AIN Alerts
March 19, 2019
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Argus Sees Dip in Bizav Flight Activity in February

Business aviation activity slowed overall by 1.4 percent in the U.S., Canada, and the Caribbean in February, with both Part 135 and 91 flights down, according to the latest Argus TraqPaq report. Calling the overall decline in February unexpected, Argus reported that fractional activity posted the only year-over-year increase during the month, up 5.5 percent. Part 91 activity decreased 1 percent, while Part 135 activity marked a 4.2 percent decline. February was the ninth consecutive month in which Part 135 activity was down.

By aircraft segment, midsize jets were involved in the only increase in activity during the month, up 3.5 percent. This was led by a 14.2 percent jump in fractional flights and 3 percent improvement in Part 91 flights. Light-jet flights logged the biggest decline, down 4.5 percent in February. Part 135 flights involving light jets had dropped 11 percent in February.

Turboprop flights were down 3.5 percent, as activity declined across Part 91, Part 135, and fractional flights. Large-jet activity declined just 1.5 percent and was up 4 percent in Part 135 flights. The large-jet decline in the month came primarily from fractional use, which was down 13.8 percent.

Despite the decline in February, Argus is projecting flight activity will level out in March, expecting a 0.2 percent increase from March 2018.

 
 
 
 

DOT IG Finalizing FAA Aircraft Registry Audit Report

The U.S. Department of Transportation Office of Inspector General’s (DOT IG) office is expected to release a draft audit report of the FAA civil aircraft registry this week to the aviation agency, according to DOT IG program director of aviation audits Marshall Jackson. Speaking yesterday at the NBAA Business Aircraft Finance, Registration, and Legal Conference, Jackson said the FAA will then have 30 days to review and comment on the report before the watchdog agency makes the document public next month.

Spawned by a series of Boston Globe stories about lack of aircraft owner transparency in the FAA registry, the audit seeks to assess the FAA’s modernization progress of the registry and policies for providing public access to records, he said. The DOT IG also coordinated this audit with the Government Accountability Office (GAO), which is also conducting its own review related to aircraft registration.

Jackson noted that the FAA reauthorization bill passed last year requires the agency to modernize its aircraft registry in three years. “It’s good that Congress pushed the FAA on this issue,” he said. “However, three years is a really aggressive timeline, and I’m not sure if the FAA will be able to meet that.”

The FAA issued a request for information in December to solicit interest and capabilities from interested vendors regarding its new digital aircraft registry, Jackson said.

 
 
 
 

Embraer To Name New Chief Executive

Embraer will name a new CEO on or before its Ordinary General Assembly on April 22, following the end of Paulo Cesar Silva’s two-year elected term, the Brazilian company announced Tuesday. The company added the board will recruit a new chief executive externally.

“Paulo Cesar idealized the partnership with Boeing and led the negotiation process of the transaction that will bring Embraer and Brazil to a much more competitive and prominent level in the global aviation industry,” said Embraer chairman Alexandre Silva.

CEO Silva joined Embraer from the financial market 22 years ago to structure the company's sales financing area. For six years he served as president and CEO of Commercial Aviation and in 2013 he launched the E2 program, the latest iteration of the E-Jet narrowbody line. Silva became president and CEO of the Embraer Group in 2016.

He has not only steered Embraer through the Boeing transaction but also the rollout of the Passion for Excellence program, a structural transformation project focused on reducing costs and increasing operational efficiency. He further oversaw the creation of EmbraerX, responsible for “disruptive” innovation and the development of future projects such as the eVTOL partnership with Uber.

Embraer invited Silva to serve as a senior advisor to the board.

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Signature Gets Boost from Increased U.S. Operations

Increased business and general aviation operations in the U.S. helped push up Signature Flight Support’s FBO revenue by 12.4 percent in 2018, contributing to the overall 24.4 percent jump in revenue for parent BBA Aviation. The parent organization also benefited from the additions of Epic and Firstmark, along with increased Ontic license acquisitions.

Signature’s FBO business brought in $1.76 billion in 2018, making up 75 percent of the $2.35 billion in revenue of BBA Aviation. The FBO chain benefited from a 9 percent improvement in U.S. business and general aviation movements in 2018, BBA noted, adding, “We continue to believe the U.S. B&GA market is a long-term structural growth market.” However, at the same time, BBA expressed concerned about a “short-term disconnect” currently ongoing that reflects a decline in business confidence and is reducing discretionary flying. 

Signature’s FBO profits were down 1.9 percent to $315.7 million on the year, which BBA attributed to previously announced investments in commercial technology to enhance customer service and support revenue optimization. 

Its TechnicAir MRO operation saw organic revenues decline 3.4 percent to $74.1 million with a 50.7 percent drop in profit to $3.7 million. BBA cited “the availability of skilled technicians,” along with lower repair activity on a key maintenance account to this decline. Meanwhile, Epic contributed $292.5 million in revenues and a $2.9 million operating profit during its first six months of ownership under the Signature umbrella.

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Blockchain Could Revolutionize Part Lifecycle Records

Blockchain—secure, tamper-resistant digital records—could revolutionize the way aircraft part histories are recorded and stored, Dan daCosta, the business development lead at air transport IT and telecommunication services firm SITA, said yesterday at the NBAA Business Aircraft Finance, Registration, and Legal Conference. “There are several issues involving the aircraft part lifecycle, including a large number of actors involved and difficulty in tracking and monitoring assets, not to mention the current process is paper-based,” he said.

Thus, blockchain has the potential to bring more visibility to the aircraft part supply chain, according to daCosta. In short, it would integrate data from manufacturers, distributors, maintainers, operators, and lessors/owners that currently resides in silos, moving it to a shared ledger where no transactions can be changed once recorded.

Benefits of blockchain for aircraft parts include standardized maintenance records for aircraft maintenance centers and operators, lower cost of verification for leasing companies, and lower-cost financing for aircraft due to a higher level of trust in the records, said daCosta.

Blockchain also has applications for aircraft transactions, with AIC announcing at the NBAA conference that it now has the aviation industry’s first aircraft transaction room secured by this emerging technology.

 
 
 
 

Viking Launches Avionics Upgrade for Its Fire Bombers

Canada-based Viking Air Limited has launched an avionics upgrade program for the Canadair CL-215T and CL-415 fleet of water bombers. Designed around the Collins Aerospace Pro Line Fusion avionics suite, it will provide modernization in communications, navigation, surveillance, and air traffic management, which will address current regulatory requirements and those in the future, according to Viking, which since 2016 has owned the type certificates for the aircraft.

The upgraded Pro Line flight deck includes flight director, flight management system coupled with SBAS-GP and LPV capability, terrain awareness warning system, ADS-B Out, synthetic vision, crew alerting system display indicators, and a multifunction keyboard panel with dual cursor controls. Available options include satcom, Latitude Technologies Ionode system, weather radar, and autopilot.

The upgrade will be available either as a complete modification, including supply and installation, or as a parts kit for installation by an approved maintenance repair organization.

“The Pro Line Fusion’s advanced technology will be the backbone for the evolution and support of these incredible aircraft for the next 25-plus years, and I am excited to see this integrated avionics suite equipping current CL fleets, as well as the new Viking CL-415EAF Enhanced Aerial Firefighter,” said Gregory Davis, the airframer’s v-p for customer service and product support. “This system will form the basis for any new production aircraft, allowing for seamless interoperability and maintainability between new and legacy aircraft.”

 
 

Bizav Supplier Lee Aero First To Earn New Accreditation

Aircraft supplier Lee Aerospace has earned the new Nadcap Aero Structure Assembly accreditation, becoming the first company to receive the credential that recognizes a standardized approach to quality assurance and limits redundant audits in the aerospace industry. “As an active member of Nadcap, when the opportunity to be the first company for accreditation in a pilot program presented itself, we jumped at the chance,” said Lee Aerospace director of quality Tommy Howland.

The accreditation audit, which was performed September 10-14 at Lee Aerospace, encompassed areas such as fastening, electrical bonding, bushing and bearing installation, and sealing of aerospace assemblies and components. The scope and criteria for the audit and accreditation were developed by a Nadcap task group that included representatives from companies such as Northrop Grumman, Spirit AeroSystems, Airbus, and BAE Systems.

Based in Wichita, Lee Aerospace is an FAA Part 145 repair station and operates from more than 150,000 sq ft of facilities, supplying windows, parts, and aerostructures to aircraft OEMs. Nadcap is a program that brings together technical experts from government and industry to improve quality assurance and reduce costs throughout the aerospace industry and is administered by the nonprofit Performance Review Institute. 

 
 

WAI 30th Conference Draws 4,500, $875k in Scholarships

Women in Aviation International wrapped up its 30th annual conference that ran from March 14-16 in Long Beach, California, with an attendance of 4,500, 170 exhibiting organizations, and a total of $875,065 in scholarships awarded.

The conference drew attendees from 33 countries and exhibitors represented all aspects of the aviation community, including drones. The 156 scholarships presented to WAI members pushed the total scholarships awarded through the organization since 1995 to more than $12 million.

WAI president Peggy Chabrian held the initial event, which was hosted by Embry-Riddle Aeronautical University in Prescott, Arizona and drew 150 people.

“No one knew what to expect at that first conference, but after a weekend of networking, it was clear there was a need for an event where women in the aviation industry could interact,” Chabrian said. “Soon, the conference became an annual event, and in December 1994, Women in Aviation International was established.”

Also during the conference, WAI inducted its next slate for its International Pioneer Hall of Fame: Leanne Caret, executive v-p of The Boeing Company and president and CEO of Boeing Defense, Space, and Security; Mary Golda Ross, the first known Native American female engineer, the first female engineer to serve at Lockheed, and one of the 40 founding Skunk Works engineers; and the U.S. Coast Guard’s first women aviators and Aviation-Related Enlisted Women. 

 
 

AIN’s Tales from the Flight Deck Podcast: Into the Storm

What makes an otherwise safe pilot believe he or she can pick through the cells of a thunderstorm? In this episode, Wilson Khors and his copilot become so transfixed on making it through a tiny hole in a line of convective weather over San Juan, Puerto Rico, they simply disregard the option of turning around. They’re not alone. Even some of the most experienced pilots have done it. In part, they’re using weather depiction tactically rather than strategically. But is that really wise?

Listen to the podcast
 
People in Aviation
Dror Yahav is stepping into the role of CEO for Universal Avionics (UA), effective April 10. Yahav succeeds Paul DeHerrera, who is retiring after 25 years of service with UA.  Yahav joined UA parent Elbit Systems in 2001 and has served as v-p of commercial aviation in the Aerospace Division for the past eight years. 
Jose Costas joined Duncan Aviation’s Aircraft Sales and Acquisitions team with responsibility for the EMEA and Asia Pacific regions. Costas previously served with Embraer for nearly 19 years, including as regional v-p sales for Europe, Africa, and the Middle East for Embraer Executive Jets.
American Aero FTW appointed Angela Thurmond as general manager. Thurmond, who joined American Aero in June 2017, has led the customer service team and most recently was assistant general manager for the Meacham International Airport-based FBO.
Boston JetSearch promoted John Beveridge to president, while Drew Callen assumes the role of CEO. Beveridge has served with Boston JetSearch since 2007, most recently as senior v-p. Callen founded Boston JetSearch in 1983 and since then, the firm has completed more than 600 corporate-jet acquisitions.
William Skinner joined Heritage Capital Group as a principal, advising on merger and acquisition transactions as well as financial and strategic advisory with a focus in aerospace. Skinner has more than 33 years of financial management and leadership experience both in public accounting and the aerospace industry, most recently as v-p of financial planning and treasurer of Gulfstream Aerospace.
USAIG announced a number of promotions and other responsibility changes: Glenn Vallach was named senior v-p and General Aviation Claims Division manager; Katie Callahan was promoted to claims manager in the Airline Claims Department; v-p Timothy Goldrick was appointed accounting manager; Andrew Whitaker, who is in the Eastern branch office, became senior underwriter; Beatriz Palanza is now claims services supervisor in the General Aviation Claims Department; and, Phyllis Abshire, who is in the Dallas branch office, was promoted to senior underwriting assistant.
AINalerts News Tips/Feedback: News tips may be sent anonymously, but feedback must include name and contact info (we will withhold name on request). We reserve the right to edit correspondence for length, clarity and grammar. Send feedback or news tips to AINalerts editor Chad Trautvetter.
 
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