September 13, 2018  -  No. 072

In This Issue 
BAE Systems Awarded 146 Support Contract 
One Network's Real Time Value Network 
Arizona gets lofty ranking for aerospace/defense manufacturing 
PCC buys six flight simulators for aviation students 
Cape Cod Community College Aviation Program Enrollment Expands 
Supersonic jet maker's planes won't go boom 
ExecuJet's Dubai Facility Expands Lineage Capabilities 
Era Group and Bel Air Aviation enter teaming agreement. 
A Bottleneck Over an Engine Part Turns Jets Into 'Gliders' 
Israeli moon lander to ride SpaceX rocket in Spaceflight's first move beyond low Earth orbit 

BAE Systems Awarded 146 Support Contract

A four-year contract worth UK£42 million ($54.87 million) has been awarded to BAE Systems to provide ongoing support for the Royal Air Force's fleet of four British Aerospace 146 transport aircraft. They are operated by No. 32 (The Royal) Squadron from RAF Northolt, located in west London. Included in the contract-which commenced on March 1 this year-are one- and two-year extension options. If the latter is exercised, the value rises to £60 million.

"We are delighted to have won this prestigious contract. Working with our partner Serco, we aim to deliver a first-class service to our customer to reduce costs and give clearer visibility of our performance," said Sean McGovern, managing director of BAE Systems Regional Aircraft. "We have also worked closely with our colleagues from BAE Systems Air sector to learn from their Typhoon, Tornado, and Hawk availability contracts for the Royal Air Force in order to provide the best possible service to our customer."

Formally known as the BAe 146 In-Service Support Availability Contract, the deal was put out to tender and won by a BAE Systems-led team that includes the previous 146 support contractor, Serco. With an experienced workforce and mature facility at Northolt, Serco is responsible for the maintenance aspects, including support of airframe, powerplant, avionics, and electrics. The company also performs aircraft interior cleaning and maintenance and provides total supply chain management. It also manages the GFA (government-furnished assets) that are part of the 146. Serco provides a pool of sponsored reserve personnel that are available to support the aircraft when it is deployed overseas.

For its part, BAE Systems is responsible for delivering the aircraft availability element of the contract, which will drive a 20 percent increase in availability at a reduced operational cost. The contract specifies that three out of the four aircraft will be available for tasking at 7 a.m. every weekday, and two of the four will be available at 7 a.m. on weekends.

The RAF has operated the BAe 146 since 1986, when two 146-100s were assigned to the Queen's Flight at RAF Benson, designated 146 CC.Mk 2 in RAF service. A third was added in 1990 but was sold in 2002. On April 1, 1995, the Queen's Flight was merged with No. 32 Squadron at Northolt, which undertook staff transport duties as the Metropolitan Communications Squadron. Upon the unit merger, No. 32 added "The Royal" to its title.

From that time the 146s ceased to have a dedicated royal transport commitment and were assigned the Command Support Air Transport (CSAT) mission. However, members of the Royal family can-and do-use the aircraft if they are not required for military missions. In 2004 the distinctive Queen's Flight red-tail livery was removed, primarily as a security measure.

No. 32 Squadron's 146s have been used for intra-theater passenger and cargo transport during wartime, including in Desert Storm in 1991, and more recently in Iraq and Afghanistan. The demand for such capacity to reduce the burden on the Hercules and Chinook fleets led to the acquisition of two more aircraft in 2013. The ex-TNT aircraft are of the 146-300QC (Quick Change) version, with a large freight door in the rear fuselage for loading and unloading palletized passenger seats and freight. They are designated 146 C.Mk 3 in RAF use. All four aircraft are fitted with a defensive aids suite for in-theater operations, or when transporting VVIPs.

https://www.ainonline.com/aviation-news/defense/2018-09-12/bae-systems-awarded-146-support-contract#


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One Network's Real Time Value Network™ Selected by AAR to Enhance Performance-Based Logistics Capabilities for the United States Air Force

DALLAS, Sept. 12, 2018 /PRNewswire/ -- One Network Enterprises, the global provider of a multi-party digital network platform and services, today announced that AAR, AIR, +0.44% an independent provider of aviation services to commercial and government customers worldwide, has chosen One Network's Real Time Value Network™ (RTVN) as AAR provides essential repairs to major landing gear components of select United States Air Force (USAF) airframes. The RTVN will be used in support of the USAF's Performance-Based Logistics (PBL) landing gear contract; allowing AAR to more effectively oversee and manage depot level maintenance on landing gear assemblies of the C-130 Hercules, KC-135 Stratotanker and E-3 Sentry AWACS weapon systems.

"By acting as the messaging interface between the USAF and AAR's Integrated Solutions and Landing Gear maintenance teams, One Network's Real Time Value Network will support the Air Force's overall readiness and ensure fast response times to requests for components from units in the field," said Mark deRu, Vice President Integration and Business Intelligence, AAR. "One Network's technology will enhance the way AAR interacts with the USAF wholesale supply system (D035A) that manages the source of supply group parts. The move to DLMS removes the data exchange limitations of MILS, a decades-old standard. This frees the USAF to expand its requisitioning activities to AAR as part of their system modernization efforts."

With the RTVN, AAR's maintenance system will be able to efficiently communicate with the USAF's strategic wholesale inventory management systems via Defense Automatic Addressing System (DAAS) - formerly known as DLA Transaction Services (DLA-TS) - by using Defense Logistics Management Standards (DLMS) messages. This standard has been adopted as a mandate by DoD, and RTVN, with its Defense Core, is among the first to fully embrace the required DLMS messaging protocols. In addition to providing near real-time maintenance and shipping status updates to warfighters in the field, One Network's ability to connect systems with its public Application Program Interfaces (API's) and extensive DLMS experience will enable AAR to meet critical response timelines.

"We are thrilled to support AAR and to help the USAF maintain aircraft combat readiness, so it can continue to defend U.S. interests globally," said Greg Brady, founder and CEO of One Network. "One Network's deep history of working with governments and strategic partners like AAR demonstrate how our cost-effective and highly flexible cloud platform can be used to oversee the real-time aircraft maintenance, repair and overhaul needed to keep our servicemen and women safe and our country protected."

About One Network Enterprises
One Network is bringing the network to connect companies and their entire ecosystem, to serve the customer.  Founded in 2002, One Network offers patented solutions to multi-party business, including supply chain management.  One Network's cloud platform, the Real Time Value Network™, eliminates the traditional divide between planning and execution and enables visibility and data to flow across the entire value chain of business partners - in real time.
  Additionally, One Network offers PaaS solutions and developers tools that enable organizations to design, build and run multi-party applications. Leading organizations from around the world, from nearly every industry, have joined One Network, helping to transform industries from CPG, Healthcare, Automotive, Retail, Logistics and Public Sector and Defense. Headquartered in Dallas, One Network also has offices in China, Europe, and India.  For more information, please visit www.onenetwork.com.

About AAR
AAR is a global aftermarket solutions company that employs more than 6,000 people in over 20 countries. Based in Wood Dale, Illinois, AAR supports commercial aviation and government customers 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.

https://www.marketwatch.com/press-release/one-networks-real-time-value-networktm-selected-by-aar-to-enhance-performance-based-logistics-capabilities-for-the-united-states-air-force-2018-09-12


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Arizona gets lofty ranking for aerospace/defense manufacturing

Few direct departures connect Phoenix Sky Harbor International Airport with foreign nations. No airlines fly nonstop in and out of Tucson from the northeastern United States.

But Arizona is a top-five player in aerospace and defense manufacturing - one of America's top industrial sectors and biggest source of export dollars.

"Arizona continues to be attractive for aerospace manufacturing, with an ideal climate for aircraft testing and space observation, good transportation infrastructure and business-friendly tax policy," said researcher PwC in a report released Wednesday.

Arizona placed fourth among the states, trailing only Washington, the operational home of Boeing's commercial aircraft division, along with Texas and Georgia. The rankings looked at labor, infrastructure, industry, economy, cost and tax policy,

The United States ranked as the top aerospace/defense manufacturing nation. Canada, Singapore, Switzerland and the United Kingdom rounded out the top five.

Above-average rankings
As an example of Arizona's appeal, the report cited the decision by AQST Space Systems to relocate its headquarters and operations hub to Mesa from Puerto Rico. The company, which makes rockets for small satellites, plans to hire up to 125 employees over the next three years.

Arizona received top-10 grades for industry size (including maturity and number of companies) and modest costs (for labor, transportation, energy and more).

Arizona got top-25 grades in the four other categories. They reflect the overall health of the state economy, infrastructure (roads, airports, electricity generation and more), labor (including number and educational attainment of workers) and tax policy (reflecting state income taxes and local/state tax policies).

Arizona ranked third in last year's PwC report. Georgia was first, followed by Michigan, Arizona, North Carolina and Virginia. 

Leading Arizona employers
Major aerospace/defense manufacturers in Arizona include Raytheon, Honeywell International, General Dynamics, Boeing and Northrup Grumman, after its purchase this year of Orbital ATK, with operations in Chandler. All ranked in this year's Arizona Republic 100 list of largest nongovernment employers in the state, led by Raytheon, which has been expanding in the Tucson area.

Including cybersecurity, maintenance, repair and overhaul, more than 1,200 aerospace and defense supply-chain enterprises operate in the state, according to a tally by the Arizona Commerce Authority. The industry employs more than 55,000 people here, with an annual payroll of $4.92 billion. In addition, aerospace/defense exports made up 13 percent of the state's export total in 2017.

Arizona has an especially high profile in the manufacture of guided missiles/space missiles, in aviation maintenance and other areas. The Commerce Authority also singled out the aerospace/astronautical engineering programs at Embry-Riddle Aeronautical University in Prescott as especially notable.

American dominance
The U.S. generated $240 billion in aerospace/defense sales last year, including $143 billion in exports, the PwC report said.

"The sheer size of the industry, coupled with a healthy (gross domestic product), strong transportation infrastructure and educated workforce make it a hard country to beat," the report said.

Airline expansion last year was buoyed by passenger growth, low fuel costs and strong momentum in world trade.

In the latest report, for 2017, the U.S. ranked poorly for tax policy, reflecting a relatively high corporate tax rate that was subsequently reduced.

"Given U.S. tax reform, which took effect in 2018, we expect to see a significant improvement in the (nation's) tax-policy rank in next year's report," PwC said.

Tailwinds, headwinds
The report noted strong demand for commercial aircraft, especially from Asian nations with rapidly expanding middle classes.

As a concern, the report cited the potential for trade wars to disrupt the industry.

"Recent trade disputes have caused some uncertainty about future tariffs," the report said. "So far, the aerospace industry has not been directly targeted, although the industry is indirectly impacted by certain tariffs on metals."

Canada, with which trade tensions have been especially acute of late, ranked No. 2 for aerospace/defense manufacturing by PwC. Mexico, the third member of NAFTA or the North American Free Trade Agreement, ranked 38th.

https://www.azcentral.com/story/money/business/economy/2018/09/12/arizona-gets-top-ranking-aerospace-defense-manufacturing/1259893002/


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PCC buys six flight simulators for aviation students

Portland Community College's Rock Creek campus is training the next generation of airline pilots, and the way they do it, pilots don't even have to leave the ground.

The campus, 17705 N.W. Springville Road, north of Hillsboro, is now home to six new flight simulators, something administrators say could help with addressing the current demand for pilots around the globe.

PCC has offered a two-year aviation program at the Rock Creek campus since 1999, but learning to fly is getting more and more expensive, according to Larry Altree, chairman of PCC's Aviation Science department.

"Using these simulators brings the number of actual aircraft time down for each student, while increasing what they are learning and actually increasing the safety of both the students while they are in the program and making them safer pilots afterwards when they graduate."

Students in the PCC program typically rent aircraft by the hour for practice, primarily at the Hillsboro and Troutdale airports, which isn't affordable for many students, Altree said.

"There is a tendency for beginning pilots to go out and spend a lot of time just figuring out what the different controls do," Altree said. "Those wasted minutes can really hurt the student financially."

A new generation of airline pilots and technicians is badly needed. More than 637,000 new airline pilots and more than 839,000 new cabin crew will be needed globally over the next 20 years, according to a report released by aircraft manufacturer Boeing last year.

That need is compounded by a planned exit of thousands of pilots over the next few years. By 2020, nearly one-third of Delta Air Lines' workforce will be eligible for retirement.

The six new simulators mimic Cessna and Piper airplanes as well as Robinson R-22 and R-44 helicopters - the same aircraft used at the Hillsboro and Troutdale airports for training, Chester said.

"We can simulate all sorts of situations and bad weather that we would never be able to simulate in an actual aircraft," Altree said. "So we are anticipating that each student that comes through our program will save something on the order of $3,000 to $5,000 each as they go through our program just because they won't have to rent aircraft for as many hours."

Oregon's notoriously wet weather means many aspiring pilots can't fly for several weeks or months at a time. Pilots-in-training must master visual flight rules, or VFR, a set of regulations pilots use while flying in clear skies.

"When bad weather arrives, they can't fly VFR," said Kenneth Kleinfelter, an Aviation Science support technician. "But they can come in here and fly visually, and hopefully maintain some of that proficiency over the winter when skills like these can get stale."

Altree said this isn't the only thing the school is doing to address the shortage of pilots and mechanics needed in the airline industry.

"There is an enormous demand for pilots right now, but what's keeping that demand from being fulfilled is the affordability of learning how to fly," he said.

In April, the campus struck a deal with Delta Air Lines, to help teach the airline's aviation maintenance technology program to aspiring mechanics.

Altree said the PCC aviation program has helped launch the careers of pilots all over the country.
"At this point, we've got graduates out there flying in most of the airlines in the United States," he said. "... I think now is a good time for people to look into being a pilot. It's just a historically awesome opportunity."

Beaverton resident Chris Morningstar, 26, joined the program last year and wants to use his aviation training to transfer into the Air Force. He is a regular in the simulation room and said the simulators have helped him become a better pilot.

"It's been great to have these simulators," he said. "They develop your multitasking skills, and you learn to handle situations that can arise in the cockpit. So when you do go out and fly, all of those situations are easier to handle."

https://pamplinmedia.com/ht/117-hillsboro-tribune-news/405916-303630-pcc-buys-six-flight-simulators-for-aviation-students-


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Cape Cod Community College Aviation Program Enrollment Expands

Sept. 11--Training a new generation of aviation technicians is starting to pick up regional momentum.

Stan Mackiewicz, director of Aviation and Technology at Cape Cod Community College, said the program has amassed a waiting list for the first time in its two-year history.

"Orientation (Sept. 1) went really well. We've got a full cohort of 24 students, and we've flowed more students into a January start," Mackiewicz said. "Today's environment is such that the airlines are hiring right out of schools, and it's not just the regional airlines. It's the majors as well."

Mackiewicz said CCCC aviation program graduates are now working at Plymouth Municipal Airport; Cape Air; Logan Airport; GE Aviation in Lynne; and Alaska Air.

"JetBlue is looking for people like crazy, but they're looking for a little more experienced technicians," he said. "You almost can pick where you want to live today and get viable employment in the industry."

Mackiewicz said marketing the aviation program, hiring a full-time recruiter, and increasing media awareness of industry demand have helped boost enrollments.

"This is also the first class where we have housing available through Bridgewater State," he added.
An agreement signed last May by CCCC President John L. Cox and Frederick W. Clark Jr., president of BSU, guarantees aviation students housing in BSU's 11 residence halls, which can accommodate more than 3,000 students.

The FAA Reauthorization Act of 2018 includes funding for training in the disciplines supporting the aviation industry, as does a $2.4 million environmental bond bill signed last month by Massachusetts Governor Charlie Baker. The latter authorizes $100,000 to support CCCC's FAA-certified Airframe and Powerplant Program.

While industry-wide, the aviation personnel shortage is primarily for pilots and maintenance technicians, Mackiewicz said.

"Pilots are just one track, but maintenance technology students gain multi-faceted abilities, from aviation business operations to renewable energy -- servicing wind turbines, in particular -- to mass transit and theme parks and commercial space," Mackiewicz said.

Moreover, the industry is very interested in increasing the number of female maintenance professionals. "Three women started today, and there are three more in the cohort that graduates in December," he said.

The college's 15-month program requires 1,904 clock hours of field training, per FAA standards. While general education courses are held in West Barnstable, field work is onsite at Plymouth Municipal Airport.

"We're ideally situated to be able to reach students from south and west of Boston, on-Cape, and out-of-state in Rhode Island, Connecticut, and New Hampshire," Mackiewicz said. "Our general-ed classes are in West Barnstable, but we're talking about also holding some here (in Plymouth)."
Aviation program information sessions for prospective students are scheduled for two Saturdays, Oct. 6 and Nov. 3.

More information is available at http://capecod.edu/aviation.

https://www.aviationpros.com/news/12429468/cape-cod-community-college-aviation-program-enrollment-expands


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Supersonic jet maker's planes won't go boom

Plans to launch supersonic commercial jet travel have long been hampered by a U.S. ban on such flight over land.

But rather than limit routes to transoceanic travel, Aerion Corp. of Reno, Nev., plans to push its AS2 supersonic business jet right to the limit - flying just a hair below supersonic when above ground, and then speeding up to Mach 1.4 over water.

Maneuvering around the rule will be crucial for the few companies that want to establish a market for supersonic business jets. Spike Aerospace Inc. of Boston is developing a needle-nose plane that would travel at Mach 1.6 and carry 12 to 18 private passengers. Boom Technology Inc. of Englewood, Colo., plans to build a 55-seat supersonic airliner that would have a ticket prices on par with business-class travel.

Today's supersonic jet manufacturers hope to avoid the problems that plagued the Concorde airliner, which flew for the last time in 2003. The Concorde was ultimately doomed by high maintenance costs, a soft market for air travel after the Sept. 11, 2001, terrorist attacks, and its high ticket price - as much as $18,260 in 2017 dollars for a London-to-New York round-trip flight - which left many seats empty. Sonic-boom restrictions kept the Concorde on mostly transatlantic routes.

Technology improvements, including carbon-fiber composites known for their strength and light weight, could make the new jets more efficient. The Federal Aviation Administration has been working with other aviation organizations around the world to develop international noise and emissions standards for supersonic flight, but Aerion says its jet will be able to start flying without any rule changes.

"Part of our business case was we don't require any regulatory changes to fly our airplane," said Tom Vice, chief executive of Aerion, who previously was president of Northrop Grumman Corp.'s aerospace systems sector in Redondo Beach, Calif. "It's hard to convince somebody to buy an airplane and say, 'We'll get the laws changed.'"

The company intends to sell its planes for $120 million each, a price that would allow the company to pay back investors and invest in new technologies, Vice said. That compares with the price of a high-end business jet, which can be $60 million to $80 million. Aerion believes the savings in flying time - it plans to cut a flight from New York to Tokyo by 1 hour and 57 minutes - will justify the cost.

"Time is our most precious resource," Vice said.

Aerion said it has already sold 23 aircraft, 20 of which will go to Flexjet, a Cleveland company that offers fractional jet ownership and leasing.

The business jet market shows the most promise for supersonic jets because large corporations and wealthy individuals are more likely to pay top dollar to save time, industry analysts said.

"Speed is not that high a priority for a commercial airline," said Ray Jaworowski, senior aerospace analyst at market research firm Forecast International. "A supersonic business jet would be the ultimate prestige aircraft."

And it has to be luxurious, Vice said. Aerion's AS2 plane will have a large cabin that can fit as many as 12 passengers, putting it in the same size category as the Gulfstream G550 or the Dassault Falcon 7X. The wider fuselage design is known in aviation jargon as a "double bubble" and will allow more foot space.

The aircraft will largely be made of carbon-fiber composites and is being designed to fly at Mach 1.2 without generating a sonic boom. The company has been working with Lockheed Martin Corp. on the air frame and aerodynamics since December.

Aerion had previously worked with Airbus Group on several design aspects, including structures and high-speed wind tunnel tests. That partnership ended last year. The European aviation giant wanted to learn more about how air flows over parts of the wing and was not interested in developing a supersonic business jet, said Bart Greer, an Airbus spokesman.

Aerion is also working with General Electric on the plane's engine, which is composed of an existing engine core that was modified to allow for more efficient subsonic and supersonic flight, Vice said.
Developing an entirely new engine might deliver more speed, but it would be expensive, said R. John Hansman, professor of aeronautics and astronautics at MIT. "You're paying a performance penalty for that, but it makes total sense."

Aerion's long-term plan envisions possibly developing a larger commercial supersonic airliner, which could start off as a 24-seater and grow to 100 to 150 seats, though Vice said that could be many years in the future.

In the meantime, the field is growing more crowded. Boom, whose supersonic jet would carry more passengers and is aimed at ticketed commercial service, has already secured a $10 million investment and a 20-aircraft pre-order from Japan Airlines, as well as pre-orders from British billionaire Richard Branson's Virgin Group.

https://www.postbulletin.com/news/business/supersonic-jet-maker-s-planes-won-t-go-boom/article_286f0cb6-9e6a-56ae-9946-85af90bab384.html


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ExecuJet's Dubai Facility Expands Lineage Capabilities

ExecuJet Middle East has increased its capabilities at its Dubai facility, adding full "M8" inspection services for the Embraer Lineage 1000 to its UAE GCAA and EASA Part 145 maintenance approvals. The maintainer, completing its first M8 inspection, also performed an ADS-B upgrade, other inspections, and structural service bulletin work on the bizliner.

The M8 inspection-conducted at 96 months, 4,800 hours, or 2,400 cycles-is the largest for the Lineage, ExecuJet said, adding that the work highlights its "commitment and investment to support this model and our customers."

ExecuJet is an authorized service facility for Embraer, General Electric, and Honeywell. These authorizations enable ExecuJet to process warranty and maintenance program claims for those manufacturers.

The international business aviation services firm's Middle East group provides line and base maintenance from Dubai International Airport, as well as line maintenance from its Dubai South location at Al Maktoum International Airport. The facilities have capabilities for the entire Embraer Executive Jets portfolio, including the Phenoms and various Legacys, in addition to the Lineage.

https://www.ainonline.com/aviation-news/business-aviation/2018-09-12/execujets-dubai-facility-expands-lineage-capabilities


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Era Group and Bel Air Aviation enter teaming agreement

HOUSTON, Sept. 12, 2018 (GLOBE NEWSWIRE) -- We are happy to announce that today Era Group and Bel Air Aviation have entered into a teaming agreement.

This new agreement means that the helicopter services offered by both companies will be further strengthened through a close cooperation. As the biggest commercial operator of AgustaWestland helicopters worldwide, Era will add fleet and support to the cooperation while Bel Air Aviation will contribute with operational and technical services for customers in Europe and particularly within the North Sea area. With the combined strengths and expertise of the two companies, we will be able to offer even better helicopter services to our customers with high flexibility, a very strong helicopter capacity and a reinforced base ensuring high expertise and knowhow within the helicopter industry.

Chris Bradshaw, President and Chief Executive Officer at Era Group
 
"We are excited to announce this new commercial partnership with Bel Air Aviation, a company that shares Era's core focus on safety and quality.  We look forward to working together with Susanne and her team to deliver flexible helicopter fleet solutions to customers in Europe."
Susanne Hessellund, Owner and Managing Director at Bel Air Aviation:
 
"We are really happy and excited that this teaming agreement has been made possible and we are convinced that this collaboration with Chris and the entire Era team will result in even more opportunities and higher flexibility to our customers since both our companies share the same fundamental values and prioritize safety, flexibility and reliability to ensure dedicated and customized service."
About ERA Group
 
With 70 years of experience, Era is one of the largest helicopter operators in the world and the longest serving helicopter transport provider in the U.S.  Era's helicopters are primarily used to transport personnel to, from and between offshore oil and gas production platforms, drilling rigs and other installations. In addition, Era's helicopters are used to perform emergency response services, firefighting, utility, VIP transport and other services.
About Bel Air Aviation:
 
Bel Air Aviation A/S was established in 1994 and is the only Danish owned offshore helicopter company servicing Oil & Gas and Wind. Bel Air has its main base at Esbjerg Airport and operates offshore flights to oil and gas installations as well as vessels and wind farms in the North Sea, Black sea and Baltic sea.

Bel Air is also AW189 fleet leader and the official Leonardo Helicopters Service Centre for AW139 and AW189 helicopters. Apart from inhouse service of helicopters, our highly skilled Maintenance team can also travel to assist our customers.

https://www.nasdaq.com/press-release/era-group-and-bel-air-aviation-enter-teaming-agreement-20180912-00577


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A Bottleneck Over an Engine Part Turns Jets Into 'Gliders'

It is aviation's version of the butterfly effect.

A single jet-engine part small enough to fit in the palm of your hand has worsened factory delays that are rippling from Boeing Co. and Airbus SE to maintenance shops around the globe, according to interviews with more than 20 people conducted by Bloomberg.

The problem centers on production hiccups for a new type of high-pressure turbine blades, engineering marvels that reap energy from a jet engine's fiery core. Warren Buffett's Precision Castparts Corp. and rival Arconic Inc.have been struggling to manufacture the airfoils and a handful of other parts for an upgraded engine made by a joint venture of General Electric Co. and Safran SA, said people familiar with the matter.

The bottleneck heightens the risk for Boeing and Airbus as they push output of their highly profitable single-aisle jets to dizzying heights. Dozens of "gliders" -- assembled aircraft that lack engines -- are clustered outside the planemakers' factories. The concern is that without significant investment in new capacity, the blade suppliers will crimp plans to push deliveries even higher as airlines clamor for planes to serve record travel demand.

The capacity squeeze is so worrisome that Precision Castparts, the leading source of the blades, cast from molten nickel alloys, sent letters notifying customers that it's not taking new orders -- a move that hasn't been previously reported. The company, owned by Berkshire Hathaway Inc., faces a double challenge: As it seeks to master a difficult manufacturing process, it must also boost output to meet an unprecedented surge in jet-engine production.

"It's a really wicked brew," Kevin Michaels, managing director at AeroDynamic Advisory, said of the forces pressuring Precision Castparts and Arconic. Since the companies cast and forge such a large share of the advanced blades, discs and vanes in jet engines, the suppliers can't be easily replaced.
Precision Castparts is known for its brutal efficiency, along with a $37 billion takeover that is one of Berkshire's largest deals. While sales for the first half of 2018 grew 6.5 percent from a year earlier, pretax earnings tumbled 8.2 percent -- in part due to "relatively complex manufacturing processes" on new aircraft programs, according to a filing.

A message left with Buffett's assistant wasn't returned. But Buffett defended the metals company's performance during his annual shareholder meeting in May, noting that aerospace manufacturers had turned to Precision Castparts when other suppliers failed to make deliveries.

"And we say, 'Well, we'd be glad to help you out. But we'd like about a five-year contract, if we're going to do it because we're just not going to make up for these other guys' shortfalls periodically, '" Buffett said.

Planemaker Risk 
The turbine-blade problems at CFM International, the GE-Safran venture, first came to light last year. But the hurdles, which the engine maker had expected to resolve by the end of 2017, have dragged on, said the people with knowledge of the situation, who asked not to be identified because the matter is private.

The four-to-six week delays to CFM's Leap engine peaked over the summer and should be eliminated before year-end, Safran executives said Sept. 6. Still, there's no margin for error with output of the advanced engine due to double by 2020. Airbus has stowed about 70 narrow-body planes, down from a peak of 100 in June, while Boeing has parked about 50 of its 737 aircraft as they await Leap engines or other parts.

 


The blade difficulties were the main factor that led Airbus to adjust an early internal target for Leap-powered A320neo deliveries this year, one of the people said. The company has faced even longer delays for a Pratt & Whitney engine that also powers the jet family.

Airbus still expects about 800 aircraft deliveries for the year, a spokesman said, adding that "resources and capabilities are mobilized and the engine manufacturers are working hard to meet their commitments." Boeing declined to comment and is expected to provide an update on the 737 at a conference this week.

The casting snag has also contributed to a shortage of turbine blades for older CFM powerplants, exacerbating maintenance delays. Adding to the headache for airlines: Rolls-Royce Holdings Plc also has a separate blade shortfall for the engine that powers the Boeing 787 Dreamliner. Scarce turbine components are extending some engine repairs by about one-third for American Airlines Group Inc.
"It's a worldwide issue with no engine manufacturers immune from it,'' David Seymour, American's senior vice president for integrated operations, told pilots in a meeting last month. "That's put a lot of strain on not only the new engine production but also overhauling engines," he said. American's flight schedule hasn't been disrupted, he added.

Declining Orders 
Precision Castparts said it was meeting production goals on "most" parts for CFM's Leap engine, including "the difficult Leap stage 1 double-walled blade." The company has sufficient capacity to meet its current contractual share and support future production rate increases, said Chief Operating Officer Al Power. He confirmed that Precision Castparts isn't taking new orders for spot purchases.

"Numerous customers have been trying to tie up additional capacity over and above current contractual share by submitting spot purchase orders" for a range of parts, Power said in an email. Now Precision Castparts is evaluating those requests against its capacity and commitments to other customers and "in many cases, we've been able to accommodate the additional volume," he said.
Arconic said it continues "to partner closely with our customers to ensure supply that supports their production and service needs." The metals company expanded capacity with a LaPorte, Indiana plant in 2015. Arconic said in July that it would spend $100 million to boost production at factories in Michigan and Tennessee "to meet growing demand from aerospace engine customers."

CFM declined to comment on the parts issue except to reiterate that the world's largest maker of jet engines expects to get Leap deliveries on track by year-end.

To get back on schedule, the company has sent in squads of experts, known internally as "tiger teams," to help improve suppliers' production processes, Sebastien Imbourg, a CFM executive vice president, told reporters in July.

"It was not a technology issue," he said, without identifying the suppliers that have struggled. "It was more a first-time yield issue on some very small number of parts, on forgings and castings."

Production Pressure 
It would be challenging enough for Precision Castparts to speed a process known as investment casting. The procedure starts with a wax mold dipped in a ceramic slurry, and ends with a turbine blade made from a single metal crystal capable of withstanding enormous forces and temperatures of 2,800 degrees Fahrenheit (1,540 degrees Celsius).

But to handle the Leap's hotter temperatures, GE created a more complex high pressure turbine blade. While the design is a closely held trade secret, a person familiar with it described a double-wall casting with a special core and advanced inner-wall cooling.

The new engine also has two high-pressure stages, said Michaels, the consultant at AeroDynamic Advisory, which means it has about double the 80 high-pressure turbine blades on an older model, the CFM56. That increases the workload for Precision Castparts and Arconic, and inconsistent quality can make things worse.

For a mature engine, the percentage of blades produced that meet a manufacturer's standards are typically in the 90 percent range, Michaels said. But the so-called first-time yield can be half that for a new and complex design like the Leap until production techniques are honed.

While the foundries have made progress, their yields can still fluctuate from week to week, and the inconsistency is affecting the smooth flow of parts like turbine blades, one of the people said.

Added Complexity 
Since the Leap blades and the CFM56 blades are wholly different products, "yield rates are not expected to be comparable due to the significant difference in complexity," said Power of Precision Castparts. "Our current yield rates for Leap blades are meeting planned levels for this point of production."

The pressure is acute for CFM, which is building different versions of its all-new Leap engine for the Max, Airbus's A320neo and Commercial Aircraft Corp. of China's C919. CFM delivered the first of the engines in 2016, and by 2020 must churn out 2,000 of them a year. That means the venture has less than five years to fine-tune production processes for the Leap that it finessed over a quarter-century for the engine's predecessor.

"In the past, the engine ramp-ups have been gentle. There's time and forgiveness," Michaels said. "Here, there's this unprecedented change in tempo."

Since CFM provides about 75 percent of the engines for the new Boeing and Airbus single-aisle models, the planemakers have a lot riding on whether the engine producer's castings and forgings suppliers quickly perfect highly complex work, said George Ferguson analyst with Bloomberg Intelligence.

"In the longer run, the only limitation on the number of engines they can supply is their desire to make the investment," he said.

https://www.bloomberg.com/news/articles/2018-09-11/buffett-s-bottleneck-on-jet-engine-blades-crimps-boeing-airbus


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Israeli moon lander to ride SpaceX rocket in Spaceflight's first move beyond low Earth orbit

 


SpaceIL's lunar lander is go for launch as a secondary payload on a SpaceX Falcon 9 rocket that's due to send a telecommunications satellite into geosynchronous orbit, Seattle-based Spaceflight announced today.

The launch, expected early next year, would represent the first Spaceflight rideshare mission to go beyond low Earth orbit. And Israel-based SpaceIL's mission would represent the first non-governmental landing on the moon.

Spaceflight timed its announcement to coincide with Euroconsult's World Satellite Business Week conference in Paris. It said rideshare opportunities to geosynchronous transfer orbit, or GTO, would be made available every 12 to 18 months, or as customer demand requires.

Although Spaceflight didn't identify the primary payload for Spaceflight's first GTO mission, it's thought to be the PSN-6 telecommunications satellite, which was built for Indonesia's PT Pasifik Satelit Nusantara by SSL, a Maxar Technologies subsidiary. This would be the first combined launch for Spaceflight and SSL.

"We're focused on getting our customers' spacecraft into orbit in the most expeditious, cost-effective manner possible," Spaceflight President Curt Blake said in a news release. "The rideshare model is beneficial to everyone; the primary spacecraft as well as all the secondaries pay less than if they contracted to launch individually. In addition, working with a reliable partner like SSL to fulfill our first GTO mission increases our ability to service this growing destination. We're looking forward to making GTO a routine and affordable destination for our clients."

The mission plan calls for several of Spaceflight's rideshare payloads to be deployed from geosynchronous transfer orbit. SSL's host spacecraft would then continue onward to geosynchronous orbit, where the remaining rideshare satellites would be separated.

 
SpaceIL Presents: The Mission

 
Spaceflight didn't identify any of the payloads other than SpaceIL's, and didn't disclose the prices that were paid. Spaceflight, which provides satellite rideshare and mission management services in league with a wide range of launch providers, is a subsidiary of Seattle's Spaceflight Industries.
David Bernstein, senior vice president of program management at SSL, hailed Spaceflight's "innovative approach to aggregating launches and bringing a more cost-effective launch model to the industry as a result."

"Working as a team with Spaceflight and SpaceX, we are enabling a unique mission that ultimately accomplishes a translunar injection, prior to dropping off other payloads on our way to geostationary orbit for the primary communications satellite," Bernstein said.

SpaceIL was one of the competitors in the $30 million Google Lunar X Prize, which was terminated early this year when organizers determined that none of the teams could get to the moon before the March deadline.

During a July news conference in Israel, SpaceIL's team leaders said they expected to have their spacecraft launched by the end of this year, kicking off an energy-efficient, two-month trip to the moon. At the time, their schedule called for the 600-kilogram (1,300-pound) lander to touch down on the lunar surface on Feb. 13, 2019, but that schedule may have to be revised to reflect a later time frame for the launch.

After landing, the spacecraft would send back photos and videos as well as data about the moon's magnetic field.

SpaceIL's organizers say about $88 million has been invested in the effort, mostly from private donors but also from organizations including the Israel Space Agency; Israeli's Ministry of Science, Technology and Space; and the Weizmann Institute of Science. SpaceIL President Morris Kahn, an Israeli billionaire investor, reportedly has donated $27 million.

Update for 5:12 p.m. PT Sept. 11: Spaceflight says the launch is scheduled for early 2019.

https://www.geekwire.com/2018/spaceil-moon-spaceflight-ssl-spacex/

Curt Lewis