Flight International - 31 January 2017 - 6 February 2017

Hogan’s run

Partnerships in the crosshairs as Abu Dhabi overhaul sees Etihad boss head for exit 11

Stargazing

Fighting back

We read the signs as Safran targets Zodiac merger and a rapid ascent in aerospace 17

Indian air force ups the pace to restock rapidly dwindling fleet of operational combat jets 26

31 January-6 February 2017

flightglobal.com

MANUFACTURING

Still top of the props Why ATR can take its time on route to making even bigger hit

ISSN 0 0 1 5 - 3 7 1 0 £3.70 0 5

9

770015 371297

SEE & BE SEEN

Order. Install. Done. Our ADS-B Products are Certified and Ready for Delivery. You don’t want to wait to get ADS-B compliant–and now you don’t have to. Certified and available now for installation, the NXT line of transponders (NXT-600/700/800™) meets the ADS-B requirement for air transport, military, regional and business jet operators. More than 1,000 ADS-B transponders produced by ACSS, an L3 and Thales Company, are already flying worldwide. With the ACSS NXG-900 WAAS GPS, aircraft operators have a turn-key solution to meet ADS-B mandates worldwide. What are you waiting for? Email [email protected]

Aviation Products

L3T.com

CONTENTS

Volume 191 Number 5572 31 JANUARY-6 FEBRUARY 2017

NEWS Partnerships in the crosshairs as Abu Dhabi overhaul sees Etihad boss head for exit 11

Stargazing

THIS WEEK 8 P&W responds to ‘growing pains’ of geared turbofan engines 9 Design changes force latest MRJ delay 10 Indian navy issues details for carrier-borne fighter contest. Fresh orders vital to keep up with 787 rate rise. Airbus delivers warning to UK over Brexit fears 11 Hogan’s run ends as Etihad takes stock

Fighting back

We read the signs as Safran targets Zodiac merger and a rapid ascent in aerospace 17

Indian air force ups the pace to restock rapidly dwindling fleet of operational combat jets 26

31 January-6 February 2017

flightglobal.com

MANUFACTURING

Still top of the props Why ATR can take its time on route to making even bigger hit

NEWS FOCUS 12 SFO details R-R corruption allegations

ISSN 0 0 1 5 - 3 7 1 0 £3.70

FIN_310117_301.indd 1

770015 371297

ATR

0 5

9

26/01/2017 09:54

COVER IMAGE Airbus/Leonardo joint venture ATR provided this shot of new customer Japan Air Commuter’s first of nine ATR 42-600s, handed over in Toulouse in late January P18

AIR TRANSPORT 14 Collins chief believes orders may not rebound until 2020. ‘Line of sight’ hazy for United 767 replacement. Weak demand set to persist for narrowbodies 15 Thrust reduction behind 767 tail-strike. First ATR 42-600 lands for Japan Air Commuter 16 US carriers put hopes in Trump’s protectionism. Cimber buy tightens CityJet ties to SAS. R-R and AerCap cooperate on support plan for leased engines NEWS ANALYSIS 17 Will stars align for Safran and Zodiac? DEFENCE 20 F-35 contract talks closer to resolution. Fallon asks Airbus to maintain A400M progress 21 Scorpion could hit target for USAF’s light low-cost fighter. Nairobi gains approval to buy armed AT-802s 23 Engine supplier tackles Osprey stall risk

BEHIND THE HEADLINES Michael Gubisch (pictured) caught up with ATR‘s new boss, Christian Scherer, in Toulouse, where the chief executive outlined his big ambitions for the future with the European family of twin-turboprops (P18)

Boeing advances plans to boost 787 output P10

COVER STORY

18 ATR boss seeks concord over strategy Turboprop manufacturer’s new chief executive seeks to bring harmony to joint venture and stay ahead of competition

FEATURES 26 INDIA SPECIAL REPORT Losing its edge Ahead of the biennial Aero India show, we look at how the nation’s air force is striving to arrest a rapid decline in its combat strength via acquisitions and partnerships 30 Learning curves With the oldest of its training assets dating back to the early 1970s and growing demand for new pilots, India’s air force is pursuing ambitious development projects 33 Ready to attack Modernising India’s helicopter fleet through acquisitions and upgrades will secure its rotary credentials for the coming years, with indigenous projects key to the force mix

REGULARS 7 Comment 35 Straight & Level 37 Classified 38 Jobs 43 Working Week

Airbus

Lockheed Martin, US Marine Corps

BUSINESS AVIATION 24 Buyers take to updated TBM 930. Loose ends delay Bliss Jet transatlantic service 25 Supersonic start-ups ready prototypes. GI Aviation drums up demand for its Pilatus PC-12NG commercial service. CASL builds up its business jet MRO capability

AirTeamImages

Hogan’s run

NEXT WEEK MRO We look at the challenges involved in maintaining the A380. Plus, an overview of US air-launched weapons

Lockheed to complete deal for 90 Lightning IIs P20. R-R addresses Osprey’s surge and stall events P23

Download thethe new Commercial Engines Directory Download latest Commercial Engines Report

Download The Engine Directory.

now with enhanced data and market now with further enhanced datain-depth and in-depth marketanalysis analysis

flightglobal.com/ComEngDirectory flightglobal.com/commengines flightglobal.com/commengines13 CFM 2015 strip ad.indd 1

flightglobal.com

Flight_CFM_25x180.indd 1

10/06/2015 13:06

31 January-6 February 2017 | Flight International | 3

19/07/2012 17:51

CONTENTS

Image of the week A Royal Air Force Typhoon is pictured while shadowing the warship Pyotr Velikiy and aircraft carrier Admiral Kuznetzov as the Russian battle group returned home from its role in supporting Moscow’s intervention in Syria. Flight Fleets Analyzer shows the RAF has 109 Eurofighters in service

Crown Copyright

View more great aviation shots online and in our weekly tablet edition: flightglobal.com/ flight-international

The week in numbers

Question of the week

10%

Last week, we asked: Italy’s new attack helicopter? You said:

Airbus

Total votes:

Percentage of passengers who arrived at or departed from London Heathrow airport last year aboard an Airbus A380

$207m

671

Just job-creating spin 515 votes

77%

Could hit export targets 103 votes

FlightGlobal Dashboard

Russia’s Orenair could face bankruptcy, after Aeroflot filed claims against the Rossiya subsidiary totalling Rb12.5 billion

60

15%

Sure-fire winner 53 votes

8%

FlightGlobal Dashboard

Number of destinations to be served by Spirit Airlines, as the Florida carrier begins flights to Hartford, Connecticut in April

This week, we ask: Airbus in the UK? ❑ Will stay put regardless ❑ Hinges on Brexit terms ❑ Gone within five years Vote at flightglobal.com

FlightGlobal’s premium news and data service delivers breaking air transport stories with profiles, schedules, and fleet, financial and traffic information flightglobal.com/dashboard

Download the Military Simulator Census online now. CAE offers training centres, training services, and simulation products for maritime patrol aircraft.

4 | Flight International | 31 January-6 February 2017

www.flightglobal.com/milisim

flightglobal.com

The PurePower® GTF™ Engine Geared for the future. Transforming aviation today.

Airline operators are excited about the breakthrough fuel savings and unrivaled noise reduction they’re seeing from the GTF innovation today. Especially knowing they’ll stay years ahead of competitors that choose the engine based on conventional technology. Cleaner, greener and quieter. Experience the engine that’s geared for the future – flying today – at www.pw.utc.com. Connect with us

The flexibility to fly as many cycles as you want, to the destinations you want, as often as you want. LEAP. The architecture of reliability. cfmaeroengines.com CFM International is a 50/50 joint company between GE and Safran Aircraft Engines

PERFORMANCE | EXECUTION | TECHNOLOGY

MORE TO BELIEVE IN

COMMENT

Trading blows When it comes to free trade, Donald Trump and the UK’s Brexiteering government see the world in very different ways. However, aviation seems unlikely to benefit from either approach

he election of Donald Trump and the UK’s vote to quit the EU were the seismic political events of 2016. Often compared as popular revolts against liberal elites, big government and open immigration, the billionaire celebrity’s administration and Brexit are, in fact, sending their countries on very different courses. Each could be damaging to aviation. Trump’s instincts are protectionist. He wants to penalise importers that destroy American jobs. He has signalled the USA’s withdrawl from the Trans-Pacific Partnership trade agreement and threatened tariffs on goods made in Mexico and sold in the USA – including components that end up on US-assembled aircraft. Although he has not named Airbus, foreign-built airliners too could fall foul of America First policies. He may also be sympathetic to calls to restrict access to “subsidised” Gulf carriers and Norwegian’s long-haul Irish subsidiary, accused of circumventing labour laws.

The UK wing plant and its supply chain are enmeshed into Airbus’s European production system But “protecting jobs” by imposing tariffs on imports rarely works, simply rewarding inefficiency and fuelling inflation. Similarly, airline deregulation has been one of the successes of the modern era, boosting competition by bringing down entry barriers and fares. By contrast, Prime Minister Theresa May’s government favours free trade. It paints Brexit as an opportunity for the UK to forge open relationships with nations around the world – including the USA. However, an acrimonious divorce settlement with Brussels could make life difficult for UK exporters selling into what is

Design Pics Inc/REX/Shutterstock

T

Barriers to trade rarely work

currently their biggest market – Europe. While this has implications for the dominant service sector, there is a big threat to Airbus UK. Its wing plant and the supply chain serving it are enmeshed into the Airbus production system. As the airframer’s Tom Williams warns, customs regulations and restrictions on movement of talent could have drastic consequences. Its headquarters may be in Toulouse, but Airbus – along with the likes of Rolls-Royce and Jaguar Land Rover – is the pride of UK manufacturing. While leaving the single market would not force the closure of Broughton and Filton overnight, it could impact future investment decisions by Airbus, including where to develop and build wings for new programmes. The outcomes of 23 June and 8 November shook the world. Here’s hoping that by pursuing policies they think will please their eager-for-change electorates, these new leaders do not end up damaging the very economies the people have entrusted them with. ■ See This Week P10

Harder than you think D

Stay up to date with the latest news and analysis from the commercial aviation sector: flightglobal.com/dashboard

flightglobal.com

efending the latest delay to its MRJ programme, Mitsubishi Aircraft official Yugo Fukuhara notes: “Building and certifying a new aircraft is a very complex process and includes a lot of challenges.” Mitsubishi will not appreciate the comparison, but its regional jet is beginning to share more than just a pair of letters with Comac’s ARJ21. The latter, lest we forget, finally entered service in 2016, eight years late. With its latest slip, the MRJ will now make its commercial debut in 2020 – seven years behind schedule. But there the comparison ends. The MRJ is intended as a next-generation regional aircraft with an international customer base, while the ARJ21 is a stepping-stone, offering yesterday’s technology today.

Although the MRJ’s customers in the USA may express their frustration, the fresh delay does not significantly inconvenience them, as pilot scope clauses will prevent its deployment there until 2019 at the earliest. However, the real worry for the fledgling airframer is the competitive advantage it is ceding to rival Embraer. The MRJ should have had a seven-year head-start over the E175-E2, but assuming current schedules hold, that has now been whittled down to just 12 months. Yes, the E2 also suffers from the scope clause issue, but Embraer has a family of jets to rely on – and a current-generation product it will continue to sell. Meanwhile, the clock is ticking for the MRJ. ■ See This Week P9 31 January-6 February 2017 | Flight International | 7

THIS WEEK

For the latest news, photographs and interviews from the aviation industry visit flightglobal.com/news

BRIEFING PENALTY Boeing took a combined $312 million in charges against its KC-46A development activity in the fourth quarter of 2016, bringing its total overspend to more than $2 billion. The fresh expense is related to previously-identified wiring changes required for the US Air Force’s 767-based tanker. Boeing chief executive Dennis Muilenburg notes: “While the development programme has been challenging, this is a great franchise that will go on for decades.”

CFM TARGETS 500 LEAP DELIVERIES IN 2017 PROPULSION GE Aviation intends its CFM International joint venture with Safran to deliver “something close to 500” Leap engines this year. CFM shipped 77 of the new powerplants in 2016, against a planned total of 100. GE chief financial officer Jeff Bornstein says the Leap-1A’s reliability is “excellent”, and that the engines are “performing to spec”.

RAYTHEON EJECTS FROM T-100 PARTNERSHIP WITHDRAWAL Raytheon and Leonardo have abandoned their joint offer of the T-100 for the lucrative T-X trainer requirement, having been “unable to reach a business agreement in the best interest of the US Air Force”. The pair had formed a team in February 2016 to offer a development of the Aermacchi M-346. The USAF is expected to select a replacement for its aged Northrop T-38 fleet later this year.

CRASHED FREIGHTER YIELDS VOICE DATA INVESTIGATION Russia’s Interstate Aviation Committee has extracted conversation data from the cockpit-voice recorder recovered from the ACT Airlines-operated Boeing 747-400F that crashed in Bishkek on 16 January. The committee says it has obtained data up to the point of impact with the ground. Kyrgyzstan’s government says 39 people died in the incident, including the freighter’s four crew members.

PAL A320 LANDING MISHAP FACES SCRUTINY SAFETY Investigators are probing a landing incident at Kalibo involving a Philippine Airlines (PAL) Airbus A320 arriving from Cebu on 10 January. France’s BEA investigation authority states that the aircraft (RP-C8613) touched down 485m (1,590ft) after the threshold, with its left main landing-gear 4.7m off the left side edge of runway 05.

UKRAINE INTERCEPTS ILLEGAL WEAPONS CACHE CARGO Security services at Kiev Zhulhany airport intercepted a cargo of weapons on an aircraft bound for the Middle East. The Ukrainian state security agency, SBU, says 17 boxes were found on the aircraft that had no supporting documentation. Inspection of the cargo turned up components for Soviet-era guided anti-tank missile systems, and for military aircraft. The SBU has not detailed the aircraft operator or the planned route.

NOMINATION TIME: AIRLINE STRATEGY AWARDS INDUSTRY The nomination process for FlightGlobal’s Airline Strategy Awards 2017 has been officially launched, with this year’s event being staged in association with executive search firm Korn Ferry. The results of the 16th annual awards – split across six categories – will be announced in London on 9 July.


AirTeamImages

BOEING TANKER OVERSPEND TOPS $2BN

IndiGo operates PW1100G-powered variant of the Airbus A320neo MANUFACTURING STEPHEN TRIMBLE WASHINGTON DC

P&W responds to ‘growing pains’ of geared turbofans

Early feedback from operators highlights durability fears but engines are hitting fuel-burn targets, say UTC bosses

P

ratt & Whitney will supply two upgraded parts to geared turbofan (GTF) engine operators later this year that should meet durability standards, says Greg Hayes, chief executive of parent company United Technologies. Speaking on a full-year earnings call on 25 January, Hayes acknowledged that some GTF operators, especially in India, have reported reliability concerns about a fuel seal and a combustor liner. Although not named, Flight Fleets Analyzer lists Indian carriers GoAir and IndiGo as operators of PW1100G-powered variants of the Airbus A320neo. In response to those concerns, P&W will deliver upgraded parts for retrofit later this year. Meanwhile, P&W has dipped into a pool of spare engines to help meet aircraft dispatch targets, he says. “These are just normal growing pains on any new engine,” Hayes adds. “Nothing that’s causing us to lose a lot of sleep.” Aside from the Neo, P&W’s geared turbofan powers the inservice Bombardier CSeries family, but different versions will also equip the Embraer EJet-E2 family, Irkut MC-21 and the Mitsubishi Regional Jet. Neither issue with the combustor liner or the oil seal is related

to the reduction gearbox at the heart of the geared turbofan engine’s architecture, Hayes says. Indeed, the reduction gearbox, which de-couples the rotation speeds of the low-pressure turbine and the inlet fan to optimise fuel efficiency, seems to be working, with the PW1100G for the A320neo and PW1500G for the CSeries meeting fuel-burn targets. “The good news is that this time at least those key performance characteristics have been met right out of the box, and that’s unusual. So the geared turbofan architecture is holding up very well,” says chief financial officer Akhil Johri. P&W also expects to resolve a parts shortage problem that drastically slowed geared turbofan engine deliveries to Airbus and Bombardier last year. Of about 1,200 components inside the engine, P&W is still concerned about the availability of six as the production ramp-up continues, Hayes says. In September 2016, Hayes said one of the most critical parts shortages involved the engine’s unique, hybrid-metallic fan blades. But the propulsion specialist remains on track to deliver between 350-400 engines this year, Hayes adds. ■ flightglobal.com

THIS WEEK

Fresh orders vital to keep pace with 787 rate rise This Week P10 PROGRAMME MAVIS TOH SINGAPORE

Design changes force latest MRJ delay Alterations required to regional jet’s avionics bay push first delivery to 2020, now seven years behind original schedule apan’s Mitsubishi Aircraft has pushed back delivery of its developmental MRJ by two years as it battles to implement crucial design changes required on the regional jet. Significant alterations are needed to the type’s avionics bay, the Japanese manufacturer announced on 23 January, with a number of components requiring relocation and wiring harnesses consequently needing to be rerouted. Yugo Fukuhara, vice-president and general manager of sales and marketing at Mitsubishi Aircraft, says the issue first surfaced in autumn 2016 during a design review. This determined that the design alterations would be necessary for the MRJ to meet certification requirements for continued operation in extreme situations, such as water leaking from the cabin into the avionics bay. Although Fukuhara stresses that the changes will not affect the MRJ’s performance, either on range or fuel consumption, they will push certification to 2019 and first delivery to 2020. “We are conducting the preliminary design review for the design-change area and will get into the critical design phase in a few months,” he says.

Mitsubishi says its four operational flight-test aircraft will continue with the ongoing certification effort in their current configuration. The manufacturer will, however, introduce additional prototypes with the changes incorporated. Fukuhara says parent company Mitsubishi Heavy Industries (MHI) will be more directly involved in the MRJ’s development in future, as well as making greater use of external expertise to “fast track” the jet’s development. “Building and certifying a new aircraft is a very complex process and includes a lot of challenges. But this is a longterm business and we at Mitsub-

Mitsubishi Aircraft

J

Prototypes will continue flight-test activities in current configuration ishi Aircraft and MHI are committed to the business,” he says. When the regional jet programme was launched in March 2008, the target was for the first aircraft to enter service in late

2013, although this was subsequently revised to mid-2018. Mitsubishi has commitments for 427 aircraft, comprising 233 firm orders and 194 options and purchase rights. ■

ORDERS JON HEMMERDINGER BOSTON

US customers frustrated, but scope clauses are real deal breaker Mitsubishi Aircraft’s two key US customers – who between them account for nearly 65% of the firm order backlog for the MRJ – have so far stayed largely silent on the latest delay to the programme. Trans States Holdings, which holds orders for 50 aircraft, plus 50 options, says it is “disappointed by the additional delay”. Meanwhile, SkyWest Airlines confirms its 100-aircraft commitment, with an additional 100 op-

tions, remains in place. “Our conditional firm orders of the MRJ aircraft remain unchanged, and are dependent on flying contracts and scope availability.” Both companies, either directly or through operating subsidiaries, provide regional services on behalf of the US mainline carriers. And it is those relationships, and pilot scope clauses, on which the MRJ’s success in the USA rests. Those provisions, written into

contracts between mainline airlines and their pilots, largely restrict regional carriers to operating aircraft with no more than 76 seats and a maximum take-off weight (MTOW) of 39,000kg (86,000lb). The MRJ90 has a 39,600kg MTOW and was designed to carry about 80 seats in a two-class layout. The earliest any of the contracts with the big three US mainline carriers could change is 2019. ■

DEVELOPMENT

Hindustan Aeronautics

HAL has i on future with latest Hawk

flightglobal.com

India’s state-owned Hindustan Aeronautics (HAL) has rolled out an upgraded version of BAE Systems’ Hawk 132 advanced jet trainer, named the Hawk i. The aircraft features an indigenously developed mission computer, digital map generation, an embedded virtual training system, secure voice communications and data link capability. To be flown during the 14-18 February Aero India show in Bengaluru, the specially liveried aircraft is the 100th Hawk 132 to have been built under licence by HAL. The airframer is to retain it as a test platform for the Hawk i standard, and also to support other future upgrades. New Delhi has so far ordered a combined 123 Hawk 132s for its air force and navy. See Feature P30


THIS WEEK

Airbus delivers warning to UK over Brexit fears

A

irbus’s chief operating officer has warned a UK parliamentary committee of the risks of disrupting the airframer’s strategic model, during a session on the future relationship with the EU. Tom Williams outlined to the treasury committee his concerns over potential complications – such as customs regulations and restrictions on “movement of talent” – arising from the UK’s exit from EU membership. He stresses that Airbus is “still highly committed” to the UK, because it serves as an integral part of the manufacturer, but that any macroeconomic changes or “blockage” to its operations could result in a rethink “in the longer term”. Williams told the committee on 24 January that Airbus was the reason that Europe was able to compete effectively with the USA in the aerospace sector, and that if Airbus did not exist “we’d have to create it”. He said a failure to maintain a seamless operation for Airbus’s UK division would be “a really big concern for us”. ■

REQUIREMENT MIKE RAJKUMAR BENGALURU

Indian navy issues details for carrier-borne fighter contest Acquisition of new type will deal blow to maritime development of indigenous Tejas jet

T

he Indian navy’s formal requirement for 57 multirole carrier-borne fighters (MRCBF) has been advanced via a request for information (RFI) issued by the nation’s defence ministry. Responses are due by 24 May, with the service detailing its requirements in a 59-page document. In its RFI, the navy calls for a fighter that can undertake roles ranging from air defence and surface strike to reconnaissance and electronic warfare, and which is capable of performing “buddy” tanking. The request also expresses an interest in licence production of the aircraft with related transfer of technology. A substantial weapons capability is also requested, in addition to the possibility of integrating existing and future weapons and avionics systems of Indian, Russian and Western origin. Information is also being sought on whether the aircraft has a swing-role capability for the simultaneous carriage of strike weapons and air-to-air missiles. Some under-wing pylons should

US Navy

MANUFACTURING DAVID KAMINSKI-MORROW LONDON

For up-to-the-minute air transport news, network and fleet information sign up at: flightglobal.com/dashboard

Rafale M is among trio of potential candidates for 57-aircraft deal be capable of carrying stores weighing up to 1,500kg (3,300lb), with the ability to release weapons from an altitude of 40,000ft. The selected type will operate from indigenously developed aircraft carriers that are currently under construction. While the first of these – the INS Vikrant – features a ski-jump layout with short take-off but arrested recovery, the configuration of a second vessel has yet to be frozen. Contenders for the MRCBF requirement are the Boeing

F/A-18E/F Super Hornet, Das sault Rafale M and the RAC MiG29K. The last of these types is already in Indian navy service. New Delhi’s request for information delivers a blow to its indigenous efforts to develop a naval variant of the Tejas light combat aircraft (LCA), which have been under way since 2003. The Aeronautical Development Agency expects to begin flying LCA navy Mk2 prototypes from 2020. ■ See Feature P26

PRODUCTION STEPHEN TRIMBLE WASHINGTON DC

Fresh orders vital to keep pace with 787 rate rise

AirTeamImages

B

The Dreamliner programme still has $31 billion of unamortised costs 10 | Flight International | 31 January-6 February 2017

oeing is pressing forward with plans to raise 787 output to 14 aircraft per month by the end of the decade, but still has dozens of order slots to fill as company executives begin a final evaluation of the ramp-up decision. After raising monthly production, from 10 to 12 aircraft, last May, Boeing is already delivering 787s at a faster rate than for any widebody aircraft in history. Pushing output even higher would help Boeing offset declining cash-flow from the 777 programme and claw back savings

from a $31 billion stockpile of deferred production and unamortised tooling costs still hanging over the Dreamliner. Raising production by 16.7% by the end of the decade carries some risk that the once-mighty order backlog for the 787 will not be able to keep up with an annual delivery rate of 168 aircraft. As of 25 January, Boeing had 691 remaining orders for the 787. “That is a very strong position to be in,” Boeing chief executive Dennis Muilenburg argued on a fourth-quarter earnings call. ■ flightglobal.com

THIS WEEK

SFO details R-R corruption allegations News Focus P12 LEADERSHIP GRAHAM DUNN LONDON

Hogan’s run ends as Etihad takes stock Imminent departure of group chief executive signals increasing impatience in Abu Dhabi over equity partnership strategy

C

flightglobal.com

acknowledgement that its investments are under scrutiny. “We must progress and adjust our airline equity partnerships even as we remain committed to the strategy,” states chairman Mohamad Mubarak Dadhel Fadhel Al Mazrouei. That suggests no about-turn on the broader investment strategy, but underlines the fact that Abu Dhabi is not prepared to maintain the status quo.

CAPITAL CHALLENGES

BillyPix

onfirmation that James Hogan is to step down from the helm of Etihad Aviation Group – along with chief financial officer James Rigney – in the second half of the year underlines the seriousness with which restructuring is being pursued at several of its airline investments. While stressing its commitment to the strategy, the Abu Dhabi group has flagged the need to “progress and adjust” its airline partnerships. As the drastic reshaping of Air Berlin illustrates, Abu Dhabi is ratcheting up the pressure on investments that are failing to deliver; crunch talks on Alitalia’s future are ongoing. Given this context, the departure of the architect of the equityalliance strategy indicates that patience is wearing thin in the Middle East. Hogan joined Etihad a decade ago from Gulf Air, and was charged with putting the Abu Dhabi-based carrier on the global map – and quickly. Though it was just three years old and operated a fleet of around 20 aircraft at the time, Abu Dhabi’s intentions for Etihad to take its place as a global player were already clear. “While it is relatively young, Etihad has already established a reputation for energy and speed, evident in its unprecedented growth and the development of its state-of-the-art fleet and product,” said Hogan on taking the job in October 2006. “I believe we can build on this to position Etihad as a leader in the international and local markets.” Hogan quickly issued a statement of intent with major orders for Airbus and Boeing aircraft at the 2008 Farnborough air show. Flight Fleets Analyzer shows the airline today operates 121 aircraft – with an average age of under seven years – including marquee types like Airbus A380s and Boeing 787s, with more than 200 aircraft on order or optioned after further spending sprees.

Ex-Gulf Air boss has overseen rapid growth since taking role in 2006 The airline transported around 18.5 million passengers in 2016, compared with fewer than three million in 2006. That still leaves Etihad outside the biggest 50 carriers in terms of passenger numbers, but its large share of long-haul operations means it ranks among the 20 largest global carriers in terms of revenue passenger kilometres.

MAINLINE REVENUES

It is also knocking on the door of the 20 biggest operators in terms of revenue. In 2015, the last year for which figures are available and before Etihad established its group structure, mainline airline revenues of just over $9 billion placed it just outside the top 20 biggest airlines by that metric. But Etihad’s growth tells only half the story. What has set it

Etihad Aviation Group Carrier

Stake (%)

Air Berlin

29

Air Serbia

49

Air Seychelles

40

Alitalia

49

Etihad Regional*

33

Jet Airways

24

Virgin Australia

25

Source: FlightGlobal Dashboard Note: *Formerly Darwin Airline

apart from Gulf rivals Emirates and Qatar Airways has been its use of an equity alliance strategy to accelerate its growth. The airline has invested in seven carriers across the globe – excluding its brief dalliance with Aer Lingus. Hogan, speaking at the Global Airfinance Conference in Dublin in January, pointed to the 5.5 million passengers its codeshare and partnership strategy delivered the carrier in 2016. This is close to a third of its total passengers, delivering additional revenues and “allowing us to fill our onward connecting flights,” said Hogan. He says this helped develop Etihad into a diversified network with revenues of more than $26 billion. He has long defended the strategy against repeated criticism, insisting that it was not “the old Swissair model” of acquiring stakes in a series of struggling European carriers, which ended with its collapse in 2001. But while Etihad’s investments have supported the growth of the airline and Abu Dhabi, and some are now turning a profit, the acquisition of stakes in loss-making carriers has brought some pain. Crucially, the 24 January confirmation that Hogan will leave the carrier also includes an

It is on Air Berlin and Alitalia that the focus of scrutiny appears to fall. Indian carrier Jet Airways has already returned to profit – and traffic flows between the Middle East and the Indian subcontinent make it a logical partnership. Another investment, Virgin Australia – while not without its capital challenges – also returned to underlying profit last year. The relatively smaller investments in Air Seychelles and Air Serbia have yielded modest returns, while the picture is unclear around European regional operator Darwin Airline, rebranded as Etihad Regional. Hogan acknowledges that work has been needed at Air Berlin – loss-making in virtually every year since Etihad acquired it – and Alitalia, which also needs further work to meet its profit goals. Hogan has always maintained Etihad is not a bank when it comes to its investments, pointing out that “everything we touch has to make a return”. That determination, it now appears, is being firmly tested. Etihad has itself reported relatively modest returns since reaching breakeven in 2011 and in December announced its own “measured reduction” of headcount. But only when Hogan’s successor is in place will it become clear the extent to which the group will continue to embrace the equity-alliance strategy. ■


NEWS FOCUS


INQUIRY GREG WALDRON SINGAPORE

SFO details R-R corruption allegations UK body lays out graft claims which engine manufacturer has agreed to settle via a deferred prosecution arrangement igh-profile Asia-Pacific airlines feature prominently in the UK Serious Fraud Office’s (SFO) list of allegations against engine maker Rolls-Royce. R-R will not be prosecuted in relation to the allegations, but will pay a financial penalty under a deferred prosecution agreement. Chief executive Warren East said the company’s behaviour had been “completely unacceptable” and that it was “unreservedly” apologetic. In its Statement of Facts document, the SFO lists 12 counts against the UK engine manufacturer. Of these, seven mention Asia-Pacific carriers. One pertains to the AirAsia Group, one to China Eastern Airlines, three to Thai Airways, and two to Garuda Indonesia. The allegations cover a period from 1989 to 2013. Two other counts relate to Indian defence acquisitions, and three to deals in the Indonesian, Nigerian and Russian energy sectors.

India ‘consulting’ Despite the use of intermediaries in defence acquisitions being prohibited by the Indian authorities, to the extent of breaches invalidating some contracts and causing a company to be banned from future bidding, R-R continued to employ an intermediary in the country. The manufacturer created contractual documents which showed the intermediary, who acted for the company in several deals related to the supply of Rolls-Royce Turbomeca Adour engines, as being paid for “general consultancy services” rather than commissions for the relevant defence contracts. In addition, R-R paid the individual to retrieve a list of its other intermediaries which had come into the possession of the Indian tax authorities.

Airbus

H

China Eastern claims relate to purchase of Trent 700s for A330 fleet

AIRASIA

Count 12 relates to AirAsia Group and covers the most recent allegations. The SFO document names no individuals, but accuses R-R of having “failed to prevent bribery” by allowing employees to provide an “AirAsia Group executive” with credits to help pay for the maintenance of a privately owned Bombardier Global business jet. An initial approach was made in 2011 by a senior employee of AirAsia X seeking information about a R-R engine maintenance programme for private jet engines that the AirAsia Group executive was planning to buy. Over the next two years, R-R executives and the company’s compliance department struggled with how to deal with the issue. However, ultimately it applied to an AirAsia X engine deal a $3.2 million credit, later used to enable the executive’s business jet to enter the R-R CorporateCare programme. AirAsia did not respond to a FlightGlobal request for comment.

CHINA EASTERN AIRLINES

In the summary of the China Eastern count, R-R is accused of having “failed to prevent its employees from providing a $5 million cash credit to China Eastern Airlines at the request of a board member, in return for his show-


ing favour to R-R… in the purchase of Trent 700 engines for [Airbus] A330 aircraft, and associated TCA [TotalCare agreement]. Some or all of the funds were intended to be used by [China Eastern] to pay for a twoweek Master of Business Administration course at Columbia University in New York to be attended by various [China Eastern] employees, and including four-star hotel accommodation and lavish extracurricular activities.” An accompanying list of facts indicates that the China Eastern board member first broached the idea in August 2010, and after some discussions R-R acceded to the request. R-R compliance and legal professionals expressed concerns about the programme, but it appears executives felt pressure to meet the expectations of a powerful customer.

GARUDA INDONESIA

The Garuda Indonesia counts cover two periods: January 1989 to December 1998 and July 2011 to March 2012. In the first count, it is alleged that senior R-R employees agreed to pay $2.25 million and a Silver Spirit car, made by the unrelated Rolls-Royce automotive business, to “Intermediary 1”, with an inference that the

intermediary “acted as an agent of the office of the President of Indonesia and that this money was a reward for Intermediary 1 showing favour to Rolls-Royce in respect of a contract for Trent 700 engines”. The second Garuda count alleges an “inference that R-R failed to prevent its intermediary… from bribing employees of Garuda” in order to win contracts. Despite some R-R employees being aware of evidence of the corrupt activity, R-R “failed to sever its relationship with the intermediary until March 2012, having already made two commission payments totalling in excess of $1 million in that month.” In response to a FlightGlobal enquiry, Garuda says it is “still working internally upon the case”.

THAI AIRWAYS

The three counts relating to Thai Airways are tied to the periods June 1991 to June 1992, March 1992 to March 1997 and April 2004 to 2005, and all involve the acquisition of Trent engines. It is alleged in the three counts that R-R agreed to pay intermediaries approximately $36.3 million, intended for people who would act in its favour. Thai says: “In the case of RollsRoyce having admitted to the Serious Fraud Office of the United Kingdom on allegations of bribery in a number of countries including Thailand from 19912005, Thai confirms the company conducts all its businesses in a transparent manner and without exception to corruption. “Thai assures that the company will promptly request and gather information from all the sources in order to investigate the matter thoroughly. When all facts have been compiled and reviewed in detail, Thai shall expedite in determining the appropriate actions to take on any corruption found.” ■ flightglobal.com

FROM 19 TO 25 JUNE, 2017 Where aerospace leaders get down to business

an event from

siae.fr

AIR TRANSPORT

Weak demand set to persist for narrowbodies

S

ix months into his new role, Embraer’s commercial aircraft chief John Slattery has forecast another soft year for orders in 2017, but sees bright spots in China and the USA. “With an oversupply of narrowbodies… I see further downward pressure on yields, especially beyond the USA where carriers still haven’t fully embraced the concept of capacity discipline,” says Slattery, writing in a blog post. He acknowledges that 2016 was a slow year for commercial aircraft sales, with 700 fewer orders than 2015. “This year will likely be equally soft for the industry.” Embraer’s order and delivery data showed last month that the airframer had logged net orders for 45 commercial aircraft in 2016, compared with 155 in 2015. While Slattery expects the book-to-bill ratio for narrowbodies to fall below 1:1 by end-2017, he sees brighter prospects for the 70to 130-seat aircraft segment in which Embraer competes, with a book-to-bill ratio of above unity. ■

SALES STEPHEN TRIMBLE WASHINGTON DC

Collins chief believes orders may not rebound until 2020 Cycle peaked in 2014, argues boss of systems supplier, but he remains upbeat on deliveries

T

he number of orders for large commercial aircraft could remain relatively low for a few more years, especially for widebodies, says Rockwell Collins chief executive Kelly Ortberg. Airbus and Boeing peaked in 2014 with a collective order intake for 2,888 aircraft. Two years later, the number of orders has fallen by more than half, with combined orders totalling 1,399 aircraft recorded in 2016. “I think we are three years into the order cycle,” Ortberg told analysts on a 20 January first-quarter earnings call. “I think we peaked back in ’13 and ’14 and we are seeing that right now.” A return to growth will probably not happen until the end of the decade, Ortberg says, with that moment possibly coinciding with the introduction of the Boeing 777-9 in 2020. As a major avionics and systems supplier for Airbus and Boeing, Ortberg’s remarks could

Airbus

FORECAST GHIM-LAY YEO WASHINGTON DC

Get the latest key information on fleet movements, purchases and retirements: flightglobal.com/fleetsanalyzer

Airbus will raise widebody production until the end of the decade stir worries about production ramp-up plans. Both airframers plan to continue increasing output of narrowbody aircraft through 2020, while steadily growing deliveries of new widebody aircraft families, such as the 787 and Airbus A350. Other widebodies have already felt the demand pinch: Airbus is cutting the production rate for the A380 and Boeing for the 777. The early timing of the latter rate

cut caught Ortberg slightly by surprise, he admits. But he suggests the downwardtrending order cycle probably will not cause an overall drop-off in commercial aircraft deliveries. “Everybody knows that the last [declining] order cycle didn’t convert into an overall delivery cycle [reduction] because of the very strong backlogs,” he says. “My feeling is that the same is going to happen [this time].” ■

FLEET EDWARD RUSSELL WASHINGTON DC

U

nited Airlines is evaluating potential successors for its Boeing 767s, as part of an ongoing widebody fleet review. The 767 is the only aircraft in the Chicago-based carrier’s inventory for which it does not have a “line of sight” in terms of succession, says president Scott Kirby. “The big open question for us is what’s going to replace our 767s,” said Kirby at a question and answer session with employees last month. United operates 35 767300ERs with an average age of 22 years and 16 -400ERs with an average age of 16 years, records Flight Fleets Analyzer. It opted to

refurbish the interiors and extend the life of 21 of the -300ERs as oil prices fell in early 2015. “It’s a great airplane [but] it’s getting a little old and if we’re going to keep flying them longer we’re going to need to make some investments in extending their life,” says Kirby. “But it also serves missions that the other aircraft would be hard-pressed, at least in today’s economics, to find.” It is unclear what could replace the 767s. United has already opted to use 19 787-9s for growth rather than replacement and the high capital costs of the next-generation widebody are widely seen


AirTeamImages

‘Line of sight’ hazy for United’s 767 replacement

The US carrier chose to refurbish 21 of its elderly twinjets in 2015 as discouraging the carrier from placing further orders. United is presently reviewing its order for 35 Airbus A350-

1000s, raising the possibility that it could convert some or all of that commitment to the smaller and cheaper A330neo. ■ flightglobal.com

AIR TRANSPORT

Trump’s protectionist urges give new hope to US airlines Air Transport P16 INQUIRY DAVID KAMINSKI-MORROW LONDON

Thrust reduction behind 767 tail-strike NTSB says incident at Kabul involving Omni Air International service was caused by over-compensation for windshear nvestigators believe that early reduction of engine thrust on a Boeing 767-300ER during a landing at Kabul caused the aircraft to sink, triggering a response that led to a damaging tail-strike. The Omni Air International twinjet (N768NA) had been conducting a visual approach to the Afghan capital in variable gusting wind conditions, following a charter flight from Bucharest on 20 June 2014. US National Transportation Safety Board (NTSB) investigators state that the crew had set a landing reference speed of 145kt (269km/h) but added 10kt to account for the winds. The airspeed fluctuated between 162kt and 138kt during the approach, and the engine thrust varied accordingly. The inquiry states that the aircraft’s vertical navigation system was not indicating a vertical path. As the aircraft descended through 1,000ft on the approach to runway 29, the tower controller advised that the winds were from 360° at 20kt but gusting to 40kt.

AirTeamImages

I

Crew had been conducting a visual approach to the Afghan capital The aircraft was above the glidepath and slightly fast at a height of 200ft, and the captain reduced thrust for correction, but the crew heard an automated “sink rate” alert at about 100ft. “The captain stated that he increased power and started to flare,” says the NTSB. “As the crew sensed the [aircraft] drop, he increased pitch attitude to arrest the sink rate but landed hard and over-rotated in the flare.” Analysis of the wind conditions indicated a “significant change” in the final moments of the approach, it adds, with an up-

draft transitioning to a downdraft, and a 17kt headwind c omponent shifting to a 1kt tailwind component, in the 5s before touchdown. Data from the enhanced ground-proximity warning system showed it had not generated a windshear warning during the approach. The NTSB notes that windshear alerts are suppressed below 50ft. The aircraft touched down at about 140kt. While guidance in the operator’s manuals pointed to a 4-6° nose-up attitude during a normal landing, flight-data recorder information showed the

pitch increased from 1° just before the flare to a maximum pitch of 9.5°. The touchdown impact was around 2.5g. “Charts and guidance included in the manufacturer’s and operator’s flight manuals indicated that, at touchdown, the pitch attitude exceeded the contact limit of the [aircraft],” says the inquiry. Four of the 16 crew members – but none of the 65 passengers – received minor injuries during the event. But the aircraft suffered substantial damage to its aft lower fuselage, with “multiple” holes and cracks over a 7.62m (25ft) length. Five bays were damaged at the lower end of the aft pressure bulkhead. The captain of the aircraft had accumulated 865h on 767s out of a total flight time of over 16,300h. Omni Air International drew attention to tail-strike risk after two occurrences involving 767s two years before the Kabul landing. The communication reviewed flight-training manual information and identified a slower-than-normal airspeed as a cause of tail-strike incidents. ■

DELIVERY MICHAEL GUBISCH TOULOUSE

J

apan Air Commuter (JAC) has taken delivery of its first of an eventual nine ATR 42-600s, to be transferred by the end of 2019. The JAL Group carrier holds purchase rights for a further 14, and JAC has an option to convert orders to the larger ATR 72. Configured with 48 seats, the ATR 42-600s will be used to replace the carrier’s Saab 340 fleet. Flight Fleets Analyzer shows that the Kagoshima-based airline has nine of the Swedish-built type, equipped with 36 seats, built between 1992 and 1999. JAC also has nine Bombardier Q400s aged between nine and 14 flightglobal.com

years old. Speaking at a delivery ceremony in Toulouse, airline president Hiroki Kato said that the Q400s will need to be replaced after 2020, but no decision has yet been made. “We have to think [as part of] JAL Group,” he says. But noting commonality between the ATR 42 and ATR 72, he adds: “If we grow passenger numbers, then we order the ATR 72.” JAC intends to have its ATRs maintained by its in-house technical operation and has not signed an MRO agreement with the manufacturer. The airline represents ATR’s first direct

ATR

First ATR 42-600 arrives for Japan Air Commuter

JAL Group carrier has ordered nine examples of the twin-turboprop c ustomer in Japan. Kumamotobased Amakusa Airlines is the manufacturer’s only other Japanese operator, with a single, leased ATR 42-600.

ATR chief executive Christian Scherer says JAC’s selection of the twin-turboprop represents a significant endorsement. ■ See Interview P18


AIR TRANSPORT

R-R and AerCap support plan for leased engines

L

essor AerCap is assisting with the creation of a new RollsRoyce maintenance programme aimed at the leasing market. AerCap is co-operating on the development of the service – branded LessorCare – before it is put to the broader lessor market this year. AerCap’s chief executive Aengus Kelly says the pro gramme will expand the range of services and offer “more choice for owners and operators”. R-R had signalled last year that it was using the LessorCare identity to develop more flexible services intended to assist the leasing sector. It says the newly launched scheme involves signing a “simple” single agreement covering services on all versions of the manufacturer’s Trent engines. The services include customer support and training, transition services to speed movement of aircraft between leases, and asset management. ■

COMPETITION GHIM-LAY YEO WASHINGTON DC

Trump’s protectionist urges give new hope to US airlines Mainline carriers and unions renew claims of unfair competition against overseas operators

U

skies agreements that promised to maintain and increase opportunities for aviation workers,” says the union’s international president Sara Nelson, adding that the NAI issue “is the place to start”. US labour groups allege that NAI flouts labour laws, and its growth could threaten US aviation jobs. Norwegian, which denies the accusations, points out that its expansion has created new posts in the USA. The unions, along with three US mainline carriers, have also renewed calls for the Trump administration to side with them in an ongoing dispute with the big three Gulf carriers – Emirates Airline, Etihad Airways and Qatar Airways – over alleged state subsidies. Umbrella group the Partnership for Open and Fair Skies – a coalition of American Airlines, Delta Air Lines and United Airlines and their unions – argues that the Mid-

S labour unions and mainline carriers have ratcheted up their demands for President Donald Trump to take action against foreign airlines. The unions are calling for the White House to overturn the Obama administration’s December 2016 decision to issue a foreign air carrier permit to Irelandregistered Norwegian Air International (NAI), which comes into effect on 29 January. One of Trump’s first acts after taking office on 20 January was to withdraw the USA from the Trans-Pacific Partnership, a trade pact that he says disadvantages American workers. This, says the Association of Flight Attendants-CWA, is a sign that the new administration will protect domestic employment. “President Trump has repeatedly stated that his guiding principle will be to put American jobs first. We encourage the Trump administration to enforce open

REX/Shutterstock

MAINTENANCE DAVID KAMINSKI-MORROW LONDON


Tycoon made safeguarding jobs at home a key campaign pledge dle Eastern operators benefit from combined government subsidies to the tune of $42 billion, a suggestion they strongly deny. “We look forward to working with President Trump and his team to enforce these agreements and protect American jobs – something that the Obama administration failed to do,” says the coalition. ■

TAKEOVER DAVID KAMINSKI-MORROW LONDON

Cimber acquisition tightens CityJet’s ties to SAS I

for flexible development of regional operations. Chief executive Rickard Gustafson says that the sale is “in line” with the company’s strategy to concentrate on its own operations.

AirTeamImages

rish regional operator CityJet is acquiring SAS Group’s Danish subsidiary Cimber, consolidating its position with SAS following its 2015 takeover of Blue1. SAS Group bought Cimber two years ago, to provide a p latform

Scandinavian carrier will sell subsidiary’s CRJ900s within months 16 | Flight International | 31 January-6 February 2017

Synergies between CityJet and Cimber, he adds, will further cut Cimber’s production costs. “The agreement allows us to fly more routes and maintain a large network with frequent departures,” says Gustafson. SAS says it will sell the 11 Bombardier CRJ900s that have been operated by Cimber in the next few months. CityJet will operate additional regional services from Copenhagen on SAS Group’s behalf. Cimber currently serves some 30 European destinations for SAS. CityJet was already performing services for SAS, under a threeyear wet-lease agreement, using a

fleet of eight CRJ900s – set to rise to 12 by March this year. But as part of the Cimber acquisition, CityJet’s contract with SAS will double to six years. CityJet is also intending to acquire another 10 CRJ900s. CityJet will take control of Cimber and the Danish carrier’s 11 CRJ900s from the end of January, at which point it will also confirm the extra 10 aircraft through a new order. Acquisition of Cimber “advances” CityJet’s strategy of building a role as a regional jet capacity provider to European airlines, says CityJet executive chairman Pat Byrne. ■ flightglobal.com

NEWS ANALYSIS

ATR boss seeks concord over strategy Flight Interview P18 TAKEOVER DAVID KAMINSKI-MORROW LONDON

Will stars align for Safran and Zodiac? Merger will create French aerospace powerhouse to rival US giants but some analysts remain unconvinced of benefits

B

BALANCED REVENUES

Paris-headquartered Safran also believes the acquisition will lift it into second place, behind UTC Aerospace Systems, in the aeronautical equipment sector. It expects the merger will raise the proportion of revenues it generates from aircraft equipment from the current level of 32% to a more balanced 48%, while its reliance on propulsion revenues will fall from 61% to 46%. Safran chairman Ross McInnes says the Zodiac acquisition demonstrates that the company is “serious” about allocating capital to businesses which are “likely to be good stewards” in the “sweet spot” of the aerospace sector.

Safran v Zodiac Safran* Zodiac**

Revenue

€17.4bn

€5.2bn

Operating profit

€2.43bn

€270m

Net profit

€1.48bn €108m

Source: Companies Notes: *2015 **Year ended 30 Sept 2016

flightglobal.com

the corporation’s upper limit for the position, Safran’s board is to propose a modification extending his term to 68. This will provide certainty regarding leadership and oversight during the challenging ramp-up of CFM Leap engine production, the company says.

POSSIBLE DISTRACTION

Safran

ack in 2010, Zodiac Aerospace rejected Safran’s merger overtures, with chief executive Olivier Zarrouati delivering a telling dismissal. “Zodiac isn’t looking for a partner and has a good outlook as a standalone company. The outlook for Safran is modest and the industrial synergies are weak,” he said at the time. Hindsight is always 20-20, but now on the receiving end of a €9.7 billion ($10.3 billion) offer from Safran and following a twoyear period in which Zodiac has delivered nine profit warnings, it is clear that Zarrouati was unable to read the stars clearly. Announced on 19 January, the tie-up will create a business with combined annual revenues of €22.6 billion and catapult Safran into sixth place in Flight International’s aerospace Top 100, narrowly behind GE Aviation, its partner in the CFM International engine joint venture.

Safran insists merger will not distract it from Leap engine ramp-up “Zodiac ticks all the boxes,” he says, pointing out that it is a firsttier, high-technology firm holding leading positions on programmes and active in the spares and retrofit markets. The acquisition will concentrate Safran’s interest in aerospace – a “business we understand” – following its decision to dispose of its biometrics and digital identity arm, McInnes says. An analysis from Londonbased Edison Investment Research says the tie-up will create “the world number three in aerospace” with revenues “balanced between propulsion and aircraft equipment”. It likens the merged entity to Pratt & Whitney and UTC Aerospace Systems parent company United Technologies, “with positions across the whole aircraft value chain and exposure to all key aircraft programmes”. However, Edison describes the two companies as being “at vastly different ends of the performance and quality spectrum”; Safran, it contends, is “arguably a member of the aerospace elite”. The takeover bid follows Zodiac’s efforts to recover its operations after a period of poor performance, the result of production difficulties which held up the

delivery of seats and cabin fittings to airframers. Airbus had been particularly vocal over the knock-on effect on its A350 programme, attributing a slow ramp-up of production and hold-ups in deliveries partly to the Zodiac situation. Safran says the acquisition will

“I believe we can bring a lot of expertise to get the problems they’ve seen… behind them – a lot faster” Philippe Petitcolin Chief executive, Safran

aid the recovery of Zodiac’s interiors businesses. “Our industrial expertise will also accelerate the return to their historical levels of profitability in the seats and cabin activities,” says Safran chief executive Philippe Petitcolin. “I believe we can bring a lot of expertise to get the problems they’ve seen in composites, in manufacturing of seats, behind them – a lot faster than they’ve been able to do so far,” he adds. Petitcolin will remain in charge of the merged company. Although he turns 65 this year,

Petitcolin says Safran will continue to prioritise the Leap rampup while it works on the integration of Zodiac, and that he is “not worried” about distraction from this crucial engine programme. But concerns about managing the production increase on the Leap – which powers the next generation of narrowbodies – play a part in analysts’ doubts over the deal. “Safran’s management therefore faces a serious challenge to successfully integrate Zodiac, without distracting from the existing business,” says Edison. Barclays believes there is less risk from this aspect of the merger, however. Rather, it questions the logic of enhancing Safran’s position by taking over Zodiac, describing it, in a research note, as “less convincing”. It questions the acquisition of Zodiac’s buyer-furnished equipment activities, and says the deal does not appear to help Safran’s core engines business. But Petitcolin highlights the acquisition of Zodiac’s large buyer-furnished equipment business as a key element of the merger. While Safran is “very well positioned” in the short- and medium-haul aircraft sector, Zodiac has a “much better position” on large aircraft, says Petitcolin. This will provide additional buyer-furnished equipment business to Safran, he says, through the typical eight-year cabin refurbishment cycle on widebody aircraft types. ■ Additional reporting by Dominic Perry in London


FLIGHT INTERVIEW

Get the latest key information on fleet movements, purchases and retirements: flightglobal.com/fleetsanalyzer

MANUFACTURING MICHAEL GUBISCH TOULOUSE

ATR boss seeks concord over strategy Turboprop manufacturer’s new chief executive seeks to bring harmony to joint venture and stay ahead of competition

A

Flight Fleets Analyzer shows that the Canadian airframer currently has 29 outstanding orders for the Q400.

ATR

mong an array of aircraft models in ATR chief executive Christian Scherer’s office – mostly of Airbus jets, which is no surprise given his three decades at the airframer – one takes pride of place: on a table near his desk sits Concorde. “It’s the ultimate inverse of the turboprop,” he says of the supersonic 100-seater. Maybe its presence signals an intent to look beyond what is possible today. Scherer joined ATR in November 2016 but he has already come to “love the company”, he says. That does not mean he has any sentimental attachments to it, however: during his first two months in office, he took the decision to reduce output amid a decline in orders last year. The Toulouse-based company – jointly owned by Airbus and Italian group Leonardo – received orders for 34 ATR 72-600s and two ATR 42-600s last year, versus a total of 76 aircraft in 2015; revenue fell 10% to $1.8 billion. Scherer admits that ATR’s production output was “a little bit less than forecast” – deliveries fell by eight aircraft, to 80. He says the market “considerably soft ened” as a result of “economic uncertainty” amid political developments, currency fluctuations that have particularly affected airline purchasing power in emerging markets, and a strong order backlog from previous years. ATR says it has orders for “a little over 200” aircraft, which translate to a production backlog of about two and a half years. The manufacturer had originally planned to deliver 90 aircraft in 2016. That target was revised to 88 units during the year, before management ultimately decided to “stabilise” production “in the low 80s”. Scherer says he is “a little hesitant” to specify an exact number for 2017, given the “very soft market”, and describes the new production level as “cruise altitude 80”.

Scherer says there is scope in the current market to increase sales ATR has capacity to build up to 110 aircraft per year. Output has grown over recent years – 51 aircraft were delivered in 2010 – but Scherer says the new level could be “comfortably” maintained for years to come.

MAINTAINING MARGINS Given that ATR is a mediumsized business, he argues, “we need to react much faster because we are much more exposed to having holes in our production line” than Airbus and Boeing. “We don’t want to degrade our margin, and therefore we don’t want to carry significant inventory of unsold aircraft or work in progress,” he says. ATR does not release detailed results, but Scherer says: “We can make just about


every aircraft manufacturer in the world jealous of our profitability.” He links this to the amortisation of development costs from the original aircraft family – the ATR 42 first flew in 1984, followed by the ATR 72 in 1988 – models he sees as “virtually unchallenged” in today’s turboprop market. The nearest Western-built competitor is the Bombardier Q400, which, Scherer says, is “admittedly the better aircraft for longer range”. But he argues that the ATR 72 is more economical on routes with sector lengths below 350nm (650km) because it has less powerful engines and a lighter airframe. “ATR has pushed Bombardier into a corner where the Q400… is a much less liquid asset in the market.”

PRESERVING VALUE Reducing the production rate is “much easier” for ATR versus manufacturers of large aircraft because lead times for turboprops are usually less than two years, Scherer says. ATR’s shareholders and aircraft financiers have welcomed the move, he says, partly on the back of the “immediate effect” this has had on residual values. “We have been applauded very explicitly by the financial community for having taken the decision… to stabilise our production output at the current level,” he says, adding that 2016 was a “globally difficult year” and that “the environment is getting tougher”. Despite the headwinds, Scherer believes there is potential to increase sales and “break out of that 80 box”. Airlines in emerging economies have formed a major part of ATR’s customer base, but the manufacturer is not yet an established competitor in China, India or the USA. In Scherer’s view, protectionism by the Chinese government has been a reason that no ATRs operate in the country today. State manufacturer AVIC has its own turboprops – the MA60 and MA600 – and is developing a 70-seater, the MA700, which Scherer sees as an ATR 72 “look alike”. In India, ATR must contend with bureaucratic hurdles and a “feeding frenzy” of narrowbody orders. Meanwhile, in the USA, scope clauses in pilot labour agreements have favoured airlines’ deployment of regional jets, Scherer notes. But he argues: “There are no fundamental, natural economic reasons why our aircraft are not relevant in markets like China, India and the United States.” As a result, he says ATR flightglobal.com

CHRISTIAN SCHERER

ATR

F-35 contract talks closer to resolution Defence P20

Production was revised downwards in 2016 after orders fell in the face of global “economic uncertainty”

the argument that air transport links to areas without much infrastructure can stimulate economic and social development. Scherer says talks are under way with several operators in China and India, and with government authorities in the two countries. Additionally, engineers have proposed “manageable modifications” for the ATR 42 to enable the 50-seater to operate from runways “no other [comparable inproduction] turboprop airplane can access”, he says. Measures will include adoption of lighter, more powerful carbonfibre brakes and a potential

LEONARDO’S DESIGNS He shows no concern that ATR’s market position could come under threat in the foreseeable future. “I look at the horizon [and] I don’t see anything that remotely competes with our airplane.” In his view, “there is, right now, infinite life left” in the existing airframe design. Leonardo has repeatedly voiced its intent to develop a larger sibling to the ATR 72 – lately mooting a 100-seater – and has suggested that it could increase its ATR shareholding above 50% or potentially build the bigger turboprop on its own. Meanwhile, Airbus has been cool

“I look at the horizon [and] I don’t see anything that remotely competes with our airplane”

flightglobal.com

about the prospect of an ATR family expansion or a change in the shareholder structure. In Scherer’s view, the promotion of a larger variant of the ATR 72 is “more an expression of Leonardo’s strategy than an ATR strategy”. He adds: “Leonardo naturally aspires to moving forward in this… aviation space, and so it is a natural thing for Leonardo to say, ‘Why don’t we develop new airplanes?’.” But he insists: “Everything is fine. We have a very profitable programme at a production rate

ATR

Christian Scherer Chief executive, ATR

rudder modification to increase the ATR 42’s manoeuvrability. This is to fulfil more stringent certification requirements at airfields with high terrain in the vicinity. “This opens… whole bands of currently uncharted territory,” Scherer says. While development of the performance improvement package has not yet been launched, ATR’s shareholders authorised the manufacturer to offer it to airlines. “If we find launch customers for this particular version, I will go to the shareholders and ask for the development,” he says.

will be “more aggressive” in its sales efforts than over the past two years. Appealing to local governments to establish subsidised air services to remote areas is central to ATR’s sales strategy, based on

that, five years ago, we thought we were never going to have.” Scherer indicates that the development of a larger aircraft will find a way on to ATR’s agenda at some point. “The question is not are we going to do a new product [but] when are we going to do a new product?” However, he notes that the market for 100-seaters has become very crowded with the development of new regional jets such as Russia’s Sukhoi Superjet and China’s Comac ARJ21, and that similar programmes are to be launched by other countries “obsessed by doing jets”. “Just imagine what would happen if somebody came in there with, say, a 90-, 90-some, 100[or] whatever-seat turboprop. It would create an absolute chaos in the market.” Instead, he believes ATR should stand back and choose its timing for launch of a new type after some market consolidation. “Everybody is spending five billion… and we are saying, ‘Please go – and kill each other’.” Despite his view that ATR is relatively comfortable today, Scherer says the manufacturer is closely monitoring technological developments that could change its market outlook and potentially spur the launch of a new type. “As the market leader… I want to be the one obsoleting the status quo rather than somebody else.” But he adds: “Right now, we see no reason to rush into anything.” ■

Sales efforts will stress the benefits of turboprops over regional jets 31 January-6 February 2017 | Flight International | 19

DEFENCE

To get more defence sector coverage, subscribe to our fortnightly newsletter: flightglobal.com/defencenewsletter

PROCUREMENT LEIGH GIANGRECO WASHINGTON DC

F-35 contract talks closer to resolution Following “productive” meeting with Trump, Lockheed chief executive Hewson says LRIP 10 deal could be signed soon ockheed Martin expects to seal a deal soon for 90 F-35 Lightning IIs in low-rate initial production (LRIP) lot 10, chief executive Marillyn Hewson told investors on 24 January. On an earnings call a day after she met President Donald Trump at the White House, Hewson said Lockheed was very close to a deal that would allow it to close LRIP 10 negotiations in the near term. “The meetings have been very productive,” Hewson says of her discussions with Trump. “He asks very good questions and wants to make sure price goes down. It’s not about slashing our margins. I’ve had opportunity to share with him things the [Department of Defense] can do and how they might buy the aircraft differently in the future to help drive the cost down.”

Lockheed Martin

L

Production will rise this year, with 66 aircraft due to be delivered Lockheed also expects to negotiate a lot 11 deal by the end of 2017, chief financial officer Bruce Tanner says. This year will mark a significant ramp up for the F-35 production line, with 66 aircraft expected to be delivered, compared with 46 in 2016.

Hewson says Lockheed will lower the unit price for lot 10, which should come in at less than $100 million, and that this should fall to $85 million by an LRIP 13 deal due for signature in 2019. Those prices have not been established following the meetings with Trump, however, as

government and industry officials have for several years set a goal of achieving an $80-85 million price tag for the F-35A before the programme enters its full-rate production phase. Meanwhile, Hewson says Lockheed is not under any pressure to take legal action with regard to the F-35 programme’s LRIP 9 contract. Last November the Pentagon took unilateral action on the deal following more than a year of protracted negotiations, and awarded Lockheed $6.1 billion for the delivery of 57 airframes and Pratt & Whitney F135 engines. The company has 90 days from the point of the contract award to decide whether to appeal. “We’re going to continue to look at our options on LRIP 9,” Hewson says. ■

OPERATIONS CRAIG HOYLE LONDON

U

K defence secretary Michael Fallon has challenged Airbus Defence & Space to maintain its drive on the A400M programme during 2017, so that the Royal Air Force can take full advantage of its capabilities. “I am encouraged that A400M is available for extended, worldwide strategic operational deployment,” Fallon told an Airbus Group reception in London on 24 January. “The challenge I give you for this year is to ensure that all of those aircraft can operate in all environments, from benign to hostile, so that our forces can summon up that vital flexibility when they need it.” Fallon says the RAF has received 14 of its eventual 22 A400Ms, with the type operated from the service’s Brize Norton base in Oxfordshire. The UK’s oldest Atlas – ZM400

– has been in use for just over two years, and Airbus confirms that its two most recent examples were handed over on 22 December 2016. Flight Fleets Analyzer records Airbus as having delivered another 24 production examples. The type is in operation with the air forces of France (11), Germany (six), Malaysia (three), Turkey (three) and Spain (one). ■

Crown Copyright

Fallon urges Airbus to maintain A400M progress

The UK is currently the transport’s largest operator, with 14 in use

MODIFICATION

Rotorcraft refuelling capability could fuel demand for C295W Airbus Defence & Space has begun offering its C295W transport with an in-flight refuelling system modification, after fresh trials. Conducted during December 2016 in conjunction with Airbus Helicopters, the activity involved a pair of C295s supporting H225M Caracals. This involved a


palletised hose-and-drogue refuelling system deployed via the medium transport’s rear ramp. “Contacts were executed at speeds of 105-115kt [194212km/h], and both crews reported smooth and simple operation,” the airframer says. It had also performed a series of refuel-

ling system contacts between a pair of C295s last September. “The system is now being offered to existing and prospective C295 operators,” Airbus says. “Possible applications include special forces applications and extending the range of search and rescue aircraft.” ■ flightglobal.com

DEFENCE

Engine supplier tackles Osprey stall risk Defence P23

ACQUISITION LEIGH GIANGRECO WASHINGTON DC

Textron AirLand

Nairobi secures approval to buy armed AT-802s

Company-funded design has already fired a variety of weapons, including Hellfire missiles, during testing REQUIREMENT LEIGH GIANGRECO WASHINGTON DC

Scorpion could hit target for USAF’s light low-cost fighter Service chief says developmental jet will be among types assessed during OA-X experiment

T

extron AirLand’s light-attack fighter/trainer Scorpion jet could remain in the running for a low-end strike role with the US Air Force, according to the service’s chief of staff. Gen David Goldfein told an audience at a Washington thinktank on 18 January that the Scorpion was one of several aircraft the USAF would examine during an experiment slated for this spring to consider low-cost fighter options. “Right now we’re running an experiment where we go out to industry and say, ‘What do you have that’s commercial-off-the-

shelf, low-cost that can perform this mission?’ We’re going to do this experiment and see what’s out there, and I’m expecting many of the companies to come forward,” he says. Over the past year, the air force has thrown around the idea of procuring a low-end close air support (CAS) aircraft designed for permissive environments, dubbed OA-X. The service has discussed ordering a cheap, commercially available aircraft as early as next year, and was examining two possibilities: the Beechcraft AT-6 and Embraer’s A-29 Super Tucano.

In an 18 January defence budget recommendation white paper, Senate Armed Services Committee chairman Senator John McCain called on the USAF to buy 300 low-cost, light-attack fighters requiring minimal development. Goldfein describes McCain’s proposal as a “great idea”. “We’ve got to look at new ways of doing business in the future,” he says. “There’s a more sustainable model for the future that would be less costly, that could entice foreign partners, that could reduce the overall cost and would also contribute to raising the readiness.” ■

K

enya has received approval from the US state department to move forward with a potential acquisition of up to 14 AT-802s from Air Tractor. To be acquired using Washington’s Foreign Military Sales funding mechanism and worth up to $418 million, the package would include 12 armed AT-802Ls and a pair of AT-504 trainers, plus precision-guided weapons and support services. L3 Technologies will be the prime contractor. “The proposed sale provides a needed capability in [Kenya’s] ongoing efforts to counter Al-Shabaab,” the US Defense Security Cooperation Agency (DSCA) says, referring to the militant group. If fielded, the Air Tractors would be better suited to conducting close air support operations than the Kenyan air force’s current fleet of aged Northrop F-5E fighters, the DSCA adds, as they could be “pre-positioned much closer to the conflict area” thanks to the type’s short-field operating performance. Flight Fleets Analyzer records Nairobi as having an operational fleet of 17 F-5Es. ■

AVIONICS

BAE Systems is to develop a digital replacement for the Lockheed Martin F-22’s current cathode ray tube-based head-up display (HUD). Awarded by Lockheed, the contract calls for a system that matches the dimensions and power requirements of the in-service HUD. BAE anticipates that a follow-on order will lead to a retrofit production programme for the roughly 180 Raptors in the US Air Force fleet. BAE supplied the original display for the F-22, but recently has introduced the Digital Light Engine HUD product line. The technology reduces maintenance demands, allows the pilot more freedom of movement and provides constant luminance, BAE says. “We’ve worked closely with Lockheed Martin to deliver a completely modernised HUD solution for the F-22 fleet that meets the long-term needs of the air force,” says Andy Humphries, BAE’s director of advanced displays.

flightglobal.com

US Air Force

Digital HUD sharpens Raptor’s view


LOYALTY@FREDDIE AWARDS 2017 26-27 April | Hyatt Regency, New Jersey, US

In partnership with the Freddie Awards

60+

With presentations and practical case studies from former and potential award winners.

UNIQUE AIRLINES & PARTNERS

Expert speakers share insights into game-changing loyalty programme strategies Extensively researched programme of in-depth panel discussions, masterclasses and presentations

30+

COUNTRIES REPRESENTED

Grow your customer base by meeting airlines, hotels, car rental firms, retailers, and casinos 10+ hours of dedicated networking to help you make those integral business connections

72%

SENIOR MANAGEMENT

CONTACT US TEL: +44 (0)20 8652 3887

EMAIL: [email protected]

SPONSOR ENQUIRIES: sarah.green@@flightglobal.com

SILVER SPONSORS

www.flightglobalevents.com/LoyaltyFreddies2017

DEFENCE

‘Loose ends’ delay Bliss Jet transatlantic service Business Aviation P24 PROPULSION STEPHEN TRIMBLE WASHINGTON DC

Engine supplier tackles Osprey stall risk R

olls-Royce is exploring two new avenues for reducing the susceptibility of Bell Boeing V-22 engines to in-flight stall and surge events. The US Naval Air Systems Command (NAVAIR) plans to award the maker of the AE1107C turboshaft a contract to complete two studies that would validate the company’s ideas for making the propulsion system safer to operate. One study will prove whether rescheduling movement schedules in the full authority digital engine control (FADEC) computer for compressor guide vanes will improve surge margins. R-R’s internal testing suggests the software tweak could improve surge margin by 0.8% at sea level and up to 3% at altitude. Another focuses on the temperature sensor located at the inlet to the compressor. R-R’s engineers have determined the T2 sensor sends inaccurate measurements to the FADEC, contributing 2.5% of a 4% steady-state power short-

fall at the compressor’s corrected rotational speed limit. By tweaking the software to provide an accurate temperature measurement at the compressor inlet, R-R believes engine safety will improve. The AE1107C’s vulnerability to stalls and surges has been a focus of the V-22 programme for more than a decade. Releasing a statement of work for the two study contracts, NAVAIR says the engine experienced at least 68 stalls and surge events between 2003 to October 2016. Tom Hartmann, Rolls-Royce North America’s senior vice-president of customer business, notes that only about 10% of those reported events caused in-flight disruptions. Most of the events were detected quickly by the engine monitoring system, allowing the computer to avoid a compressor stall by briefly slowing the fuel flow into the combustor, he adds. Hartmann also says most of the in-flight disruptions occurred on early configurations of the en-

US Marine Corps

US Navy will award Rolls-Royce contract to prove that software updates can cut rate of power surge incidents on V-22

Propulsion system encountered problem almost 70 times from 2003 gine, and notes that the arrival of the Block 3 version of the AE1107C five years ago has led to a reduction in reports. Bell Boeing also is developing an inlet barrier system, which is aimed at preventing surges caused by ingesting dust and sand. AE1107C engines are already equipped with air particle separa-

tors, but Hartmann says that technology – based on centrifugal force – is less effective than installing a filter on the inlet. Flight Fleets Analyzer records an in-service fleet of 296 Ospreys, including 248 US Marine Corps MV-22s, 43 CV-22s flown by the US Air Force and five examples assigned to the US Navy inventory. ■

ACQUISITION

Senegal tries out modernised Mi-24

WZL-1

Poland’s Lodz-based WZL-1 has completed the modernisation of a Mil Mi-24V attack helicopter for the Senegal air force. The secondhand rotorcraft is understood to have been acquired from a former Soviet-era operator. Acceptance flights were conducted on 12 January by a team of Polish and Senegalese personnel, and witnessed by the customer air force’s commander-in-chief, Brig Gen Birame Diop. WZL-1 says this is the first Mi-24 to have been acquired by Senegal, and it is unclear whether the West African nation intends to field additional examples. Flight Fleets Analyzer records the Senegal air force as already operating a pair of 11-year-old Mi-35s which it acquired directly from Russia.

Download the 2017 Wo r l d A i r Fo r c e s R e p o r t

IN ASSOCIATION WITH

w w w. f l i g h t g l o b a l . c o m / w a f flightglobal.com


BUSINESS AVIATION

Keep up to date with business aviation news and analysis at: flightglobal.com/bizav

SHIPMENTS KATE SARSFIELD LONDON

Daher activity flat but buyers take to updated TBM 930 F

rench aircraft manufacturer and aerostructures supplier Daher saw deliveries of its TBM single-engined turboprop pair fall by a single unit in 2016, to 54 aircraft from 55 the previous year. Shipments of the TBM 930 model outstripped its older TBM 900 stablemate by two to one, according to the Tarbes-headquartered airframer. This equates to 18 TBM 900 deliveries in the 12 months ended 31 December 2016, and 36 TBM 930s. The $4.1 million 930 – the fourth iteration of the 26-year-old TBM series – was launched in April 2016 as an enhanced version of the $3.9 million TBM 900.

It features Garmin’s G3000 touchscreen glass flightdeck and a reconfigured cockpit, plus redesigned seating and upgraded interior trim and finishes. Daher’s report on its business activities in 2016 ranks North America as the top delivery destination, with 41 units shipped to customers in the USA and Canada. Europe was second, with 10 deliveries: customers in the UK and France received four and two aircraft, respectively, while buyers in Germany, Italy, Poland and Switzerland received one each. Latin American deliveries totalled a pair of aircraft for Mexico, and one unit was shipped to

Airborne Films

North America the dominant market for airframer in 2016, with its newest turboprop accounting for bulk of deliveries

Company handed over a combined 54 examples of its two models the Asia-Pacific region, for a user in Thailand. “The 2016 results confirm that customers worldwide continue to appreciate the value proposition of our TBM product line, which we extended last year with the TBM 930 version,” says Nicolas Chabbert, Daher’s senior vicepresident, airplane business unit. To help bolster the TBM 900’s appeal, Daher is replacing the 12-year-old G1000 flightdeck with a next-generation version;

the G1000NXi. Unveiled by Garmin in early January, the NXi features wireless cockpit connectivity; enhanced situational awareness via SurfaceWatch; visual approaches; and map overlays on the horizontal situation indicator. “This upgrade includes a modernised flight display with significant performance enhancements,” says Chabbert. Certification of the G1000NXiequipped TBM 900 is expected “in a few months”, Daher says. ■

SCHEDULES KATE SARSFIELD LONDON

‘Loose ends’ delay Bliss Jet transatlantic service S start-up operator Bliss Jet has pushed back the launch of its scheduled transatlantic service from January to the second quarter of this year, to give it more time to “tie up loose ends”. Bliss Jet had planned to start services on 8 January, flying Gulfsteam G450s and G550s between New York LaGuardia and London Stansted. “We set ourselves an overly ambitious deadline, which wasn’t necessary,” says company founder and chief executive David Rimmer. “Nearly everything is in place, including the aircraft and the service delivery. However, following market feedback we have decided to introduce some changes to the service, so we get it absolutely right before we begin.” A key revision is to the scheduled departure times. “We are

Bliss Jet

U

New York to London connection will initially use Gulfstream G450s moving the [New York] outbound flight from Sunday evening to Sunday morning, to eliminate the overnight element on this sector,” says Rimmer. “Nobody wants to arrive for work on a Monday, having flown the ‘red-eye’.” The return flight will depart London on Thursday evening


and arrive on Friday morning, rather than departing on Friday. Bliss Jet is targeting businessand first-class airline passengers who are looking for a convenient and upmarket alternative to the transatlantic carriers. Flights will be sold on a perseat basis, at a cost of $12,000

each way. “This is equivalent to a British Airways full first-class fare,” he says. “But the experience is exponentially different.” Bliss Jet will offer 10-seat G450 and G550 large-cabin, long-range business jets – operated by US charter company White Cloud – between Sheltair Aviation’s fixedbase operation at LaGuardia and Inflight Jet Centre’s VIP terminal at Stansted. Given the high frequency of commercial airliner services between New York and London, Bliss Jet is confident its offering will be a success. “We are looking for a market of around 1,000 seats a year,” Rimmer says. The company plans to add two more third-party operators to its line-up within months, flying Dassault Falcon 7Xs and Bombardier Global-series aircraft. ■ flightglobal.com

BUSINESS AVIATION Losing its edge Special Report P26 DEVELOPMENT STEPHEN TRIMBLE WASHINGTON DC

Supersonic start-ups ready prototypes US companies preparing scale models for first flight events this year in sprint to revive travel through the sound barrier wo subsonic prototypes of planned supersonic commercial aircraft launched by separate start-ups are on track to enter flight test later this year. Colorado-based Boom Technology has completed windtunnel tests of a one-third-scale, subsonic prototype, the company announced in January. The start-up now has the data to begin building large structures for the scaled prototype aircraft by year-end. Last year, Boom announced plans to develop a 45-seat airliner capable of speeds up to Mach 2.2. The design makes no attempt to muffle the sound of the “boom” produced by the supersonic shockwave, so the airliner will be limited to subsonic speed over

Spike Aerospace

T

Spike Aerospace plans to deliver its S-512 for operations from 2023 land. Despite that limitation, Boom’s staff of veteran aerospace engineers believe there is a strong market for an all-business-class airliner that can fly above the speed of sound over water. Separately, Boston-based Spike Aerospace says it is on

track to complete first flight of a subsonic, scaled prototype for the Spike S-512 business jet by “late summer”. A series of larger prototypes will follow, leading to flights by a supersonic demonstrator by the end of 2018, the company said on 23 January.

TURBOPROPS KATE SARSFIELD LONDON

GI Aviation drums up demand for its Pilatus PC-12NG commercial service A

GI’s general manager Marios Belidis is confident the company can carve out a niche with the sixseat type, despite the region’s predilection for high-end, twin- and tri-engined business jets. “This has become a very cost-conscious market in recent years,” he says. “Travellers are now looking for something far less expensive than a jet, but far more flexible and convenient than flying by commercial airline.”

GI Aviation

bu Dhabi start-up GI Aviation has become the first commercial operator of the Pilatus PC12NG in the Middle East, following its inaugural revenue flight on 9 January from its Al Bateen Executive airport base to Doha, Qatar. The company is now stepping up marketing efforts to raise awareness of its single-engined turboprop-based service across the Gulf, ahead of the arrival of its second PC-12NG in February.

Abu Dhabi company is first in Gulf to offer revenue flights with type flightglobal.com

“With its [650nm] 1,200km, 4.5h range, and an ability to operate from short runways, the PC-12 will be an affordable way to fly around the Gulf,” he adds. Belidis dismisses concerns that safety fears relating to singleengine operation will prove a barrier for many people. “Travellers generally appreciate that this new generation of turboprops are very safe to fly,” he says. GI – which stands for Global Ideas – expects demand for its service to focus on key city pairs including Abu Dhabi and Dubai to Jeddah, Kuwait City, Manama, Riyadh and Sir Bani Yas. GI has begun a series of promotional flights to demonstrate the PC-12’s capabilities and stimulate demand for its service. On 22 January, the aircraft became the first commercial fixed-wing type to land on the 750m (2,460ft) beachfront airstrip operated by aerial sports company Skydive Dubai. ■

Spike plans to deliver the first aircraft in 2023. The S-512 is being designed to mask the noise produced by breaking the sound barrier – potentially allowing operators to fly the aircraft over populated areas, if the USA and European governments lift bans on supersonic flight by non-military aircraft. Both start-ups are the latest to chase the dream of commercial supersonic travel, since the retirement of the BAC-Aérospatiale Concorde fleet in 2003. Billionaire Robert Bass founded Aerion in 2002 and it continues to work towards fielding the AS2 supersonic business jet in 2023. Engine selection for the AS2 is expected in the first half of this year. ■

MAINTENANCE KATE SARSFIELD LONDON

CASL builds up its business jet MRO capability

G

ama Aviation Hutchison – a joint venture between UK business aviation services provider Gama and Hong Kong-based CK Hutchison – has launched a new partnership with local aircraft maintenance provider China Aircraft Services (CASL). The move is designed to boost the companies’ business aircraft support offering within the lucrative Greater China market. From its base at Hong Kong International, CASL maintains and supports Airbus and Boeing types for local and international airlines and operators. Gama says it will expand CASL’s capabilities to include base and line maintenance and on-ground support for a range of traditional business jets. “At a minimum, we plan to add Bombardier Global 5000, 6000, Gulfstream G450, G550 and G650 aircraft approvals this year,” the company says. ■


INDIA

Special report

Losing its edge

Dassault

Ahead of the biennial Aero India show, we look at how the nation’s air force is striving to arrest a rapid decline in its combat strength via acquisitions and partnerships, and review New Delhi’s diverse trainer and rotorcraft activities

A September 2016 order for 36 Rafales will provide sufficient jets to equip two squadrons, with deliveries to begin during 2019 MIKE RAJKUMAR BENGALURU

I

ndia’s air force continues to grapple with the challenge of sustaining its combat fleet to project a strong defensive and offensive posture on the nation’s eastern and western borders. Defence credibility, however, comes from the service’s existing force structure. The air force today is down to 33 operational fighter squadrons, of which 24 are made up of types of Russian origin, namely Mikoyan/ RAC MiG-21s, MiG-23s, MiG-27s, MiG-29s and Sukhoi Su-30MKIs. By 2024, the bulk of this fleet – 11 squadrons of obsolete MiG-21s and MiG-27s – will have retired, having completed their total technical life. In 2017 alone, two squadrons of MiG-21s and at least one of MiG-27s will go. Given these retirements, for the next decade, the Indian air force will be lucky to retain – let alone surpass – its current strength. “We need numbers, as we are not building force structures for Pakistan and the main concern is China,” says Air Marshal M Matheswaran, a retired deputy chief of integrated defence staff who has served in advisory roles to Hindustan Aeronautics (HAL) and Reliance Industries. “India needs to build 26 | Flight International | 31 January-6 February 2017

up her military capability.” India’s ponderous defence bureaucracy and decision-averse politicians have finally woken up to the necessity of pushing the air force up to its authorised strength of 42.5 combat squadrons. But getting to this level is not likely until 2035. The purchase of 36 Dassault Rafales in September 2016 marked the end of India’s decadelong medium multi-role combat aircraft (MMRCA) acquisition saga. New Delhi will pay €7.75 billion ($8.2 billion) for the jets, along with associated weapons and support packages. Rafale deliveries to India are to start in September 2019 and will conclude in April 2022, allowing the air force to stand up two operational squadrons of the “swing-role” type.

CAPABLE ACQUISITION Each Rafale will cost India’s defence ministry €91 million. Armaments come from MBDA: Meteor beyond-visual-range and Mica IR and RF air-to-air missiles, and Scalp cruise missiles. Commenting on the impact of the acquisition, Teal Group analyst Richard Aboulafia says: “The Rafales will by a wide margin be India’s most capable and service-ready air-

“We need numbers, as we are not building force structures for Pakistan and the main concern is China” Air Marshal M Matheswaran Retired deputy chief of integrated defence staff

craft. The Su-30s are certainly capable, but reliability has been a big challenge, and they are quite expensive to operate. Overall, the Rafales are likely to be a more valuable asset.” Aboulafia pegs Rafale maintenance costs at around $15,000/h, including engine support. The air force has also contracted for five years of performance-based logistics support, with an option to extend this arrangement by a further seven years. Dassault will also provide product support for a period of 50 years. Under the terms of the inter-governmental agreement between India and France, there is no provision for any technology transfer, but Dassault must satisfy offset provisions for 50% of the value of the aircraft and weapons package. “Offsets are extremely expensive,” says flightglobal.com

INDIA

Fighters

Lockheed has fresh hopes of an F-16 deal combat aircraft. Both Lockheed and Saab will have to navigate strict Indian requirements for access to key technologies, which could prove a stumbling block for an early conclusion to negotiations. “India is one of the many places the Trump administration is going to have to choose between priorities,” says Aboulafia. “If US companies agree to transfer the necessary work and technology to India, they will likely have a strong advantage.” Aboulafia’s colleague at Teal, Joel Johnson, says both the Lockheed and Saab offers are contingent on Washington DC’s approval, owing to the large number of systems and technologies in both candidates that are covered by US International Traffic in Arms Regulations (ITAR). “Saab will have to get US approval for the sale of Gripen to anyone, as it contains considerable US ITAR-controlled items, including the GE [Aviation F414] engine,” he says. “It would need US approval (and likely specific company approval depending on what rights the defence department has to the intellectual property involved) for the transfer of any US military technology on the plane.” But the Swedish manufacturer insists there are no doubts or restrictions over technology transfer. “Saab owns and controls all Gripen system software, and key mission systems such as the AESA radar, infrared search and track [sensor], datalinks and electronic warfare system are not sourced from the US. Items that are produced in the US, such as the engine, have already been made available to India,” says a representative for its Asia-Pacific arm.

“It is our understanding that the defence procurement policy is being revised with a strategic partnership view” Randy Howard Business development director, Lockheed Martin integrated fighter group

comprehensive system and software control, in addition to information sharing and technology transfer related to active electronically scanned array (AESA) radars with gallium nitride technology. Saab has also offered to provide design consultancy for India’s troubled domestic fighter, the HAL-built Tejas light

Dassault

TECHNOLOGY TRANSFER Apart from the Rafale deal, it emerged in 2016 that companies such as Lockheed Martin and Boeing had briefed Indian officials about producing types such as the single-engined F-16 and twin-engined F/A-18E/F Super Hornet in the country. Defence minister Manohar Parrikar subsequently announced that New Delhi wants a single-engined type, to be acquired under its “Make in India” initiative. Early this year, Parrikar said the defence ministry was working on a strategic partnership model under which single-engined fighters would be acquired. The two firms competing for the potential contract are Lockheed, with the F-16 Block 70, and Swedish airframer Saab, with the Gripen. Both manufacturers mounted a major effort in the late 2000s as part of the MMRCA campaign, but were among the first aircraft eliminated. The proposals from both companies emphasise technology transfer. Regarding acquisition numbers, Matheswaran reckons: “The air force needs at least 200 MMRCA-class aircraft, whether it is one type or two types. The primary factor in selecting two types will be cost and technology. Cost will be a key aspect, as is the technology access and how it will aid our defence aerospace industry.” Lockheed made its pitch to the Indian gov-

ernment in April 2016, offering to transfer the F-16 production line to India. It subsequently received a formal letter from New Delhi, expressing an interest in acquiring a single-engined fighter, to which it responded last October. “In our discussions neither we, nor the government of India have indicated a preference for an Indian production partner,” says Randy Howard, business development director for Lockheed’s integrated fighter group. “It is our understanding that the defence procurement policy is being revised with a strategic partnership view and it is also our understanding that New Delhi would like to encourage private industry.” Saab, which has long hoped to sell the Gripen to India, says it has laid out comprehensive plans to support further design of the platform in the country, in addition to creating the conditions for in-country manufacturing and support. It is also willing to offer India

Aero India

Aboulafia. “The buyer pays, not the seller. India needs intra-country competition if it wants to make offsets work. “India’s government needs to have a frank and open debate,” he adds. “Does it want weapons procurement of effective systems at a reasonable price, or want greater in-country capabilities and jobs? The two goals are not compatible.”

Dassault has pledged to support India’s future fighter operations over a 50-year period flightglobal.com

CLARITY NEEDED The relaxation of strict export controls and the actual extent of technology transfer is an area that Indian negotiators are likely to push for. Another aspect that needs clarity is the extent to which the air force would be allowed to integrate its choice of weapon systems on the F-16 or Gripen. Saab says that a fundamental element of the Gripen design philosophy, and a key aspect of the new avionics architecture on the E-model, was for easy and affordable weapons integration. “The Indian air force will be ❯❯


INDIA

Special report ❯❯ able to integrate existing and future weapons with Gripen quickly and at a manageable cost – this is not the case with most other modern fighters,” it says. Meanwhile, Johnson is dubious about how far Washington will go in allowing India to select its own weapons for the F-16. “The US government generally dislikes modifying US military aircraft to carry any foreign weapon

“The conditions and contractual terms that we have discussed for FGFA are very beneficial for India”

systems, and protects source code on our military aircraft so other countries can’t do the integration themselves.” New Delhi also sees the joint development of the fifth-generation fighter aircraft (FGFA) with Russia as another source of high-end know-how. With both MMRCA and FGFA, New Delhi bargained hard for technology transfer and succeeded in extracting favourable concessions, but neither deal panned out as expected. This year will mark a decade since the inking of the FFGA agreement between India

Saab

Suvarna Raju Chairman, Hindustan Aeronautics

Saab is promoting the Gripen E for a competition to select new single-engined fighters and Russia. “The conditions and contractual terms that we have discussed for FGFA are very beneficial for India,” says HAL chairman Suvarna Raju. “We are positive looking at the FGFA and I am hopeful that we will have positive movement in 2017.” The FGFA is seen as key to the air force’s

fleet in the 2030s and 2040s. India invested $265 million in the preliminary design phase, which was completed in June 2013. The negotiations for research and development contracts continue, although it appears increasingly likely that India will look to proceed with a licensed production and technology transfer model.

DEVELOPMENT

Mixed fortunes for Tejas as navy chief shuns carrier-based variant mance. Following this we will start the detailed design activities,” says CD Balaji, programme director at the Aeronautical Development Agency (ADA). “We are targeting 2020-2021 as the date for maiden flight on LCA Mk2,” he confirms. The ADA is also looking to have the first flight of the advanced medium combat aircraft (AMCA) prototype in 2025, and now plans to develop a new twin-engined fight-

er for the navy’s aircraft carriers. The proposed timelines for the AMCA and new navy fighter appear optimistic, considering the limited staff available to the ADA and the amount of work required to complete development of the Tejas Mk1A and Mk2. The main tasks for the LCA programme are completion of final operational clearance (FOC) tasks for the Tejas Mk1, as well as devel-

Aeronautical Development Agency

India’s light combat aircraft (LCA) fighter programme has had a long and chequered history. The process from first flight of a technology demonstrator to service entry, in July 2016, took 15 years. The Tejas also received government approval last year for another 83 examples specified to the Mk1A standard, adding to 40 earlier orders for the Mk1 version. But the programme received a public rebuke recently, when new navy chief Adm Sunil Lanba said the LCA’s naval version does not meet requirements, and that the service wants a new carrier-borne fighter by 2021-2022. The Tejas Mk1A will be the definitive version for the air force, to be followed by the reconfigured Mk2 and LCA navy Mk2 versions. “In the 2017 timeframe, we would like to do a reconfiguration of the aircraft to make it better in terms of aerodynamic perfor-

New Delhi has so far ordered 123 of the ADA-developed type


opment of the Mk1A, Mk2 and naval Mk2 variants. Initial operational capability (IOC) for the Tejas Mk1 was obtained in December 2013. This is the standard to which Hindustan Aeronautics (HAL) will build the first 20 fighters. Three aircraft have already been delivered to the air force and six more will follow this year. All 20 in the IOC standard will be handed over by the end of 2018, and the remaining 20 – in the full operational capability (FOC) standard – will follow by 2020. The ramp-up in production is vital to meeting air force requirements. To prepare for the increase in production rates for the Tejas, HAL will invest 50% of the cost required to raise capacity from eight aircraft per year to 16, while the air force and navy will invest 25% each. “If we can demonstrate the Mk1A standard by 2018 then all aircraft produced after that will be

flightglobal.com

INDIA

Fighters

Produced under licence by HAL since 1998, the Su-30MKI is the backbone of the service

Reconfiguring the jet to boost performance will begin this year to the Mk1A standard, including the 20 FOC aircraft,” says HAL chairman Suvarna Raju. Manufacturing of the 83 Mk1A aircraft will commence in 2020 and continue until about 2025. ADA officials peg the unit cost of the Tejas Mk1A at $40 million. New Delhi’s budgetary approval of $7.7 billion also includes the complete ecosystem for all 123 aircraft on order, support for the build-up of squadrons, and infrastructure for

flightglobal.com

per aircraft. To improve serviceability rates of the type – which are below the 75% availability rate mandated for peacetime – Raju says HAL is now looking at a follow-on contract for maintenance support. “We are in the last phase of technical discussions, following which commercial negotiations will take place, and we are close to concluding a contract,” he says. HAL’s Nashik overhaul facility for the Su-30MKI completed work on two aircraft last year, and six others will be delivered in 2017. The facility has the capability to overhaul up to 15 Su-30MKIs per year. ■

DDP USA/REX/Shutterstock

REDUCED SCOPE New Delhi appears to have given up on some of its ambitions for the type, namely the development of an India-specific variant with two seats. Bureaucratic wrangling on New Delhi’s part curtailed Indian participation in the programme at a time when Russia was pushing steadily ahead with the Sukhoi T-50. As the machinations in New Delhi continue around new types, the Su-30MKI remains the backbone of the air force, with an estimated 230 examples in service. Despite reliability issues, the thrust-vectored multirole platform has provided quality and quantity to an ageing fleet. The first orders were placed in November 1996, for eight Su-30K and 32 upgraded Su30MK multirole fighters. This was followed by orders in December 1998, October 2000 and December 2012 for the licensed production of 40, 140 and 42 Su-30MKIs, respectively, by HAL at its Nashik facility. The company has

now produced 188 Su-30MKIs in addition to the aircraft that were directly procured, and the last example is slated for delivery in 2020. With the type now approaching two decades in air force service, there appears to be increased momentum for a long-awaited upgrade programme. “Within the next three to six months there will be an official announcement that HAL will be the lead for the Su-30MKI upgrade,” says Raju. If the upgrade goes forward, the fleet will get new displays, avionics and an AESA radar, with costs running at $12-20 million

first- and second-line servicing. It also covers the establishment of ground infrastructure and engine support and servicing facilities at operating bases. The Tejas Mk1A will deliver substantially improved combat capability over preceding variants. It will be able to carry Rafael Derby beyond-visual-range and Vympel R-73 short-range air-to-air missiles. The Israeli company’s new I-Derby, which has an advertised range of

Aeronautical Development Agency

NC Agarwal, former director of design and development at HAL, was part of an official Indian delegation to see the first prototype. “You don’t see much of a difference in the internal structure between the Su-30 and FGFA,” he says. “The main difference is where the Su-30 makes use of a large amount of metallic structures, the FGFA makes use of composites in areas such as the wing. The FGFA, however, uses a large proportion of titanium.”

33nm (62km), has also been offered for use on the Indian fighter. ADA officials tell FlightGlobal that MBDA’s short-range Asraam is also being considered for the aircraft. HAL has already worked to integrate the European design along with a helmet-mounted display for the air force’s DARIN III upgrade to the Sepecat/HAL-built Jaguar, so no challenges are expected in the integration of the weapon with the Tejas. The Tejas Mk1A will also have a new active electronically scanned array (AESA) radar, an electronic warfare suite (comprising a digital radar warning receiver and podhoused jammer), and an in-flight refuelling probe. In December 2016, HAL issued a request for quotation for the supply of an AESA radar for the Mk1A to Elta Systems, Raytheon, Saab, Thales and Russia’s Rosoboronexport arms agency. The ADA says it is also planning to integrate an indig-

enously-developed AESA radar on one of the LCA prototypes. Surprisingly, India’s underperforming Kaveri engine has got a new lease of life and will be fitted on an LCA prototype by 2018. The nation’s Defence Research and Development Organisation (DRDO) will get help on the troubled engine from Snecma, as part of its offset obligations for the Indian air force’s order for 36 Dassault Rafales. The new effort to review the Kaveri programme will cost about $89 million, according to DRDO officials, who are optimistic that a Kaveri-powered LCA prototype will make its first flight in 2018-2019, once certification and safety-related aspects are resolved. Approximately $313 million has already been spent to design and develop a modern fighter-class engine under the Gas Turbine Research Establishment’s Kaveri programme. ■


INDIA


Special report

HAL has proposed an avionics upgrade for the Hawk 132, including new displays and an indigenously developed mission computer

Learning curves

With the oldest of its training assets dating back to the early 1970s and ever-growing demand for new pilots, India’s air force is pursuing multiple ambitious development projects MIKE RAJKUMAR BENGALURU

D

espite its declining combat fleet, the Indian air force still requires large numbers of trained pilots and technical personnel, especially given the ongoing acquisition of new fixed- and rotary-wing types. The air force operates three instructional types: the Pilatus PC-7 MkII basic trainer, Hindustan Aeronautics’ (HAL) Kiran Mk1A and MkII intermediate jets, and BAE Systems’ Hawk advanced jet trainer. Two indigenous types are in development and yet to enter service: HAL’s Turbo Trainer 40 (HTT-40) and the Hindustan Jet Trainer 36 (HJT-36) Sitara. The service has traditionally stuck to a 30 | Flight International | 31 January-6 February 2017

training pattern consisting of basic, intermediate and advanced phases. However, a shortfall in the availability of the obsolete Kiran and delays associated with the HJT-36 have forced it to use the PC-7 MkII turboprop for both basic and intermediate training. A mix of the Swiss-built type and Kirans is now used for the latter of these phases. Deliveries of the 75 PC-7 MkIIs signed for in May 2012 were completed in November 2015. An additional 38 are to be procured, and negotiations are under way between the government, the air force and Pilatus. The Kiran intermediate jet trainer entered service in 1973. While the oldest examples are already being phased out, an estimated 140 of the type, including both the Mk1A and

MkII, remain in service. The bulk of the Kiran aircraft are expected to be retired towards the end of 2019. To meet its advanced training needs, New Delhi placed orders for 123 Hawk 132s in two batches. The first was for 66 aircraft: 24 acquired as fly-aways from BAE and 42 manufactured under licence by HAL. A follow-on order for 57 aircraft – 40 for the air force and 17 for the navy – was signed in 2010. A third contract for 20 aircraft, for the air force’s Suryakiran aerobatic display team, has yet to materialise, and the delay is likely to result in a gap in HAL’s Hawk production line in Bengaluru. In 2016, it emerged that in addition to the 20 display aircraft required, the procurement of additional advanced trainers was being considered by the Indian defence ministry. Up to 30 could be ordered, to be built under licence by HAL.

HAWK UPGRADES HAL also continues to propose an upgrade for the existing Hawk 132 fleet. “The 100th Hawk that has been built is now owned by HAL and we will install and test all the upgrades on this aircraft,” says chairman Suvarna Raju. At the Aero India show in 2015, HAL showcased a proposed display and avionics upgrade for the Hawk fleet, which would replace the existing cockpit displays and add a moving map. There is also a plan to install an indigenously developed mission computer. ❯❯ flightglobal.com

IAI. Over 25 years of teaming with our Indian partners for defense and growth With an unrivalled record of proven cooperation with India’s defense forces and industry, IAI has become synonymous with innovation, reliability and trustworthiness. Together with our Indian partners we share the Make in India vision in space, air, land and sea. We are committed to continue our long-term strategic cooperation with India for a brighter and safer future.

SEE US AT

AERO INDIA 2017 www.iai.co.il [email protected]

Israel Pavilion Hall A, Stand A1-1a

INDIA

DEVELOPMENT PROGRESS A promising indigenously developed aircraft programme is emerging in the new HTT-40. Despite air force resistance to an additional basic trainer type, HAL began developmental work in 2013 with an investment of $30 million to fund preliminary and detailed design, and first flight took place in May 2016. Three HTT-40 prototypes and two static-test examples will be built. “We have successfully demonstrated our capability to design and test-fly a basic trainer in a short period,” Raju says. “The aircraft’s initial performance has exceeded our expectations and we hope to complete developmental work leading to certification within the envisaged timeline.”

“The [HAL Sitara] requires a major fix, as spin recovery is yet to be demonstrated” NC Agarwal Former director of design and development, Hindustan Aeronautics

Sitara programme could face the axe from the test crew, to further improve handling qualities, and a pressurised fuel system has been successfully tested. The second prototype, PT-2, is expected to debut within the next few months, and PT-3 is likely to take to the air in early 2018. It is now undergoing weight reduction efforts to optimise the design by about 200kg (440lb). One aspect being given highest priority by the designers is the completion of stall/spin flight trials for the HTT-40. PT-1 will be fitted with an anti-spin parachute system before such flight trials are undertaken. It is estimated that approximately 100h of flight testing will be required before the stall and spin characteristics will be approved. The HTT-40 programme has also earned the approval of defence minister Manohar Parrikar, who has made it clear that there will be no further import of basic trainers for the air force. With Stage II training now being handled by basic trainers, there has been an increase in the overall requirement for this class, from 181 aircraft to 210.

Deb Rana/Hindustan Aeronautics

The first HTT-40 prototype (PT-1) has already been flown to an altitude of 15,000ft (its service ceiling will be 25,000ft), attained a speed of 220kt (410km/h) and demonstrated a glide ratio of 11:1. A few modifications have already been instituted, based on feedback

PC-7 MkII fleet is now used to deliver both basic and intermediate instruction


HAL is looking at a “Combat Hawk” or ❯❯ “Advanced Hawk” in partnership with BAE. In an email to FlightGlobal, the UK company says: “The development of an Advanced Hawk demonstrator aircraft continues to progress. In terms of a new ‘slatted’ wing, the benefits it brings include the improved lift capacity and angle-of-attack capability as well as a greater turn rate. It will also improve runway performance.” BAE is also looking at the potential use of a large-area display for Indian Hawks. It is also evaluating the UK Royal Air Force’s Hawk T2 standard for other capabilities that would potentially be useful for India.

HTT-40 test flights have been promising; the air force could acquire more than 120 units 32 | Flight International | 31 January-6 February 2017

FlightGlobal

Special report

HAL already has a letter of intent for 70 HTT-40s – the minimum number to be acquired for the project to be economically viable – and it can now expect total orders for the type to exceed 120 units. Company officials note that the model is being designed to have the required performance to perform Stage II training, should the air force desire to use this.

EXPORT POTENTIAL If all goes smoothly and the HTT-40 enters service, the basic trainer is likely to receive export enquiries from countries friendly to India. FlightGlobal understands that the air force chiefs of Bangladesh and Sri Lanka have had a chance to see the prototype. An early introduction to the programme for such potential export customers could allow HAL to plan for their requirements. HAL’s other indigenous trainer development programme is the HJT-36 Sitara, although this programme has been in a state of terminal decline for several years. Development started in 1999 with a mandate for initial operational clearance by 2004. But 17 years later, final efforts are now under way to revive the programme, after it was found during flight testing that the aircraft had serious aerodynamic difficulties, resulting in unsatisfactory stall and spin characteristics. HAL has made a major push to resolve the issue. The aircraft’s stall performance has been dealt with, but its poor spin qualities remain. NC Agarwal, a former director of design and development at HAL, says: “Something is wrong in the basic configuration of the aircraft. The aircraft requires a major fix, as spin recovery is yet to be demonstrated.” HAL is looking for a consultant to help with the spin problem, after a possible arrangement with BAE fell through. But if no progress is made the programme could be shut down before the end of 2017. No test flights have taken place for almost a year, and even if solutions are found, it would take 18-24 months to complete certification-related tasks. There would also be the costs related to restarting the idle line at HAL’s Kanpur facility, which is thought to have produced six limited series production aircraft. ■ flightglobal.com

INDIA


Rotorcraft

Hindustan Aeronautics’ light combat helicopter is one of five new types slated to enter air force operation by the end of this decade

Ready to attack

Modernising India’s helicopter fleet through acquisitions and upgrades will secure its rotary credentials for the coming years, with indigenous projects increasingly key to the force mix

T

he Indian air force operates about 500 rotorcraft, predominantly Russian Mil Mi-17 variants and a few squadrons of older Mi-8s, in addition to about a dozen Mi-25/35 attack helicopters. Incredibly, the air force and other services continue to operate substantial numbers of obsolescent Hindustan Aeronautics (HAL) Cheetah and Chetak helicopters; licence-built examples of the Aérospatiale SA315B Lama (Cheetah) and SA316 Alouette III (Chetak). India’s air force and army also operate an upgraded version of the Cheetah, called the Cheetal, which can operate at altitudes as high as 23,000ft and is powered by a 1,100shp (820kW) Safran Helicopter Engines TM3332M2 turboshaft. Both services still have about 280 Cheetahs and Chetaks in use, although serviceability rates are thought to be poor and there are growing safety concerns.

flightglobal.com

By 2020, the air force will have started induction of five new rotorcraft types; the indigenous HAL light combat helicopter (LCH) and light utility helicopter (LUH), Kamov’s Ka226T and Boeing’s AH-64E Apache and CH47F(I) Chinook. In all, more than 500 new rotorcraft will be inducted into its fleet over the next 10 years.

LIGHT WORK The Ka-226T Sergei light helicopter emerged as the winner in 2015 of a tortuous procurement process for a new reconnaissance and surveillance helicopter (RSH) that would replace the outdated Cheetah and Chetak fleets, and 200 have now been contracted for: 135 for the army and 65 for the air force. Of those, 60 will be acquired in fly-away condition from Russian Helicopters, and the rest produced under licence by HAL. First delivery dates for examples produced under licence are likely to slip because of delays in setting up infrastructure and the finali-

sation of aircraft specifications. It also now appears that a new engine production facility will be required for the Ka-226T’s Safran Arrius 2G1s, as HAL’s existing partnership with the European company to produce TM3332B2 and Ardiden 1H1 Shakti engines in Bengaluru is already at full capacity. The LUH is a new 3t-class, single-engined helicopter designed and developed by HAL to meet the RSH requirement. Its maiden flight ❯❯


MIKE RAJKUMAR BENGALURU

Versatile Mi-8/17-series provides vital lift 31 January-6 February 2017 | Flight International | 33

INDIA

Special report

“We have declared the LCH ready for induction depending on the weapons selection” Suvarna Raju Chairman, Hindustan Aeronautics

and LCH is that the Indian armed forces have now firmly incorporated simulators into their training philosophies. Simulator training is now being undertaken by all military and paramilitary users of Dhruv. “We are planning to induct the Rudra WSI cockpit for training in 2018 and we will be bidding for the LCH and LUH simulators,” says Wg Cdr (retired) Krishna, chief executive of the Helicopter Academy to Train by Simulation of Flying (HATSOFF), a joint venture between HAL and CAE. In the 2016 fiscal year the Dhruv (conventional) Level D simulator at HATSOFF was used for 2,200h. The air force’s medium helicopter fleet consists solely of the rugged Mi-8/17 series, which has proven highly successful in its service and continues to garner orders. The service has 34 | Flight International | 31 January-6 February 2017


AT THE FRONT The LUH, design and development of which started in early 2009, has a maximum all-upweight of 3,150kg (6,940lb) and a range of 190nm (350km). It will carry six passengers and two pilots. Deliveries of HAL’s 5t-class Dhruv advanced light helicopter (ALH) to the armed forces continues and all 159 on order will be transferred by 2018. However, additional orders are likely to keep the production line running into the 2020s. HAL is building 24 examples per year, and Dhruv MkIII examples now being delivered are available with an Israeli-built forwardlooking infrared sensor. At present the most advanced variant is the Dhruv MkIV weapon system integrated (WSI), also known as the Rudra. HAL has plans to develop a MkV version, which will be an update of the MkIII utility model, with improvements to the main gearbox, enhanced avionics and better aerodynamics. Another aspect that has emerged with the indigenous helicopters such as Dhruv, Rudra

Dhruv deliveries for the air force and army will conclude in 2018 under current orders


❯❯ was performed in September 2016 and developmental testing is under way. Series production of the LUH is slated to begin in 2018, at a new manufacturing facility to be built at Tumkur, about 150km (90 miles) from Bengaluru. A production run of 187 units has been approved. The LUH is powered by an Ardiden-1U engine developing 1,005shp. This was selected in 2014 and engine certification is planned for 2018. The 1U is a derivative of the licencebuilt Shakti.

Armed Rudra is most advanced ALH model procured 139 of the new Mi-17V-5 model, worth $2.4 billion across two batches ordered in 2008 and 2012, for 80 and 59 examples, respectively. Deliveries were completed in September 2015 and the air force is expected to finalise a deal for an additional 48 helicopters, worth just over $1 billion, this year. A mid-life upgrade for 90 Mi-17-series helicopters has also been proposed by the air force. The first Mi-8s were inducted between 1971 and 1980, and a few more were added between 1981 and 1990. The Mi-17s entered service from 1984 to 1989 and Mi-17-1Vs between 2000 and 2003.

ATTACK FOOTING The LCH is a tandem-seat type being designed to stringent air force and army requirements for a high-altitude attack helicopter, and makes extensive use of the experience gained from the Dhruv MkIII and MkIV variants. “We have proved the basic airframe and we already have the experience of weapons integration which we performed on the Rudra,” says HAL chairman Suvarna Raju. “Now we have declared that the LCH is ready for induction depending on the weapons selection by the individual customer.” The LCH has been designed to operate at 10,000-12,000ft with an armaments load on its stub wing.

Commenting on the completion of weapons integration, which also requires the finalisation of the armament load by the user, Raju says: “Instead of waiting for weapons integration and declaration of initial operational capability, which is specific to Indian services, we went ahead and proved the basic platform at different altitudes and have completed hot and cold weather trials.” The two weapon stations on either side of the LCH can carry anti-tank guided missiles, rockets or air-to-air missiles. “The Mistral ATAM launcher has already been integrated on the Rudra and successful test firings have been carried out,” says European producer MBDA. “Integration on the LCH is under way and progressing as per schedule.” Armed with a Nexter THL20 gun, the LCH is also fitted with a slewable electro-optical sighting system, helmet-mounted cueing system, radar/laser missile warners and a countermeasures dispensing system. Meanwhile, the air force will receive its first US-produced rotorcraft in nearly 70 years when it inducts its Apaches and Chinooks from 2019. In the late 1950s and early 1960s the service received small numbers of the Bell 47G. Deliveries of the first examples of 22 AH64Es and 15 CH-47F(I)s are scheduled for July 2019 and March 2019, respectively; more than a decade after the so-called acceptance of necessity for the acquisitions was approved by the defence ministry. Contracts for both types were concluded in September 2015, with the Apaches being acquired via the US government’s Foreign Military Sales (FMS) mechanism and the Chinooks under a direct commercial sale. The air force still operates two squadrons of ageing Mi-24/35 attack helicopters, to be retired by the end of the decade and replaced by Apaches. The Chinooks will succeed Mi-26 heavy-lift helicopters, only a handful of which were inducted from 1985. Only one example of the type is known to be operational. ■ flightglobal.com

STRAIGHT&LEVEL From yuckspeak to tales of yore, send your offcuts to [email protected]

Remember the Caledonian Girls, the fabled cabin crew from British Caledonian’s Beach Boys-inspired TV ads from the early 1980s? Ten of them were back at Biggin Hill in January – in original tartan uniforms and accompanied by rousing bagpipes – for an event in support of two charities that was attended by around 100 former staffers including former BCAL boss Alastair Pugh. A Piper Archer, painted in the carrier’s former colours, was named Julie – the spirit of BCAL, in memory of former airline colleague Julie Washington, who died of cancer last year after receiving care at the Phyllis Tuckwell Hospice in Farnham. The Piper (bagpipes, Scotland, geddit?) will raise funds for the hospice as well as The Golden Lion Children’s Trust, formed by BCAL employees in the early 1970s to provide support for disadvantaged kids. The aircraft was funded in memory of his late wife by Robin Washington, and engineered by Biggin-based Falcon Flying Services.

Boy racer

Spaceman and Runway Girl flightglobal.com

Aviation in future

Flying… has become easy and comparatively safe, and therefore everyone who can should take it up, in peace time, as a means of travel and of recreation.

War in the air

Tartan as they mean to go on: Caledonian Girls, Pugh and Washington unveil the Piper Archer at Biggin Hill

Gone beyond the Moon

teenage boy driver on your finance statement. He may behave for a while, but he could still take out the neighbour’s mailbox. You’ve got to have some insurance for that.”

Vintage whine

Nothing made us feel our age more this week than a press release from an aircraft leasing and trading company announcing its disposal of two “vintage” aircraft – a 1997 Airbus A320 and a Boeing 737 from 1998.

Numbers game

Nice touch by Airbus. The latest A350-1000 flight-test aircraft and the first with representative cabin fitted – MSN65 – has the F-W registration LXV.

FlightGlobal

We loved Southwest Airlines’ finance chief Chris Monroe’s colourful metaphor to justify fuel hedging, at the Airline Finance shindig in Dublin. “Fuel prices are like having a

BillyPix

Caledonian skirl as BCAL is back

The death of Gene Cernan at the age of 82 has brought back fond memories of encounters between Budgie staffers and the Last Man on the Moon over the years. The commander of Apollo 17 – NASA’s final manned lunar mission in 1972 – and the second American to walk in space was an enthusiastic supporter of business aviation. He served as the public face of Bombardier’s Safety Standown, held in partnership with industry body NBAA, and was a convention regular. Cernan was a pleasure to interview: insightful, modest and courteous, as illustrated in a video from the NBAA show in 2010 – when he spoke to our former staffer Mary “Runway Girl” Kirby about business jets and returning to the Moon (left). Check it out on YouTube http:// bit.ly/2jstRT4 The one time we recall his charm slipping was when a journalist at the Singapore air show asked him whether the Moon landings were faked. We’re sure it wasn’t the first time he’d heard the bonkers back-lot-in-Hollywood conspiracy theory, but he was visibly furious all the same.

The Japanese are sailing freely about the western side of the Strait of Malacca, landing troops at their will on the Bay of Bengal side of Malaya and in the Philippines, besides despatching carriers to New Guinea. More air squadrons have reached the defenders of Malaya, and a vigorous air offensive against the Japanese has begun.

Gaining thrust

Pratt & Whitney has run its JT9D turbofan engine for the first time. The engine, which will power the Boeing 747, reached a thrust of some 25,000lb during the first exploratory run, which was “smooth and satisfactory” according to the company.

Bombardier buy

The de Havilland Aircraft division of Boeing Canada is being sold to Bombardier of Montreal, Quebec, and the Ontario provincial government. Under the sales agreement, Bombardier will contribute C$51 million (then $45 million) in equity, and the province of Ontario will contribute C$49 million.

100-YEAR ARCHIVE Every issue of Flight from 1909 onwards can be viewed online at flightglobal.com/archive


READER SERVICES EVENTS 14-16 February

Routes Americas Las Vegas, Nevada, USA routesonline.com

14-18 February

Aero India Air Force Station Yelahanka, Bengaluru aeroindia.in

19-23 February

International Defence Exhibition and Conference (IDEX) Abu Dhabi, United Arab Emirates idexuae.ae

22-23 February Aviation Africa Kigali, Rwanda aviationafrica.aero

28 Feb-5 March

Avalon 2017 Geelong, Victoria, Australia airshow.com.au

4-11 March

IEEE Aerospace Conference Big Sky, Montana, USA aeroconf.org

6-9 March

HAI Heli-Expo Dallas, Texas, USA heliexpo.rotor.org

14-16 March

IATA World Cargo Symposium Abu Dhabi, UAE iata.org/events

19-21 March

Routes Asia Okinawa, Japan routesonline.com

21-25 March

Langkawi International Maritime & Aerospace Exhibition Langkawi, Malaysia limaexhibition.com

4-6 April

Aircraft Interiors Expo Hamburg, Germany aircraftinteriorsexpo.com

4-7 April

LAAD Defence & Security Rio de Janeiro, Brazil laadexpo.com.br/2017/en.html

EDITORIAL, ADVERTISING, PRODUCTION & READER CONTACTS EDITORIAL +44 20 8652 3842 Quadrant House, The Quadrant, Sutton, Surrey, SM2 5AS, UK [email protected] Editor Craig Hoyle +44 20 8652 3834 [email protected] Deputy Editor Dominic Perry +44 20 8652 3206 [email protected] Head of Strategic Content Murdo Morrison FRAeS +44 20 8652 4395 [email protected] Features Editor Dan Thisdell +44 20 8652 4491 [email protected] Business & General Aviation Editor Kate Sarsfield +44 20 8652 3885 [email protected] Consulting Editor David Learmount +44 7785 901787 [email protected] Magazine Enquiries [email protected] AIR TRANSPORT TEAM Editor Flightglobal Premium News Graham Dunn +44 20 8652 4995 [email protected] Managing Editor Niall O’Keeffe +44 20 8652 4007 [email protected] Managing Editor – Flight Airline Business Lewis Harper +44 20 7911 3105 [email protected] Air Transport Editor David Kaminski-Morrow +44 20 8652 3909 [email protected] Air Transport/MRO Reporter Michael Gubisch +44 20 8652 8747 [email protected] Senior Reporter Oliver Clark +44 20 8652 8534 [email protected] AMERICAS Americas Managing Editor Stephen Trimble +1 703 836 8052 [email protected] Deputy Americas Editor – Air Transport Ghim-Lay Yeo +1 703 836 9474 [email protected] Americas Finance Editor Edward Russell +1 703 836 1897 [email protected] Senior Reporter Jon Hemmerdinger +1 703 836 3084 [email protected] Aviation Reporter Leigh Giangreco +1 703 836 7442 [email protected] ASIA/PACIFIC Asia Editor Greg Waldron +65 6780 4314 [email protected] Asia Air Transport Editor Mavis Toh +65 6780 4309 [email protected] Asia Finance Editor Ellis Taylor +61 498 878 583 [email protected] Reporter Aaron Chong +65 6780 4851 [email protected] Reporter Firdaus Hashim +65 6780 4313 [email protected]

8-11 May

EUROPE/MIDDLE EAST Israel Correspondent Arie Egozi

22-24 May

FINANCE Global Finance Editor Sophie Segal +1 212 448 2253 [email protected] Europe Finance Editor Jamie Bullen [email protected]

Xponential unmanned systems and robotics Dallas, Texas, USA xponential.org European Business Aviation Convention & Exhibition (EBACE) Geneva, Switzerland ebace.aero

4-6 June

IATA Annual General Meeting Cancun, Mexico iata.org

19-25 June

Paris air show Le Bourget, Paris siae.fr

For a full list of events see flightglobal.com/events

FLIGHTGLOBAL.COM Web co-ordinator Rebecca Springate +44 20 8652 4641 [email protected] EDITORIAL PRODUCTION Global Head of Design & Production Alexis Rendell Chief Copy Editor, Europe Dan Bloch Layout Copy Editors Sophia Huang, David Mawer, Tim Norman Global Production Editor Louise Murrell Deputy Global Production Editors Terence Burke, Rachel Warner Deputy Digital Producer Damion Diplock Web Production Editor Andrew Costerton Senior Designer Christine Zhang Designers Scarlett Huang, Coco Li, Lin Ning, Lucy Xiao, Shirely Xiao, Sonja Ye Consulting Technical Artist Tim Hall


DISPLAY ADVERTISEMENT SALES Quadrant House, The Quadrant, Sutton, Surrey, SM2 5AS, UK EUROPE Global Sales Manager Mark Hillier +44 20 8652 8022 [email protected] Key Account Manager Grace Hewitt +44 20 8652 3469 [email protected] Display Sales Executive Chris Pilkington +44 20 8652 8130 [email protected] Sales Support Gillian Cumming +44 20 8652 8837 [email protected] NORTH & SOUTH AMERICA Vice-President, North & South America Rob Hancock +1 703 836 7444 [email protected] Regional Sales Director Warren McEwan +1 703 836 3719 [email protected] Sales Executive Kaye Woody +1 703 836 7445 [email protected] Reed Business Information, 333 N.Fairfax Street, Suite 301, Alexandria, VA 22314, USA ITALY Sales Manager Riccardo Laureri +39 (02) 236 2500 [email protected] Laureri Associates SRL, Via Vallazze 43, 20131 Milano, Italy ISRAEL Sales Executive Asa Talbar +972 77 562 1900 Fax: +972 77 562 1903 [email protected] Talbar Media, 41 HaGiva’a St, PO Box 3184, Givat Ada 37808, Israel ASIA/AUSTRALASIA Key Account Manager Jay Ee +65 6780 4301 [email protected] Fax: +65 6789 7575 1 Changi Business Park Crescent, #06-01 Plaza 8 @ CBP, Singapore 486025 RUSSIA & CIS Director Arkady Komarov [email protected] Tel/Fax: +7 (495) 987 3800 World Business Media, Leningradsky Prospekt, 80, Korpus G, Office 807, Moscow 125190, Russia CLASSIFIED & RECRUITMENT Sales Manager Sophie Wild +44 20 8652 4239 [email protected] Classified Sales Executive Chris Pilkington +44 20 8652 8130 [email protected] Recruitment Sales Executive Chris Harding +44 20 8652 4900 [email protected] ADVERTISEMENT PRODUCTION Production Manager Sean Behan +44 20 8652 8232 [email protected] Production Manager Classified Alan Blagrove +44 20 8652 4406 [email protected] MARKETING VP Marketing Justine Gillen +44 20 8652 8031 [email protected] DATA TEAM Director of Data Trevor Mountford [email protected] Fleet Research Manager John Maloney +44 20 8564 6704 [email protected] PUBLISHING MANAGEMENT Chief Operating Officer Philippa Edward [email protected] Executive Director Content Max Kingsley-Jones [email protected] Commercial Director Publishing & Conferences Stuart Burgess [email protected]

READER SERVICES Subscriptions Jenny Smith Flight International Subscriptions, Reed Business Information, PO Box 302, Haywards Heath, West Sussex, RH16 3DH, UK Subscription Enquiries From UK: 0330 333 9533 From overseas: +44 1444 475 682 Fax +44 1444 445301 [email protected] Subscription Rates 1 Year: £145/$229/€179 2 Years: £246/$389/€304 3 Years: £348/$549/€429 Only paid subscriptions available. Cheques payable to Flight International Flight International welcomes unsolicited contributions from readers but cannot guarantee to return photographs safely. © and Database Rights 2016 Reed Business Information Ltd. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior permission in writing of the publishers. Flight Ascend Consultancy is a leading provider of expert advisory and valuations services to the global aviation industry. Its specialist, independent services inform and shape the strategies of aviation businesses worldwide. It offers an unrivalled breadth and depth of aviation expertise and experience, backed by unique access to robust industry data. flightglobal.com/consultancy Tel: +44 20 8564 6700 email: [email protected] Flight Dashboard is a subscriber service which provides news and analysis of the aviation industry, from fleet information to orders, deliveries, airline start-ups and routes and network coverage. Personalise your research by airline, region or country to find the market intelligence you need to support planning, competitive strategy and find new opportunities. flightglobal.com/dashboard With information on more than 360,000 aircraft, Flight Fleets Analyzer provides you with the most comprehensive current and historical fleet data and detailed information about aircraft specifications. It also enables you to access hours and cycles data to understand aircraft usage across the global fleet. flightglobal.com/fleetsanalyzer Registered at the Post Office as a newspaper. Published by Reed Business Information Ltd, Quadrant House, The Quadrant, Sutton, Surrey SM2 5AS, UK. Tel: +44 20 8652 3500. Newstrade distributed by Marketforce (UK), 2nd Floor, 5 Churchill Place, Canary Wharf, London, E14 5HU, UK. Tel: +44 20 3787 9001. Classified advertising prepress by CCM. Printed in Great Britain by William Gibbons and Sons Ltd Flight International published weekly 49 issues per year. Periodicals postage paid at Rahway, NJ. Postmaster send changes to Reed Business Information, c/o Mercury International Ltd, 365 Blair Road, Avenel, NJ 07001 This periodical is sold subject to the following conditions: namely that it is not, without the written consent of the publishers first given, lent, re-sold, hired out or in any unauthorised cover by way of trade, or affixed to, or as part of, any publication of advertising, literary or pictorial matter whatsoever. No part of the content may be stored electronically, or reproduced or transmitted in any form without the written permission of the Publisher. ISSN 0015-3710 (Print) ISSN 2059-3864 (Online)

flightglobal.com

TEL +44 (0) 20 8652 8130 EMAIL [email protected]

CLASSIFIED

Classified

Calls may be monitored for training purposes

Business services

flightglobal.com

Equipment, maintenance and service


TEL +44 (0) 20 8652 8130 EMAIL [email protected]

Courses and tuition

RECRUITMENT flightglobal.com/jobs

Getting careers off the ground TEL +44 (0) 20 8652 4900 EMAIL [email protected]

TIME FOR YOUR CAREER TO TAKE FLIGHT

Start your job search today flightglobal.com/jobs

AVIATION °| AIRLINES |° AEROSPACE


flightglobal.com

RECRUITMENT flightglobal.com/jobs flightglobal.com


RECRUITMENT flightglobal.com/jobs

WE ARE HIRING IN LONDON FARNBOROUGH GROUND AND SIMULATOR PILOT INSTRUCTORS

SIMULATOR TECHNICIANS

FlightSafety International, London Farnborough Training Centre is seeking Ground and Simulator Instructors to instruct Initial and Recurrent Pilot Training courses. Successful applicants will receive full training and a competitive salary and benefits package. Requirements • Hold or have held JAA/EASA licences • Have at least 1,500 hours as a pilot of multi-pilot aircraft, or for single pilot types, at least 1,500 hours in multi-pilot operations and have completed at least 500 hours of flight time as PIC on single pilot aircraft Preferences • Previous instructional experience • G650, G550, HS125, B200, C680, C560, C500, C525, C510 ratings or similar

We are also currently seeking Simulator Technicians based in London Farnborough. Requirements • Experience in direct technical support, including actual operations, fault diagnosis and repair of digital and analogue flight training devices and subsystems.

To apply, visit Careers at www.flightsafety.com or call +44 (0) 1252 554 500 Equal opportunity employer/M/F/D/V • A Berkshire Hathaway Company


flightglobal.com

RECRUITMENT flightglobal.com/jobs flightglobal.com


RECRUITMENT

TIME FOR YOUR CAREER TO TAKE FLIGHT

Start your job search today flightglobal.com/jobs

flightglobal.com/jobs

EMPLOYMENT SERVICES INDEX

AVIATION | AIRLINES | AEROSPACE

Flight crew

Flight crew

Maintenance

M

M

E

Engineering

Worldwide specialist for Aerospace Engineering, Certification & Management Services E: [email protected] T: +49 (0) 8153 93130 W: www.gdcengineering.com

Tel: +353 1 669 8224 Fax: +353 1 669 8201 Email:[email protected] [email protected] Email: www.sigmaaviationservices.com www.sigmaaviationservices.com

Call: +44 (0)1524 381 544 Email: [email protected] www.safehands.aero you’re in safe hands with us

The preferred company for Stress (Fatigue & DT), GFEM, Composites), Aeronautical Research. Business units: Contract staff, Workpackages, Innovation and New Concepts, Aeronautical Research. www.bishop-gmbh.com Contact [email protected] Tel 0049-(0)40-866-258-10 Fax 0049-(0)40-866-258-20

Engineering

$YLDWLRQ3HRSOH([SHUWV 5HFUXLWPHQW 6NLOOV,QVLJKWV

Strongfield Specialist Aerospace Personnel

&RPSOLDQFH )OLJKW2SV6XSSRUW

ZZZDHURSURIHVVLRQDOFRP 42 | Flight International | 31 January-6 February 2017

+44 (0)20 8799 8924 [email protected] www.strongfield.com

flightglobal.com

WORKING WEEK WORK EXPERIENCE DAVE EDWARDS

Focused on the power of Synergy What triggered your interest in aviation? A family holiday in 1982 on a Britannia Airways Boeing 737 from London Luton to Faro, Portugal marked my first flight. From the moment we took off I was hooked and it’s been in my blood ever since. After that I was lucky that my childhood was spent living close to Welshpool airfield, which gave me the opportunity to work for my private pilot licence, which I received just after my 17th birthday. I still credit the late Bob Jones, who developed the airport from nothing, with being the catalyst for where my career’s taken me. Tell us about your career to date After university in Plymouth I moved to London Luton and London Heathrow in business aircraft handling. In 1998, my 15year career with Gama Aviation started, ending in being the group general manager and managing director for the Middle East and Asia. I was then approached to join Qatar Airways as executive vice-president, heading their business aviation division. After eight years in the Middle East – a bit more than my original plan of six months – I came back home to the UK to join Synergy Aviation with some former colleagues and friends to develop an aircraft management and charter company with a fresh approach to the companies we’d worked with in the past. I’m also on the board of Web Manuals, a Swedish cloudservice provider setting the standard for digitising manuals.

IN ASSOCIATION WITH

Synergy Aviation

Building on successful roles in the UK and the Middle East, Dave Edwards joined former colleagues at rapidly-growing Synergy Aviation, with the aim of transforming business aircraft management services

Edwards’ experience includes earlier stints at Gama and with Qatar What have been the highlights? Being part of the senior management team growing a company from five aircraft to over 100 is something I’m very proud of. Starting up a business jet operation successfully in the Middle East in the largest global recession also features highly. Now seeing Synergy Aviation begin to shape itself for future growth and developing our service offering is hugely rewarding for us all. If I have to choose one thing, even if it does sound a bit of a cliché, it’s following the careers of people I’ve hired along the way as they’ve developed. How does a relatively small player like Synergy attract and retain customers? There is so much talk of consolidation being the only way the

market can go and that smaller companies have to disappear; however, the cynic in me can’t help noticing the link between “consolidation” and “retirement”. We firmly believe that focused, bespoke aircraft management is what the owners of business jets are really looking for. Our aim is to get the fleet to around 15 largercabin aircraft over the next two years and provide a focused service which is director-managed and led, so that owners have direct access to. It’s not revolutionary, but it is taking the industry back to a time when aircraft management was about the aircraft owner and not a numbers game. Tell us about your typical week At the moment I’m spending most of my time on business development and growing our cli-

ent base, and that involves a significant amount of time in London and travelling around Europe. Aside from that, we’re spending a lot of time on procedures and policies to shape the business for further growth and also ensuring we have a pipeline of talent ready to go. What do you like most about your job? At the heart of it, like most people in aviation, we’re all a little “geeky” and so the fact that I get to combine my interests and my working life is obviously pretty special. I’m also back working with some great friends which makes life far more entertaining. What challenges do you face? The world is waiting to see what falls out from a Trump presidency and the Brexit negotiations. Both are causing uncertainty which impacts business aircraft use. Obviously the scaling back of deliveries by most of the major manufacturers is indicative of where new aircraft sales are currently sitting, but I think it’s important we focus on the positives and don’t forget there is still a huge market out there and business aircraft usage continues to steadily increase. n Looking for a job in aerospace? Check out our listings online at flightglobal.com/jobs

If you would like to feature in Working Week, or you know someone who does, email your pitch to kate.sarsfield@ flightglobal.com

Flight to the future: our forecast for long-haul air travel in the 2030s www.flightglobal.com/vision2035

airbus v3.indd 1

flightglobal.com

24/06/2016 15:12


Flight International - 31 January 2017 - 6 February 2017

Recommend Documents