SkyCourier Completes Initial Ground Engine Tests

Textron Aviation reached a major milestone in its Cessna SkyCourier development program with the successful completion of initial ground engine tests on its prototype airplane. The ground tests verified the functionality of the utility twin’s fuel system and two Pratt & Whitney PT6A-65SC engines, as well as the interface with the avionics and electrical systems.

“The successful engine run tests are a pivotal step toward proving the maturity of the aircraft and its systems as we prepare for first flight,” Textron Aviation senior v-p of programs and engineering Chris Hearne said today. “We continue to meet each important milestone in our development schedule, and we look forward to having an outstanding aircraft for our customers.”

Officials of the Wichita-based airframer said the development program continues to advance with the assembly of five additional flight and ground test aircraft. Wings were successfully mated to the prototype in December, followed by a powering of its electrical system in January and tail assembly attachment in February. To be offered in configurations as a 6,000-pound freighter, a 19-passenger transport, or as a combination passenger/freighter version, FedEx is the launch customer for the SkyCourier, with 50 firm orders for the airplane and options for 50 more. It will have a maximum cruise speed of 200 ktas and 900-nm range.

Flexjet Opting To Ferry Pilots Aboard Own Fleet

Flexjet is implementing a new policy in light of the Covid-19 outbreak to use its own fleet to ferry the fractional operator’s pilots and other flight crewmembers. Its crews have regularly flown aboard commercial airlines to reach their flight assignment destination, but “given the threat posed by the novel coronavirus…we felt it was in the best interests of our owners and flight crews to take this risk out of the equation,” said Flexjet chairman Kenn Ricci.

Flexjet added that the decision also enables it to comply with CDC-recommended group size limits of no more than 10 people. Named Project Lift, the Flexjet initiative applies to all U.S. domestic flights, as well as internationally bound flights that are still permitted. The operator has established a shuttle system involving seven strategically located hubs around the country to ferry its pilots and crewmembers. It also recently had MRO provider and sister company Constant Aviation treat the Flexjet fleet with MicroShield 360, a protective coating that kills 99.99 percent of pathogens.

“Decisions about safety can never be made based on their impact on the bottom line,” said Ricci. “There’s no doubt that this will have a cost impact on Flexjet, but it’s the right thing to do for our employees and it’s the right thing to do for our owners as we move ahead through this global crisis.”

CAE Issuing Temp Layoffs, Cutting Salaries

Preparing for what it believes could be an extended crisis from the Covid-19 outbreak, CAE is laying off workers, cutting salaries throughout the company, curbing hours, and restricting research and development, and other capital investment.

The company on Friday issued its initial notifications of temporary layoffs to 465 employees, but CAE president and CEO Marc Parent said today during a call with RBC Capital Markets that more will be evaluated and issued in the “coming days.” In addition, the senior leadership is taking a 50 percent pay cut, while vice presidents will see salaries reduced by 30 percent. Managers and directors will receive 20 percent cuts, while all others will see their salaries reduced by 10 percent. The company has more than 10,000 employees worldwide in over 35 countries.

In addition, the company said it has reduced capital expenditures to “minimum levels,” reduced operating hours and adjusted staffing at centers, and asked employees that can work from home to do so.

Parent stressed that CAE enters the crisis with strong liquidity, but said, “We’re assuming a very tough period ahead.” While he added “we definitely believe it will be temporary,” how long is uncertain. “This is significantly worse than anything we have seen.”

Its training centers are facing lower demand, with trainees facing difficulties in traveling to centers. Some centers are closed outright.

Universal Leverages Bizav Network for Masks, Test Kits

Universal Weather & Aviation undertook a big task last week to facilitate the delivery of one million face masks and a half-million Covid-19 test kits from China to the U.S. through the donation of Alibaba founder Jack Ma, Universal noted on a March 19 blog post. Leveraging its teams in China, Hong Kong, and Houston, Universal said it was able to navigate around the flight bans and restrictions that were literally expanding by the minute, including the U.S. ban on air traffic from China.

The March 16 effort included Universal’s logistics and regulatory experts, the latter of whom “were relentless, burning up the phones with our contacts at U.S. Customs and Border Protection (CBP) and Department of Homeland Security (DHS) to secure the required permissions.” It also had to determine where in the U.S. the Centers for Disease Control and Prevention (CDC) could take possession of the cargo that was transported by a Boeing 777.

It was air cargo carrier FedEx and its facility in Memphis, Tennessee, that stepped up to receive and handle the cargo. In all, Universal said the effort took nearly 100 phone calls and 72 hours of around-the-clock work to get all the flight permissions. “With literally minutes to spare, the final permissions came in, and the flight was able to successfully land,” Universal said.

NATA Steps Up For Covid-19 Help

With Congress weighing how best to establish an omnibus relief package for businesses affected by the Covid-19 crisis, the National Air Transportation Association (NATA) has increased its lobbying efforts on Capitol Hill, seeking sweeping assistance measures for its constituent aviation businesses.

Among the remedies it is suggesting is for its fuel supplier members to be able to convert the unsecured credit provided to their customers to federally guaranteed loans. That would also apply to FBOs that provide unsecured credit to airlines for aviation fuel and ancillary services.

The organization also is seeking the ability, over the next six months, for FBOs and aviation businesses, including MRO facilities, flights schools, and Part 135 operators, to be able to choose to have their lease obligations to the airport or their master leaseholder/landlord, covered by the federal government out of the Airport and Airway Trust Fund, which currently has a $17 billion surplus. According to the proposal, any businesses that engage in the rent-relief aspect would then be obligated to pay back the covered payments interest-free, over a period of 30 years.

Other requests include suspension of the fuel tax for GA operations through 2020.

GE Aviation To Cut 10 Percent of Workforce

GE Aviation will cut 10 percent of its U.S. workforce as a result of the Covid-19 pandemic’s effect on the aviation industry, its parent company announced today. In addition, the engine-maker will furlough approximately 50 percent of its MRO staff for 90 days.

“The rapid contraction of air travel has resulted in a significant reduction in demand as commercial airlines suspend routes and ground large percentages of their fleets,” said GE chairman and CEO H. Lawrence Culp Jr. “As a result, GE Aviation is announcing several steps that, while painful, preserve our ability to adapt as the environment continues to evolve.”

In addition to the job cuts and furloughs, GE Aviation has instituted a hiring freeze, a cancellation of salaried merit increases, a “dramatic” reduction in non-essential spending, and a significant decrease in its contingent workforce. GE Aviation president and CEO David Joyce also will forgo half of his salary.

“Our hardworking, determined employees are the heart of our business, and it is difficult to have to take these steps due to external factors like this,” Joyce said. “But we must respond immediately with every action within our control to protect our ability to serve our customers now and as the industry eventually recovers.”

The actions are expected to save the company $500 million to $1 billion this year, GE added.

Covid-19 Grounds Helitour Operators

The Covid-19 crisis has shut down helitour operations from New York to Hawaii, with some operators planning to remain closed into late April. In New York City, Liberty Helicopters said it is closed until April 1, when it has “every intention” of re-opening.

Meanwhile, the Chicago Helicopter Experience is shut down “temporarily” until further notice. Las Vegas operators including Maverick and Papillon have also suspended most tour operations, although Maverick said it would continue to operate tours from the Grand Canyon’s South Rim. Maverick said its operations in Las Vegas and Hawaii would be closed “through April 16.” In Hawaii, Blue Hawaiian Helicopters has canceled Maui tours until April 3.

Local officials in several of these jurisdictions have issued “shelter in place” orders banning travel for all but essential activities. In announcing its service suspension, Maverick said it was complying “with state mandates and to endure the safety of our guests and employees.” On Friday, Nevada Gov. Steve Sisolak ordered the closing of all “non-essential” businesses. Hawaii has effectively grounded air tours there by requiring visitors to the islands to quarantine for 15 days. 

IADA Notes March Surge in Bizav Aircraft Transactions

Despite the effects of the rapidly growing Covid-19 pandemic on business aviation, International Aircraft Dealers Association-accredited dealers have assisted in the purchase or sale of 54 business aircraft and have another 120 under contract in a 19-day period this month, the organization announced today. “Clearly there is a strong push to make deals in advance of the challenging uncertainties that are ahead of us all,” said IADA executive director Wayne Starling. “But IADA-accredited dealers continue to briskly lead the previously owned aircraft industry with many transactions during what was previously forecast to be a slow sales month.”

With growing flight restrictions and stay-at-home orders in the offing, the pace of transactions is highly likely to slow as approvals and regulatory obligations take longer to achieve, Starling added. But economic effects of the pandemic could lead to further changes in the market for buyers and sellers of preowned business aircraft, he noted.

Aircraft bought and sold with the assistance of IADA dealers during the period spanned all manner of business jet types, including a Cessna Citation CJ and a Gulfstream G650 on the business jet side and Pilatus PC-12s and Beechcraft King Airs in the turboprop segment.