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Airbus Helicopters CEO Gives eVTOL Updates, 2022 Market Outlook at Heli-Expo

A light-utility twin-engine H135, featured at the Airbus booth at HAI Heli-Expo in Dallas, Texas.

DALLAS, TEXAS — CEO of Airbus Helicopters, Bruno Even, and President of Airbus Helicopters Inc., Romain Trapp, shared their perspectives on the company and their progress in a press conference at HAI Heli-Expo this week. Bruno Even noted that Airbus Helicopters received €8.5 billion in order intakes, as well as €6.5 million in revenue, in 2021. He believes that the market should recover fully from the effects of the COVID-19 pandemic within the next 2–3 years and that the market is about 40% recovered so far. “Our strategy to continually invest in the product pays off when it comes to marketing positioning and proximity to customers,” he remarked. Even also mentioned the positive momentum that Airbus Helicopters envisions for the market in the Middle East, particularly in Saudi Arabia.

Airbus has agreed to expand their partnership with The Helicopter Company to advance helicopter operations, using sustainable aviation fuel (SAF) for conventional helicopters, and bringing urban air mobility (UAM) to Saudi Arabia. The Helicopter Company (THC) already operates ten of Airbus’s H125s and recently added 20 H145s to its fleet, as well as six ACH160 helicopters. Through this expanded partnership, and in coordination with the local regulatory authorities, helicopters and other urban air mobility (UAM) vehicles will be used for applications in Saudi Arabia including emergency medical services, ecotourism, and private and business aviation.

Airbus also announced this week that Spirit AeroSystems, aircraft components manufacturer and architecture solutions provider, has agreed to develop and manufacture the wings of the CityAirbus NextGen, an electric vertical take-off and landing (eVTOL) prototype. The CityAirbus NextGen is fully electric, and its design includes fixed wings and a V-shaped tail, along with eight electrically powered propellers. Spirit AeroSystems has provided fully integrated wings and wing elements for multiple Airbus commercial aircraft in the past. According to the announcement from Airbus, “The structural concept of the eVTOL’s fixed wings will be able to transmit the related aerodynamic loads while being optimized for the right balance between hover and cruise efficiency. CityAirbus NextGen’s distributed propulsion system will contribute to reducing the influence of air turbulence.”

A model of the CityAirbus NextGen on display at HAI Heli-Expo

At the press conference this week, Even commented that it is key for Airbus Helicopters to maintain balance between their sources of revenue; for example, with military and civil markets, 56% of revenue comes from the military side and 44% comes from the civil market. Additionally, 44% of revenue is from services, and 56% of revenue results from the company’s products. “Our strategic priorities for the next year are customer loyalty, innovation and sustainability, and defense and security,” he stated. “We will continue to invest and innovate in our existing helicopters and in new versions of the vehicles.”

Romain Trapp remarked on the outlook for Airbus Helicopters, explaining that they expect significant growth for the company in 2022. Their staff has increased by 10% in the past nine months and they plan to continue growing quickly in the future.

Along with the rest of the aviation industry, Airbus Helicopters is pursuing carbon neutrality by 2050. Even said, “It will be a step-by-step approach. In the short term, the best way to address it is to start introduction of helicopters with sustainable aviation fuel. We demonstrated last year with the H225 that helicopters can fly with 100% SAF. We are convinced that SAF is the best way to contribute to reduction of emissions in the short-term.”

One challenge, he said, is that sustainable aviation fuel (SAF) is more expensive now than conventional fuel. However, with the company’s focus on sustainability at the core of their mission, they expect to be able to use 100% SAF in their aircraft in the relative short term. Even also commented that while hydrogen-powered aircraft have many advantages, there are also limitations, and it is not the company’s first priority to develop hydrogen-powered helicopters.

Inside an H125 helicopter on display at Heli-Expo

Airbus also highlighted some recent developments in improving safety for its single-engine helicopters. “Improving aviation safety while boosting the competitiveness of our products is one of our top priorities at Airbus Helicopters. With the H125 having raised the bar to unprecedented levels in terms of performance and value for money, Airbus Helicopters has also worked in the last year to bring several new features which will significantly enhance the flight safety of the H125 and the H130,” according to Airbus.

For the H130 helicopter, a brand-new instrument panel is now available, including a new Garmin G500H TXi touchscreen main flight display, com/nav radio GTN650Xi, creating an improved human-machine interface in the cockpit for pilots.

The screen on the upper right-hand side is the Garmin G500H TXi touchscreen main flight display.

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Avianca to Expand Airbus Fleet with Order for 88 New A320neo Aircraft

Avianca has confirmed a new fleet order for 88 Airbus A320neo aircraft, with deliveries scheduled to begin in 2025. (Avianca)

Avianca, the Bogota, Colombia-based airline, has confirmed an order for 88 A320neos, under a new purchase agreement with Airbus that includes an option to acquire 50 additional aircraft.

Avianca will start receiving its first new A320neos from the order in 2025, gradually incorporating the new aircraft into passenger carrying service over six years.

Rohit Philip, Avianca’s Chief Financial Officer, describes the A320neo as the “most advanced single-aisle fleet in terms of efficiency, reliability and comfort. This order highlights that we continue to make the required investments to grow our network in line with our business plan.”

Avianca emerged from Chapter 11 Bankruptcy in December, and is currently one of the largest airlines in Latin America, with a network of 120 routes, more than 3,200 weekly flights to more than 65 destinations in Colombia, Latin America and Europe. (Avianca)

Every new A320neo will feature an updated cabin configuration, including three types of seats: Premium, Plus and Economy, according to Avianca. Currently, more than 90 A320 planes in Avianca’s fleet are being reconfigured and 26 of them already have the new Plus and Economy seats.

The new fleet order for Avianca comes several months after the Colombian carrier emerged from Chapter 11 Bankruptcy in December. According to an overview of their restructuring plan, the airline wants to expand its passenger fleet to more than 130 aircraft by the end of 2025.

Avianca also operates Airbus A330s, ATR 72-600s and Boeing 787-8s within its fleet, currently serving 3,200 flights a week to 65 destinations between North America, Latin America and Europe.

The post Avianca to Expand Airbus Fleet with Order for 88 New A320neo Aircraft appeared first on Aviation Today.

Breeze Airways Equips A220 Fleet with Viasat In-Flight Connectivity

Breeze Airways has selected Viasat as the in-flight connectivity service provider for its fleet of A220-300 aircraft, pictured here with a Viasat radome. (Breeze Airways)

Breeze Airways has selected the in-flight connectivity (IFC) service provider, Viasat, for its Airbus A220-300 fleet, according to a March 8 announcement from the two companies.

Salt Lake City-based Breeze first launched operations last year on a mixed fleet of Embraer E-190, E-195, and A220-300 jets. The selection of Viasat as the A220 connectivity service provider Monday also came with an announced expansion by Breeze to add 35 new routes this summer from 10 new cities. Breeze now operates 77 total routes between 28 cities in 18 states.

Breeze Founder and CEO David Neeleman, in a March 8 statement, said the airline’s vision for IFC “extends way beyond just delivering high-quality streaming and internet speeds. It will enable us to offer a fully-integrated and seamless experience through the Breeze app, giving our Guests unparalleled access to a wide array of personalized services and options.”

“We identified a natural partner in Viasat — not only in the performance, speed and satellite capacity advantage, but as a great cultural partner in the way we both seek to prioritize the digital experience,” Neeleman said.

Breeze Airways has configured its A220 cabins into “Nice,” “Nicest,” and “Nicer” premium and economy seating options. (Breeze Airways)

Breeze has 80 total A220-300s on order from Airbus, with options for an additional 40 aircraft on a one-per-month delivery schedule over the next four years. The airline will expand its fleet to 30 total aircraft this year, including 13 A220s and 17 E-jets.

Viasat provided updates on its Viasat-3 satellite launch schedule and acquisition of Inmarsat during an earnings call last month. A number of airlines have reached out to Viasat with interest in the acquisition and how it will affect their service, according to reporting on the call by Via Satellite, a sister publication to Avionics.

“From our first discussions with Breeze, there was a great fit based on how the airline values the digital experience for its Guests and how our world-class IFC solution delivers on that promise,” Don Buchman, Viasat’s vice president and general manager of commercial aviation, said, commenting on the Breeze Airways selection. “Specifically, for their expanding network and transcontinental routes, we can deliver the industry’s fastest in-flight connectivity service—even for bandwidth-intensive applications like streaming video, which dominate internet traffic today.”

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Embraer Launches Passenger to Freight Conversion Program for E-190, E-195 Jets

Embraer will provide the passenger-to-freighter conversions of E-190/195 jets at its facilities in Brazil. (Embraer)

Embraer became the latest commercial aircraft maker to launch air cargo variants of existing models, with the São José dos Campos, Brazil company launching the E-190F and E-195F Passenger to Freight Conversions (P2F).

The E-Jets P2F launch from Embraer comes following Boeing’s January launch of the 777-8X Freighter with Qatar Airways, and the July 2021 launch of the Airbus A350 Freighter prior to that. According to a March 7 press release, Embraer expects demand for 700 E-Jet Freighters over 20 years, and will provide P2F conversions for E-190s and E-195s at its facilities in Brazil.

E-Jet conversions will include cargo door, handling system, and interior upgrades to allow for transportation of hazardous materials, among other cargo-carrying modifications.

Arjan Meijer, President and CEO Embraer Commercial Aviation, describes their E-Jet P2F program as “Perfectly positioned to fill the gap in the freighter market between turboprops and larger narrowbody jets, our P2F E-Jet conversion hits the market as the demand for airfreight continues to take off, and as e-commerce and trade in general undergoes a global structural transformation.”

The E190F can handle a payload of 23,600 pounds (10,700kg) while the E195F has a payload of 27,100 pounds, according to Embraer. Embraer describes demand for E-Jet-sized freighters, as driven by their knowledge of the age of the current in-service Embraer fleet—1,600 total E-Jets have been delivered globally.

Several key market factors are expected to help expand opportunities for Embraer’s P2F program, according to the company, which added this market and design breakdown of the cargo conversion program below to its website upon announcing the new program.

Embraer added details about their E-Jet P2F program to their existing family of aircraft on their website Monday.

Embraer is making the P2F conversion service available for all pre-owned E190 and E195 aircraft, with entry into service expected in early 2024.

The launch of the P2F program by Embraer comes following their recent fourth quarter and full-year 2021 orders and deliveries report. Embraer delivered 55 jets in the fourth quarter of 2021, of which 16 were commercial aircraft and 39 were executive jets (26 light and 13 mid-size). The Company delivered a total of 141 jets in 2021, comprised of 48 commercial aircraft and 93 executive jets. Embraer’s firm order backlog totaled USD 17.0 billion, reaching its highest value since the second quarter of 2018.

The post Embraer Launches Passenger to Freight Conversion Program for E-190, E-195 Jets appeared first on Aviation Today.

CAAC Formally Adopts Special Conditions for EHang’s eVTOL

Two of EHang’s 216 AAVs perform flight demonstrations in Shenzhen. The CAAC has formally published Special Conditions for Type Certification of the EH216-S vehicles. (Photo: EHang)

The Civil Aviation Administration of China (CAAC) recently announced that the Special Conditions for Type Certification of EHang’s EH216-S aircraft have been formally adopted. EHang, developer of autonomous aerial vehicle (AAV) products and solutions, unveiled its first model, the 184, in 2016. The EH216 air taxi, an unmanned vehicle designed for low-altitude passenger transportation in the urban air mobility (UAM) sector, made its debut in 2019. The CAAC established a type certification team for the EH216 in April 2021. By formally adopting the Special Conditions for the aircraft, EHang now has a basis for compliance and safety of these vehicles, “including flight performance, structures, design and constructions, propulsion systems, systems and equipment, data link and ground control station,” according to the news release from EHang.

A representative from EHang told Avionics in an emailed statement that “the Special Conditions defined the requirements for EH216-S, [that it] is expected to fly in low-altitude airspace and target commercial operations with passengers onboard in the environment of UAM.”

The Special Conditions dictate how EHang will carry out compliance verification, which is the next goal for the company to achieve before obtaining Type Certification of the EH216-S. Once airworthiness certification is achieved, the team plans to carry out commercial UAM operations with the aircraft.

Pictured is the EH216 performing a flight demonstration in Okayama Prefecture in Japan. (Photo: EHang)

When riding in EHang’s air taxi, the company envisions passengers will be able to travel by selecting their destination, and the vehicle will autonomously fly the pre-determined path with no other input necessary. One advantage for future UAM operations is that EHang’s “proprietary in-flight operating systems and on-the-ground infrastructure enable reliable and simultaneous control of a large number of AAVs.”

The aircraft’s flight components are designed with backup systems in order to be fully redundant to increase flight safety. For example, the EH216 possesses 16 propellers, so that if one propeller were to fail while in flight, the vehicle would be able to continue flying without any safety concerns. Other redundancies include flight control systems, batteries, battery management systems, sensors, and propulsion systems. According to the company’s representative, “The built-in fail-safe system automatically assesses the operation status of EH216 and every one of its components in real time. In case of malfunction of any components, their backup systems can immediately and seamlessly come online to ensure safety. The fail-safe assesses the safety condition and determines whether to continue the flight or to land at a nearby safe location.”

The Special Conditions dictate how EHang will carry out compliance verification, which is the next goal for the company to achieve before obtaining Type Certification of the EH216-S. (Photo: EHang)

At the end of 2021, EHang announced a partnership with Guangzhou Development District Communications Investment Group to launch the 5G Intelligent Air Mobility Experience Center at the Innovation Park in Guangzhou, China. This city is a UAM pilot site for EHang, and the Experience Center will have a take-off and landing vertiport in addition to an automatic parking garage. One of the Center’s main functions will be to enable trial operations of electric aircraft such as the EH216 model and the Falcon B drone.

EHang shared in January 2022 that they received a pre-order for 50 aircraft from AirX Inc., an air mobility digital platform company based in Japan. AirX ordered the EH216 model in preparation for multiple UAM operations in Japan, including potential air taxi services at the 2025 World Expo in Osaka.

EHang claims to have successfully carried passengers in their aircraft as far back as 2015, and has completed test flights and demonstrations and 10 different countries.

The post CAAC Formally Adopts Special Conditions for EHang’s eVTOL appeared first on Aviation Today.

Astronics CEO Sees Commercial Aerospace Recovery, eVTOL Opportunities in 2022

Astronics Corp. CEO Peter Gundermann discussed a wide range of topics during the company’s 2021 and fourth quarter earnings call last week, including Ukraine, supply chain challenges, and potentially supplying some electrical power systems for eVTOL aircraft. (Astronics)

Astronics reported a $7 million increase in aerospace segment sales in its full-year 2021 earnings report last week, and during an earnings call to discuss the results, CEO Peter Gundermann covered several factors impacting their aerospace operations right now, including supply chain challenges, labor needs, and a small engineering firm that they operate in Ukraine.

“I’m sure you’ve heard tales from other companies, but the gymnastics that we have to do to figure out how to execute when a supplier for a program calls up and says, ‘You know those parts that you ordered that I said I would ship next week? Well, I’m not going to ship them for 20 weeks.’ It’s just incredible,” Gundermann said.

The East Aurora, New York-based aerospace electronics manufacturer counts Airbus, Boeing, and Panasonic Avionics as some of the top OEMs that it supplies cockpit and cabin systems to. Astronics reported a 21.1% increase in commercial aerospace sales, attributing the increase to the un-grounding of the 737 MAX and a recovery in demand for passenger air travel leading to higher utilization rates of the in-service commercial aircraft fleet. The company also noted a slight increase in general aviation avionics sales for 2021, and expects higher demand in that segment as well based on the surge in business jet operations that occurred last year and continues into 2022.

However, there are also major operational challenges and pressures that include supply chain and labor shortages, as well as a small engineering operation that Astronics runs in Lviv, a city located in western Ukraine.

“If you look at the map, it’s right by the Polish border, so it’s a relatively safe place to be,” Gundermann said. “But we are disturbed, to say the least, about what’s going on in Ukraine, as many of you are, I’m sure. And we’re concerned about our people there. We’re doing what we can to help, but it’s a weight around our perspective these days, for sure.”

The Astronics CEO further explained that the company has a total of 42 people at the Lviv location. “It has a significant impact in parts of our business, and Lviv is a pretty quiet and restive area at this point compared to what’s going on in the eastern and central parts of Ukraine.”

The company still expects its aerospace segment to continue to recover this year, although supply chain challenges remain. Gundermann estimates that Astronics ended 2021 with an estimated $15 to $17 million of scheduled product that “could not ship for one reason or another, typically having to do with supply chain challenges.”

Labor is another major challenge for Astronics, which had a workforce of 3,400 prior to the March 2020 outbreak of the COVID-19 pandemic. Their workforce now stands at 2,200. The company needs to add about 200 new workers to “execute the business in front of us,” Gundermann said.

Astronics introduced its new Ballard mPCIe avionics interface cards for ARINC 429/717 systems, pictured here, in 2021. The cards enable host devices, such as small form factor mission computers, to reliably communicate with avionics equipment. (Astronics)

Amid all of these challenges, Astronics also continued to introduce new technologies into the aerospace market, including an upgraded line of avionics interface cards for embedded aerospace applications. The company also received initial certification for a new cabin in-flight entertainment (IFE) system that uses a distributed network architecture with smaller and fewer boxes as well as an “industry first Wi-Fi 6 wireless access point” for the Boeing 737-800 and MAX.

When Beechcraft completed the first flight of its new Denali aircraft in November, the single-engine turboprop featured exterior lighting and cockpit panels from Astronics, as well as the company’s Max-Viz 1400 Enhanced Vision System.

Gundermann told investors that he has an overall positive outlook for 2022 based on positive demand trends in commercial air travel. He also expects some opportunities to eventually become available for Astronics to provide some electric power systems to electric vertical takeoff and landing (eVTOL) aircraft developers.

“Airlines are waking up around the world and some are deciding to go forward with major installations and major changes from what they’ve done in the past. The technology doesn’t lie still, even if the airplanes are. So we’re seeing a surge in demand there, including from new customers, which are impressive to me,” Gundermann said. “I talked about eVTOL, electric vertical take-off and landing, opportunities, and how that seems to be a good fit for the capabilities we’ve developed for flight-critical electrical power for small aircraft. And we don’t have news today, but we are furthering our investigations there and extending our reach. And, I expect, program award announcements there in the near future.”

The post Astronics CEO Sees Commercial Aerospace Recovery, eVTOL Opportunities in 2022 appeared first on Aviation Today.

PLAY CEO Talks A321 Fleet Strategy for Iceland’s New Low-Cost Transatlantic Airline

PLAY, the startup low-cost airline operating out of Iceland, has added Orlando as its fourth U.S. destination. (PLAY)

Iceland’s newest low-cost airline, PLAY, has announced the addition of Orlando International Airport as its fourth U.S. market less than a year after beginning operations out of Reykjavik. Avionics International caught up with PLAY CEO Birgir Jónsson to learn how his team plans to use a no-frills approach to operating a growing fleet of A321neo family aircraft, and whether he would ever consider adding in-flight connectivity (IFC) to the all-economy cabins.

Jónsson and a team of fellow former colleagues of Wow Air, the Icelandic low-cost carrier that ceased operations, first established PLAY in 2019. According to Jónsson, several of PLAY’s current executives were working on a new operational structure and air operator’s certificate (AOC) right before the outbreak of the COVID-19 pandemic with the support of some investors they were able to secure.

Jónsson said that while the pandemic had an impact on their launch of the new airline, it never deterred their executives or investment team because of the potential they see in a low-cost airline with a small fleet size.

“Tourism has seen a steady increase in travel to Iceland over the last 10 years, and remains one of the biggest employment sectors in this small country,” Jónsson told Avionics. “It was always clear to our investors that once the COVID restrictions are lifted or at least the number of cases would be in remission, there would be a huge growth period that would ensue.”

Orlando joins Baltimore, Boston, and New Windsor, New York, along with the 23 other European destinations PLAY operates to from Reykjavik, attempting to be successful in a business model that has proven challenging for others: low-cost transatlantic flying. Wow Air, for example, went bankrupt after launching flights to the U.S., and Norwegian Air abandoned its own transatlantic routes last year as part of a series of measures to save itself from bankruptcy.

Jónsson, however, says that the airline is focused on a slow expansion strategy that will avoid having seats that they’re unable to fill. PLAY’s current fleet size stands at three total A321neo aircraft. Their fourth aircraft, the A321neo that will begin PLAY’s first flights to U.S. destinations, is scheduled for delivery in April.

“This spring we’ll grow the fleet to six A321neos, and we’re adding the expansion each spring over the next three years to grow to 15 by 2025. We add the aircraft in the spring ahead of the demand growth that typically happens in the summer, because we don’t want to have too much capacity, we want to be the right size for this market,” Jónsson said.

The PLAY CEO said that the A321’s range narrow body operational profile is essential to their low-cost strategy, adding that each aircraft “is probably in the air 19–20 hours a day.” Each A321 operated by PLAY also has the option to add an additional fuel tank for longer routes.

“It’s a completely different business model and cost structure than operating a widebody aircraft,” Jónsson said.

PLAY advertises flights starting as low as $109 and $129 for some transatlantic options and will require passengers to pay for all amenities. One amenity that will not be an option for passengers is access to in-flight internet, since the airline is looking to keep its operating costs as low as possible.

“I’m sure everyone would love to have Wi-Fi, although it has proven to be quite spotty over the Atlantic, and at least in my experience, I’m frustrated when that happens because I’m buying something that doesn’t really work. We don’t offer it, I don’t think we will, it adds complexity and weight to the aircraft and our focus has to be on providing the lowest prices and having the lowest costs,” Jónsson said. “We do offer in-seat power in most of our aircraft and most passengers have their iPhones and iPads, but overall it’s a no-frills service. Our whole purpose is offering the lowest prices in the market.”

According to a Feb. 23 press release, PLAY’s addition of Orlando will make it the only airline to connect Orlando to London Stansted Airport, with their flights from Orlando scheduled to begin in October. Jónsson said the airline is off to a positive start in 2022, evidenced by a Feb. 7 report noting that PLAY carried 13,488 passengers in January and an “uptick in bookings for spring and summer travel.”

Jónsson admits that the outlook for commercial air travel and transatlantic flying is still on a month-to-month basis; however, PLAY’s investment team has included uncertainty in the Icelandic carrier’s business model.

“Our investors are looking at this long-term,” Jónsson said. “We have the funding available so that even if there is a new variant or downturn for some other reason, we could withstand it.”

The post PLAY CEO Talks A321 Fleet Strategy for Iceland’s New Low-Cost Transatlantic Airline appeared first on Aviation Today.

How Airlines Are Using In-Flight Connectivity for Passenger and Operational Applications

(Photo: Alaska Airlines)

ST Engineering iDirect and its partners are hosting a series of webinars focused on advanced mobility technology and its impact and importance to end user customers. As part of that series, which begins with an aero webinar event Thursday, March 10th, ST Engineering iDirect sponsored the following article to gather airline perspectives on the value of in-flight connectivity.

This week will mark the two-year anniversary of the World Health Organization officially declaring the outbreak of COVID-19 as a pandemic.

While the last two years have been unlike any other in the history of the global passenger-carrying air transportation industry, growth in adoption of in-flight connectivity (IFC) and its ability to enable innovative new applications for airlines keeps expanding.

Recent reports published by Euroconsult and Valour Consultancy, for example, show that for most major airlines, connectivity has become more of a basic feature of their in-flight experience for passengers and a newer, faster medium for transmitting critical aircraft data to pilots, maintenance technicians, and other airline stakeholders who require it.

A Jan. 31 update on global IFC installation trends posted by Valour Consultancy’s Daniel Welch estimates that through the end of the third quarter 2021, the global IFC installed base was just below 9,300. According to Valour, North America remains the most connected and active region as well, with almost two thirds of the North American commercial active fleet already featuring IFC.

Southwest Airlines was one of the earlier North American carriers to invest in connectivity—under a 2013 agreement with Anuvu (formerly Global Eagle)—with the Texas-based carrier’s entire Boeing 737 fleet equipped with satellite connectivity. In an emailed statement to Avionics International, several representatives for Southwest’s IFEC team said they’re still looking at new applications they can enable with connectivity under a new modernization effort.

“On January 26, 2022, we launched the enablement of Venmo as a form of payment in the Inflight Wi-Fi Portal. Now, Customers have three different digital payment options for Inflight Internet including Apple Pay, PayPal, and Venmo. On February 15, 2022, we launched a new movie trailer feature: As customers browse through the movie options onboard, they can watch the trailer instead of just reading the synopsis,” the Southwest Airlines team said. “Since 2015, Flight Ops has partnered with Marketing and Customer Experience to utilize a small amount of Wi-Fi to connect applications on the Pilots’ Electronic Flight Bag (EFB). These apps help support the operation and advise Pilots of turbulence, radar, and updated weather forecasts.”

The Southwest Airlines fleet is equipped with Anuvu’s in-flight connectivity technology. (Photo: Southwest Airlines)

On the flight operational side, Southwest first started adopting a paperless flight deck with EFBs in 2014, and has periodically added new capabilities since then. As an example, Southwest pilots use the WSI Pilotbrief Optima EFB application to view live weather in-flight while connected to Wi-Fi.

“In regards to fleet maintenance, flight data, engine data, and real-time data downloads, we have identified a solution for optimizing our operation via an e-Enablement utilizing Anuvu IFE Modernization effort. Since 2015, Flight Ops has partnered with Marketing and Customer Experience to utilize a small amount of Wi-Fi to connect applications on the pilots’ EFB. These apps help support the operation and advise pilots of turbulence, radar, and updated weather forecasts,” Southwest Airlines said.

Alaska Airlines is another North American carrier that was an early IFC investor, first equipping its aircraft with Wi-Fi in 2011, before upgrading to Intelsat’s faster 2Ku satellite connectivity in 2018. The airline has also traditionally been one of the more technology-forward carriers based in the U.S., and it took advantage of the upgraded connectivity speeds to enable a trial period use of the connected EFB applications Traffic Aware Strategic Aircrew Requests (TASAR) and Traffic Aware Planner (TAP) in recent years.

NASA first developed TASAR as a cockpit automation software capable of simultaneously monitoring real-time weather, winds, air traffic, and restricted airspace to provide re-route recommendations to pilots every 60 seconds. TAP is capable of monitoring changes in headwinds and also couples navigation data pulled from onboard systems with real-time information generated by the connectivity featured on Alaska’s fleet. The data is analyzed, and the system then scans the local air traffic center broadcasts throughout the course of a flight for potential conflicts before providing suggestions to pilots for a more efficient route.

During a recent Connected Aviation Intelligence webinar series co-hosted by Avionics International and Via Satellite, Bret Peyton, director of flight operations engineering and fleet technology for Alaska Airlines, said the carrier is still evaluating new operational uses of connectivity while monitoring the amount of bandwidth necessary to provide new connected operational applications for its fight crews and passengers.

“We’re working with some partners right now to take advantage of some flight deck route optimization concepts and hopefully the software, the computational algorithms soak up less bandwidth and hopefully you have that happening as you have overall costs going down from our service providers. Certainly there is going to be an increased demand for bandwidth on the guest side and definitely on the operational side,” Peyton said.

During that same webinar series, several other airlines also discussed how they observed increases in demand from passengers for connectivity that allows them to use the type of bandwidth-intensive streaming, video-conferencing, and other applications that became increasingly important for connecting businesses, colleagues, and organizations who faced COVID-19 travel and policy restrictions throughout the pandemic.

“NSR gathers that demand for in-flight Wi-Fi is at an all-time high as passengers return to flying. This trend pushes airlines to a tight position of making the critical decision of defining their inflight connectivity strategy. One of the tough choices airlines have been battling is whether to offer free onboard Wi-Fi and how to bankroll the associated expenses,” Joseph Ibeh, a market analyst with Northern Sky Research (NSR), wrote in a September blog post outlining some of the insights gathered from NSR’s Aeronautical Satcom Market Report 9th edition.

Tiina Suvanto, head of customer experience at Finnair, was also a participant in the CAI webinar series and explained how the airline manipulated the connectivity already featured on its in-service aircraft—Panasonic Avionics on their widebody fleet and Viasat on their narrow bodies. According to Suvanto, one of the new IFC applications they recently enabled was developed based on the timing of some of the routes they operate between Helsinki and Asia Pacific destinations.

“Like so many other airlines, we have a news solution developed by ourselves so that digital newspapers are delivered to the portal, they’re readable from the portal, and they’re delivered through the satellite connection to the aircraft server. We designed it so that we also get fresh newspapers. Our aircraft network operates in a way that most of the flights from Asia to Helsinki leave in the middle of the night in Finnish time. So that newspaper, Helsinki Sanomat, is pushed to our aircraft portal at the same time that it is pushed to their digital printing house, and you’re getting the news fresh, in real-time,” Suvanto said.

Finnair unveiled its new, spacious long-haul cabin featuring a brand-new Business Class and exciting new Premium Economy cabin as part of a major investment to enhance the customer experience. The airline’s IFEC manager appeared on a 2021 webinar series hosted by Avionics International and Via Satellite. (Photo: Finnair)

Since they offer connectivity from different networks based on aircraft type, Finnair developed its own internal portal, the Nordic Sky Portal, so that the login and interface is the same for every passenger on every flight.

Similar to Finnair, Air France KLM also offers connectivity from different IFC service providers and has internally developed a passenger access portal that makes the user interface the same for passengers regardless of the network they’re using. Sam Krouwer, product owner of in-flight connectivity at Air France KLM said that has been an essential element of their passenger experience strategy in relation to access to Wi-Fi for passengers.

Krouwer expressed interest in the future possibility of Low Earth Orbit (LEO) satellites being capable of filling in coverage gaps for some of the routes included in their current operation.

“What was new for me to learn was that LEO [satellites] could solve the coverage issues we have around polar areas, which is a challenge on some of the routes we fly,” Krouwer said during his appearance on the webcast series. “At KLM, we fly North Atlantic routes a lot, and it is a pain for our customers when the connectivity drops after you reach [the] Arctic region, so let’s hope LEO can fix that problem for us.”

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OPINION: Four Strategies to Help Airlines Manage and Mitigate Supply Risks

While it may be an understatement to say that the airline industry is exposed to volatility, it is fair to say that the latter half of the last decade was a time of relative plenty. The COVID-19 pandemic and its cataclysmic impact on demand swiftly reversed that. But now, as demand recovers, the after-effects of the pandemic and a confluence of macro factors create the next major headwind for the world’s airlines: supply challenges.

These supply challenges run the gambit. They include major, long-lead items like suspended or delayed aircraft deliveries and a now substantial pilot shortage that has been acutely felt in the US. The industry also faces more tactical, albeit slightly less painful, challenges when it comes to hiring airport workers, securing outsourced heavy maintenance slots, and keeping spare parts inventories appropriately stocked.

Some issues are familiar, and some even predictable—like the latest upward spiral in oil prices—while others appear unexpectedly in the form of a cardstock shortage that has disrupted the process of printing boarding passes, and even a shortage of galley carts. These supply issues represent a risk that is both material and far-reaching—all at a time when demand seems primed to return and radical capacity growth is part of virtually every carrier’s plan in 2022.

The first-order impact will be on the price of inputs—such as oil, labor, and aircraft lease rates—which translates into cost for the airline and a combination of higher airfare (to the extent passengers will pay) and profit pressure (to the extent passengers won’t pay). But the magnitude of these issues goes beyond price, manifesting in true shortages and stockouts. Take jet fuel, for example. Last summer, airports in the Western US experienced an unfortunate combination of leisure-demand fueled growth, low fuel inventories, and a shortage of tanker truck drivers. Not only did the price of jet fuel spike, but some airports in places like Montana, Wyoming, and Utah ran out of fuel completely. Airlines were forced to start tankering (where inbound flights carry enough fuel for the return leg).

But this was not possible everywhere, and in places that it wasn’t, airlines were forced to cancel flights despite a robust revenue environment. One can observe this effect in a more systemic way, illustrated by gaps in regional pilot supply; in a Senate testimony in December 2021, United Airlines stated that, with their partners, they parked nearly 100 regional jets due to a lack of pilots. We also expect to see the impact of lengthy delays in aircraft deliveries this summer when most carriers are flying peak schedules and high trans-Atlantic capacity puts widebodies in the spotlight. In the end, it will be shortfalls in capacity that drive the greatest impact in the form of lost revenue and lost strategic opportunity—not direct cost pressures.

It is tempting to point out that these structural factors are impacting other industries—from grocery retail to auto manufacturing. Traditional forecasting and risk management tools have been rendered obsolete by the confluence of post-pandemic macro forces. But airlines can take positive action to manage and mitigate these risks. Based on extensive research and learnings from client engagements, Boston Consulting Group has identified four strategies for airlines to consider:

Share Risk

There is always strength in numbers. In this context, that can take several forms. The first is deeper, gainsharing partnerships with suppliers to jointly fund and protect supply. Another example is the recent proliferation of pilot training programs and financial incentives between US major airlines and their regional partners.

Secondly, carriers, vendors, and even third parties can build robust secondary markets that allow airlines to trade things more efficiently like heavy maintenance slots or expand parts-pooling programs.

Finally, and in its most extreme form, airlines could look to acquire key suppliers, such as Delta’s ownership stake in a refinery, or expand in-house capabilities for things like heavy maintenance or uniform production. Other industries have proven these strategies effective: US pharmaceutical companies maintain a jointly funded stockpile of essential drug ingredients, and third-party solutions have emerged in ocean shipping to better match supply and demand for containers.

Radical Transparency

Today, supply chains are better described as supply webs. With so many interconnected elements, increased transparency is an important tool to improve planning and avoid surprises. Airlines should be more proactive and detailed in sharing fleet and capacity plans to help vendors manage potential bottlenecks.

In return, suppliers should voluntarily share their production schedules, confidence in their own supply chains, and early warnings of potential issues. The current silicon chip shortage is a powerful example—the auto industry is suffering most intensely, but that is not a result of their own production volatility.

Rather, the challenge is the result of vendor production issues and increased demand from other sources that have put F-150s in competition with PlayStation 5s for scarce components.

Automated Recommendations

Sophisticated planning and forecasting has been a mainstay of supply chain management for years. AI and big data now afford airlines the opportunity to take this to the next level in both scope and scale.

Computers can help analyze millions of data points and predict problems before they arise—such as sensing supply and demand imbalances early, instantly translating a raw material price spike into a vendor production issue, or recognizing where alternate supply sources are a better alternative.

Increased Flexibility From Within

Whether it be temporary adjustments to labor contracts to permit more agile scheduling, or tighter lead times for functions like network planning and maintenance, increased flexibility can help minimize the effects of supply shocks to boost airline resiliency.

By applying these levers and maintaining a keen eye on critical path sourcing across the business, airlines can manage and mitigate the impacts of systemic supply challenges. Airlines that can do this more effectively than their peers will be rewarded with the capacity to capture pent-up demand that others cannot and, in turn, make strategic gains in share and advantaged access to scarce resources in the years ahead.

Adam Gordon is a Managing Director and Partner at Boston Consulting Group (BCG) and leads the firm’s Airline practice, globally. For over a decade, Adam has advised airlines on shaping high-impact commercial strategies and achieving operational excellence with a balanced focus on cost, reliability, and customer experience. Prior to joining BCG, Adam worked in a leadership role at Qantas Airways, primarily focusing on alliances strategy, loyalty and operational reliability. Currently, he is based in Toronto.

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NetJets Signs eVTOL Purchase Agreement with Lilium

NetJets has signed a purchase agreement for up to 150 six-passenger eVTOL jets being developed by Lilium.

German electric vertical takeoff and landing (eVTOL) developer Lilium disclosed a purchase agreement with fractional aircraft operator NetJets during its fiscal year 2021 webcast held earlier this week.

The memorandum of understanding includes purchase rights for up to 150 of the six-passenger eVTOL model being developed by Lilium. The agreement includes related “aftermarket services” as well. In a letter to shareholders announcing their 2021 results, Lilium also notes that they have received strong interest in their electric-jet propulsion technology.

“We therefore will extend our commercial offering to private individuals and business professionals through either direct sales or through a fractional ownership model that we expect to implement through an anticipated collaboration with NetJets,” Lilium said in the letter. “We believe the private and business professional segments will be highly attractive markets and will drive early adoption of eVTOL aircraft.”

NetJets is the latest major business aviation player to sign an agreement with Lilium. Last year, Luxaviation Group signed a partnership agreement with Lilium to become responsible for airline operations of Lilum’s 7-Seater Jet in Europe, including securing approvals and managing pilots.

Lilium hopes to achieve certification from the U.S. Federal Aviation Administration (FAA) and European Union Aviation Safety Agency (EASA) in 2024 through the Bilateral Aviation Safety Agreement (BASA).

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