eVTOL Startup EHang Prepares for Nasdaq Share Offering
Electric vertical takeoff and landing (eVTOL) aircraft manufacturer EHang yesterday filed papers with the U.S. Securities and Exchange Commission (SEC) to prepare the way for an anticipated $100 million initial public offering (IPO) on Nasdaq. The China-based group made an SEC F1 filing for the Cayman Islands-registered EHang Holdings Limited, giving notice of its intention to offer Class A ordinary shares from an as-yet unspecified date before the end of 2019 and secure a Nasdaq listing under the symbol EH. The IPO would make EHang the first of numerous privately-owned eVTOL startups to go public.
One factor that sets it apart from other companies vying to get ahead in a crowded sector that reportedly includes up to 200 new aircraft developments is that EHang has already started to make deliveries of its two-seat 216 Autonomous Aerial Vehicles (AAVs). According to the F1 filing, it has delivered 38 AAVs since March 2018 to various partners and prospective distributors, including freight group DHL-Sinotrans. It reported “unfulfilled orders” for 28 aircraft.
During the first six months of 2019, EHang reported a net loss of $5.5 million, which was 42 percent higher than the loss it incurred in the same period for 2018. Revenues for the first six months of 2019 were also down by 15.6 percent at $4.7 million.
It seems to be that more and more in the past six months or so, business is getting more difficult for preowned business aircraft sales professionals to gain traction. This phenomenon I am about to describe typically takes place when discussing a deal with a broker or consultant outside of the U.S.
The discussion goes as follows: after many conversations, sharing specifications or technical data about the aircraft and having candid and transparent discussions about price, the other side’s representative will finally say, “Oh by the way, we will need to be paid.” They go on to say that their side is not going to pay them a fee and need our side to pay them.
To allow the conversations to progress to this level and then throw in a compensation discussion leaves everyone on our side feeling that they have not been working in good faith. To complete the rest of the story, when our side asks the broker or consultant if we can disclose this payment, they more often than not say it cannot. This borders on commercial bribery if the person to be paid is employed directly by the aircraft buyer or seller.
We as an industry must weed out these violations of high ethical behavior and transparency.
Florida-based seaplane operator Tropic Ocean Airways has established a base in San Juan, Puerto Rico. Using its fleet of 13 float-equipped Cessna Grand Caravans, the company will offer on-demand charter, sightseeing flights, and day trips, as well as scheduled service.
Tropic Ocean will provide domestic flights to all Puerto Rico airports and safe water landing areas, including Vieques and Culebra Islands as well as other nearby international destinations such as the U.S. and British Virgin Islands, Antigua, St. Maarten, St. Kitts, Nevis, and Anguilla. The eight-seat turboprop singles can depart from the Jet Aviation FBO at Luiz Muñoz Marin International Airport, the Bahia Urbana dock in Old San Juan’s harbor, or any other suitable location depending on the needs of the customer.
“Modern amphibious seaplane service has been proven to improve connectivity in hard-to-reach areas with less environmental impact,” said company founder and president Rob Ceravolo. “Our entire team of 100 aviation professionals is committed to our investment in the Puerto Rico tourism and aviation industries, and we are very grateful for the opportunity to bring our luxury service to the island.”
On-demand Charter Firm Wins NBAA Pitch Contest
A Brazilian on-demand private aviation company was deemed the winner in a business plan pitch competition held last week in Las Vegas at NBAA-BACE 2019. Flapper, which offers pay-per-seat flights in the southeast of Brazil as well as on-demand charters with real-time pricing, was judged to have the best opportunity to generate the largest returns from investors among five companies participating in the competition.
Judges for the competition were Brain Flynn of DiamondStream Partners; Jim Lockheed of JetBlue Technology Ventures; Mike Nichols of NBAA; and Alasdair Whyte of Corporate Jet Investor. “Brazil and Mexico are the world’s number two and three business aviation markets, respectively,” said Flapper CEO Paul Malicki. “With the help of technology and efficient distribution, we can effectively integrate them with the global business aviation landscape. Receiving such positive feedback on the most important event in our sector is definitely very motivating.”
Other companies participating in the pitch competition were CFC AirCar, MetroHop, YonderWest Aero, and MRO Insider, the latter of which was judged as the audience favorite.
Boeing CEO Pleads Initial Ignorance of MCAS Emails
Boeing CEO Dennis Muilenburg testified to Congress on Tuesday that he did not become aware until recent weeks of the details in instant messages and emails exchanged between two company employees suggesting the chief technical pilot encountered serious problems with the maneuvering characteristics augmentation system (MCAS) in the 737 Max during simulator sessions. Despite accepting “ownership” and accountability for the series of events leading to the pair of crashes that claimed the lives of 346 people, Muilenburg absorbed criticism from several lawmakers on the Senate Committee on Commerce, Science, and Transportation who questioned why he did not know of the substance of the communications until several months after they appeared in documents filed with the Justice Department.
In the instant messages, the chief technical pilot in question, Mark Forkner, described a scenario in which he witnessed the MCAS “running rampant” during a November 2016 simulator session, some four months before the Max received FAA certification. Subsequently, an email from Forkner calls for removing any mention of the MCAS from the flight crew operating manual.
Muilenburg’s testimony that he did not know the details of the communications did not go uncensured by those on the committee. Sen. Ted Cruz (R-Texas) called Muilenburg’s testimony “quite dismaying” and the exchange between Forkner and technical pilot Patrik Gustavsson “stunning.”
Quiet Technology Aerospace (QTA) has received an STC for a solution to engine inlet cowl inner barrel corrosion on Embraer Legacy 450/500 and Praetor 500/600 business jets. The STC covers replacing the aluminum inner barrel on Honeywell HTF7500 engine inlets with a lighter-weight carbon-graphite composite barrel that the Hollywood, Florida-based company said terminates the root cause of the “plaguing” corrosion issue.
A lifetime warranty on the composite barrel will remain with the aircraft’s serial number and transfer to any future owner, QTA said. This is the seventh STC QTA has received for a solution to inner barrel corrosion found on Learjet 60, Gulfstream G200 and G280, Hawker 1000, Falcon 2000LX/EX, and Challenger 300/350 series airframes.
“With our seventh STC approval finalized for the Embraer EMB 545/550 series aircraft, QTA now has a permanent and terminating corrosion fix for more than 2,100 aircraft around the world,” said QTA chief executive Barry Fine. “That represents a large amount of time and money saved to operators that have been continuously troubled by expensive and time-consuming inner barrel corrosion on their original OEM inlet cowls, not to mention the already documented danger of engines ingesting corroded aluminum while operating."
NOAA Taps Turtles Fly Too for Bicoastal Flights
Turtles Fly Too, a volunteer-led charity that arranges transportation for cold-stunned turtles, has strengthened its partnership with the National Oceanic and Atmospheric Administration (NOAA) and will provide flights on both the East and West Coasts of the U.S.
“It’s a major endorsement,” said Turtles Fly Too founder and president Leslie Weinstein, who also owns Boise, Idaho-based aviation manufacturing firm True-Lock. With the expansion, the charitable organization needs more pilots, aircraft that can carry a turtle-size crate, and volunteers to help with logistics. “They don’t have to be pilots,” he said. “We need volunteers, people who have passion.”
The new agreement will see Turtles Fly Too arranging transportation of turtles and appropriately sized sea mammals on both coasts, from Alaska to Mexico and Canada to the Caribbean. Turtles Fly Too will also fly teams to help with whale rescues, according to Weinstein, and these flights will originate in Monterey, California.
Aircraft for the turtle missions must be large enough to accommodate a crate measuring up to four feet by four feet. This usually means at least a Pilatus PC-12 or Cessna 208 Caravan, he said, “anything with a four-foot door.”
After Hurricane Dorian destroyed Abaco Island and Grand Bahama in early September, Turtles Fly Too also flew 43 missions carrying medical supplies and personnel to the islands and flying patients to the U.S.
Collins Steps Toward Automation with ‘Smart Line’
In its effort to expand its digital and automated manufacturing capabilities, Collins Aerospace has opened a new 27,000-sq-ft facility in Puerto Rico that houses a “smart line.” The facility, which automates printed circuit board assemblies for commercial aircraft engines, marks the company’s first major investment in automated manufacturing since becoming Collins Aerospace, it said.
Its fully automated smart line incorporates modern equipment, processes, and practices designed to improve the flow and facility of the manufacturing operations. This includes digital optical inspection and automated confirmations of manufacturing systems. Collins estimates that the new approach will increase productivity by 35 percent, supporting customer deliveries. The new facility is expected to add 150 jobs, increasing its workforce in Puerto Rico to more than 1,500.
Importantly for Collins, the smart-line addition represents an effort to accelerate digital technology across its operations. Teams throughout the company are collaborating on initiatives to connect sourcing and manufacturing, from materials planning, quality, and predictive maintenance, to inventory managing, it added.
The company has more than 120 smart projects running and has a goal of 10 percent automation across its global manufacturing sites by 2024.
Tomorrow’s Aviation Challenges
AIN is developing a 14-part series of articles and infographics that speak to “Tomorrow’s Aviation Challenges.” Drawing on the knowledge base of experts at Honeywell Aerospace, AIN will explore a variety of topics over the coming weeks, including safety in the world of autonomous flight, harnessing the power of big data, beyond the 2020 ADS-B mandate, and reducing pilot fatigue to increase productivity and safety.
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Most Exciting Aircraft from the NBAA-BACE Static Display
NBAA-BACE 2019 was full of exciting aircraft at the static display. We take a look at some of the stars of the show.
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