceptance of aircraft components manufactured by companies other than the OEMs," Chan explains. The CAAC has its own Parts Manufacturer Approval (PMA) regulations, and these differ from regulations of other national authorities. The difference makes it unlikely for CAAC to accept certain components with PMAs from non-Chinese regulators. "Given that use of local PMA parts is widespread in China, the value and transferability of aircraft can be affected if it is not managed properly," Chan says.

There is another challenge that arises when transferring aircraft assets out of China's Free Trade Zones. Chinese FTZs provide certain incentives for lessors and airlines when aircraft on lease are held in FTZs, so it is common to transfer aircraft from overseas into FTZs. But Chan says it is challenging to transfer aircraft out of FTZs to abroad due to the complexity of the incentives the airlines lose as a result of the transfer. This is not a technical issue, but an economic one and a matter of thoroughly understanding the legal environment and its business impact.

Delays at redelivery stage can also be an issue in China, as elsewhere, especially if the future lease agreement has not anticipated delay. SMBC generally has a pre-redelivery meeting a year before the scheduled redelivery date to agree on the high-level arrangements. Chan says this policy allows expectations of both sides to be aligned.

Chan says short supplies of engineers and mechanics are a particular challenge in China, due to rapid aviation growth and plentiful opportunities in other job markets. But along with more engineers, Chinese leasing companies will also need more experienced people in marketing and sales, contract management and legal and risk management.

What else does a leasing company need to do business in China? "Local knowledge, local language skills, good working relationship with clients and experience in Chinese asset management, including redeliveries, remarketing, risk management, acquisitions and sales," the SMBC executive summarizes.

https://www.mro-network.com/maintenance-repair-overhaul/moving-aircraft-and-parts-china-s-fast-growing-market-poses-special


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China Completes Testing of Unmanned Helicopter

China's Shenyang Institute of Automation and the Chinese Academy of Sciences have completed test flights of the Xiangying 200, claimed to be the country's first indigenous "large" unmanned helicopter. By dimensions, appearance, and capabilities, the helicopter is virtually identical to an older-model, kit-built American Rotorway 162F, and what differences that do exist could be accounted for by changes to the main rotor system on the Xiangying 200.

Shenyang said key aircraft components such as flight controls, engine, and transmission were all made in China and that the aircraft has future applications for search and rescue, agriculture, and EMS. The Rotorway has a length of 29.5 feet, has a height of eight feet, can carry a payload of 425 pounds, and has an endurance of two hours; the Xiangying 200 has a length of 28.54 feet, a height of 8.2 feet, and can carry a payload of 440 pounds. Among the tests performed by the Xiangying 200 include takeoffs and landings from a ship deck. 

https://www.ainonline.com/aviation-news/aerospace/2018-08-03/china-completes-testing-unmanned-helicopter

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Strategic plan for aviation industry expansion being prepared

A strategic master plan is being drawn up to target further expansion of the aviation industry, the Prime Minister said.

Joseph Muscat made the announcement this morning during the signing of an agreement with aviation maintenance company SR Technics.

The company is expanding its operations by moving into a bigger hanger at the airport's Park 4 area.

Muscat said the government wanted to look at all options of growth for the aviation sector.

He said Malta Industrial Parks and Malta Enterprise have been entrusted with drawing up a strategic master plan for the sector.

The agencies are studying land use options around the airport and elsewhere to determine what options exist for expansion.

Only some days ago, Malta International Airport said it required more apron space to cater for increased air traffic.

The Prime Minister said the government has committed an additional €4 million for training of people to be able to work in the aviation sector.

"To flourish, the sector needs care and the right economic environment... but the positive scenario we have today is not a comfort zone for us and this is why we are working on a strategic master plan," Muscat said.

http://uploads.maltatoday.com.mt/news/national/88679/strategic_plan_for_
aviation_industry_expansion_being_prepared#.W2gWatJKjrc


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Garmin announces new aviation webinars

New webinars that have been recently added to the 2018 Garmin aviation webinar schedule discuss a variety of topics and products, including:

Autopilot retrofits

The GFC 500 and GFC 600 retrofit autopilots offer reduced maintenance, as well as safetyenhancing capabilities such as Garmin Electronic Stability Protection (ESP), underspeed/overspeed protection and coupled approaches.

* Cost-effective Retrofit Autopilot Solutions, September 18th @ 4PM CT
* Cost-effective Retrofit Autopilot Solutions, November 13th @ 7PM CT

Experimental Avionics

Learn more about experimental avionics for homebuilt aircraft, including G3X Touch, the G5 electronic flight display, G3X autopilot, GMA 245 audio panel, GTN navigators and more.

* Garmin Avionics for Experimental Aircraft, September 11th @ 10AM CT
* Garmin Avionics for Experimental Aircraft, October 10th @ 7PM CT

Low-cost Avionics Solutions

Learn about upgrading an aircraft panel with cost-effective avionics such as the GDL 82 ADSB Out datalink, the GTX 345 series all-in-one ADS-B transponders and the G5 electronic flight instrument.

* Low-cost ADS-B, Instruments & Avionics, August 23rd @ 4PM CT
* Low-cost ADS-B, Instruments & Avionics, November 8th @ 10AM CT

Advanced Avionics Upgrades

A wide variety of avionics upgrades including the TXi series touchscreen flight displays, GTN series navigators, GMA audio panels, GTX ADS-B transponders, autopilots and more provide aircraft owners with endless panel upgrade options.

* Avionics Upgrades - including latest TXi series, August 8th @ 7PM CT
* Avionics Upgrades - including latest TXi series, October 3rd @ 4PM CT
* Avionics Upgrades - including latest TXi series, December 5th @ 4PM CT

Garmin Pilot

Get insider tips and tricks for using the Garmin Pilot mobile app to make flight planning, navigation and flying easier - and more fun.

* Garmin Pilot Tips & Tricks, August 16th @ 10AM CT
* Getting Started with Garmin Pilot, October 23rd @ 4PM CT
* Garmin Pilot Tips & Tricks, December 13th @ 4PM CT

Aviation Portables

Explore Garmin's wide range of portable solutions, including the aera 660 and aera 796 handheld navigators, ADS-B and SiriusXM datalinks, D2 aviator watch wearables, as well as VIRB action cameras.

* Garmin Portable Solutions, September 25th @ 7PM CT

For more information about Garmin's full line of avionics, go to www.garmin.com/aviation.

http://www.pilotweb.aero/news/new-garmin-webinars-1-5636595


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IFS launches newest version of IFS Maintenix operator edition for airlines, fleet operators

Global enterprise applications company IFS has announced it has unveiled the latest upgrade to its aviation maintenance and engineering system, IFS Maintenix Operator Edition, the company said.

The new release incorporates enhancements across all functional areas of maintenance management, including supply chain, engineering, maintenance execution, security and compliance.

Available immediately, the latest iteration of IFS Maintenix Operator Edition features:

-Optimized parts management
-Automated follow-on maintenance 
-Stronger work authorization and compliance management 
-Improved system manageability 
-Certified technology

Since its initial release in 1998, IFS Maintenix Operator Edition has evolved into one of the industry´s most trusted and proven maintenance and engineering systems in the aerospace and defense market. The system is used to manage more than 20 percent of the world´s active commercial and military fleets.

http://www.financial-news.co.uk/49545/2018/08/ifs-launches-newest-version-of-ifs-maintenix-operator-e/


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These are the astronauts NASA assigned for SpaceX and Boeing to launch the first crews from the US since 2011

NASA announced on Friday the assignments of the first nine astronauts riding commercial spacecraft to the International Space Station, naming five to the first two Boeing flights and four to SpaceX's flights.

The astronauts are a part of NASA's Commercial Crew program, which is the agency's solution to once again launch U.S. astronauts from U.S. soil. Since the end of the Space Shuttle program in 2011, astronauts have flown aboard Russian Soyuz - at a cost to NASA of more than $70 million per seat.

NASA's new program is competitive, with contracts up for grabs for Boeing to win with its Starliner capsules and SpaceX with its Dragon capsules.

Delays have plagued the program since 2014, when NASA first handed out multi-billion dollar contracts to SpaceX and Boeing. Boeing announced on Wednesday that its first Starliner test flight would be pushed from August to later this year, at the earliest.

Meanwhile, NASA confirmed Thursday that SpaceX's first test flight for Dragon would delay to November. NASA was expected to certify Boeing in December 2019 and SpaceX in January 2020, according to analysis earlier this year, but a GAO report in July says further delays are expected.
Boeing's timeline already causes a one-month gap, at minimum, in NASA's contracts for seats with Russia, and the first launches of Boeing and SpaceX. NASA is considering a number of solutions to resolve the gap, the GAO report said.

NASA administrator Jim Bridenstine presented the astronauts who will ride on the first four Commercial Crew flights, including three who have never flown to space before. Here are the companies and flights they were assigned to on Friday:

Bob Behnken - SpaceX test flight
Bob Behnken has flown to space aboard the Space Shuttle Endeavor twice since joining NASA's astronaut corps in 2000. He is a flight test engineer, as well as U.S. Air Force colonel.

Doug Hurley - SpaceX test flight
Doug Hurley also joined NASA's astronaut corps in 2000, and was formerly a Marine Corps test pilot. Hurley piloted two of the space shuttles, including the final space shuttle mission in 2011.
Behnken and Hurley are scheduled to fly in Crew Dragon in April 2019, launching on top of a SpaceX Falcon 9 rocket.

Nicole Mann - Boeing test flight
Nicole Mann test flew Marine Corp F-18 fighter jets before being selected as a NASA astronaut in 2013. Starliner's first crewed flight will be her first trip to space as well.

Chris Ferguson - Boeing test flight
Chris Ferguson piloted one space shuttle and commanded another two. Ferguson is the only astronaut who is not a active NASA astronaut - he retired from the corps after the shuttle's last flight.

Eric Boe - Boeing test flight
Eric Boe was an U.S. Air Force colonel test pilot before becoming a NASA astronaut in 2000. Boe has piloted two space shuttles.

Mann, Ferguson and Boe are set to launch in Starliner during the middle of next year, lifting off on top of a United Launch Alliance - a joint venture of Boeing and Lockheed Martin - Atlas V rocket.

Victor Glover - First SpaceX mission
Victor Glover is a Navy commander and test pilot, selected as a NASA astronaut in 2013. His first trip into space will be on Crew Dragon's first full mission.

Mike Hopkins - First SpaceX mission
Mike "Hopper" Hopkins became a NASA astronaut in 2009, following time as a flight test engineer and colonel in the U.S. Air Force. He flew on two shuttle missions.

Suni Williams - First Boeing mission
Suni Williams became a NASA astronaut in 1998, coming to the agency as a Navy captain and test pilot. Williams has spent nearly a year in space, cumulatively, with seven spacewalks over that time.

Josh Cassada - First Boeing mission
Josh Cassada is a U.S. Navy commander and test pilot, selected to the NASA astronaut corps in 2013. Cassada's flight on Starliner's first mission will be his first trip to space.

After the announcement, the nine astronauts participated in an "Ask Me Anything" thread on Reddit. Here are some highlights:

"Besides safety, what are the most important things that you wanted improved or implemented into the design for the Dragon and Starliner capsules?"

"Cupholders? But seriously, safety is the most important but a close second is reliability," Hopper said.

"What "updated tech" on these spaceships are you looking forward to most?"

"For me, the revolution in the avionics is incredible. The displays are so much more capable and the vehicle inside is much cleaner with less switched and circuit breakers than what we had to deal with in the space shuttle," Hurley said.

"We're looking for spaceflight to look a lot like flying a commercial airplane. It's safe and reliable, and provides transportation to space instead of another city," Ferguson said.

"How does the comfort of your new vehicle compare to the cramped environment of the [Russian] Soyuz?"

"Soyuz is a great vehicle. However, it is small. Sitting inside the Soyuz for a long time was uncomfortable, because your knees are bent up to your chest. The new spacecraft have more volume inside, which allows your legs to be bent at an angle, similar to when you sit in a chair," Williams said.

https://www.cnbc.com/2018/08/04/nasa-commercial-crew-the-astronauts-spacex-and-boeing-will-launch.html

Curt Lewis