Jefferies: Some SAFs Are Greener than Others
A report from investment analyst Jefferies shows that not all sustainable aviation fuels (SAF) are the same in terms of environmental benefits, which can vary significantly depending on which of 11 approved pathways is used to produce them.
Jefferies based its findings on a discussion it hosted with International Air Transport Association (IATA) SAF specialist Daniel Bloch on policy approaches for increasing SAF production and availability. With a wide variety of feedstocks available, some production pathways—and the feedstocks they use—offer significantly better CO2 reduction in their life cycles, he noted.
For example, using new vegetable oil (as opposed to used cooking oil) as a feedstock for the HEFA process provides only up to a 20 percent savings in life cycle carbon emissions compared to Fischer-Tropsch-derived SAF from CO2 and hydrogen using renewable energy, which could bring that number to near 100 percent savings.
Most existing SAF production refineries are using the HEFA process. The report pointed out that while new projects using alcohol-to-jet and Fischer-Tropsch pathways have higher initial capital costs, their operational costs are lower. As a result, production facilities based on those technologies will take longer to achieve scale production. However, according to IATA, these are key to generating increasing volumes of SAF because their third-generation feedstocks are less constrained.
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Gogo Business Aviation Releases Over-air Avance Updates
Airborne connectivity provider Gogo Business Aviation has improved its Avance platform with the introduction of over-the-air (OTA) software updates. According to the company, this allows new and existing customers to remotely update their Avance system software through the Gogo Dash app, a toolkit exclusive to Avance users.
The key innovation here is the elimination of the need for physical access to the aircraft for software updates. With OTA, updates can be deployed without manual intervention, streamlining the process and significantly reducing the time required for upgrades. This is especially beneficial for managing large fleets.
“This industry-first capability for connectivity systems demonstrates our deep understanding of business aviation and the maintenance required of aviation-grade technology,” said Gogo president and COO Sergio Aguirre.
Customers can use OTA updates via a Cloudport connection through Gogo's secure digital content delivery network, Gogo Cloud, or via terrestrial modem. After Dec. 31, 2024, Gogo Cloud will be the exclusive OTA update method for all Avance customers. The OTA update process is consistent whether using Gogo Cloud or terrestrial modem.
As of late September, 7,150 business aircraft have been equipped with a Gogo air-to-ground broadband system, including 3,784 with an Avance L5 or L3 system. This compares to 4,395 business aircraft outfitted with satellite connectivity systems.
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Abu Dhabi Investors Acquire Charter Platform Fly Victor
Abu Dhabi’s Aviation Investment Group has became the owner of on-demand private aircraft charter platform Fly Victor. The deal announced on Thursday involved Gulf-based investors acquiring all outstanding shares in the company from founder and chairman Clive Jackson.
According to London-based Fly Victor, its new backers intend to fund expansion into new markets. It has yet to announce details of the growth plans, but indicated that these will involve upgrading the flight booking platform’s customer service and the recruitment of specialist staff “with deep knowledge of the markets that the brand will move into.”
Aviation Investment Group will be represented on the Fly Victor board, along with co-CEOs Toby Edwards and James Farley, and finance director Stuart Manning. This leadership team was involved in a management buyout in March 2020 from previous owners Alyssum Group.
“The acquisition will provide the financial and strategic backing to make our vision a reality,” said Edwards. “This includes Victor continuing to take a leadership role in making aviation more sustainable, and adopting the most credible carbon emission reduction solutions such as sustainable aviation fuel.”
Jackson indicated that he intends to work with the UK and European Union governments to introduce a new reporting framework for aviation emissions. Under his leadership, Fly Victor was one of the first private flight providers to offer carbon offsets.
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Rolls-Royce To Exit Electrical Propulsion Business
Rolls-Royce is open to offers from prospective buyers for its Electrical division, which is focused on activities such as developing electric propulsion systems for eVTOLs, including Vertical Aerospace’s VX4. The UK-based aircraft engine maker revealed the move today as part of a wider restructuring plan that could include other divestitures across the group expected to raise up to £1.5 billion ($1.9 billion) over the next five years.
Announcing details of a long-anticipated corporate reboot, Rolls-Royce CEO Tufan Erginbilgiç said the company is “looking at options to exit [the Electrical business] in the short-term or alternatively, for the right value, reduce our position to minority with an intention to exit fully in the mid-term.”
Erginbilgiç made it clear that the business aviation sector will remain a core activity. He said Rolls-Royce’s position as turbofan supplier to Gulfstream and Dassault Falcon is proving to be a driver of annual revenue growth expected to average between 3 and 5 percent, compared with between 5 and 7 percent in the commercial airliner market. “By providing the power for three out of four of the fastest, long-range [business] jets, we expect our global fleet to increase to more than 9,000 engines,” he said.
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AOPA: General Aviation Accident Rate Declines in 2021
U.S. general aviation accident rates decreased in 2021 compared with 2020, according to the recently released 33rd edition of the AOPA Air Safety Institute Accident Report, which was retitled the Richard G. McSpadden Report. The association said the document was renamed in “honor and memory of our beloved friend and colleague” who, along with another pilot, lost his life in an airplane accident on October 1 in Lake Placid, New York.
The report notes an increase in accidents from 1,050 in 2020 to 1,124 in 2021, the most recent year complete and final statistics are available. However, four million additional flight hours—compared with the previous year—tempered the higher accident total. “Overall accident rates decreased from 4.69 to per 100,000 flight hours to 4.28 and the fatal accident rate decreased from 0.84 to 0.77 from 2020 to 2021, respectively.” Non-commercial airplane accident rates fell slightly, with the fatal accident rate declining to 0.86 and the accident rate decreasing to 4.87.
“An area where we see some discouragement is the non-commercial helicopter accident rate, which rose following two years of decline,” said Robert Geske, AOPA Air Safety Institute manager of aviation safety analysis. “We are also disappointed to see the lethality rate for weather accidents remain steady at an average of eight per year despite continual efforts to address this area.”
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TJC Agrees To Buy L3Harris Commercial Aviation Solutions
An affiliate of private equity firm TJC has agreed to purchase the L3Harris Commercial Aviation Solutions (CAS) business for $800 million, including $700 million cash and $100 million based on certain 2023 and 2024 performance targets. TJC expects the acquisition to close in the first half of 2024, “subject to customary closing conditions and regulatory approvals.”
L3Harris CAS employs about 1,450 people and provides flight training, flight data analytics, avionics, and advanced air mobility products. An L3Harris surveillance joint venture is included in the CAS transaction, although it is subject to a right of first refusal, according to L3Harris. “If exercised, an affiliate of TJC L.P. will acquire the rest of CAS.” An L3Harris spokeswoman would not confirm whether the joint venture is Aviation Communication & Surveillance Systems, which is 70 percent owned by L3Harris Technologies and 30 percent by Thales.
“Today’s announcement is consistent with our multi-year strategy to optimize our national security, technology-focused portfolio,” said L3Harris chair and CEO Christopher Kubasik. “Aligned with our capital allocation priorities, we plan to use the proceeds from this transaction to repay debt, which will accelerate our timeline to reach our debt leverage objective.”
Founded in 1982, TJC owns a diverse set of companies, with original capital commitments of more than $22 billion. Its aerospace-related holdings include ACR Group, a manufacturer of satellite communications, navigation, and rescue technology products.
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Leonardo Logs Helicopter Orders at European Rotors
Brazilian operator Omni Helicopters International (OHI) is growing its fleet with an order for a pair of Leonardo AW189 helicopters and one AW189K. The deal announced today was one of several announced by the Italian aircraft manufacturer at European Rotors this week in Madrid, with OHI adding to the eight AW139s and two AW189s it has received since 2021.
The AW189K is powered by a pair of Safran’s latest Aneto-1K turboshaft engines and will be the first of its type to operate in Latin America. The standard AW189 super medium aircraft uses General Electric’s CT7-2E1 engines.
In other new business, helicopter lessor Milestone Aviation has signed lease agreements for three Leonardo AW169 medium twins with Danish and UK helicopter operator Uni-Fly. The deal covers lease extensions for two of the helicopters and the placement of an additional AW169 later this year. The aircraft will be based at Uni-Fly’s facility at the Humberside, UK airport and will support offshore energy missions in the North Sea. Uni-Fly specializes in offshore wind farm helicopter hoist operations.
Separately, Léman Aviation has signed a preliminary contract for 10 Leonardo AW09 turbine single-engine helicopters, an addition that will bring total orders for the aircraft to 80. Headquartered in Switzerland and France, Léman offers aircraft management, brokerage services, maintenance, and training.
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PEOPLE IN AVIATION
Fractional aircraft provider Volato tapped Mark Heinen as its CFO. He succeeds Keith Rabin, who was recently elevated from CFO to president at the company. Heinen, who previously was CFO at Better Therapeutics, has 25 years of finance experience, including IPOs, corporate restructuring, and international finance.
Robinson Helicopter promoted Sean Doyle to v-p of engineering, succeeding Pete Riedl, who held this role for nearly two decades. Doyle has extensive experience in rotorcraft and system development, test, and certification, previously serving as a flight test manager at Joby Aviation. Before Joby, he spent 15 years at Garmin, where he worked on advanced flight control systems, hazard avoidance, navigation, and displays for helicopters. Robinson said this move is part of a planned succession and added that Riedl will continue to support the company in an advisory capacity.
Aero Asset appointed Ed Sale senior sales director. Before joining Aero Asset, he was director of HeliGroup, specializing in helicopter procurement and commercial operations.
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