While spending in the aircraft MRO sector will approach pre-Covid-19 levels in 2023, the industry faces obstacles in the coming years, according to Oliver Wyman’s latest annual MRO survey. Industry spending will reach nearly $80 billion next year, the survey notes, but growth could be stilted over the next decade by inflation, labor shortages, and sustainability.
Eighty percent of North American respondents said finding aviation maintenance technicians has become challenging while 65 percent of respondents in Europe and 79 percent in other geographies reported similar issues. Further, more than half indicated that lack of labor is already constraining growth.
Another major barrier to growth will be inflation driven in part by a 5 percent increase in materials costs anticipated by 60 percent of respondents. Fifty-nine percent of North American respondents also expect a similar or higher increase in labor costs. Finally, while 90 percent of respondents cited sustainability as a priority for MRO-related activities, it will become a required cost of doing business and not a differentiator. Sustainability is also affecting talent recruitment and retention since the new generation of workers are concerned about climate change.
Strategies to overcome these challenges could include having a clear outlook on future labor plans; finding creative ways to attract and retain talent; mitigating cost increases; increasing labor efficiency; and meeting customer and investor sustainability demands, the report concludes.
No fatal accidents involving business jets worldwide were recorded in the first three months of this year versus one fatality in a single crash in the same period last year. However, there were five nonfatal accidents involving U.S.-registered business jets versus three in the same three-month period a year ago, according to preliminary statistics gathered by AIN. Non-U.S. registered business jets had no mishaps coded as accidents in the first quarters of this or last year.
Of the five nonfatal bizjet accidents in the first quarter, two occurred under Part 91 and three under Part 135. In the same period last year, all four accidents (three nonfatal, one fatal) happened on Part 91 flights. There were no accidents involving charter flights in the first three months of 2021. Fractional jet operations continued their accident-free record.
However, fatalities from accidents of nonscheduled, non-cargo U.S.-registered business turboprops skyrocketed in the first quarter. Twelve people lost their lives in three crashes versus two people who perished in a single crash in the January through March timeframe in 2021. There also was one fatality in non-N-numbered business turboprops suffering accidents in the first quarter versus 17 fatalities from three accidents in the same quarter a year ago.
California-based sustainable fuel producer World Energy has received the necessary permits to renovate its Los Angeles-area refinery—the first in North America to produce sustainable aviation fuel (SAF) at a commercial scale starting in 2016. The $2 billion project will see the former Paramount oil refinery facility fully converted to sustainable fuel production and will give it a capacity of 340 million gallons a year, a 700 percent increase from its current rate. This development project is expected to be completed and at full capacity by 2025.
Speaking at a ribbon-cutting for the new project on Friday in honor of Earth Day, World Energy CEO Gene Gebolys explained the significance of the development with regard to decarbonization. “Airplanes are going to run on high-density liquid fuels for the foreseeable future, and what we need to do is get into that fuel tank with lower-carbon fuels. So our approach to making net-carbon-zero real is to take existing aircraft and make them fly in a much-less-carbon-intensive way.”
SAF is a renewable fuel derived from sustainable feedstocks and is currently approved for blending with conventional jet fuel at ratios of up to 50 percent. By 2050, the company estimates its sustainable fuels will displace more than 76 million tonnes of CO2, the equivalent of 3.8 million net-zero emission commercial flights from Los Angeles to New York.
During the past three months, Gogo Business Aviation has been on a tear with the development of its 5G program. Despite a global environment that has created supply-chain woes, the inflight Wi-Fi provider remains steadfast that it will launch 5G in the second half of this year and that the program remains on schedule and on budget.
FAA Deputy Administrator Bradley Mims stressed the need for collaboration and diversity as the aviation industry seeks to replenish and expand its workforce. Speaking during a Bombardier celebration in Wichita last week, Mims pointed to the announced plans from the Montreal-based company to make the site its U.S. headquarters for defense, flight testing, and MRO, saying the industry is “booming....There’s going to be a lot of job positions to fill.”
He cited the need for new pilots, air traffic controllers, airway safety specialists, aviation maintenance technicians, and safety inspectors, as well as for newer roles such as drone pilots, cybersecurity specialists, data analysts, and social media specialists. “Aerospace didn’t need all of these kinds of skills one or two decades ago, and certainly not six decades ago when Bill Lear came to Wichita,” Mims noted.
The FAA is working to help build a skilled and diverse workforce, he said, such as awarding aerospace workforce development education grants and reaching underserved and underrepresented communities through its adopt-a-school program. “When an organization has people with diverse backgrounds and perspectives, they can look at things from every angle, make better decisions, innovate at greater rates, and solve problems faster.”
There are many avenues to spark an interest, he maintained, adding that the aerospace community should work together to develop creative pathways to bring more people into the industry.
Hourly costs for fixed/capped rate charter jet cards have climbed 21 percent since the fourth quarter of 2020 and increases are expected to continue, according to Private Jet Card Comparisons. Rates jumped 5 percent since the end of 2021, added Private Jet Card Comparisons, which conducted an analysis of 250 jet card programs that offer fixed or capped hourly rates.
“Dozens of fixed/capped rate programs, which before Covid typically raised rates by $100 per year if at all, have increased prices multiple times since last summer,” said company founder Doug Gollan. “The average jet card charter price increased by $1,799 per hour since the end of 2020.”
These rates are lagging dynamic pricing, which reflects the current market, Gollan noted, which means more increases are likely. “It’s a perfect storm of record demand, supply constraints, and rising costs, including pilot salaries, general payroll, fuel, incentives to aircraft owners, maintenance, and parts.”
The company found that an average one-way hourly jet card charter rate has increased to $10,204 per hour, compared with $8,405 at the end of 2020. Average trip price for a fixed/capped rate jet card was $25,744. However, on-demand charter costs that are based on dynamic pricing ranged between $24,894 and $41,654 per flight.
NASA’s electric experimental aircraft, the X-57 “Maxwell,” is nearing the end of ground tests and being prepared for the installation of batteries, the agency said late last week. Slated to fly by year-end, the X-57 is a modified Tecnam P2006T that replaces its two Rotax gasoline-powered engines with 14 leading-edge-mounted electric motors.
According to NASA, the project is a research platform to build confidence in cleaner and more energy-efficient aircraft. Under the project, the agency will test and determine the airworthiness of electrified aircraft technologies, including battery technology, electric motor capabilities, and distributed electric propulsion.
“The X-57 project has made substantial contributions to the field of electric aircraft propulsion as an initial pathfinder building a knowledge base of expertise that is influencing industry standards and contributing to future electric vehicle demonstrations,” said Heather Maliska, the X-57 project manager at NASA’s Armstrong Flight Research Center in Edwards, California.
Lessons learned from the X-57 project are already being shared with industry and academia to develop pathways for future electric aircraft, NASA said.
Colorado’s Aspen Pitkin County Airport will close next month for its annual maintenance period. According to airport manager Dan Bartholomew, this year’s work—which begins on Monday, May 2 and lasts through Monday, May 16—involves targeted patching to 8,000-foot Runway 15/33 with milling and overlaying of asphalt. The project will also involve strengthening modifications to the airport’s commercial aircraft parking area to prepare for the eventual operations of the Embraer E175 there.
Bartholomew told AIN the repair work is estimated to cost $4.6 million and will be primarily funded using an FAA Airport Improvement Program entitlement grant. During the maintenance period, both the runway and all taxiway connectors will be closed and aircraft operations will be limited to helicopter emergency medevac and mountain rescue operations, which must be coordinated through a prior permission required protocol.
According to NBAA’s Air Traffic Services desk, nearby Rifle Garfield County and Eagle County Regional airports could see traffic increases during the closure. While there are currently no slot/reservation requirements for either of these two airfields, that could change in the face of increasing demand, it added.
Aviation Safety Question of the Week
Provided by
What is the primary control to recover an aircraft from an approach-to-stall or stall condition?
A. Use the elevator to reduce angle of attack.
B. Use the elevator and ailerons to keep wings level.
C. Use the thrust/power lever(s) to minimize altitude loss.
Air charter broker Instajet Club has expanded its business from Europe to the U.S., offering its Instajet Route Card with 10 new city-pair routes, including New York to Miami and Teterboro, New Jersey, and Westchester, New York, to Van Nuys, California.
“We have had great success in Europe with our Route Card and we’re thrilled to roll out our membership-based service in the U.S.,” said Instajet founder and CEO Nick Davis. “We have brought together a group of full-time operators to service a daily set of fixed routes. This means that we can offer customers the most competitive prices possible, often up to 30 percent cheaper than they can find anywhere else.”
Subscription prices start at $1,150 a month or $11,500 annually. Instajet’s price list is guaranteed with a subscription. According to Instajet, there are no blackout periods, no large fund deposits, and no limits on the number of flights taken at Route Card prices. Flights can be booked via Instajet’s app. Pricing on city-pair routes starts at $8,000 between New York and Miami; $25,000 between Teterboro or Westchester and Van Nuys; and $67,500 between New York and London.
Count on AIN for Full Coverage of EBACE
As ever, you can count on AIN for full coverage of EBACE 2022. Our team will publish three of our award-winning daily EBACE Convention News editions at the show on May 23, 24, and 25. We will also have comprehensive real-time reporting of all the top news at AINonline.com and in our daily e-newsletters. If you are an exhibiting company that wants to share news or propose pre-show interviews and briefings, please contact show editor Chad Trautvetter.
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