Vref: T-props, Phenom 300E Set To Hold Highest Values

Turboprop singles such as the Pilatus PC-12 and Cessna Caravan “have remained at an industry-low depreciation rate,” according to Vref’s second annual 15-Year Residual Forecast for in-production aircraft. Both of these aircraft are expected to retain 70 percent of their value in 2034, the report says.

Most business jets are forecast to retain between 40 percent to about 50 percent of their value in 15 years, Vref said, but the Embraer Phenom 300E once again outperforms in this category, with 68 percent of its value expected in 2034.

“The data reinforces the latest opinions of Vref management that the market is balanced and showing little if any signs of slowing regardless of the continued tariffs with China and looming impeachment proceedings ahead of the 2020 election,” said Vref CEO Ken Dufour. “We are still cautiously optimistic about the new deliveries forecasted through 2020 and see no indicators as of yet that the manufacturers will miss their target numbers.”

In addition, he said, “We are seeing many aircraft owners of aging aircraft contemplating parting out versus a further investment of cash to meet 2020 compliance. This segment of the market has been weighing down averages for years and it will be good for the overall fleet values to see many of them leave the airspace for good.”

Collins GPS Receivers Suffer Reception Outage

According to a notice from NBAA Traffic Services sent yesterday, “Numerous calls and emails have come in to the desk this morning in reference to GPS signal disruption.” The disruption appears to affect only certain Collins Aerospace (formerly Rockwell Collins) GPS receivers, and Collins Aerospace confirmed to AIN, “We identified a technical issue with our recently released GPS product(s) impacting availability, and have since determined the root cause and the resolution. We are engaging with our customers to ensure continued safe operational capability.”

According to Collins Aerospace, the affected GPS receivers are GPS-4000S part number 822-2189-100 and GLU-2100 part number 822-2532-100. 

The NBAA notice pointed out that the FAA had issued a blanket exemption to allow the affected aircraft to be flown below FL280 and if unable to fly RNAV routes, to use “traditional airways and/or navaids.” The exemption, however, was valid only through today at 0400 UTC.

According to OpsGroup, members have reported that affected aircraft include the following: Bombardier CRJs and Challenger 300/350, Boeing 737-900, Hawker 750 and 850XP, Cessna Citation CJ3, Gulfstream G200 and G280, Airbus A320, and Boeing MD11.

Sudden Cuba Restrictions Leaving Operators in a Bind

The U.S.’s decision to immediately ban Part 91 flights to Cuba has left “scores of people in a bind,” according to Eric Norber, founder of Cuba Handling, which specializes in facilitating private aircraft travel to and itineraries in Cuba.

New regulations were released last week and took effect on June 5 that effectively banned both privately operated N-numbered aircraft and U.S. cruise ships from traveling to Cuba. There was no grandfathering provision for pre-arranged private or cruise ship travel. Meanwhile, the Trump Administration also eliminated the people-to-people category for travel to Cuba. However, the U.S. government did grandfather pre-arranged travel for people-to-people purposes.

“The way the changes were drafted and worded, it seemed to be poorly coordinated across the different types of travel to Cuba,” said Norber. Many people who booked cruises under people-to-people are grandfathered under their reason for the travel, but are not able to get there because the cruises were prohibited. “It’s paradoxical,” he said. 

Meanwhile, Norber's company had numerous clients who have had trips planned to Cuba. “They’ve been planning well ahead. In some cases, they have paid ahead for the permits, the handling, and the facilitation of the flight. In the course of 24 hours, their trip was no longer permitted.”

While private aircraft are essentially banned, charter and scheduled airlines continue to be permitted, as do air ambulance operations. 

Raytheon and United Technologies Announce Merger Plan

Raytheon and United Technologies Corp. (UTC) yesterday announced an all-stock “merger of equals” that will create an industrial defense/aerospace giant. To be known as Raytheon Technologies, the new entity will bring together Raytheon’s portfolio with those of UTC subsidiaries Pratt & Whitney and Collins Aerospace (itself a 2018 acquisition and subsequent merger of Rockwell Collins and UTC Aerospace Systems).

Upon completion of the Raytheon/UTC merger, the company will become the world’s second-largest defense/aerospace company after Boeing, and the second largest U.S. defense contractor behind Lockheed Martin. Revenue will be divided roughly equally between defense and commercial sectors.

Completion of the deal is expected by mid- 2020, following the partition of UTC into three separate companies. UTC’s Otis elevator business and Carrier subsidiary (environmental control and building systems) are being spun off and will not form part of Raytheon Technologies. With Raytheon currently headquartered in Waltham, Massachusetts, and UTC in Farmington, Connecticut, Raytheon Technologies is due to be located within the greater Boston metro area.

UTC shareholders will own approximately 57 percent of the new company, with Raytheon shareholders taking 43 percent. The combined company value is $166 billion and, based on 2019 sales, the new company will generate $74 billion in annual revenue. The company’s first CEO will be Greg Hayes, UTC chairman and CEO, with Raytheon’s CEO, Thomas Kennedy, becoming chairman.

AsBAA Concludes Singapore Safety Day, Plans More Events

The Asian Business Aviation Association (AsBAA) yesterday concluded its third “Safety Day,” this time in Singapore with a focus on ground handling and human factors issues. “Human factors is one of the topical subjects at the moment," said Gary Moran, AsBAA vice chairman and Southeast Asia chapter lead.

"Although there is some discussion about if there is a pilot shortage in the industry, we think that there is indeed a shortage of experience,” he added. “Cost savings is important against the backdrop of economic slowdown, but we should strive to still maintain the best standards while saving costs.”

Kurt Edwards, director general of IBAC, made his first appearance at the Singapore safety day, promoting the IS-BAH/IS-BAO standards to the local industry.

Following the inaugural China Safety Day in Beijing in April, AsBAA plans to roll out similar programs in the region and will organize the first such event in Hong Kong in September, said Moran. A similar event in Thailand is in the works.

“There is a real demand and willingness by the industry to participate in these safety days,” Moran said. “The industry is very supportive as well, with support coming from Bombardier in Singapore and Embraer in the Philippines,” he added, revealing that TAG Aviation will host the Hong Kong event.

NTSB Schedules Roundtable on Alaska Part 135 Ops

The NTSB will host a roundtable at the University of Alaska in Anchorage on September 6 to discuss Alaska-based Part 135 operations. Safety Board chairman Robert Sumwalt will lead a discussion among local Part 135 operators, safety experts, associations, and the FAA about ways to improve the safety of Part 135 aircraft flight operations.

“Since 2008, we have investigated 182 accidents involving fixed-wing scheduled/non-scheduled Part 135 operations in Alaska, resulting in 74 fatalities,” the NTSB said. “Unique terrain, challenging weather, and congested airspace are factors, but available solutions exist for mitigating Part 135 risks. Identifying them and putting them to work to save lives is the goal of this roundtable.”

The latest fatal Part 135 accident involved a midair collision on May 13 near Ketchikan by two different operators that killed six people. Just seven days later, one of the same operators involved in the May 13 accident had another Part 135 fatal crash that killed two.

“Many of these accidents could have been avoided if operators had implemented safety management systems, installed flight data monitoring devices, and ensured pilots received comprehensive CFIT avoidance training—all the subject of recommendations we have issued in the last few decades,” the Safety Board said. “If the FAA and industry do not address these safety gaps, we will undoubtedly see more accidents involving the traveling public in Alaska.”

Air Canada Cargo Entering the Drone Delivery Market

Regularly scheduled commercial drone delivery just nudged closer to reality in Canada, with Air Canada Cargo now planning to market and sell Drone Delivery Canada Corp. (DDC) drone delivery services. Subject to regulatory approval, DDC will build and operate up to 150,000 drone delivery routes in Canada that include timetables, flight schedules, payload capacities, type of drones to be deployed, and payment terms.

“This agreement greatly accelerates our commercial rollout in Canada,” said DCC CEO Tony Di Benedetto. He added that DDC plans to pursue markets in the U.S. and Europe following the establishment of Canadian service. 

“We believe drone technology has the potential to offer the cargo community cost-effective solutions to complex issues related to supply-chain distribution in non-traditional markets, including remote communities in Canada. It is another way Air Canada Cargo is innovating and engaging with new technologies, such as artificial intelligence and digital technologies, which are transforming the cargo landscape,” said Tim Strauss, v-p of cargo at Air Canada. 

Toronto-based DDC focuses on the design, development, and implementation of a proprietary logistics software platform using drones. The company’s platform will be used as software as a service for government and corporate organizations.

Honeywell’s Nex-gen Radar Selected By UAM Manufacturer

Honeywell Aerospace will supply multiple units of its new IntuVue RDR-84K Band Radar System to an unidentified air-taxi developer, the Phoenix-based company announced today. IntuVue RDR-84K is a next-generation radar system that Honeywell said is a step toward automating the takeoff and landing of urban air mobility (UAM) aircraft.

“The RDR-84K is one of the many solutions we offer UAM companies,” said Honeywell Electronic Solutions president Carl Esposito. “We’re continuously developing new technology to meet the future demands and needs of all developers so they can create concept UAM aircraft that disrupt transportation and change the way people commute.”

Using an electronically steered phased-array radar, RDR-84K has no moving parts and is software based. That means it reduces the number of sensors, hardware requirements and installations, maintenance, size, weight, and power needs—and lowers the cost of installation and ownership. Multiple beams simultaneously scan and detect different inputs such as other aircraft, terrain and runways at the same time, which Honeywell said will revolutionize vehicle autonomy.

It is currently under testing and preproduction. Honeywell didn’t disclose the value of the deal with the unnamed UAM manufacturer.

Correction

In Thursday's issue, we incorrectly identified the regional sales director for KCAC Aviation's new Pilatus sales office at DuPage Airport. Keith Plumb, the former president, CEO, and co-founder of fractional and managed operator Executive AirShare, is assuming this role. We apologize for the error.

AIN’s Tales from the Flight Deck: Otto’s Pilots

A call for help from Washington, D.C., to Phoenix Air, based at a tiny airport in Cartersville, Georgia: Can you fly a medivac mission right away? The destination: North Korea. This is the first of a two-part episode on the extraordinary mission to rescue Otto Warmbier from North Korea.